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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 pennitted by Sections 4.2(B); <br />(iv) average annual inflation prior to July 1, 2010 in excess of Ote 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), (H) 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) CounU 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 />the Disposal System; (ii) utilize Restricted Reserves described in clause (iii) of Section 4.5 to pay costs of <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 satisfactorily <br />address the shortfall in tonnage, the County shall have the right to terminate the Agreement on 60 days written <br />16 <br />Execution Copy <br />August 17, 2021 6 - 25 City of Santa Ana <br />