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Solid Waste Disposal Agreement SOLID WASTE DISPOSAL INTERLOCAL AGREEMENT This Solid Waste Disposallnterlocal Agreement is entered into pursuant to K.S.A. 12- 2908 this l~ day of October, 2008, by and between THE CITY OF SALINA, KANSAS (the "City") and Slechta Enterprises (the "Customer"). Recitals A. The City owns and operates a solid waste disposal area known as the Salina Municipal Solid Waste Landfill Facility ("Landfill") located at 4292 S. Burma Road in Saline County, Kansas. B. The City has been designated as the Solid Waste Management Planning Authority for Saline County, Kansas by interlocal agreement with Saline County dated January 24, 1994, in accordance with K.S.A. 65-3405(b). C. Consistent with and in furtherance of the Kansas waste management policy set forth in K.S.A. 65-3401, the City in Resolution No. 00-5606 adopted June 5, 2000, expressed its desire to establish certain general policy guidelines to be used in consideration of acceptance, at the Salina Landfill, of Municipal Solid Waste ('Waste") generated outside of Saline County, but within the City's Primary and Secondary Trade Areas. D. The City has offered to the Customer and the Customer desires to accept the opportunity to dispose Waste generated in Ellsworth County (the County) in the Landfill at a discounted rate based upon the conditions of (i) disposal of a minimum annual tonnage of Waste and (ii) a commitment for a specified number of consecutive years. IN CONSIDERATION of the mutual promises and covenants set forth herein, the parties agree as follows: 1. Authorization. The City authorizes the Customer to dispose of Waste generated in the County to be deposited at the Landfill pursuant to the terms and conditions of this Agreement. 2. Term. This Agreement shall be effective commencing November 1, 2008 (the "Commencement Date"), and shall remain in effect for a term of five (5) years and one day, ending November 1, 2013, unless otherwise terminated as provided in this Agreement. For purposes of this Agreement, November 1, 2009 and each November 18t thereafter shall be regarded as the "Anniversary Date." 3. Charges During Transition Period between Effective Date of Contract Between the date of this agreement and October 31, 2008, due to a transition between Interlocal Disposal Agreement Contracts, the Customer will be charged the current Landfill base rate of $29.00 per ton. As of November 1, 2008, the base rate will adjust to $30.00 per ton. 1 --- r 4. Charges based upon base rate. The charges for disposal of Waste generated in the County shall be based upon the regular per ton rate charged to Saline County residents for disposal of Waste at the Landfill, as those charges may be amended from time to time by resolution of the City's governing body (the "base rate"). Effective November 1, 2008, the base rate will be $30.00 per ton. 5. Qualification for discounted rate. For purposes of qualification for the discounted rate, the Customer agrees and covenants that it shall dispose of no less than 1,000 tons of Waste for each of the twelve (12) month periods preceding each Anniversary Date during the term of this Agreement (the "tonnage requirement"). On that basis, the Customer shall qualify for a per ton charge of 98.3% of the base rate (the "discounted rate"). (For example: 98.3% of the $30.00 base rate in effect November 1, 2008 results a charge of $29.50 per ton.) The discounted rate will apply to Waste generated in the County and delivered for disposal to the Salina Landfill by haulers specified in writing by the Customer. To the extent feasible, the City will credit toward the tonnage requirement all Waste generated in the County and delivered for disposal to the Salina Landfill, whether delivered (a) by the Customer's designated haulers or (b) by any others who deliver Waste to the Salina Landfill for disposal by means of a vehicle with a license tag indicating issuance by the County. 6. Retroactive disqualification for discounted rate. If on any Anniversary Date the tonnage requirement has not been met: a. the discounted rate shall be discontinued; b. the base rate shall be in effect retroactively to the commencement of this Agreement; and c. the Customer shall be obligated to pay to the City the difference between the base rate and the discount rate from the Commencement Date, due and payable upon receipt of a statement from the City. 7. Special Waste Charges. Special Waste charges to the Customer will be the same as the special waste charges for Saline County residents. Examples of waste subject to special waste charges would include: contaminated soil, concrete, asbestos, KDHE approved chemicals and materials, and other items not listed that would require addition disposal time and effort on the part of Landfill personnel. The Customer will also be charged at the same rate as Saline County residents for disposal of tires. 8. Billing Agreement. The City shall provide the Customer with a monthly billing statement for charges incurred as a result of the disposal of Waste generated in the County delivered to the Salina Landfill by haulers specified in writing by the Customer. It shall be the 2 1- responsibility of any other haulers delivering Waste generated in the County to arrange for payment of the applicable charges with the City. In either case, the charges shall be payable according to terms established by the City's Department of Finance. 9. Salina Landfill Rules and Regulations. The Customer shall be handled in the same manner and subject to the same ordinances, rules and regulations as apply to Saline County Waste. Any party transporting Customer Waste to the Landfill for disposal pursuant to this Agreement shall be deemed to have submitted to the City's jurisdiction for the purposes of enforcement of the City's ordinances, rules and regulations relating to the disposal of solid waste in the Landfill. Any party transmitting only Customer Waste to the Landfill shall be exempt from the City's permit requirement for disposal of waste. 10. Special Handling or Equipment. If the Customer's Waste requires special handling, equipment, or facilities not currently used in the City's operation of the Landfill, the Customer shall be responsible for all costs associated with that special handling, equipment or facilities. 11. Removal of Stuck Vehicles. The City agrees to provide, upon request and free of charge, a chain and tow for any vehicle that becomes stuck or mired while disposing of Customer's Waste in the Landfill if the owner of the vehicle has on file with the City a property damage release on a form provided by the City. If a tow is requested, the Customer agrees that the driver of the vehicle or his designee must attach the chain to the vehicle. 12. Authorized Routes. Due to the potential number and weight of vehicles transporting Waste to the Landfill and their impact on road maintenance and safety, the City, in conjunction with Saline County, will designate authorized routes within Saline County for those vehicles transporting Customer Waste to the Landfill. 13. Default. In the event either party fails to perform any of the promises and covenants under this Agreement (other than the failure to meet required minimum disposal volumes as addressed above), the non-defaulting party shall give written notice of the default to the other party specifying the nature of the default. If such default remains uncured for ten (10) days after delivery of the notice specifying the nature of the default, this Agreement shall terminate at the sole option of the non-defaulting party. 14. Non-assignable. This Agreement and any rights granted herein shall not be assignable by either party. 15. Administration. The following person or that person's designee shall be responsible for all aspects of the administration and interpretation of this Agreement on behalf of the respective party. 3 City : Jason A. Gage, City Manager Customer: Michael Slechta, Owner/Manager IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written. CllY OF SALINA, KANSAS By: ATTEST: By: ~~ B/;/ Michael Slechta, Owner/Manager ATTEST: 4 _------.J