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compliance with all of the provisions of the CITY ' S SRRE, CIWMA, <br /> and amendments thereto adopted hereafter, and will protect, <br /> indemnify, pay, save; defend, and hold the CITY harmless from any <br /> and all loss, expense, damage, fines, penalties and liability of <br /> every kind and nature whatsoever by virtue of any non-compliance <br /> with such CITY and statutory requirements, provided, however, that <br /> CONTRACTOR shall not be responsible to the extent Solid Waste is <br /> generated in the CITY and collected or disposed, or both, by other <br /> than CONTRACTOR. Further, CONTRACTOR agrees to protect, defend, <br /> with counsel approved by the CITY, and indemnify CITY against any <br /> and all fines and/or penalties imposed by the California Integrated <br /> Waste Management Board in the event that the diversion quantities <br /> contained in the CITY 'S SRRE, or any other requirement of CIWMA, <br /> are not met. <br /> 15. SYSTEM SAVINGS: <br /> (a) SAVINGS PAYABLE TO CITY: In addition to the surcharge <br /> paid pursuant to Section 10 herein, CONTRACTOR has also agreed to <br /> pay to the CITY One Million Three Hundred Fifty One Thousand Five <br /> Hundred Dollars ($1, 351, 500. 00) in system savings each year during <br /> the term of this Agreement. Such savings shall be deducted in <br /> monthly installments of One Hundred Twelve Thousand Six Hundred and <br /> Twenty Five Dollars ($112 , 625. 00) each from payments made to <br /> CONTRACTOR for curbside service pursuant to Section 22 herein. <br /> CONTRACTOR shall further guarantee that the CITY will receive at <br /> least Thirty Thousand Dollars ($30, 000. 00) in federal fuel excise <br /> tax savings. The estimated savings upon which this guaranteed <br /> payment is based are set forth in further detail on Exhibit "B" <br /> attached hereto and incorporated herein by this reference. <br /> (b) POSSIBLE ADDITIONAL SAVINGS: The parties hereto have <br /> agreed that any additional savings (beyond those illustrated on <br /> said attached Exhibit "B") which may result from changes in the <br /> diversion percentages referred to in Section 14 (b) above shall be <br /> split evenly between the CITY and the CONTRACTOR. Such savings <br /> shall be the dollar amount equal to the difference in the <br /> CONTRACTOR's per ton cost for Processing and disposal of Bin <br /> Service at a MRF and the per ton cost of disposal at a Disposal <br /> Site multiplied by the number of additional tons taken directly to <br /> a Disposal Site. Any such additional savings shall be computed on <br /> a monthly basis and such amounts shall be paid to the CITY by <br /> CONTRACTOR on or before the last calendar day of each subsequent <br /> month. <br /> (c) FUEL SAVINGS: Fuel required for the Licensed Equipment <br /> shall be purchased by the CITY and stored in a separately <br /> designated tank at CONTRACTOR's facility. Such fuel shall only be <br /> used to power the Licensed Equipment. The title to and ownership <br /> of said fuel shall at all times remain with the CITY. CONTRACTOR <br /> acknowledges that the amount at which the CITY purchases the fuel <br /> for the Licensed Equipment is a reduced amount per gallon due to <br /> the CITY'S exemption from federal fuel excise taxes. CONTRACTOR <br /> 16 <br />