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Agenda Packet_2025-05-20
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Agenda Packet_2025-05-20
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City Council
Date
5/20/2025
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least equal to the Cumulative Tonnage Targets identified in Appendix 2, and subject to adjustment necessary to <br />reflect the circumstances set forth in this Section 4.2: <br />i) increased costs incurred by the County (in excess of available insurance <br />proceeds) due to the occurrence of one or more Uncontrollable Circumstances, other than Changes in Law; <br />ii) costs incurred by the County (in excess of available insurance proceeds and <br />amounts available in the Environmental Fund for such purposes) remediating environmental conditions at the <br />Disposal System or inactive or closed disposal sites in the County, which, if uncorrected, could give rise to potential <br />claims under CERCLA or related federal or state statutes, including costs incurred providing indemnification to any <br />Participating City pursuant to subsection 7.3; or <br />iii) tonnage shortfalls to the extent permitted by Sections 4.2(B); <br />iv) average annual inflation prior to July 1, 2010 in excess of the levels set forth in <br />Section 4.2(H) and escalation pursuant to Section 4.2(F) ; <br />v) increased costs incurred by the County (in excess of available insurance <br />proceeds) due to the occurrence of one or more Changes in Law; or <br />vi) Capital Costs in excess of the Capital Costs at any point in time during the term <br />hereof exceeding the Cumulative Capital Costs set forth in Appendix 3. <br />Prior to adjusting the Contract Rate as a result of any of the circumstances described in clauses (i), (ii) or (iii) above, <br />the County shall utilize the following remedies in the following order of priority: <br />x) reduce the costs of operating the Disposal System to the extent practicable; and <br />y) utilize Unrestricted Reserves to pay costs of the Disposal System. <br />The County will not be required to utilize such remedies prior to adjusting the Contract Rate as a result of any of the <br />circumstances described in clauses (iv), (v) or (vi) above. <br />Any adjustments to the Contract Rate permitted by this Section shall be calculated by the County to reflect the actual <br />costs or expenses of addressing the circumstance or circumstances pursuant to which the adjustment is authorized. <br />The County agrees that it will evaluate the feasibility of long term financing for significant capital costs where <br />appropriate. <br />B) Countv Acceptable Waste Shortfall. In the event that the actual amount of County <br />Acceptable Waste delivered to the Disposal System at the end of any Contract Year is less than the Cumulative <br />Tonnage Target for such Contract Year for County Acceptable Waste, as specified in Appendix 2, the County shall <br />utilize the following options, in the following order of priority, in order to remedy any adverse effects of such <br />tonnage shortfall: <br />i) reduce the costs of operating the Disposal System to the extent practicable; <br />ii) utilize Restricted Reserves described in clause (iii) of Section 4.5 to pay costs of <br />the Disposal System; <br />iii) utilize Unrestricted Reserves to pay costs of the Disposal System; and <br />iv) adjust the Contract Rate. <br />In the event that implementation of the steps described above does not result in sufficient revenues to satisfactorilyaddresstheshortfallintonnage, the County shall have the right to terminate the Agreement on 60 days written <br />16 <br />Execution Copy <br /> <br />City Council 22 – 23 5/20/2025
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