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Correspondence - OC Waste & Recycling - 2016-03-10 .Lj � �91 9r. Dylan Wright,Director e . 300 N.Flower Street,Sure 400 C' dr Santa Ana CA 92703 rx Waste&,Recycling re p.ocia d;lis. co 0 Fax: (714)874-4183 March 10, 2016 RECEIVED MAR 11 2016 Costa Mesa Sanitary District Scott Carroll, General Manager Costa Mesa Sanitary District 628 West 19th Street Costa Mesa, CA 92627 Via Electronic and Standard Mail Subject: Annual and Extraordinary Waste Disposal Agreement Contract Rate Increases Last week you received a letter notifying you of the Fiscal Year 2016-2017 disposal rate increase, calculated pursuant to the automatic annual rate adjustment formula in the Waste Disposal agreement between the County and your city. This adjustment does not include allowable increases by the County due to cumulative shortfalls in waste delivered to the disposal system by City WDA holders during the term of the agreement. As you know, OC Waste & Recycling has worked with the Orange County City Manager's Association Solid Waste Committee to negotiate an amendment to the WDAs that would avoid an extraordinary rate increase due to in-County waste tonnage shortfalls. The amendment provides for continued importation of out-of-county waste which would yield revenues to stabilize in-County disposal rates. If the amendment is not approved by all City WDA holders by the end of March 2016, OC Waste&Recycling will have no choice but to present alternative options to the Board of Supervisors to address the tonnage shortfalls, including a rate increase pursuant to Section 4.2(B) of the WDAs. We will continue to work with the Solid Waste Committee in the hope of avoiding such an increase. Should you have any questions, please contact me at 714-834-4122 or dylan.wrightCocwr.ocgov.corn. Annual and Extraordinary Waste Disposal Agreement Contract Rate Increases March 10, 2016 Page 2 Sincerely, Dylan Wrighl�� -'.? cc: Rick Otto, City of Orange City Manager Chairman OCCMA Solid Waste Committee Frank Kim, CEO Mark Denny, COO Shaw Lin, OC Waste & Recycling