GREAT WESTERN RECLAMATION, INC.- A-93-045

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Agreement with Great Western Reclamation April 19, 1993 Page 3 AGREEMENT The key provisions of the agreement will be as follows: GENERAL 1. AB 939 compliance and indemnification State law mandates that each city implement its SRRE by implementing the required source reduction, recycling, composting, and educational programs and meet the specified reduction in refuse disposal. Fines up to $10, 000 per day ($3 . 65 million per year) may be levied for non-compliance. Under the agreement, the contractor will assume the responsibility for implementation of all programs required to comply with AB 939 and will indemnify the City to the extent that the contractor collects and disposes of the solid waste. This is the primary reason for having a single hauler with adequate financial resources and expertise to perform these services. Failure to meet the targets will require the City (and ultimately the residents and business community) to accept the risk that would otherwise be shifted to Great Western. To shift the responsibility to a single contractor and to meet the goal of 50% by 2000, the City must give the required five year notice at this time to make the temporary construction and demolition refuse collection subject to an exclusive agreement, effective in 1998 . 2 . Quality Service The service provided to the community by Great Western during the years has been well received. The agreement will require that Great Western maintain that quality of service provided to the community. RESIDENTIAL CURBSIDE SERVICE 1. Implementation of a recycling program at a materials recovery facility and implementation of a composting_ program State law requires recycling, composting and associated refuse reduction programs. Great Western will be responsible for providing recycling of all City refuse. 149 2 5F