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4. Insurance Coverage - In view of the recent decision of the Courts to
award large sums for damages against municipalities, the municipal
solicitor has recommended that the $1,000,000 limit for insurance
coverage stipulated initially in the contract be increased. This was
referred to International Paper Industries Ltd. and SoHsAReE. society
who have both spoken against the increase in coverage for economic
reasons, They have, however, agreed to increasing the PLPD insurance
coverage for vehicles to $5,000,000 and the insurance overage for
completed operations and comprehensive PLPD including bodily injury or
death on an all risk occurrence basis to $2,000,000. They were reluctant
to Increase the latter portion of the insurance coverage to $5,000,000
since it would cost approximately $375 per miltion of insurance or a
total amount of $1,125 In additional insurance premiums per year. From
the City's point of view, their agreement to increase the respactive
limits for the insurance coverages as indicated is a reasonable
compromise. Council should note that there is also an Indemnity Clause
in the Contract under Section 2 of Schedule C offering further protection
for the City against damage claims.

Exclusive Franchise - The Contract stipulates that the City wil! not
permit other Contractors to operate a curbside pick-up service. However,
this provision does not apply to newspaper drives organized by groups
such as Boy Scouts, Girl Guides, etc., provided that tha days selected
for such drives do not fall on the same days as the regular curbside
pick-up service,

Expansion of Service ~ The initial draft ef the Contract contained a
clause requiring the Contractor to expand the service to inciude other
recycieable goads such as plastic and glass provided it is economical ly
viable. The Solicitor'ts comment on this item is that it is non=
enforceabie because of the difficulty in defining economic viability.
This clause was therefore deleted in the final draft of the Contract.

Payment to Contractor - As was already agreed to in principle by Council,
the Contract stipulates that the City will, upon the commencement of this
Gontract, pay a sum of $2,000 to International Paper Industries to assist
in purchasing the blue plastic bags required by each residence to place
the newspaper into. Council should be aware though that the City does
not have to pay this $2,000 entirely from. its budyet since the G.VeRD.
Recycling Committee has given the City a conditional grant of $2,000 to
promote recycling In the City.

Finally, the Environmental Protection Committee has reviewed this
Contract Document in detail ang recommend that the City enter into this Contract
with {nternational Paper Industries Ltd.

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TMC/sag core ee |
Attachments T.M. Chong, P. Eng., -—or™
Assistant City Engineer

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