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commodities. The Contactor shall attach written certification from each end <br />market. <br />l 0. Contract Term and Rate Payment <br />The ten n of this contract agreement is for five-years from January 1, 2004 to <br />December 31, 2008. The Contract rate of $2.36 per month per household is fixed <br />for gears, 2004 and 2005# with an option on either parties' part to open the <br />contract in the third, fourth and fiftl-i years to review contract costs based on the <br />Consumer Price Index "CPI ". Cost increases would be capped at a maximum of <br />% per year and agreed to by both parties. The rate includes all collection costs, <br />carts, materials processing and marketing expenses. <br />. Penalties <br />The Contractor agrees the City may withhold payment from the Contractor in the <br />amounts specified below as a penalty for failure of the Contractor to fulfill its <br />obligations: <br />A. Failure to report changes in location of recyclables processing operations - <br />$250per incident. <br />B. Exceeding the maximum process residuals rate - $1,000 per incident <br />(defined as a monthly total by weight over the specified maximum rate). <br />C. Failure to conduct composition analysis - $500 per incident. <br />D. Failure to provide Witten description of the means to estimate relative <br />amount of process residuals derived from the City's recyclables - $500. <br />12. Terms and Conditions <br />Terms and Conditions shall continue as set forth in the original Recycling <br />Agreement that apply for single sort with the exception of the Single Stream pilot <br />Program which is hereby moot. <br />To the extent that the provisions of this Agreement are in conflict with the <br />requirements of the October 1, 2002 RFP, the RFP shall prevail. <br />E <br />