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Attachment A -3 Excerpts from the City of Shoreview Recycling Contract - Residuals Requirements AGREEMENT FOR RECYCLING COLLECTION This Agreement is made on the 1" day of January 2001, between the CITY OF SHOREVIEW, 4600 North Victoria Street, Shoreview, Minnesota 55126 ( "City ") and WASTE MANAGEMENT INC., a Minnesota corporation, with its current local place of business at 775 Rice Street, St. Paul, Minnesota 55117 ( "Contractor "). 4. DISPOSAL OF RECYCLABLES AND PROCESS RESIDUALS - Contractor shall use its best efforts to assure that all recyclables collected in the City are not placed in landfills or incinerated and are distributed to the appropriate markets for reuse. The Contractor shall dispose of no more than five (5) percent of material as process residuals as waste residual as part of normal recyclable materials processing operations. This process reject (residuals) amount shall be a maximum by weight as measured from total outgoing products shipped for the month, and shall be reported for any of the Contractor's recyclables processing facilities receiving material from the City. The Contractor shall report actual percent process residuals disposed, and the disposal facility or facilities utilized for disposal, with each monthly billing statement. If the process residuals maximum is exceeded for any facility for any month, the report shall include the types and amounts of materials landfilled or incinerated, the reason for the landfilling or incineration, and the steps being taken by Contractor to avoid landfill or incineration. 5. LACK OF ADEQUATE MARKET DEMAND - In the event that the market for a particular recyclable ceases to exist, or becomes economically depressed that it becomes economically unfeasible to continue collection processing and marketing of that particular recyclable, the City and the Contractor will both agree in writing that it is no longer appropriate to collect such item before collection ceases. Contractor shall pay the costs of all disposal of any item collected that is deemed not recyclable by Contractor and the City due to lack of adequate market demand. The City and Contractor shall specify a date in the said written agreement to cease collection of the recyclable item in questions. Contractor shall at all times be under a duty to minimize recyclables ending up in landfill or incineration. If such disposal becomes necessary, Contractor shall dispose of the materials at a facility specified in writing by the City or an alternative agreed upon by the City and the Contractor. B1605