Contract - Orange County - 2004-06-22 • AMENDMENT NO. 1
TO WASTE DISPOSAL AGREEMENT
WITH
COSTA MESA SANITARY DISTRICT
This Amendment No. 1 is made and entered into on this 22nd day of June 2004 by and
between the COUNTY OF ORANGE, a political subdivision of the State of California
(hereinafter `COUNTY") and the sanitary district designated above (hereinafter `DISTRICT").
The DISTRICT is a sanitary district in the COUNTY formed pursuant to the Sanitary District
Act of 1923, codified at Ca. Ann. Health & Safety Code Section 6400 et seq.
RECITALS
WHEREAS, COUNTY and DISTRICT entered into a Waste Disposal Agreement (herein
after Agreement") on April 8, 1997 guaranteeing that DISTRICT shall deliver or cause to be
delivered to the Orange County Landfill Disposal System, all of the municipal solid waste
generated within its jurisdiction for ten years; and
WHEREAS, COUNTY and DISTRICT have agreed to a three year extension of the
Agreement, amending the provisions for the Initial Term, Option to Renew Calculation of
• Average Annual Inflation, and Cumulative Tonnage Targets for County and Importation
Acceptable Waste.
NOW THEREFORE, the parties hereto agree as follows:
1 Section 6.1 subparagraphs (A), (B), and (C) are deleted and replaced with the
following:
(A)Initial Term. This Agreement shall become effective, shall be in full force and
effect and shall be legally binding upon the DISTRICT and the COUNTY from the
Contract Date and shall continue in full force and effect until June 30, 2010, unless
earlier terminated in accordance with its terms, in which event the Term shall be
deemed to have expired as of the date of such termination.
(B) Option to Renew This Agreement shall be subject to renewal by mutual
agreement of the parties, on or before June 30, 2008, for an additional term of ten
years (the `Renewal Term") on the same terms and conditions as are applicable
during the Initial Term hereof. The DISTRICT shall give the County written notice
of its irrevocable election to renew this Agreement on or before June 30, 2008. If the
parties do not renew this Agreement by June 30, 2008, the Agreement shall expire on
June 30, 2010
1110 (C) Contract Rate During Renewal Term. In connection with the parties' right to
renew this Agreement for an additional ten-year term pursuant to Section 6.1(B), the
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• parties shall, on or before June 30, 2008, negotiate an applicable change to the
Contract Rate for such renewal term. In determining any revisions to the Contract
Rate to be applicable during any renewal period, in addition to the circumstances
described in Section 4.2(A), the parties may take into consideration the following
parameters, including but not limited to:
(i) actual cost of operations;
(ii) population growth;
(iii) increase or decrease in available tonnage;
(iv) economic and disposal market conditions in the Southern
California region;
(v) changes in transportation and technology
(vi) closure and expansion of nearby landfills;
(vii) capacity of the Disposal System; and
(viii) available reserves.
2. Section 4.2 (F) is deleted and replaced with the following:
(F) Calculation of Average Annual Inflation. For purposes of Section 4.2(A)(ii), the
inflation shall be calculated as the change in the Producer Price Index, Finished
Goods ("PPP'), reported by the Bureau of Labor Statistics of the United States
Department of Labor between July of the year of calculation and July 1 1997
Average annual inflation shall be deemed to exceed 4% if the ratio between the PPI
• Index for July for the year of calculation (calculated in accordance with the formula
below) and July 1997 exceeds the ratio corresponding to such year of calculation on
the table below The ratio shall be calculated in accordance with the following
formula:
(July PPI Index of Calculation Year/PPI Index for July 1997)
Year of Calculation Ratio
July 1 1997 1 0000
July 1 1998 1.0400
July 1 1999 1.0816
July 1 2000 1 1248
July 1 2001 1 1698
July 1 2002 1.2166
July 1 2003 1.2653
July 1 2004 1.3159
July 1 2005 1.3685
July 1 2006 1 4233
July 1 2007 1 4802
July 1 2008 1.5394
July 1 2009 1.6010
July 1 2010 1.6650
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• hi the event the PPI is no longer published during the term of this Agreement, such other
index identified by the Bureau of Labor Statistics or otherwise generally accepted as a
replacement for PPI shall be used for purposes of this Service Agreement.
3 APPENDIX 2 is deleted and replaced with the following:
This space intentionally left blank.
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• APPENDIX 2
Cumulative In-County Tonnage Target to be Used
for Purposes of Section 4.2 (B)
FiscalYear Tonnage Cumulative.Tonnage.
1997 1998 2,277 2,277
1998 1999 2,134 4,411
1999 2000 2,007 6,418
2000 2001 2,025 8,443
2001 2002 2,042 10,485
2002 2003 2,060 12,545
2003 2004 2,079 14,624
2004 2005 2,096 16,720
2005 2006 2,111 18,831
2006 2007 2,128 20,959
2007 2008 * 4,033 24,992
2008 2009 * 4,437 29,429
2009 2010 * 4,556 33,985
Note: Tons are expressed in thousands.
• * Fiscal years reflect the minimum tonnage necessary to support the Contract Rate.
Annual Importation Tonnage Target to be Used
for Purposes of Section 4.2 (C)
Year Fiscal Year Import Tonnage.
1 1997 1998 1,428
2 1998 1999 1,428
3 1999 2000 1,428
4 2000 2001 1,428
5 2001 2002 1,428
6 2002 2003 1,428
7 2003 2004 1,428
8 2004 2005 1,428
9 2005 2006 1,428
10 2006 2007 1,428
11 2007 2008 * 1,166
12 2008 2009 * 1,166
13 2009 2010 * 1,166
Note: Tons are expressed in thousands.
• * Fiscal years reflect the minimum tonnage necessary to support the Contract Rate.
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• 4 All other terms and conditions of the Agreement will remain unchanged and
DISTRICT agrees to comply with all terms and conditions of the Agreement.
This space intentionally left blank.
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• IN WITNESS WHEREOF the parties have executed this First Amendment to Agreement the
day and year first above written.
`COUNTY'
COUNTY OF ORANGE
Date: 7//1 AJ� By -12-i 2
Janice V Goss, Director
Integrated Waste Management Department
APPROVED AS TO FORM.
OFFICE OF THE COUNTY COUNSEL
ORANGE f / 6/0 COUNTY CALIFORNIA
Date:
C� l �(i f B f
By. � t„ j
APPROVED AS TO FORM.
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Date: int.. /01 a.00Y By �%G <?1/ Q
Alan R. Bums, Legal Counsel
Costa Mesa Sanitary District
' a
i _ 7
Date: )91 .- /d t ‘71-0411- By. , Si
Arlene Schafer, =resident
Costa Mesa Sanitary Dist •ct
Date: Thy /01 )nL1 By 4
la es Ferrvman ecretary
.sta Mesa Sanitary District
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