2017-05-03 Waste Management of Hawaii, Inc and The County of Hawaii, Reimbursement Agreement

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WHEREAS outside counsel's independent investigation found that, while the details of the Employee's fraud varied from week -to -week, the basic structure of the fraud consisted of: (a) the Employee submitting correct weekly timesheets reflecting actual hours worked by temporary laborers at WHSL to a temporary labor agency; (b) the agency then properly paying the laborers for their actual time worked; (c) the agency generating and transmitting to the Employee a con•ect invoice for the cost of the laborers; (d) the Employee generating a false invoice or invoices for the laborers that reflected inflated hours and/or wages for the laborers; (e) the Employee submitting the false invoices to WMH for payment, (f) WMH paying the agency based on the false invoices, and (g) the agency remitting to the Employee some or all of the overpayment; WHEREAS outside counsel's investigation determined that, as a result of the Employee's fraud, WMH unknowingly overcharged the County for some temporary labor and associated costs dating back to 2008, and possibly earlier; WHEREAS outside counsel's investigation has estimated the amount that WMH unknowingly overcharged the County was approximately $934,200 for the period 2010-2014 (the "2010-2014 Overpayment"); and between $414,000 and $445,900 for the period 2008- 2009 (the "2008-2009 Overpayment"); WHEREAS outside counsel's investigation determined that the Employee's fraud may have begun prior to 2008; however, outside counsel has not been able to determine the duration or amounts of overpayments; and WHEREAS WMH wishes to reimburse the County for overpayments for both the 2010- 2014 Overpayment and the 2008-2009 Overpayment, while the County wishes to reserve its rights with respect to overpayments (if any) prior to 2008; TERMS AND CONDITIONS NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties mutually agree, represent, and warrant as follows: 1. Purpose of Agreement. The purpose of this Agreement is reconcile and reimburse certain payments made under the Landfill Constnrction, Operation and Closure Agreement (April 21, 1993) by memorializing the Parties' agreement that WMH shall reimburse the County for any and all overpayments made by the County to WMH as a result of the Employee's fraud for the periods 2010-2014 and 2008-2009. With respect to the 2010-2014 Overpayment, the Parties wish to fully and finally resolve all potential disputes between the County and WMH in exchange for WMH's reimbursement herein. With respect to the 2008-2009 Overpayment, the Parties wish to resolve all potential disputes between the County and WMH in exchange for WMH's reimbursement payment herein; provided however that the Parties agree that the amount of the 2008-2009 Overpayment may be later increased or decreased, as set forth in Section 4 below. 2. Payment. Within TWENTY (20) days after the Effective Date, WMH shall make payment to the County via check or wire transfer in the amount of ONE MILLION THREE HUNDRED FORTY-EIGHT THOUSAND TWO HUNDRED DOLLARS ($1,348,200.00) (the "Payment"), which is comprised of: Page 2 of 6