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This grant to Contractor of an exclusive Franchise, right and privilege to Collect, <br />transport, or process and Dispose of Solid Waste shall be interpreted to be consistent <br />with all Applicable Laws, now and during the term of the Franchise, and the scope of <br />this exclusive Franchise shall be limited by Applicable Laws with regard to Solid Waste <br />handling, exclusive Franchise, control of Recyclable Materials, Solid Waste flow control, <br />and related doctrines. In the event that future interpretations of current law, enactment <br />or developing legal trends limit the ability of City to lawfully provide for the scope of <br />Franchise services as specifically set forth herein, Contractor agrees that the scope of the <br />Franchise will be limited to those services and materials which may be lawfully <br />provided for under this Agreement, and that City shall not be responsible for any lost <br />profits claimed by Contractor to arise out of further limitations of the scope of the <br />Agreement set forth herein. In such an event, it shall be the responsibility of Contractor <br />to minimize the financial impact to other services being provided as much as possible. <br />2.10 City's Right to Direct Changes <br />2.10.1 General <br />City may direct Contractor to perform additional services (including new Diversion <br />programs, etc.) or modify the manner in which it performs existing services or bills for <br />services. Pilot programs and innovative services which may entail new Collection <br />methods, and different kinds of services and/or new requirements for Waste <br />Generators are included among the kinds of changes which City may direct. Contractor <br />acknowledges that State law may change or increase the Diversion requirement during <br />the term of this Agreement and Contractor agrees to propose services to meet such <br />Diversion requirements. Contractor shall be entitled to an adjustment in its Contractor <br />Compensation for providing such additional or modified services, if Contractor <br />demonstrates that its cost of service would increase, as set forth in Sections 2.10.2 and <br />2.10.3. City may utilize cost components included in the Contractor's Proposal in <br />calculating equitable rate adjustments. If City and Contractor cannot agree on <br />compensation for new or additional services, then City may contract with other parties <br />for such services, which shall be considered exempt from the exclusivity provisions of <br />Section 2.2. <br />August 17, 2021 32 City of Santa Ana <br />