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88 Page 124 APPENDIX A Prohibitive moisture exists if TRM received in the MRF is so wet that it is unable to be processed. If moisture levels exceed 25% and material is clumped and wadded such that Contractor is unable to process it, then Contractor will immediately notify SBWMA (email with photos and explanation) and hold the material awaiting SBWMA determination. If SBWMA determines that material is unsortable/unusable, then those materials will be weighed and moved to the transfer station. The Contractor will receive a service fee of$5.00 per ton for such material and will not be responsible for revenue from the sale of the product, nor will they be responsible for transport or disposal costs. CONTAMINATION and the MRF SBR has summarized the critical importance of MRF contamination and provided a document SBWMA EXCESS CONT AMINA TION ISSUES to the SBWMA on August 24,2908: Please refer to the attached document for a comprehensive summary of contamination issues related to collection contracts and MRF operations. If the TRM delivered to the MRF is less than 8% for commercial loads and 10% for residential loads, then SBR has no issues or concerns. If contamination levels meet or exceed those thresholds, then the following provisions apply: Anything that is not on the list of Targeted Recyclable Material (TRM) is considered to be contamination. There are three issues regarding contamination: Member Agency (MA) contamination levels during the first year, ongoing contamination levels for Member Agencies, and contamination levels of individual loads. Member Atzencv (MA) contamination levels durin!! the first year will be monitored by the Operations Contractor (OC) by observation or testing (sorting) material at the site. If the OC believes the contamination levels are below the threshold, 80,10 for commercial and 10% for residential, then no testing is required. If not, then the OC will notify SBWMA of the need to check contamination levels and provide them with information and/or documentation to substantiate their request. The testing will be coordinated and paid by SBWMA. If any MA contamination level exceeds the threshold, then commercially reasonable adjustments will be made to the Revenue Guaranty and OC payments so that all excess costs, which are subject to SBWMA approval, are not paid by the OC. On2oin2: contamination levels for Member A2encies (MAs) which consistently exceed the prevailing threshold will result in commercially reasonable adjustments to OC payments so that all excess costs, which are subject to SBWMA approval, are not paid by the OC. The purpose of this provision is to ensure the OC does not suffer higher costs for any MA contamination levels which consistently exceed the 8% threshold for commercial or 10% threshold for residential. Contamination levels of individual loads which exceed the prevailing threshold will result in commercially reasonable adjustments to OC payments so that all excess costs, which are subject to SBWMA approval, are not paid by the OC.