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<br />1 Whereas, Agency has selected Contractor based on its knowledge and <br />2 experience in servicing the Agency and its plans for the implementation of specific <br />3 programs to meet Agency's diversion goals; and <br />4 <br />5 Whereas, this Agreement has been developed by and is satisfactory to the <br />6 parties; and <br />7 <br />8 Whereas, the parties contemplated that the ()riginal Agreement should be <br />9 extended from December 31, 2006 to December 31, 2009, conditioned on the Agency's <br />10 affirmative evaluation in the sixth year of the ()riginal Agreement (i.e., 2005) of the <br />11 Contractor's performance in following certain areas: <br />12 <br />13 A. Agency has not assessed Contractor, in any single year, liquidated <br />14 damages in excess of 0.5% of any year's revenue requirement as established in <br />15 accordance with Article 6 of the Agreement; and <br />16 <br />17 B. Contractor has not been delinquent by more than thirty (30) days in any <br />18 payment to Agency; and <br />19 <br />20 C Contractor has not had officials, with supervisory, management, or <br />21 administrative responsibility for the performance of services performed under <br />22 this Agreement, found guilty of a felony or liable for a civil penalty in excess of <br />23 $25,000 related to their duties under this Agreement or any agreement with a <br />24 municipal agency in the State of California; and <br />25 <br />26 D. Contractor has implemented the diversion programs specified in this <br />27 Agreement and those developed in accordance with Section 2.09, in accordance <br />28 with the schedule established between the Agency and Contractor; and <br />29 <br />30 E. Although Contractor has not achieved the diversion program guarantees <br />31 described in the Agreement, the Agency has agreed to waive Contractor's <br />32 failure to perform to the standard established in the Agreement; and <br />33 <br />34 F. Contractor has been rated above 80% satisfaction by respondents to a <br />35 customer satisfaction survey conducted by the SBWMA and agreed to as to <br />36 form by Contractor; and <br />37 <br />38 G. Contractor's rates fall within the 75th percentile of all rates in the San <br />39 Francisco Bay Area for similar services (adjusted for differences in landfill <br />40 disposal rates, government fees, programs, etc.) as determined through a <br />41 survey of rates conducted by the SBWMA.; and <br />42 <br />43 <br /> Atty j Agrj2005.022 <br /> 060205 -3- <br />