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a. Class 1 Landfill Operations Rates. SWDD and the Contractor agree that beginning on January 1, 2018, and during the Renewal Term, compensation to the Contractor for the Class 1 landfill operations including the landfill GCCS O&M shall be Thirteen Dollars and Twenty Five Cents ($13.25) per ton of municipal solid waste (MSW) and construction & demolition (C&D) debris disposed in the Class 1 landfill ("Class 1 Rates"), subject to annual escalation as set forth in section 4 below. For purposes of clarity, the first such annual escalation shall be effective on January 1, 2019. b. Non Class 1 Landfill Operations Rates. SWDD and the Contractor agree that beginning on January 1, 2018, and during the Renewal Term, compensation to the Contractor for the Contractor's operation and management of the non-Class 1 landfill portions of the Landfill, as more specifically detailed in the Contract, shall be $2,974,004.79 per year (the "Non-Class 1 Rates"), subject to annual escalation as set forth in Section 4 below. For purposes of clarity, the first such annual escalation shall be effective on January 1, 2019. The annual Non-Class 1 Rate is inclusive of the single stream recycling services provided at the Municipal Recycling Facility, the single stream recycling services provided at Blue Cypress and the waste container provided at the yard waste facility. The annual expense set forth in 3(ii)(3) of the Seventh Amendment to Contract Agreement, dated May 17, 2016, shall terminate on December 31, 2017. 4. Annual Escalation. Effective as of the Renewal Term Start Date, Sections viii and ix of Article 3- Compensation of the Contract shall be of no further force or effect, and the adjustment for each of the Class 1 Rates and the Non-Class 1 Rates individually shall not exceed 100 percent of the change of the Consumer Price Index (CPI), specifically, The Urban Consumers Index, published by the U.S. Department of Labor, Bureau of Labor Statistics, for the Southern States. Downward adjustments resulting from a negative CPI shall be made by SWDD annually, when appropriate, without a request from the Contractor. The adjustment shall be computed as follows: For each subsequent year of the Contract, the net percentage change shall be 100 percent of the difference between the CPI as of the immediately preceding January and the second preceding January divided by the CPI as of the second preceding January. Such annual increase or decrease shall be capped at a maximum of three percent (3%).The following formula shall be used: Cost -Y' -`Yl +1 .4diustnient = X, X, _ (P1.for second preceding January , = CPI for imniediate preceding January, 5. Operational Optimization of CCCs. SWDD may elect, at any time during the Renewal Term and in its sole and absolute discretion, to alter the operation of one or more CCCs (including, without limitation, the closure of one or more CCCs) for the purpose of optimizing the waste collection system. SWDD shall notify the Contractor of such election in writing (the "Alteration Notification"), and such Alteration Notification shall contain specific direction from SWDD as to alterations the Contractor is required to I OG 2 2 70 Ninth Arnendinent to Contract Page 2 ol'5