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1 shall be not less than the sum of one quarter (1/4) of the annual Billings of Contractor 2 within Agency's Service Area. The performance bond required by this Section shall be 3 issued by a bonding Contractor or companies authorized to do business in the State of 4 California and with a rating in the most recent edition of Best's Insurance Reports of 5 size category VII or larger and a rating classification of A or better. 6 7 ARTICLE 10 8 EMERGENCY OPERATIONS 9 10 10.01 Purpose. The purpose of this Article is to provide a procedure for 11 Collecting Solid Waste from Agency's Service Area upon the occurrence of an 12 emergency condition resulting from the causes described in Section 11.04 which 13 endanger the public health, safety, and welfare. The parties acknowledge that either 14 temporary cessation or cessation of indeterminate duration of the services to be 15 provided by Contractor hereunder may result in conditions detrimental to the public 16 health, safety, and welfare, and that, in order to protect the public, invoking the 17 extraordinary provisions of this Article may be necessary. 18 19 10.02 Emergency Condition. 20 21 A. Cause. "Emergency Condition" as used in this Article means the 22 existence of a condition or conditions which threaten or threatens the public health, 23 safety, and welfare resulting from Contractor's failure or inability to perform its duties 24 and obligations hereunder due to the effect upon Contractor of fire, flood, storm, 25 earthquake, or other natural calamity, riot, insurrection, public disobedience, labor 26 controversy, labor strike, insolvency of Contractor, or similar condition. "Emergency 27 Condition" does not include the results of failure of Contractor to comply with 28 standards and procedure implemented pursuant to this Agreement or other 29 substandard performance by the Contractor. 30 31 B. Hearing; Determination. Agency may hold a hearing on the 32 question of the existence of an emergency condition upon giving not less than forty- 33 eight (48) hours' prior written notice to Contractor and to all member agencies of 34 said hearing. At the hearing, Contractor and any and all interested Persons shall be 35 given the opportunity to be heard on the question aforesaid. Upon conclusion of the 36 hearing, Agency conducting the hearing shall determine if an emergency condition 37 exists in the Service Area of Agency. If it is determined that an emergency condition 38 does exist, the Agency shall, by resolution, declare the existence of the emergency 39 condition, and transmit a certified copy of the resolution to Contractor and to all 40 member agencies of SBWMA . 41 42 10.03 Emergency Operations. From and after the declaration of the existence of 43 an emergency condition pursuant to Section 10.02, SBWMA and/ or Agency may 44 assume and carry out, as the "Emergency ()perator," the Solid Waste Collection Attyj Agrj2005.022 060205 -54-