20-0210_ECONOMICS, INC._Letter Agreement32400 PASCO ADELANTO
SAN JUAN CAPMTRANO, CA 92675
(949) 4931171
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FEBRUARY 10, 2020
ECONOMICS, INC.
33155 CAMINO CAPISTRANO
SUITE E
SAN JUAN CAPISTRANO, CA 92675
Dear Mr. Blythe:
MEMK"" OF TK CRY Couwk
TROY BOURNE
SEROIO FARIAS
BRIAN L. MARYOTT
DEREK REEVE
JOHN TAYLOR
Letter A Bement for Municipal Solid Waste Services Transitions Plan Assistance
This letter shall be our Agreement ("Letter Agreement") regarding the Municipal Solid Waste
(MSW) Services Transition Plan described below ("Services") to be provided by Eco/Nomics,
Inc. a Colorado Corporation ("Consultant") as an independent contractor to the City of San Juan
Capistrano (the "City") for the City's MSW Services Transition Plan ("Project"). Consultant is
retained as independent contractor and is not an employee of the City. City and Consultant are
sometimes referred to herein as "Party" or "Parties."
The Services to be provided are more particularly described in the Scope of Services attached
hereto as Exhibit "A" and are incorporated herein by reference. The term of this Letter
Agreement shall be from February 10, 2020 to June 30, 2020. Services on the Project shall begin
immediately and shall be completed within the term of this Letter Agreement, unless extended
by the City in writing.
Consultant shall perform all Services under this Letter Agreement in a skillful and competent
manner, consistent with the standards generally recognized as being employed by professionals
in the same discipline in the State of California, and consistent with all applicable laws.
Consultant represents that it, its employees and subcontractors have all licenses, permits,
qualifications and approvals of whatever nature that are legally required to perform the Services,
including any required business license, and that such licenses and approvals shall be maintained
throughout the term of this Letter Agreement.
Consultant has represented to the City that certain key personnel will perform and coordinate the
Services under this Letter Agreement. Should one or more of such personnel become
unavailable, Consultant may substitute other personnel of equal competence upon written
approval of the City. In the event that the City and Consultant cannot agree as to the substitution
of key personnel, the City shall be entitled to terminate this Letter Agreement for cause. The key
personnel for performance of this Letter Agreement are as follows: William O'Toole, Trevor
Blythe, and Geiza Goulart.
Eco/Nomics, Inc'
February, 10, 2020
Page 2 of 6
Compensation shall be based on the actual amount of time spend in adequately performing the
Services and shall be billed at the hourly rate(s) described in the Consultant's rate sheet, attached
hereto as Exhibit "B" and incorporated herein by reference]. The total compensation shall not
exceed $8,300.00 without written approval of the ASSISTANT CITY MANAGER]. Consultant's
invoices shall include a detailed description of the Services performed. Invoices shall be
submitted to the City on a monthly basis as performance of the Services progresses. The City
shall review and pay the approved charges on such invoices in a timely manner.
Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and
1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq.,
("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the
performance of other requirements on "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. City shall provide
Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement
of this Letter Agreement upon request. Consultant shall make copies of the prevailing rates of
per diem wages for each craft, classification or type of worker needed to execute the Services
available to interested parties upon request, and shall post copies at the Consultant's principal
place of business and at the project site. Consultant shall defend, indemnify and hold the City,
its officials, officers, employees and agents free and harmless i'Mm any, cialni car IIabiIity 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 (Labor Code Sections 1771,
1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll
records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and
1815) and debarment of contractors and subcontractors (Labor Code Sections 1777.1). The
requirement to submit certified payroll records directly to the Labor Commissioner under Labor
Code section 1771.4 shall not apply to work performed on a public works project that is exempt
pursuant to the small project exemption specified in Labor Code Section 1771.4.
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. Notwithstanding the foregoing, the contractor
registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to
work performed on a public works project that is exempt pursuant to the small project exemption
specified in Labor Code Sections 1725.5 and 1771.1.
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. Any stop orders issued by the Department of
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Eco/Nomics, Inc'
February 10, 2020
Page 3 of 6
Industrial Relations against Consultant or any subcontractor that affect Consultant's performance
of services, including any delay, shall be Consultant's sole responsibility. Any delay arising out
of or resulting from such stop orders shall be considered Consultant caused delay and shall not
be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials,
officers, employees and agents free and harmless from any claim or liability arising out of stop
orders issued by the Department of Industrial Relations against Consultant or any subcontractor.
Consultant shall provide proof of: A. Commercial General Liability Insurance, of at least
$1,000,000 per occurrence/$2,000,000 aggregate for bodily injury, personal injury and property
damage, at least as broad as Insurance Services Office Commercial General Liability most recent
Occurrence Form CG 00 01; B. Automobile Liability Insurance for bodily injury and property
damage including coverage for owned, non -owned and hired vehicles, of at least $1,000,000 per
occurrence for bodily injury and property damage, at least as broad as most recent Insurance
Services Office Form Number CA 00 01 covering automobile liability, Code 1 (any auto); C.
Workers' Compensation in compliance with applicable statutory requirements and Employer's
Liability Coverage of at least $1,000,000 per occurrence; and D. Consultants providing
professional services shall provide Professional Liability (Errors and Omissions) Insurance of at
least $1,000,000. Insurance carriers shall be licensed to do business in California and maintain an
agent for process within the state. Such insurance carrier shall have not less than an "A -:VII"
rating according to the latest Best Key Rating unless otherwise approved by the City. The City,
its officials, officers, employees, agents and authorized volunteers shall be named as Additional
Insureds on Consultarit's policies of Commercial General Liability and Automobile Liability
insurance and such coverage provided to the City as an Additional Insured shall apply on a
primary and non-contributory basis. Waiver of subrogation endorsements in favor of the City
shall be provided on Consultant's policies of Commercial General Liability, Automobile
Liability and Workers' Compensation/Employer's Liability insurance.
The City may terminate this Letter Agreement at any time with or without cause. If the City
finds it necessary to terminate this Letter Agreement without cause before Project completion,
Consultant shall be entitled to be paid in full for those Services adequately completed prior to the
notification of termination. Consultant may terminate this Letter Agreement only upon 30
calendar days' written notice to the City only in the event of City's failure to perform in
accordance with the terms of this Letter Agreement through no fault of Consultant.
To the fullest extent permitted by law, Consultant shall defend (with counsel of City's choosing),
indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and
harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss,
damage or injury of any kind, in law or equity, to property or persons, including wrongful death,
in any manner arising out of, pertaining to, or incident to any 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 Letter
Agreement, including without limitation the payment of all damages, expert witness fees and
attorney's fees and other related costs and expenses. Consultant's obligation to indemnify shall
not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials,
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Eco/Nomics, Inc'
February 10, 2020
Page 4 of 6
officers, employees, agents, or volunteers.
If Consultant's obligation to defend, indemnify, and/or hold harmless arises out of Consultant's
performance of "design professional" services (as that term is defined under Civil Code section
2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully
incorporated herein, Consultant's indemnification obligation shall be limited to claims that arise
out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the
Consultant, and, upon Consultant obtaining a final adjudication by a court of competent
jurisdiction, Consultant's liability for such claim, including the cost to defend, shall not exceed
the Consultant's proportionate percentage of fault.
Consultant shall keep itself fully informed of and in compliance with all local, state and federal
laws, rules and regulations in any manner affecting the performance of the Project or the
Services, including all Cal/OSHA requirements; all emissions limits and permitting requirements
imposed by the California Air Resources Board (CARB) or other governmental agencies; and all
water quality laws, rules and regulations of the Environmental Protection Agency, the State
Water Resources Control Board and the City.
By executing this Letter 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. Consultant shall maintain records of its
compliance, including its verification of each employee, and shall make them available to the
City or its representatives for inspection and copy at any time during normal business hours. The
City shall not be responsible for any costs or expenses related to Consultant's compliance with
the requirements. To the same extent and under the same conditions as Consultant, Consultant
shall require all of its subcontractors, sub -subcontractors and consultants performing any work
relating to the Project or this Letter Agreement to make the same verifications and comply with
all requirements and restrictions provided herein. Consultant's failure to comply or any material
misrepresentations or omissions relating thereto shall be grounds for terminating this Letter
Agreement for cause.
By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700
of the California Labor Code which require every employer to be insured against liability for
Workers' Compensation or to undertake self-insurance in accordance with the provisions of that
Code, and agrees to comply with such provisions before commencing the performance of the
Services. Finally, Consultant represents that it is an equal opportunity employer and it shall not
discriminate against any subcontractor, employee or applicant for employment in violation of
state or federal law. As provided for in the indemnity obligations of this Letter Agreement,
Consultant shall indemnify City against any alleged violations of this paragraph, including, but
not limited to, any fines or penalties imposed by any governmental agency.
This Letter 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 Letter Agreement, the action shall
be brought in a state or federal court situated in Orange County, State of California. In addition
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Eco/Nomics, Inc
February 10, 2020
Page 5 of 6
to any and all contract requirements pertaining to notices of and requests for compensation or
payment for extra work, disputed work, claims and/or changed conditions, Consultant must
comply with the claim procedures set forth in Government Code sections 900 et seg, prior to
filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit
based upon the Government Code claims shall be limited to those matters that remain unresolved
after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions
have been followed by Consultant. If no such Government Code claim is submitted, or if any
prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant
shall be barred from bringing and maintaining a valid lawsuit against the City.
Consultant shall not assign, sublet, or transfer this Letter Agreement or any rights under or
interest in this Letter Agreement without the written consent of the City, which may be withheld
for any reason. This Letter Agreement may not be modified or altered except in writing signed
by both parties. Except to the extent expressly provided for in the termination paragraph, there
are no intended third -party beneficiaries of any right or obligation of the Parties.
This is an integrated Letter Agreement representing the entire understanding of the parties as to
those matters contained herein and supersedes and cancels any prior oral or written
understanding or representations with respect to matters covered hereunder. Since the Parties or
their agents have participated fully in the preparation of this Letter Agreement, the language of
this Letter Agreement shall be construed simply, according to its fair meaning, and not strictly
for or against any Party. The captions of the various paragraphs are for convenience and ease of
reference only, and do not define, limit, augment, or describe the scope, content or intent of this
Letter Agreement.
Consultant warrants that the individual who has signed this Letter Agreement has the legal
power, right and authority to make this Letter Agreement and bind the Consultant hereto. If you
agree with the terms of this Letter Agreement, please indicate by signing and dating where
indicated below.
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Eco/Nomics, Inc'
February 10, 2020
Page 6 of 6
CITY OF SAN JUAN CAPISTRANO
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ECONOMICS, INC.
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Date
.Sun Jttun Capistrano. Pr svr►wr ir the PtiNi to Enhance the f 101firk
EXHIBIT A
Scope of Work
Task 1: Assistance with Contract Transition
The City negotiated a franchise agreement with CR&R that is effective July 1, 2020. State laws AB
1826 and SB 1383 will require a rapid and far-reaching implementation of organics programs by
January 1, 2022. Further, the new franchise will require all businesses that currently use mixed -
waste processing to implement a source -separated recycling program in order to maintain a 100%
AB 341 compliance rate. To comply with these legislative mandates will require intensive and
sustained field outreach and City oversight. Further, the new franchise requires CR&R to develop
and implement a contract transition plan that sets forth a compliance plan for state -mandated
diversion programs. EcoNomics has recently assisted the cities of Tustin and Laguna Niguel with
implementing comprehensive contract transitions that have yielded desirable AB 1826 and SB
1383 compliance outcomes. Further, CalRecycle has recently indicated that failure for any City to
attain a 100% AB 341 or AB 1826 compliance rate will result in the City developing a correction
plan to achieve the desired compliance rates. Failure to implement the correction plan or attain
the desired compliance rates will result in referral of the City to CalRecycle's Jurisdiction
Compliance Unit (JCU), which may result in monetary fines. At the most recent CalRecycle site visit
on February 6, 2020, CalRecycle requested that the City develop an informal plan to increase AB
1826 compliance to 100% by Feb of 2021. Therefore, it is paramount that the City use the franchise
transition process to increase the City's AB 341 and AB 1826 compliance rate to avoid further
enforcement action from CalRecycle.
Per discussions with City staff, after a thorough review of the new franchise, EcoNomics
recommends sending CRU a letter in late February outlining the required components of the
transition plan and requesting specific program performance metrics, anticipated compliance
rates, staff allocations, implementation pacing, and timelines. Upon review of the transition plan
submitted by CR&R in response to the City's letter, EcoNomics will provide edits and suggestions
to assist the City in meeting its State -mandated compliance obligations. EcoNomics is
recommending that the City Attorney review the draft letter prior to distribution to CR&R.
Deliverables:
1. Review of new franchise agreement (4 hours)
2, Suggested recommendations to enhance compliance attainment (4 hours)
3, Draft letter to CR&R requesting transition plan with specific compliance implementation
components (5 hours)
4, Incorporate feedback from City Attorney and/or senior management (3 hours)
5. Review of CR&R transition plan and provide edits to enhance compliance attainment (4 hours)
6. Other transition -related tasks as assigned by the City (5 hours)
Pq
Task 2: Assistance with Ordinance Development and Municipal Code Update
It is our understanding that the City is considering adopting an ordinance that would require all AB
341, AB 1826 and SB 1383 generators to have waste diversion programs in place or face
enforcement action from the City. EcoNomics assisted the City of Newport Beach with developing
an AB 341 and AB 1826 mandatory ordinance that was adopted in September 2019 and is now in
effect. EcoNomics may be able to use some components of the Newport beach ordinance to adapt
to the City of San Juan Capistrano. Non -legal staff from EcoNomics would be available to assist in
providing ordinance feedback from our extensive experience in program implementation. These
field-tested 'best practices' for program implementation can then be 'translated' into legal
language by the City Attorney and included in the ordinance to ensure the practical application of
the requirements.
Deliverables:
1. 2 - 3 meetings with City staff to identify code sections for revision and to develop concepts for
program implementation to comply with state diversion mandates (10 hours)
2. Review of final SB 1383 draft regulations and model ordinance to develop conceptual
frameworks for inclusion in City ordinance (5 hours)
3. Review of proposed draft ordinance from City Attorney's office and provide feedback on
program implementation (5 hours)
4. Other ordinance -related tasks as assigned by the City (5 hours)
3
EXHIBIT B
SCHEDULE OF RATES
Vice ! Project
SJC PROPOSED President President Analyst Percent of
yBUDGET , Hours Budget Proposed
$205.00 $135.00 $90.00
Budget
Task 1: Assistance with
2 25 4 31 $4,145.00 50
Contract Transition 9'0
I
Task 2: Assistance with {
Ordinance Development and 2 25 4 31 $4,145.00 50%
Municipal Code Update
TOTAL PROJECT HOURS 4 50 8 62 5096
TOTAL NOT TO EXCEED
(Cost per Person & Grand $820.00 $6,750.00 $720.00 $8,290.00
Total)
Schedule of
Hourl Rates
Position
William O'Toole
President $205
Trevor S. Blythe, MBA
Vice President and Project
$135
Manager
Geiza Goulart, MS
Project Analyst
$90
0