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<br />As of 01/07/08 <br /> <br />paper fiber products, including: newspapers, boxboard, magazines, pop/beer boxes, mixed <br />mail, catalogs, phone books, Kraft bags and corrugated cardboard. <br /> <br />In addition, residents may place clean, reusable textiles out separately in plastic bags as <br />outlined in Section 34 of this Agreement. Under this "dual stream plus" system design, <br />processing shall also be by the categories as collected: paper separated from containers <br />separated from textiles. <br /> <br />The Contractor shall not make any changes to the dual stream collection or processing <br />systems without written approval of the City. <br /> <br />6. Payment Terms <br /> <br />The Contractor will invoice the City of Arden Hills on a monthly basis and the City will pay the <br />contractor no later than net 30 days of receipt of the invoice. The billing system will include <br />the following elements: <br /> <br />6.1 Compensation to Contractor: <br />City agrees to pay Contractor $2.95 per residential dwelling unit per month in 2008 for weekly <br />curbside collection, processing and marketing of recyclables. For 2008 the City certifies that <br />there are 2,560 curbside units that will receive service. The City will notify the Contractor by <br />Feb. 1 of each year what the certified number of curbside units will be for the subsequent <br />year. <br /> <br />The City agrees that prices for service will increase each year the Consumer Price Index for <br />the Upper Midwest as determined by the Federal Reserve Bank of Minneapolis. The City will <br />notify the Contractor by the last week of December what the compensation rate will be for the <br />subsequent calendar year. <br /> <br />6.2 Materials Sales Revenue Share <br />A composite credit for the following material sales revenue share: <br /> <br />6.2.1 All Paper Grades <br /> <br />Paper prices shall be based on the Official Board Markets (OBM) "Yellow Sheet," Chicago <br />region for Old Newspapers (ONP) # 8, high side of range. The Contractor shall pay the City <br />50% of this OBM index for all grades of paper collected after a processing fee of $75 per ton. <br /> <br />6.2.2 Aluminum <br /> <br />Aluminum prices shall be based on the American Metal Market (AMM), Aluminum (1st issue <br />of the month), high side nonferrous scrap prices: scrap metals, domestic aluminum <br />producers, buying prices for processed used aluminum cans in carload lots, f.o.b. shipping <br />point, used beverage can scrap. The Contractor shall pay the City 50% of this AMM <br />aluminum index after a processing fee of $150 per ton. <br /> <br />The Contractor shall provide copies of the referenced OBM market index and AMM market <br />index with each monthly statement. The Contractor shall provide a detailed explanation of <br />how the material splits are calculated to derive the paper and aluminum tonnage estimates. <br /> <br />7 <br />