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1 C. Furnishing of Insurance and Bonds. Contractor has furnished 2 evidence of the insurance and performance bond required by Article 9. 3 4 D. Effectiveness of Agency CouncilfBoards Action. The Agency has 5 the authority to enter into and perform its obligations under this Agreement. The 6 Agency has taken all actions required by law or otherwise to authorize the execution of 7 this Agreement. The Persons signing this Agreement on behalf of the Agency have the 8 authority to do so. The Agency's ()rdinance approving this Agreement, shall have 9 become effective pursuant to California law. 10 11 In the event that any condition set forth in this Section 2.06 is not satisfied or 12 waived, by the effective date, by the Agency, this Agreement shall be void and shall 13 have no further force or effect. Agency may waive the satisfaction of conditions 14 described in Section 2.06, allow this Agreement to become effective, and exercise its 15 rights and remedies under this Agreement for Contractor's failure to deliver the bond 16 and/ or evidence of insurance. Each party is obligated to perform in good faith the 17 actions, if any, which this Agreement requires it to perform before the effective date and 18 to cooperate towards the satisfaction of the conditions set forth above. 19 20 2.07 Scope of Franchise. Subject to Section 2.08, the Franchise granted to 21 Contractor shall be exclusive for all Solid Waste, residential Recyclable Materials, 22 Commercial Organic Materials, and Plant Materials generated in the Service Area, 23 except where otherwise precluded by Federal, State and local laws and regulations or 24 where other current programs provide for Collection and handling of Household 25 Hazardous Waste. 26 27 2.08 Limitations to Scope. The Agreement for the Collection, transportation, 28 processing, and Disposal of Solid Waste, residential Recyclable Materials Commercial 29 ()rganic Material, and I'lant Materials granted to Contractor shall be exclusive except as 30 to the following materials listed in this Section. The award of this Agreement shall not 31 preclude the categories of Solid Waste, Recyclable Materials, Commercial ()rganic 32 Materials and Plant Materials listed below from being delivered to and Collected and 33 transported by others provided that nothing in this Agreement is intended to or shall be 34 construed to excuse any Person from obtaining any authorization from Agency which is 35 otherwise required by law: 36 37 A. ()ther recyclers shall maintain the right to charge a fee, to Collect 38 without a fee, to accept donated Recyclable Materials and to pay the service recipient 39 for Recyclable Materials for the Collection of Source Separated Recyclable Materials, 40 Commercial ()rganic Materials and Plant Materials from commercial, industrial, multi- 41 family and institutional generators located in the Service Area. For the purposes of this 42 Agreement, Source Separated loads are loads that consist of less than 10% by weight or 43 volume of Solid Waste, whichever is less. It will be the responsibility of Contractor to 44 provide enforcement of this provision. If Contractor can document that other recyclers Atty j Agr j 2005.022 060205 -6-