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Section: Mandatory contract provisions

Statute: 13:1E-164

Any contract to be awarded to a vendor pursuant to the provisions of this amendatory and supplementary act or pursuant to the "Local Public Contracts Law," P.L. 1971, c. 198 (C. 40A:11-1 et seq.) or any other contracting procedure permitted by law for resource recovery facilities, shall include where applicable, but not be limited to, provisions concerning: a. Allocation of the risks of financing and constructing a resource recovery facility, such risks to include: (1) Delays in project completion; (2) Construction cost overruns and change orders; (3) Changes necessitated by revisions in laws, rules or regulations; (4) Failure to achieve the required operating performance; (5) Loss of tax benefits; and (6) The need for additional equity contributions; b. Allocation of the risks of operating and maintaining a resource recovery facility, such risks to include: (1) Excess downtime or technical failure; (2) Excess labor or materials costs due to underestimation; (3) Changes in operating procedure necessitated by revisions in laws, rules or regulations; (4) Changes in the amount or composition of the solid waste delivered for disposal; (5) Excess operation or maintenance costs due to poor management; (6) Increased costs of disposal of the resource recovery facility residue; (7) The increased costs associated with the disposal of solid waste delivered to a resource recovery facility which cannot be processed at the facility; and (8) The costs of disposal of recovered material which cannot be sold; c. Allocation of the risks associated with circumstances beyond the control of any party to the contract; d. Allocation of the revenues from the sale of energy or other recovered metals and other materials for reuse; e. Default and termination of the contract; f. The periodic preparation by the vendor of an operating performance report and an audited balance statement of the facility which shall be submitted to the contracting unit, the department and the Division of Local Government Services in the Department of Community Affairs; g. The intervals at which the contract shall be renegotiated; h. Employment of current employees of the contracting unit whose positions will be affected by the terms of the contract; i. Competitive bidding procedures, or other methods of cost control, to be utilized by the vendor in obtaining any goods or services the cost of which will automatically be included, pursuant to the terms of the contract, in the rates to be charged at the resource recovery facility; and j. The formulas to be used to determine the charges, rates, or fees to be charged for the resource recovery services, and the methodology or methodologies used to develop these formulas. L. 1985, c. 38, s. 29, eff. Feb. 4, 1985.

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