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04-0622_ORANGE, COUNTY OF_Waste Disposal Agreement Amd No. 1AMENDMENT NO. 1 TO WASTE DISPOSAL AGREEMENT WITH CITY OF SAN JUAN CAPISTRANO 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 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, committing the CITY to 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: 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 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 San Juan Capistrano Page 1 of 6 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 San Juan Capistrano Page 2 of 6 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. WDA Amend 1 San Juan Capistrano Page 3 of 6 APPENDIX 2 Cumulative In -County Tonnage Target to be Used for Purposes of Section 4.2 (B) 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) 1 1997-1998 1,428 2 1998-1999 1,428 3 1999-2000 1,428 4 1 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 San Juan Capistrano Page 4 of 6 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 San Juan Capistrano 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: i� By: Jaz 'ce V. Goss, Director Integrated Waste Management Department APPROVED AS TO FORM: OFFICE OF THE COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA Date: ( 4/0y Date: APPROVED AS TO FORM: Date: ATTEST Date: pC�Q WDA Amend t San Juan Capistrano M �1t By: John haw, City Attorney R. Monahan, City Clerk Page 6 of 6