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<br />e <br /> <br />e <br /> <br />the Contractor, the Contractor shall pay all reasonable <br />costs and attorney's fees necessarily incurred by the <br />City in defense of such litigation, and shall save and <br />hold the City harmless from any liability therefrom. <br /> <br />(C) Nuisance-free operations. The Landfill shall be <br />operated by the Contractor in a nuisance-free manner, and in <br />such a manner as not to generate or produce any objectionable <br />or offensive odors, noise, smoke or fumes outside the <br />Landfill premises, and in a manner meeting and complying with <br />all valid, non-discriminatory and generally applicable <br />ordinances, regulations and laws of the State of Texas and <br />other regulatory bodies having jurisdiction over the <br />Contractor's operation, which may be from time to time in <br />effect and applicable to the Contractor's operations. <br />Conditions unfavorable for the production of vectors shall be <br />maintained by carrying out routine landfill operations <br />promptly in a systematic manner. Supplemental vector control <br />measures shall be instituted whenever necessary. <br /> <br />(II) TERM OF AGREEMENT. This Agreement shall be for a <br />period of five (5) years beginning April 1, 2001, and ending March <br />31, 2006. The initial term of the Agreement may be extended for <br />an additional five (5) years, upon the Mutual agreement of the <br />City and the Contractor. ' <br /> <br />(III) COMPENSATION TO CONTRACTOR. As full compensation to the <br />Contractor for operation of the Landfill, the City agrees to pay <br />the Contractor the following fees, plus the amount of the State <br />fees imposed on the Contractor for each type of waste: <br /> <br />(A) Type I solid waste. <br /> <br />1st year of Agreement <br /> <br />$5.40 per cubic yard plus State fee <br /> <br />(B) Processed sewage sludge. <br /> <br />1st year of Agreement <br /> <br />$8.00 per cubic yard plus State fee <br /> <br />(C) Adjustments to base fee for Type I waste. On April 1 of <br />2002, and on each subsequent year. during the term of the <br />Agreement, the parties agree to adjust the base fees so that <br />it shall be increased or decreased in accordance with changes <br />in the Consumer Price Index in the Houston metropolitan area <br />for Urban Consumers (CPI-U) as promulgated by the Bureau of <br />Labor Statistics of the United States Department of Labor, <br />using the year 2001 as a base. <br /> <br />3 <br />