HomeMy WebLinkAbout69-93 - Res. Interlocal Agreement for Cost Equalization PaymentsBEFORE THE BOARD OF COUNTY COMMISSIONERS
OF MASON COUNTY, WASHINGTON
RESOLUTION NO.
IN REF: EXECUTION OF INTERLOCAL AGREEMENT FOR COST EQUALIZATION
PAYMENTS FROM MASON COUNTY TO GRAYS HARBOR COUNTY AND FOR
MASON COUNTY TO PAY ITS SHARE OF THE PUBLIC BID PROCESS TO
BOTH LEWIS COUNTY AND GRAYS HARBOR COUNTY AND AUTHORIZING
SIGNATURES THEREON
WHEREAS, The Board of County Commissioners(hereinafter referred to
as the Board) has had reviewed the interlocal agreement with Grays
Harbor County and Lewis County Solid Waste Disposal District #1 for
cost equalization payments from Mason County to Grays Harbor
County(attached as Exhibit A); and,
WHEREAS, The Mason County Board shall authorize payment of
its share of the costs incurred in the public bid process in
amounts equaling $15,800 to Grays Harbor and $16,488 to Lewis
County; and
WHEREAS, after due consideration it appears to be in the best
public interest to execute this interlocal agreement; NOW THEREFORE
BE IT RESOLVED that the Board agrees to enter into this agreement
with Grays Harbor County and Lewis County Solid Waste Disposal
District #1 as set forth in Exhibit A and the Board of County
Commissioners is authorized to sign said agreement.
DONE IN OPEN SESSION this day of 1993.
ATTEST:
CLERK OF BOARD
/APPROVED AS TO FORM
/ (
(
CHIEF DEPUTY
BOARD OF COUNTY COMMISSIONERS
MASON COUNTY, WASHINGTON
CHAIRMAN
Absent 7/13/93
MEMBER
EXHIBIT A
AGREEMENT REGARDING PARTICIPATION OF MASON COUNTY IN WASTE
EXPORT AND DISPOSAL SYSTEM
This agreement is made and entered into this day of
1993 by and between Grays Harbor County, and Mason
County (hereinafter the "Joining County"), political subdivisions
of the State of Washington, and the Lewis County Solid Waste
Disposal District #1 ("Disposal District"), a quasi -municipal
corporation formed pursuant to Chapter 36.58 of the Revised Code of
Washington.
RECITALS
A. Lewis County and Grays Harbor County (together the
"Counties") jointly undertook a process to procure waste transport
and disposal services ("Public Bid Process") as set out in bid
documents dated February 26, 1992, Addendum No. 1 dated March 10,
1992, Addendum No. 2 dated April 8, 1992, and Addendum No. 3 dated
April 17, 1992 ("Bid Documents").
B. The Bid Documents provided the Counties with the option
to either contract alone for waste export and disposal services
(Grays Harbor County would select bid option 1 and Lewis County
would select bid option 2), or to proceed under a multiple county
option (bid option 3). Only bid option 3 provided the option to
allow Jefferson, Mason and/or Thurston Counties ("Joining
Counties") to obtain waste export and disposal services from the
successful bidder conditioned upon entering into an agreement with
Grays Harbor County and the Disposal District. All of the Joining
Counties expressed the desire to have this option available in
letters which were included in the Bid Documents.
C. Pursuant to Chapter 36.58 of the Revised Code of
Washington, Lewis County formed the Disposal District. Formation
occurred prior to the execution of a contract with the successful
bidder. The Bid Documents provided that if the Disposal District
had been formed prior to the execution of a contract, it would
execute the contract and Lewis County would not be a party.
D. Although overall project costs were similar for Grays
Harbor County and the Disposal District under all three options,
the unit price of the long -haul transport component varied among
the three options. The Disposal District would have obtained the
lowest long -haul transport costs under bid option 2. Grays Harbor
County would have obtained the lowest costs under bid option 3.
E. The Counties and the Disposal District agreed to proceed
under bid option 3 in order to provide the Joining Counties the
option to obtain waste disposal services without duplication of the
costs and time required to complete a bidding process. The
Counties and the Disposal District agreed that in order to proceed
under bid option 3, it would be necessary to implement a payment
mechanism whereby Grays Harbor County would pay the Disposal
District an amount that would make bid option 3 approximately as
cost effective for the Disposal District as bid option 2. The
Counties and the Disposal District also agreed that, in order to
join in the waste export and disposal system, each of the Joining
Counties would be required (1) to contribute in an equitable manner
to the total costs of the Public Bid Process and (2) to share
equitably in the payments Grays Harbor County would make to the
Disposal District. These agreements are set out in an Agreement
Regarding Long -Haul Transport Cost Equalization Payments and Bid
Costs Reimbursement dated October 12, 1992, a copy of which is
attached hereto as Exhibit A and by this reference incorporated
herein as if set forth in full.
F. Grays Harbor entered into a contract with the successful
bidder, Regional Disposal Company on z'u_ne 7 , 1993 and the
Disposal District entered into a contract with Regional Disposal
Company, on T'lftne_ ) , 1993 for waste export and disposal
services. (Hereinafter these contracts are referred to individually
as the "Contract" or collectively as the "Contracts".)
G. Chapter 36.58 of the Revised Code of Washington permits
counties to enter into agreements to acquire and implement solid
waste handling systems, including the transportation and disposal
of solid waste. Chapter 36.58 also provides that Solid Waste
Disposal Districts may provide for all aspects of disposing of
solid waste.
H. Grays Harbor County, the Disposal District and the
Joining County have determined that this agreement is mutually fair
and advantageous to each of them and in the best interests of their
citizens.
AGREEMENT
In consideration of the facts described above and the mutual
promises made herein, Grays Harbor County, the Disposal District
and the Joining County agree as follows:
ARTICLE 1
Joinder in Waste Export and Disposal System
1.1 Right To Obtain Services. Grays Harbor County, the
Disposal District and the Joining County agree that upon payment of
its share of costs as set out in paragraph 1.3, the Joining County
shall be entitled to enter into a contract with Regional Disposal
Company pursuant to the terms of the bid it submitted in the Public
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Bid Process, and thereby receive all of the waste export and
disposal services described in the Bid Documents.
1.2 No Warranty. The Joining County acknowledges that Grays
Harbor County, Lewis County and the Disposal District make no
warranty, express or implied, regarding the adequacy of the Bid
Documents or whether the Public Bid Process satisfies all bid
procurement requirements applicable to the Joining County.
1.3 Share of Costs. Within thirty days of the execution
of this Agreement, the Joining County shall pay its share of the
costs incurred by the Counties in the Public Bid Process including,
but not limited to, administrative, engineering and legal costs.
The payment shall be made in equal amounts, one-half to Lewis
County and one-half to Grays Harbor County. The Joining County's
share of costs is $31,600. In addition, Mason County shall remit
the sum of $688.00 to Lewis County to reimburse Lewis County for
legal expenses incurred in connection with preparation of this
Agreement.
1.4 Pro Rata Share of Equalization Payments. The Joining
County shall pay a pro rata share, as set out in paragraph 1.5
below, of the payments intended to make bid option 3 approximately
as cost-effective for the Disposal District as bid option 2
("Equalization Payments"). The pro rata share of Equalization
Payments shall be paid as set forth in paragraph 1.7. The
Equalization Payments are calculated on the number of trailers (as
defined in the Contracts) of waste originating in Lewis County and
transported on behalf of the Disposal District. The computation is
based on the difference between the Long -Haul Transport Unit Price
(as specified in the Contract with the Disposal District) that
would have been charged to the Disposal District under bid option
2 ("Bid Option 2 Price") and the unit price charged under bid
option 3 ("Bid Option 3 Price.") The formula to compute the
Equalization Payment is:
Equalization Payment = (BO3P - BO2P) x LCT
where
BO3P = Lewis County Disposal District Long -Haul
Transport Unit Price for Bid Option 3
BO2P = Lewis County Disposal District Long -Haul
Transport Unit Price for Bid Option 2
LCT = # of Lewis County Disposal District Trailers
The Long -Haul Transport Unit Prices shall be revised annually
commencing on January 1, 1994 to reflect Consumer Price Index
adjustments. Adjustments shall be made to both the Bid Option 2
Price and the Bid Option 3 Price in accordance with the formula set
out in paragraph 8.1(d) of the Disposal District's Contract. In
addition, the Long -Haul Transport Unit Prices shall be revised as
required to reflect any adjustments to service fees or other
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charges, as those terms are defined in the Disposal District's
Contract, which are implemented in accordance with the terms of
that Contract, including but not limited to paragraphs 8.1, 8.2,
8.3 and 8.4., to the extent such adjustments affect the Long -Haul
Transport Unit Prices.
1.5 Percentage of Eaualization Payments. The pro rata share
of Equalization Payments for the Joining County is 17%.
1.6 Adjustment of Pro Rata Share of Eaualization Payments.
Grays Harbor County and the Disposal District recognize that the
amount of waste transported on behalf of the Joining Counties
receiving service under a contract with Regional Disposal Company
may change during the term of the Contracts, or extensions thereof,
for reasons such as agreements by the Joining Counties to transport
waste originating outside of the Joining Counties, increased or
decreased waste due to population fluctuations or otherwise. In
the event that the tonnage of all waste (including waste
originating outside of a Joining County, if any) transported on
behalf of a Joining County receiving service under a contract with
Regional Disposal Company increases or decreases 5% or more for a
calendar year (January 1st through December 31st) over the previous
twelve month period, any Joining County receiving service under a
contract with Regional Disposal Company, Grays Harbor County or the
Disposal District may give written notice to the others of a
request to adjust the pro rata shares of the Equalization Payments
of all the Joining Counties. Within thirty days of receiving
written notice, the Joining Counties receiving service under a
contract with Regional Disposal Company, Grays Harbor County and
the Disposal District shall adjust the pro rata shares of the
Equalization Payments for each Joining County.
The adjustment shall result in new pro rata shares of the
Equalization Payments which reflect the ratio that the total
tonnage of waste disposed of by or on behalf of a Joining County
during the preceding calendar year bears to the total tonnage of
all waste disposed of by or on behalf of all Joining Counties
within the preceding calendar year. The new pro rata shares of the
Equalization Payments shall become effective for all Joining
Counties receiving service under a contract with Regional Disposal
Company for all billing statements for pro rata shares of
Equalization Payments dated on or after January 1st of the year
following the year during which the request for adjustment is made.
Tonnage figures shall be based:
(a) in the case of each Joining County which has been
receiving service under a contract with Regional Disposal
Company for at least one full calendar year preceding the year
during which the request is made, upon the records of Regional
Disposal Company showing the tonnage of waste disposed of on
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behalf of the Joining County during the preceding calendar
year;
(b) in the case of each Joining County which has been
receiving service under a contract with Regional Disposal
Company for less than one full calendar year preceding the
year during which the request is made, upon the records of
Regional Disposal Company showing the tonnage of waste
disposed of during said preceding calendar year, together with
the tonnage of waste disposed of otherwise by or on behalf of
the Joining County during the balance of said preceding
calendar year;
c) in the case of each Joining County not receiving service
under a contract with Regional Disposal Company, the tonnage
of waste disposed of by or on behalf of the Joining County
during the calendar year preceding the year during which the
request is made.
In order to determine the tonnage of waste disposed of by or on
behalf of a Joining County other than by Regional Disposal Company
pursuant to a contract, the Joining Counties receiving service
under a contract with Regional Disposal Company, Grays Harbor
County and the Disposal District shall agree upon that data and
method which most accurately reflects the tonnage of waste disposed
of by or on behalf of that Joining County during such period of
time.
1.7 Payment and Billing Procedures. The pro rata share of
the Equalization Payment shall be paid to Grays Harbor County,
unless Grays Harbor County terminates or does not renew the
Contract, or for other reasons ceases to obtain services under the
Contract. In that event, the Joining County shall pay its pro rata
share of Equalization Payments to the Disposal District. Grays
Harbor County shall provide the Joining County with a billing
statement within 30 days of its receipt of each quarterly billing
statement for Equalization Payments from the Disposal District.
The quarterly billing statement provided to the Joining County
shall include a copy of the billing statement from the Disposal
District and a computation of the Joining County's pro rata share
of the Equalization Payment. The Joining County shall pay its pro
rata share of the Equalization Payment to Grays Harbor County no
later than 30 days from the date of receipt of the billing
statement from Grays Harbor County. In the event that Grays Harbor
County terminates or does not renew the Contract or for other
reasons ceases to obtain services under the Contract, the Disposal
District shall assume the responsibility for providing a quarterly
billing statement to the Joining County. The Joining County shall
remit its pro rata share of the Equalization Payment to the
Disposal District no later than 30 days from the date of receipt of
the billing statement.
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ARTICLE 2
Waste Flow and Flow Control
2.1 Waste Flow and Flow Control Ordinances and Agreements.
The Joining County shall enact, maintain in force and effect,
and use reasonable efforts to enforce applicable ordinances to
require all Acceptable Waste, as defined in the Contracts (not
including waste diverted by legal self -disposal, reuse, recycling
or composting, household hazardous waste, construction and
demolition waste, and wood waste) to be delivered to the transfer
stations designated under its contract with Regional Disposal
Company, or other facilities designated by the Joining County. The
Joining County shall also use its best efforts to enter into,
maintain and enforce agreements with the cities in the Joining
County that participate in its Comprehensive Solid Waste Plan,
through which the cities will grant the Joining County authority to
designate disposal sites for waste collected in those cities. The
Joining County shall enact and enforce all laws appropriate to
carry out the requirements of this paragraph.
ARTICLE 3
General Provisions
3.1 Adequate Records. The Disposal District shall keep
records adequate to verify the number of trailers of waste
originating in Lewis County which were transported under the
Contract. The Joining County shall keep records adequate to verify
the number of trailers of waste transported on its behalf by
Regional Disposal Company. Such records shall be maintained for a
period of three years. The Joining County, Grays Harbor County,
Lewis County and the Disposal District shall be given reasonable
access to review and inspect said records.
3.2 Dispute Resolution. Grays Harbor County, Lewis
County, the Disposal District and the Joining County shall attempt
to resolve any and all disputes arising out of this Agreement by
good faith negotiations. If any dispute is not resolved by
negotiations within 20 days after either Grays Harbor County, Lewis
County, the Disposal District or the Joining County notifies the
others in writing of a dispute, either Grays Harbor County, Lewis
County, the Disposal District or the Joining County shall have the
option to submit the dispute for resolution pursuant to the
Judicial Arbitration & Mediation Services, Inc. (JAMS)
mediation/arbitration procedures set out in Form 2, a copy of which
is attached hereto as Exhibit B and by this reference incorporated
herein as if set forth in full. Grays Harbor County, Lewis County,
the Disposal District and the Joining County also agree to follow
the arbitration procedures set out in the JAMS Future Disputes
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Submission Agreement, a copy of which is attached hereto as Exhibit
C and by this reference incorporated herein as if set forth in
full. The dispute resolution procedures set forth in this
paragraph shall be mandatory and exclusive, unless otherwise agreed
in writing by all parties to this Agreement.
3.3 Duration/Termination. This Agreement shall remain in
full force and effect as long as both the contract between the
Joining County and Regional Disposal Company and the Contract
between the Disposal District and Regional Disposal Company remain
in full force and effect. If either the contract between the
Joining County and Regional Disposal Company or the Contract
between the Disposal District and Regional Disposal Company is
terminated for any reason, or is not renewed, then this Agreement
shall also be deemed terminated, provided that any amounts due and
owing hereunder by the Joining County to either or both Counties or
the Disposal District at the time this Agreement is terminated
shall remain due and owing and shall be subject to collection, and
provided, further, that the provisions of paragraph 3.2 shall
continue to govern dispute resolution for all disputes arising out
of this Agreement prior to the nonrenewal or termination of the
Contract with the Disposal Corporation. If this Agreement is
terminated because the Contract between the Disposal District and
Regional Disposal Company is terminated or not renewed, the
termination of this Agreement shall have no effect on the contract
between the Joining County and Regional Disposal Company and the
rights and obligations thereunder, including the right of the
Joining County to renew the contract.
3.4 Costs. Grays Harbor County, Lewis County, the Disposal
District and the Joining County shall be solely responsible for
their own costs incurred in implementing, administering and
enforcing this Agreement, unless otherwise stated herein.
3.5 Third Party Beneficiary. This Agreement is entered into
for the sole benefit of Grays Harbor County, Lewis County, the
Disposal District and the Joining County and is not intended to nor
does it create any third party beneficiary or rights in any other
person or entity.
3.6 Assignment of Agreement. No rights, benefits or
obligations under or arising from this Agreement shall be assigned
by either Grays Harbor County, Lewis County, the Disposal District
or the Joining County without the written consent of Grays Harbor
County, Lewis County, the Disposal District and the Joining County.
3.7 Notices. All notices, requests, billings, payments and
other communications required or permitted to be given hereunder
shall be given at the addresses set forth below. For purposes of
this agreement such notices, requests, billings, payments or other
communications delivered by means of the U.S. mail shall be deemed
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to have been delivered as of the fifth business day next following
the date of the postmark thereof.
If to Mason County:
P. 0. Box 578
Shelton, Washington 98584
Attention: Director of Community Development
If to Grays Harbor County:
P.O. Box 511
Montesano, WA 98563
Attention: Director of Public Works
If to Lewis County:
P.O. Box 899
Chehalis, WA 98532
Attention: Director of Public Services
If to the Lewis County Solid Waste Disposal District #1:
P.O. Box 899
Chehalis, WA 98532
Attention: Director of Public Services
3.8 Invalidity. If any provision of this Agreement is
determined to be invalid, the remaining provisions shall remain in
full force and effect.
GRAYS HARBOR COUNTY
APPROVED AS TO FORM:
LEWIS COUNTY SOLID WASTE
DISPOSAL DISTRICT #1
APPROVED AS TO FORM:
H. STEWARD MENEFEE NELSON E. HUNT
By: By:
APPROVED BY RESOLUTION APPROVED BY RESOLUTION
NO.
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NO. oos--93
SON COUNTY
APPROVED AS TO FORM:
Gary Burleson
{
By:
APPROVED BY RESOLUTION
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EXHIBIT A
1991 TONNAGE OF WASTE OF JOINING COUNTIES
COUNTY 1991 TONNAGE 1 % OF TOTAL 1991
TONNAGE
THURSTON 108,000 73%
MASON 25,500 17%
JEFFERSON 14,276 10%
147,776 100%
EXHIBIT B
Mediation
FORM 2
The parties agree to attempt to settle all disputes arising under this contract through
mediation at the local offices of Judicial Arbitration & Mediation Services, Inc. (J.A.M.S.).
The complaining party must contact J.A.M.S. to schedule a mediation within thirty (30) days.
The parties may agree on a jurist from the J.A.M.S. panel. If they arc unable to agree,
J.A.M.S. will provide a list of the three available panel members and each party may strike
one. The remaining judge will serve as the mediator. Neither party may initiate arbitration
proceedings until mediation is completed
Arbitration
All disputes arising under this contract which are not resolved through mediation will be
submitted to Judicial Arbitration & Mediation Services, Inc (J.A.M.S.) for binding arbitration.
—3 OPTION 1: The parties may agree on a jurist from the J.A.M.S. panel. If they are unable
to agree, J.A.M.S. will provide a list of three available panelists and each party may strike
one. The remaining panelist will serve as the arbitrator.
ON 2: A three -judge panel will be selected to arbitrate the dispute. J.A.M.
provi•e ames of five potential arbitrators, giving each party the opportunit - rike one
name. The re - three panelists will serve as the arbitration pa. :.
The parties agree that arbitrati• ••ust be initiated • '"one year after the claimed breach
occurred and that the failure to initiate •nwithin the one-year period constitutes an
absolute bar to the institution of - w prop- s.
The aggrieved . - = can initiate arbitration by sending writ otice of an intention to
arbitrat registered or certified mail to all parties and to J.A. The notice must
ain a description of the dispute, the amount involved, and the remedy sou
--3 OPTION 1: The parties have agreed to a Future Disputes Submission Agreement, a copy
of which is attached hcretci. L.I,;L:t . This agreement sets forth the rights of the
parties if the case is arbitrated and the rules and procedures to be followed at the arbitration
hearing.
OPTION 2: If and wihcn n demand for nrbitrat:,,.i
; ...., .. � ...ri,.L,,,�,. „ A �.�..,".t, y4k.;J4.2: by J.A.M.S., s, tt:,,g fe.tl. tli. .;thy -the
rrti,-s if 1h- W 3rtit7w-
EXHIBIT C
FUTURE DISP SUBMISSION AGREEME
Structuring The Arbitration Hearing
(NOTE The Submission Agreement is important in that it sets forth the right of the parties
and the rules and procedures to be followed at the arbitration hearing. The parties must
decide whether they prefer to plan a potential arbitration proceeding before a dispute arises
or if they would rather postpone those determinations until they actually face an arbitration
hearing.)
Erhibit
FUTURE DISPUTES SUBMISSION AG
Pre -Hearing Conference
"VV
IS
The arbitrator(s) shall schedule a preheating conference to reach agreement on procedural
matters, arrange for the exchange of information, obtain stipulations, and attempt to narrow
the issues.
Discovery
rou.iveopiliotmemv‘i
94z1=1,1??'.
.„
- • •
Each party may propound only one interrogatory requesting the natn
dresses of the witnesses to be called at the arbitration hea
b. On a date determined at the pre-hearin rence, each party may -
serve one request roduction o ents. The documents are to
be exchanged two weeks la
c. Each party ma e witnesses. •sition must be concluded
within f urs and all depositions must be take s'n thirty (30) days
pre -hearing conference. Any party deposing an oppon 11 must
pay the expert's fee for attending the deposition.
%,..÷OPTION 3: It is our objective to le the arbitration proceedings by eliminating
discovery. Instead of discovery, the parties agree to the following exchange of information:
a. Either party can make a written demand for lists of the witnesses to be called
or the documents to be introduced at the hearing. The demand must be
received prior to the pre -hearing cxmference.
b. The lists must by served within fifteen (15) days of the demand.
c. No depositions may be taken for discovery.
(Continued on reverse)...
LEWIS COUNTY
DEPARTMENT OF PUBLIC SE VICES
P. O. BOX 899, CHEHALIS, WA 98532-0896
PHONE: (206) 740-1370
FAX (206) 740-1479
DIVISIONS:
PUBLIC WORKS
FACILITIES
COMMUNITY DEVELOPMENT
ACCOUNTING
FLEET & ELECTRONICS
EMERGENCY MANAGEMENT
ROBERT BERG, DIRECTOR DEBBIE LENNOX, ADMIN. SECRETARY
July 22, 1993
Gary Yando, Director of Community Development
Mason County
P.O. Box 357
Shelton, WA 98584
RE: Interlocal Agreement with Mason County
Dear Gary:
Enclosed is a fully executed interlocal agreement between Lewis, Grays Harbor
and Mason Counties authorizing Mason County to join in our waste export program. If
you have any questions, please feel free to contact me. Hope all is well with you.
RB:dll
cc: Melody Armstrong, Solid Waste Manager
f:\public\wpdoc\clebbieNletters\waste.exp
Sincerely yours,
Robert B. Berg, Director
Department of Public Services
'Quality And Safety; Service To ghe Public"
A RESOLUTION OF THE GOVERNING BOARD OF COMMISSIONERS
LEWIS COUNTY SOLID WASTE DISPOSAL DISTRICT #1
IN RE:
RESOLUTION NO. 005-93
APPROVAL OF INTERLOCAL AGREEMENT WITH MASON AND GRAYS
HARBOR COUNTIES ALLOWING MASON COUNTY TO JOIN IN WASTE
EXPORT PROGRAM AND AUTHORIZING SIGNATURES THEREON
WHEREAS, The Governing Board of Commissioners of Solid Waste Disposal
District #1 (hereinafter referred to as the "Board") has reviewed an interlocal
agreement contract agreement between Solid Waste Disposal District #1, Grays
Harbor County, and Mason County allowing Mason County to join in cooperative
waste export program under the terms of a bid award to Regional Disposal Company
(attached as Exhibit A); and,
WHEREAS, after due consideration it appears to be in the best public interest
to approve this interlocal agreement; NOW THEREFORE
BE IT RESOLVED that the Board authorizes Solid Waste Disposal District #1 to
enter into this interlocal agreement with Grays Harbor County and Mason County as
set forth in Exhibit A and the Governing Board of Commissioners for the District are
authorized to sign said interlocal agreement.
PASSED IN SPECIAL SESSION this (12.1 day of a..4 , 1993.
tso)
CHAIRMAN
GOVERNING BOARD OF COMMISSIONERS
LEWIS COUNTY SOLID WASTE DISPOSAL
DISTRICT #1