has been taken into account in the amount in which either party’s opinion has resulted or is required under Section 6.1 (e) and/or 6.1 (f) above.
6.3 Any agreement reached by the parties in accordance with this Section 6 shall be subject to the approval of Council.
Further to Section 6, clause 26.2 of the Agreement for Recycling Services outlines a Termination for Convenience as follows:
26.2 Termination for Convenience
(a) This Agreement may be terminated by the City upon ninety (90) days’ prior written notice to the Supplier at any time and for any or no reason.
(b) If this Agreement is terminated by the City under Section 26.2(a) the City shall pay to the Supplier the Service Fee and any amounts earned on an hourly rate pursuant to Section 11.4 up to the date of termination, together with the reasonable direct costs actually incurred by the Supplier that are directly attributable to the termination of this Agreement and for which the Supplier is not otherwise compensated. The direct costs payable to the Supplier upon such termination shall in no case exceed:
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if the termination occurs in the first three years following the Services Commencement Date, an amount equal to 50% of the Service Fee; and
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if the termination occurs in the fourth or any subsequent year of the Term, an amount equal to 25% of the Service Fee.
The Supplier shall use commercially reasonable efforts to minimize the expenses arising as a result of the termination of this Agreement. The Supplier shall provide substantiation of the direct expenses which it claims it has suffered as a result of the termination and such substantiation shall be in form satisfactory to the City, acting reasonably. Except as provided in this Section 26.2(b), the Supplier shall have no other claim for compensation against the City and the limitation of liability described in Sections 20.1(a) and 20.2 shall apply.
The earliest date the City of Windsor could transition recycling collection to Producers is on January 1, 2023. Doing so would terminate the contract in year 6. Please see the accompanying Private and Confidential memo for further information.