Attachment A - Waste Infrastructure System Enterprise Agreement — Newport Beach City Council, March 24, 2026

WASTE INFRASTRUCTURE SYSTEM ENTERPRISE AGREEMENT
("WISE AGREEMENT")
Between

THE COUNTY OF ORANGE, CALIFORNIA
and
the

CITY OF NEWPORT BEACH
Dated March 24, 2026
County AuthorizationDate: CityAuthorizationDate:

March 24, 2026
County Notice Address: CityNotice Address:

City Manager
Cityof Newport Beach
100 Civic Center Drive
Newport Beach CA 92660
Director
OC Waste & Recycling
601 N. Ross Street5`hFloor
Santa Ana, CA 92701
Attachment A

TABLE OF CONTENTS
Paee

ARTICLE I DEFINITIONS

AND INTERPRETATION
Section 1.1
Section 1.2
DEFINITIONS .................................................................................................................... ..............2 INTERPRETATION ................................................................................................................. ........7

ARTICLE II

REPRESENTATIONS AND WARRANTIES
Section 2.1
Section 2.2
REPRESENTATIONS AND WARRANTIES OF THE CITY ........................................................8 REPRESENTATIONS AND WARRANTIES OF THE COUNTY .................................................9

ARTICLE III

DELIVERY AND ACCEPTANCE OF WASTE AND PROVISION OF DISPOSAL SERVICE Section 3.1 DELIVERY OF WASTE .................................................................................................. ................9 Section 3.2 PROVISION OF DISPOSAL SERVICES BY THE COUNTY .....................................................11 Section 3.3 COUNTY RIGHT TO REFUSE WASTE ......................................................................................12 Section 3.4 UNINCORPORATED AREA ACCEPTABLE WASTE ...............................................................13 Section 3.5 MISCELLANEOUS OPERATIONAL MATTERS .......................................................................14 Section 3.6 OTHER USERS OF THE DISPOSAL SYSTEM ..........................................................................14 Section 3.7 COUNTY PROVISION OF WASTE DIVERSION SERVICES ...................................................15

ARTICLE IV

CONTRACT RATE
Section 4.1 CHARGING AND SECURING PAYMENT OF CONTRACT RATE ......................................... 1515 Section 4.2 CONTRACT RATE .................................................................................................................. ......15 Section 4.3 RESPONSIBILITY FOR PAYMENT OF THE CONTRACT RATE ........................................... 2121 Section 4.4 BILLING OF THE CONTRACT RATE ........................................................................................21 Section 4.5 RESTRICTED RESERVES ...........................................................................................................21 Section 4.6 AUDITED FINANCIAL STATEMENTS .....................................................................................22 Section 4.7 ANNUAL UPDATE OF TEN-YEAR FINANCIAL PROJECTION ............................................. 2222

ARTICLE V

BREACH, ENFORCEMENT AND TERMINATION
Section 5.1 BREACH ......................................................................................................................... ............... 23 Section 5.2 CITY CONVENIENCE TERMINATION ..................................................................................... 23 Section 5.3 TERMINATION .................................................................................................................... .........23 Section 5.4 NO WAIVERS ..................................................................................................................... ..........24 Section 5.5 FORUM FOR DISPUTE RESOLUTION ......................................................................................24

ARTICLE VI
TERM
Section 6.1 EFFECTIVE DATE AND TERM .................................................................................................. 24 Section 6.2 COMMENCEMENT DATE ........................................................................................................... 25

ARTICLE VII

GENERAL PROVISIONS
Section 7.1 OPERATION AND MAINTENANCE OF THE DISPOSAL SYSTEM ...................................... 26 Section 7.2 UNCONTROLLABLE CIRCUMSTANCES GENERALLY ........................................................ 26 Section 7.3 INDEMNIFICATION ................................................................................................................ .... 27 Section 7.4 RELATIONSHIP OF THE PARTIES ............................................................................................ 27 Section 7.5 LIMITED RECOURSE ............................................................................................................... ... 27 Section 7.6 PRE-EXISTING RIGHTS AND LIABILITIES ............................................................................ 27 Section 7.7 NO VESTED RIGHTS ............................................................................................................... .... 28 Section 7.8 LIABILITY FOR COLLECTION, TRANSPORTATION AND PROCESSING ......................... 28 Section 7.9 NO CONSEQUENTIAL OR PUNITIVE DAMAGES .................................................................. 28 Section 7.10 AMENDMENTS ..................................................................................................................... ....... 28 Section 7.11 NOTICE OF LITIGATION ........................................................................................................... . 28 Section 7.12 FURTHER ASSURANCES ........................................................................................................... 28 Section 7.13 ASSIGNMENT OF AGREEMENT ............................................................................................... 28 Section 7.14 INTEREST ON OVERDUE OBLIGATIONS ............................................................................... 28 Section 7.15 BINDING EFFECT ................................................................................................................. ....... 28 Section 7.16 NOTICES ........................................................................................................................ ............... 28 APPENDIX 1

ESTIMATED ANNUAL TONNAGE
APPENDIX 2

CUMULATIVE TONNAGE
APPENDIX 3

CUMULATIVE CAPITAL COSTS
APPENDIX 4

FRANCHISE HAULER ACKNOWLEDGEMENT
APPENDIX 5

ORGANIC SERVICES AGREEMENT

WASTE INFRASTRUCTURE SYSTEM ENTERPRISE AGREEMENT
THIS WASTE INFRASTRUCTURE SYSTEM ENTERPRISE AGREEMENT ("WISE Agreement" or "Agreement" areused interchangeably)ismade and datedasofthedateindicatedon thecoverpage hereofbetween theCounty ofOrange,a politicalsubdivisionoftheStateofCalifornia(the"County"),and thecity,specialdistrict,or sanitarydistrictdesignatedon thecoverpage of thisAgreement (the"City").County and City may hereinafterbe referredtosingularlyas"Party"or collectivelyas"Parties.".

RECITALS
The County owns, manages and operatesa Waste InfrastructureSystem to manage municipal and solidwaste generatedwithintheCounty of Orange or importedfrom outsidetheCounty pursuanttocontractualagreements.The Waste InfrastructureSystem collectivelyincludesactiveClassIIIsanitarylandfills("County Landfills"),resource recovery,recyclingand organicsprograms, infrastructureand operations,closedlandfills,and regionalhousehold hazardous waste collection centers and other waste management relatedsystemsas may be deemed necessaryby the County.

The Countyisalsoresponsibleforthelong-termmanagement oftwenty(20)closedlandfillsasrequiredunder ApplicableLaw.

County Landfillsareused forthemanagement ofmunicipalsolidwastepursuanttolegislationincludingbut notlimitedtotheCaliforniaIntegratedWaste Management Act of 1989 (Division30 of theCaliforniaPublicResources Code) (the"Act") and the Short-livedClimate PollutantsReductionAct ("SB 1383").County Landfillsarealsosubject to otherStateand federalregulationsdesignedtoensurethatlandfilloperationsminimize theimpactstopublichealth and safetyand theenvironment.

Pursuant to Resolution,the County establishedthe Waste Management EnterpriseFund pursuant to Government Code §25261 to ensure that allcosts associatedwith the operationand management of the Waste InfrastructureSystem arefmancedby chargesimposedforservicesprovidedby theDepartmentand arenotfunded by taxrevenue or theCounty General Fund.

The City,intheexerciseofitspolicepower,itspowers under theAct,and otherApplicableLaw, has entered intoa franchiseor otheragreementwith or issuedpermitsor licensesto one or more privatehaulersforthe collection, recycling,diversionand disposalof municipalsolidwaste generatedwithin the City.

A significantportionof municipalsolidwastegeneratedwithintheCityhistoricallyhas been and currentlyis deliveredby suchhaulerorhaulerstotheCounty fordisposalintheDisposalSystem.

Since 1997, the City and the County have providedforthemanagement of municipalsolidwaste through Waste DisposalAgreements ("WDAs"), whereintheCounty agreedtoprovidedisposalcapacityforwaste generated inthe City,and theCity agreedto deliveror cause thedeliveryof waste generatedintheCitytotheDisposalSystem, as more specificallysetforthin,and subjectto theterms and conditionsof the WDAs.

Startingin approximately2014, theLegislatureof theStateof Californiapassedseveralpiecesof legislation ("OrganicsLegislation")thatrequiresignificantreductionsin the disposalof Organic Waste. The purpose of the OrganicsLegislationistomandate organicsrecyclingand curtailtheimpactsofclimatechange by reducinggreenhouse gas emissionssuch as methane. In thisregard,the decomposition of organicmaterialin the State'slandfillswas identifiedas a significantsourceof methane thatcould be reduced.

The County has developed an Organics Infrastructurethatiscomprised of organicprocessingfacilitiesto receiveand processOrganic Waste to supportthe State'sOrganic Legislationgoals,promote localrecycling,assist localjurisdictionsin meeting theirorganicdiversionrequirementsand correspondinglyconserve capacityin the DisposalSystem and isofferinginterestedCitiestheoptionofparticipatingintheCounty providedOrganicProcessing Servicespursuanttoa separateOrganicServicesAgreement ("OSA") as providedinAppendix 5.

In theireffortto continuethe conceptsand purposes outlinedin the WDAs and respond to Organics Legislation,theCityand theCounty desiretoenterintothisWaste InfrastructureSystem EnterpriseAgreement ("WISE Agreement" or "Agreement"), on the terms and conditionssetforthherein.The County and Cityacknowledgethatthe currently operative WDA shall remain in full force and effectuntilitsexpirationor the WISE Agreement Commencement Date, whichever comes first.

The City has determined thatthe executionof thisAgreement by theCitywillservethepublichealth,safety and welfareof theCityby providingdisposalratestability,predictableand reliablelong-termdisposalservice,and the continuationof sound environmentalmanagement.

The County has determinedthattheexecutionby theCounty of thisAgreement willservethepublichealth, safetyand welfareby providinga stable,predictableand reliablesupply of municipal solidwaste and the resulting servicepayment revenue totheWaste InfrastructureSystem,therebyenablingtheCounty toplan,manage, operateand financeimprovements to the Waste InfrastructureSystem on a prudent and sound long term, businesslikebasis consistentwith itslegaland regulatoryobligationstotheStateand Federalgovernment.

OfficialactionapprovingthisAgreement and determiningitto be in the publicinterestand authorizingits executionand deliverywas duly taken by the County on the County authorizationdate indicatedon the cover page hereof.

OfficialactionapprovingthisAgreement and determiningitto be in thepublicinterestand authorizingits executionand deliverywas duly takenby theCityon theCity authorizationdateindicatedon thecoverpage hereof.

Itis,therefore,agreed as follows:

ARTICLE I DEFINITIONS AND

INTERPRETATION
SECTION 1.1 DEFINITIONS. As used inthisAgreement, thefollowingtermsshallhave themeanings set forth below.
"Acceptable Waste" means allgarbage,refuse,rubbish,Organic Waste and othermaterialsand substances discardedorrejectedasbeingspent,useless,worthlessor inexcesstotheowners atthetime of such discardor rejection and which are normally disposed of by or collectedfrom residential(singlefamilyand multi-family),commercial, industrial,governmental and institutionalestablishmentsand which are acceptableat Class III landfillsunder ApplicableLaw.
"Act" means AB 939 theCaliforniaIntegratedWaste Management Act of 1989 (Division30 of theCalifornia PublicResourcesCode),as amended, supplemented,supersededand replacedfrom time totime. "Agreement" means thisWaste InfrastructureSystem EnterpriseAgreement ("WISE Agreement") between theCounty and theCity as thesame may be amended or modified from time to time in accordance herewith. "Appendix" means an appendix to thisAgreement, as the same may be amended or modified from time to time in accordance with the terms hereof
"ApplicableLaw" means the Act, Organics Legislation,the Orange County Code of Ordinances,CERCLA, RCRA, CEQA, any Legal Entitlementand any federalor Staterule,regulation,requirement,guideline,permit,action, determinationor orderof any Governmental Body havingjurisdiction,applicablefrom time totimetothesiting,design, permitting,acquisition,construction,equipping,financing,ownership,possession,operationor maintenance of the Waste InfrastructureSystem,and thetransfer,handling,transportationand disposalofAcceptableWaste, Unacceptable Waste, or any othertransactionor mattercontemplatedhereby (includingany of theforegoingwhich concernhealth, safety,fire,environmentalprotection,mitigationmonitoringplansand buildingcodes). "CaiRecycle"means theCaliforniaDepartmentofResourcesRecyclingand Recovery,which isa branch of the CaliforniaEnvironmentalProtectionAgency, and any agency,departmentorotherGovernmentalBody which succeeds to the dutiesand powers thereof.CalRecycle overseestheState'swastemanagement and wastereductionprograms.

CalRecyclewas establishedin 2010 to replacethe CaliforniaIntegratedWaste Management Board and isresponsible forthe enforcementof legislationand regulationsand diversionrequirementsapplicableto the Waste Infrastructure System.
"CapitalCosts" means allcosts of the Waste InfrastructureSystem thatare classifiedas capitalcostsfor purposesof thebudgetof theDepartment inaccordancewithproceduresestablishedby theCounty ofOrange Auditor- Controllerincompliance with theCaliforniaStateController'sManual, includingbutnot limitedtoallof thecategories of costsof the Waste InfrastructureSystem includingbut not limitedto "Buildingsand Improvements, and Infrastructure"(ObjectCode 4200),"Equipment"(ObjectCode 4000-4040)and "Intangible"(ObjectCode 4250-4299) intheCounty ofOrange - ChartofAccounts,orany successoraccountingorreportingsystemutilizedby theCounty. "CEQA" means the CaliforniaEnvironmental Quality Act, codified in CaliforniaPublic Resources. Code Section21000 etseq.as amended or superseded,and theregulationspromulgated thereunder. "CERCLA" means theComprehensive EnvironmentalResponse,Compensation and LiabilityAct,42 U.S.C.

Section9601 etseq.,as amended or superseded,and theregulationspromulgated thereunder. "Change inLaw" means any ofthefollowingeventsorconditionswhich has a materialand adverse effecton theperformanceby thepartiesoftheirrespectiveobligationsunder thisAgreement (exceptforpayment obligations), or on thesiting,design,permitting,acquisition,construction,equipping,financing,ownership,possession,operation ormaintenanceof theWaste InfrastructureSystem or othermatterstowhich ApplicableLaw applies:
(1) theenactment,adoption,promulgation,issuance,materialmodificationor writtenchange in administrativeor judicialinterpretationon or aftertheCommencement Date of any ApplicableLaw (otherthanApplicableLaw enactedby theCounty);or
(2) theorderorjudgment of any Governmental Body (otherthantheCounty),on or aftertheCommencement Date, to theextentsuch orderorjudgment isnot theresultof willfulor negligentaction,erroror omission or lack of reasonablediligenceof the County or of theCity,whichever isassertingtheoccurrenceof a Change inLaw; provided,however, thatthecontestingin good faithor the failureingood faithto contestany such orderor judgment shallnot constituteor be construedas such a willfulor negligentaction,erroror omission or lack of reasonablediligence;or
(3) the denialof an applicationfor,delay in the review,issuanceor renewal of,or suspension,termination, interruption,impositionof a new ormore stringentconditioninconnectionwith theissuance,renewal or failure of issuance or renewal on or after the Commencement Date of any Legal Entitlementto the extentthatsuch denial,delay,suspension,termination,interruption,impositionor failuremateriallyand adverselyinterferes with theperformance of thisAgreement, ifand to the extentthatsuch denial,delay,suspension,termination, interruption,impositionor failureisnot the resultof willfulor negligentaction,erroror omission or a lack of reasonablediligenceof the County or of the City,whichever isassertingtheoccurrenceof a Change in Law; provided,however thatthecontestingingood faithor thefailureingood faithtocontestany such denial,delay, suspension,termination,interruption,impositionor failureshallnot be construedas such a willfulor negligent action,erroror omission or lackof reasonablediligence;or (4) any new or revisedrequirementsor feesrelatingto the funding or provisionof Waste InfrastructureServices, includingbut not limitedto,IntegratedWaste Management Act Fees, Host Fees, regulationsfor disposal operations,organicsprocessingand diversion,recyclinginitiativesor activitiesassociatedwith theremediation, closure,fundingor monitoringof closedlandfillswith respecttofacilitiescomprisingtheWaste Infrastructure System, or facilitieswhich the County previouslyutilizedto provide waste disposal,transfer,recycling, processingor otherwaste relatedactivities.
"City" means, as applicable,the City (generallaw, charteror other),Special Districtor SanitaryDistrict designatedon thecoverpage of thisAgreement and partytothisAgreement. "CityAcceptableWaste" means allAcceptableWaste which was originallydiscardedby thefirstgenerator thereofwithinthegeographicallimitsof theCity,and Residue from theforegoingwherever produced,whether within or outsidethe City (orTonnage equivalenciesof such Residues,as and to the extentprovidedin subsection3.1(D) hereof).
"Consumer Price Index" or "CPP" means a blend of the followingtwo indexesbased on the following percentageof each: 60% of theCPI shallbe comprisedof theConsumer PriceIndexpublishedby theBureau of Labor Statistics for All Urban Consumers: Water and Sewer and Trash CollectionServicesin U.S. City Average (CUSR0000EHG); and,40% of theCPI shallbe comprisedof theConsumer PriceIndex forAll Urban Consumers, not seasonallyadjusted,allitemsindex (CPI-U) - AllitemsinLos Angeles-Long Beach-Anaheim (CUURS49ASA0).

In theeventeitherof theforgoingindexesisno longerpublishedduringtheterm of thisAgreement, such otherindex identifiedby theBureau of Labor Statisticsas a replacementor otherwisegenerallyacceptedas a replacementshallbe used forpurposesof thisAgreement; and,intheabsencethereof,theOrange County Board of Supervisorsshallselect an index thatitdeterminesmost closelyreflectstheforgoingand bestimplementstheintentofthisAgreement. "Commencement Date" means thedateon which theobligationsof thepartiesheretocommence, established as provided in Section6.2(B)hereof.
"Contract Date" means the firstdate on which this Agreement has been executedby both partieshereto. "ContractRate" has themeaning specifiedinSection4.2 hereof "ContractYear" means the fiscalyear commencing on July 1 in any year and ending on June 30 of the followingyear.
"ControllableWaste" means allCity Acceptable Waste with respectto which the City has the legalor contractualabilityto determinethedisposallocationthereforand which is:
(1) Non-Recycled CityAcceptableWaste;
(2) not generatedfrom the operationsof the Governmental Bodies which, under Applicable Law, have theindependentpower toarrangeforthedisposalof thewastetheygenerate;and (3) collectedand hauledby FranchiseHaulers.
"County" means the County of Orange, a politicalsubdivisionof the Stateof Californiaand party to this Agreement.
"County Landfills"means allactiveClass IIIsanitarylandfillslocatedwithin the County of Orange and operatedby theDepartment. At the time of execution,County Landfillsconsistof the Olinda Alpha Landfilllocated in Brea, California,the Frank R. Bowerman Landfill locatedin Irvine,California,and the Prima Deshecha Landfill locatedin San Juan Capistrano,California.(Note: The currentestimatedclosuredatefortheOlinda Alpha Landfillis 2036 as specifiedinitsSolidWaste FacilityPermit.Throughout theterm of thisAgreement, County reservestheright toreduce,continue,expand,or ceasealloperationattheOlinda Alpha Landfillatitssolediscretion.) "County Plan"means theintegratedwastemanagement plan of theCounty approved by CalRecycle pursuant to the Act as in effect from time to time.
"County AcceptableWaste" means AcceptableWaste generatedin the County. "County-wide Recycling Services"has themeaning setforthin subsection3.7(A)hereof. "Cumulative Tonnage Target"forany given ContractYear means theamount specifiedinAppendix 2 hereto with respectto such ContractYear.
"Department" means OC Waste & Recycling,and any agency,departmentorotherGovernmental Body which succeedstothedutiesand powers thereof.
"DesignatedFacility"means thelandfillor otherCounty facilitythattheDepartment directsor assignsCity FranchiseHaulersto deliverCityAcceptableWaste.
"Director"means theDirectorofOC Waste & Recycling.
"DisposalServices"means thesolidwastedisposaland otherservicestobe providedby theCounty pursuant totheServiceCovenant and as otherwiseprovidedinthisAgreement. "DisposalSystem" means theWaste InfrastructureSystem which includessolidwaste disposaloperationsat activelandfills;Organics Infrastructure;regionalHousehold Hazardous Waste CollectionCenters;and other waste management relatedsystemsdeemed necessaryby theCounty, as well as services,such as post-closuremaintenance and otheractivities,atclosedlandfillsformerlyoperatedby theCounty, as appropriateunder ApplicableLaw. "EnvironmentalFund" means the fund or funds held by the County to pay unanticipatedcosts of environmentalmitigation,remediationor liability.
"FranchiseHauler" means any hauleror collectorwho providesAcceptable Waste collectionserviceswithin theCitypursuantto,orunder authoritygrantedby, a permit,contract,franchiseor otheragreement with the City.The term FranchiseHauler includestheCityitselfifAcceptableWaste collectionand transportationservicesareprovided directlyby City operatedmunicipalcollectionservice.
"FullCost Recovery" means allfacetsof Department costsand responsibilitiesincluding,but not limitedto; operation,maintenance and management of the Waste InfrastructureSystem, laborand equipment, capitalprojects, environmental monitoring and mitigation,siteclosure,legal and regulatorycompliance, long-term post-closure maintenance,remediationcosts,planning for contingenciesassociatedwith the County's long-term liabilityand maintainingadequatefinancialreserves.
"Governmental Body" means any federal,State,county,cityor regionallegislative,executive,judicialor othergovernmentalboard,agency,authority,commission,administration,courtor otherbody, or any officerthereof actingwithinthescope of hisor her authority.
"Hazardous Material" or "Hazardous Substance" has the meaning given such term in CERCLA, the Carpenter-Presley-TannerHazardous SubstanceAccount Act (CaliforniaHealth and SafetyCode Section§78000 et seq.),and Titles26 and 27 of theCaliforniaCode of Regulationsand otherregulationspromulgated thereunder. "Hazardous Waste" means (a) any waste which by reason of itsquality,concentration,composition or physical,chemical or infectiouscharacteristicsmay do eitherof thefollowing:cause,or significantlycontributeto,an increasein mortalityor an increasein seriousirreversible,or incapacitatingreversible,illness,or pose a substantial threatorpotentialhazardtohuman healthor theenvironment,or any waste which isdefinedorregulatedas a hazardous waste, toxicsubstance,hazardous chemical substance ormixture,or asbestosunderApplicableLaw, as amended from time to time including,but not limitedto:(1) the Resource Conservation and Recovery Act and the regulations containedin 40 CFR Parts260-281; (2)theToxic SubstancesControl Act (15 U.S.C. Sections2601 etseq.)and the regulationscontainedin 40 CFR Parts761-766; (3)the CaliforniaHealth and Safety Code, Section25117 (West 1992 & Supp. 1996);(4)the CaliforniaPublicResources Code, Section40141 (West 1996);and (5)futureadditional or substituteApplicable Law pertainingto the identification,treatment,storageor disposalof toxicsubstancesor hazardous wastes;or (b)radioactivematerialswhich aresource,specialnuclearor by-productmaterialas definedby theAtomic Energy Act of 1954 (42 U.S.C. Section2011 etseq.)and theregulationscontainedin 10 CFR Part40. The terms Hazardous Waste, Hazardous Material or Hazardous Substanceshallbe used interchangeablyinthisAgreement when not referringto specificApplicableLaw.
"Host Fee" means the amount paid pursuantto Cooperative Agreements, referredto in Section1.2(I)of this Agreement, to compensate the citiesidentifiedin Section1.2(I)("HostCities")forcostsor impactsincurredby Host Citieswhich might be associatedwith County Landfillsdue to theirlocationwithinHost City boundaries,and not alreadysubstantiallyavoided or mitigatedthrough the identificationand adoption of ProjectDesign Feature and MitigationMeasures.
"ImportedAcceptableWaste" means AcceptableWaste thatisgeneratedoutsideofthegeographicalboundaries of theCounty and deliveredto theWaste InfrastructureSystem. "ImportationAgreement" means an agreement between the County and any publicor privateentityforthe deliveryand acceptanceofImportedAcceptableWaste pursuant to contract. "Independent Haulers" means those waste collection/haulercompanies primarilyengaged as a principal businessinthecollectionand transportationofmunicipalsolidwastegeneratedintheCounty ofOrange which are not obligatedto deliverCounty AcceptableWaste to the Waste InfrastructureSystem pursuantto a franchise,contract, permitor otherauthorizationwith a CityintheCounty.
"InitialTerm" has themeaning specifiedinSection6.1(A) hereof. "Legal Entitlement"means allpermits,licenses,approvals,authorizations,consents and entitlementsof whateverkindand however describedwhich arerequiredunder ApplicableLaw tobe obtainedor maintainedby any personwithrespecttotheWaste InfrastructureSystem or theperformanceof any obligationunder thisAgreement or thematterscovered hereby.
"LegalProceeding"means everyaction,suit,litigation,arbitration,administrativeor regulatoryproceeding, and otherlegalorequitableproceedinghavinga bearingupon thisAgreement. "Loss-and-Expense"means any and allloss,liability,obligation,damage, delay,penalty,judgment,deposit, cost,expense,claim,demand, charge,tax,or expense,includingallfeesand costs. "MRF Fines"mean undersizedor pulverizedmaterialconsistingof small fractionsof waste thatarecreated duringtherecyclingprocessasMaterialRecovery Facilities. "Net ImportRevenues" has themeaning ascribedtheretoin Section3.6(F). "Non-Recycled City Acceptable Waste" means all City Acceptable Waste other than Recycled City Acceptable Waste.
"OC Waste & Recycling EnterpriseFund" means the waste management enterprisefund establishedand managed by theCounty pursuanttoSection25261 of theGovernment Code separatefrom itsotherfundsand accounts forreceiptsand disbursementsin connectionwith theWaste InfrastructureSystem. "OrganicsInfrastructure"means organicprocessingfacilitiesdesignedtoreceiveand processOrganic Waste to supporttheState'sOrganic Legislationgoals,promote localrecycling,and/orassistlocaljurisdictionsin meeting theirorganicdiversionrequirementswhich are utilizedby interestedCitiesin connectionwith theirparticipatingin County-providedOrganic ProcessingServicespursuantto a separateOrganic ServicesAgreement. "OrganicsLegislation"means organicsrecyclinglegislationincludingAB 1594,AB 1826,SB 1383 and any futurelegislationpertainingtothemanagement and diversionof Organic Waste. "OrganicsProcessingServices"means theservicesprovidedby County to Citiesthatchoose to enterintothe Organic ServicesAgreement provided inAppendix 5.
"OrganicsServicesAgreement" ("OSA") means thatseparateagreement (asprovided inAppendix 5)between County and interestedCities,whereby the County agreesto provide Organic Processing Servicesto interestedCities pursuant to theterms of the OSA.
"Organic Waste" means solidwastescontainingmaterialoriginatedfrom livingorganismsand theirmetabolic waste productsincluding,but not limitedto,food,green material,landscapeand pruning waste,organictextilesand carpets,lumber,wood, paperproducts,printingand writingpaper,manure, biosolids,digestate,and sludgesas defined inTitle14 of theCaliforniaCode of Regulations,Section18982(a)(46). "Overdue Rate" means themaximum rateof interestpermittedby thelaws of the State,ifapplicable,or the primerateestablishedfrom timetotimeby theBank ofAmerica,N.A. oritssuccessorsand assigns,plus2%, whichever is lower.
"ParticipatingCity"means any Cityexecutinga WISE Agreement inaccordancewith Section3.6(A)hereof and meeting allrequisiteconditionstotheCommencement Date thereof. "ParticipationThreshold"means the point at which the percentageof the County's AcceptableWaste attributabletoParticipatingCitieswhich have executedand deliveredAgreementsshallexceed50% percent(usingthe percentageratesattributedtosuchParticipatingCitiesinAppendix 1). "PostedDisposalRate"means thepertontippingfeechargedby theCounty forthedisposalof solidwaste at theDisposalSystem by partieswhich arenotentitledtodisposalserviceattheContractRatepursuanttothisAgreement orothercontractualarrangement.
"ProhibitedMedicalWaste" means any medicalorinfectiouswasteprohibitedorrestrictedunderApplicable Law from beingreceivedby ordisposedattheDisposalSystem. "QualifiedHousehold Hazardous Waste" means waste materialsdetermined by local,State,and federal regulationtobe:
(1) Of a naturethattheymust be listedas hazardousinStatestatutesand regulations; (2) Toxic/ignitable/corrosive/reactive;and
(3) Carcinogenic/mutagenic/teratogenic;
which are discardedfrom householdsas opposed to businesses.QualifiedHousehold Hazardous Waste shallnot includeUnacceptableWaste.
"Recycled City Acceptable Waste" means any otherwise ControllableWaste which is separatedfrom AcceptableWaste by thegeneratorthereofor by processingand which is"recycled"withinthe meaning of Section 40180 of the Public Resources Code.
"Renewal Term" has themeaning specifiedinSubsection6.1(C)hereof. "Residue"means any materialremainingfrom the processing,by any means and to any extent,of City AcceptableWaste or Recycled CityAcceptableWaste; provided,however, thatResidue shallnot includeminimal amounts of materialremainingaftersuch processing(which minimal amounts shallin no event exceed 10% of the amount of suchCityAcceptableWaste orRecycledCityAcceptableWaste priorto processing). "Resource Conservationand Recovery Act" or "RCRA" means theResource Conservationand Recovery Act, 42 U.S.C. Section6901 etseq.,as amended and superseded. "RestrictedReserves"has themeaning specifiedin Section4.5. "SanitaryDistricts"means thesanitarydistrictsin theCounty formed pursuanttotheSanitaryDistrictAct of 1923,codifiedin CaliforniaHealth & SafetyCode Section6400 etseq.,as amended, supplemented,supersededand replacedfrom time to time.
"Self-HauledWaste" means City Acceptable Waste and City Acceptable Organic Waste collectedand hauled by Self-Haulers.
"Self-Hauler"means any person not engaged commercially in waste haulage who collectsand hauls AcceptableWaste generatedfrom residentialor businessactivitiesconducted by such person. "Service Coordinator" means the service coordinator foreitherpartydesignatedpursuanttosubsection3.5(C) hereof.
"ServiceCovenant" means thecovenantsand agreementsof theCounty setforthin Sections3.2 and 3.3hereof. "SpecialDistrict"means publicagenciescreatedby a Governmental Body to provide one or more specific servicesto a community, such as but not limitedto water,sewer,refuse,parks and recreation,fireprotection,pest abatement, etc.
"Source-SeparatedHousehold Hazardous Waste" means QualifiedHousehold Hazardous Waste which has been segregatedfrom AcceptableWaste originatingorgeneratedwithinthegeographicaljurisdictionof theCity atthe source or locationof generation.
"Source-SeparatedHousehold Hazardous Waste Disposal System" means the collectioncenters,facilities, contractsand otherarrangementsowned oradministeredby theCounty forthereceipt,handlingand disposalof Source- Separated Household Hazardous Waste.
"State" means the State of California.
"Term" shallmean theterm of thisAgreement.
"Tod" means a "shortton"of two thousand(2,000)pounds.
"TransferStation"means any materialsrecoveryfacility,composting facility,intermediateprocessingfacility, recyclingcenter,transferstationorotherwastehandlingor management facilityto which solidwaste collectedforthe CityisdeliveredforprocessingbeforereceiptintheWaste InfrastructureSystem. "Unacceptable Waste" means Hazardous Material;Hazardous Waste; Hazardous Substances; Prohibited Medical Waste; Qualified Household Hazardous Waste separatedfrom Acceptable Waste; explosives,ordnance, highlyflammable substances,and noxious materialsand lead-acidbatteries(exceptifdeliveredinminimal quantities); drums and closedcontainers;liquidwaste,oil,human wastes;machinery and equipment from commercial or industrial sources,such as hardened gears,shafts,motor vehiclesor major components thereof,agriculturalequipment,trailers, marine vesselsand steelcable;hot loads;and any waste which the Waste InfrastructureSystem isprohibitedfrom receivingunder ApplicableLaw.
"UncontrollableCircumstance"means any act,eventor conditionaffectingthe Waste InfrastructureSystem, the County, the City,or any of theirFranchiseHaulers,contractorsor suppliersto the extentthatitmateriallyand adverselyaffectsthe abilityof eitherparty to perform any obligationunder the Agreement (exceptfor payment obligations),ifsuch act,eventor conditionisbeyond the reasonablecontrolof and isnot alsothe resultof the willful or negligentact,erroror omission or failureto exercisereasonablediligenceon thepartof thepartyrelyingthereonas justificationfor not performing an obligationor complying with any conditionrequired of such party under the Agreement; provided,however, thatthe contestingin good faithor the failurein good faithto contestsuch actionor inactionshallnot be construedas willfulor negligentactionor a lackof reasonablediligenceof eitherparty.Examples of Uncontrollable Circumstances are:
(1) an actof God, landslide,lightning,earthquake,fire,explosion,flood,sabotageor similar occurrence,actsof a publicenemy, extortion,war, blockade or insurrection,riotor civil disturbance,epidemic;and
(2) a Change inLaw.
"Unincorporated Area" means thoseportionsof the County which arenot containedwithinthejurisdictional boundaries of incorporatedcities.
"UnincorporatedArea AcceptableWaste" means AcceptableWaste originatingfrom or generatedwithinthe UnincorporatedArea.
"Unrestricted Reserves" means cash and other reserves of the Waste InfrastructureSystem which are not Restricted Reserves.
"Waste DisposalCovenant"means thecovenantsand agreementsof theCity setforthin Section3.1hereof. "Waste InfrastructureSystem" or "DisposalSystem" means County owned or operatedwaste management relatedfacilities,includingactiveClassIIIsanitarylandfills("CountyLandfills"),closedlandfillsmanaged by the County, resourcerecoveryoperations,OrganicsInfrastructure,recyclingand organicsprograms, infrastructureand operations,and regionalhousehold hazardous waste collectioncentersand otherwaste management relatedsystems asmay be deemed necessaryby theCounty.
"WISE" means Waste InfrastructureSystem Enterprise.
"WISE Agreements" means each of the WISE agreements enteredintobetween the County and any City withintheCounty,SpecialDistrict,SanitaryDistrict,Jurisdiction,or operatorof any FranchiseHauler locatedin the County in accordance with the terms herewith.

SECTION 1.2 INTERPRETATION. In thisAgreement,unlessthecontextotherwiserequires:
(A) ReferencesHereto.The terms"hereby","hereof',"herein","hereunder","herewith",and any similartermsrefertothisAgreement,and theterm "hereafter"means after,and theterm "heretofore"means before, the Contract Date.
(B) Gender and Plurality.Words of themasculinegendermean and include correlativewords ofthefeminineand neutergendersand words importingthesingularnumber mean and includethepluralnumber and vice versa.
(C) Persons. Words importing persons include firms, companies, associations,general partnerships,limitedpartnerships,trusts,businesstrusts,corporationsand otherlegalentities,includingpublicbodies, as well as individuals.
(D) Headings.The tableofcontentsand anyheadingsprecedingthetextof theArticles,Sections and subsectionsof thisAgreement shallbe solelyforconvenience of referenceand shallnot constitutea partof this Agreement, nor shalltheyaffectitsmeaning, constructionor effect. (E) No ThirdPartyBeneficiaries.NothinginthisAgreement isintendedto conferon haulersor any otherperson otherthan thepartiesheretoand theirrespectivepermittedsuccessorsand assignshereunderany rightsor remediesunder orby reasonof thisAgreement.
(F) Counterparts.ThisAgreement may be executedinany number of originalcounterparts.All such counterpartsshallconstitutebut one and thesame Agreement. (G) ApplicableLaw and Venue. ThisAgreement has been negotiatedand executed in the State of Californiaand shallbe governedby and construedunder the laws of the Stateof California.In the event of any legal actionto enforceor interpretthisAgreement, the soleand exclusivevenue shallbe a courtof competentjurisdiction locatedinOrange County, California,and thepartiesheretoagreeto and do hereby submitto thejurisdictionof such court,notwithstandingCode of CivilProcedure Section394. Furthermore,thepartiesspecificallyagreeto waive any and allrightstorequestthatan actionbe transferredforadjudicationto anothercounty. (H) Severability.Ifany clause,provision,subsection,Sectionor Articleof thisAgreement shall be ruledinvalidby any courtofjurisdiction,thenthepartiesshall:(1)promptlymeet and negotiatea substituteforsuch clause,provision,subsection,Sectionor Articlewhich shall,tothegreatestextentlegallypermissible,effectthe intent of the partiestherein;(2)ifnecessaryor desirableto accomplish item (1)above, apply to the courthaving declared such invalidityfora judicialconstructionof theinvalidatedportionof thisAgreement; and (3)negotiatesuch changes in,substitutionsforor additionstotheremainingprovisionsof thisAgreement as may be necessaryinadditiontoand inconjunctionwith items(1)and (2)above to effecttheintentof thepartiesinthe invalid provision.The invalidityof such clause,provision,subsection,Sectionor Articleshallnot affectany of theremaining provisionshereof,and thisAgreement shallbe construedand enforcedas ifsuch invalidportiondid not exist,unless such invalidityfrustratestheunderlyingprimarypurposeof theAgreement. (I) Integration;Preservationof Certain Agreements. This Agreement contains the entire agreementbetween thepartieswith respecttothetransactionscontemplatedhereby.ThisAgreement shallcompletely and fullysupersedeallpriorunderstandingsand agreementsbetween the Partieswith respectto such transactions; provided;however,thatthisAgreement shallnot supersedethefollowingCooperativeAgreements as theycurrently existor as they may be amended in the future:
1) CooperativeAgreement between the City of Brea and the County of Orange regarding theOlinda Alpha Landfill.
2) CooperativeAgreement between theCity of Irvineand the County of Orange regarding the Frank R. Bowerman Landfill.
3) CooperativeAgreement between the City of San Juan Capistranoand the County of Orange regardingthePrima Deshecha Landfill.

ARTICLE II

REPRESENTATIONS AND WARRANTIES
SECTION 2.1 REPRESENTATIONS AND WARRANTIES OF THE CITY. The City representsand warrants that:
(A) Existence.The Cityisa chartercityvalidlyexistingunder the Constitutionand laws of the State.
(B) Due Authorization.The City has duly authorizedthe executionand deliveryof this Agreement, and thisAgreement has been duly executedand deliveredby theCity.

SECTION 2.2 REPRESENTATIONS AND WARRANTIES OF THE COUNTY. The County represents and warrants that:
(A) Existence.The County isa politicalsubdivisionof the Stateof Californiavalidlyexisting under the Constitution and laws of the State.
(B) Due Authorization.The County has duly authorizedthe executionand deliveryof this Agreement, and thisAgreement has been duly executedand deliveredby the County.

ARTICLE III

DELIVERY AND ACCEPTANCE OF WASTE

AND PROVISION OF WASTE

MANAGEMENT AND DISPOSAL SERVICE
SECTION 3.1 DELIVERY OF WASTE.
(A) Waste Management and Disposal Covenant. Subject to the occurrence of the Commencement Date and throughouttheTerm of thisAgreement, and subjecttoavailableWaste InfrastructureSystem capacity,theCity shallexercisealllegaland contractualpower and authoritywhich itmay possessfrom time to time to deliveror cause thedeliveryof allControllableWaste to the Waste InfrastructureSystem in accordance herewith. (B) Recycled City Acceptable Waste. The partiesheretoacknowledge theresponsibilityof the City to meet itsown recyclingand landfilldiversiongoalscontainedin theAct and OrganicsLegislation.Nothing in thisAgreement is intended or shallbe interpretedto prohibitor impair the abilityof the City to meet such responsibilities,or to restrictthe rightof the residents,businessesor organizationsin the City to practicesource separation,recycling,composting or othermaterialsrecoveryactivities,or to restricttherightof the City to conduct, sponsor,encourage or requiresuch activitiesinany form.No reductionintheamount of ControllableWaste generated in the City and deliveredto the Waste InfrastructureSystem by or on behalfof the City which may resultfrom any such sourceseparationorrecyclingprogram shallcausetheCityany liabilityhereunder(otherthanpotentialadjustment to the ContractRate to theextentprovided inArticleIV hereof)and shallnot constitutea breach of thisAgreement. (C) Waste Delivered to Transfer Station.All Residue from any processingof Controllable Waste by materialsrecovery,composting,recyclingor othermeans, wherever performed,shallconstituteControllable Waste and be subjectto theWaste DisposalCovenant.Where CityAcceptableWaste isprocessedata facilitywhich concurrentlyprocessesotherAcceptableWaste in a manner which produces commingled residuewhich cannot be tracedto a geographicsource,genericresiduesfrom such facilityin Tonnage equalto theresiduesthatwould have been producedhad CityAcceptableWaste onlybeen processedatthe facilityshallconstituteControllableWaste and be subjecttotheWaste DisposalCovenant.Any CityAcceptableWaste or materialderivedor segregatedtherefrom which isheldinstorageand assertedby thepossessorthereoftoconstituteRecycledCityAcceptableWaste awaiting saleor distributionto the secondarymaterialsmarkets shallconstituteControllableWaste if,when and to the extent thatthestorageordiversionthereofcanbe reasonablydeemed toconstitutean evasionoftheWaste DisposalCovenant ratherthangenerallyrecognized,acceptedand prevailingpracticein the SouthernCaliforniamaterialsrecoveryand recyclingindustryconductedinaccordancewithApplicableLaw. In orderfortheowner and/oroperatorof a transfer stationtobe entitledtodeliverAcceptableWaste from a ParticipatingCitytotheWaste InfrastructureSystem forthe ContractRate as provided inArticleIV, such owner and/oroperatormust executea directagreementwiththe County, acknowledging and agreeingto comply with the obligationof the ParticipatingCity to cause the deliveryof all ControllableWaste to theWaste InfrastructureSystem pursuantto thisAgreement. In addition,the County shallbe authorizedtoimplement procedurestodetermineifAcceptableWaste deliveredby theowners oroperatorsof Transfer Stations is entitled to utilize the Waste Infrastructure System for the ContractRate.Such proceduresmay include requiringTransferStationstocertify,underpenaltyofperjury,thesourceof any such AcceptableWaste.Ifnecessary, the County may requirethat,in orderto qualifyforuse of the Waste InfrastructureSystem for the ContractRate, Transfer Stations must deliver Controllable Waste in loadscontainingonly ControllableWaste, and not commingled withAcceptableWaste from entitieswhich arenotParticipatingCitiesor ParticipatingIndependentHaulers. (D) Power to ObligateWaste Disposal and Comply with thisAgreement. On or before the Commencement Date,(i)any City franchise,contract,lease,or otheragreementwhich islawfullyineffectrelatingto or affectingControllableWaste shallprovide,or shallhave been amended toprovide,thattheCity shallhave the right without material restrictionon and after the Commencement Date to directthe deliveryof allControllableWaste to the County Waste InfrastructureSystem (whether or not such ControllableWaste isdelivered to a transferstation as an intermediatesteppriortolandfilldisposal)and otherwiseto comply with itsobligationsunder thisAgreement with respectto ControllableWaste and FranchiseHaulers,and (ii)theCity shalldesignatetheWaste InfrastructureSystem asthedisposallocationpursuanttosuch franchise,contract,leaseor otheragreement.On and aftertheCommencement Date and throughoutthe Term of thisAgreement the City (a) shallnot enterinto any franchise,contract,lease, agreement or obligation,issueany permit,licenseor approval,or adopt any ordinance,resolutionor law which is materiallyinconsistentwiththerequirementsof theWaste DisposalCovenant, and (b)shallmaintainnon-exclusiveor exclusivefranchisesorothercontractualarrangementsover any CityAcceptableWaste which, as of theContractDate, issubjectto non-exclusiveor exclusivefranchiseor othercontractualarrangements.The City agreesthatthe County shallbe a thirdpartybeneficiaryof the obligationof Franchise Haulers to deliverControllableWaste to the Waste InfrastructureSystem, and may directlyenforcesuch obligationthrough any legalmeans available.The City shall notifyinwritingeach FranchiseHauler of theCounty's thirdpartybeneficiaryrights. (E) ControllableWaste Flow Enforcement.
(1)The City,in cooperationwith the Department, shallestablish,implement, carryout and enforcea waste flow enforcement program which is sufficientto assure the deliveryof all ControllableWaste to the Waste InfrastructureSystem pursuanttoand inaccordancewith theWaste DisposalCovenant forControllableWaste disposal atthe times and in themanner provided herein.The waste flow enforcementprogram shallconsistof amending City franchises,permitsor authorizationswith allFranchiseHaulers,totheextentrequiredby thisSectionand totheextent allowed by law,and shallincludein addition,to the extentnecessaryand appropriateinthecircumstances to assure compliance with the Waste Disposal Covenant, but shallnot be limitedto:
(i) licensingor permittingFranchiseHaulers,upon the conditionof compliance with the Waste Disposal Covenant,
(ii)providingforand takingappropriateenforcement actionunder any such franchise,license,or permit, such as but not limitedto the suspension,revocationand terminationof collectionrightsand privileges,theimpositionof finesor collectionof damages, and theexerciseof injunctivereliefagainst non-complying FranchiseHaulers,and
(iii)causing any Transfer Stationto which ControllableWaste is deliveredfor processingto deliver certification,under thepenaltyof perjury,of theamounts of ControllableWaste receivedand Residue remaining from processingatsuch TransferStation.
(2)The City acknowledges and agreesthatin the event of a breach of theWaste DisposalCovenant by the City,theCityshallpay theCounty an amount equaltotheamount thattheCitywould have been requiredtopay to the County had theWaste DisposalCovenant not been breached,which shallbe calculatedby: (1)subtractingthenumber of tons actuallydeliveredduring the month(s) of thebreach from the number of tons thatwere deliveredduring the same month(s) closestin time when therewas no such breach,even ifsuch month(s)closestin time was priorto the Term, and (2)multiplyingsuch amount by theContractRate in effectatthe time of such breach (orany higherrate with respecttowhich theCounty has providednoticepursuantto Section4.2).In theeventthattheCounty terminates the Agreement as a resultof such breach,thedamages due as a resultof such terminationshallbe equalto the average monthly deliveriesby theCity forthe twelve (12)months priorto thecommencement of thebreach multipliedby the Contract Rate in effect at the time of such breach (orany higherratewith respectto which the County has provided noticepursuantto Section4.2),multipliedby the number of months thatwould have remained in the Term of the Agreement had the terminationnot occurred.The partiesrecognize that if the City failsto meet itsobligations hereunder,theCounty willsufferdamages and thatitisand willbe impracticableand extremelydifficultto ascertain and determinethe exact amount of such damages. Therefore,the partiesagree that the damages specifiedabove representa reasonableestimateof the amount of such damages, consideringallof the circumstancesexistingon the date hereto,includingthe relationshipof the sums to the range of harm to the County thatreasonablycould be anticipatedand anticipationthatproof of actualdamages would be costlyor inconvenient.In signingthisAgreement, each partyspecificallyconfirmsthe accuracyof the statementsmade above and the factthateach partyhad ample opportunitytoconsultwith legalcounseland obtainan explanationof thisliquidateddamage provisionatthetime that thisAgreement was made.
(F) Legal ChallengestoFranchiseSystem.The Cityshalluse itsbesteffortstopreserve,protect and defend itsrightto exerciseand comply with theWaste Disposal Covenant againstany challengethereto,legalor otherwise(includingany lawsuitsagainstthe City or the County, whether as plaintiffor defendant),by a Franchise Hauler or any otherperson,based upon breach of contract,violationof law or any otherlegaltheory.The City shall bear the costand expense of any such Legal Proceeding or otherchallenge.In the event any such Legal Proceeding relatingto the Waste Disposal Covenant or the City'sexercisethereofestablishesin a finaldeterminationthatsuch covenant or exercisethereofisvoid,unlawful or unenforceable,or ifany FranchiseHauler failsto deliverControllable Waste to the Waste InfrastructureSystem in breach of itsfranchisewith the City on the grounds thata judicial determinationmade by any courtor otherApplicableLaw has rendereditsobligationto deliverControllableWaste to theDisposalSystem void,unlawful or unenforceableon any legalgrounds,with theresultthatactualwaste deliveries to theDisposalSystem fallbelow the Cumulative Tonnage Targets,the County shallbe entitledto availitselfof the remedies describedin Section4.2(B) hereof.
(G) FranchiseHaulers.The City shallcompile and providethe Department with the following informationconcerning allFranchise Haulers: name, address and phone number; identificationnumber; area of collectionand transportation;and franchiseand permitterms. (H) Waste InformationSystem. The City shallcooperatewith the Department in collecting informationand otherwisemonitoringFranchiseHaulers in orderto assurecompliance with thisAgreement, theAct, Organics Legislation,or otherApplicableLaw. Such informationmay includeinformationsuch as,datapertainingto ControllableWaste collected,transported,stored,processedand disposedof,Recycled City AcceptableWaste collected,transported,stored,processedand marketed or disposedof,ControllableOrganicWaste collected,stored, processed and marketed or disposed of,FranchiseHaulers'franchise,permit or licenseterms,collectionareas, transportationroutesand compliancewith ApplicableLaw; and allotherinformationwhich may reasonablybe required by theDepartment in connectionwith thisAgreement. The Cityagreestoincludeinany revisedfranchise,contract, licenseor permit or otherauthorizationgrantedto FranchiseHaulersan obligationof theFranchiseHauler toprovide to the County informationrelatingto the ControllableWaste collectedby such FranchiseHauler,includingorigins from which such ControllableWaste was collected(identifyingControllableOrganicWaste,Recycled CityAcceptable Waste, or as otherwisemay be requiredunder thisAgreement or under ApplicableLaw), tonnageby type of load (residential,commercial, roll-offbox), customer servicelevels,tonnagedeliveredby transferstationor material recoveryfacilityutilized,and otherrelatedinformation.
(I) CityActionsAffectingCounty.The Cityagreestocarryoutand fulfillitsresponsibilities under thisAgreement and ApplicableLaw so as topermitfulland timelycomplianceby theCountywithitscovenants and agreementswith theState.In particular,theCityagreesnot to conduct,authorizeor permitany disposalservices forControllableWaste tobe providedincompetitionwith theDisposalServicesprovidedby theCounty hereunder, and not to takeor omit totakeany actionwith respectto ControllableWaste, itscollection,transportation,transfer, storage,treatment,processing,ordisposalthatmay materiallyand adverselyaffecttheCounty'sabilitytoachievesuch timelycompliance.Notwithstandingtheforegoing,theCityshallnotbe requiredtodeny any permitorlicenseor refuse tograntany approvalwhileexercisingitspolicepowers.
(J) No Right of Waste Substitution.Nothing in thisAgreement shallauthorizeor entitlethe Cityto deliveror cause thedeliveryto theWaste InfrastructureSystem ofAcceptableWaste orAcceptableOrganic Waste originatingfrom or generatedoutsidethejurisdictionof theCity,nor obligatetheCounty toreceiveor dispose of any such AcceptableWaste or AcceptableOrganicWaste. The City shallnot assignin whole or inpartitsrightto deliver or cause to be delivered Controllable Waste or ControllableOrganic Waste to theCounty hereunder,and shall notpermitany AcceptableWaste or AcceptableOrganic Waste originatingfrom or generatedoutsidethejurisdiction of theCitytobe substitutedforControllableWaste or ControllableOrganicWaste forany purposehereunder. (K) Annexations and Restructuring.Itisthe intentionof thepartiesthatthisAgreement and the obligationsand rightsoftheCityhereunder,includingparticularlytheWaste DisposalCovenant and theContractRate, shall,tothe extentpermittedby ApplicableLaw, extendto any territoryannexed by theCity (orany territorywith respecttowhich theCityassumessolidwastemanagement responsibilityfrom a SanitaryDistrictorotherpublicentity) and shallbind any successoror restructuredGovernmental Body which shallassume or succeed to therightsof the Cityunder ApplicableLaw.

SECTION 3.2 PROVISION OF WASTE INFRASTRUCTURE SERVICES BY THE COUNTY. (A) ServiceCovenant.Commencing on theCommencement Date, and subjecttoavailableWaste InfrastructureSystem capacity,theCounty shallprovideorcausetheprovisionoftheserviceofreceivingand disposing of all Controllable Waste at the Waste Infrastructure System, and, in accordance with subsection3.3(C) hereof, disposingofUnacceptableWaste inadvertentlyacceptedattheDisposalSystem. The County, to themaximum extent permittedunder ApplicableLaw, shalluse itsbesteffortsto increasesourcereduction,materialsrecovery,recycling, organicprocessingor otherwaste diversionin theregionas may be requiredby law or which resultin the long-term preservationoflandfilldisposalcapacityand tokeep theWaste InfrastructureSystem open forthereceiptofAcceptable Waste fordisposalor transferof ControllableWaste pursuanttothisAgreement. The County shalldo and perform all actsand thingswhich may be reasonablynecessaryor desirablein connection with itscovenants in thissubsection, includingwithout limitationallplanning,development, administration,implementation,construction,operation, maintenance,management, financingand contractwork relatedtheretoor undertaken in connection therewith.The County shallexerciseallreasonableeffortsto minimize the costsincurredin complying with the Service Covenant consistentwith itsresponsibilitieshereunder and under thisAgreement, ApplicableLaw and prudent solidwaste management practiceand environmental considerations.
(B) Source-SeparatedHousehold Hazardous Waste. The County shallmaintain,as partof the Waste InfrastructureSystem, a Source-SeparatedHousehold Hazardous Waste Disposal System for the disposalof Source-SeparatedHousehold Hazardous Waste. The disposalserviceprovidedby suchsystemshallconstitutepartof the DisposalServices,and shallbe availableto ParticipatingCitiesas partof the ContractRate.The County may impose additionalfeesand chargesfornew servicesrelatingto Source-SeparatedHousehold Hazardous Waste or with respectto citieswhich arenot partiesto an Agreement. The County may provide forthe expansion,contractionor modificationof the Source-SeparatedHousehold Hazardous Waste Disposal System and itsservicesto the extent necessaryto ensuretheWaste InfrastructureSystem's viability. (C) Designated Facilities.County and City willcoordinatein determining the primary landfill used for disposaland processingof ControllableWaste. The Department shallimmediately advise the City by telephoneof any situation,event or circumstancewhich resultsin the partialor complete inabilityof the County to receiveControllableWaste atany particularlandfillwithintheWaste InfrastructureSystem,itseffecton theCounty's abilitytoperform itsobligationshereunder,and theCounty's bestestimateof theprobableduration.The Department shallconfirm such adviceinwritingwithintwenty four(24)hours of the occurrenceof any such inability.The County shalluse itsbesteffortstoresume normal operationof the landfillused by theCity as soon as possible.In theeventa situation,eventor circumstanceresultsinthepartialor completeinabilityof theCounty toreceiveControllableWaste atany particularlandfillwithintheWaste InfrastructureSystem theCounty shallhave therighttoredirectControllable Waste to another landfillwithin the Waste InfrastructureSystem forthedurationof thesituation,event or circumstance; provided,however,thatinsuchcircumstancestheCounty shallutilizereasonableeffortsto firstredirectwaste which isnot ControllableWaste.In no eventshalltheCounty be requiredto acceptControllableWaste ifitdoes not have sufficientpermitteddisposalcapacitywithintheWaste InfrastructureSystem. (D) Compliance with Service Covenant Not Excused for any Reason. Commencing on the Commencement Date,and subjectto theterms of thisAgreement,theobligationsof theCounty todulyobserveand comply with the Service Covenant, in accordance with ApplicableLaw, shallapply continuouslyand without interruptionfor the Term of thisAgreement. In the event that any Change in Law, situation,event or other UncontrollableCircumstanceimpairsor precludescompliancewith the Service Covenant by the means or methods thenbeingemployedby theCounty,theCounty shalluse besteffortstoimplement alternativeor substitutemeans and methods to enableitto satisfytheterms and conditionsof theServiceCovenant.In theeventthata Change in Law precludestheCounty from complying with such covenantswiththemeans ormethods thenbeingemployed and from utilizingany alternateor substitutemeans or methods of compliance,theCounty shallcontinuouslyuse allreasonable effortsto effectuateexecutive,legislativeorjudicialchange in or relieffrom the applicabilityof such law so as to enabletheCounty lawfullyto resume compliancewith such covenantsas soon as possiblefollowingtheChange in Law.

County failureto duly observeand comply with the ServiceCovenant due to itseffortsto comply with Applicable Law, shallnotconstitutea breachunderthisAgreement,and shallexcuseCounty performancetotheextentnecessary tocomply with ApplicableLaw.

If the alternative or substitute means and methods proposed forthe County to observeand comply with the Service Covenant aremore costlythan thepreviouslyused means and methods, County shallbe entitledto a corresponding ContractRate increaseto cover any associatedadditionalcosts pursuant to the provisionsof Section 4.2 of this Agreement.

SECTION 3.3 COUNTY RIGHT TO REFUSE WASTE.
(A) Rightof Refusal.Notwithstandingany otherprovisionhereof,theCounty may refusedeliveryof:
(1) Hazardous Waste;
(2) ControllableWaste deliveredathours otherthan thoseprovidedin Section3.5 hereof; (3) Waste thatdoes notconstituteAcceptableWaste;
(4) Acceptable Waste deliveredby City but originatingfrom or generated outside the jurisdictionof the City;
(5) ControllableWaste consistingprimarilyof constructionand demolition debris or inert materialwhich may cause a particularfacility'sdailytonnage limitto be exceeded; (6) AcceptableWaste inexcessof permittedlimits;and
(7) AcceptableWaste thatwould resultinCounty violatingApplicableLaw. (B) Identificationof UnacceptableWaste. The Department shallhave theright(butnot theduty or the obligation)to inspectthe vehiclesof allFranchiseHaulers deliveringmaterialto the Waste Infrastructure System, and may requirethatthe FranchiseHauler remove any Unacceptable Waste from such vehiclebefore itis unloaded.IftheDepartment determinesthatitisimpracticalto separateControllableWaste from Unacceptable Waste in any vehicle,or iftheFranchiseHauler deliveringsuch waste isunwillingto make such separation,or ifany vehicle iscarryingwastewhich may spillorleak,thentheDepartment may rejecttheentirevehicle,and theCityshallforthwith remove or cause theremoval of the entiredeliveryfrom theWaste InfrastructureSystem.The Departmentmay take allreasonablemeasurestopreventwaste from beingblown or scatteredbeforeand duringunloading.The City shall cause theFranchiseHaulersto observeand comply with ApplicableLaw, theoperatingrulesand regulationsof the Department, and the provisionsof thisAgreement prohibitingthe deliveryof Unacceptable Waste to the Waste InfrastructureSystem.
(C) Hazardous Waste and Hazardous Substances.The partiesacknowledge that the Waste InfrastructureSystem hasnotbeen designedorpermittedto acceptHazardous Waste or Hazardous Substances,and is notintendedtobe usedinany manner ortoany extent,forthehandling,transportation,storageordisposalof Hazardous Waste, Hazardous Material or Hazardous Substances. NeithertheCounty nor theCity shallcountenanceor knowingly permit the deliveryof Hazardous Waste or Hazardous Substancesto the Waste InfrastructureSystem. City shallbe responsibleforthecostsofremoval,and any regulatoryfines,associatedwiththeknowing deliveryofany Hazardous SubstancestotheWaste InfrastructureSystem by theCity or itsFranchiseHauler. (D) Disposalof Unacceptable Waste and Hazardous Waste. IfUnacceptableWaste or Hazardous Waste isdiscoveredin a vehicleatany facilitywithintheWaste InfrastructureSystem, thedriverof thevehiclewill not be permittedto dischargetheload. Ifa vehicleisobserved unloadingUnacceptableWaste or Hazardous Waste in thetippingareaof a facilitywithintheWaste InfrastructureSystem Department personnelwilluse reasonableefforts to assure that such materialhas been characterized,properly secured and itsdispositionresolved.The return or reloadingonto the deliveryvehicleof any Hazardous Waste, ProhibitedMedical Waste or otherwaste requiring handling or transportationshallbe conducted in accordance with Applicable Law. Whenever Hazardous Waste is detectedat any facilitywithin the Waste InfrastructureSystem, the Department shalltake immediate actionin accordancewith ApplicableLaw.

SECTION 3.4 UNINCORPORATED AREA ACCEPTABLE WASTE.

Commencing on theCommencement Date,theCounty inaccordancewithApplicableLaw shallprovideor cause to be provided the serviceof disposingof non-recycledAcceptable Waste originatingor generated within the UnincorporatedArea and,with respectto such material,shallcomply with theWaste DisposalCovenant as iftheCounty constituteda City subjectto the Waste Disposal Covenant hereunder.Rates chargedby the County forthe disposalof each classof non-recycledAcceptableWaste generatedintheUnincorporatedArea shallbe thesame as theContract Fee charged forthedisposalof each classof ControllableWaste. The County shalluse itsbesteffortstopreserve,protectand defenditsrighttoexerciseand comply withtheWaste DisposalCovenant (withrespecttonon-recycledAcceptableWaste generatedin theUnincorporatedArea) againstany challengethereto,legalor otherwise,by a FranchiseHauler or any otherperson,based upon breach of contract,violationof law or any otherlegaltheory.The County shallbear thecostand expense of any such Legal Proceeding or otherchallenge(withrespectto non-recycledAcceptableWaste generatedin theUnincorporated Area).

SECTION 3.5 MISCELLANEOUS OPERATIONAL MATTERS.
(A) Operating Hours. The County shallkeep the Waste InfrastructureSystem open for the receivingof Acceptable Waste during such regularoperatinghours as may be establishedby the Department in the operatingrulesand regulationsapplicabletotheWaste InfrastructureSystem.The County reservestherightto modify theoperatingdays and hours tocomply with Applicablelaw or as otherwisemay be deemed necessaryby the County. (B) Scalesand Weighing. The Department shalloperateand maintainpermanent scalesatthe Waste InfrastructureSystem as requiredby ApplicableLaw. The Department shallweigh allvehiclesdeliveringwaste by or on behalfof the City (whether or not the County acceptssuch waste) and preparea dailyweight recordwith regardto such delivery.
(C) ServiceCoordinator.The County and the City each shalldesignatein writingthirty(30) days priorto the expected Commencement Date a person to transmitinstructions,receiveinformationand otherwise coordinate servicematters arisingpursuant to thisAgreement (each a "Service Coordinator").EitherParty may designatea successoror substituteServiceCoordinatoratany time by noticetotheotherParty. (D) Review of Records.Each Partymay reviewtheotherParty'sbooks and recordswith respect tomattersrelevanttotheperformanceby eitherPartyunderthisAgreement orotherwiserelatedtotheoperationof the Waste InfrastructureSystem totheextentallowedunder theCaliforniaPublicRecordsAct (interpretedasiftheParties tothisAgreement were naturalpersonsforpurposesof thePublicRecords Act).

SECTION 3.6 OTHER USERS OF THE DISPOSAL SYSTEM.
(A) On orBeforeApril30,2026,theCounty shallhave therighttoenterintoWISE Agreements with Orange County entitieswith respectto AcceptableWaste which was originallydiscardedby thefirstgenerator thereofwithinthegeographicallimitsof theCounty,includingothercitiesin the County, SpecialDistricts,Sanitary Districts,FranchiseHaulers and Independent Haulers. Agreements enteredintoduring thisperiod shallhave terms and provisionssubstantiallyidenticalto the terms and provisionsof thisAgreement; provided,however, that in no eventshallsuch agreementshave termsand provisionsmore favorablethantheterms and provisionsof thisAgreement (includingbut not limitedto theContractRate and availabilityof disposalcapacity). (B) AfterApril30,2026, theCounty shallhave therightto enterintoWISE Agreements with Orange County entities,includingany city,SpecialDistricts,SanitaryDistricts,FranchiseHaulers and Independent Haulers,or otherwiseacceptAcceptableWaste from such parties,but only within the limitationscontainedin this Section.Any such agreementorwaste acceptanceagreementmust providethatthepartydeliveringwaste shallpay a DisposalRate atleast10% higherthantheContractRate unlessthe County determinesitisin thebestinterestof the Waste InfrastructureSystem toestablisha DisposalRate lessthan 10% higherthantheContractRate.Inno event shall theDisposalRate be lessthan theContractRate.In addition,theCounty shallreservetherightinany such agreement toatany time,totheextentpermittedby ApplicableLaw, refusetoreceiveand disposeofAcceptableWaste from any city,SpecialDistrict,SanitaryDistrict,FranchiseHauler and IndependentHauler ifand to theextentthatsuch receipt and disposalmight materiallyand adverselyaffectthe abilityof the County to comply with itsobligationsto the ParticipatingCitiesunder theWISE Agreements towhich each isa party. (C) Posted DisposalRate.The Posted DisposalRate shallat alltimes be at least10% higher than the Contract Rate.
(D) Self-Haulers.The Cityand theCounty acknowledge thatSelf-Haulersshallbe entitledto deliver Self-Hauled Waste to the Waste Infrastructure System, on a non-contractbasis,atthe Posted DisposalRate.

Such Self-Haulersshallnotbe entitledto disposeof AcceptableWaste fortheContractRate. (E) Receiptof Imported AcceptableWaste on a ContractBasis.The County shallhave therightto enterintoImportationAgreement(s)with any publicor privateentityforthedeliveryof Imported AcceptableWaste on terms and conditionsthatthe County determines to be necessaryto ensure and enhance the viabilityof the Waste InfrastructureSystem and togenerateNet Import Revenues.In no eventshallsuch ImportationAgreements, enteredinto aftertheCommencement Date,includea per tontippingfeeor DisposalRate forImported AcceptableWaste thatisless than the ContractRate. The County certifiesthatin itsgood faithjudgment the contractor otheragreement forthe deliveryof such waste willnot materiallyand adverselyaffectthe abilityof the County to receiveand dispose of Acceptable Waste from the ParticipatingCitiesin accordance with the applicableWISE Agreements throughoutthe Term thereof;and,should thedeliveryof waste subjecttoImportationAgreements adverselyaffecttheCounty's ability toreceiveand disposeof ControllableWaste from ParticipatingCitiesthe County willprioritizereceiptand disposalof ControllableWaste deliveredpursuantto applicableWISE Agreements. (F) Applicationand Use of Revenues From Other Users.
(1) County Acceptable Waste: Throughout the Term hereof,allrevenues receivedby the County from the disposalor processingof County Acceptable Waste into the Waste InfrastructureSystem (includingSurcharges,and any and allfine,penalty,liquidateddamages or other damages, grants,awards or revenue receivedby the County in connectionwith the Waste InfrastructureSystem), shallbe depositedby the County in the County OC Waste & Recycling EnterpriseFund and shallconstituterevenues of the Waste InfrastructureSystem.
(2)Imported Acceptable Waste: Throughout the Term hereof,allrevenues receivedby the County, pursuantto an ImportationAgreement, forthe disposalor processingof Imported Acceptable Waste intotheWaste InfrastructureSystem (includingSurcharges,and any and allfine,penalty,liquidateddamages or otherdamages orrevenuereceivedby theCounty inconnectionwith theWaste InfrastructureSystem),shallfirst be appliedtoward allof the costsattributableto theacceptanceand management of such ImportedAcceptable Waste intothe Waste InfrastructureSystem. Costs attributableto the disposalof Imported AcceptableWaste include,but arenotlimitedto,depositstotheEnvironmentalFund, depositstoclosureand post-closurereserves, Host Fees(ifapplicable),incrementaloperatingcosts(suchas manpower expenditures,equipment,servicesand suppliesexpenditures),Statesurcharges,regulatoryfees,chargesor penalties,and a pro ratashareof capital projectcosts.Revenue remainingaftercostsattributabletothedisposaland management ofImportedAcceptable Waste shallbe considered"Net ImportRevenues" and shallbe calculatedand distributedas follows:
(i) Calculation:Net Import Revenues areestimatedto be 30% of the revenues received by theCounty from thedisposalof ImportedAcceptableWaste (excludingany newly establishedper-tonfeesor increasesto existingper-tonfeeswith respectto Imported AcceptableWaste payabletotheState,otherregulatoryagencies or citiesin which facilitiesintheWaste InfrastructureSystem arelocated.)
(ii) Distribution:Net ImportRevenues shallbe distributedas follows; a. 50% of any Net ImportRevenues shallbe paidto theCounty General Fund. 50% of such Net ImportRevenues shallbe paid to theParticipatingCities(and to theCounty,with respecttotheunincorporatedarea)listedin Appendix 1 for use forany purposeby theParticipatingCity,includingbut not limitedto State mandated solidwaste programs. Payments of such amount totheCounty General Fund and theParticipatingCitiesshallbe made by theCounty withinninety(90) days afterthe end of each fiscalyear. The portionof Net Import Revenues specifiedabove payable to the ParticipatingCitiesshallbe apportionedin the percentagessetforthinAppendix 1.
c. The percentagessetforthinAppendix 1 withrespectto each ParticipatingCity shallbe annuallyreviewedand adjustedevery five(5)yearsby the County to reflectthepercentageof deliveriesof AcceptableWaste from each Participating City averaged over thelastfive(5)years.The County shallnotifyParticipating Citiesof therevisedpercentagesin Appendix 1 withinone hundred and twenty (120)days of theend of each fiscalyear.

SECTION 3.7 COUNTY PROVISION OF WASTE DIVERSION SERVICES. (A) County-Wide Recycling and DiversionServices.Unless otherwisespecificallyprovided in thisAgreement, County isnot requiredto provideforany source reduction,materialsrecovery,recycling,organic processingor otherwaste diversionservicesunder thisAgreement. However, County may choose toprovideCounty- Wide RecyclingServicesfunded throughtheCounty OC Waste & Recycling EnterpriseFund atitssolediscretionon theconditionthatprovisionof saidservicesshallbe funded ina manner thatdoes not impact theContractRate without firstgoing throughtheprocessoutlinedinSection4.2 and expresslyagreed toby 50% of ParticipatingCities. (B) Organic Processing and Diversion Services. The County has developed Organics Infrastructureand programs availableto interestedCitiesintended to assistCitiesin meeting theirdiversionand Organic LegislativeRecycledOrganicWaste Procurementgoals and to promote the processingand diversionof Organic Waste intocompost or othermaterialthatqualifiesas diversionunder Applicable Law. Citiesinterestedin receivingCounty provided Organic Processing Servicesmay enterintothe separateOrganic ServicesAgreement ("OSA") provided inAppendix 5 of thisAgreement.
(C) Food Waste Processingand Diversion. County isin theprocessof evaluatingthe options and feasibilityof development of a Commercial Food Waste ProcessingInfrastructure.Ifdeveloped,Citieswillbe provided an opportunitytoparticipatein thisserviceon termswhich shallbe separatelyagreedupon by theParties. (D) Edible Food Recovery Programs. County isin the processof evaluatingthe optionsand feasibilityof development of regionalCounty-wide ediblefood recoveryprograms to assistCitiesin meeting State mandated goals.The intentof EdibleFood Recovery toaddressthefood hierarchyand wasted food scaleon a regional levelthroughcollaborationof alljurisdictions,key local,Stateand federalstakeholders,the non-profitsectorand businesssector.Cityagreestoreasonablycooperatewith County effortsand collaborateon dataanalysisand reporting toprovidejurisdictionsreportsforcomplianceunder SB 1383. Ifdeveloped,Citieswillbe providedan opportunityto participatein thisserviceon terms which shallbe separatelyagreedupon by theParties. (E) Recycling Market Development Zone ("RMDZ") Program. The RMDZ program, administeredby the CaliforniaDepartment of Resource Recyclingand Recovery (CaiRecycle),combines recycling witheconomic developmenttosupportbusinessthatuse materialsfrom thewaste stream to manufacture theirproducts.

The program offersloans,technicalassistanceand productmarketingtoeligiblebusinesseslocatedwithindesignates zones.City agreesto reasonablycooperateand collaboratewith County in supportof theRMDZ program. (F) Separate City-County Diversion Service Agreements. Nothing in this Agreement is intendedtolimittherightof theCounty toenterintoa separateagreementwiththeCityor any otherperson toprovide sourcereduction,materialsrecovery,recycling,composting or otherwaste diversionservices.Any such program conductedby theCounty,whether inparticipationwith the City,any otherof the ParticipatingCities,otherCities, SpecialDistricts,SanitaryDistricts,FranchiseHaulers,IndependentHaulers,UnincorporatedArea or non-County entity,shallbe operated,managed and accounted foras a program separateand distinctfrom the Disposal Services program contemplatedby theWISE Agreements and shallnotbe funded throughthegeneralrevenuesof theDisposal System.

ARTICLE IV

CONTRACT RATE
SECTION 4.1 CHARGING AND SECURING PAYMENT OF CONTRACT RATE. The City acknowledges thattheCounty shallhave therighttocharge and collecta ContractRate fortheacceptance,disposal,and processingof ControllableWaste deliveredto the Waste InfrastructureSystem by City or itsFranchiseHauler.The Contract Rate shallbe calculatedand established,and may be modified,as provided in Section4.2 hereof.In addition, the City acknowledges thatthe County shallhave the rightto establishas partof the operatingrulesand regulations reasonablemeasures to securethepayment of allContractRates.

SECTION 4.2 CONTRACT RATE.
(A) Establishmentof Contract Rate.The Contract Rate payable by each City or FranchiseHauler shallbe a three(3)year progressiveContractRate of $67/ton (July1 2026 through June 30, 2027),$74/ton (July 1, 2027 throughJune 30, 2028),and $81/ton (July1,2028 throughJune 30, 2029) and contingenton thedeliveryto the Waste InfrastructureSystem of an amount of CityAcceptableWaste atleastequaltotheCumulative Tonnage Targets identifiedinAppendix 2,and subjectto adjustmentnecessaryto reflectthecircumstancessetforthinthisSection4.2 includingbut not limitedto:
(i) increasedcostsincurredby the County (inexcessof availableinsuranceproceeds) due to the occurrence of one or more Uncontrollable Circumstances,otherthan Changes inLaw; (ii) costsincurredby theCounty (inexcessof availableinsuranceproceedsand amounts availableintheEnvironmentalFund forsuch purposes)remediatingenvironmental conditionsatthe Disposal System or inactiveor closed disposalsitesin the County, which, ifuncorrected,could give riseto potentialclaims under CERCLA or relatedfederalor Statestatutes,includingcostsincurredprovidingindemnificationto any Participating City pursuantto subsection7.3;
(iii) tonnage shortfallsto theextentpermittedby Sections4.2(B); (iv) County determinationthattheDepartment revenue isinsufficienttomeet FullCost Recovery requirements.
(v) increasedcostsincurredby the County due to the occurrenceof one or more Changes in Law;
(vi) CapitalCosts in excess of the CapitalCosts at any pointin time duringthe tern hereofexceedingtheCumulativeCapitalCostssetforthinAppendix 3; (vii) Provisionof new or expanded services,providedon terms as agreed to by theParties.

Priorto adjustingtheContractRate as a resultof any ofthecircumstancesdescribedinclauses(i),(ii),(iii)(iv)or (vi) above,theCounty shallutilizethefollowingremediesinthefollowingorderofpriority:
(1) reducethecostsofoperatingtheDisposalSystem totheextentpracticable;and (2) atthesolediscretionof theCounty,utilizeUnrestrictedReserves to pay costsof the Waste InfrastructureSystem.

The County willnotbe requiredtoutilizesuch remediespriorto adjustingtheContractRate as a resultof any of the circumstancesdescribedinclauses(v)or(vii)above.

Any adjustmentstotheContractRatepermittedby thisSectionshallbe calculatedby theCounty toreflectthe actual costsor expensesof addressingthecircumstanceor circumstancespursuanttowhich theadjustmentisauthorized.The County agreesthat,where appropriate,itwillevaluatethefeasibilityof long-termfinancingforsignificantcapital costs.Notwithstandingtheforgoing,no adjustmentto the ContractRate shalloccur as a resultof costsassociated with the programs identifiedin Section3.7,without firstgoing through theprocessoutlinedin Section4.2 and expressly agreedtoby 50% of ParticipatingCities.
(B) County Acceptable Waste Shortfall.In the event thatthe actualamount of County AcceptableWaste deliveredtotheDisposalSystemattheend of any ContractYear islessthantheCumulative Tonnage Targetforsuch ContractYear forCounty AcceptableWaste, as specifiedin Appendix 2,theCounty shallutilizethe followingoptions,inthefollowingorderofpriority,inordertoremedy any adverseeffectsofsuchtonnageshortfall:
(i) reduce the costs of operatingthe Waste InfrastructureSystem to the extent practicable;
(ii) atthesolediscretionof County,utilizeRestrictedReserves describedinclause(iii) of Section4.5topay costsof theWaste InfrastructureSystem; (iii) at the solediscretionof County, utilizeUnrestrictedReserves to pay costsof the Waste InfrastructureSystem; and
(iv) adjusttheContractRate.

In the eventthatimplementationof the stepsdescribedabove does not resultin sufficientrevenues to satisfactorily addresstheshortfallintonnage,theCounty shallhave therighttoterminatetheAgreement on one-hundred eighty(180) days writtennoticeto theCity.In addition,in theeventthatWaste Infrastructureexpenses arelower than estimatedor actualdeliveriesto theDisposalSystem exceed theCumulativeTonnage Targetas of theend of any ContractYear, the Cityacknowledges theCounty shallhave therightto establishreservesintendedto reflectthepotentialforlower than expectedannualwaste deliveriesinsubsequentyears,and thatany such reservesshallconstitute"RestrictedReserves". (C) [RESERVED]
(D) InterimUse of Remedies. In the eventthat,duringany ContractYear, waste deliveriesto theDisposalSystem are25% or more below deliveryprojectionsforsuch ContractYear with theresultthattheCounty determinesitisunlikelythattheCumulativeTonnage Target willbe achieved as of the end of such ContractYear, the County may utilizetheremedies describedin Section4.2(B)priortotheend of suchContractYear;provided,however, thatifat the end of such Contract Year, the Cumulative Tonnage Target isactuallymet, the County shallreimburse any adjustmentsto theContractRate made pursuantto thisSectionto ParticipatingCities.Such reimbursement shall occur in a manner as agreed between theparties,and may be given as a creditor adjustmentto the ContractRate for futuredeliveries,ratherthana lump sum payment.
(E) Special Charges. NotwithstandingSection 4.2(A),the County shallhave the rightto establishspecialchargesfortheprovisionof new or expanded servicesor thereceiptof hard tohandlematerials,such asbulky materials,constructionand demolitiondebris,treestumpsand sludge.ShouldtheCounty wish toprovidenew or expanded servicesto Cities,itmay charge for such servicesupon agreement of City.Specialchargesshallbe calculated to reflect the reasonable incremental costs to the County of providingthe new or expanded servicesor acceptingsuch hard tohandle materials.

AdjustmentspursuanttothisSection4.2(E)shallnotrequirecompliancewiththeprovisionsof Section4.2(I) (F) Annual CPI Escalation.Subjectto theapplicationof theContractRate True-up (provided below),theContractRate shallbe adjustedeach July 1,beginning2029, inan amount equalto thepercentagechange in the CPI (asdefinedabove) as measured from the Octobertwentyone (21)months priortotherateadjustmentto the October immediatelyprecedingtherateadjustment(the"Annual CPI Adjustment").For example: The July 1,2029 Annual CPI Adjustment to the ContractRate shallbe based upon the change in CPI from October 2027, to October 2028,referredtoas year 1 and year2 respectivelyinthefollowingexample.

Formula tocalculatepercentagechange intheContractRate based on Annual CPI Adjustment:

Step 1:

October Year 2 CPI
.1 - 1= % increase in Contract Rate
October Year 1 CPI
Step 2: CurrentContractRate x (1+ % increaseinContractRate)= ContractRate as of July 1 Year 2 On each April1,commencing April1,2029,theCounty shallprovide the City with noticeof theAnnual CPI Adjustment to the ContractRate to be effectivethe followingJuly 1.Such noticeshallcontainthe calculationof the adjustmentsetforthabove.The County shallcalculatethenew ContractRate each year.

In theeventthatthechange inCPI as describedabove isnegativeratherthanpositive,no rateadjustmentwill be made forthatyear. No adjustmentunder thisSection4.2(F)willtakeplaceuntilthe October CPI index surpasses theindexlevelasof theOctoberimmediatelyprecedingthelastannualrateadjustmentpursuanttothisSection4.1(F), which willbe considered"year 1" incalculatingthechange intheContractRate.

For example, ifthechange in CPI ismeasured as follows:October 2027 = 205, October 2028 = 204, October 2029 =201, October 2030 = 208, then therewould be no adjustmentinJuly2029,orJuly2030,and an adjustmentequal to thechange from 205 to 208 would be implemented on July 1,2031.

Contract Rate True-up: On an annual basis,no laterthan each April30,beginningApril30, 2030, the County shallconductan annualreview of factorspertainingtothemost recentlycompleted fiscalyear(s)includingbut not limited to,tonnage receivedthroughoutthe Waste InfrastructureSystem, Cumulative Tonnage Targetsidentifiedin Appendix 2, revenue receivedfrom allsources,Department expenditures,and otherfactorsthatmake up Department's totalcosts.

County shallnotifyCity priorto April 30, 2030 (and every April 30 thereafter)and advise whether the Annual CPI Adjustment to the ContractRate should be frozen fora period of time (incircumstanceswhere Department revenues exceed Department FullCost Recovery needs)or todeterminewhether the ContractRate should be increasedbeyond the Annual CPI Adjustment as defined above (in circumstanceswhere Department costs exceed CPI) to ensure that Department revenues meet FullCost Recovery.

Within thirty(30) days of finalizingeach annual review,the County shalltransmititsfmdings and the bases thereoftoParticipatingCitiesatthenext regularlyscheduled OCCMA meeting or otherforum mutually agreed to by the County and OCCMA. Ifrequestedby theCity or OCCMA, the County shallreasonablyrespond to requestsfrom theCity and/orOCCMA for additionalinformationincluding,but not limitedto,requeststo meet and discussreviews,findings, and basesof findings.At therequestof 50% of ParticipatingCities,County agreestomeet and conferingood faithwith OCCMA, withinsixty(60)days todiscussretentionofa consultantacceptabletoboth theCounty and OCCMA toconduct an independentreview of theCounty's annual review findings.

Nothing inthissectionshallbe interpretedas limitingtheCounty'srightsunder Section4.2(A). (G) Adjustment Resultingfrom IncreasedFees.In additionto theotheradjustmentsspecified herein,theContractRate shallbe adjustedtoreflecttheimpositionofnew feesor increaseinexistingfeesrelatingto the disposalof ControllableWaste imposed by State,federalor otheragencies(e.g.,theState'sIntegratedWaste Management fee,which iscurrently$1.40perton,butisexpectedinincreaseduringthetermofthisAgreement).The adjustmentshallbe equalto theamount of any new or increasedfee,and the adjustmentshalltake effectso as to coincidewith the impositionof thenew or increasedfee.The County shallprovidenoticeofany increasepursuant to thisSection4.2(G)assoonaspracticableafterbecoming aware of theimpositionof any feesdescribedabove.

AdjustmentspursuanttothisSection4.2(G)shallnotrequirecompliancewiththeprovisionsofSection4.2(I). (H) [RESERVEDI
(I) ProcedureforRate Adjustments.In the eventtheCounty determines thatitisentitledto an adjustmentoftheContractRatepursuanttoSection4.2(A)(otherthan4.2(A)(iv))orSection4.2(B),itshallutilizethe proceduresdescribedinthisSection4.2(I).The County shallbe requiredtoprovidetheCitywith atleastninety(90) days priorwrittennoticeof theadjustment,which noticeshallidentifythespecificevent(s)or circumstanceswhich requiretheadjustment.The noticeshallalsospecifytheearliestdateon which theCounty Board of Supervisorsshall considertheproposedadjustment.At leastfortyfive(45)dayspriortosuchmeetingoftheBoard of Supervisors,the County shallprovidetheCitywitha reportwhich shallcontainthefollowinginformation:a descriptionof the specific event(s)orcircumstanceswhichrequiretheadjustment;a description(includingcostestimates)ofany activities(which may include,butnotbe limitedtocapitalimprovementstotheWaste InfrastructureSystem)requiredinordertoremedy such eventor circumstance;certificationby theCounty thatithas implemented the remedies describedin Section

4.2(A) or (B) priorto requiringthe rateadjustment;and a descriptionof themethodology used by the County to calculatethe adjustmentto the ContractRate (hereinafterthe "County Report").In theeventthe Citydisputesthe adjustment,itshallprovidetheCounty with a writtendescriptionof thereasonforthedisputeatleastten (10) days priorto themeeting of theBoard of Supervisorsidentifiedin theinitialnoticeof the County (hereinafterthe"City Report"). The City Report shallbe provided to the Board of Supervisorsfor considerationat such meeting in connectionwith theproposedrateadjustment.At any timefrom and afterthedatethattheCounty providesthe City with the County Report,upon therequestof eitherparty,theCityand County shallmeet and conferingood faithto resolveany disputethatmay ariseregardingtheproposedadjustmenttotheContractRate.In any such meeting,the County shallbe representedby the Directorof the Department or his or her designee.In the event the Board of Supervisorsapprovesallora portionoftheproposedrateadjustment,such rateadjustmentshallbecome effectiveon thedateidentifiedintheinitialnoticesentby theCounty regardlessof whether or not theproceduresin Section4.2(J) areutilized,but subjecttopotentialreimbursement pursuantto clause(11)of Section4.2(J). (J) Procedure forExpedited JudicialReview of Contested Rate Adjustment. In the event that, within thirty(30) days afterthe effectivedate of any ContractRate adjustmentmade pursuantto Section4.2(I), ParticipatingCitieswhich, intheaggregate,accountedformore than50% of theCounty AcceptableWaste delivered totheCounty System inthetwelve(12)months precedingtheContractRate adjustment,providenoticetotheCounty of theirelectiontoutilizetheproceduresdescribedinthisSection4.2(J),thentheprovisionsof thisSection4.2(J)shall be utilizedby suchParticipatingCitiesand theCounty toresolvethedisputeovertheContractRate Adjustment.In the event thatParticipatingCitieswhich have deliveredthe amount of waste contemplatedin theprecedingsentencedo not providenoticetotheCounty of such election,theCounty shallhave no obligationtoparticipatein or cooperatein theimplementationof theproceduresdescribedbelow in thisSection4.2(J). (1) In order to pursue the expeditedjudicialdeterminationdescribed in thisSection (the"ExpeditedRate Determination"),theParticipatingCitieswhich have made theelectiondescribedintheparagraph above (the"ChallengingCities")must commence a civilactionforbreach of contract(the"Action")in the Orange County Superior Court within fortyfive (45) days of the date on which the Board of Supervisorsapproves the challengedadjustmentto the ContractRate.
(2) Within two (2) Court days of filingthe Action, the Challenging Citiesshall personallyserveon theCounty Counsel,withcopy providedtotheClerkoftheBoard boththesummons and complaint, and a stipulationand requestforthe enteringof an orderincorporatingallof theproceduralprovisionsrelatingto the ExpeditedRate Determinationas setforthinthisSection4.2(J)(suchstipulationand requestfororderishereinafter referredtoasthe"ExpeditedRate DeterminationStipulation").The ExpeditedRate DeterminationStipulationshallbe signedby each of theChallengingCities,or on behalfof them by theirlegalcounsel. (3) Within fifteen(15)days of thedateof serviceupon the County of thesummons and complaint,and ExpeditedRate DeterminationStipulation,County Counsel shallexecute the Expedited Rate DeterminationStipulationand deliveritas well as theCounty's answer to thecomplaintin theAction,by electronic means, to theChallengingCitiesthroughtheircounselof record.The Stipulationshallalsoincludea waiverby each of thepartiesof theirrighttoa jurytrialof theissuesraisedintheAction.The Partiesagreethattheduty to execute the Expedited Rate DeterminationStipulationand comply with the procedures set forth for Expedited Rate DeterminationinthisSection4.2(J)shallbe,and arehereby deemed tobe,ministerialdutieswhich thelaw specifically enjoinsupon eachofthem,and shallbe subjecttoenforcementby thepartieshereinpursuanttoCode of CivilProcedure Section1085,etseq.,orby means ofa complaintforspecificperformance. (4) Within three(3)days of the date of serviceby the County upon the Challenging Citiesof thefullysignedExpedited Rate Determination Stipulation,theCounty and theChallengingCitiesshalljointly make exparteapplicationtotheOrangeCountySuperiorCourtintheActionfortheissuanceofan orderreflectingthe proceduralrequirementsand timelinescontainedin theExpeditedRate DeterminationStipulation,providedhowever, thetimelinesmay be adjustedby theCourt as itdeems may be needed foritsconvenience.As partof such ex parte application,theCounty and theChallengingCitiesshallexpresslyseektoconfirmwith theOrange County Superior Court thebriefingschedule,and requesta hearingdate(effectivelya trialdate)in accordancewith theproceduresset forthinthisSection4.2(J).
(5) Within ten(10)days of thedateof serviceby the County upon the Challenging Citiesof the answer in the Expedited Rate Determination,the Challenging Citiesshallfilewith the Court and electronicallyserveupon County CounseltheChallengingCities'openingbriefand theRecord intheExpeditedRate Determination.The opening briefshallnot exceed 15 pages in length.The Record shallconsistof,and be limitedto, therecordof theproceedingsbeforetheBoard of Supervisorswith respectto the adjustmentof the ContractRate, includingbutnotlimitedtotheCounty Reportand theCityReportpreparedby each orany oftheChallengingCities pursuantto Section4.2(I),any materialsfiledor lodgedwiththeBoard of Supervisorsand theOrange County Waste Management Commission inconnectionwith itsdecision,thetranscriptoftheproceedingsoftheBoard ofSupervisors meeting(s),and theOrange County Waste Management Commission, theminutesof theBoard of Supervisorsand the Orange County Waste Management Commission meeting,and theresolutionand/orotherdocumentationevidencing theactionby theBoard ofSupervisorsand theOrange County Waste Commission toadjusttheContractRate pursuant to Section4.2(A) or (B).The record shallalso includethe most recentreportspreparedpursuantto Sections4.6 and

4.7.The Expedited Rate Determinationshallbe decided solelyon theevidence intheRecord, and no extrinsicevidence shallbe submittedto or consideredby theCourt.
(6) Within ten (10)days of serviceby theChallengingCitiesof theiropening brief and the Record,the County shallfileand electronicallyserveupon the ChallengingCities'Counsel the County's oppositionbrief.The oppositionbriefshallnot exceed 15 pages in length. (7) Within five(5)days of serviceby theCounty upon theChallengingCitiesof the oppositionbrief,theChallengingCitiesmay fileand electronicallyserveupon County Counsel a replyrebuttalbrief, which shallnotexceed 10 pages inlength.
(8) The trialof the Expedited Rate Determinationshallbe conducted as a law and motion hearing,similartoa hearingon a writ,which shallbe conducted atthedatesetby theCourt inconnection with theexparteapplicationconductedpursuanttoSection4.2(J)(4),or such otherdateand time orderedby the Court. If theCourt requeststhepartiestopreparesupplementalbriefsin responseto any questionor issueraisedby the Court, the partiesmay do so.
(9) The standard of review for the Expedited Rate Determination shall be the preponderanceof theevidencebased upon theRecord.The burden ofproofshallbe borneby theChallengingCities, and theburdenofproofshallbe thesame aswithrespectto a plaintiffin a damages actionforbreach of contract.Both partieshave participatedinthedraftingof thisAgreement.Accordingly,nothingsetforthinthisAgreement shallbe interpretedor construedforor againsteitherofthepartiesas a consequenceoftheirparticipationinthedraftingof this Agreement.
(10) The Courtshallbe advisedthatthePartiesrequestthatitissuea writtenstatement ofdecisionand enterjudgment withinthirty(30)days of thedateof thehearingintheExpeditedRate Determination, althoughthePartiesrecognizethattheCourt has discretiontoactas itdeems appropriateinaccordwithapplicable lawsinconnectionwiththetimingthereof.
(11) IftheCourtdeterminesthatany portionof theCounty's adjustedContract Rate which isthesubjectof theExpeditedRate Determinationwas improperlyimposed,theCounty shall,withinthirty(30) days of the date of the statementof decision,reimburse to theCitythe amount improperlyimposed,togetherwith interestcalculatedattheOverdue Rate.Ifagreedby the Parties,as an alternativesuch reimbursement may be made in the form of a reduction in the Contract Rate for a futureperiod(nottoexceedtwelve(12)months),appliedina manner such thatitprovidesfullreimbursement of the amounts describedabove (includingthe Overdue Rate,to be applied consistentwithprovisionsof Section7.14hereof.)
(12) In theeventthattheCourt doesnot signtheordercontainedintheExpeditedRate DeterminationStipulationand setthematterfordispositionas contemplatedherein,theCounty and theChallenging Citiesshall,withintwenty(20)days followingtheissuanceof the Court'sorder or decisionnot to do so and thereby honortheparties'stipulation,make applicationtotheOrange County SuperiorCourtforan expeditedhearingor trial date.The ChallengingCitiesand theCounty shallbe bound by allof the requirementsand restrictionssetforth in Section4.2(J)thatarenotinconflictwiththisparagraph(12).In thisregard,and withoutlimitingtheforegoing,the onlyevidencetobe presentedatthehearingortrialshallbe theRecord,no testimonyshallbe presentedatthehearing or trial;and both theCounty and theChallengingCitieswaive allrightsto a jurytrial,to any reconsiderationof the decisionof the Court, to a new trialafterthe Court rendersa decision,and toany appealor review of the decisionof the Court.

SECTION 4.3 RESPONSIBILITY FOR PAYMENT OF THE CONTRACT RATE, AND OTHER AMOUNTS DUE.
(A) Payment by City.In theeventand totheextent(1)theCityusesmunicipalcollectionforces directlyforthehaulageof ControllableWaste to theWaste InfrastructureSystem or (2)theCityusesnon-municipal Franchise Haulers for collection but nonetheless elects to pay the ContractRate and otheramounts due from City revenues,the City,as itsown FranchiseHauler, shallhave directresponsibilityforpayment of theContractRate and otheramounts due,and shalltakeallsuchbudgetary,appropriationand otheractionas may be necessaryto provide forthe timelypayment of the ContractRate and otheramounts due. Such actionmay include,depending upon the means authorizedby the City to provide forsuch payment, the levyand collectionof generalor specialtaxes,the impositionof benefitassessments,or the collectionof user fees,generatorchargesor othersimilarimpositionsfor municipalsolidwaste disposal.The Cityshalluse besteffortsinaccordancewithApplicableLaw tolevyand impose allsuch taxes,assessments,feesor charges,and willtake allsteps,actionsand proceedingsfor the enforcement, collectionand payment of allsuch amounts which shallbecome delinquent,tothefullextentpermittedby Applicable Law.
(B) Payment by FranchiseHaulers.With respecttoControllableWaste deliveredby Franchise Haulerson behalfofCityotherthanCitymunicipalcollectionforces,theobligationtopay theContractRate and other amounts due shall restwith such Franchise Haulers. FranchiseHauler shallpay theContractRate or otheramounts due or any portionthereofwhen due.In theeventof any such failureby Hauler,theCounty and theCityshallcooperate with each other and use their best efforts to obtain timelypayment from FranchiseHauler.Such effortsby the County may include,as appropriate,requiringcash payments fordisposalrightsfrom such FranchiseHauler and bringinga legalproceedingforpayment and damages. Such effortsby theCitymay include,as appropriate,legalproceedingsto suspend,revoke or terminatetheFranchiseHauler'sfranchise,permitor licenserights. (C) Disputes.Ifthe Cityor theFranchiseHauler disputesany amount billedby the County in any BillingStatement,theCityor theFranchiseHauler shallnonethelesspay thebilledamount and shallprovidethe County with writtenobjectionwithinthirty(30)days of thereceiptof such BillingStatementindicatingthe amount thatisbeing disputedand providingallreasonsthenknown totheCityor theFranchiseHauler forany objectionto or disagreementwithsuch amount. IftheCityor theFranchiseHauler and theCounty arenot abletoresolvesuch dispute withinthirty(30)days aftertheCity'sor theFranchiseHauler'sobjection,eitherpartymay pursueappropriatelegal remedies.

SECTION 4.4 BILLING OF THE CONTRACT RATE OR OTHER AMOUNTS DUE. The County shall continue to bill Contract Rates and other amounts due afterthe Commencement Date, in the same manner as ithas customarilybilledtippingfees.Subjectto theotherprovisionsof thisAgreement, theCounty shallhave the rightto modify or amend such manner of billingon reasonablenoticetoaffectedparties.

SECTION 4.5RESTRICTED RESERVES. For purposesof thisAgreement, "RestrictedReserves" means cash and otherreservesoftheWaste InfrastructureSystem which arerestrictedtospecificusesor areotherwisebeing reserved by the County to meet itsobligationshereunderthroughoutthe term of the Agreement with respectto the Waste InfrastructureSystem pursuantto any ApplicableLaw, contract,adoptedbudget,budgetarypolicyof theCounty with respectto theWaste InfrastructureSystem, or otherarrangement.Such cashand otherreservesarenotrequiredto be depositedinseparateaccountsor fundsinordertoconstitute"RestrictedReserves"hereunder,and may be commingled with UnrestrictedReserves or otherfunds of the County attributableto the Waste InfrastructureSystem. "Restricted Reserves" shallinclude,but not be limitedto,the following:
(i) reservesforclosureof components of theWaste InfrastructureSystem to theextent requiredby ApplicableLaw;
(ii) amounts reservedby the County for funding of post closuremaintenance and monitoringwith respecttocomponents of theWaste InfrastructureSystem; (iii) reservesestablishedtoprotecttheWaste InfrastructureSystem againstthe adverse financialimpact of potentialdecreasesinwaste deliveriespursuant to Section 4.2(B); (iv) amounts reservedtopay thecostsofcapitalimprovementswith respectto theWaste InfrastructureSystem;
(v) amounts funded from revenuesduringtheearlyyearsof theterm of theAgreement reservedtoenabletheCounty toprovidedisposalservicesfortheContractRate duringthelateryearsoftheAgreement; (vi) amounts temporarilyheld by the County priorto payment to the Stateor other Governmental Bodies pursuanttoApplicableLaw (includingany feesor chargespayableto CalRecycle); (vii) reservesrequiredto meet bond covenantspursuantto financingagreements for Waste InfrastructureSystem assetstotheextentsuch amounts must be legallyseparateand distinctfrom otherreserves identifiedin thisSection;
(viii) securitydepositsfrom landfilldeferredpayment program users; (ix) amounts held by the County in theEnvironmental Fund (provided,however, that such amounts in the Environmental Fund will be made availableand used by theCounty ifrequiredtopay costsrelating to environmentalremediationor otherrelatedcosts);
(x) AB 939 surcharges;
(xi) amounts held by the County in the CorrectiveAction Fund held pursuantto CCR Title27 to demonstratefinancialassurancetopay forpotentialgroundwater contamination;and (xii) an amount equaltothree(3)months ofbudgeted expenses fortheDisposalSystem forthecurrentfiscalyear,representingworking capitalof theDisposalSystem.

SECTION 4.6 AUDITED FINANCIAL STATEMENTS. The County shallannually,on or beforeJanuary 1 each year,prepareor cause tobe preparedand have on fileforinspectionan annual reportfortheprecedingContract Year, accompanied by a certificateof an independentpublicaccountantor of theCounty Auditorand Controlleras to the examination of the financial statements therein (describingsuch statementsas fairlypresentingthe information thereinin conformitywith generallyacceptedaccountingprinciples)relatingto the Waste InfrastructureSystem, services,and the fiscalactivitiesof the OC Waste Disposal EnterpriseFund, and includingstatementsin reasonable detailof the financialconditionof the OC Waste Disposal EnterpriseFund as of the end of the ContractYear and revenue and expenses fortheContractYear.

SECTION 4.7 ANNUAL UPDATE OF TEN-YEAR FINANCIAL PROJECTION. The County shall annually,on orbeforeMay 1 ofeachyear,prepareor causetobe prepared,an updatedTen-Year FinancialProjection fortheWaste InfrastructureSystem.SaidFinancialProjectionshallincludeatleasttwo fullyearsof prioractualdata and tenyearsoffutureprojectionsincludingthefollowingelements:

1. County Acceptable Waste, in tons;

2. Imported Acceptable Waste, in tons;

3. Revenues and expenditures;

4. Cash fund balances,includingallmonies in the County Solid Waste Enterprise Fund, with specificdelineationof monies in the Environmental Fund, RestrictedReserves,UnrestrictedReserves,and allotherfundsof theSystem; and

5. Projectedliabilitiesforclosureand postclosureas well as reasonablereservesfor other environmental costs.

The purposeoftheTen-Year FinancialProjectionistokeep theCityfullyinformed aboutthefuturefinancialcondition oftheWaste InfrastructureSystem.The County shallcausea copy oftheTen-Year FinancialProjectiontobe delivered to theCityManager/GeneralManager of theCityno laterthanMay 1 of each year.Upon request,theCounty shall make availabletotheCitiessupportinginformationrelatedtotheten-yearfinancialprojection Within thirty(30)calendardays of finalizingeach annualupdateoftheTen-Year Projection,County shalltransmitthe Ten-Year Projectionvia email to the City and OCCMA. Ifrequestedby the City or OCCMA, the County shall reasonablyrespondtorequestsfrom theCityand/orOCCMA foradditionalinformationincluding,butnotlimitedto, requeststomeet and discusstheupdatedTen-Year ProjectionsatthenextregularlyscheduledOCCMA meeting or otherforum mutuallyagreedtoby theCounty and OCCMA.

ARTICLE V

BREACH, ENFORCEMENT AND TERMINATION
SECTION 5.1 BREACH. The Partiesagreethatintheevent eitherPartybreachesany obligationunder this Agreement or any representationmade by eitherPartyhereunderisuntrueinany materialrespect,theotherParty shall have the rightto takeany actionatlaw or in equity(includingactionsforinjunctiverelief,mandamus and specific performance)itmay have to enforcethe payment of any amounts due or the performance of any obligationsto be performedhereunder.NeitherPartyshallhave therighttoterminatethisAgreement exceptas providedinSection5.2 and Section5.3hereofor as otherwiseprovidedinthisAgreement.

SECTION 5.2 CITY CONVENIENCE TERMINATION. The City shallhave the rightto terminatethis Agreement in itssolediscretion,foritsconvenience and withoutcause atany time duringtheTerm hereofupon ninety (90)days'writtennoticeto the County. Ifthe City exercisesitsrightsto terminatethe Agreement pursuantto this Section,the City shallpay the County a terminationfee equal to the ContractRate in effectat the time of such termination(orany higherratewith respecttowhich theCounty has providednoticepursuanttoSection4.2)multiplied by thenumber of tonsof CityAcceptableWaste deliveredto theDisposalSystem duringtheprecedingtwelve(12) months (or,ifthe City had been inbreach of theWaste DisposalCovenant duringsuch priormonths, such amount as would have been deliverediftheCityhad compliedwith theWaste DisposalCovenant),multipliedby thenumber of yearsremaining in theTerm of theAgreement.

SECTION 5.3 TERMINATION.
(A) By City.Except as expresslyprovidedherein,theCity shallhave no rightto terminatethis Agreement forcause exceptintheeventof the failureorrefusalby theCounty substantiallytoperformany material obligationunder thisAgreement unlesssuch failureor refusalisexcused by an UncontrollableCircumstance;except thatno such failureor refusalshallgivetheCitytherightto terminatethisAgreement forcause under thissubsection unless:
(1) The Cityhas givenpriorwrittennoticetotheCounty statingthata specifiedfailure or refusaltoperformexistswhich will,unlesscorrected,constitutea materialbreachof thisAgreement on thepartof theCounty and which will,in itsopinion,givetheCitytherightto terminatethisAgreement forcauseunder this subsection unless such breach is corrected within a reasonableperiod of time,and (2) The County has neitherchallengedinan appropriateforum (in accordance with Section5.5)theCity'sconclusionthatsuch failureor refusalto perform has occurred or constitutesa material breach ofthisAgreement norcorrectedordiligentlytakenstepstocorrectsuchbreachwithina reasonableperiodof time not more thanninety(90)days from thedateof thenoticegivenpursuanttoclause(1)ofthissubsection(butifthe County shallhave diligentlytakenstepstocorrectsuch breachwithinsuchreasonableperiodof time,the same shall not constitutea breachgivingrisetotherightof terminationforaslongastheCounty iscontinuingtotakesuch steps to correctsuch breach).
(B) By County.Exceptasexpresslyprovidedherein,theCounty shallhave no righttoterminate thisAgreement forcauseexceptintheeventofthe failureorrefusalby theCityor itsFranchiseHaulertosubstantially performany materialobligationunderthisAgreement unlesssuch failureor refusalisexcusedby an Uncontrollable Circumstance;except thatno such failureor refusalshallgivetheCounty therighttoterminatethisAgreement for cause under this subsection unless:
(1) The County hasgivenpriorwrittennoticetotheCitystatingthata specifiedfailure or refusaltoperform existswhich will,unlesscorrected,constitutea materialbreachof thisAgreement on thepartof theCityandwhichwill,initsopinion,givetheCountyrighttoterminatethisAgreement forcauseunderthissubsection unless such breach iscorrected within a reasonable period of time,and r (2) The City has neitherchallengedin an appropriateforum (in accordance with Section5.5)theCounty'sconclusionthatsuch failureorrefusaltoperform has occurredorconstitutesa material breach ofthisAgreement norcorrectedordiligentlytakenstepstocorrectsuchbreachwithina reasonableperiodof time not more thanninety(90)days from thedateof thenoticegivenpursuanttoclause(1)of thissubsection(butifthe City shallhave diligentlytakenstepsto correctsuch breachwithinsuch reasonableperiodof time,the same shallnot constitutea breach givingriseto therightof terminationforas long as theCityiscontinuingto takesuch stepsto correctsuch breach).

SECTION 5.4NO WAIVERS. No actionof theCounty or theCitypursuanttothisAgreement (including, but notlimitedto,any investigationorpayment),and no failuretoact,shallconstitutea waiverby eitherPartyof the otherParty'scompliancewithany term orprovisionofthisAgreement.No courseofdealingordelayby theCounty ortheCityinexercisinganyright,power orremedy under thisAgreement shalloperateas a waiver thereofor otherwise prejudicesuchParty'srights,powers and remedies.No singleorpartialexerciseof (orfailuretoexercise)any right, power orremedy of theCounty or theCityunder thisAgreement shallprecludeany otheror furtherexercisethereof oftheexerciseofany otherright,power orremedy.

ARTICLE VI
TERM
SECTION 6.1 EFFECTIVE DATE AND TERM.
(A) InitialTerm. This Agreement shallbecome effective,shallbe in fullforce and effectand shallbe legallybindingupon theCityand theCounty from the ContractDate and shallcontinuein fullforceand effect untilJune 30, 2036, unlessearlierterminatedin accordance with itsterms,in which event the Term shallbe deemed to have expiredas of thedateof such termination.
(B) OptiontoRenew. ThisAgreement shallbe subjectto renewal by mutual agreement of the Parties,on or before June 30, 2036 foran additionalterm of ten(10)years(the"Renewal Term") on the same terms and conditionsas areapplicableduringtheInitialTerm hereoforon amended termsasmay be mutuallyagreed to by theParties.The CityshallgivetheCounty writtennoticeof itselectiontorenew thisAgreement on orbefore June 30, 2035. Ifthepartiesdo not executea renewal of thisAgreement priortoJune 30,2036 itshallexpire. (C) ContractRate During Renewal Term. In connectionwith the parties'rightto renew this Agreement foran additionalten-yearterm pursuantto Section6.1(C),thepartiesshall,on or beforeJanuary 31, 2036 negotiatean applicablechange intheContractRate forsuch renewalterm. In determiningany revisionsto the Contract Rate to be applicableduring any renewal period,in additionto the circumstancesdescribedin Section 4.2(A), the partiesmay takeintoconsiderationthefollowingparameters,includingbut not limitedto:
(i) actualcostof operations;
(ii) populationgrowth;
(iii) increaseor decreasein availabletonnage;
(iv) economic and disposalmarket conditionsintheSouthern Californiaregion; (v) new regulatoryrequirements;
(vi) Changes in Law;
(vii) changes intransportationand technology;
(viii) closureand expansionof nearby landfills;
(ix) capacityof theDisposalSystem;
(x) provisionof new and/orexpanded services;and
(xi) availablereserveswhich are in excess of the amount reasonablyrequiredas reserves.
(D) Survival;Accrued Rights. The rightsand obligationsof the partieshereto pursuant to Sections3.1(E)(2),5.1,5.3,7.2,7.3,7.6,7.7,7.8,and 7.9 hereof shallsurvivethe terminationor expirationof this Agreement, and no such terminationor expirationshalllimitor otherwiseaffectthe respectiverightsand obligations of the partiesheretoaccrued priorto the date of such terminationor expiration.At the end of the Term of this Agreement, allotherobligationsof thepartiesshallterminate.

SECTION 6.2 COMMENCEMENT DATE.
(A) Obligationsof the PartiesPriorto the Commencement Date. The Partiesacknowledge that theAgreements may be executedand deliveredon differentdatesand that,exceptasprovided inthissubsection,neither the County nor the City shallbe obligatedto perform itsobligationshereunder untilthe ParticipationThreshold provided hereinhas been met and the otherconditionsto the occurrence of the Commencement Date have occurred.

Priorto theCommencement Date,each Partyheretoshallatitsown expense exercisegood faithand due diligenceand take allstepswithin itsreasonablecontrolin seekingto satisfythe conditionsto the Commencement Date setforth hereinas soon as reasonablypracticable.The County and theCity,each atitsown expense,shallcooperatefullywith each otherand the otherParticipatingCitiesin connectionwith the foregoingundertaking.Untilthe Commencement Date occurs,theOriginalWDAs shallremain infullforceand effectuntiltheyexpireor areterminated. (B) Condition to the Commencement Date. The Commencement Date forthe Agreement shall be thedateon which ParticipatingCitiesreach theParticipationThreshold.UnincorporatedCounty isassumed tobe a ParticipatingCity forthepurposes of determiningthe Commencement Date inaccordance with thisSection6.2(b)and Appendix 1 of thisAgreement.
(C) Satisfactionof Condition and Commencement Date. Upon thesatisfactionor waiver of the conditiontotheCommencement Date,theCounty shallgive writtennoticethereofto theCitieswhich have theretofore executed Agreements. The partiesshallthereuponhold a formal closingacknowledging the satisfactionor waiver of theconditionto theCommencement Date,certifyingthatthe Commencement Date has occurredand designatingthe ParticipatingCities.Copies of allof the documents or instrumentsconstitutingor evidencing satisfactionof the Commencement Date conditions shall be furnished to each partypriorto or on theCommencement Date. (D) Newly ncorporatedCities.Any citywithinOrange County which becomes incorporated aftertheCommencement Date shallupon requestbe offeredtheopportunityby theCounty tobecome a Participating City on substantiallythesame terms and conditionsas thisAgreement. (E) Failureof Condition.Ifby June 30,2026, or such laterdateas theCounty may agree,the conditiontotheCommencement Date specifiedinthisSectionisnot satisfied,eitherpartyheretomay, by noticein writingtotheotherparty,terminatethisAgreement.Neitherpartyshallbe liableto theotherfortheterminationof this Agreement pursuant to thissubsection,and each of thepartiesshallbearitsrespectivecostsand expensesincurredin seeking to satisfythe conditionto the Commencement Date.

ARTICLE VII

GENERAL PROVISIONS
SECTION 7.1 OPERATION AND MAINTENANCE OF THE WASTE INFRASTRUCTURE SYSTEM.

The County,atitscostand expensethroughtheCounty SolidWaste EnterpriseFund, shallatalltimesoperate,or causedtobe operated,theWaste InfrastructureSystem inaccordancewithApplicableLaw and theoperatingrules and regulationsoftheDepartmentand otherapplicableregulatoryagencies.

SECTION 7.2 UNCONTROLLABLE CIRCUMSTANCES GENERALLY.
(A) PerformanceExcused.Exceptasotherwisespecificallyprovided inthisAgreement, neither theCounty nor theCityshallbe liabletotheotherforany failureor delayintheperformanceof any obligationunder thisAgreement (otherthanany payment atthetime due and owing) totheextentsuch failureor delayisdue to the occurrence of an Uncontrollable Circumstance.
(B) Notice,Mitigation.The Partyexperiencingan UncontrollableCircumstance shallnotifythe otherParty by telecommunicationor telephoneand inwriting,on or promptly afterthedatethe Partyexperiencing such Uncontrollable Circumstance firstknew of the commencement thereof,followed within fifteen(15) days by a writtendescriptionof (1)theUncontrollableCircumstance and thecausethereof(totheextentknown), (2)thedatethe UncontrollableCircumstance began and thecause thereof,itsestimatedduration,theestimatedtime duringwhich the performance of such Party'sobligationshereunderwillbe delayed,(3)theestimatedamount, ifany,by which the ContractRate may need tobe adjustedas a resultof suchUncontrollableCircumstance,(4)itsestimatedimpact on the otherobligationsof such Partyunder thisAgreement and (5)potentialmitigatingactionswhich might be taken by the County or Cityand any areaswhere costsmight be reduced and theapproximateamount of such costreductions.Each Party shallprovideprompt writtennoticeof the cessationof such Uncontrollable Circumstance. Whenever such act, event or conditionshalloccur,the Partyclaimingto be adverselyaffectedtherebyshall,as promptly as reasonably possible,use itsbesteffortsto eliminatethe cause therefor,reducecostsand resume performanceunderthisAgreement.

In addition,with respectto Changes in Law, theCounty shalldiligentlycontestany such changes the impositionof which would have a materialadverseimpact on theWaste InfrastructureSystem.While thedelaycontinues,theCounty or Cityshallgive noticeto theotherParty,beforethefirstday of each succeedingmonth, updatingtheinformation previouslysubmitted.
(C) Impact on Contract Rate. If and to the extentthatUncontrollable Circumstances interfere with,delayorincreasethecosttotheCounty ofmeetingitsobligationshereunderand providingWaste Infrastructure Servicesto theParticipatingCitiesin accordanceherewith,theCounty shallbe entitledto an increasein the Contract Rate as provided in Section 4.2 herein or an extensionin the scheduleforperformance equal to the amount of the increased cost or the time lost as a result thereof. The proceedsofany insuranceavailabletomeet any such increased costshallbe appliedtosuchpurposepriortoany determinationof costincreasespayableunder thissubsection.Any costreductionsachievedthrough the mitigatingmeasures undertakenby the County pursuantto subsection7.2(B) hereofupon theoccurrenceof an UncontrollableCircumstance shallbe reflectedina reductionof theamount by which the Contract Rate would have otherwise been increased or shall serve to reduce the Contract Rate to reflect such mitigationmeasures,as applicable.

SECTION 7.3INDEMNIFICATION. To theextentpermittedby law,theCounty agreesthat,itwillprotect, indemnify,defend(withcounselselectedby County)and holdharmlesstheCityfrom and againstallLoss-and-Expense arisingfrom the City'sactivityas an "arranger"(forpurposes of and as such term is definedunder CERCLA or comparable Statestatutes)of municipalsolidwaste disposalpursuantto thisAgreement. In the eventthe City shall determineforany reason,otherthana disablingconflictofinterest,thatitwishestobe defendedby legalcounsel other than the legalcounselprovidedby the County,the costof providingsuch legalcounselshallbe the City'ssole responsibility.Any costsincurredby the County pursuantto thisSection shallbe considered an Uncontrollable Circumstancecostand theCounty shallbe entitledtoadjusttheContractRateasprovidedinsubsection4.2(A) herein.

The County shallnot,however,be requiredtoindemnifyor defendtheCityfrom and againstallLoss-and-Expense arisingfrom any willful,knowing, illegalor negligentdisposalof hazardouswaste (otherthan incidentalamounts of Household HazardousWaste commonly found in municipalsolidwaste and permittedto be disposedin ClassIII landfillsunderRCRA) which violatestheCounty'slandfillpermitsor ApplicableLaw. The partiesagreethatthis provisionconstitutesan indemnityunderCERCLA (totheextentof thespecificprovisionsof thisSection).The parties acknowledge thatthissubsectionisnot intended to and does not createany obligationon thepartof the County to provideany indemnificationor defensetoany FranchiseHauler,whetherfranchisedornot,orany IndependentHauler or TransferStation,under any circumstances.The City acknowledges the County's legitimateinterestin actively participatinginany defense,litigationor settlement,whethertheCounty or theCityprovideslegalcounseland shall, asa conditiontoCounty'sprovisionofthisindemnity,coordinateand cooperatefullywiththeCounty inthedefense of any claimstowhich thisSectionapplies.

SECTION 7.4 RELATIONSHIP OF THE PARTIES. Neitherpartyto thisAgreement shallhave any responsibilitywhatsoeverwithrespecttoservicesprovidedorcontractualobligationsorliabilitiesassumed by theother partyhereto,whetheraccrued,absolute,contingentor otherwise,or whether due or to become due. The County isan independentcontractoroftheCityand nothinginthisAgreement shallbe deemed to constituteeitherpartya partner, agentor legalrepresentativeoftheotherpartyortocreateany fiduciaryrelationshipbetween theparties.

SECTION 7.5 LIMITED RECOURSE.
(A) To theCity.No recourseshallbe had tothegeneralfunds or generalcreditof the City for the payment of any amount due the County hereunder,or the performance of any obligationincurredhereunder, includingany Loss-and-Expenseof any naturearisingfrom the performance or non-performanceof the City's obligationshereunder.IftheCitymaintainsa CitySolidWaste EnterpriseFund with atleastone year'santicipated costsfordisposaland processingofCityAcceptableWaste thesolerecourseof theCounty forallsuch amounts shall be tothefundsheldinany suchCitySolidWaste EnterpriseFund. Allamounts heldinany CitySolidWaste Enterprise Fund shallbe held fortheusespermittedand requiredthereby,and no such amounts shallconstitutepropertyof the County.The Cityshallmake adequateprovisionintheadministrationof any CitySolidWaste EnterpriseFund forthe payment of any amount or theperformanceof any obligationwhich may be due hereunder. (B) To theCounty. No recourseshallbe had tothegeneralfunds or generalcreditof theCounty for the payment of any amount due the City hereunder,or the performance of any obligationincurredhereunder, includingany Loss-and-Expense of any nature arisingfrom the performance or non-performance of the County's obligationshereunder.The solerecourseof theCityforallsuch amounts shallbe tothefundsheld inthe County Solid Waste EnterpriseFund in accordance with the terms of thisAgreement.Allamounts heldintheCounty SolidWaste EnterpriseFund shallbe heldfortheusespermittedand requiredthereby,and no such amounts shallconstituteproperty of the City.The County shallmake adequateprovisionin the administrationof the County SolidWaste Enterprise Fund forthepayment of any amount or theperformanceof any obligationwhich may be due hereunder.

SECTION 7.6 PRE-EXISTING RIGHTS AND LIABILITIES. Nothing inthisAgreement isintendedto affect,release,waive or modify any rights,obligationsor liabilitieswhich any Partyheretomay have toor againstthe otherPartyas of theContractDate relatingto thereceiptof AcceptableWaste in theWaste InfrastructureSystem or any otherrelatedmatter.

SECTION 7.7 NO VESTED RIGHTS. The City shallnot acquireany vestedproperty,licenseor other rightsintheWaste InfrastructureSystem by reasonof thisAgreement.

SECTION 7.8 LIABILITY FOR COLLECTION, TRANSPORTATION AND PROCESSING. Any liabilityincurredby theCity as a resultof collecting,transportingor processingof AcceptableWaste, or as a resultof causing,franchising,permitting,licensing,authorizingor arrangingany of the foregoing,shallbe the soleliabilityof City,exceptas expresslyotherwiseprovidedherein.

SECTION 7.9 NO CONSEQUENTIAL OR PUNITIVE DAMAGES. In no eventshalleitherPartyhereto be liabletotheotheror obligatedinany manner topay to theotherany special,incidental,consequential,punitiveor similardamages based upon claimsarisingout of or in connectionwith theperformanceor non- performanceof its obligationsor otherwiseunder thisAgreement, or the materialinaccuracyof any representationmade in this Agreement,whethersuchclaimsarebasedupon contract,tort,negligence,warrantyorotherlegaltheory.

SECTION 7.10 AMENDMENTS. Neither thisAgreement nor any provisionhereof may be changed, modified,amended orwaived exceptby writtenagreementduly authorizedand executedby both Parties.

SECTION 7.11 NOTICE OF LITIGATION. Each Party shalldeliverwrittennotice to the other of any Legal Proceeding to which itisa partyand which questionsthevalidityor enforceabilityof thisAgreement executed by theCity or the County or any Legal Entitlementissued in connection herewith.

SECTION 7.12 FURTHER ASSURANCES. At any and alltimesthe City and the County so faras may be authorizedby law shallpass,make, do,execute,acknowledge and deliverany and everysuch furtherresolutions, acts,deeds,conveyances,instruments,assignments,transfersand assurancesas may be necessaryor reasonably requestedby theotherinorderto givefulleffecttothisAgreement.

SECTION 7.13 ASSIGNMENT OF AGREEMENT.
(A) Assignment.NeitherthisAgreement nor any of therightsor obligationshereunder may be assignedby eitherPartyheretowithoutthepriorwrittenconsentof theotherParty,which may be withheldinthe other Party'ssolediscretion.Notwithstandingtheforegoing,eitherPartymay assignthisAgreement toanotherpublicentity, subjecttothereasonableconsentof theotherparty.In such circumstancesthePartynot requestingtheassignment shall have the rightto demand assurancesof the financial,technicaland legalabilityof theproposed assigneetoundertake theresponsibilitiesand obligationsof theassigningParty. (B) Sale.The County shallnotenterintoany agreementforthe saleof the Waste Infrastructure System which providesforan effectivedateforsuch salepriortotheterminationof thisAgreement.

SECTION 7.14 INTEREST ON OVERDUE OBLIGATIONS. Except as otherwise provided herein,all amounts due hereunder,whether as damages, credits,revenue or reimbursements,thatarenotpaid when due shallbear interestattheOverdue Rate on theamount outstandingfrom time to time,on thebasisof a 365-day year,counting the actualnumber of days elapsed,and allsuch interestaccrued atany time shall,to the extentpermittedby Applicable Law, be deemed added to the amount due, as accrued.

SECTION 7.15 BINDING EFFECT. This Agreement shallbind and inureto the benefitof thePartieshereto and any successoror assigneeacquiringan interesthereunderconsistentwith theprovisionsof Section7.13 hereof.

SECTION 7.16NOTICES. Any noticeor communication requiredor permittedhereundershallbe inwriting and sufficientlygivenifdeliveredinpersonorsentby certifiedorregisteredmail,postageprepaid,tothenoticeaddress of the respectivePartiessetforthon the cover page of thisAgreement. Changes in the respectiveaddressesto which such noticesmay be directedmay be made from time totime by any Partyby noticeto theotherParty.

Section7.17 ATTORNEYS FEES. In any actionor proceedingto enforceor interpretany provisionof this Agreement, each Partyshallbear theirown attorney'sfees,costsand expenses.

SignaturePage toFollow
IN WITNESS WHEREOF, COUNTY and CITY have caused thisAgreement tobe executedby theirduly authorizedofficersorrepresentativesasoftheday and year firstabove written.

COUNTY OF ORANGE
Director,OC Waste & Recycling
APPROVED AS TO FORM:

COUNTY COUNSEL

ORANGE COUNTY, CALIFORNIA
By
Date

CITY OF NEWPORT BEACH
Date By
Lauren Kleiman, Mayor
CityRepresentative
Cityof Newport Beach
APPROVED AS TO FORM:

By
Aaron C. Firp
CityAttorney
Date 1/5/2 'i S•z
Ac
ATTEST:

By
Lena Shumway
City Clerk
Date

APPENDIX

ESTIMATED ANNUAL TONNAGE
APPENDIX 1

PERCENTAGE OF COUNTY ACCEPTABLE WASTE ATTRIBUTABLE TO PARTICIPATING CITIES FOR PURPOSE OF SECTIONS 3.6(F)AND 6.2(b)
Jurisdiction Percentage of County
Acceptable Waste
Aliso Viejo 0.82%
Anaheim 14.78%
Brea 2.62%
Buena Park 1.02%
Costa Mesa/Costa Mesa SanitaryDistrict(2) 3.41%
Cypress 0.85%
Dana Point 1.33%
Fountain Valley 1.63%
Fullerton 4.08%
Garden Grove SanitaryDistrict(Garden Grove) 4.74%
HuntingtonBeach 5.91%
Irvine 9.64%
La Habra 1.72%
La Palma 1.27%
Laguna Beach 1.18%
Laguna Hills 0.89%
Laguna Niguel 1.44%
Laguna Woods 0.28%
Lake Forest 2.14%
Los Alamitos 0.33%
Midway CitySanitaryDistrict(Westminster) 2.47%
Mission Viejo 2.33%
Newport Beach 3.58%
Orange 5.25%
Placentia 1.39%
Rancho Santa Margarita 1.03%
San Clemente 2.43%
San Juan Capistrano 2.93%
Santa Ana 9.45%
Seal Beach 0.52%
Stanton 1.47%
Tustin 2.04%
UnincorporatedOrange County (1) 3.19%
Villa Park 0.16%
Yorba Linda 1.68%
Total 100%
(1) UnincorporatedCounty Area isassumed to be a ParticipatingCity forthepurposes of determiningthe Commencement Date inaccordance with Section6.2(b)of thisAgreement. For thedistributionof Net Import Revenues, theCounty of Orange shallreceive50% of any Net Import Revenues receivedin accordancewith Section3.6(F)(2)(i)of thisAgreement. The County of Orange shallalsoreceivetheUnincorporatedArea distributionsetforthinthisAppendix 1,asperiodicallymodifiedinaccordancewith Section3.6(F)(2)(ii)of thisAgreement. (2) The City of Costa Mesa and theCosta Mesa SanitationDistricthave separateWISE Agreements. Costa Mesa SanitationDistrictAcceptable Waste tonnage is based on City of Costa Mesa Acceptable Wate tonnage and ImportationRevenue is calculatedbased on City of Costa Mesa Acceptable Waste tonnage deliveredto the Waste InfrastructureSystem.
(3) NOTE: A participatingCitywillonly be includedforpurposes of determiningthe Commencement Date upon (i)executionof a WISE Agreement by thatParticipatingCity and (ii)executionof a Hauler Acknowledgement(s) by theFranchiseHauler(s)operatingwithinsuch ParticipatingCity.

APPENDIX 2

CUMULATIVE TONNAGE
APPENDIX 2
Cumulative County Acceptable Waste Tonnage Target to be Used for Purposes of Section 4.2(B)
Fiscal Year
(Ending June 30)
County Acceptable Waste
Tonnage
Cumulative County Acceptable
Waste Tonnage
2026 3,343,282 3,343,282
2027 3,278,595 6,621,877
2028 3,029,924 9,651,801
2029 2,982,454 12,634,255
2030 2,411,983 15,046,238
2031 2,261,201 17,307,439
2032 2,225,152 19,532,591
2033 2,181,838 21,714,429
2034 2,187,041 23,901,470
2035 2,219,362 26,120,832
2036 2,224,792 28,345,624
APPENDIX 3

CUMULATIVE CAPITAL COSTS
APPENDIX 3

CUMULATIVE CAPITAL COSTS
to be Used
for Purposes of Section 4.2(A)vi
Fiscal Year
(Ending June 30) Annual Capital Costs Cumulative CapitalCosts 2026 $72,599,664 $72,599,664
2027 $79,950,000 $152,549,664
2028 $155,135,000 $307,684,664
2029 $136,185,000 $443,869,664
2030 $41,171,500 $485,041,164
2031 $16,745,000 $501,786,164
2032 $18,165,000 $519,951,164
2033 $36,605,000 $556,556,164
2034 $30,100,000 $586,656,164
2035 $1,510,000 $588,166,164
2036 $25,000,000 $613,166,164
APPENDIX 4

FRANCHISE HAULER ACKNOWLEDGMENT

FRANCHISE HAULER ACKNOWLEDGMENT
THIS FRANCHISE HAULER ACKNOWLEDGMENT, dated as of [INSERT DATE] (the"Acknowledgment"), and between theCityofNewport Beach (the"City")and [INSERT HAULER NAME] (the"FranchiseHauler").

WITNES SETH
WHEREAS, theCity and theFranchiseHauler have heretoforeenteredintoan agreement entitledINSERT TITLE OF YOUR FRANCHISE AGREEMENTI dated as of FINSERT DATE FRANCHISE AGREEMENT WAS EXECUTEDI (the"Franchise");and
WHEREAS, theCityhas issuedto theFranchiseHauler a permit,license,approvalor otherauthorization the "Authorization")which allows the FranchiseHauler to provide solidwaste collectionserviceswithin the City; and
WHEREAS, theFranchiseprovidesforthecollectionand disposalof certainmunicipalsolidwaste as describedtherein("FranchiseWaste") generatedwithintheCity;and WHEREAS, the County of Orange (the"County") owns, manages and operatesa Waste Infrastructure System thatispermittedto acceptor processAcceptableWaste fordisposalor diversion;and WHEREAS, theCityand theCounty have heretoforeenteredintoa Waste InfrastructureSystem Enterprise Agreement (the"WISE Agreement"), datedas of March 24, 2026; and WHEREAS, theWISE Agreement detailsresponsibilitiesfordisposalof municipalsolidwaste and may includeprocessingof identifiedOrganic Waste for diversion,generatedwithinthe boundariesof the City,and determinethattheexecutionof theWISE Agreement willservethepublichealth,safetyand welfareof the residents of theCityand County, by maintainingpublicownership and stewardshipover theWaste InfrastructureSystem and providingdisposalratestability,predictableand reliablelong-termdisposalservice,enhanced organicsprocessing to assistthe City in meeting itsorganicsdiversionrequirements,and the continuationof sound environmental management; and
WHEREAS, under the WISE Agreement, the County has agreed to provide long-term disposalof all municipalsolidwaste generatedwithintheCityand may alsoprovideforOrganicWaste processingunder an OSA and theCityhas agreed to exercisealllegal,and contractualpower which itpossessesfrom time to time to deliver or cause thedeliveryof such waste to theWaste InfrastructureSystem; and WHEREAS, the provisionsof the WISE Agreement guaranteecapacityfor the long term disposaland processingof waste atspecifiedratesgeneratedintheCityprovidesignificantbenefitstotheFranchiseHauler; WHEREAS, notwithstandingany Franchise provisionsto the contrary,the FranchiseHauler explicitly acknowledges the aforementionedbenefitsto the City,the County and the FranchiseHauler in providingforthe disposalof allFranchiseWaste to theWaste InfrastructureSystem; and WHEREAS, theCityand theFranchiseHauler desiretoenterintothisAcknowledgment toassurethatthe Cityand theFranchiseHauler willbe entitledtothebenefitsoftheWISE Agreement and toassureconformitywith the waste deliveryobligationswhich have been agreed to by the City under the WISE Agreement through the deliveryof waste by theFranchiseHauler to theWaste InfrastructureSystem; and WHEREAS, theFranchiseHauler'sagreement to deliverFranchiseWaste to theDisposal System under thisAcknowledgment isgiven inconsiderationof theFranchiseHauler'srighttoreceivetheContractRate forsuch disposaland processingasprovidedintheWISE Agreement.

NOW, THEREFORE, inconsiderationof thepremisesand forothergood and valuableconsideration,the receiptand sufficiencyof which ishereby acknowledged,thepartieshereto,intendingtobe legallybound hereby, agree as follows:

1. Capitalizedterms used and not otherwise defined herein are used as defined in the WISE Agreement.

2. The FranchiseHauler hereby waives any rightwhich itmay possessunder applicablelaw to conteston any ground, constitutional,statutory,case law, administrativeor otherwise,(a)the right,power or authorityoftheCounty ortheCitytoenterintoorperform theirrespectiveobligationsunder theWISE Agreement, (b)theenforceabilityagainsttheCounty or theCityof theWISE Agreement, or (c)theright,power or authorityof theCityto deliveror cause thedeliveryof allControllableWaste to theDisposalSystem in accordancewith this Acknowledgment.

3. The Cityand theFranchiseHaulereach herebyrepresentthatthisAcknowledgment has been duly authorizedby allnecessaryactionof theirrespectivegoverningbodies.

4. The Franchise Hauler shall deliver or cause to be deliveredallControllableWaste (includingall Residue from theprocessingby any means, wherever conducted,of ControllableWaste),totheDesignatedFacility in the Waste InfrastructureSystem/DisposalSystem, and shallotherwiseassistthe City in complying with its obligationsunder theWaste DisposalCovenant inSection3.1 of theWISE Agreement.

5. Unlessexpresslyauthorizedby theDepartment,theFranchiseHauler shallonly haulControllable Waste totheDesignatedFacility.

6. The Franchise Hauler shall not haul Controllable Waste to any materialsrecovery facility, composting facility,intermediateprocessingfacility,recyclingcenter,transferstationor otherwaste handling or management facilityunlessthe contractor otheragreement or arrangement between the Franchise Hauler and the operatorof such facilityissufficientin the opinionof the County to assurethatthe Residue from such facility constitutingCityAcceptableWaste (orTonnage equivalencies)and theCityAcceptableWaste transferredby such facilityshallbe deliveredto the DisposalSystem in compliance with theWaste DisposalCovenant.

7. The FranchiseHauler shallpay theContractRate imposed by theCounty forthe disposalof all ControllableWaste, which rateshallbe subjecttopotentialadjustmentnecessaryto reflectthe circumstancesset forthintheAgreement.

8. Nothing inthisAcknowledgment isintendedtorestrictany rightor responsibilityexplicitlygiven the Franchise Hauler in any City Franchise Agreement to recycleCity Acceptable Waste, except as provided in paragraph5 above with respectto Residue from any such recyclingoperations.

9. The obligationsof theFranchiseHauler under thisAcknowledgment shallapplynotwithstanding any provisionof the Franchisewhich may conflictherewith.

10. This Acknowledgment may be enforced by the City by any availablelegal means. In any enforcement actionby the City,theburden of proof shallbe on the FranchiseHauler to demonstratecompliance herewith.

11. This Acknowledgment shallbe infullforceand effectand shallbe legallybindingupon theCity and Franchise Hauler from the date hereof and shall continue in full force and effect until the earlier of (i)the end of theterm of theFranchiseor (ii)theend of theTerm of theWISE Agreement.

12. The City and FranchiseHauler agreethattheCounty shallbe an expressthird-partybeneficiary of thisAcknowledgment, and shallbe entitledto independentlyenforcethe obligationsof the FranchiseHauler hereunder.There shallbe no additionalthirdpartybeneficiariesunder thisAcknowledgement.

13. The FranchiseHauler agreestoassisttheCounty inverifyingtonnage collectedby theFranchise Haulerand providinginformationrequiredby theCounty.The FranchiseHaulerwillprovideupon requestrefuse tonnage collectedwithin the County, and outsidethe County (ifrelevantto confirmingtonnage origination), separatedby jurisdiction,by loadtype(residential,commercial,roll-offbox,etc.),and by facilitytowhich itwas delivered(specifywhich landfillor transferstation).Hauler willprovide customer servicelevelsand routelists.

The FranchiseHaulerwillcooperatewithCounty auditstoverifyreportedoriginoftonnageby making recordsand personnelavailabletotheCounty and/oritsauditors.

IN WITNESS WHEREOF, thepartieshave causedthisAcknowledgment tobe executedby theirduly authorizedofficersorrepresentativesasof day of ,2026.
"CITY"
Signature:

Printed Name:

Title:

APPROVED AS TO FORM:

By
Aaron C. Harp
City Attorney
Date
"FRANCHISE HAULER"
Signature:

Printed Name:

Title:

APPENDIX 5

ORGANIC SERVICES AGREEMENT
Appendix 5

ORGANIC SERVICES AGREEMENT
Between

THE COUNTY OF ORANGE, CALIFORNIA
and
Dated ,2025
CityAuthorizationDate:County AuthorizationDate:

County Notice Address: CityNotice Address:

Director
OC Waste & Recycling
601 N. Ross Street5`hFloor
Santa Ana, CA 92701

ORGANIC SERVICES AGREEMENT
THIS ORGANIC SERVICES AGREEMENT ("OrganicsAgreement"or "OSA") ismade and dated as of the dateindicatedon thecoverpage hereofbetween theCounty of Orange, a politicalsubdivisionof theStateof California (the"County"),and the Citydesignatedon the coverpage of thisAgreement (the"City").County and Citymay hereinafterbe referredtosingularlyas"Party"orcollectivelyas "Parties.".

RECITALS
The County owns, manages and operatesa Waste InfrastructureSystem tomanage municipaland solidwaste generatedwithintheCounty of Orange or importedfrom outsidetheCounty pursuantto contractualagreements.The Waste InfrastructureSystem collectivelyincludesactiveClassIIIsanitarylandfills("County Landfills"),resource recovery,recyclingand organicsprograms, infrastructureand operations,and regionalhousehold hazardous waste collectioncentersand otherwastemanagement relatedsystemsasmay be deemed necessaryby theCounty.

County Landfillsareused forthemanagement ofmunicipalsolidwastepursuanttolegislationincludingbut notlimitedtotheCaliforniaIntegratedWaste Management Act of 1989 (Division30 of theCaliforniaPublicResources Code) (the"Act") and theShort-livedClimate PollutantsReductionAct ("SB 1383").County Landfillsarealsosubject tootherStateand federalregulationsdesignedtoensurethatlandfilloperationsminimizetheimpactsto publichealth and safetyand theenvironment.

Pursuant to Resolution,the County establishedthe Waste Management EnterpriseFund pursuant to Government Code §25261 to ensure that allcosts associatedwith the operationand management of the Waste InfrastructureSystem arefinancedby chargesimposedforservicesprovidedby theDepartmentand arenotfunded by taxrevenue or theCounty General Fund.

The City,intheexerciseof itspolicepower,itspowers under theAct,and otherApplicableLaw, has entered intoa franchiseor otheragreementwith or issuedpermitsor licensesto one or more privatehaulersforthe collection, recycling,diversionand disposalofmunicipalsolidwaste generatedwithintheCity.

A significantportionofmunicipalsolidwastegeneratedwithintheCityhistoricallyhas been and currentlyis deliveredby such hauleror haulerstotheCounty fordisposalintheDisposalSystem.

Since 1997,theCityand theCounty have providedforthe management of municipalsolidwaste through Waste DisposalAgreements ("WDAs"), whereintheCounty agreedtoprovidedisposalcapacityforwaste generated intheCity,and theCity agreed to deliveror cause thedeliveryof waste generatedintheCityto theDisposalSystem, as more specificallysetforthin,and subjectto theterms and conditionsof the WDAs.

Startingin approximately2014, theLegislatureof theStateof Californiapassedseveralpiecesof legislation ("OrganicsLegislation")thatrequiresignificantreductionsin the disposalof Organic Waste. The purpose of the OrganicsLegislationistomandate organicsrecyclingand curtailtheimpactsofclimatechangeby reducinggreenhouse gas emissionssuch as methane. In thisregard,the decompositionof organicmaterialin the State'slandfillswas identifiedas a significantsourceof methane thatcould be reduced.

Priorto the passage of Organics Legislation,Processed Green Material ("PGM") could be utilizedas AlternativeDaily Cover ("ADC") for landfilloperationsand qualifiedfordiversioncredit.However, passage of Assembly Bill1594 resultedinPGM used asADC no longerbeingeligiblefordiversioncreditstartingon January1, 2020.

In additiontothelossof diversioneligibilityforPGM used asADC, SB 1383 requiresa 50% reductioninthe disposalof OrganicWaste by January 1,2020 and a 75% reductionof OrganicWaste by January1,2025. In addition, thelaw requires20% of ediblefood waste be recoveredby 2025.

On April23, 2019, the Orange County Board of Supervisorspassed Resolution 19-031 to respond to the State'sincreasinglandfilldiversionrequirements and identifiedthe need for additionalorganic processing infrastructurein the County and directedthe Department to develop additionalorganicsrecyclinginfrastructureto supporttheregioninmeeting Stateorganicrecyclingmandates.(See Attachment 4) To respond to Organics Legislationrequirements,theCounty has developed an Organics Infrastructurethat iscomprised of organicprocessingfacilitiesto receiveand processOrganic Waste to supportthe State'sOrganic Legislationgoals,promote localrecycling,assistlocaljurisdictionsinmeeting theirorganicdiversionrequirements and correspondinglyconservecapacityintheDisposalSystem.

In theireffortto continuethe conceptsand purposesoutlinedin the WDAs and respond to Organics Legislation,theCityand theCounty desiretoenterintothisOrganicsAgreement, on thetermsand conditionssetforth herein.

With theexceptionof thetermsand organicspecificprovisionsfound inthisOrganicsAgreement, theParties intendthatthe provisionsof the currentlyoperativeWDA and the replacementWISE Agreement thatis being negotiatedbetween theCounty and Cityareanticipatedtobecome operativeon July1,2026,be appliedtothisOSA.

The Cityhas determinedthattheexecutionofthisOrganicsAgreement by theCitywillservethepublichealth, safetyand welfareof theCityby providingenhanced organicsprocessingto assistin the City inmeeting itsOrganics Legislationdiversionrequirements,and thecontinuationof sound environmentalmanagement.

The County has determinedthattheexecutionby theCounty ofthisOrganicsAgreement willservethepublic health,safetyand welfareby providinga stable,predictableand reliablesupplyof organicmaterialand theresulting servicepayment revenue to the Organics Infrastructure,therebyenablingthe County to plan,manage, operateand financeimprovements to the Organics InfrastructureSystem on a prudent and sound long term,businesslikebasis consistentwithitslegaland regulatoryobligationstotheStateand Federalgovernment.

Officialactionapproving thisOrganics Agreement and determining it to be in the public interestand authorizingitsexecutionand deliverywas duly takenby theCounty on theCounty authorizationdateindicatedon the cover page hereof.

Officialaction approving thisOrganics Agreement and determining itto be in the public interestand authorizingitsexecutionand deliverywas dulytakenby theCityon theCityauthorizationdateindicatedon the cover page hereof.

Itis,therefore,agreed as follows:

ARTICLE I DEFINITIONS AND

INTERPRETATION
SECTION 1.1 DEFINITIONS. The definitionsprovided in the WDA and yet to be executed WISE Agreement shallbe incorporatedintothisAgreement. The followingterms shallbe added and have the meanings set forth below.
"AcceptableOrganic Waste" means ResidentialOrganic Waste thatconsistsof Green Material/Wood Waste, AgriculturalMaterial,Manure, VegetativeFood Material,Food Waste and otherorganicmaterialas may be authorized under the County's Compostable MaterialHandling Permits. "Attachment" means an attachmentto thisOSA, as the same may be amended or modified from time to time in accordance with the terms hereof.
"CalRecycle"means theCaliforniaDepartment of ResourcesRecyclingand Recovery,which isa branch of the CaliforniaEnvironmental ProtectionAgency. CalRecycle overseesthe State'swaste management and waste reduction programs. CalRecycle was establishedin 2010 to replacethe CaliforniaIntegratedWaste Management Board and is responsiblefor the enforcement of legislationand regulationsand diversionrequirementsapplicableto the Waste InfrastructureSystem.
"CityAcceptableOrganic Waste" means allAcceptableOrganicWaste which was originallydiscardedby the firstgeneratorthereofwithin the geographicallimitsof the City and Residue Waste from the foregoingwherever produced,whether withingor outsidetheCity.
"CityOrganic Tonnage Limit"themaximum amount of ControllableOrganicWaste thatCounty iscommitted toacceptundertheOrganicServiceCovenant asprovidedin Attachment 3. "Commencement Date"means thedateon which theobligationsof thepartiesheretocommence. "Contract Date" means the firstdate on which this OSA has been executedby both partieshereto. "ControllableOrganicWaste"means allCityAcceptableOrganicWaste withrespecttowhich theCityhas thelegalorcontractualabilitytodeterminetheprocessinglocationand procurementrequirementsastheyrelateto the City'sOrganicsLegislationcompliancerequirements.
"Consumer Price Index" or "CPI" means the Consumer PriceIndex publishedby the Bureau of Labor Statisticsfor Al Urban Consumers; Water and Sewer and Trash CollectionServicesin U.S. City Average (CUSR0000EHG). In theeventtheforgoingindexisno longerpublishedduringtheterm of thisAgreement,such otherindex identifiedby the Bureau of Labor Statisticsas a replacementor otherwisegenerallyacceptedas a replacementshallbe used forpurposesofthisAgreement;and,intheabsencethereof,theCounty Board ofSupervisors shallselectan indexthatitdeterminesmost closelyreflectsthe forgoingand bestimplements the intentof this Agreement.
"InitialTerm" has themeaning specifiedinSection5.1(A) hereof. "Manure/StableBedding Program" means the programs used by the County to mix source separated uncontaminatedhorsemanure and stablebeddingintoitsOrganicInfrastructuretocreateorganicproduct.Currentpermit requirementsset a maximum percentageof 20% manure/stablebedding ("Material")by weight of totalincoming feedstock.County agreementtoacceptMaterialissubjectto payment of the Organic ContractRate,availablecapacity, and compliance with theterms found inAttachment 2.
"OrganicContractRate" has themeaning specifiedin Section4.2 hereof. "Organic DiversionCredit"means creditprovided to a localjurisdictionor entityfor implementingthe diversionof Organic Waste from landfillingthroughspecificactivitiesrecognizedby the Department of Resources Recyclingand Recovery (CalRecycle)includingcomposting,anaerobicdigestion,or othermethods to meet the State's waste diversiongoalsand statutessuch as Assembly Bill939,Assembly Bill341,Assembly Bill1594,Assembly Bill 1826,and SB 1383 throughwaste prevention,reuse,and recycling. "OrganicInfrastructure"means theCounty'sorganicsprocessingfacilitiesand programs used torecycleand promote theprocessingand diversionof Organic Waste intocompost or othermaterialthatqualifiesas diversionunder Applicable Law as describedinmore detailin Attachment 1. "OrganicsLegislation"means organicsrecyclinglegislationincludingAssembly Bill1594, Assembly Bill 1826, SB 1383 and any futurelegislationpertainingtothemanagement and diversionof Organic Waste. "Organic ROWP Procurement Credit"means creditprovidedtoajurisdictiontomeet theirRecovered Organic Waste Procurement Target under SB 1383 by procuringRecovered Organic Waste Products as permittedby CalRecycle.
"OrganicsAgreement" means thisOrganic ServicesAgreement ("OSA") between theCounty and theCityas thesame may be amended or modified from time totime in accordance herewith. "Organic Take-Back Goal" means the programs thatCity and County will work toward to createCity programs thathave thegoalof Citytakingback itsProportionalShare of finishedcompost or otherRecovered Organic Waste Product forlocalapplication.
"Organic Waste" means solidwastescontainingmaterialoriginatedfrom livingorganismsand theirmetabolic waste productsincluding,but not limitedto,food,green material,landscapeand pruning waste,organictextilesand carpets,lumber,wood, paperproducts,printingand writingpaper,manure, biosolids,digestate,and sludgesas defined inTitle14 oftheCaliforniaCode ofRegulations,Section18982(a)(46). "Processed Green Material"("PGM") as definedin Title27, CaliforniaCode of Regulations§20690(b)(3) means any plantmaterialthatiseitherseparatedatthepointof generation,or separatedata centralizedfacilitythat employs methods tominimize contamination.Green materialincludes,butisnotlimitedto,yardtrimmings,untreated wood wastes,paperproducts,and naturalfiberproducts.Green materialdoes not includetreatedwood waste,mixed demolitionormixed constructiondebris,manure, orplantwaste from thefood processingindustry,aloneor blended withsoil.Processedgreenmaterialmay includevaryingproportionsof wood waste from urban and othersourcesand shallbe ground,shredded,screened,sourceseparatedforgrainsize,orotherwiseprocessed.ThisPGM standardisthe standardthatControllableOrganicWaste must meet inordertobe acceptedatCounty'sOrganicInfrastructureunder the OSA.
"ProportionalShare" means 60% of the weight of ControllableOrganic Waste City deliveredby City to County's Organics Infrastructure.
"RecoveredOrganicWaste Product"or "ROWP" means compost,mulch, renewable energy (transportation fuel,electricity,and gas forheating)from anaerobicdigestion,and electricityfrom biomass conversion. "RecycledCityOrganicWaste" means any otherwiseControllableOrganic Waste which isseparatedfrom AcceptableOrganicWaste by thegeneratorthereofand composted by generatorathome, community gardensor other processingand which isnotplaced inFranchiseHauler bin forcollection. "Renewal Term" has themeaning specifiedinSubsection5.1(C)hereof. "ResidentialOrganicWaste" means AcceptableOrganicWaste normally disposedof by or collectedfrom residential(singlefamilyand multi-family)residences.
"ResidualWaste" means any contaminants,inertmaterials,overs,or Acceptable Organic Waste thatcould not be processedattheDepartment'sOrganic Infrastructurethatrequiredtobe disposewithintheDisposalSystem. "Waste DisposalAgreement" ("WDA") means thecurrentlyoperativeagreement between the Partiesforthe disposalof municipalsolidwastethatiscurrentlysetto expireon June 30,2026. With the exceptionof specificor conflictingprovisionsprovided in thisOrganics Agreement, the Partiesagree thatthe terms found in the WDA shallbe appliedtotheinterpretationofthisOSA. For the purpose of interpretationof thisOSA, the Parties also intend that the WDA be read to include terms such as Controllable Organic Waste, where appropriate. "Waste InfrastructureSystem" or "DisposalSystem" means activeClass IIIsanitarylandfills("County Landfills"),closedlandfillsmanaged by theCounty,resourcerecoveryoperations,OrganicsInfrastructure,recycling and organicsprograms, infrastructureand operations,and regionalhousehold hazardous waste collectioncentersand otherwaste management relatedsystemsas may be deemed necessaryby theCounty. "Waste InfrastructureSystem EnterpriseAgreement" or "WISE Agreement" means each of the agreement between thepartiesthatisexpectedtoreplacethecurrentWDA thatissetto expireon June 30, 2026.

SECTION 1.2 INTERPRETATION. In thisAgreement, unlessthecontextotherwiserequires:

ReferencesHereto. The terms"hereby","hereof',"herein","hereunder","herewith",and any similarterms referto thisAgreement, and the term "hereafter"means after,and the term "heretofore"means before,the Contract Date.

Gender and Plurality.Words of themasculinegender mean and includecorrelativewords of thefeminine and neutergendersand words importingthesingularnumber mean and includethepluralnumber and vice versa.

Persons.Words importing persons include firms,companies, associations,generalpartnerships,limited partnerships,trusts,businesstrusts,corporationsand otherlegalentities,includingpublicbodies,aswell as individuals.

Headings.The tableof contentsand any headingsprecedingthetextof theArticles,Sectionsand subsections of thisAgreement shallbe solelyforconvenience of referenceand shallnot constitutea partof thisAgreement, nor shallthey affectitsmeaning, constructionor effect.

No ThirdPartyBeneficiaries.Nothing inthisAgreement isintendedtoconferon haulersorany otherperson otherthan thepartiesheretoand theirrespectivepermittedsuccessorsand assignshereunderany rightsor remedies under or by reasonof thisAgreement.

Counterparts.This Agreement may be executedinany number of originalcounterparts.All such counterparts shallconstitutebut one and thesame Agreement.

ApplicableLaw and Venue. This Agreement has been negotiatedand executed in the Stateof Californiaand shallbe governed by and construedunder the laws of the Stateof California.In the event of any legalactionto enforce or interpretthisAgreement, the soleand exclusivevenue shallbe a courtof competent jurisdictionlocatedin Orange County, California,and the partieshereto agree to and do hereby submit to the jurisdictionof such court, notwithstandingCode of CivilProcedure Section394. Furthermore,thepartiesspecificallyagreetowaive any and all rightstorequestthatan actionbe transferredforadjudicationto anothercounty.

Severability.Ifany clause,provision,subsection,Sectionor Articleof thisAgreement shallbe ruledinvalid by any courtof jurisdiction,then the partiesshall:(1) promptly meet and negotiatea substitutefor such clause, provision,subsection,Sectionor Articlewhich shall,to thegreatestextentlegallypermissible,effectthe intentof the partiestherein;(2) ifnecessaryor desirableto accomplish item (1) above, apply to the courthaving declaredsuch invalidityfora judicialconstructionof the invalidatedportionof thisAgreement; and (3)negotiatesuch changes in, substitutionsforor additionstotheremainingprovisionsof thisAgreement as may be necessaryin additionto and in conjunctionwith items (1) and (2) above to effectthe intentof thepartiesin the invalidprovision.The invalidityof such clause,provision,subsection,Sectionor Articleshallnot affectany of theremainingprovisionshereof,and this Agreement shallbe construedand enforced as ifsuch invalidportiondidnot exist,unlesssuch invalidityfrustratesthe underlyingprimary purpose of theAgreement.

ARTICLE II

REPRESENTATIONS AND WARRANTIES
SECTION 2.1 REPRESENTATIONS AND WARRANTIES OF THE CITY. The City representsand warrants that:
(A) Existence.The City isa generallaw or chartercityor a SpecialDistrictor SanitaryDistrict validlyexistingunder theConstitutionand laws of theState. (B) Due Authorization.The Cityhas duly authorizedtheexecutionand deliveryofthisOrganics Agreement, and thisOrganics Agreement has been duly executedand deliveredby theCity.

SECTION 2.2 REPRESENTATIONS AND WARRANTIES OF THE COUNTY. The County represents and warrants that:
(A) Existence.The County isa politicalsubdivisionof theStateof Californiavalidlyexisting under the Constitution and laws of the State.
(B) Due Authorization.The County has dulyauthorizedtheexecutionand deliveryofthisOSA, and thisOSA has been duly executedand deliveredby theCounty.

ARTICLE III

DELIVERY AND ACCEPTANCE OF

ORGANIC WASTE AND PROVISION OF

ORGANIC PROCESSING SERVICES
SECTION 3.1 DELIVERY OF ORGANIC WASTE.
(A) Organic Waste Covenant. Subjectto the occurrenceof the Commencement Date and throughouttheTerm ofthisOSA, and subjecttoavailableOrganicInfrastructurecapacity,theCityshallexerciseall legaland contractualpower and authoritywhich itmay possessfrom time to time to deliveror cause the deliveryof all ControllableOrganic Waste (up to City'sOrganic Tonnage Limit as provided in Attachment 3) to the Waste InfrastructureSystem in accordancewith theterms of thisOSA. (B) Recycled City Organic Waste.

Non-Mandatory OrganicWaste CityPrograms: The partiesheretoacknowledge theresponsibilityof the City to meet itsown recyclingand landfilldiversiongoalscontainedintheAct and OrganicsLegislation.

Nothing inthisAgreement isintendedor shallbe interpretedtoprohibitor impairtheabilityof theCityto meet such responsibilities,or torestricttherightof theresidents,businessesor organizationsin the City to practicesourceseparation,recycling,compostingor othermaterialsrecoveryactivities,or torestricttheright oftheCitytoconduct,sponsor,encourageorrequiresuch activitiesinany form.No reductionintheamount of ControllableOrganicWaste generatedintheCityand deliveredto the OrganicInfrastructureby or on behalfof the Citywhich may resultfrom any such sourceseparationor recyclingprogram shallcause the City any liabilityhereunder(otherthan potentialadjustmentto the Organic ContractRate as may be negotiatedby thePartiesas authorizedunder thisOSA, and shallnot constitutea breachof thisAgreement.)

2. Mandatory Organic Waste City CollectionPrograms: City shallprovidedata and informationto County regardingCity'smandatory Organic Waste collectionprograms includingbut not limitedto thetonnage of organicscollectedby the City for diversionunder thisOSA. The informationwillbe used to provide educationand outreachforparticipationwiththegoalofminimizingcontaminationand increasingdiversion. (C) Organic Diversion Credit. City shallreceiveOrganic Diversion Credit for City's ControllableOrganic Waste minus any ResidualWaste deliveredby Cityand acceptedby County and processedinto Recovered OrganicWaste ProductattheCounty'sOrganicInfrastructure. (D) OrganicROWP ProcurementCredit.CityshallreceiveOrganic ROWP reportsforfinished recoveredorganicswaste productsprocuredfrom County thatmeets theprocurement requirementsof Title14 of the CaliforniaCode of Regulations,Section 18993.1 et seq. City shallreceiveOrganic ROWP Procurement Credit as follows:

1. County willassistCity indevelopinglocalCityprograms and opportunitiesdesignedto enabletheCityto meet itsown ROWP requirements.

2. Cityshallbe entitledto"takeback" itsProportionalShareof SB 1383 compliant,STA Certifiedcompost, mulch or otherROWP productsfrom County OrganicsInfrastructureand used as ROWP Procurement Credit.

3. County willprovide reportsand allocatecreditassociatedwith City residentROWP pickup as well as commercial landscapersfrom City thatcollectROWP from County Organic Infrastructure.

4. City will be eligibleto receiveROWP Procurement Creditfor excess Acceptable Recovered Organic Waste Product thatCounty isable to market beyond thatneeded forthe County unincorporatedareasor thatisnot otherwisecommitted.(*County makes no guaranteesthatitwillprovideCitywith 100% ROWP Procurement Credit.)
(E) Organic Take-Back Goal. Cityisnot requiredto"takeback" itsProportionalShare of STA Certifiedfinishedcompost,mulch, or otherROWP from theCounty's Organic Infrastructure,however Cityand County willwork toward creatingCity programs thathave the goal of City takingback itsProportionalShare of finished compost or otherRecovered Organic Waste Product forlocalapplication("OrganicTake-Back Goal")tomeet City's ROWP procurement requirements.
(F) Procurement of AdditionalROWP. Pursuant to terms agreeableto both Parties,City may requestto procureRecovered Organic Waste Product in additionto itsProportionalShare withinthe same Contract Year.
(G) OSA Conditions.As a conditionof participatingin the County's Organics Infrastructure, City agreesto thefollowingterms:

1. All ControllableOrganic Waste deliveredto theCounty's Organics Infrastructureshall meet thestandardsassetforthinAttachment2;

2. CityoritsFranchiseHaulershallpay theOrganicsContractRate forallOrganic Waste deliveredtotheCounty'sOrganicInfrastructureforprocessingintoRecovered Organic Waste Product;

3. Cityshallprovideinformationto County on a quarterlybasis thatidentifieswhere ControllableOrganicWaste beingdeliveredto theCounty'sOrganic Infrastructure originatedand shallensurethattheorganicmaterialbeing deliveredmeets the definition of CityAcceptableOrganicWaste.

4. Bulk ROWP: Cityshallbe entitledto arrangeforthe Take Back (atCity cost)from County Organic Infrastructurecompost,mulch and otherRecovered Organic Waste Productinbulkform freeofcharge.

5. Non-Bulk ROWP: County may establishseparatefees for provision of non-bulk materialincludingbutnot limitedtobagged materialor compost wattles.City shallbe entitledto arrangefortheTake Back ofNon-Bulk ROWP atCity cost.

6. City's ProportionalShare shallbe calculatedas 60% of the weight of Controllable OrganicWaste CitydeliverstoCounty'sOrganicsInfrastructureby City. (H) No Rightof OrganicWaste Substitution.Nothing in thisAgreement shallauthorizeor entitlethe Cityto deliver,or causethedeliverytotheCounty'sOrganicInfrastructure,AcceptableOrganic Waste originatingfrom or generatedoutsidethejurisdictionof theCity,nor obligatetheCounty toreceiveor disposeof any such Acceptable Organic Waste intotheWaste InfrastructureSystem.The Cityshallnotassigninwhole orinpartits rightto deliveror cause tobe deliveredControllableOrganic Waste totheCounty hereunder,and shallnot permit any AcceptableOrganic Waste originatingfrom or generatedoutsidethe jurisdictionof the City to be substitutedfor ControllableOrganicWaste forany purposehereunder.

SECTION 3.2 PROVISION OF ORGANIC PROCESSING SERVICES BY THE COUNTY. (A) Organic ServiceCovenant.Commencing on the Commencement Date, the County shall provideorcausetheprovisionoftheserviceofreceivingand processingof City'sControllableOrganicWaste (up to theCityOrganicTonnage LimitprovidedinAttachment3) at the County's Organics Infrastructureas describedin more detailin Attachment 1. The County shallexerciseallreasonable effortsto minimize the costs incurredin complying with the Organic Service Covenant consistentwith prudent solidwaste management practiceand environmentalconsiderationsand under ApplicableLaw.
(B) ReceiptofControllableOrganicWaste. Upon acceptanceof theControllableOrganic Waste thatmeets thePGM standardsprovidedinAttachment 2,County shallprocesstheOrganic Waste intocompost,mulch or otherROWP as specifiedinTitle14 of theCaliforniaCode of RegulationsSection 18993.1 (C) Educationand Outreach. The Department willassistthe City and itshaulerin theirefforts on Organic educationand outreachwith the goal of the Citymeeting itsorganicdiversionand ROWP procurement requirements.
(D) Designated Facilities.County and City willcoordinatein determiningthe primary organic processingfacilitiesand tonnages (asreflectedin Attachment 1) used forreceivingand processingof Controllable OrganicWaste. The Department shallimmediatelyadvisetheCityby telephoneof any situation,eventor circumstance which resultsinthepartialor complete inabilityof theCounty to receiveControllableOrganic Waste atany particular County Organics InfrastructurewithintheWaste InfrastructureSystem, itseffecton theCounty's abilitytoperform its obligationshereunder,and the County's best estimateof the probable duration.The Department shallconfirm such advice inwritingwithintwenty four(24)hours of theoccurrenceof any such inability.The County shalluse itsbest effortsto resume normal operationof theOrganicsInfrastructureprimarilyused by theCityas soon as possible.In the event a situation,event or circumstance resultsin thepartialor complete inabilityof theCounty toreceiveControllable Organic Waste at any particularCounty Organics Infrastructurewithinthe Waste InfrastructureSystem the County shallhave therighttoredirectControllableOrganicWaste to anotherlandfillor County OrganicsInfrastructurewithin theWaste InfrastructureSystem forthedurationof the situation,event or circumstance;In no event shallthe County be requiredto accept ControlledOrganic Waste ifitdoes not have sufficientpermittedorganicprocessingcapacity withintheWaste InfrastructureSystem.
(E) Compliance with Service Covenant Not Excused for any Reason. Commencing on the Commencement Date,and subjecttothetermsof thisAgreement,theobligationsoftheCounty todulyobserveand comply withtheOrganicServiceCovenant,inaccordancewithApplicableLaw, shallapplycontinuouslyand without interruptionfortheTerm of thisOSA. In the event thatany Change inLaw, situation,eventor otherUncontrollable CircumstanceimpairsorprecludescompliancewiththeOrganicServiceCovenant by themeans ormethods thenbeing employed by theCounty,theCounty shalluse besteffortsto implement alternativeor substitutemeans and methods to enableitto satisfytheterms and conditionsof theServiceCovenant.Intheeventthata Change inLaw precludes the County from complying with such covenantswith themeans ormethods thenbeingemployed and from utilizing any alternateorsubstitutemeans ormethods ofcompliance,theCounty shallcontinuouslyuse allreasonableeffortsto effectuateexecutive,legislativeorjudicialchange in or relieffrom the applicabilityof such law so as to enable the County lawfullytoresume compliancewithsuch covenantsas soon aspossiblefollowingtheChange inLaw.

County failureto duly observeand comply with theOrganicServiceCovenantdue to itseffortsto comply with ApplicableLaw, shallnot constitutea breachunder thisOrganicsAgreement,and shallexcuseCountyperformanceto theextentnecessarytocomplywithApplicableLaw.

If the alternativeor substitutemeans and methods proposedfortheCounty toobserveand comply withthe Organic ServiceCovenantaremore costlythanthepreviouslyused means and methods,thePartiesshallnegotiatea mutually agreeablenew Organic ContractRate. IfthePartiesareunabletoagreeon a new OrganicContractRate,the Parties may terminatethisagreementwithoutpenaltywithninety(90) days notice.

SECTION 3.3 COUNTY RIGHT TO REFUSE ORGANIC WASTE.
(A) Rightof Refusal.Notwithstandingany otherprovisionhereof,the County may refuse deliveryof:
(1) Hazardous Waste;
(2) AcceptableOrganicWaste deliveredby Citybutoriginatingfrom or generatedoutside thejurisdictionoftheCity;
(3) AcceptableOrganic Waste deliveredinexcessof theCityOrganicTonnage Limit listed in the Attachment 3;
(4) AcceptableOrganicWaste inexcessofpermittedlimits;
(5) AcceptableOrganicWaste thatwould resultinCounty violatingApplicableLaw; (6) ControllableOrganic Waste thatdoes not meet therequirementsfound in Attachment 2; SECTION 3.4 COUNTY PROVISION OF OTHER ORGANIC WASTE DIVERSION SERVICES. (A) Food Waste Processingand Diversion. County isin theprocessof evaluatingthe options and feasibilityof development of a Commercial Food Waste ProcessingInfrastructure.Ifdeveloped,City willbe provided an opportunitytoparticipateinthisserviceon terms separatelyagreed toby theParties. (B) EdibleFood Recovery Programs. County isin theprocessof evaluatingthe optionsand feasibilityof development of regionalCounty-wide ediblefood recoveryprograms to assistCitiesinmeeting State mandated goals.The intentofEdibleFood Recovery toaddressthefood hierarchyand wasted food scaleon a regional levelthroughcollaborationof alljurisdictions,key local,Stateand federalstakeholders,the non-profitsectorand businesssector.Cityagreestocooperatewith County effortsand collaborateon dataanalysisand reportingtoprovide jurisdictionsreportsforcomplianceunder SB1383.
(C) SeparateCity -County DiversionServiceAgreements.Nothing in thisAgreement is intendedtolimittherightoftheCountytoenterintoa separateagreementwiththeCityoranyotherperson,jurisdiction, orentitytoprovidesourcereduction,materialsrecovery,recycling,compostingor otherwaste diversionservices.

ARTICLE IV

ORGANIC CONTRACT RATE
SECTION 4.1 CHARGING AND SECURING PAYMENT OF ORGANIC CONTRACT RATE.

The City acknowledges thatthe County shallhave the rightto charge and collectan Organic ContractRate for the acceptanceand processingofControllableOrganicWaste deliveredtotheOrganicInfrastructureby CityoritsFranchise Hauler.CityacknowledgesthattheCounty shallhave therighttoestablishaspartoftheoperatingrulesand regulations reasonablemeasurestosecurethepayment ofallOrganicContract Rates.

SECTION 4.2 ORGANIC CONTRACT RATE.
(A) EstablishmentofContractRate.The OrganicContractRate payableby each Cityor FranchiseHaulershallbe $67/Tonup totheCityOrganicTonnage Limit. (B) SpecialChar. NotwithstandingSection4.2(A),theCounty shallhave therighttoimpose specialchargesforitemssuchasbagged materialor compost wattles;new or expanded services;or receiptof hard to handlematerials,such asbulkymaterials,constructionand demolitiondebris,treestumps,biosolidsand sludge.Such specialcharges shallbe calculatedto reflectthe reasonableincrementalcoststotheCountyofprovidingthe new or expanded servicesor acceptingsuch hardtohandlematerials. (C) Escalation.

1. Annual CPI Adjustment:The OrganicsContractRateshallbe adjustedeach July1, beginning2027.The changewillbe equaltothepercentagechange in the Consumer PriceIndex - Consumer Price Index for Al Urban Consumers: Water and Sewer and Trash CollectionServicesin U.S. City Average (CUSR0000EHG) asmeasuredfrom theOctobertwentyone (21)months priorto therateadjustmentto theOctober immediatelyprecedingtherateadjustment.In theeventthatthe change in the change in CPI as describedabove is negativeratherthanpositive,no rateadjustmentwillbe made forthatyear.

OrganicContractRateTrue-up:County willnotifyCitypriortoApril30,2029 (andeverythree(3)yearsthereafter) and advise whether actual inflationrate since execution shouldbe frozenfora periodoftime(incircumstanceswhere DepartmentrevenuesexceedDepartmentFullCostRecovery needs)ortodeterminewhethertheOrganicContract Rate shouldbe increasedbeyond CPI as describedabove (incircumstanceswhere Department costsexceed CPI) to ensurethatDepartmentrevenuesmeet FullCostRecovery.

2. Adjustment Resultingfrom IncreasedFees: In additionto the otheradjustments specifiedherein,the Organic ContractRate shallbe automaticallyadjustedtoreflectthe impositionof new fees or increasesinexistingfeesrelatingtotheCounty'sprocessingof ControllableOrganicWaste imposed by State,federal orotheragencies.The County shallprovidenoticeof any increasepursuanttothisSectionas soon as practicableafter becoming aware of theimpositionof any feesdescribedabove.

ARTICLE V
TERM
SECTION 5.1 EFFECTIVE DATE AND TERM.
(A) InitialTerm. This Organic ServicesAgreement shallbecome effective,shallbe infullforce and effectand shallbe legallybindingupon theCityand theCounty from theContractDate and shallcontinuein full force and effectuntilJune 30, 2036, unless earlierterminated in accordance with itsterms, in which event the Term shallbe deemed tohave expiredas of thedateof such termination. (B) Bi-AnnualOpener. Inlightofthesignificantchangesinlaw by theCaliforniaLegislature toaddressclimatechange,thePartiesagreetomeet atleastbi-annuallyorearlierattherequestof County to review theOrganic ContractRate and discusstheneed foradditionalinvestmentintotheOrganicInfrastructureto respond to existingor new legislativerequirements,diversionrequirements,provisionof new services,or othermattersof mutual concern to the Parties.
(C) OptiontoRenew. ThisAgreement shallbe subjectto renewal by mutual agreement of the Parties,on or beforeJune 30, 2036 foran additionalterm of 10 years(the"Renewal Term") on thesame termsand conditionsas areapplicableduringtheInitialTerm hereoforon amended termsasmay be mutuallyagreedto by the Parties.The City shallgive the County writtennoticeof itselectionto renew thisAgreement on or beforeJune 30, 2034. Ifthepartiesdo not execute a renewal of thisAgreement priorto June 30,2036 itshallexpire.

ARTICLE VI

GENERAL PROVISIONS
SECTION 6.1 NOTICES. Any noticeorcommunicationrequiredorpermittedhereundershallbe inwriting and sufficientlygivenifdeliveredinpersonorsentby certifiedorregisteredmail,postageprepaid,tothenoticeaddress of therespectivePartiessetforthon thecoverpage of thisAgreement.Changes intherespectiveaddressesto which such noticesmay be directedmay be made from time totimeby any Partyby noticetotheotherParty.

SECTION 6.2 ATTORNEYS FEES. In any actionorproceedingto enforceor interpretany provisionof thisAgreement,eachPartyshallbeartheirown attorney'sfees,costsand expenses.

SECTION 6.3 RELATIONSHIP OF THE PARTIES. Neitherpartyto thisAgreement shallhave any responsibilitywhatsoeverwithrespecttoservicesprovidedorcontractualobligationsor liabilitiesassumed by theother partyhereto,whetheraccrued,absolute,contingentor otherwise,or whether due or to become due. The County isan independentcontractoroftheCityand nothinginthisAgreement shallbe deemed toconstituteeitherpartya partner, agentor legalrepresentativeof theotherpartyor tocreateany fiduciaryrelationshipbetween theparties.

SECTION 6.4 NO CONSEQUENTIAL OR PUNITIVE DAMAGES. In no eventshalleitherPartyhereto be liabletotheotheror obligatedinany manner topay totheotherany special,incidental,consequential,punitiveor similardamages based upon claimsarisingout of or in connectionwith theperformanceor non- performanceof its obligationsor otherwiseunder thisAgreement, or the materialinaccuracyof any representationmade in this Agreement, whether such claimsarebased upon contract,tort,negligence,warrantyor otherlegaltheory.

SECTION 6.5 AMENDMENTS. NeitherthisAgreement nor any provisionhereof may be changed, modified,amended or waived exceptby writtenagreementdulyauthorizedand executedby both Parties.

SECTION 6.7 NOTICE OF LITIGATION. Each Partyshalldeliverwrittennoticeto the otherof any LegalProceedingtowhich itisa partyand which questionsthevalidityor enforceabilityofthisAgreement executed by theCityor theCounty or any Legal Entitlementissuedin connection herewith.

SECTION 6.8 FURTHER ASSURANCES. At any and alltimesthe City and the County so faras may be authorizedby law shallpass,make, do, execute,acknowledge and deliverany and every such furtherresolutions, acts,deeds, conveyances,instruments,assignments,transfersand assurancesas may be necessaryor reasonably requestedby theotherinorderto give fulleffectto thisAgreement.

SECTION 6.9 ASSIGNMENT OF AGREEMENT. Neither thisAgreement nor any of the rightsor obligationshereundermay be assignedby eitherPartyheretowithoutthepriorwrittenconsentof theotherParty,which may be withheld in the otherParty'ssole discretion.Notwithstandingthe foregoing,eitherPartymay assignthis Agreement toanotherpublicentity,subjecttothereasonableconsentof theotherparty.In such circumstancestheParty not requestingthe assignmentshallhave therightto demand assurancesof the financial,technicaland legalabilityof theproposed assigneetoundertaketheresponsibilitiesand obligationsof theassigningParty.

SECTION 6.10 BINDING EFFECT. This Agreement shallbind and inureto thebenefitof thePartieshereto and any successoror assigneeacquiringan interesthereunderconsistentwith theprovisionsof Section6.9hereof.

SignaturePage toFollow
IN WITNESS WHEREOF, COUNTY and CITY have caused thisAgreement tobe executedby theirduly authorizedofficersorrepresentativesasoftheday and year firstabove written.

COUNTY OF ORANGE
Date By
Director,OC Waste & Recycling
APPROVED AS TO FORM:

COUNTY COUNSEL

ORANGE COUNTY, CALIFORNIA
I
Date
Date By
[NAME]
City Representative
City of XX
By
[NAME]
CityRepresentative
City of XX
APPROVED AS TO FORM:

By
CityAttorney
Date
Attachment 1

COUNTY OF ORANGE ORGANIC INFRASTRUCTURE
Attachment 1

COUNTY OF ORANGE ORGANIC INFRASTRUCTURE
The County ofOrange owns and operatesa network ofthreecommercial organicprocessingfacilitiesco-locatedat eachoftheactivelandfills.Each oftheorganicprocessingfacilitieshave theabilitytoreceiveorganicmaterialand to produce organicproductsforcitiestomeet theirTake-Back requirementsspecifiedwithinthisagreement. Products produced attheorganicprocessingfacilitiesmeet CaiRecycle'sSB 1383 procurement requirementand arecertified undertheUS Composting Council'sStandardofTestingAssurance (STA) Program. Product offeringsinclude compostand compostedmulch. Additionalproductsmay be offeredas determinedby theCounty.

A summary of each of theorganicprocessingfacilitiesislistedbelow:

Valencia Greenery (Co-Located at Olinda Alpha Landfill) 1942 N. Valencia Avenue
Brea, CA 92823
PermittedMaximum Tonnage (Open Windrow): 94 tonsperday
Proposed PermittedMaximum Tonnage (Covered AeratedStaticPile):228 tonsper day PermittedHoursofOperation:Monday throughSaturday6:00 am to 4:00 pm AncillaryOperationHours:24 hoursperday/7daysa week
Bee Canyon Greenery (Co-Located at Frank R. Bowerman Landfill) 11002 Bee Canyon Access Road
Irvine,CA 92602
PermittedMaximum Tonnage (Open Windrow): 210 tonsper day Proposed PermittedMaximum Tonnage (Covered Aerated StaticPile):876 tonsper day PermittedHours ofOperation:Monday throughSaturday7:00 am to 5:00 pm AncillaryOperationHours:24 hoursper day/7 days a week
Capistrano Greenery (Co-Located at Prima Deshecha Landfill) 32250 Avenida La Pata
San Juan Capistrano,CA 92675
PermittedMaximum Tonnage (Open Windrow): 204 tonsper day Proposed PermittedMaximum Tonnage (Covered Aerated StaticPile):536 tonsper day PermittedHours of Operation:Monday throughSaturday7:00 am to 5:00 pm AncillaryOperationHours:24 hoursper day/7days a week
This listmay be modified/expandedatthediscretionof theCounty.

Attachment 2

SPECIFICATIONS FOR CONTROLLABLE ORGANIC WASTE AS PROCESSED GREEN WASTE

MATERIAL (PGM) AT COUNTY ORGANIC INFRASTRUCTURE
Attachment 2

SPECIFICATIONS FOR CONTROLLABLE ORGANICE WASTE AS PROCESSED GREEN WASTE

MATERIAL (PGM) AT COUNTY ORGANIC INFRASTRUCTURE

DESCRIPTION
ProcessedGreen Material(PGM) consistsofyardwaste,grassclippings,leaves,treetrimmingsand plant-based materials which have been sorted to remove contamination and processedby shreddingorgrinding.PGM shouldnot containmanure, stablewaste or petwaste,which can create odors.

ProcessedGreen Materialisdefinedasfollowing(CaliforniaCode of Regulations,Title27, Division2, Subdivision1, Chapter3,Subchapter4,Section20690 [b][3]):

ProcessedGreen Material- means any plantmaterialthatiseitherseparatedatthepointof generationor separatedata centralizedfacilitythatemploys methods tominimize contamination.Green materialincludes,but is not limitedto,yard trimmings,untreatedwood wastes,paper products,and naturalfiberproducts.Green material does not includetreatedwood waste,mixed demolitionormixed constructiondebris,manure,orplantwastefrom thefood processingindustry,aloneorblendedwith soil.Processedgreenmaterialmay includevaryingproportions of wood waste from urban and other sources and shallbe ground,shredded,screened,sourceseparatedforgrain size,or otherwiseprocessed.

CONTAMINANT DEBRIS
The PGM should be free from allcontaminant debris (glass,plastic,filmplastic,metals,etc.)as wellas saltand deleteriousmaterialsuchasclods,coarseobjects,rocks,inertdebris,and MaterialRecovery Facility("MRF") fines.

County personnelvisuallyinspectthePGM loadsas theycome in,making surethatthespecificationsaremet and to determineiftheloadsarecontaminated(i.e.,mixed with paper,plasticsand othertrash.)Iftheloadsappear to have unacceptablecontaminationin excess of 0.5% eitherby weight or volume, thePGM loadswillnot be allowed into the Organic Infrastructureand theCityand/orhaulerwillbe notifiedthatcontaminatedPGM loadsareunacceptable.The PGM willbe deemed as municipalsolidwaste and theCityand/orhaulerwillhave theoptiontotakethematerialto the landfillfordisposalorbe returnedtothehauler'sfacilityforadditionalprocessing.For materialthatisphysically dumped attheunloadingareaand isdeemed unacceptableby OC Waste & Recyclingstaff,thematerialwillbe re- loadedintothetransfer.vehicleforreprocessingathauler'sprocessingfacilityor senttothelandfillfordisposal.Hauler willbe charged thecurrent"Hard-to-Handle"feefor re-loadingservicesand disposalofunacceptablematerial.

SIZE
The particlesizeof thePGM acceptableisbetween %z-inchand 3 inchesin lengthbetween 'A-inchand 1 inch in width and between'A-inchand 1 inchinthickness.No particleshould exceed 3 inchesin any dimension.

MOISTURE CONTENT
The moisturecontentofthePGM shouldbe intherangeof 50-60 percent.IfthePGM's moisturecontentis unacceptableand cannotbe receivedforprocessingattheCounty's Organic InfrastructureFacilities,thematerialwill be re-loadedintothetransfervehicleforreprocessingathauler'sprocessingfacilityor sentto the landfillfordisposal.

The haulerwillbe chargedthecurrent"Hard-to-Handle"feeforre-loadingservicesand disposalofunacceptable material.

FOOD WASTE
Residentialfood waste mixed withPGM as partof a cityorganiccollectionprogram isacceptableprovidedthatthe food wasteisfreeofcontaminantdebris(glass,plastic,food packaging,non-compostable silverware,soilednapkins, etc.).No commercial or source-separatedfood waste willbe acceptedexceptforcaseswhere theCounty has entered intoan agreementwith a Citytoacceptspecificsourceseparatedorganicmaterialas AdditionalFeedstock as described below.

SOURCE SEPARATED MANURE
Subjectto availablecapacity,City and/orHauler may bring non-residential,source separatedmanure and stablebedding pursuanttothefollowingManure/StableBedding Program requirements:

1. MaterialQuantity: manure/stablebedding must be uncontaminated which means free of any hazardous materials,food waste packaging,plastics,glass,and any largebulky items and inertmaterialsthatneed to be furthersizedor removed forcomposting. ("Material")

2. MaterialVolume: County and City/Haulerwilldeterminethe anticipatedvolume of Materialto ensure thatthe County'sOrganicInfrastructurehas sufficientcapacitytomanage theproposed amount of Material.

3. Material will be load checked to determine if itmeets theestablishedqualitystandards.Ifcontaminantsexceed

0.5% (by weight or volume), the load isdeemed contaminated and not meeting qualitystandardforuse in the Manure/StableBedding Program.

4. Materialthatisdeemed unacceptablewillbe subjectto the feesestablishedby OCWR forthismaterialtype.

Materialthatdoes not meet theestablishedqualitystandardswillbe charged as follows:
a. If determined not to meet qualitystandardsbefore Materialisunloaded, standarddisposal rateswillapply.
b. Ifdeterminednottomeet qualitystandardsafterMaterialisunloaded (orpartially unloaded),hard-to-handledisposalrateswillapply.

5. MaterialDelivery:
a. All Material deliveries will be scheduled and coordinated with OCWR priortodelivery.Any changes to materialdeliveryquantitiesor days willbe coordinatedwith OCWR priorto making thechange.
b. While OCWR willremain as flexibleas possibleon timing of deliveries,materialdeliveries willbe limitedtoMonday throughFridaybetween 8:00 am and 2:00 pm and subjecttoholiday schedules.Should thedeliverytimeschange,thenOCWR shallgive two (2)days priornotice of thedeliverytime change.
c. Upon delivery,OCWR staffwillrecordexacttonnage,name of hauler/transporterprovider, and note distinguishingcharacteristicsof feedstockand otherpertinentinformation. d. Deliveriesmade withoutOCWR priorapprovalmay be refusedor chargedattheestablished rate.
e. OCWR reservesthe rightto deny a requestto deliverforany reason.(i.e.,OCWR does not guaranteethatitwillacceptmanure/stablebedding under thisprogram.Instead,OCWR will acceptMaterialbased on itsoperationalneed and willmake every effortto accommodate City's/haulerMaterialexceptwhen a reductionor stoppageisneeded.)

ADDITIONAL FEEDSTOCK
The County atitsdiscretionmay acceptadditionalmaterialtypessuch as food waste and manure based on availability and permittingconditionsateach of theCounty'sorganicprocessingfacilities.The County willwork withCityto identifythespecificationsforacceptingthematerialtypesincludingschedulingofdeliveriesand quantities.

CHANGES TO SPECIFICATIONS
County reservestherighttomodify theSpecificationsfound inthisAppendix due toa change inlaw orregulationor in considerationof operationalor Organic ProcessingInfrastructureneeds.County shallprovide90 daysnoticeregarding changes to thisAppendix.

Attachment 3

CITY ORGANIC TONNAGE LIMIT
Attachment 3

CITY ORGANIC TONNAGE LIMIT
The City Organic Tonnage Limit listedintheAttachment isthemaximum amount of ControllableOrganicWaste that County iscommittedtoacceptunder theOrganicServiceAgreement.

Jurisdiction Designated Greenery City Organic Tonnage Limit Daily Limits Monthly Limit2 Annual
Limit
TBD tons tons tons
TBD
TBD
TBD

1.DailyLimit includesup to20% by weight of sourceseparatedmanure and stablebedding.

2.IntheeventCitydeliverslessthantheirmonthly limit,County may allocateunused Citycapacityatitsdiscretion.

Attachment 4

ORGANIC INFRASTRUCTURE RESOLUTION
RESOLUTION NO. 19-19-031

RESOLUTION OF THE BOARD OF SUPERVISORS OF ORANGE COUNTY, CALIFORNIA DIRECTING OC WASTE &

RECYCLING TO UTILIZE EXISTING COUNTY RESOURCES TO RESEARCH OPPORTUNITIES AND DEVELOP STRATEGIES TO ACHIEVE STATE IMPOSED ORGANICS RECYCLING MANDATES.

WHEREAS, in 1989 the State of Californiaenacted AB 939 (Sher),The IntegratedWaste Management Act, requiringjurisdictionsto diverta minimum of 50% ofwaste then goingto landfills; WHEREAS, in 2014 the State of Californiaenacted AB 1594 (Williams,Chapter 719,Statutesof 2014), mandating thatas ofJanuary1,2020,the use ofgreen materialas alternativedailycover willno longerconstitute diversionthrough recyclingand willinsteadbe considereddisposalInterms of measuring a jurisdiction'sannual 50% per capitadisposalrate;
WHEREAS, In2018,orange County citiesdeliveredapproximately513,000tonsofprocessedgreen materialto Orange County landfillsacceptedforfreetobe used as alternativedailycover,savingthe residentsof Orange Countymore than $17,000,000overthecomparablecostof disposal; WHEREAS, beginningin2020, due to the new Influxofpreviouslydivertedprocessed green material severalOrange County citieswillhave difficultymeeting the mandated 50% diversionratedue to a lackof organics processinginfrastructurewithinOrange County;
WHEREAS, in 2016 the State of Californiaenacted SB 1383 (Lara,Chapter 395,Statuesof2016), establishingmethane emissionsreductiontargets,to be achievedviaeven greaterdiversionoforganicsfrom landfills,ina statewide effortto reduce emissionsofshort-livedclimatepollutants; WHEREAS, the statecontinuallyincreasesthe type and volume oforganicsthatmust be divertedfrom landfillsand recycled;
WHEREAS, transportationisthe most significantcostcomponent to managing any waste stream,and the County Landfillsystem iswellsuitedto receiveand processorganicmaterial; WHEREAS, the Orange County Board ofSupervisorshas consideredthe needs ofOrange County and the need foradditionalorganicrecyclinginfrastructure;
WHEREAS, the Orange County Board ofSupervisorssupportsprotectingconsumers viathe creationofan organicsrecyclinginfrastructurewithinOrange County;
WHEREAS, the Orange County Board ofSupervisorsiscommitted to fulfillingitslegalobligationsto meet state mandates in a manner that isleast burdensome to taxpayers; NOW, THEREFORE BE ITRESOLVED, the Orange County Board ofSupervisorsacknowledgesthatthe County has an interestinutilizingCounty resourcestosupporttheregionindevelopingadditionalorganics recyclinginfrastructure.The Board HEREBY ORDERS as follows:

SECTION 1.OC Waste & Recycling(OCWR) shallresearchopportunitiesand use availablecountyresources to developstrategiesand programs toachievestate-imposedorganicsrecyclingmandates forCounty unincorporatedareasand where feasibleleverageand extend similaropportunitiesto serveotherpublicagencies and incorporatedportionsof Orange County.

SECTION 2.OCWR shallwork transparentlywith allstakeholdersto achievethe above-statedgoals.

SECTION 3. AuthorizeOCWR toseek opportunitiesfororganicsrecyclinggrantsto helpoffsetthe costsof organicsrecyclingresearch,program implementationand otherrelatedexpenses.OCWR shallcomplywithCounty policiesinapplyingforand acceptinggrants.

ResolutionNo. 19-031,Item 48
The foregoingwas passedand adoptedby thefollowingvoteoftheOrange County Board of Supervisors,on April23,2019,towit:

AYES: Supervisors: LISA A. BARTLETT, ANDREW DO, MICHELLE STEEL DONALD P. WAGNER. DOUG CHAFFEE
NOES: Supervisor(s):

EXCUSED: Supervisor(s):

ABSTAINED: Supervisor(s):

STATE OF CALIFORNIA )

COUNTY OF ORANGE )
I,ROBIN STIELER, Clerk ofthe Board of Orange County, California,hereby certifythat a copy of thisdocument has been deliveredto the Chairman of the Board and that the above and foregoingResolutionwas duly and regularlyadopted by the Orange County Board ofSupervisors IN WITNESS WHEREOF, I have heretosetmy hand and seal.

ROB[N IELER
Clerk of the Board
CountyofOrange,StateofCaltfomia
Resolution No: 19-031
Agenda Date: 04/23/2019
Item No: 48
Icertifythatthefocegomgisa trueand correctcopyof the
Resolutionadoptedby theBoardofSupervisors,OrangeCounty, State of California
!s9
Robin Slider.Clerkof theBoardofSupervisors
By.

Deputy

Newport Beach City CouncilMarch 24, 2026

Newport Beach City Council
March 24, 2026