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HomeMy WebLinkAboutCONSENT Recycling operations Murreys Disposal Jefferson County Board of Commissioners Consent Agenda Request To: Board of Commissioners Josh Peters, County Administrator From: Eric Kuzma Public Works Director Agenda Date: January 20, 2026 Subject: Jefferson County Recycling Center Operating Agreement Statement of Issue: An Operating Agreement for the County's recycling center is a necessary next step in modernizing the County's recycling program and follows from the BoCC's adoption of a Level of Service Ordinance for curbside recycling on November 3, 2025. Analysis/Strategic Goals/Pro's& Con's: Waste Connections is the only Washington Utilities and Transportation Commission"G-Cert"hauler for the East Jefferson County service area and has the exclusive responsibility for curbside collection of recyclable materials that are described in the Level of Service Ordinance. Waste Connections also operates the nearest material recovery facility by road miles. As such,entering into the attached Operating Agreement would provide the most cost-efficient operation to the benefit of the curbside service subscribers. Waste Connections has also indicated that it would prefer to pre-process recyclable materials collected by contract in the Cities of Port Townsend and Sequim at the County's recycling center which would moderate service rates for residents of Port Townsend and Sequim while reducing the carbon footprint for the recycling programs when compared to transporting the materials to the pre-processing facility in Port Angeles. Fiscal Impact/Cost Benefit Analysis: Per the Operating Agreement there is no direct or indirect funding of the recycling center operation on the part of Jefferson County and all costs and expenses related to the use of the facility, including but not limited to permit fees, utilities, labor, and maintenance and repair costs are the obligation of Waste Connections. Recommendation: Public Works recommends entering into the attached Operating Agreement with Waste Connections. Department Contact: Al Cairns, Solid Waste Manager x213 Reviewed By: cs. DOrdtzio Jo. • 'eters,County Administrator Dat CONTRACT REVIEW FORM Clear Form (INSTRUCTIONS ARE ON THE NEXT PAGE) CONTRACT WITH: Waste Connections dba Murry's Disposal Company. Inc. Contract No: 2025-088 Contract For: County Recycling Center Operation Term: 10 Years COUNTY DEPARTMENT: Public Works Contact Person: Al Cairns Contact Phone: X213 Contact email: acaims@co.lefferson.wa AMOUNT: N/A PROCESS: _ Exempt from Bid Process Revenue: N/A Cooperative Purchase Expenditure: N/A Competitive Sealed Bid Matching Funds Required: N/A Small Works Roster Sources(s)of Matching Funds N/A Vendor List Bid Fund # N/A RFP or RFQ Munis Org/Obj N/A ✓ Other: Cost analysis APPROVAL STEPS: STEP 1: DEPARTMENT CERTIFIES COMPLIANCE WITH JCC 3.55.080 AND CHAPTER 42.23 RCW. CERTIFIED: ■❑ N/A:0 a.i cai)zdf-d- 1/14/26 Signature Date STEP 2: DEPARTMENT CERTIFIES THE PERSON PROPOSED FOR CONTRACTING WITH THE COUNTY (CONTRACTOR) HAS NOT BEEN DEBARRED BY ANY FEDERAL, STATE, OR LOCAL AGENCY. CERTIFIED: ❑� N/A: �` 1/14/26 Signature Date STEP 3: RISK MANAGEMENT REVIEW(will be added electronically through Laserfiche): Electronically approved by Risk Management on 1/14/2026. STEP 4: PROSECUTING ATTORNEY REVIEW(will be added electronically through Laserfiche): Electronically approved as to form by PAO on 1/14/2026. Negotiated with the assistance of the PAO. STEP 5: DEPARTMENT MAKES REVISIONS & RESUBMITS TO RISK MANAGEMENT AND PROSECUTING ATTORNEY(IF REQUIRED). STEP 6: CONTRACTOR SIGNS STEP 7: SUBMIT TO BOCC FOR APPROVAL OPERATING AGREEMENT FOR THE JEFFERSON COUNTY RECYCLING CENTER This Operating Agreement(all terms in bold are defined below)is between Jefferson County, Washington(the"County")and Murrey's Disposal Company, Inc. ("Murrey's"). WHEREAS, RCW 36.58.040 states: A county may construct,lease,purchase,acquire,add to,alter,or extend solid waste handling systems,plants,sites,or other facilities and shall have full jurisdiction and authority to manage, regulate, maintain, utilize, operate, control, and establish the rates and charges for those solid waste handling systems, plants, sites, or other facilities.A county may enter into agreements with public or private parties to: (a) Construct,purchase,acquire, lease, add to,alter,extend,maintain,manage,utilize, or operate publicly or privately owned or operated solid waste handling systems, plants, sites, or other facilities; (b) establish rates and charges for those systems, plants, sites,or other facilities; (c)designate particular publicly or privately owned or operated systems, plants, sites, or other facilities as disposal sites; (d) process, treat,or convert solid waste into other valuable or useful materials or products;and (e)sell the material or products of those systems,plants,or other facilities. and, WHEREAS,the County currently contracts for the collection of recyclable materials at drop-off locations in East Jefferson County and for the processing, marketing, and delivery of these materials to buyers with funding for these services derived from the fees charged for garbage disposal at County-owned and operated solid waste handling facilities; WHEREAS,the recycling services agreement includes the lease of the County-owned Recycling Processing Center; WHEREAS,the term of the recycling services agreement expires March 31, 2026; WHEREAS, the Jefferson County Solid Waste Management Plan includes as a goal: "promote the use of private industry to carry out the components of the solid waste system, if feasible"; WHEREAS, the Board of Commissioners has determined that recycling services should be delivered by the private sector; WHEREAS,Murrey's is the only private sector waste hauler in East Jefferson County authorized by the Washington Utilities and Transportation Commission to collect residential recyclables; WHEREAS,Murrey's will offer residential curbside collection of recyclable materials in accord with the Level of Service Ordinance (Ordinance No. 10-1103-25) adopted by the Board of Commissioners on November 3, 2025,but effective on April 1,2026. WHEREAS,Murrey's will bill customers directly for such service; {00127588.DOCX.} 1 WHEREAS, rates for the various service options in the Level of Service Ordinance are determined by the Washington Utilities and Transportation Commission; and, WHEREAS, the Board of Commissioners has determined that it would benefit residential recycling customers and lower the recycling program's carbon footprint were Murrey's to utilize the County-owned Recycling Processing Facility rather than transporting the materials to the nearest alternate processing facility in Port Angeles. NOW THEREFORE IT IS AGREED: 1 PURPOSES OF THIS OPERATING AGREEMENT. The purpose of this Operating Agreement is to ensure the continued availability, use and maintenance of the Recycling Processing Facility; 2 DEFINITIONS. 2.1 "Recycling Processing Facility" means the approximate 1.6 acres of County-owned property as shown in Exhibit A and the buildings and infrastructure there-in that are used for the processing and storing of recyclable material prior to delivery to buyers. 2.2 "Board of Commissioners"means the Jefferson County Board of Commissioners. 2.3 "The County" means Jefferson County, Washington, a municipal corporation and a political subdivision of the State of Washington. 2.4 "Public Works Director" means the person responsible for the Jefferson County Department of Public Works. 2.5 "Murrey's" means the private corporation which provides residential curbside recycling services in East Jefferson County under a Tariff issued by the Washington Utilities and Transportation Commission. 2.6 "Tariff' means the document issued by the Washington Utilities and Transportation Commission that defines customer options such as bin sizes and collection frequency and the rates for such service options that Murrey's is allowed to charge customers. 2.7 "Washington Utilities and Transportation Commission"means the agency responsible for regulating utility and transportation sectors in Washington State. 2.8 "Recycling Processing Facility" means the property, utility services, buildings and other infrastructure owned by the County within the area shown in Exhibit A. 2.9 "Environmental Law" means any federal, state or local statute, regulation, code, rule, ordinance,order,judgment,decree, injunction or common law pertaining in any way to the protection of human health or the environment, including without limitation, the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, {00127588.DOCx.} 2 Compensation and Liability Act, the Toxic Substances Control Act, and any similar or comparable state or local law. 2.10 "Hazardous Substance" means any hazardous, dangerous or toxic wastes, materials, or substances as defined in state or federal statutes or regulations as currently adopted or hereafter amended, and includes without limitation petroleum oil and any of its fractions. 2.11 "Losses"means, without limitation: (a)the cost of any investigation, removal, remedial or other response action that is required by any Environmental Law, that is required by judicial order or by order of or agreement with any governmental authority, or that is necessary or otherwise is reasonable under the circumstances;(b)Losses for injury or death of any person; and, (c)Losses arising under any later-enacted Environmental Law. 2.12 "Operate"means engaging in Operations at the Recycling Processing Facility. 2.13 "Operations"means temporary storage, sorting, baling, and loading of accepted materials at the Recycling Processing Facility. 2.14 "Operating Agreement" means this Operating Agreement for the Recycling Processing Facility. 2.15 "Operations Plan" means a description of the process for material throughput, fire and emergency responses and protocol, and the location of emergency response equipment. 2.16 "Parties"means the parties to this Operating Agreement. 2.17 "Party" means one of the Parties. 2.18 "Policies"means more than one Policy. 2.19 "Section"means a section of this Operating Agreement. 3 TERM OF OPERATING AGREEMENT. This Operating Agreement begins on the Effective Date and terminates on December 31, 2036, unless otherwise terminated or extended by the Board of Commissioners. If this Operating Agreement is not renewed, expiration shall be automatic. 4 RESPONSIBILITIES OF MURREY'S. 4.1 Murrey's shall submit to the County an Operations Plan for the Recycling Processing Facility no later than sixty (60) days prior to the commencement of this Operating Agreement. 4.2 Murrey's shall secure all necessary permits for the operation of the Recycling Processing Facility. 4.3 Murrey's operations shall include the storage, processing and market delivery of accepted materials from Jefferson County, and other regional customers at Murrey's discretion, provided that service to Jefferson County customers is prioritized. {00127588.DOCX.} 3 4.4 Murrey's shall pay all costs and expenses related to the use of the Recycling Processing Facility for the purposes described in Section 1, including, but not limited to, permit fees, utilities, labor, and maintenance and repair costs. 4.5 Murrey's shall purchase all specialized equipment necessary for the operation of the Recycling Processing Facility (E.g., baler, front end loader, trailers, etc.) and shall retain ownership of such equipment. 4.6 The County will provide no property upkeep or maintenance services. Murrey's shall be responsible for all costs to keep the facility in good working order including items such as roof repair and replacement, asphalt repair, septic system repair and maintenance, etc. 4.7 The Public Works Director or their designee may authorize Murrey's to improve, modify, or expand buildings and infrastructure where such modifications improve operations. Murrey's will do so at its own cost and such improvements, modifications, or expansions shall remain the property of the County. 4.8 Murrey's shall employ such persons as necessary to carry out its operations. In doing so, Murrey's shall comply with all State and Federal Laws and regulations dealing with employee and contracted service. 4.9 Murrey's shall manage the risks and hazards associated with Recycling Processing Facility operations in a manner reasonably satisfactory to the Public Works Director or their designee. Murrey's shall specifically manage for risks associated with the use and maintenance of the Recycling Processing Facility, including but not limited to the identification and mitigation of building and facility hazards. 4.10 Murrey's shall operate the Recycling Processing Facility in compliance with all federal, state, and local laws, regulations and any permits issued thereunder. 4.11 Murrey's shall keep the Recycling Processing Facility free and clear of any liens and encumbrances arising from its actions pursuant to this Operating Agreement and its use of the Recycling Processing Facility. 4.12 No modifications may be made to the facilities, infrastructure or other property located at the Recycling Processing Facility without the written approval of the Public Works Director or their designee. This Section shall not apply to maintenance or minor repairs performed by Murrey's. 4.13 Murrey's must receive prior written approval by the County of any proposed changes in Operation of the Recycling Processing Facility. Failure to do so may result in termination of this Operating Agreement at the discretion of the County. {00127588.DOCX.} 4 4.14 Murrey's shall promptly notify the County in writing if Murrey's becomes aware that it is acting or operating in alleged violation of any local, state, or federal law or permit. 5 RESPONSIBILITIES OF THE COUNTY. 5.1 The County shall provide Murrey's with access to the Recycling Processing Facility in as-is condition, free of liens or encumbrances. 5.2 The County shall facilitate the transition between the current contract recycler and Mu rrey's. 5.3 The County shall give public notice of the change in drop-off area and respond to public feedback on changes to the service. 5.4 The County shall make necessary traffic revisions to preclude the general public from facility access. 6 FUNDING BY THE COUNTY. 6.1 The County shall provide no direct or indirect funding of the Operation. 7 LIMITED LICENSE IN SUPPORT OF OPERATING AGREEMENT. 7.1 Murrey's shall have a license to use the Recycling Processing Facility, solely for the purposes outlined in Section 1. 7.2 Murrey's acknowledges that this Operating Agreement does not transfer, grant, or convey to it any ownership interest,title,or easement in the Recycling Processing Facility. 7.3 The County reserves the mineral and timber rights associated with the Recycling Processing Facility. 8 EFFECTIVE DATE. This Operating Agreement shall become effective when signed by the last Party. 9 PUBLIC HEALTH AND ENVIRONMENTAL PROTECTION. 9.1 Murrey's shall operate the Recycling Processing Facility in compliance with all federal, state, and local laws, regulations and any permits issued thereunder. 9.2 Murrey's hereby agrees to indemnify,defend,and hold harmless,and to waive,release and discharge the County from any and all present or future claims or demands, and any and all damages, Losses, injuries, liabilities, causes of actions (including, without limitation, causes of action in tort)costs and expenses(including,without limitation,fines,penalties or judgments, and reasonable attorneys' fees) of any and every kind or character, known or unknown made against the County by a person not a Party, arising from or in any way related to(i)the alleged presence, use, storage, generation,manufacture,transport,release, leak, spill, disposal or other handling of any Hazardous Substances in, on, or at the Recycling Processing Facility, which occurred on or after April 1, 2026; (ii) Murrey's {00127588.DOCX.} 5 exacerbation of any such condition of the Recycling Processing Facility;and,(iii)the cost of any required cleanup of the Recycling Processing Facility. PROVIDED, however, that nothing in this subsection is intended to cover Hazardous Substances in existence at the Recycling Processing Facility prior to April 1, 2026, which is the date Murrey's began Operations at the Recycling Processing Facility. 10 APPLICABLE LAW. It is understood and agreed that this Operating Agreement is entered into in the State of Washington. This Operating Agreement shall be governed by and construed under the laws of the United States,the State of Washington and the County of Jefferson,as if applied to transactions entered into and to be performed wholly within Jefferson County, Washington between Jefferson County residents. No Party may argue or assert that any state law other than Washington law applies to the governance or construction of this Operating Agreement. 11 DISPUTES. The Parties agree to use their best efforts to prevent and resolve disputes before they escalate into claims or legal actions.Any disputed issue not resolved under this Operating Agreement shall be submitted in writing to the Public Works Director. If any dispute cannot be resolved between Murrey's and the Public Works Director within 10 days of receipt of the written submission,the dispute shall be forwarded to the County Risk Manager,whose decision shall be subject to judicial review. If either Party deems it necessary to institute legal action or proceeding to enforce any right or obligation under this Operating Agreement, each Party in such action shall pay for its own attorney's fees and court costs.Any legal action shall be initiated in the Superior Court of the State of Washington for Jefferson County. The Parties agree that all questions shall be resolved by application of Washington law and that the Parties have the right of appeal from such decisions of the Superior Court under the laws of the State of Washington.Murrey's consents to the personal jurisdiction of the Superior Court of the State of Washington for Jefferson County. 12 INDEMNIFICATION. 12.1 Murrey's shall defend, indemnify and hold the County, its officers, officials,employees, agents and volunteers(and their marital communities)harmless from any claims, injuries, damages, losses or suits, including reasonable attorney's fees, arising out of or resulting from the negligent acts,errors or omissions of Murrey's in performance of this Operating Agreement,except for injuries and damages caused by the sole negligence of the County. 12.2 Should a court of competent jurisdiction determine this Operating Agreement is subject to RCW 4.24.115 if liability for damages occurs arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of Murrey's and the County, its officers, officials, employees, agents and volunteers (and their marital communities),Murrey's liability,including the duty and cost to defend,shall be only for Murrey's negligence. 12.3 It is further specifically understood that the indemnification provided constitutes Murrey's waiver of immunity under Industrial Insurance,title 51 RCW,solely for the purposes of this indemnification; provided, however, this waiver does not apply to damages or injuries caused in whole or in part by the County.This waiver has been mutually negotiated by the {00127588.DOCX.} 6 Parties. 12.4 This Section shall survive the expiration or termination of this Operating Agreement. 13 INDEPENDENT CONTRACTOR. 13.1 Murrey's is an independent contractor regarding the services provided under this Operating Agreement. 13.2 Murrey's is not an agent, an employee or a servant of the County. 13.3 Murrey's specifically has the right to direct and control Waste Connection's own activities and all of its employees, agents and representatives in providing the agreed services in accordance with the specifications set out in this Operating Agreement. 13.4 Murrey's acknowledges that there is no direct or indirect compensation for this Operating Agreement and that Murrey's is not entitled to any County benefits, including, but not limited to: retirement, vacation pay; holiday pay; sick leave pay; medical, dental or other insurance benefits; fringe benefits; or any other rights or privileges afforded to County employees. 13.5 Should any governmental agency audit the files of and request information on either Party, each Party agrees to furnish promptly the requesting Party with any relevant records related to the services rendered under this Operating Agreement. 14 INSURANCE REQUIREMENTS. 14.1 Murrey's shall obtain and keep in force during the terms of the Operating Agreement or as otherwise required, the following insurance coverage described below with companies or through sources approved by the State Insurance Commissioner pursuant to chapter 48.62 RCW and on a form reasonably acceptable to the Jefferson County Risk Manager. 14.2 The County shall be named on all certificates of insurance as an additional insured. The certificates of insurance shall cover the activities specified in or performed under this Operating Agreement. Murrey's shall provide to the County the full text of any endorsement listed solely by its name, number, or title (as opposed to the full text of said endorsement). 14.3 If the proof of insurance or certificate indicating the County is an "additional insured" to a policy obtained by Murrey's refers to an endorsement(by number or name)but does not provide the full text of that endorsement, then it shall the obligation of Murrey's to obtain the full text of that endorsement and forward that full text to the County. 14.4 Upon Waste Connection's failure to comply with all provisions of this Operating Agreement relating to insurance, the County may terminate this Operating Agreement in a manner consistent with this Operating Agreement. 14.5 The coverage limit for any insurance purchased to provide coverage for damage to property owned by Murrey's at the Recycling Processing Facility shall be in an amount not less {00127588.DOCX.} 7 than the replacement value of Murrey's-owned property, including but not limited to structures and infrastructure on the Recycling Processing Facility. 14.6 All insurance shall be obtained from an insurance company authorized to do business in the State of Washington. 14.7 Murrey's shall submit a certificate of insurance as outlined above within 14 days of the execution of this Operating Agreement to the County. 14.8 No cancellation of the foregoing policies shall be effective without thirty (30) days prior notice to the County. 14.9 The following types of insurance shall be maintained by Murrey's for its Operations at the Recycling Processing Facility. 14.10 Worker's Compensation (Industrial Insurance). 14.11.1.1 Murrey's shall maintain workers' compensation insurance at its own expense, as required by title 51 RCW, for the term of this Agreement and shall provide evidence of coverage to Jefferson County Risk Management, upon request. 14.11.1.2 The worker's compensation insurance shall cover all employees with limits meeting all state and federal laws. This coverage shall be include Employer's Liability with limits meeting all state and federal laws. 14.11.1.3 Except for injuries or damage directly caused by the County's negligence or willful misconduct, Murrey's expressly waives by mutual negotiation all immunity and limitations on liability, regarding the County, under any industrial insurance act, disability benefit act, or other employee benefit act of any jurisdiction which would otherwise apply in the case of such claim. 14.11.1.4 If the County incurs any costs to enforce this subsection, all cost and fees may be recoverable from Murrey's. 14.11 Commercial Automobile Liability Insurance. Murrey's shall obtain bodily injury and property damage liability coverage for all owned and non-owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than$1,000,000 per occurrence in connection with Waste Connection's performance of the Operating Agreement, including coverage for: 14.12.1.1 Owned Automobiles; 14.12.1.2 Hired Automobiles, and; 14.12.1.3 Non-owned Automobiles. 14.12 General Commercial Liability Insurance. Murrey's shall obtain general liability coverage in an amount not less than a single limit of one million dollars ($1,000,000.00) per occurrence and an aggregate of not less than two million dollars ($2,000,000) for bodily {00127588.DOCX.} 8 injury, including death and property damage, unless a greater amount is specified in the contract specifications.The insurance coverage shall contain no limitations on the scope of the protection provided and include the following minimum coverages: 14.13.1.1 Broad Form Property Damage, with no employee exclusion; 14.13.1.2 Personal Injury Liability, including extended bodily injury; 14.13.1.3 Broad Form Contractual/Commercial Liability - including: completed operations; 14.13.1.4 Premises - Operations Liability(M&C); 14.13.1.5 Independent Contractors and subcontractors; and, 14.13.1.6 Blanket Contractual Liability. 14.13.1.7 Said general commercial liability policy shall name the County as an additional insured and shall include a provision prohibiting cancellation or reduction of coverage of said policy except upon thirty (30) days prior written notice to the County. Certificates of coverage as required by this Section shall be delivered to the County within thirty(30)days of execution of this Operating Agreement. 14.13 Murrey's shall not Operate on or use the Recycling Processing Facility without the forgoing insurance provisions being fully satisfied. 14.14 All insurance policies obtained by Murrey's in order to comply with this Section shall be primary and non-contributory as against any coverage for third party liability claims obtained and retained by the County through chapter.48.62 RCW"Risk Pool." 14.15 It is agreed by the Parties that insurers shall have no right of recovery or subrogation against the County (including its employees and other agents and agencies), it being the intention of the Parties that the insurance policies so affected shall protect both Parties and be primary coverage for any and all losses covered by the above described insurance. 14.16 The insurance maintained by Murrey's under this Operating Agreement shall not in any manner limit or qualify the liabilities or obligations of Murrey's under this Operating Agreement. 15 HARASSMENT AND DISCRIMINATION PROHIBITED. 15.1 Any form of harassment, discrimination, or improper fraternization with any County employee is strictly prohibited. 15.2 Murrey's shall not discriminate against any person in performance of Murrey's responsibilities under this Operating Agreement or in the selection and retention of employees or procurement of materials or supplies on the basis of age, sex, marital status, sexual orientation, religion, creed, race, color, national origin, honorably discharged {00127588.DOCX.} 9 veteran or military status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability, unless based upon a bona fide occupational qualification. 16 NO ASSIGNMENT. No Party shall assign its rights under this Operating Agreement, unless done in writing and approved by the other Party. 17 MODIFICATION. This Operating Agreement may be modified during the term of this Operating Agreement only by mutual agreement of the Parties, which shall be appended to this Operating Agreement. 18 TERMINATION. 18.1 This Operating Agreement may be terminated by any Party for cause upon providing the other Party with written notice ninety(90)days prior to the date of termination.The written notice of termination must explain the reason for termination, if any. 18.2 After receipt of a notice of termination, and before termination, the Party in receiving the notice of termination may cure the defect, if any, or make the case for why this Operating Agreement should not be terminated. The Party issuing the notice of termination may consider the case by the other Party and may continue with the termination or rescind the termination notice. If the termination notice is rescinded this Operating Agreement shall continue in force for the full term. 18.3 Either Party may notify the other Party of an alleged default and the Party allegedly in default shall have twenty (20) days to cure same. The period to cure the default may be extended by mutual agreement. 19 ENTIRE AGREEMENT. This Operating Agreement memorializes the entire Agreement of the Parties and all parts of this Operating Agreement are contained herein. The Parties agree that: 19.1 No representation or promise not contained in this Operating Agreement has been made. 19.2 They are not entering into this Operating Agreement based on any inducement, promise or representation, expressed or implied, which is not contained in this Operating Agreement. 19.3 This Operating Agreement supersedes all prior or simultaneous representations, discussions, negotiations, and Operating Agreements, whether written or oral, within the scope of this Operating Agreement. 20 SECTION HEADINGS. The headings of the Sections of this Operating Agreement are for convenience of reference only and are not intended to restrict, affect, or be of any weight in the interpretation or construction of the Sections or this Operating Agreement. {00127588.DOCX.} 10 21 LIMITS OF ANY WAIVER OF DEFAULT. No consent by either Party to, or waiver of, a breach by either Party, whether express or implied, shall constitute a consent to, waiver of, or excuse of any other, different, or subsequent breach by either Party. 22 NO ORAL WAIVER. No term or provision of this Operating Agreement will be waived by either Party,and no breach excused by either Party, unless such waiver or consent is in writing signed on behalf of the Party against whom the waiver is asserted. Failure of a Party to declare any breach or default immediately upon the occurrence thereof, or delay in taking any action in connection with, shall not waive such breach or default. 23 SEVERABILITY. Provided it does not result in a material change in the terms of this Operating Agreement, if any provision of this Operating Agreement or the application of this Operating Agreement to any person or circumstance shall be invalid, illegal, or unenforceable to any extent, the remainder of this Operating Agreement and the application this Operating Agreement shall not be affected and shall be enforceable to the fullest extent permitted by law. 24 SURVIVAL. Those provisions of this Operating Agreement that by their sense and purpose should survive the term of this Operating Agreement shall survive the term of this Operating Agreement. Without limiting the generality of the preceding sentence, and for the avoidance of doubt, the provisions that survive the term of this Operating Agreement include: (a) controlling law; (b) insurance; and, (c) indemnification. 25 PROVISIONS REQUIRED BY LAW ARE ADDED. Any provision of law and any clause required by law to be in this Operating Agreement are made a part of this Operating Agreement and shall be read and enforced as though they were they were included in this Operating Agreement and as if omitted by mistake, if ever any such provision or clause is not included, or is not correctly inserted, this Operating Agreement shall be amended to add or correct such clause forthwith upon the request of any Party to another Party. 26 BINDING ON SUCCESSORS, HEIRS AND ASSIGNS. This Operating Agreement shall binding upon and inure to the benefit of the Parties' successors in interest, heirs and assigns. 27 NO THIRD-PARTY BENEFICIARIES. The Parties do not intend, and nothing in this Operating Agreement shall be construed to mean, that any provision in this Operating Agreement is to benefit any person or entity who is not a Party. {00127588.DOCX.} 11 28 SIGNATURE IN COUNTERPARTS. This Operating Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which counterparts together shall constitute the same instrument which may be sufficiently evidenced by one counterpart. Execution of this Operating Agreement at different times and places by the Parties shall not affect the validity of this Operating Agreement, so long as all the Parties execute a counterpart of this Operating Agreement. {00127588.DOCX.} 12 29 FACSIMILE AND ELECTRONIC SIGNATURES. The Parties agree that facsimile and electronic signatures shall have the same force and effect as original signatures. 30 ARMS-LENGTH NEGOTIATIONS. The Parties agree this Operating Agreement has been negotiated at arms-length, with the assistance and advice of competent, independent legal counsel. 31 MAINTENANCE OF RECORDS. 31.1 Each Party shall maintain books, records, documents and other evidence that sufficiently and properly reflect all direct and indirect costs expended by either to perform this Operating Agreement. These records shall be subject to reasonable inspection, review or audit by personnel of both Parties, other personnel duly authorized by either Party, the Office of the State Auditor, and federal officials so authorized by law. 31.2 All books, records, documents, and other material relevant to this Operating Agreement shall be retained for six years after expiration the Operating Agreement. The Office of the State Auditor, federal auditors, the Jefferson County Auditor, and any persons duly authorized by the Parties shall have reasonable access and the right to examine these materials during this period. 31.3 If any litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. 31.4 Records and other documents, in any medium, furnished by one Party to this Operating Agreement to the other Party, shall remain the property of the furnishing Party, unless otherwise agreed. 32 PUBLIC RECORDS ACT. 32.1 Notwithstanding any provisions of this Operating Agreement to the contrary,to the extent any record, including any electronic, audio, paper or other media, must be kept or indexed as a public record under the Washington Public Records Act, chapter 42.56 RCW(as may be amended), Murrey's agrees to maintain all records constituting public records and to produce or assist the County in producing such records, within the time frames and parameters in state law. 32.2 Murrey's also agrees that upon receipt of any written public records request, Murrey's shall, within two business days, notify the County by providing a copy of the request per the notice provisions of this Operating Agreement. 32.3 This Operating Agreement, once executed, becomes a "public record" subject to production to a third Party if it is requested under the Washington Public Records Act, chapter 42.56 RCW (as may be amended). {00127588.DOCX.} 13 33 ATTACHMENTS. Any document in this Operating Agreement identified as an attachment is part of this Operating Agreement and is incorporated by reference into this Operating Agreement. 34 REFERENCE TO SECTIONS IN THIS OPERATING AGREEMENT. Any reference to a section in this Operating Agreement is a reference to a Section of this Operating Agreement, unless clearly stated to the contrary. 35 NOTICES. Notices shall be given at these addresses and contact points: Jefferson County Board of County Commissioners PO Box 1220 Port Townsend, WA 98368 Murrey's Disposal Company, Inc. 970 Carlsborg Rd. Sequim, WA 98382 With a copy to: Waste Connections 3 Waterway Square Place, Suite 110 The Woodlands, TX 77380 Attn: Legal Department (SIGNATURES FOLLOW ON NEXT PAGE) {00127588.DOCX.} 14 JEFFERSON COUNTY WASHINGTON MURREY'S DISPOSAL COMPANY, Board of County Commissioners INC. 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