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the average of the rates charged by all haulers operating in <br /> the City on May 1, 1998 for like services in the City. <br /> In determining new service rates, the program surcharge shall <br /> be added to the market rates. Any program surcharges or <br /> related fees reflected in the market rates shall be subtracted <br /> from the market rates. <br /> 6. LEGAL RESPONSIBILITIES <br /> CONTRACTOR shall at all times comply with all applicable <br /> provisions of the Santa Ana Municipal Code, now in effect or <br /> hereafter enacted, as well as all other applicable County, <br /> State and Federal laws and regulations; provided, however, no <br /> amendment of the Code shall operate or materially impair the <br /> rights and privileges of CONTRACTOR hereunder. Should any <br /> State or Federal law become effective after the date of <br /> execution of this agreement, which both parties agree require <br /> modifications to the terms hereof, the parties agree to meet <br /> and confer regarding any such modifications. <br /> 7 . PROGRAM SURCHARGE <br /> (a) Effective July 1, 1998 CONTRACTOR shall pay to the CITY a <br /> solid waste program surcharge equal to six (6) percent of <br /> CONTRACTOR'S gross receipts as defined in Section 3 . <br /> (b) Payments made to the CITY of said solid waste surcharges <br /> shall be made to the CITY on a monthly basis and shall be due <br /> and payable on or before the last calendar day of the <br /> following month. Accompanying each payment will be a listing <br /> of the gross receipts for that corresponding. month. <br /> Contractor shall, whenever requested to do so, make available <br /> such records to the Executive Director at any reasonable time. <br /> (c) Failure of contractor to make any of the payments provided <br /> for in section (a) above on or before the dates due will <br /> result in a penalty of ten (10%) percentper month to <br /> CONTRACTOR. <br /> 8 . RECYCLING REQUIREMENTS <br /> Effective July 1, 1998 CONTRACTOR shall transport all solid <br /> waste collected by the CONTRACTOR either to a state permitted <br /> Materials Recovery Facility ("MRF") , which MRF shall be <br /> acceptable to the CITY, or directly to an End User. No solid <br /> waste collected may be taken directly to a landfill unless <br /> such material is to be reused at the landfill site. <br /> 3 <br />