19-0219_ECO-NOMICS, INC._E9_Agenda ReportTO:
FROM:
SUBMITTED BY:
PREPARED BY:
DATE:
SUBJECT:
City of San Juan Capistrano
Agenda Report
Honorable Mayor and Members of the City Council
%"njamin Siegel, City Manager
Charlie View, Project Manager
Noreen Swiontek, Senior Management Analyst
February 19, 2019
2/19/2019
E9
First Amendment to the Professional Services Agreement with
EcoNomics, Inc. for a Sustainable Waste Diversion Program
RECOMMENDATION:
1 . Approve and authorize the City Manager to execute Amendment No. 1 to the
Professional Services Agreement with EcoNomics, Inc. to provide AB 1826
implementation assistance through June 30, 2020, for an additional $25,000 resulting
in the total agreement amount not to exceed $75,000; and,
2. Authorize the City Manager to approve an optional amendment to the agreement
extending the term of the agreement through June 30, 2021, for an additional $25,000
resulting in the total agreement amount not to exceed $100,000.
EXECUTIVE SUMMARY:
The City's annual budget for environmental programs related to waste and recycling
includes $25,000 in grant funding from Orange County Waste and Recycling. The City
utilizes these funds to comply with the State's commercial organics program regulations
(AB 1826) by contracting with EcoNomics, Inc. to administer the City's sustainable waste
diversion program.
Staff recommends that these consultant services be maintained through the end of Fiscal
Year 2019-2020, utilizing the annual $25,000 environmental education funds provided by
the County. Staff also recommends that the City Manager be authorized to approve an
optional, future amendment to the professional services agreement (subject to mutual
agreement by the parties) extending the term through June 30, 2021.
City Council Agenda Report
February 19, 2019
Page 2 of 3
DISCUSSION/ANALYSIS:
In order to comply with California legislative mandates related to commercial organics
recycling, the City retains a consultant to work with individual business owners to
implement, train, and monitor compliance. The goals of this program are to ensure that:
1) the City is in compliance with AB 1826; 2) the City is cost-effectively applying best
practices for waste reduction and increasing participation in state mandated organics
diversion programs; and, 3) the programs are implemented in a cost-effective manner for
the businesses.
EcoNomics, Inc. was retained by the City in June 2017 to assist with AB 1826 program
implementation efforts and annual review and reporting requirements. Between June
2017 and December 2018, EcoNomics, Inc. assisted the City with identifying commercial
organic generators, developing and distributing a notification letter and self-reporting
forms to all non-compliant generators, conducting site visits to non-compliant generators,
and implementing over 20 new organic recycling programs. The proposed amendment
to the agreement would expand EcoNomics, Inc. scope to incorporate additional
businesses that generate organic waste, and focus on edible food recovery regulations
currently being finalized by the State.
Success of the City's recycling and waste diversion program is dependent upon the
professional rapport, familiarity, and reliability of the team in the field representing the City
as they work with local businesses. EcoNomics, Inc. is a San Juan Capistrano based
business and has established positive relationships with local businesses and the City
franchise hauler, CR&R Environmental. EcoNomics Inc. has proven to be very capable
in assisting the City in compliance efforts with CalRecycle mandates.
Staff recommends that the City Council approve an amendment to the agreement with
EcoNomics, Inc. (Attachment 1) through Fiscal Year 2019-2020, for an additional $25,000
resulting in the total agreement amount not to exceed $75,000, and authorize the City
Manager to extend the professional services agreement, if additional consulting services
are necessary beyond June 30, 2020, for another $25,000.
FISCAL IMPACT:
There is sufficient funding in the current operating budget to cover the proposed
agreement amendment.
ENVIRONMENTAL IMPACT:
The recommended action is not subject to CEQA pursuant to Section 15060(c)(3) of
CEOA. Guidelines because the action is not a project as defined in Section 15378 of the
CEQA Guidelines, and the action would have no potential for resulting in physical change
to the environment, directly or indirectly.
City Council Agenda Report
February 19, 2019
Page 3 of 3
PRIOR CITY COUNCIL REVIEW:
• On June 6, 2017, the City Council approved a Professional Services Agreement
for a Sustainable Waste Diversion Program with EcoNomics, Inc.
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
This item does not require commission, committee, or board review.
NOTIFICATION:
EcoNomics, Inc.
CR&R Environmental Services
QC Waste and Recycling
ATTACHMENT:
Attachment -Amendment No. 1 to the Professional Services Agreement for Sustainable
Waste Diversion Programs (includes original agreement).
AMENDMENT NO. 1
TO THE SUSTAINABLE WASTE DIVERSION PROGRAMS
PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF SAN JUAN CAPISTRANO
AND
ECO/NOMICS, INC.
1. Parties and Date.
This Amendment No. 1 to the Sustainable Waste Diversion Programs Professional Services
Agreement is made and entered into as of this ·day of February, 2019, by and between the
City of San Juan Capistrano, a municipal organization organized under the laws of the State of
California with its principal place of business at 32400 Paseo Adelanto, San Juan Capistrano,
California 92675 ("City") and Eco/Nomics, [nc. a Colorado Corporation with its principal place of
business at 33155 Camino Capistrano, Suite E, San Juan Capistrano, CA 92675, ("Consultant"). City
and Consultant are sometimes individually referred to as "Party" and collectively as "Parties."
2. Recitals.
2.1 Consultant. The City and Consultant have entered into an agreement entitled
"Sustainable Waste Diversion Programs" dated June 6, 2017, ("Agreement") for the purpose of
retaining the services of Consultant to provide AB 1826 assistance.
2.2 Amendment Purpose. The City and Consultant desire to amend the Agreement to
revise the scope of services, extend the term, and increase the not-to-exceed compensation amount.
2.3 Amendment Authority. This Amendment No. l is authorized pursuant to Sections 3
and 23 of the Agreement.
3. Terms.
3 .1 Amendment. Section 1 of the Agreement is hereby amended in its entirety to read as
follows:
1. Services.
Consultant shall provide the City with the services described in the Scope of Services
attached hereto as Exhibits A and A-1. Services specified under Exhibit A-1 will extend to
technical assistance, implementation, and program monitoring of all tiers of AB 1826, new
organics recycling programs as determined by SB 1383, state compliance and review, as well
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6114 7.02100131772369 1 Attachment 1
Page 1of41
as other tasks as directed by the City.
3.2 Amendment. Section 2 of the Agreement is hereby amended in its entirety to read as
follows :
2. Compe nsat ion.
a. Subject to paragraph 2(b) below, the City shall pay for services specified in Exhibits
A and A-1 in accordance with the Schedule of Charges set forth in Exhibits B and B-1 ,
respectively.
b. In no event shall the total amount paid for services rendered by Consultant under this
Agreement exceed the sum of Seventy Five Thousand Dollars ($75 ,000). This amount is to
cover all printing and related costs, and the City will not pay any additional fees for printing
expenses. Periodic payments shall be made within 30 days of receipt of an invoice which
includes a detailed description of the work performed. Payments to Consultant for work
performed will be made on a monthly billing basis.
3.3 Amendment. Section 5 of the Agreement is hereby amended in its entirety to read as
follows:
5. Time of Performance.
Consultant shall perform its services in a prompt and timely manner and shall commence
performance upon receipt of written notice from the City to proceed ("Notice to Proceed").
Consultant shall complete the services required hereunder on or before June 30, 2020. The
Notice to Proceed shall set forth the date of commencement of work.
3.4 Amendment. Exhibits A-1 and B-1 attached hereto are hereby added as Exhibits A-1
and 8-1 to the Agreement.
3.5 C on t inuing ffe ct of Ag ree ment. Except as amended by this Amendment No. 1, all
other provisions of the Agreement remain in full force and effect and shall govern the actions of the
parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever
the term "Agreement" appears in the Agreement, it shall mean the Agreement as amended by this
Amendment No. 1.
3.6 Ad e qu ate Con s id eration. The Parties hereto irrevocably stipulate and agree that they
have each received adequate and independent consideration for the performance of the obligations
they have undertaken pursuant to this Amendment No. 1.
3.7 Se ve rabi lit y. If any portion of this Amendment No. 1 is declared invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall
continue in full force and effect.
[Signatures on Next Page]
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61147.02100131772369.1 Attachment 1
Page 2 of 41
SIGNATURE PAGE FOR AMENDMENT NO. 1 TO THE
SUSTAINABLE WASTE DIVERSION PROGRAMS
PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF SAN JUAN CAPISTRANO
AND ECO/NOMICS, INC.
CITY OF SAN JUAN CAPISTRANO
Approved By:
ECO/NOMICS, INC.
CL=
Signature Benjamin Siegel
City Manager
L.J . t \,A \b,, c:r :r ro cC'
Date
Attested By:
Maria Morris, City Clerk
61147.02100\31772369.1
Name
Title
Date
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Ft CS\ d L"'\.t
Attachment 1
Page 3 of 41
EXHIBIT A-1
Scope of Services
AB 1826 IMPLEMENTATION ASSISTANCE and OTHER TASKS AS DIRECTED
Scope of Work Deliverables
Task 1: Generator Identification Deliverables : Refined list of non-compliant Tier 1 and 2 generators
based on OC Health Care Agency listing and analysis of CR&R commercial listing.
Task 2: Generator Notification and Technical Assistance Deliverables : Develop a mail-merge to direct
mail non-compliant generators; track interactions with generators using red/green list; follow-up in-
person with non-compliant generators to implement 10 -25 cost-effective and AB 1826 compliant
organics diversion programs; deliver employee training.
Task 3: Pro ram Monitor!!JB.Q~liverable ~ Compile recurring reports to the City/CalRecycle on the AB
1826 compliance level for the City; monitor program status and retrain employees at participating
restaurants as needed; etc .
Task 4: Food donation/rescue Deliverables: Facilitate food rescue programs at food service locations;
development of a local network of food pantries; coordinate with Waste Not oc and Food Finders to
expand service offerings within the City; and development of food rescue outreach materials.
Continuing AB 1826 Generator Notification and Technical Assistance-Tiers 2 & 3
Notification of all restaurants and businesses identified in Tier 2 and Tier 3. The letter should
inform the business of the law, its compliance options , and that the City can provide technical
assistance to make the implementation process seamless. Included in th is letter is a self-
reporting form that allows generators to provide information about internal organics diversion
programs. After the City provides businesses with written notifications of their compliance
obligations, the top priority generators will be contacted. The first contact is by phone, which is
then followed by an in person visit by Consultant staff to begin the program's implementation
Technical assistance will be prioritized to 1) generators that request this service as a result of
receiving the notification letter from the City and 2) generators that have been identified as 'high
priority' due to size and/or amount of food scraps generated . Consultant will closely coordinate
with the City as part of its initial work plan development to determine the optimal number of
generators that would benefit most from direct technical assistance. It is anticipated that
Consultant can implement between 10 to 20 new organics programs.
For each account that receives technical assistance, Consultant will conduct a site audit to
gather key field data that will be used to implement a diversion program . The audits are done
by either visual estimate and/or by using statistically-validated bin sorts at sites if program
outcomes are not corresponding to expected projections. Often these plans are phased in so
that a business can "try out" a pilot before committing to the fully expanded diversion program.
Page 4 of6
61147.02 1001317723 69 .1 Attachment 1
Page 4 of 41
Food Donation/Rescue
Food rescue is an important component of compliance with AB 1826 and SB 1383. Consultant
shall incorporate food rescue into AB 1826 compliance conversations with food service
establishments and assure the City partners with Waste Not OC to coordinate the logistical
component of food rescue between local agencies such as Food Finders, etc. SB 1383 will
require a 20% recovery rate for edible food that was disposed of in 2014 . Currently, CalRecycle
is in the process of defining and quantifying edible food waste and developing the regulations
that will be used to implement the law. The final regulations are expected to be released in
early 2019. SB 1383 guidelines for collection of edible food waste will compliment AB 1826
diversion programs .
CalRecycle Compliance
As part of the annual review process, CalRecycle will schedule a conference call and
subsequent site visit with the City to assess compliance efforts for calendar years 2018 and
2019 . Consultant will work collaboratively with CR&R and City staff for preparation and
attendance of the annual CalRecycle conference call and site visit as well as required
information on AB1826 outreach and monitoring for the annual EAR report.
Program Monitoring
Consultant shall implement monthly site visits , as needed, to keep programs functioning. There
are two required components to monitor a new food scrap program : 1) to keep food scrap
contamination levels low (which is the restaurant's responsibility) and 2) to track the tonnage
collected (which is the hauler's responsibility). The most common cause of program
cancellation is contamination of the food scraps is too high . Another monitoring component is
necessary to make sure that the service levels and numbers of containers are matched to the
rate of food scrap generation.
Other Tasks as Directed
Consultant shall perform other tasks as assigned by the City to ensure for successful support of
existing organics recycling programs and the successful implementation of new organics
recycling programs, compliance with state solid waste and recycling mandates. An example of
potential tasks may involve options for stable bedding and manure processing and/or
assistance with CR&R waste hauler negotiations and recommendations for successful
implementation of AB 1826 and SB 1383 requirements into the contract.
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6 1147 .02100\31772369 l Attachment 1
Page 5 of 41
EXHIBIT B-1
Schedule of Charges/Payments
Consultant will invoice City on a monthly cycle . Consultant will include with each invoice a detailed
progress report that indicates the amount of budget spent on each task. Consultant will inform City
regarding any out-of-scope work being performed by Consultant. This is a time-and-materials
contract.
3. Schedule of Estimates Hours, Rates, and Cost by Task
3.1. Rate Schedule
The hourly r ates shown below a re al l incl usive. EcoNomic s does not charge it s client c it ie s add itiona l
fees fo r m ileage, overtime, non-standard work shifts.
m:Ji:iD l2Im?:IiJ .,~ "· ... • I il!Il
Project management, cl ient interface, strat egy, co nt ract management,
Will iam O'Toole President $205 council presenta t ions, Ca lRecyde compli ance, re levant ind ustry
a na lysis a n d p rojecti o ns
Trevor 5 . Blythe, Client interface, strategy, fi nancia l and program analys is, d ive rsion
MBA Vice President $135 p rogr am development and im pl ementation, performance monitoring,
o perations analysis, AB 1826 p roject management.
Ge iza Go u lart da Progra m AB 1826 program implementati on design; com pliance reporting; data
Silva, MS Ia n Bevan, Implementation $90 analysis; AB 1826 o ut reach and implementation ; notifi cation design ;
MB A Manager self-re porting form design; generat or identi fi cation.
Program Pu bl ic outreach, ed ucational p rograms, signage and graph ic design .
Yvonne Lau Implementation $65 waste aud its, cost-saving diversion program proposal develo p ment, AB
Coord inator 1826 outreach and implement ation ; mai l merge develo p men t.
Se rgio Escobar-Program AB 1826 program monitori ng; program education and outreach; data Pa lacios; Winley Implemen tation $45
Du rham Associate e ntry.
3.2. Proposed Budget
The table below shows the estimated budget to notify all non-complia nt Tier 2 and 3 AB 1826 generators a nd
imp lement new organics di version programs at betwee n 10 t o 25 food service establishments. Meetings w ith t he
City, Ca lRecycle conference ca ll s, and progress reporting are in cl uded in the hours shown in the table. Budget may
be moved bet ween tasks items with p rior authorizat ion by the City .
....... m ........... ...... ... m
Pruld1nt vtcePniRdil,. 1111 ............... lrnpl .... -........... -"~ Pnljl<t ,.,.. ... Coardl-Auilbnl TDllll
RUOWCH
$205.00 $ns.oo $90.00 $65 .00 $45 .00
Tall 1: Generator Natlflc.tlan •nd 4.00 18.00 52.00 TIChRICll Alslmnce 80.00 12.00 1&6.00 $U,&10.00 55%
Task z: Prou•m Manltorln1: 0.00 6 .00 12.00 24.00 70 .00 :lll.00 $ &,&1111.0ll 26%
Task 3: Other Tam As Ass11ned 8.00 12.00 7.00 6.00 10.00 u.ao ' 4,730.0ll 19%
TOTAL PROJECT HOURS 12.00 J&.00 11.DO 110.00 91.00 171 100%
TOTAL NOT TO EXQED (Cost per Person $Z,"60.00 $4.ll&Cl.OO $6,31111.00 $7,150.00 $4,140.00 $25,000.00 Ii Grand Total)
NOTE: The rates shown in the table above are all -incl us ive and i ncl ude co m puter time, printing, travel time and
expenses to and from client meetings, field expenses, te lephone, postage, and all other internal overhead costs .
EcoNo m ics does not charge its clients differential rates for overti me o r non-standa rd work sh ifts.
Page 6 of6
6 1147 02100\31772369 I Attachment 1
Page 6 of 41
Sustainable Waste Diversion Proposal
AB 1826 Implementation Assistance
Submitted by EcoNomics, Inc.
December 28, 2018
33155 Camino Capistrano, Suite E
San Juan Capistrano, California 92675
Printed on 100% post-consumer content recycled paper .
Attachment 1
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1
Table of Contents
1. Project Overview ............................................................................................................................................... 3
2. Scope of Work ..................................................................................................................................................... 4
Task 1: AB 1826 Generator Notification and Technical Assistance ................................................................ 4
Food donation/rescue ..................................................................................................................................................................... 4
CalRecycle Compliance .................................................................................................................................................................... 5
Task 2: Program Monitoring .......................................................................................................................................... 5
Task 3: Other Tasks, As Directed .................................................................................................................................. 6
Task 3a: Research Stable Bedding Processing Facilities and Develop Cost Matrix .............................................. 6
Task 3b: Research Onsite Stable Bedding Processing Technologies .......................................................................... 6
Task 3c: Present Stable-bedding Diversion Options to the City and Stable Operators ....................................... 6
Task 3d: Implement Onsite Stable-bedding Processing Pilot ........................................................................................ 7
Task 3e: Assist with AB 1826/SB 1383 Program Development for Contract Negotiations ............................. 7
3. Schedule of Estimates Hours, Rates, and Cost by Task ........................................................................ 8
3.1. Rate Schedule .............................................................................................................................................................. 8
3.2. Proposed Budget ........................................................................................................................................................ 8
Printed on 100% post-consumer content recycled paper .
Attachment 1
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2
1. Project Overview
It is our goal to assist the City in implementing AB 1826 organics diversion programs at a portion of the
non-compliant food service establishments in the City. The overarching goals of this project will be to
ensure that 1) the City is in compliance with AB 1826; 2) that the City is cost-effectively moving closer to
its Zero Waste goal by increasing participation in existing organics diversion programs; and 3) that the
programs are implemented in a cost-effective manner for the generators (restaurants).
EcoNomics was retained by the City in June 2017 to assist with AB 1826 program implementation efforts
and CalRecycle compliance. Between June 2017 and December 2018, Economics assisted the City with
identifying AB 1826 generators, developing and distributing a notification letter and self-reporting form
to all non-compliant generators, conducting site visits to all non-compliant generators, and implementing
over 20 new organic recycling programs. As a result of EcoNomics' implementation efforts, the City will
have an 100% AB 1826 compliance rate for Tier 1 generators (an increase from 50% compliance in June
2017) and a 62% compliance rate for Tier 2 generators (an increase from 25% in June 2017). EcoNomics
also assisted the City with CalRecycle compliance assessments during the 2017 reporting year, a process
which included preparing for and attending the annual conference call and site visit. During these
interactions, EcoNomics helped the City to showcase its AB 1826 compliance implementation efforts to
Cal Recycle.
For 2019 and forward, it is our intent to focus on implementing organics recycling programs at the
remaining non-compliant AB 1826 Tier 2 generators (a population of approximately 10 generators) and
the Tier 3 generators who will become non-compliant as of January 1, 2019 (a population of
approximately 40 generators). Further, during the course of our field work, we have noticed some
organics recycling programs that were set up by CR&R prior to EcoNomics' engagement by the City that
would benefit from additional education and outreach to increase participation to comply with AB 1826.
We would like to focus on bolstering participation in these programs in 2019 and forward. Lastly, we
believe there is an opportunity to explore on-site stable bedding composting at the City's many stables as
a means to reduce the amount of these materials that are being sent to the landfill. We have included
this as a proposed optional work task, as directed by the City.
We are confident that our proposed project will significantly increase both recycling and waste reduction
and will also benefit the community and environment. For example, by implementing organics diversion
programs at 100% of the approximately 50 non-compliant Tier 2 and Tier 3 generators, we expect the City
would realize an annual organics diversion tonnage of over 350 tons . It is our understanding that the food
scrap materials would be hauled to Waste Management's CORe facility by CR&R, where they would be
converted into energy and soil amendment at a waste water treatment facility through the process of
anaerobic digestion. Using CalRecycle's emission reduction factors for organic waste diversion, diverting
350 tons of organic materials from the landfill will eliminate the equivalent of over 250 metric tons of
carbon dioxide, or about the same air quality impact of taking 35 cars off of the road for a year. Further,
a critical component of implementing organics diversion programs is identifying and diverting edible food
from the landfill and into the local food pantry system. We will work to expand food rescue programs that
will benefit the community.
Printed on 100% post-consumer content recycled paper .
Attachment 1
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3
2. Scope of Work
Task 1: AB 1826 Generator Notification and Technical Assistance
Providing technical assistance to generators is critical to implementing AB 1826 programs. Traditionally,
haulers lack the in-house expertise to effectively provide technical assistance and oftentimes fall short of
compliance requirements. Further, the cost of providing organics recycling service to generators at
discounted rates creates 'disincentives' for haulers to provide diversion service lines. We recommend that
the City direct its implementation/outreach efforts through staff or its consultant.
EcoNomics recommends sending a notification letter directly to the service and billing addresses of ALL
of the restaurants identified to be Tier 2 and Tier 3. The letter should inform the business of the law, its
compliance options, and that the City can provide technical assistance to make the implementation
process seamless. Included in this letter is a self-reporting form that allows generators to provide
information about internal organics diversion programs. After the City provides businesses with written
notifications of their compliance obligations, the top priority generators will be contacted. The first
contact is by phone, which is then followed by an in person visit by EcoNomics staffto begin the program's
implementation
Technical assistance will be prioritized to 1) generators that request this service as a result of receiving
the notification letter from the City and 2) generators that have been identified as 'high priority' due to
size and/or amount of food scraps generated. Some of the non-compliant restaurants will be easier to
implement than others. There are several factors that make waste diversion program implementation
less labor-intensive at some generators including: 1) the business has made a public corporate
commitment to sustainability; 2) there is an established working relationship with the businesses and
EcoNomics. Since there are limited consultant resources to work with all 50 non-compliant accounts, it
is necessary to prioritize consulting efforts to focus on generators with a high likelihood of implementing
a waste diversion program. EcoNomics will closely coordinate with the City as part of its initial work plan
development to determine the optimal number of generators that would benefit most from direct
technical assistance.
The technical assistance and implementation process is very labor-intensive. The number of hours to fully
establish a working organics program at one generator is significant (between 10 and 25 hours). Based on
the annual budget of $25,000 set forth by the City, it is anticipated that we can implement between 10 to
20 new organics programs.
For each account that receives technical assistance, EcoNomics typically conducts a site audit to gather
key field data that will be used to implement a diversion program. The audits are done by either visual
estimate and/or by using statistically-validated bin sorts at sites if program outcomes are not
corresponding to expected projections. Often these plans are phased in so that a business can "try out" a
pilot before committing to the fully expanded diversion program.
Food donation/rescue
Food rescue is not only an important component of compliance with AB 1826 and SB 1383, but it also has
tremendous community benefits. A surprising amount of families in South Orange County are food
insecure. By coordinating with local food pantries to recover wasted food and to feed hungry families, the
Printed on 100% post-consumer content recycled paper .
Attachment 1
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4
City can demonstrate compliance with state diversion mandates and serve the less fortunate within the
community. We make a point of incorporating food rescue into our AB 1826 compliance conversations
with food service establishments. Indeed, there is a compelling business case for recovering edible food
for restaurant owners: businesses can reduce disposal costs and receive tax deductions on the value of
donated food. We have worked with local food pantries in Mission Viejo, Tustin, Anaheim, and Laguna
Hills to arrange for collection of edible food waste as a compliment to AB 1826 diversion programs. Food
Finders is a local agency that has partnered with Waste Not OC to coordinate the logistical component of
food rescue primarily in north and central Orange County. However, based on conversations with the
management at Food Finders, the agency is trying to expand its operations to South County. There may
be an opportunity to harmonize the City's AB 1826 outreach efforts with Food Finders south county
expansion push . In other cities, we have included a one-page information sheet about food rescue in AB
1826 notification letters to restaurants.
SB 1383 will require a 20% recovery rate for edible food that was disposed of in 2014. Currently,
Cal Recycle is in the process of defining and quantifying edible food waste and developing the regulations
that will be used to implement the law. The final regulations are expected to be released in early 2018.
CalRecycle Compliance
As part of the annual review process, during the term of this proposed scope of work, CalRecycle will
schedule a conference call and subsequent site visit with the City to assess compliance efforts for calendar
years 2018. The City's CalRecycle representative will send an agenda in advance of the conference call
that includes data requests re: AB 1826 outreach and monitoring as well as general compliance
information. The data request often requires extensive research and preparation in advance of the
meeting, which EcoNomics proposes would be done collaboratively with CR&R and City staff. Similarly,
for the annual CalRecycle site visit, CalRecycle will prepare an agenda with additional data requests and
clarifications. EcoNomics is proposing that the preparation, attendance, and follow-up of the annual site
visit be included in its scope in close collaboration with the City and CR&R. During CalRecycle reporting
year 2018, which will occur in early 2019, it is anticipated that EcoNomics staff will have expended
considerable effort in recruiting new AB 1826 accounts and will thus take the lead in preparing the AB
1826 outreach and monitoring reporting components of the Cal Recycle conference call and site visits. The
proposed budget reflects this additional work effort for reporting years 2018.
Task 2: Program Monitoring
The importance, and need, for program maintenance cannot be overstressed, especially for restaurants
and multi-family properties. The restaurant industry has a high labor turnover, language challenges, a
hectic work pace, usually thin profit margins, and its management style tends to be very pragmatic.
Signage disappears, training continuity may have lapsed, and chefs and immediate floor management can
also have a change in personnel. Any outreach efforts, no matter how diligent or thorough, generally have
a half-life of six-months. A monthly site visit keeps programs functioning. There are two required
components to monitor a new food scrap program: 1) to keep food scrap contamination levels low (which
is the restaurant's responsibility) and 2) to track the tonnage collected (which is the hauler's
responsibility). The most common cause of program cancellation is contamination of the food scraps is
too high. The most serious contaminant is glass. Neither compost nor anaerobic digestions facilities can
tolerate even the smallest amount of glass in the food scraps. Given the usual bar compliment to
restaurants and resorts, this is the most challenging aspect of food scrap programs. Another monitoring
component is necessary to make sure that the service levels and numbers of containers are matched to
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the rate of food scrap generation. The hauler may be losing revenue due to reduced amounts of MSW
collection. The hauler trying to maintain a higher revenue stream to offset program revenue losses will
be inclined to over-service the account. However, the restaurant needs the incentive of the lower waste
bill to enroll in the program. This dynamic results in a need for "bridging" of differing side's objectives.
Task 3: Other Tasks, As Directed
EcoNomics shall perform other tasks as assigned by the City to ensure for successful support of existing
organics recycling programs and the successful implementation of new organics recycling programs,
compliance with state solid waste and recycling mandates. Below, we have included examples of
potential tasks that the City can direct EcoNomics to conduct on an as-needed basis.
Task 3a: Research Stable Bedding Processing Facilities and Develop Cost Matrix
If directed, EcoNomics would research local facilities within a 50-mile radius that could accept stable
bedding and manure materials. Data collected for each receiving facility would include the cost per ton at
the gate, processing methods, haul costs, and end markets for materials. As a deliverable for this project,
EcoNomics would present the City with a matrix of processing options and their associated costs and
sustainability outcomes . Upon the City's selection of a facility, EcoNomics would coordinate with CR&R to
determine the charge for transportation if the processing facility operator is unwilling to collect the
materials from the stables directly. Similarly, EcoNomics will analyze current costs of landfilling stable
bedding and the previous cost of diverting these materials. The costs of the two options will provide the
baseline scenarios in which to compare alternate facilities and options. To this end, EcoNomics will survey
each of the ten stable operators to determine current cost of landfilling stable bedding, monthly
generation of stable bedding waste, and to determine their interest in on-site processing solutions.
Task 3b: Research Onsite Stable Bedding Processing Technologies
As a more sustainable and potentially lower-cost option for manure diversion, the City may consider the
use of onsite aerated composting or vermicomposting systems to process manure. These onsite systems
accelerate the decomposition process and produce a high-quality soil amendment that can be returned
to the soil or potentially sold to local farmers, thus turning a cost center into a potential revenue stream.
Depending on the size of the stables, these systems can often be bought and installed for about the same
price as 6-12 months of manure hauling costs. For example, an onsite aerated composting system at a 30-
horse stable that generates 60 cubic yards of stable bedding and manure per month would cost
approximately $15-20,000. The onsite processing of manure can reduce vehicle miles traveled along the
already congested Ortega Highway and Camino Capistrano, where many of the stables are located, and
can return critical nutrients back to local soils. There may be options to bag and sell the finished compost
to local farmers and gardeners through partnerships with non-profits such as The Ecology Center and/or
local nurseries such as The Plant Depot and Armstrong's. The City may be able to use finished compost
on landscaping projects or it can be distributed to residents during compost giveaway events.
Task 3c: Present Stable-bedding Diversion Options to the City and Stable Operators
Once both onsite and offsite processing options have been priced and researched, the next step will be
to present diversion options to the City. The City could then take the two researched options and solicit
input from stable operators on multiple processing options. At the City's direction, EcoNomics can
coordinate with stable operators to discuss processing options. This can be in the form of a presentation
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6
at a meeting open to all stable owners and operators, in-person meetings, or by contacting them via direct
mail with proposed options. The objective of coordinating with the stable owners will be to engage them
in a process that can have a significant impact on their business operations and also to seek out candidates
to pilot an on-site processing system. During interactions with stable operators, we may find that one or
more stables already use various on-site processing systems.
Task 3d: Implement Onsite Stable-bedding Processing Pilot
A pilot program sited at a single-stable will be critical in evaluating the feasibility of onsite stable bedding
processing and to assess if the system can 'scale up' to all ten stables for a long-term sustainable solution
to stable bedding diversion. Factors that will be assessed during the pilot program will include cost of
installation, throughput, cost of operation, energy costs, marketability, odor mitigation, soil benefits, etc.
To facilitate the pilot program, EcoNomics will coordinate with vendors and contractors to provide
multiple alternatives for onsite processing technologies. Further, EcoNomics can assist stables with
identifying markets for finished compost.
Task 3e: Assist with AB 1826/SB 1383 Program Development for Contract Negotiations
It is our understanding that the City will be conducting contract negotiations with CR&R for the term of
the next hauling contract. During this process, EcoNomics can provide valuable insight gained from
working with the restaurant community to ensure that the City is well-position to provide cost-effective
and sustainable organics recycling programs to this sector. For example, many restaurants in the
downtown area have issues with overages on Sunday since CR&R does not offer Sunday collection service.
We would recommend including a rate for Sunday MSW, recycling, and organics in the negotiations with
CR&R. EcoNomics has also recently completed an RFP and a contract negotiation with other Orange
County cities that incorporated the requirements of SB 1383 into the contract. We can provide
recommendations for how this was achieved without having an outsized impact on the rate structure.
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3. Schedule of Estimates Hours, Rates, and Cost by Task
3.1. Rate Schedule
The hourly rates shown below are all inclusive. EcoNomics does not charge its client cities additional
fees for mileage, overtime, non-standard work shifts.
~ l!.re'l.illr.To· 1:r.m7..ii.'7..,u~ ~ -... :.l::JL!J.. , .. :t• .: ;••L.,,,:JI -
Project management, client interface, strategy, contract management,
William O'Toole President $205 council presentations, CalRecycle compliance, relevant industry
analysis and projections
Trevor S. Blythe,
Client interface, strategy, financial and program analysis, diversion
Vice President $135 program development and implementation, performance monitoring,
MBA operations analysis, AB 1826 project management.
Geiza Goulart da Program AB 1826 program implementation design; compliance reporting; data
Silva, MS Ian Bevan, Implementation $90 analysis; AB 1826 outreach and implementation; notification des ign;
MBA Manager self-reporting form design; generator identification.
Program Public outreach, educational programs, signage and graphic design,
Yvonne Lau Implementation $65 waste audits, cost-saving diversion program proposal development, AB
Coordinator 1826 outreach and implementation; mail merge development.
Sergio Escobar-Program AB 1826 program monitoring; program education and outreach ; data Palacios; Winley Implementation $45
Durham Associate entry.
3.2. Proposed Budget
The table below shows the estimated budget to notify all non -compliant Tier 2 and 3 AB 1826 generators and
implement new organics diversion programs at between 10 to 25 food service establishments . Meetings with the
City, Cal Recycle conference calls, and progress report i ng are included in the hours shown in the table. Budget may
be moved between tasks items with prior authorization by the City.
Program Program Program
President Vice President Implementation Implementation lmplementallon % of Project
Milna1er Coordinator Assistant Total Resources
$205.00 $135 .00 $90.00 $65 .00 $45 .00
Task 1: Generator Notification and 4.00 18.00 52 .00 Techn ic al Assi stan ce 80 .00 12 .00 166.00 $13,670.00 55%
Task 2: Pro1ram Monltorln1 0.00 6.00 12.00 24.00 70.00 112.00 $ 6,600.00 26%
Task 3: Other Tasks As Assigned 8.00 12.00 7.00 6.00 10.00 43.00 $ 4,730.00 19%
TOTAL PROJECT HOURS 12.00 36.00 71.00 110.00 92.00 278 100%
TOTAL NOT TO EXCEED (Cost per Person $2,460.00 $4,860.00 $6,390.00 $7,150.00 $4,140.00 $25,000.DO
& Grand Total)
NOTE: The rates shown in the table above are all-inclusive and include computer time, printing, travel time and
expenses to and from client meetings, field expenses, telephone, postage, and all other internal overhead costs.
EcoNomics does not cha r ge its clients d ifferential rates for overtime or non -standard work shifts.
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8
CITY OF SAN JUAN CAPISTRANO
PROFESSIONAL SERVICES AGREEMENT
SUSTAINABLE WASTE DIVERSION PROGRAMS
This Agre e ment is made and ente red into as of June . I a . I 2017 by and between the
City of San Juan C apistrano, a municipal corporation organlze da'i)ij operating under the laws of
the State of California with its principal place of business at 32400 Paseo Adelanto, San Juan
Capistrano, CA 92675 ("City"), and Eco/Nomics, Inc., a Colorado Corporation its principal place
of business at 24682 Del Prado, Suite 230, Dana Point, CA 92629 (hereinafter referred to as
"Consultanf'). City and Consultant are sometimes individually referred to as "Party" and
collectively as "Parties" in this Agreement.
RECITALS
A. City is a public agency of the State of California and is in need of professional
services for the following project:
Sustainable Waste Diversion Programs -AB 1826 Assistance (hereinafter referred to as ''the
Project").
B. Consultant Is duly licensed and has the necessary qualifications to provide such
services.
C. The Parties desire by this Agreement to establish the terms for City to retain
Consultant to provide the services described herein.
AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS :
1 . Services.
Consultant shall provide the City with the services described in the Scope of Services
attached hereto as Exhibit "A."
2. Co m pe nsati on .
a. Subject to paragraph 2(b) below, the City shall pay for such services in
accordance with the Schedule of Charges set forth in Exhibit "B."
b. In no event shall the total amount paid for services rendered by
Consultant under this Agreement exceed the sum of Fifty Thousand Dollars ($50,000). This
amount is to cover all printing and related costs, and the City will not pay any additional fees for
printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice
which includes a detailed description of the work performed. Payments to Consultant for work
performed will be made on a monthly billing basis.
3. Addit iona l W ork .
If changes in the work seem merited by Consultant or the City, and informal
consultations with the other party indicate that a change is warranted, it shall be processed in
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the following manner: a letter outlining the changes shall be foiwarded to the City by Consultant
with a statement of estimated changes in fee or time schedule. An amendment to this
Agreement shall be prepared by the City and executed by both Parties before performance of
such services, or the City will not be required to pay for the changes in the scope of work. Such
amendment shall not render ineffective or invalidate unaffected portions of this Agreement.
4. Maintenance of Records.
Books, documents, papers, accounting records, and other evidence pertaining to costs
incurred shall be maintained by Consultant and made available at all reasonable times during
the contract period and tor four (4) years from the date of final payment under the contract for
inspection by City.
5. Time of Performance.
Consultant shall perform its services in a prompt and timely manner and shall
commence performance upon receipt of written notice from the City to proceed ("Notice to
Proceed"). Consultant shall complete the services required hereunder on or before June 30,
2019. The Notice to Proceed shall set forth the date of commencement of work.
6. De lays in Performanc e.
a. Neither City nor Consultant shall be considered in default of this Agreement for
delays in performance caused by circumstances beyond the reasonable control of the non-
performing party. For purposes of this Agreement, such circumstances include but are not
limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and
other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances;
sabotage or judicial restraint.
b. Should such circumstances occur, the non-performing party shall, within a
reasonable time of being prevented from performing, give written notice to the other party
describing the circumstances preventing continued performance and the efforts being made to
resume performance of this Agreement.
7. Compliance wltl1 Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and
regulations of the federal, state and local government, including Cal/OSHA requirements.
b. If required, Consultant shall assist the City, as requested, in obtaining and
maintaining all permits required of Consultant by federal, state and local regulatory agencies.
c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of
hazardous and toxic substances spilled as a result of his or her services or operations
performed under this Agreement.
8. Standard of Care
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Consultant's services will be performed in accordance with generally accepted
professional practices and principles and in a manner consistent with the level of care and skill
ordinarily exercised by members of the profession currently practicing under similar conditions.
9. Assignmen t and Subconsultant
Consultant shall not assign, sublet, or transfer this Agreement or any rights under or
Interest in this Agreement without the written consent of the City, which may be withheld for any
reason. Any attempt to so assign or so transfer without such consent shall be void and without
legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a
provision making them subject to all provisions stipulated in this Agreement. Nothing contained
herein shall prevent Consultant from employing independent associates and subconsultants as
Consultant may deem appropriate to assist in the performance of services hereunder.
10. Independent Consul tant
Consultant is retained as an independent contractor and is not an employee of City. No
employee or agent of Consultant shall become an employee of City. The work to be performed
shall be in accordance with the work described in this Agreement, subject to such directions and
amendments from City as herein provided.
11. Insurance. Consultant shall not commence work for the City until it has provided
evidence satisfactory to the City it has secured all insurance required under this section. In
addition, Consultant shall not allow any subcontractor to commence work on any subcontract
until it has secured all insurance required under this section. ·
a. Comme rcia l General Liab ili ty
(i) The Consultant shall take out and maintain, during the
performance of all work under this Agreement, in amounts not less than specified herein,
Commercial General Liability Insurance, in a form and with insurance companies acceptable to
the City.
(ii) Coverage for Commercial General Liability Insurance shall be at
least as broad as the following:
(1) Insurance Services Office Commercial General Liability
coverage (Occurrence Form CG 00 01) or exact equivalent.
for the following:
Eco/Nomics Inc . Agreement
(iii) Commercial General Liability Insurance must include coverage
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX) exclusion
deleted
(7) Contractual Liability with respect to this Contract
(8) Broad Form Property Damage
(9) Independent Consultants Coverage
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(iv) The policy shall contain no endorsements or provisions limit ing
coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one
Insured aga inst another; (3) products/completed operations liability; or (4) contain any other
exclusion contrary to the Agreement.
(v) The policy shall give City, its officials, officers, employees,
agents and City designated volunteers additional insured status using ISO endorsement forms
CG 20 10 1 o o 1 and 20 37 1 O O 1, or endorsements providing the exact same coverage.
(vi) The general liability program may utilize either deductibles or
provide coverage excess of a self~insured retention, subject to written approval by the City, and
provided that such deductibles shall not apply to the City as an additional insured.
b . Automobile Liabi lity
(i) At all times during the performance of the work under this
Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and
property damage including coverage for owned, non-owned and hired vehicles, In a form and
with Insurance companies acceptable to the City.
(ii) Coverage for automobile liability Insurance shall be at least as
broad as Insurance Services Office Form Number CA 00 01 covering automobile liability
(Coverage Symbol 1, any auto).
(iii) The policy shall give City, Its officials, officers, employees, agents
and City designated volunteers additional insured status.
(iv) Subject to written approval by the City, the automobile liability
program may utilize deductibles, provided that such deductibles shall not apply to the City as an
additional insured, but not a self-insured retention.
c. Workers' Compensat io n/Emp loyer's Llabillty
(i) Consultant certifies that he/she is aware of the prov1s1ons of
Section 3700 of the California Labor Code which requires every employer to be insured against
liability for workers' compensation or to undertake self-insurance in accordance with the
provisions of that code, and he/she will comply with such provisions before commencing work
under this Agreement.
(ii) To the extent Consultant has employees at any time during the
term of this Agreement, at all times during the performance of the work under this Agreement,
the Consultant shall maintain full compensation insurance for all persons employed directly by
him/her to carry out the work contemplated under this Agreement, all in accordance with the
'Workers' Compensation and Insurance Act," Division IV of the Labor Code of the State of
California and any acts amendatory thereof, and Employer's Liability Coverage in amounts
indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the
period required by this Agreement, workers' compensation coverage of the same type and limits
as specified in this section.
d. Pr ofessio nal Liab ili ty (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant
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shall maintain professional liability or Errors and Omissions insurance appropriate to its
profession, in a form and with insurance companies acceptable to the City and in an amount
indicated herein. This insurance shall be endorsed to include contractual liability applicable to
this Agreement and shall be written on a policy form coverage specifically designed to protect
against acts, errors or omissions of the Consultant. "Covered Professional Services" as
designated in the policy must specifically include work performed under this Agreement. The
policy must "pay on behalf of' the insured and must include a provision establishing the insurer's
duty to defend.
e. Minimu m Policy Limits Required
(i) The following insurance limits are required for the Agreement:
Commercial General Liability
Automobile Liability
Employer's Liability
Professional Liability
Combined Single Lim it
$1,000,000 per occurrence/ $2,000,000 aggregate
for bodily injury, personal injury, and property
damage
$1,000,000 per occurrence for bodily injury and
property damage
$1,000,000 per occurrence
$1,000,000 per claim and aggregate (errors and
omissions)
(ii) Defense costs shall be payable in addition to the limits.
(iii) Requirements of specific coverage or limits contained in this
section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of
any coverage normally provided by any insurance. Any available coverage shall be provided to
the parties required to be named as Additional Insured pursuant to this Agreement.
f. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City
evidence of insurance from an insurer or insurers certifying to the coverage of all insurance
required herein . Such evidence shall include original copies of the ISO CG 00 01 (or insurer's
equivalent) signed by the insurer's representative and Certificate of Insurance (Acord Form 25-
S or equivalent), together with required endorsements. All evidence of insurance shall be
signed by a properly authorized officer, agent, or qualified representative of the insurer and
shall certify the names of the insured, any additional insureds, where appropriate, the type and
amount of the insurance, the location and operations to which the insurance applies, and the
expiration date of such insurance.
g. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior
written notice of cancellation of any policy required by this Agreement, except that the
Consultant shall provide at least ten (10) days prior written notice of cancellation of any such
policy due to non-payment of premium. If any of the required coverage is cancelled or expires
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during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including
the General Liablllty Additional Insured Endorsement to the City at least ten (10) days prior to
the effective date of cancellation or expiration.
(ii) The Commercial General Liability Policy and Automobile Policy
shall each contain a provision stating that Consultant's policy is primary Insurance and that any
insurance, self-insurance or other coverage maintained by the City or any named insureds
shall not be called upon to contribute to any loss.
(iii) The retroactive date (if any) of each policy is to be no later than
the effective date of this Agreement. Consultant shall maintain such coverage continuously for
a period of at least three years after the completion of the work under this Agreement.
Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is
advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed;
or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent
to the effective date of this Agreement.
(iv) All required insurance coverages, except for the professional
liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its
officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or
others providing insurance evidence in compliance with these specifications to waive their right
of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and
shall require similar written express waivers and insurance clauses from each of Its
subconsultants.
(v) The limits set forth herein shall apply separately to each insured
against whom claims are made or suits are brought, except with respect to the limits of liability.
Further the limits set forth herein shall not be construed to relieve the Consultant from liability in
excess of such coverage, nor shall it limit the Consultant's indemnification obligations to the
City and shall not preclude the City from taking such other actions available to the City under
other provisions of the Agreement or law.
h. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance
companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or companies
with a current A. M. Best's rating of no less than A:Vll and admitted to transact in the
business of insurance in the State of California, or otherwise allowed to place insurance
through surplus line brokers under applicable provisions of the California Insurance
Code or any federal law.
i. Ad d itional Insurance Prov is io ns
(i) The foregoing requirements as to the types and limits of insurance
coverage to be maintained by Consultant, and any approval of said insurance by the City, is
not intended to and shall not in any manner limit or qualify the liabiilties and obligations
otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to,
the provisions concerning indemnification.
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(ii) If at any time during the life of the Agreement, any policy of
insurance required under this Agreement does not comply with these specifications or is
canceled and not replaced, City has the right but not the duty to obtain the insurance it deems
necessary and any premium paid by City will be promptly reimbursed by Consultant or City will
withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City
may cancel this Agreement.
(iii) The City may require the Consultant to provide complete copies of
all insurance policies in effect for the duration of the Project.
(Iv) Neither the City nor any of its officials, officers, employees, agents
or volunteers shall be personally responsible for any liability arising under or by virtue of this
Agreement.
j. Subconsultant Insurance Requirements. Consultant shall not allow any
subcontractors or subconsultants to commence work on any subcontract until they have
provided evidence satisfactory to the City that they have secured all insurance required under
this section. Policies of commercial general liability insurance provided by such subcontractors
or subconsultants shall be endorsed to name the City as an additional insured using ISO form
CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by
Consultant, City may approve different scopes or minimum limits of insurance for particular
subcontractors or subconsultants.
12. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with
counsel reasonably approved by the City), indemnify and hold the City, its officials, officers,
employees, agents and volunteers free and harmless from any and all claims, demands, causes
of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees,
settlements, loss, damage or Injury of any kind, in law or equity, to property or persons,
including wrongful death, (collectively, "Claims') in any manner arising out of, pertaining to, or
Incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials,
officers, employees, subcontractors, consultants or agents in connection with the performance
of the Consultant's services, the Project or "this Agreement, including without limitation the
payment of all consequential damages, expert witness fees and attorneys' fees and other
related costs and expenses. Notwithstanding the foregoing, to the extent Consultant's services
are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent
required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the
negligence, recklessness, or willful misconduct of the Consultant. Consultant's obligation to
indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials,
officers, employees, agents or volunteers.
b. Additional Indemnity Obligations. Consultant shall defend, with counsel
of City's choosing and at Consultant's own cost, expense and risk, any and all Claims covered
by this section that may be brought or instituted against the City, its officials, officers,
employees, agents or volunteers. Consultant shall pay and satisfy any judgment, award or
decree that may be rendered against the City, its officials, officers, employees, agents or
volunteers as part of any such claim, suit, action or other proceeding . Consultant shall also
reimburse City for the cost of any settlement paid by the City, its officials, officers, employees,
agents or volunteers as part of any such claim, suit, action or other proceeding. Such
reimbursement shall include payment for the City's attorney's fees and costs, including expert
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witness fees. Consultant shall reimburse the City, its officials, officers, employees, agents and
volunteers, for any and all legal expenses and costs incurred by each of them In connection
therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify
shall not be restricted to insurance proceeds, If any, received by the City, its officials, officers,
employees, agents and volunteers.
13. California Labor Code Requirements .
a. Consultant is aware of the requirements of California Labor Code
Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and
the performance of other requirements on certain "public works" and "maintenance" projects. If
the services are being performed as part of an applicable "public works" or "maintenance"
project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or
more, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable.
Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees
and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out
of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory
upon the Consultant and all subconsultants to comply with all California Labor Code provisions,
which include but are not limited to prevailing wages, employment of apprentices, hours of labor
and debarment of contractors and subcontractors.
b. If the Services are being performed as part of an applicable "public works"
or "maintenance" project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the
Consultant and all subconsultants performing such Services must be registered with the
Department of Industrial Relations. Consultant shall maintain registration for the duration of the
Project and require the same of any subconsultants, as applicable. This Project may also be
subject to compliance monitoring and enforcement by the Department of Industrial Relations. It
shall be Consultant's sole responsibility to comply with all applicable registration and labor
compliance requirements.
14. Verification of Employment El igibility.
By executing this Agreement, Consultant verifies that it fully complies with all
requirements and restrictions of state and federal law respecting the employment of
undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of
1986, as may be amended from time to time, and shall require all subconsultants and sub-
subconsultants to comply with the same.
15. Laws and Venue .
This Agreement shall be interpreted in accordance with the laws of the State of
California. If any action is brought to interpret or enforce any term of this Agreement, the action
shall be brought in a state or federal court situated in the County of Orange, State of California.
16. Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work
under this Agreement by giving ten (10) calendar days written notice to Consultant. In such
event, City shall be immediately given title and possession to all original field notes, drawings
and specifications, written reports and other documents produced or developed for that portion
of the work completed and/or being abandoned. City shall pay Consultant the reasonable value
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of services rendered for any portion of the work completed prior to termination. If said
termination occurs prior to completion of any task for the Project for which a payment request
has not been received, the charge for services performed during such task shall be the
reasonable value of such services, based on an amount mutually agreed to by City and
Consultant of the portion of such task completed but not paid prior to said termination. City shall
not be liable for any costs other than the charges or portions thereof which are specified herein.
Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to
damages or compensation for termination of work.
b. Consultant may terminate its obllgatlon to provide further services under
this Agreement upon thirty (30) calendar days' written notice to City only in the event of
substantial failure by City to perform In accordance with the terms of this Agreement through no
fault of Consultant.
17. Documents. Except as otherwise provided in "Termination or Abandonment,"
above, all original field notes, written reports, Drawings and Specifications and other
documents, produced or developed for the Project shall, upon payment in full for the services
described In this Agreement, be furnished to and become the property of the City .
18. Organization
Consultant shall assign Trevor Blythe as Project Manager. The Project Manager shall
not be removed from the Project or reassigned without the prior written consent of the City.
19. Limitation of Ag r eement.
This Agreement is limited to and includes only the work Included in the Project described
above.
20. Notice
Any notice or instrument required to be given or delivered by this Agreement may be
given or delivered by depositing the same in any United States Post Office, certified mail, return
receipt requested, postage prepaid, addressed to:
CITY:
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attn: Noreen Swlontek
and shall be effective upon receipt thereof.
21. Thi rd Party Rights
CONSUL TANT:
Eco/Nomics, Inc.
24682 Del Prado, Suite 230
Dana Point, CA 92629
Attn: Trevor Blythe
Nothing in this Agreement shall be construed to give any rights or benefits to anyone
other than the City and the Consultant.
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22. Equa l Opp o rt un ity Emp loyme nt.
Consultant represents that it ls an equal opportunity employer and that it shall not
discriminate against any employee or applicant for employment because of race, religion, color,
national origin, ancestry, sex, age or other interests protected by the State or Federal
Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to
initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff
or termination .
23. Enti re Agreemen t
This Agreement, with its exhibits, represents the entire understanding of City and
Consultant as to those matters contained herein, and supersedes and cancels any prior or
contemporaneous oral or written understanding, promises or representations with respect to
those matters covered hereunder. Each party acknowledges that no representations,
Inducements, promises or agreements have been made by any person which are not
incorporated herein, and that any other agreements shall be void. This Agreement may not be
modified or altered except in writing signed by both Parties hereto. This is an integrated
Agreement.
24. Se verabj li\y
The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not
render the provisions unenforceable , invalid or illegal.
25. Successors and Assigns
This Agreement shall be binding upon and shall Inure to the benefit of the successors in
interest, executors, administrators and assigns of each party to this Agreement. However,
Consultant shall not assign or transfer by operation of law or otherwise any or all of Its rights,
burdens, duties or obligations without the prior written consent of City. Any attempted
assignment without such consent shall be invalid and void.
26. Non-Waiver
None of the provisions of this Agreement shall be considered waived by either party,
unless such waiver i~ specifically specified in writing.
27. Time of Essence
Time is of the essence for each and every provision of this Agreement.
28. Ci ty's Right to Emp loy Ot her Cons ult ant s
City reserves its right to employ other consultants, including engineers , in connection
with this Project or other projects.
29. Proh ib ited Intere sts
Eco/Nomics Inc Agoeement
10
Attachment 1
Page 24 of 41
Consultant maintains and warrants that it has not employed nor retained any company
or person, other than a bona fide employee working solely for Consultant, to solicit or secure
this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any
company or person, other than a bona fide employee working solely for Consultant, any fee,
commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting
from the award or making of this Agreement. For breach or violation of this warranty, City shall
have the right to rescind this Agreement without liability. For the term of this Agreement, no
director, official, officer or employee of City, during the term of his or her service with City, shall
have any direct interest in this Agreement, or obtain any present or anticipated material benefit
arising therefrom.
30. Counterparts. This Agreement may be executed by the Parties in counterparts,
which counterparts shall be construed together and have the same effect as if all the Parties
had executed the same instrument. Counterpart signatures may be transmitted by facsimile,
email, or other electronic means and have the same force and effect as if they were original
signatures.
[SIGNATURES ON FOLLOWING PAGE]
11
Eco/Nomics Inc Agreemenl
Attachment 1
Page 25 of 41
SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF SAN JUAN CAPISTRANO
AND ECO/NOMICS, INC.
FOR SUSTAINABLE WASTE DIVERSION PROGRAMS
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first
written above.
CITY OF SAN JUAN CAPISTRANO
By: Benjamin Siegel
Title:
By: Maria Morris
Title:
APPROVED AS TO FORM:
BEST BEST & KRIEGER LLP
EcofNomics lnc . Agreemenl
12
ECO/NOMICS, INC.
By:
Title:
Signature:
\CJ .. U..hu "-O~v:>s>C c
~
Attachment 1
Page 26 of 41
EXHIBIT A
Scope of Services
AB 1826 IMPLEMENTATION ASSISTANCE
3. Scope of Work Deliverabies
H~.k J; G~n~~~te>r Jd~~rHl_fJ_~_~t!Q_ri Ditliy_E!_rables: Refined llst of non-compliant Tier 1 and 2 generators
based on OC Health Care Agency listing and analysis of CR&R commercial listing.
Task 2: Generator Notification and Technical Assis ta n ce Delivera bl es: Develop a mail-merge to direct
mail non-compliant generators; track interactions with generators using red/green list; follow-up in·
person with non-compliant generators to implement 10-25 cost-effective and AB 1826 compliant
organics diversion programs; deliver employee training _
Task l;J !~1.!n M o nit oring Deliv_erab\~~: Compile recurring reports to the City/CalRecycle on the AB
1826 compliance level for the City; monitor program status and retrain employees at participating
restaurants as needed; etc .
T ask 1': Foo d don ati on /resc ue Del iv erab les: Facilitate food rescue programs at food service locations;
development of a local network of food pantries ; coordinate with Waste Not OC and Food Finders to
expand service offerings within the City; and development of food rescue outreach materials.
13
Eco/Nomics In~. Agreemenl
Attachment 1
Page 27 of 41
EXHIBITS
Schedule of Charges/Payments
Consultant will invoice City on a monthly cycle. Consultant will include with each invoice a
detailed progress report that indicates the amount of budget spent on each task. Consultant will
inform City regarding any out-of-scope work being performed by Consultant. This is a time-and-
materlals contract.
7&8. Schedule of Estimates Hours, Rates, and Cost by Task
The table below shows the estimated budget to identify and notify all non-compliant AB 1826
generators and Implement new organics diversion programs at between 10 to 25 food service
establishments . The meetings with the Clty, conference calls, and progress reporting are included In the
hours shown in the table.
---
Vlco Program Prol!l'am Program
Pr ~ldenl Pr11sld11nt Implementation lmplomontatlon Implementation Total
Manager Coordinator Anlstant
O'Toole Blythe Goulart 6gv11n Lau
$205 .00 $135.00 $90.00 $80.00 $40.00 Hours 8udget
TISk 1:
Gan1r1tor 2.00 6 .00 1200 6.0D 12 OD Jl.00 $1,160.00
kit ntlflcatlan
Tests Z:
111.00 l '"""·" Generator
Notlftntton and 6.00 20.00 40 00 4000 lS OD
Tedlnlul
Assllt.nc.
Task J: Ptotmn '~ i .. \J 8.00 10 00 1000 80.00 Monitorin1 110.00 $1i,a90,00
Tuk4: food I donatlan/rttClll 2 00 8 .00 1200 1200 1200 46.oo I $4,010.00
D.ttver1bla1
TOTAL PROJECT I ~J 00
HOURS . 42.00 74.00 68.00 119.00 Z69
TOTAL NOTTO
El<CEED (Coit $2,460.00 $5,670.00 $6,660.00 $5,440.00 S4,760.00 $24,990.00 p«Person &
Grand Total!
NOTE: The rates shown in the table above are all-inclusive and inc lude computer time, printing,
travel time and expenses to and from client meetlnes, field expenses, telephone, postage, and all
other Internal overhead costs. EcoNomlcs does not charge its clients differential rates for overtime
or non-standard work shifts.
14
Eco/Nomics Inc . Agreement
Attachment 1
Page 28 of 41
• • •
•
•
• • • • • • • • • • • •
Sustainable Waste Diversion Proposal
Project Concept 2:
AB 1826 Implementation Assistance
Submitted by EcoNomics, Inc .
April 21, 2017
24682 Del Prado, Suite 230
Dana Point, California 92629
Attachment 1
Page 29 of 41
Table of Contents
1. Project Overview ............................................................................................................................. 3
2. Methods and Approach ................................................................................................................... 3
Key Mllestones ................................................................................................................................................ 4
Interactions with the City ............................................................................................................................... 4
Expected Project Tasks···································~······ .......... , ............. , ................. ., ..................... , .. , ..................... s
Task 1: Generator Identification ......................................................................................................................... 5
Task 2: Generator Notification and Technical Assistance ................................................................................... 7
Task 3: Program Monitoring ............................................................................................................................... 8
Task 4: Food donation/rescue ............................................................................................................................ 8
3. Scope of Work Deliverables ............................................................................................................. 9
4. Qualifications and Experience ..................................•..................•.................................................... 9
4.1. Number of years in business .................................................................................................................... 9
4.2. Names, location, and reference Information for three similar projects .................................................... 9
4.2.1. Example 1 of Similar Project-Anaheim ............................................................................................ ., ..... 9
4.2.2. Example 2 of Similar Project-Mission Viejo .......................................................................................... 10
4.2.3. Example 3 of Similar Project -Tustin ..................................................................................................... 10
5. Samples of work products for similar projeds ............................................................................... 11
5.1. Anaheim Work Product Example ........................................................................................................... 11
5.2. Mission Viejo Work Product Example .................................................................................................... 11
5.3. Tustin Work Product Example ................................................................................................................ 11
6. List of Project Personnel ................................................................................................................ 11
6.1. Primary Contact ..................................................................................................................................... 11
6.2. Supervisory Personnel ........................................................................................................................... 11
6.3. Resumes and References for Project Team ............................................................................................ 11
7&8. Schedule of Estimates Hours, Rates, and Cost by Task ............................................................... 12
9. Supplemental Materials ................................................................................................................. 13
Attachment 1
Page 30 of 41
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• • • • •
• •
• • • • • • • • •
1. Project Overview
It is our goal to assist the City in implementing AB 1826 organics diversion programs at a portion of the
non-compliant food service establishments in the City. The overarching goals of this project will be to
ensure that i) the City is in compliance with AB 1826; 2) that the City is cost-effectively moving closer to
its Zero Waste goal by increasing participation in existing organics diversion programs; and 3) that the
programs are implemented in a cost-effective manner for the generators (restaurants).
Upon engagement, it is our intent to conduct an analysis of the City's legislative compliance status vis-a-
vis AB 1826. To this end, EcoNomics will review the current franchise agreement scope of work, account
listings, CalRecycle Electronic Annual Reports, and monthly diversion tonnage reports to analyze existing
diversion program implementation levels. The objective of this process is twofold: 1) to compare current
diversion program implementation levels to state-mandated diversion requirements, and 2) to make
recommendations for additional programs or program expansions needed to comply with AB 1826. The
review process would also include an Initial kick-off meeting with City staff to discuss the City's organics
programs and to review of compliance status with CalRecycle .
We our confident that our proposed project will significantly increase both recycling and waste
reduction and will also benefit the community and environment. For example, by implementing organics
diversion programs at 100% of the approximately 42 non-compliant Tier 1 and Tier 2 generators (i.e.
food service establishments that generate four or more cubic yards of organics per week), we expect
the City would realize an annual organics diversion tonnage of over 1,300 tons. It is our understanding
that the food scrap materials would be hauled to Waste Management's CORe facility by CR&R, where
they would be converted into energy and soil amendment at a waste water treatment facility through
the process of anaerobic digestion. Using CalRecycle's emission reduction factors for organic waste
diversion, diverting 1,300 tons of organic materials from the landfill will eliminate the equivalent of over
800 metric tons of carbon dioxide, or about the same air quality impact of taking 134 cars off of the road
for a year. Further, a critical component of implementing organics diversion programs is identifying and
diverting edible food from the landfill and into the local food pantry system. If selected, we will work to
expand food rescue programs that will benefit the community.
2. Methods and Approach
Recommended Approach:
With the passage of new legislation containing aggressive diversion mandates and the increase in
statewide disposal tonnages since 2012, CalRecycle has recently enhanced its enforcement of diversion
mandates. To this end, CalRecycle's director, Scott Smith line, indicated in a January 10, 2017 letter to all
jurisdictions in California that compliance action wilt no longer be limited to the 4-year review cycles and
that going forward the department will enact an 'any-time compliance review' policy. (The entire
January 10, 2017 letter from CalRecycle is included as Exhibit 1 in Section 9 of this proposal):
"Ca/Recycle will initiate a review and may refer a jurisdiction to enforcement at any time that Ca/Recycle
receives information that a jurisdiction hos not implemented, or is not making a good faith effort to
implement, its required programs."
Attachment 1
Page 31 of 41
With CalRecycle's focus on the programmatic elements of AB 1826, the City will need to ensure that it is
implementing the requirements of both laws in good faith in order to avoid compliance action during
the 2017 review cycle. Immediate notification by the City to all AB 1826 non-compliant generators will
be a critical first step to demonstrate to CalReycle that the City is making a good faith effort. Providing
direct technical assistance to these accounts will also demonstrate forward progress to CalRecycle .
Additional information regarding our recommended approach to implementing AB 1826 diversion
programs can be found in the task descriptions included in this section. These recent developments in
state compliance enforcement policies, coupled with the recent inclusion of Tier 2 generators in January
2017, have made AB 1826 notification and implementation tasks a high priority.
Key Milestones
Key milestones associated with the project include the following metrics.
1. 100% AB 1826 compliance rate: EcoNomics will review current food scrap recycling program
implementation levels to determine the current rate of AB 1826 compliance. We will work with
the City and CR&R to develop a pathway to, and a timeline for, 100% AB 1826 compliance .
2. 50% Organics Diversion Rate by 2020 and 75% by 2025: SB 1383 set a statewide goal of diverting
50% of organics from the landfill by 2020 and 75% by 2025. EcoNomics will coordinate with the
City to develop to identify baseline organics disposal tonnages and develop a pathway to divert
these materials as the state continues to promulgate regulations as they pertain to SB 1383.
3. 20% of Edible Food Landfilled Recovered by 2025: SB 1383 also set forth a requirement that 20%
of the edible food being disposed in 2014 be recovered for food rescue. EcoNomics will work
with the City to quantify the edible food being disposed as the state continues to define this
provision of SB 1383.
Interactions with the City
We anticipate recurring meetings with the City will be the primary means of receiving project direction.
The meetings will also be used to communicate project results, milestones, and note any barriers
encountered. Initially, a series of meetings will be held to kick-off the project, present the results of our
baseline compliance and implementation analysis, and to confirm task prioritization. As the project goes
forward, the team will access the need for either bimonthly or quarterly meetings.
Commercial and food establishment diversion program implementation tracking will also be
coordinated with the City. EcoNomics has developed a reporting tool for implementation and tracking
overall project attainment. We have included a link to this tool as Exhibit 2 in Section 9: Supplemental
Information. Contained within Exhibit 2 is an example of a 'Red/green' list for the City of Rancho Mirage.
A similar format would be created for San Juan Capistrano that shows: a list of non-compliant food
service accounts in the city, the specific service levels for these accounts, and a narrative summary of
recent interactions that the hauler, the City, or the consultant has had with the account vis-a-vis
implementing waste diversion programs . This document serves as the basis for the preparation of
recurring updates that the hauler submits to City staff.
This database is housed in a cloud-based server, which allows different parties (City, hauler, consultant,
or other third parties as needed) to update it in real-time with any work done with new accounts to
implement diversion programs . On the exhibit, the red-colored accounts have refused organics recycling
service and the 1ueen-colored accounts have recvcling orograms in olace. EcoNomics will emolov this
Attachment 1
Page 32 of 41
,.
• • •
• • • • • • • • •
tool to clearly communicate implementation progress to the City, account by account. This report data
can be aggregated, queried, and manipulated, as needed, to generate specific activity reports on a
periodic basis (i.e. annually, quarterly, monthly). EcoNomics can also use its account tracking database
to report data to CalRecycle vis-a-vis the annual AB 341 and AB 1826 outreach and monitoring
requirements.
Expected Project Tasks
Task 1: Generator Identification
As noted earlier, if selected, EcoNomics will conduct a baseline compliance analysis to determine the
degree to which the City's businesses have implemented AB 1826 compliant programs . The first step in
this process is to identify the generators that are required to implement organics programs. EcoNomics
has developed a system that uses the Orange County Health Care Agency's food service permit
database. In 2015, CalRecycle published EcoNomics' methodology on its website as an approved system
to identify organic volume generation levels in Orange County. A link to EcoNomics' CalRecycle-
approved generator identification methodology is included as Exhibit 3 in Section 9: Supplemental
Information.
EcoNomics has jump-started this task by using its CalRecycle-approved generator identification
methodology to identify Tier 1, Tier 2, and Tier 3 accounts in the City that have a high probability of
generating over four yards or more of organics per week (Tiers 1 and 2) and four yards or more of MSW
per week (Tier 3). These accounts would be targeted for the first round of AB 1826 outreach and
implementation. The table shows the food service establishments that are expected to generate eight
cubic yards of organics per week as highlighted In green (8 establishments), establishments that
generate 4 or more cubic yards of organics per week as highlighted in orange (41 establishments), and
the 92 Tier 3 restaurants that have 4 or more yards of MSW on service per week and generate some
food waste materials (blue). Based on our analysis, 3 of the 8 Tier 1 generators that are not in
compliance and 39 of the 41 Tier 2 generators that are not in compliance. Our preliminary compliance
analysis uses data from the Food Recycling Hall of Fame section of CR&R's Winter 2016 Environmental
News bill insert that indicates the following restaurants have organics collection service: El Adobe (Tier
1), El Campeon (Tier 2), Ruby's Diner (Tier 1), Sundried Tomato (Tier 2), St Margaret's School (Tier 2).
Based on work in other cities, we are confident that the following Tier 1 supermarkets have internal
organics diversion programs that meet the requirements of AB 1826: Von's, Ralph's, and Costco. Upon
engagement, we will analyze CR&R's commercial account listing to confirm our AB 1826 compliance
assumptions .
Attachment 1
Page 33 of 41
Table 5.1. Preliminary AB 1826 Analysis for City of Son Juan Capistrano Using EcoNomlcs' Co/Recycle-approved
Generator Identification Methodology
Tier 1 Food Service Establishments that Generate 8+ CY /WK of Organics In Newport Beach
RESTAURANT 201+ PERSONS-COMPLEX
SUPERMARKET /BAKERY 30000+ SQ FT
SUPERMARKET/BAKERY 30000+ SQ FT-COMPLEX
TOTAL FOOD SERVICE ESTABLISHMENTS WITH B+CY/WK ORGANICS
Tier 2 Food Service Establishments that Generate 4+ CY/WK of Organics In Newport Beach
HOSPITAL OR PATIENT CARE KITCHEN 61-100 BEDS
PRIVATE SCHOOL -UNPACKAGED
PRIVATE SCHOOL-UNPACKAGED-COMPLEX
RESTAURANT 101-150 PERSONS
RESTAURANT 101-150 PERSONS -COMPLEX
RESTAURANT 151-200 PERSONS
RESTAURANT 151-200 PERSONS -COMPLEX
RESTAURANT 61-100 PERSONS
RESTAURANT 61-100 PERSONS -COMPLEX
SENIOR FEEDING NUTRITION SITE
TOTAL FOOD SERVICE ESTABLISHMENTS WITH 4+CV/WK ORGANICS
Tier 3 Food Service Establishments that Generate 4+ CY/WK of Organics In Newport Beach
DEPENDENT FOOD OPERATION WHOLESALE
MEAT MARKET UNDER 2000 SQ FT
PACKAGED WAREHOUSE UNDER 2000 SQ FT
PRIVATE SCHOOL-PREPACKAGED
PROCESSING PLANT (UN PKG) 2000-5999 SQ FT
PROCESSING PLANT (UNPKG) UNDER 2000 SQ FT
RESTAURANT 31-60 PERSONS
RESTAURANT 31-60 PERSONS -COMPLEX
RESTAURANT UNDER 31 PERSONS
RESTAURANT UNDER 31 PERSONS -COMPLEX
RETAIL BAKERY 2000+ SQ FT -COMPLEX
SUPERMARKET 2000-5999 SQ FT
SUPERMARKET 2000-5999 SQ FT -COMPLEX
SUPERMARKET UNDER 2000 SQ FT
SUPERMARK ET/BAKE RY 6000-29999 SQ FT
SUPERMARKET /BAKERY 6000-29999 SQ FT -COMPLEX
SUPERMARKET/BAKERY UNDER 6000 SQ FT
TAVERN UNDER 60 PERSONS
WHOLESALE BAKERY UNDER 2000 SQ FT
TOTAL FOOD SERVICE ESTABLISHMENTS WITH 4+CY/WK MSW
Attachment 1
Page 34 of 41
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Task Z: Generator Notification and Technical Assistance
Providing techn ical assistance to generators is critical to implementing AB 1826 programs . Traditionally,
haulers lack the in-house expertise to effectively provide technical assistance and oftentimes fall short
of compliance requirements. Further, the cost of providing organics recycling service to generators at
discounted rates creates 'disincentives' for haulers to provide diversion service lines . We recommend
that the City direct its implementation/outreach efforts through staff or its consultant.
EcoNomics recommends sending a notification letter directly to the service and billing addresses of ALL
of the restaurants identified to be Tier 1 and Tier 2. The letter should inform the business of the law, its
compliance options, and that the City can provide technical assistance to make the implementation
process seamless. A link to an AB 1826 letter used in another client city is included as Exhibit 4 in Section
9. Included in this letters is a self-reporting form that allows generators to provide information about
internal organics diversion programs. After the City 'provides businesses with written notifications of
their compliance obligations, the top priority generators will be contacted . The first contact Is by phone,
which is then followed by an in person visit by EcoNomics staff to begin the program's implementation
Technical assistance will be prioritized to 1) generators that request this service as a result of receiving
the notification letter from the City and 2) generators that have been identified as 'high priority' due
to size and/or amount of food scraps generated. Some of the restaurants listed in the table above, as
well as some of the AB 341 non-compliant businesses, will be easier to implement than others. There
are several factors that make waste diversion program implementation less labor-intensive at some
generators including: 1) the business has made a public corporate commitment to sustainability; 2)
there is an established working relationship with the businesses and EcoNomics (we have identified
some restaurants on the Tiers 1-3 lists that we have worked with in other cities to implement an
organics program). Since there are limited consultant resources to work with all 42 non-compliant
accounts, it is necessary to prioritize consulting efforts to focus on generators with a high likelihood of
implementing a waste diversion program. EcoNomics will closely coordinate with the City as part of its
initial work plan development to determine the optimal number of generators that would benefit
most from direct technical assistance.
The technical assistance and implementation process is very labor-intensive. The number of hours to
fully establish a working organics program at one generator is significant (between 10 and 25 hours).
Based on the annual budget of $25,000 set forth by the City, it is anticipated that we can implement
between 10 to 25 new organics programs per year. At this pace of implementation, the City's overall AB
1826 compliance rate will increase from 14% to 35-65% within the first year of the project. In the
following year, if the program pace were sustained, the City's Tier 1 and Tier 2 compliance rate would
approach 100%.
For each account that receives technical assistance, EcoNomics typically conducts a site audit to gather
key field data that will be used to implement a diversion program. For reference, an example of the site
assessment form used is included as Exhibit 5 in Section 9. The audits are done by either visual estimate
and/or by using statistically validated bin sorts at sites if program outcomes are not corresponding to
expected projections. Exhibit 6 is submitted as a sample document that will be prepared for each
business that is being targeted for implementation. Often these plans are phased in so that a business
can "try out" a pilot before committing to the fully expanded diversion program .
Attachment 1
Page 35 of 41
Task 3: Program Monitoring
The Importance, and need, for program maintenance cannot be overstressed, especially for restaurants
and multi-family properties. The restaurant industry has a high labor turnover, language challenges, a
hectic work pace, usually thin profit margins, and its management style tends to be very pragmatic.
Signage disappears, training continuity may have lapsed, and chefs and immediate floor management
can also have a change in personnel. Any outreach efforts, no matter how diligent or thorough,
generally have a half-life of six-months. A monthly site visit keeps programs functioning . There are two
re qui r ed components to monitor a new food scrap program: 1) to keep food scrap contamination tevels
low (wh ich is the restaurant's responsibility) and 2) to track the tonnage collected (which is the hauler's
responsibility). The most common cause of program cancellation is contamination of the food scraps is
too high . The most serious contaminant is glass. Neither compost nor anaerobic digestions facilities can
tolerate even the smallest amount of glass in the food scraps. Given the usual bar compliment to
restaurants and resorts, this is the most challenging aspect of food scrap programs. Another monitoring
component Is necessary to make sure that the service leve ls and n um b ers of co ntainers are matc hed to
the rate of food scrap generation. The hauler may be losi ng re ven u e d u e to redu ced amounts of MSW
collection. The hauler trying to maintain a higher reve nue st r ea m to offset p rogram r evenu e lo sses will
be inclined to over-service the account. However, the restaurant needs the incentive of the lower waste
bill to enroll in the program . This dynamic results in a need for "bridging" of differing side's objectives.
Task 4: Food donation/rescue
Food rescue is not only an important component of compliance with both AB 1826 and SB 1383, but it
also has tremendous community benefits. A surprising amount of families in South Orange County are
food insecure. By coordinating with local food pantries to recover wasted food and to feed hungry
families, the City can demonstrate compliance with state diversion mandates and serve the less
fortunate within the community. We make a point of incorporating food rescue into our AB 1826
compliance conversations with food service establishments. Indeed, there is a compelling business case
for recovering edible food for restaurant owners: businesses can reduce disposal costs and receive tax
deductions on the value of donated food. We have worked with local food pantries in Mission Viejo,
Tustin, Anaheim, and Laguna Hills to arrange for collection of edible food waste as a compliment to AB
1826 diversion programs. Food Finders is a local agency that has partnered with Waste Not OC to
coordinate the logistical component of food rescue primarily in north and central Orange County .
However, based on conversations with the management at Food Finders, the agency is trying to expand
its operations to South County. There may be an opportunity to harmonize the City's AB 1826 outreach
efforts with Food Finders south county expansion push. In other cities, we have included a one-page
information sheet about food rescue in AB 1826 notification letters to restaurants. Exhibit 7 contains an
example of an food rescue information sheet that was distributed In Laguna Hills .
SB 1383 will require a 20% recovery rate for edible food that was disposed of in 2014. Currently,
CalRecycle is in the process of defining and quantifying edible food waste and developing the
regulations that will be used to implement the law. The final regulations are expected to be released in
early 2018.
Attachment 1
Page 36 of 41
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3. Scope of Work Deliverables
Task 1: Generator Identification Deliverables: Refined list of non-compliant Tier 1 and 2 generators
based on OC Health Care Agency listing and analysis of CR&R commercial listing.
Task 2: Generator Notification and Technical Assistance Deliverables: Develop a mail-merge to direct
mail non-compliant generators; track interactions with generators using red/green list; follow-up In-
person with non-compliant generators to implement 10 -25 cost-effective and AB 1826 compliant
organics diversion programs; deliver employee training .
Task 3: Pro ram Monitorin Deliverables : Compile recurring reports to the City/CalRecycle on the AB
1826 compliance level for the City; monitor program status and retrain employees at participating
restaurants as needed; etc.
Task 4 : Food donation/rescue Deliverables: Facilitate food rescue programs at food service locations;
development of a local network of food pantries; coordinate with Waste Not OC and Food Finders to
expand service offerings within the City; and development of food rescue outreach materials.
4. Qualifications and Experience
4.1. Number of years in business.
Since 1977, EcoNomics, Inc. has assisted municipal clients to create solid waste and recycling systems
that are efficient, cost effective and in compliance with all federal and state laws and regulations.
EcoNomics has also assisted public and private sector businesses with strategic planning and
implementation services for recycling, source reduction, organic waste management, buy-recycled,
manufacture-for recyclability and ~he development of sustainability profiles.
4.2. Names, location, and reference information for three similar projects.
4.2.1. Example 1 of Similar Project -Anaheim
Client Organization: City of Anaheim
Project Type: AB 1826 Compliance -Organics Program Design and Implementation, Data-based Rate
Negotiation and Development
Date of Service: January 2016 -present
Contact Name and Title: Ayumi Takayasu, Streets and Sanitation Manager
Telephone: 714. 765.6801
Email: ATakayasu@anaheim.net
Description of Service Provided: EcoNomics assisted the City of Anaheim in identifying Tier 1 generators
per AB 1826 and notifying them of the requirement to divert organics. Concurrently, at the City's
direction, EcoNomics worked with the City's franchise hauler in collecting and analyzing data from a
pilot program to evaluate a rate for a full-scale commercial food scrap recycling program .
EcoNomics directly implemented over forty (40) Anaheim Tier 1 restaurants, including Angel's Stadium,
the Garden Walk, and the Packing House. These food scrap programs were implemented in June 1,
Attachment 1
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2016. As a critical part of implementing the program, EcoNomics emphasized staff training of all
restaurant employees. To this end, EcoNomics worked closely with program participants to provide
interactive and bilingual training sessions for multiple shifts of kitchen staff and servers before food
scrap collection service initiated. The emphasis on training was effective, and the pilot program
continues to divert over 60 tons of food scrap materials per month from 44 restaurants with minimal
contamination during its current nine-month operational track record. The pilot phase of the program
concluded on November 30, 2016. During the 6 month duration of the pilot, EcoNomics used
productivity data collected from the pilot program to: 1) develop a food scrap rate that provides
program participants with an incentive to enroll in the program and; (2) to ensure that the hauler is
adequately compensated for services rendered.
4.2.2. Example 2 of Similar Project -Mission Viejo
Client Organization: City of Mission Viejo
Project Type: AB 1826 Compliance -Organics Program Design and Implementation, Commercial and
Multi-family Recycling Outreach and Implementation
Date of Service: 2006 -present
Contact Name and Title: Denise Matson, Environmental Program Manager
Telephone: 949 .470.3010
Email: DMatson@cityofmissionviejo.org
Mission Viejo has been a client of EcoNomics since 2006 . During this time, EcoNomics has assisted the
City demonstrate compliance with AB 939, AB 341, and AB 1826 by implementing cost-effective waste
diversion programs within the business community. EcoNomics also assisted Mission Viejo in the
implementation of a pilot-scale organics program. The program currently diverts over 80 tons per
month of food scraps. EcoNomlcs worked directly with over 60 restaurants within the City to implement
and expand its cost-effective food scrap recycling programs since 2014. As with Anaheim, EcoNomics
used the data it has gathered from implementing these programs at food service sites to develop a rate
that provides a cost-incentive to restaurants to enroll in the program but also compensates the hauler
for the services it prov ides.
4.2.3. Example 3 of Similar Project -Tustin
Client Organization: City of Tustin
Project Type: AB 1826 Compliance -Organics Program Design and Implementation, Commercial and
Multi-family Recycling Outreach and Implementation
Date of Service: 2015 -present
Contact Name and Title: Stacey Cuevas, Public Works Manager
Telephone: 714.573.3037
Email: scue vas@tustinca.org
EcoNomics has assisted the City of Tustin with AB 1826 generator identification, notification, and
implementation for both Tier 1 and Tier 2 generators. EcoNomics oversaw the development and
delivery of notification letters to over 100 food service establishments. After the letters were
distributed, EcoNomics divided the City into 4 different zones to coordinate in-person follow-up visits
between 3 EcoNomics staff and the contract hauler, CR&R's, Sustainability Coordinator. As a result of
these efforts, over 40 new accounts have subscribed to the City's organics diversion program, which has
resulted in a five-fold increase in monthly organics diversion tonnage to over 100 tons per month.
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s. Samples of work products for similar projects
5.1. Anaheim Work Product Example
As an example of the work product for the City of Anaheim, we have included a PowerPoint
presentation that EcoNomics' Vice President delivered at the Southern California Waste Management
Forum in November 2016. The PowerPoint provides an overview of the project and the compliance
approach taken. Please follow the link below to view the PowerPoint:
http://bit.ly/AnaheimSCWMFPrezo
5.2. Mission Viejo Work Product Example
Please following the link below for an example of a cost-saving organics recycling proposal that
EcoNomics developed for a large generator in the City of Mission Viejo:
http://bit.ly/Proposal_Example
5.3. Tustin Work Product Example
Please following the link below to view a chart showing the organics diversion tonnage and
programmatic trends for the City of Tustin that resulted from EcoNomics' field efforts:
http://bit.ly/TustinOrganicsTons
6. List of Project Personnel
6.1. Primary Contact
Trevor Blythe will be the primary contact for this project.
6.2. Supervisory Personnel
William O'Toole and Trevor Blythe will be the supervisory team for this project.
6.3. Resumes and References for Project Team
In an effort to reduce paper usage, please see our Project Concept 1 submittal for resumes of
key project team members .
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7&8. Schedule of Estimates Hours, Rates, and Cost by Task
The table below shows the estimated budget to identify and notify all non-compliant AB 1826
generators and implement new organics diversion programs at between 10 to 25 food service
establishments . The meetings with the City, conference calls, and progress reporting are included in the
hours shown in the table.
Vice Program Program Program
President President Implementation Implementation Implementation Total
Manager Coordinator Assistant
O'Toole Blythe Goulart Bevan Lau
$205.00 $135.00 $90.00 $80.00 $40.00
Hours Budget
Task 1:
Generator 2.00 6.00 12.00 6.00 12.00 38.00 $3,260.00
Identification
T1sk2:
Generator
Notification and 6.00 20.00 40.00 40.00 15.00 121.00 $11,330.00
Technlcll
Assistance
Task 3: Pro1ram 2.00 8.00 10.00 10.00 80.00 110.00 $6,390.00 Monltorln1
Task4: Food
donation/rescue 2.00 8 .00 12.00 12.00 12.00 46.00 $4,010.00
Deliverables
TOTAL PROJECT 12.00 42.00 74.00 68.00 119.00 269 HOURS
TOTAL NOTTO
EXCEED (Cost $2,460.00 $5,670.00 $6,660.00 $5,440.00 $4,760.00 $24,990.00 per Person &
Grand Total)
NOTE: The rates shown in the table above are all-inclusive and include computer time, printing,
travel time and expenses to and from client meetings, field expenses, telephone, postage, and all
other internal overhead costs. EcoNomics doeS' not charge its clients differential rates for overtime
or non-standard work shifts.
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9. Supplemental Materials
The following exhibits were mentioned throughout the body of the proposal and are examples of
supplemental materials .
1. Exhibit 1: CalRecycle any time review letter
a. http://bit.ly/CalRecycle_Letter
2. Exhibit 2: Red/Green list
a. http://bit.ly/RedGreenList
3. Exhibit 3: CalRecycle approved methodology
a. http:/ /bit.ly/EcoCalRecycleMethodology
4. Exhibit 4: AB 1826 Letter and Self Reporting Form
a. http:/ /bit.Iv/ AB1826_Letter _Example
5. Exhibit 5: Site assessment form
a. http://bit.ly/Site_Assessment_Form
6. Exhibit 6: Report Of A Solid Waste Characterization And Cost Saving Proposal
a. http:/ /bit.ly/Proposal_Example
7. Exhibit 7: Food Rescue Info
a. http://bit.ly/LHFoodRescue
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