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11.06 Compensation Adjustments for Changes in Scope of Services or Service Levels ...... 96 11.07 Rate -Setting Process.................................................................................................97 11.08 Notice of Rate Adjustments.......................................................................................98 11.09 Potential Rate Constraints.........................................................................................98 ARTICLE 12 AGENCY RIGHT TO USE EQUIPMENT AND FACILITIES...............................99 12.01 Purpose.....................................................................................................................99 12.02 Conditions Authorizing Agency's Right to Use of Facilities and Equipment................99 12.03 Notice to Contractor...................................................................................................99 12.04 Rights and Responsibilities of Parties......................................................................100 12.05 Duration of Agency's Right to Possession and Use of Vehicles/Equipment .............100 12.06 General....................................................................................................................100 ARTICLE 13 INDEMNITY, INSURANCE, BOND, GUARANTY.............................................102 13.01 Indemnification........................................................................................................102 13.02 Insurance.................................................................................................................102 13.03 Faithful Performance Bond......................................................................................105 13.04 Alternative Security..................................................................................................106 13.05 Hazardous Waste Indemnification...........................................................................106 13.06 Indemnification Related to Various State Requirements ..........................................106 13.07 Guaranty..................................................................................................................107 ARTICLE 14 DEFAULT AND REMEDIES.............................................................................108 14.01 Events of Default.....................................................................................................108 14.02 Right to Suspend or Terminate Upon Default ..........................................................108 14.03 Specific Performance...............................................................................................109 14.04 Right to Perform; Use of Contractor Property ..........................................................109 14.05 Damages.................................................................................................................109 14.06 Agency's Remedies Cumulative..............................................................................109 14.07 Liquidated Damages................................................................................................109 14.08 Agency Default........................................................................................................110 14.09 Excuse from Performance.......................................................................................111 14.10 Assurance of Performance......................................................................................112 ARTICLE 15 OTHER AGREEMENTS OF THE PARTIES .....................................................113 15.01 Relationship of Parties.............................................................................................113 15.02 Compliance with Law...............................................................................................113 15.03 Assignment..............................................................................................................113 15.04 Affiliated Entity.........................................................................................................114 15.05 Contractors Investigation........................................................................................115 15.06 Reserved.................................................................................................................115 15.07 Condemnation.........................................................................................................115 15.08 Notice......................................................................................................................115 15.09 Representatives of the Parties.................................................................................116 15.10 Duty of Contractor Not to Discriminate.....................................................................116 15.11 RESERVED.............................................................................................................116 15.12 Right of Agency to Make Changes in Services and Service Levels... ....................... 116 15.13 Transition to Next Service Provider..........................................................................117 15.14 Reports as Public Records......................................................................................117 ARTICLE 16 MISCELLANEOUS PROVISIONS.......................I............................................118 16.01 Governing Law........................................................................................................118 Franchise Agreement for Collection Services with Recology San Mateo County - iit - City of Redwood City ATTY/AGR.2018.054/Recology of San Mateo