HomeMy WebLinkAboutAgreement A-17-572-1 with Western Solid Waste.pdf1
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AMENDMENT NO. 1 TO AMENDED AND SUCCESSOR EXCLUSIVE SERVICE AREA
AGREEMENT NO. 17-572 FOR SOLID WASTE, RECYCLABLE MATERIALS, GREEN
WASTE AND ORGANIC MATERIALS SERVICES
THIS AMENDMENT NO. 1 TO AMENDED AND SUCCESSOR EXCLUSIVE SERVICE
AREA AGREEMENT 17-572 (“Amendment No. 1”) is made and entered into in Fresno,
California, on this _____ day of August, 2019, between the County of Fresno, a political
subdivision of the State of California, (hereinafter called "COUNTY"), and Western Solid
Waste, a sole proprietorship owned and operated by Fred Dow (hereinafter called
"CONTRACTOR"), with reference to the following facts.
WITNESSETH:
WHEREAS the COUNTY and CONTRACTOR entered into an Exclusive Service Area
Program Agreement (“Agreement”) that was executed on October 31, 2017; and
WHEREAS, the CONTRACTOR is required to divert residential and commercial Solid
Waste from landfilling; and
WHEREAS, the CONTRACTOR has requested that the COUNTY adopt a Recycling
Surcharge on the maximum rates allowed for CONTRACTOR to charge for services under th e
Agreement to cover an increase in costs incurred as a result of unforeseen circumstances
attributable to a combination of bans, tariffs and increasingly strict regulations governing the
use of discarded materials recycled in China; and
WHEREAS, the purpose of this Amendment No. 1 is to provide temporary mitigation of
those costs, for an interim period pending the development, through cooperation between
COUNTY staff and representatives of the Exclusive Service Area Program waste haulers
(including CONTRACTOR), of an appropriately indexed Recycling Surcharge process, as
hereinafter set forth.
NOW, THEREFORE, in consideration of the foregoing premises and the mutual
promises herein, the COUNTY and the CONTRACTOR agree as follows:
1.CONTRACTOR may charge for services under the Agreement, as hereby
Resolution No. 17-572-119-0782
6th
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amended, in accordance with the Maximum Rate Schedules listed in the
attached Revised Exhibit D from October 1, 2019 through June 30, 2020.
2. The Maximum Rate Schedules, Exhibit D hereto, include a fixed Recycling
Surcharge component of 1.45% that is listed therein as an overlay surcharge,
and that will not be subject to (and thus will be expressly excepted from the
applicability of) the annual CPI adjustment provided for in Paragraph 7.2.C of the
Agreement.
3. CONTRACTOR shall give notice to its Customers of its initiation of the rate
increase resulting from implementation of the Recycling Surcharge component in
accordance with the introductory paragraph of Section 7.3 of the Agreement
(which immediately precedes Section 7.3, Paragraph A of the Agreement).
4. The authorization herein provided by this Amendment No. 1 for CONTRACTOR
to charge the Recycling Surcharge component provided for herein will
commence on October 1, 2019, and unless it is expressly superseded by a
subsequent amendment to the Agreement, such authorization will expire on June
30, 2020. COUNTY and CONTRACTOR agree to work together, from and after
the date of execution of this Amendment No. 1, to develop an appropriately
indexed Recycling Surcharge process that will more accurately address both
positive and negative fluctuations in the market value of recyclables collected
within the Exclusive Service Area Program territories over a more extended
period of time. It is anticipated that once it has been cooperatively developed,
such Recycling Surcharge process would be presented to the COUNTY’s Board
of Supervisors at the earliest practicable date, as a proposed amendment to the
Agreement to supersede the provisions of this Amendment No. 1.
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