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3. Term. The initial term of the Agreement shall be for a period of ten (10) years <br />commencing on the day of , 2011 ("Effective Date"), and ending on <br />the day of , 2021 (the "Initial Term"). Thereafter, the City shall <br />have the option to renew and extend the Agreement for an additional ten (10) year <br />term. City shall notify Contractor of its intent to renew this agreement by providing <br />Contractor with written notice no less than sixty (60) days priar to the expiration of <br />the Initial Term. <br />4. Termination for Cause. If at any time during this Agreement, Contractor shall <br />fail to substantially perform under any of the terms, covenants or conditions set <br />forth in this Agreement, City shall notify Contractor of the default in writing by <br />certified mail or hand delivery addressed to Contractor at the address provided <br />herein. Contractor shall have thirty (30) days from receipt of the notice of default to <br />remedy the default; provided, however, if such default is of a nature that requires <br />more than thirty (30) days to cure then, Contractor shall have a reasonable time to <br />cure said default, provided Contractor commences to remedy the default within <br />thirty (30) days of receipt of notice and works diligently toward curing the default; <br />otherwise the City may terminate this Agreement and all rights and obligations <br />herein shall terminate as of the date of termination. <br />5. Performance Bond. Prior to the effective date of this Agreement, Contractor <br />shall purchase at its sole expense a performance bond in the amount of $150,000 <br />guaranteeing Contractor's performance under this Agreement and naming the City <br />as sole beneficiary under the bond. The surety must come from the United States' <br />Treasury Department's Listing of Approved Sureties and must be authorized to <br />issue surety bonds in the State of Texas. The City reserves the right to reject any <br />and all sureties. Contractor shall issue a new performance bond for this Agreement, <br />on or before the anniversary date of this Agreement for every year of this <br />Agreement. The amount of the Performance Bond for years 2-10 of this <br />Agreement, and any renewal years of this Agreement, shall be based upon the <br />City's residential landfill disposal costs for the prior year. <br />6. Base Rates. <br />(a) Contractor shall charge City the following rates for receiving and disposing <br />of Waste Material at the Landfill (`Base Rates"): <br />(i) Compacted Waste Materials $5.40 per cubic yard <br />$17.25 per tonl <br />(ii) Curbside pickup of Bulky Waste $10.00 per cubic yard <br />from residential account upon special <br />request by City Public Works Director <br />and/or Sanitation Manager <br />' Contractor shall apply the cubic yard rate to all waste material received from City, unless and until City provides <br />Contractor with thirty (30) days advance written notice of City's intent to enforce the tonnage rate. <br />Landfill Services Agreement - Page 4 of 14 <br />