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C. Waste Management letter and attachments dated October 30, 2006. D. Request for Proposal Amendment Number 1. E. Option #2 With Fuel Surcharge and CPI Increase in Year 2 and Year 3. F. Waste Management On-Line Customer Service Information. G. Waste Management letter dated January 8, 2007. Waste Management also agrees that all applicable provisions of Hastings City Code, Dakota County Ordinances, State and Federal laws which are now in effect or as they may be amended in the future, are also part of this Agreement. 3. Recycling Revenue Sharing Waste Management agrees to submit to the City all recycling revenue received by Waste Management for aluminum and newspaper collected within the City based upon the following formula. Beginning January 1, 2007, the quarterly average price of aluminum and newspaper shall be determined, which shall be the average price received by the hauler for aluminum and newspaper for that quarter. If the quarterly average price for aluminum exceeds $1,200.00 per ton and if the quarterly average price for newspaper exceeds $40.00 per ton, then Waste Management agrees to give the City all revenue received by Waste Management during that quarter for aluminum and newspaper which exceeds $1,200.00 per ton and $40.00 per ton respectively. Waste Management agrees to provide the City with reports at least quarterly, showing the quantities of recyclable materials collected in the City and the revenue received for those materials. Waste Management agrees to make payment to the City within 30 days after the end ofeach quarter. 4. Processing ofResidentia[ Solid Waste. Waste Management agrees that during the term of this Agreement or any extension, it shall cause all residential solid waste collected within the City limits to be processed at NRG-Newport or some other comparable facility. It is the policy and intent of the City that all residential solid waste collected within this City shall be processed at a resource recovery facility. 5. Rates. Waste Management agrees the rates it will charge during the term of this Agreement shall be as outlined in Exhibit D. Waste Management agrees there can be no price increase of any type until after January I, 2008. The fuel surcharge adjustment shall be calculated during the fourth quarter of 2007 and increases or decreases in rates, if any, shall take effect after January 1, 2008. Similarly, any adjustment upward or downwards caused by the Consumer Price Index shall not be effective after January I, 2008. From that point forward, fuel surcharge adjustments and Consumer Price Index adjustments shall be made as outlined in Exhibit D. 6. Indemnification. Waste Management agrees to defend and hold harmless the City of Hastings, its agents, officers and employees from any and all liability (including attorneys fees) for removal or remedial actions under the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (also known as the Federal Super Fund Act), Minnesota Environmental Response and Liability Act, or any comparable state law, incurred as a result of Waste Management's disposal ofrefuse collected pursuant to the terms of this Agreement at a disposal facility selected by Waste Management.