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August 10,1992 BFI'S PROPOSED TERMS AND CONDITIONS I. Effective Date: The effective date of this agreement shall be 45 days following the approval of the governing body of the SBTSA member agency last approving and executing this agreement. II. Term A. Transfer Station Agreement: Term remains unchanged (e.g., June 14, 2004). -- B. Refuse Collection Agreement: Term is extended ave years to September 30,1999, with the option of the SBTSA to unilaterally extend this agreement on the same terms and conditions for a period of five additional years. C. Recycling Collection Agreement: Term is extended five years to September 30,1999, with the option of the SBTSA to unilaterally extend this agreement on the same terms and conditions for a period of five additional years. III. Obligations of BFI A. Transfer Station Agreement: 1. BFI shall acquire, design, and construct the MRF with the capability to process sufficient recyclables (currently assumed to be 30% of the SBTSA member agencies waste stream) so that each SBTSA member agency shall reach their diversion goals established by AB 939 and described in the current SRRE, based on the assumptions and plans contained in the SRRE. In this regard, BFI shall also; a. Cooperate with a design review by. SBTSA's engineering consultant in order to achieve concurrence by the SBTSA that the facility has adequate capability to process and recover sufficient recyclable material (currently assumed to be 30% of the SBTSA's waste stream) so that each SBTSA member agency shal~ reach their diversion goals established by AB 939. b. Demonstrate that the construction of the MRF has achieved its designed capacity in accordance with testing procedures accepted by the SBTSA. 2. BFI shall maintain the MRF and associated equipment (including me,r replacement) to ensure that the facility can be operated in accordance with its design from the commencement date through the termination date of the agreement.. ( Page1 of 5