Contract - ORCO - 1989-07-28 ADDENDUM AGREEMENT NO 2
THIS AGREEMENT is made and entered into this �S+L day of July 1989 by
and between the COSTA MESA SANITARY DISTRICT of Orange County California herein-
after referred to as 'DISTRICT' and ORCO DISPOSAL SERVICE, INC a corporation
hereinafter referred to as 'CONTRACTOR'
WINESSETH THAT
WHEREAS the parties hereto did on the 11th day of January 1979 enter
into a written agreement wherein CONTRACTOR agreed to furnish all labor material
and equipment necessary for the collection of solid waste within the boundaries of
DISTRICT and DISTRICT in consideration thereof agreed to pay the amount set forth
therein plus increases as from time to time were authorized by the Board and
which said agreement has been extended from time to time by a first addendum
agreement and
WHEREAS, by reason of the closure of a county landfill and the requirement
that CONTRACTOR go a greater distance to dispose of the solid waste of DISTRICT
and
WHEREAS by reason of said additional distance and the need for additional
trucks CONTRACTOR desires an additional payment per unit of pickup to cover said
costs and
WHEREAS the parties hereto desire to set forth their rights and obliga-
tions in connection therewith
NOW THEREFORE, for and in consideration of the covenants herein contained
performed and to be performed the parties hereto agree as follows
I
Except as provided for herein the agreement of January 11 1979 and the
addendum of May 12 1983 shall remain in full force and effect and THIS ADDENDUM
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AGREEMENT NO 2 shall be deemed to have amended so much of that agreement and
addendum as shall appear herein.
II
DISTRICT has contracted with C R. Transfer Incorporated for the exclusive
right of receiving solid waste from DISTRICT and CONTRACTOR agrees that all solid
waste picked up from DISTRICT pursuant to the contract and its addendum shall be
delivered to the facilities of C. R. Transfer Incorporated at its Stanton Cali-
fornia address provided however that in the event that a dispute arises between
DISTRICT and C R. Transfer Incorporated whereby C R. Transfer Incorporated
refuses to accept solid waste from CONTRACTOR, CONTRACTOR shall haul said solid
waste to Bee Canyon county landfill or other appropriate county landfill without
additional cost to DISTRICT
III
The term of THIS ADDENDUM AGREE ENT NO 2 shall be for a period of seven
(7) years beginning November 1 1989 and ending October 31 1996 unless sooner
terminated for cause
IV
DISTRICT contemplates a field survey to determine the actual number of
units served by CONTRACTOR and CONTRACTOR may participate in said field survey and
warrants and represents to DISTRICT that it will cooperate in the unit count which
will establish the number of units CONTRACTOR is obligated to service and for
which DISTRICT is obligated to pay
V
CONTRACTOR shall be entitled to an additional rate of One and twenty-seven
hundredths ($1 27) Dollars per unit serviced by CONTRACTOR, which said rate will
be effective beginning November 1989 and continuing for the duration hereof
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VI
Paragraph IV of the master agreement of January 11 1979 provides for
annual adjustment of CONTRACTOR s unit rate in accordance with the Consumer Price
Index as established by the U S Department of Labor Bureau of Tabor Statistics
The Consumer Price Index shall not be applicable for so much of the rate increase
as is allocated to the purchase of the three (3) trucks necessary for CONTRACTOR
to serve the DISTRICT it being agreed that of the One and twenty-seven hundredths
($1 27) Dollars increase twenty-one (21) cents per unit shall not be included in
the Consumer Price Index treatment of the unit rate established herein
VII
It is understood and agreed by and between the parties hereto that the
reasonable lifetime of the throe (3) trucks to be purchased is seven (7) years and
that at the end of seven (7) years it will be necessary for their replacement and
CONTRACTOR reserves the right to negotiate with DISTRICT for such increase as is
necessary at that time for replacement of trucks needed to continue to serve the
DISTRICT
IN WITNESS WHEREOF the parties hereto have set their hands and seals on
the day and year first above written
COSTA MESA SANITARY DISTRICT
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Pr sident
ATTEST
/ i/ ea re
Secr- ary
ORCO DISPOSAL SERVE, INC a corporation
ATTEST-
By
President
k cc
`z,, L Secretary
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