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<br />April 1, 2025 24 City of Pleasanton/GreenWaste Recovery, LLC
<br />described in Contractor’s Proposal, even if the addition of the subject material is covered under what might 891
<br />otherwise be considered an eligible item under Section 8.5 .A. 892
<br />If existing Extended Producer Responsibility Programs (including but not limited to, AB 1201, SB 1383, SB 54, 893
<br />and SB 343) or new Extended Producer Responsibility Programs, as further described in Section 2.6, require 894
<br />additional materials be Diverted that are not otherwise identified in Exhibit D and Exhibit E, the City may 895
<br />incorporate such materials into the City’s Collection program for Recyclable Materials and update Exhibit D, 896
<br />as appropriate, and Contractor shall Accept, Process, Recover, and Divert those materials. The City may also 897
<br />request Contractor participate in another type of program to receive the subject material for Processing, 898
<br />Recovery, and Diversion that would constitute a change in scope, as described in Section 2.3, although the 899
<br />City is under no obligation to do so. Notwithstanding the provisions of Section 8.5 .A.4, any and all such 900
<br />changes described in this paragraph related to Extended Producer Responsibility Programs shall be treated as 901
<br />a change in scope pursuant to Sections 2.3, 8.5.A.1, and 8.6 and shall not be considered a Change in Law. 902
<br />Further, Contractor shall also be expressly precluded from requesting a Special Tipping Fee Review, as 903
<br />described in Section 8.5, to the extent any such item is covered under an Extended Producer Responsibility 904
<br />Program that compensates Contractor for the Processing, Recovery, and/or Diversion of such materials, in 905
<br />whole. The City reserves the right to trigger a Special Tipping Fee Review or direct Contractor to otherwise 906
<br />remit compensation attributable to the Services under this Agreement, as provided in Section 8.5.E, if 907
<br />Contractor receives compensation for the Processing, Recovery, and/or Diversion of any such item from the 908
<br />City’s Service Area under an Extended Producer Responsibility Program. 909
<br />Additionally, to the extent that either Party becomes aware that Exhibit D may need to be modified as a result 910
<br />of an Extended Producer Responsibility Program, that Party shall notify the other Party within five (5) Days of 911
<br />being made aware of such change. Upon the City’s request, and to the extent the City desires to incorporate 912
<br />any new materials into the City’s Collection program, the Parties shall promptly meet and confer to discuss 913
<br />the timeline and process for the City to implement such changes to the Collection program and for Contractor 914
<br />to make necessary adaptations to its Processing method to ensure Recovery and Diversion of the subject 915
<br />materials. The City shall update Exhibit D, as appropriate, and Contractor shall implement any required 916
<br />changes to its Processing method on a timeline as mutually agreed to by Contractor and the City or before 917
<br />any required deadlines identified in the Extended Producer Responsibility Program, whichever is sooner. 918
<br />Contractor shall maintain records in accordance with Article 9 and Exhibit A. Pursuant to Section 11.3, 919
<br />Contractor shall bear full responsibility for complying with all Applicable Law and the provisions of this 920
<br />Agreement. 921
<br />D. Diversion. Contractor shall Process all Recyclable Materials in a manner that maximizes reuse, Recycling, and 922
<br />Diversion. After Processing, Contractor may Dispose of materials that do not have a higher or better use as 923
<br />Residue, to the extent allowed by State and local law. Contractor shall Process all Recyclable Materials such 924
<br />that each Diverted commodity is of sufficient quality such that they attract the highest domestic market prices 925
<br />for similar commodities, produced and sold by other local Processing facilities that Process single-stream 926
<br />Recyclable Materials. Contractor’s operation of the Approved Recyclable Materials Processing Facility must 927
<br />consistently produce commodities that achieve Residue and contamination standards that meet or exceed 928
<br />the domestic market requirements such that they could attract the highest current domestic market price for 929
<br />the specified commodities. Verification of commodity quality standards shall be conducted annually through 930
<br />the material characterization study performed in accordance with Exhibit I. 931
<br />E. Material Characterization. Contractor shall engage a third party to design and perform a Residue and material 932
<br />characterization study of the Recyclable Materials Processed at the Approved Recyclable Materials Processing 933
<br />Facility a minimum of one (1) time per calendar year. Contractor shall propose a study methodology that must 934
<br />include separately Processing at least thirty (30) Tons of Recyclable Materials from the City Service Area, 935
<br />stratified across no fewer than three (3) distinct Days of Service, at the Approved Recyclable Materials 936
<br />Processing Facility under normal operating conditions for the Facility (i.e., staffing levels, belt speed, burden 937
<br />depth) and meet all other requirements as described in Exhibit I. The methodology must be approved by the 938
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