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<br />The City of San Marcos Facilities Service Contract <br /> <br />environmentally sound manner and in accordance with Applicable Law and the Contract <br />Standards. Notwithstanding the Company's disposal obligations as set forth in this Service <br />Contract, the parties acknowledge that the City is the generator of such Residuals. <br />(B) General Plan of Disposal. The parties acknowledge that the Company's <br />general plan in carrying out its Off-Site Residuals Disposal Obligations under Sections 7.20 <br />through 7.25 is to enter into Subcontracts for the transportation and disposal of Residuals <br />with waste hauling and disposal firms for disposal at lawfully authorized disposal facilities. <br />Subject to the specific terms, conditions or limitations in this Service Contract, the Company <br />may modify this plan, and in particular shall have the right to use its own forces rather than <br />using Subcontractors to meet its obligations under Sections 7.20 through 7.25. <br />(C) General Allocation of Risk in the Transportation and Disposal of <br />Facilities Residuals. It is the intention of the parties, in general, that (1) the Company bear the <br />transportation and disposal risks with respect to the Residuals Management Services, <br />including the risk of (a) the prices and business terms and conditions which may prevail from <br />time to time over the Term in the market for the transportation and disposal of Residuals; (b) <br />the availability and cost to the Company from time to time of Acceptable Disposal Sites for <br />Residuals; (c) the availability and cost to the Company from time to time of transportation <br />services for Residuals; (d) the transportation distance from the Facilities to an Acceptable <br />Disposal Site; and (e) the performance or non-performance by any Subcontractor of the <br />Company engaged in Residuals processing, transportation or disposal services, and (2) the City <br />bear the risk of certain defmed Changes in Law relating to Residuals, but not other changes in <br />law, with respect to the Residuals Management Services, as provided in Section 7.25. <br />(D) Residuals Disposal Information and Reporting. The Company shall keep <br />and maintain such logs, records, manifests, bills of lading or other documents pertaining to <br />Residuals as are necessary or appropriate to comply with Applicable Law and to monitor and <br />confirm compliance by the Company with the requirements of Sections 7.20 through 7.25, and <br />shall collect and provide the City with a copy of all weights and measures data and information <br />relating to quantities of Residuals generated, transported and disposed of hereunder. The <br />Company shall prepare and file, on behalf of the City and subject to the City's review, approval <br />and, as applicable, signature, all reports and records required to be prepared and filed with any <br />Govemmental Body pursuant to Applicable Law with respect to all Residuals. The City, only to <br />the extent required by Applicable Law, shall sign all permits, manifests or similar documents <br />required for the transportation or disposal of Residuals. <br />(E) Subcontracts. Any Subcontract entered into by the Company with <br />respect to matters contemplated by Sections 7.20 through 7.25 shall be assignable to the City <br />upon the expiration or termination of this Service Contract or upon a severance of certain <br /> <br />51 <br />