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<br />The City of San Marcos Facilities Service Contract <br /> <br />become Hazardous Residuals, and cooperate with the City and all appropriate Governmental <br />Bodies in effectuating the proper disposal thereof. The Company, in the most expeditious <br />manner possible, shall cause Hazardous Residuals to be removed from the Facilities and <br />transported to and disposed of at an Off-Site disposal facility authorized to receive and dispose <br />of such Hazardous Residuals under Applicable Law, and shall take all necessary On-Site <br />remediation steps. The cost of performing any identification, testing, removal, temporary <br />storage, On-Site remediation, and Off-Site transportation and disposal measures with respect <br />to such Hazardous Residuals (over and above normal due diligence of the Company as <br />described at the beginning of subsection (B) of this section) shall be borne by the Company <br />unless the Company demonstrates that it complied with the Hazardous Materials Detection <br />requirements described in this section, in which case such costs (over and above normal due <br />diligence costs of the Company as described at the beginning of subsection (B) of this section) <br />shall be borne by the City. <br />(D) Off-Site Remediation. In the event that Hazardous Residuals are <br />transported and disposed of Off-Site, the costs associated with any necessary Off-Site <br />remediation measures shall be borne by the Company, unless the Company demonstrates that <br />it complied 'with the Hazardous Materials Detection requirements described in this section, in <br />which case such costs shall be borne by the City. <br />(E) Limitation of Company's Liability. Company's liability for remediation of <br />Hazardous Residuals shall be limited to the extent the need for remediation was caused by a <br />Willful or Negligent Act, Error or Omission of the Company. <br />(F) Reimbursement of Costs. Any costs payable by the City under this <br />Section shall be reimbursed to the Company in the Extraordinary Item Component of the <br />Service Fee. <br /> <br />SECTION 7.25. CHANGES IN LAW AFFECTING RESIDUALS MANAGEMENT <br />SERVICES. (A) Change in Law Relief Authorized and Limited. The occurrence of a Change in <br />Law, to the extent it affects the cost of performance of the Residuals Management Services <br />shall not entitle the Company to relief under the "Change in Law" and "Uncontrollable <br />Circumstances" provisions, except , except for changes in Federal or State law. <br />(B) Mitigation. The Company shall use all commercially reasonable efforts to <br />minimize any net incremental costs to the City under this Section, either by (1) causing the <br />Subcontractor to mitigate its costs as contemplated by subsection 9.6(F), (2) changing practices <br />related to the On-Site Residuals Handling Obligations, or (3) proposing a Capital Modification; <br />provided, however, that the Company's duty to mitigate shall not impose upon the Company an <br />obligation to change the Designated Disposal Site to another site. <br />(C) Certain Severance Rights. From and after the date of a request by the <br />Company for an adjustment of the Service Fee based on the occurrence of a Change in Law <br /> <br />55 <br />