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AMENDMENT NO.1
TO WASTE DISPOSAL AGREEMENT
WITH CITY OF
SANTA ANA
This Amendment No. I 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 CITY designated above (hereinafter "CITY"). The CITY is a
general law or charter city and political subdivision of the State of California.
RECITALS
WHEREAS, COUNTY and CITY entered into a Waste Disposal Agreement (hereinafter
"Agreement") on April 8, 1997, guaranteeing that CITY 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 CITY 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:
I.
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 CITY 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 CITY 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.
(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
parties shall, on or before June 30, 2008, negotiate an applicable change to the
WDA Amend 1 Santa Ana
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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:
actual cost of operations;
population growth;
increase or decrease in available tonnage;
economic and disposal market conditions in
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.
(i)
(ii)
(iii)
(iv)
the Southern
2.
Section 4.1 (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 ("PPI"), reported by the Bureau of Labor Statistics of the United States
Department of Labor between July of the year of calculation and July I, 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
July I, 1997
July 1,1998
July I, 1999
July I, 2000
July I, 2001
July I, 2002
July 1,2003
July I, 2004
July I, 2005
July I, 2006
July I, 2007
July I, 2008
July I, 2009
July I, 2010
Ratio
1.0000
1. 0400
1.0816
1.1248
1.1698
1.2166
1.2653
1.3159
1.3685
1.4233
1.4802
1.5394
1.6010
1.6650
WDA Amend 1 Santa Ana
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In 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)
~ FiscRI Year ",,"'):", I' Tonna!!e ,.'.,.'"" >): :i.iiCnmulativeToDllâlie',,'
1997 - 1998 2,277 2,277
1998 - 1999 2,134 4,411
1999 - 2000 2,007 6,418
2000 - 200 I 2,025 8,443
200 I - 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)
,f,'l):'"", IliYear',fi',", ",," 1 ,,'H\.. Fiscal ~EH ","\ I "rtD(' 'TTH0iir¡jija'~ì~q,¡HwwHL::nì':i
'm or,: 'o.nn" ~>;;i¡lj:j¡ii'I';'lFh',
I 1997 - 1998 1,428
2 1998 - 1999 1,428
3 1999 - 2000 1,428
4 2000 - 200 I 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 CITY
agrees to comply with all terms and conditions of the Agreement.
This space intentionally left blank.
WDA Amend 1 Santa Ana
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IN WITNESS WHEREOF, the parties have executed this First Amendment to Agreement the
day and year first above written.
Date:
'7 ¡t¡ !£f
APPROVED AS TO FORM:
OFFICE OF THE COUNTY COUNSEL
ORANGE COUNTY, CALIFORNIA
{;~ ht0Z'1
I / I
Date:
APPROVED AS TO FORM:
JOSEPH W. FLETCHER
City Attorney
Date:
(Yì~,? ~DOY
ATTEST:
Date: 7?J11
.:-::? ) . ¡.:;L& [7
J "
CITY OF SANTA ANA
Date:
fi4a
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Waste Disposal Agr. Amend l.doc
"COUNTY"
COUNTY OF ORANGE
By:
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Jaftice V. Goss, Director
Integrated Waste Management Department
By:
y
By:
Michael Vigliotta
Deputy City Attorney
I )
By: J~, L.¿.<'..Lct-/
Patricia E. Healy
Clerk of the Council
By:
Ut4Jav-
David N. Ream
City Manager
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