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3. Garbage Excluded. The license privilege granted herein shall not include: (a) Such garbage as is ordinarily disposed of in a sanitary manner by occupants of the premises on which such garbage accumulates; provided such disposition meets with the requirements of all applicable health and sanitary statutes, ordinances and regulations of the State of California, or any agency thereof, and of any political subdivisions and public entity having jurisdiction over such matters, and of the City; (b) Rubbish and waste material removal by householders or occupants, to public dumps; or (c) Salvage operations conducted by manufacturers, charitable and nonprofit organizations and bodies. 4. Payment for Collections; Retention by City. City shall collect and pay to Company eighty-seven percent (87%) of billings made by City for services rendered by Company. Such payments shall be made by City to Company on or before the tenth (10th) of each month for services rendered during the immediately preceding billing period. Such services shall be billed by City to all premises at the time and in the manner City bills for water service are rendered to premises in said City, provided, that Company shall collect directly from persons for whom special collections are furnished. City shall file with Company at times specified, but not more often than once monthly, a complete report by accounts showing all amounts to be collected for such service. Such reports shall be in such form as may from time to time be agreed upon by Company and City. If and when City should cease rendering bills for water service, Company shall collect monthly for services rendered by it directly from all premises to which such services are rendered and pay over and remit to City quarterly twelve and