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been produced had City Acceptable Waste only been processed at the facility shall constitute Controllable Waste and
<br /> be subject to the Waste Disposal Covenant. Any City Acceptable Waste or material derived or segregated therefrom
<br /> which is held in storage and asserted by the possessor thereof to constitute Recycled City Acceptable Waste awaiting
<br /> sale or distribution to the secondary materials markets shall constitute Controllable Waste if, when and to the extent
<br /> that the storage or diversion thereof can be reasonably deemed to constitute an evasion of the Waste Disposal Covenant
<br /> rather than generally recognized, accepted and prevailing practice in the Southern California materials recovery and
<br /> recycling industry conducted in accordance with Applicable Law. In order for the owner and/or operator of a transfer
<br /> station to be entitled to deliver Acceptable Waste from a Participating City to the Waste Infrastructure System for the
<br /> Contract Rate as provided in Article IV,such owner and/or operator must execute a direct agreement with the County,
<br /> acknowledging and agreeing to comply with the obligation of the Participating City to cause the delivery of all
<br /> Controllable Waste to the Waste Infrastructure System pursuant to this Agreement. In addition, the County shall be
<br /> authorized to implement procedures to determine if Acceptable Waste delivered by the owners or operators of Transfer
<br /> Stations is entitled to utilize the Waste Infrastructure System for the Contract Rate. Such procedures may include
<br /> requiring Transfer Stations to certify,under penalty of perjury,the source of any such Acceptable Waste.If necessary,
<br /> the County may require that, in order to qualify for use of the Waste Infrastructure System for the Contract Rate,
<br /> Transfer Stations must deliver Controllable Waste in loads containing only Controllable Waste, and not commingled
<br /> with Acceptable Waste from entities which are not Participating Cities or Participating Independent Haulers.
<br /> (D) Power to Obligate Waste Disposal and Comply with this Agreement. On or before the
<br /> Commencement Date,(i)any City franchise,contract, lease,or other agreement which is lawfully in effect relating to
<br /> or affecting Controllable Waste shall provide,or shall have been amended to provide,that the City shall have the right
<br /> without material restriction on and after the Commencement Date to direct the delivery of all Controllable Waste to
<br /> the County Waste Infrastructure System(whether or not such Controllable Waste is delivered to a transfer station as
<br /> an intermediate step prior to landfill disposal)and otherwise to comply with its obligations under this Agreement with
<br /> respect to Controllable Waste and Franchise Haulers,and(ii)the City shall designate the Waste Infrastructure System
<br /> as the disposal location pursuant to such franchise,contract,lease or other agreement.On and after the Commencement
<br /> Date and throughout the Term of this Agreement the City (a) shall not enter into any franchise, contract, lease,
<br /> agreement or obligation, issue any permit, license or approval, or adopt any ordinance, resolution or law which is
<br /> materially inconsistent with the requirements of the Waste Disposal Covenant,and(b)shall maintain non-exclusive or
<br /> exclusive franchises or other contractual arrangements over any City Acceptable Waste which,as of the Contract Date,
<br /> is subject to non-exclusive or exclusive franchise or other contractual arrangements. The City agrees that the County
<br /> shall be a third party beneficiary of the obligation of Franchise Haulers to deliver Controllable Waste to the Waste
<br /> Infrastructure System, and may directly enforce such obligation through any legal means available. The City shall
<br /> notify in writing each Franchise Hauler of the County's third party beneficiary rights.
<br /> (E) Controllable Waste Flow Enforcement.
<br /> (I) The City, in cooperation with the Department, shall establish, implement, carry out and enforce a waste
<br /> flow enforcement program which is sufficient to assure the delivery of all Controllable Waste to the Waste
<br /> Infrastructure System pursuant to and in accordance with the Waste Disposal Covenant for Controllable Waste disposal
<br /> at the times and in the manner provided herein. The waste flow enforcement program shall consist of amending City
<br /> franchises,permits or authorizations with all Franchise Haulers,to the extent required by this Section and to the extent
<br /> allowed by law, and shall include in addition,to the extent necessary and appropriate in the circumstances to assure
<br /> compliance with the Waste Disposal Covenant, but shall not he limited to;
<br /> (i) licensing or permitting Franchise Haulers,upon the condition of compliance with the Waste Disposal
<br /> Covenant,
<br /> (ii) providing for and taking appropriate enforcement action under any such franchise, license,or permit,
<br /> such as but not limited to the suspension, revocation and termination of collection rights and
<br /> privileges, the imposition of fines or collection of damages, and the exercise of injunctive relief
<br /> against non-complying Franchise Haulers and
<br /> (iii) causing any Transfer Station to which Controllable Waste is delivered for processing to deliver
<br /> certification,under the penalty of perjury,of the amounts of Controllable Waste received and Residue
<br /> remaining from processing at such Transfer Station.
<br /> (2)The City acknowledges and agrees that in the event of a breach of the Waste Disposal Covenant by the
<br /> City,the City shall pay the County an amount equal to the amount that the City would have been required to pay to
<br /> the County had the Waste Disposal Covenant not been breached, which shall be calculated by: (1) subtracting the
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