A-1997-025 - Waste Disposal Services

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ARTICLE IV CONTRACT RATE SECTION 4.1. CHARGING AND SECURING PAYMENT OF CONTRACT RATE. The City acknowledges that the County shall have the right to charge and collect a Contract Rate for the acceptance and disposal of Controllable Waste delivered to the System by any Franchise Hauler. The Contract Rate shall be calculated and established, and may be modified, as provided in Section 4.2 hereof In addition, the City acknowledges that the County shall have the right to establish as part of the operating rules and regulations reasonable measures to secure the payment of all Contract Rates. SECTION 4.2. Contract Rate. (A) Initial Term. Effective July 1, 1997, the Contract Rate payable by each Franchise Hauler shall be $22.00 per ton, contingent on the delivery to the Disposal System of an amount of Acceptable Waste at least equal to the Cumulative Tonnage Targets identified in Appendix 2, and subject to potential adjustment necessary to reflect the circumstances set forth below: (i) increased costs incurred by the County (in excess of available insurance proceeds) due to the occurrence of one or more Uncontrollable Circumstances, including Changes in Law; (ii) average annual inflation at any point during the Term of this Agreement in excess of four per cent, compounded annually, calculated in accordance with Section 4.2 (F), (iii) costs incurred by the County (in excess of available insurance proceeds and amounts available in the Environmental Fund for such purposes) remediating environmental conditions at the Disposal System or inactive or closed disposal sites in the County, which, if uncorrected, could give rise to potential claims under CERCLA or related federal or state statutes, including costs incurred providing indemnification to any Participating City pursuant to subsection 7.3 (but not including costs of obtaining insurance pursuant to Section 3.3(F)); or (iv) tonnage shortfalls to the extent permitted by Sections 4.2(B) and 4.2(C). Prior to adjusting the Contract Rate as a result of any of the circumstances described above, the County shall utilize the following remedies in the following order of priority: (i) reduce the costs of operating the Disposal System to the extent practicable; (ii) utilize Excess Import Revenues to pay costs of the Disposal System; and (iii) utilize Unrestricted Reserves to pay costs of the Disposal System. Any adjustments to the Contract Rate permitted by this Section shall be calculated by the County to reflect the actual costs or expenses of addressing the circumstance or circumstances pursuant to which the adjustment is authorized. (B) County Acceptable Waste Shortfall. In the event that the actual amount of County Acceptable Waste delivered to the Disposal System at the end of any Contract Year is less than the Cumulative Tonnage Target for such Contract Year for County Acceptable Waste, as specified in Appendix 2, the County shall utilize the following options, in the following order of priority, in order to remedy any adverse effects of such tonnage shortfall: (i) reduce the costs of operating the Disposal System to the extent practicable; Execution Copy 19 (Revised Page)