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South Valley Disposal - 1997 Agreement - Amendment No. 1 FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF GILROY, CALIFORNIA AND SOUTH VALLEY DISPOSAL & RECYCLING, INC. This agreement ("First Amendment") is made and entered into on this b ~day of 0~ ' 1999, ("Effective Date") by and between the City of Gilroy, California, a municipal corpo IOn of the State ofCahfornla, ("City") and South Valley Disposal and Recyclmg, Inc., a California corporation ("Contractor"). City and Contractor may be referred to herein individually as a "Party" or collectively as the "Parties." RECITALS: A. City and Contractor are currently parties to an agreement entitled "Agreement Between City of Gilroy and South Valley Disposal and Recycling, Inc." dated September 2, 1997 ("Agreement"); B. City and Contractor mutually desire to implement a collection process and lien procedure for delinquent customer billings as provided for by Government Code sections 25831 and 38790.1 and Gilroy City Code, Chapter 12; and C. City and Contractor further desire to change the customer billings from a monthly billing cycle to a quarterly billing cycle. NOW, THEREFORE, in consideration of the factual premises and the covenants and conditions set forth in this First Amendment, City and Contractor hereby agree as follows: 1. follows: Subsection (a) of Section 11 of the Agreement is hereby amended to read as (a) Customer Billings and Collections. Contractor, at its own expense, shall perform all customer billing services, which shall be on a quarterly cycle, and all collection of charges billed in connection with Contractor's services to customers described in this Agreement prior to the customer billings being assigned to City as provided for by subsection (b) below. A summary of all billings to customers and collections of charges during each month shall be furnished to City at least monthly, not later than the fifteenth (15th) day of the following month, during the term of this Agreement. The billing summary shall include all of the information set forth in Exhibit "L" attached to the Agreement. IJHI440729.01 91-033004706002 -1- 2. follows: Subsection (b) of Section 11 of the Agreement is hereby amended to read as (b) Nonpayment By Customers. Contractor may assign its customer billings to City as provided for by Government Code sections 25831 and 38790.1 and the Gilroy City Code, Chapter 12. 3. follows: Subsection (c) of Section 11 of the Agreement is hereby amended to read as ( c ) Disputes. All disputes regarding rates, charges and adjustments shall be resolved in accordance with the procedures set forth in Section 17 of this Agreement. 4. follows: Subsection ( e) of Section 10 of the Agreement is hereby amended to read as (e) Annual Index Rate Adjustments. Except as provided in subsection (t), after the third year of this Agreement the rates and charges set forth in this Agreement shall be subject to adjustments which correspond to increases or decreases in price indexes in accordance with the terms and conditions set forth in Exhibit "J" attached hereto and incorporated herein by this reference. Such adjustments shall be made as of July 1 st each year during the term of this Agreement, commencing on July 1,2000. 5. follows: Subsection A. 2. of Exhibit "J" to the Agreement is hereby amended to read as 2. The "Adjustment Date" is July 1 st every year, commencing July 1,2000. 6. All other terms ofthe Agreement which are not in conflict with the provisions of this First Amendment shall remain unchanged in full force and effect. In case of a conflict in the terms of the Agreement and this First Amendment, the provisions of this First Amendment shall control. IJHI440729.01 91-033004706002 -2- .t .~ The Parties acknowledge and accept the terms and conditions of this First Amendment as evidenced by the following signatures of their duly authorized representatives. It is the intent of the Parties that this First Amendment shall become operative on the Effective Date first set forth above. Dated: 7 - & -q' q' . , Approved as to form: ~c:,&U~ Linda A. Callon, City Attorney Atte~J / 'dJfll1 ld <-V ~- Rhonda Pellin, City Clerk Dated: C" l' 'f'61 \C\L\C\ I SOUTH VALLEY DISPOSAL & RECYC G, INe. \ " I By ",,~ -'\,\ ~~~~ . ~ Its: J ~ . ~t\~~~ '6' IJHI440729.01 91-033004706002 -3-