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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 WDA Amend 1 Costa Mesa Sanitary District Page 1 of 6 • 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 • WDA Amend 1 Costa Mesa Sanitary District Page 2 of 6 • 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. • • WDA Amend 1 Costa Mesa Sanitary District Page 3 of 6 • 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. WDA Amend 1 Costa Mesa Sanitary District Page 4 of 6 • 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. • • WDA Amend 1 Costa Mesa Sanitary District Page 5 of 6 • 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. • 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 • WDA Amend 1 Costa Mesa Sanitary District Page 6 of 6