22-0401_ECONOMICS, INC._Letter Agreement32400 PASEO ADELANTO
SAN JUAN CAPISTRANO, CA 92675
(949) 493-1171
(949) 493-1053 FAX
siryt w.�anluancaprslrnno, otg
APRIL 1, 2022
ECONOMICS, INC.
832 CAMINO DEL MAR
SUITE 2
DEL MAR, CA 92014
Dear Mr. Blythe:
MEMBERS OF THE CITY COUNCIL
TROYBOURNE
SERGIO FARIAS
HOWARD HART
DEREK REEVE
JOHN TAYLOR
Letter Agreement for SB 1383 M u I ti-Fami ly Food Waste Recy c I i ng Im p lementation
This letter shall be our Agreement ("Letter Agreement") regarding the SB 1383 Multi -family
Food Waste Recycling Implementation Program 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 SB 1383 Multi -family Food Waste
Recycling Program ("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 April 1, 2022, to March 30, 2023. 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.
San .Juan Capistrano: PreserOng the Past to Enhance the Future
" f'r.nlCd on 4GU°;, recyrletl caper
Eco/Nomics, Inc.
April 1, 2022
Page 2 of 10
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: Trevor Blythe, Kim Riley,
Emma Appel, and Valerie Ferrufmo.
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 $10,000.00 without written approval of the PUBLIC Woks DIRECTOR. 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 ori 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 from any claim or liability 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
San duals Capistrano; Presei-ving the fast to Enhance the Futrrre
�� oni,=a a�. u?n•, F_r_yci�d nanPr
Eco/Nomics, Inc.
April 1, 2022
Page 3 of 10
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
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 Consultant'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,
Scm Juan Capistrano- Preserving the Pact to Enhance the FIdnre
Eco/Nomics, Inc.
April 1, 2022
Page 4 of 10
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,
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
San Juan Capistrano: Preseriing the Po,�t to Enhance the Frrtrrc
A
" r�rnli=<� pn cpD"', rery Jeu paper
Eco/Nomics, Inc.
April 1, 2022
Page 5 of 10
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
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 seq. 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.
San Juan Capistrano: Preserving the Past to Enhance the Future
0 -.111 - ill', _11, d Layer
Eco/Nomics, Inc.
April 1, 2022
Page 6 of 10
CITY OF SAN JUAN CAPISTRANO
Approved By:
T omas n
P irec or
Date
�/.6/zozz
ECONOMICS, INC.
JA'
Signature
Trevor S Blythe
Name
Vice President and Secretary
Title
March 9, 2022
Date
San Jean Capistrano: Preserving the Past to Enhance the Frrtrrrc>
A
" 1- 111 nr 1f16", recycled paper
Eco/Nomics, Inc.
April 1, 2022
Page 7 of 10
EXHIBIT A
SCOPE OF SERVICES
Consultant is tasked with SB 1383 food waste recycling implementation and outreach to
the City's ten multi -family properties. Eight of the ten multi -family properties do not have
food waste recycling services from the City's franchise solid waste hauler, CR&R Inc.
All multi -family units shall receive the same Scope of Services as needed.
The following tasks will be conducted:
Task 1 A: Contact Property
The City distributed direct -mailed notifications to all multi -family properties without a
food scrap recycling program to notify the property of its non-compliance and of its
compliance obligation. This notification included the Consultant, (EcoNomics'), contact
information. EcoNomics staff will respond to calls from property managers regarding the
letter. For accounts that do not respond to the letter by the noted deadline, EcoNomics
will follow-up directly with the property manager of the non-responsive properties to
discuss its compliance obligations. During these conversations, EcoNomics will
communicate the requirements of SB 1383 and the City's local ordinance, the rate
incentives for multi -family organics, the outreach assistance available to the
management to educate residents of the program, and potential fines for non -
attainment. EcoNomics staff will work to obtain approval of the program, schedule a
presentation to the Homeowners Association Board (if the property is managed by such
an entity), schedule an onsite meeting to further discuss details of the program, or
obtain agreement to conduct a site assessment to identify locations in existing waste
enclosures to deliver organics recycling containers.
Task 113: Conduct Site Assessment
Upon attaining permission to conduct a site assessment with the property
management company, EcoNomics will conduct a site assessment with the following
objectives:
Identify existing trash and recycling bin inventory and service levels
Determine baseline disposal costs
Measure bin enclosures to assess feasibility of delivering additional organics
containers
Confirm green waste recycling program is in place
Gather data to develop digital map of property showing existing enclosure
locations, enclosure dimensions, enclosure trash and recycling bin inventories,
and enclosures that could house additional organics recycling bins
San Juan Cal istrano. Preserving the Past to Enhance the Future
,OW,
Eco/Nomics, Inc.
April 1, 2022
Page 8 of 10
The data from the site assessment will be incorporated into a digital map
showing all bin locations on the property. Further, baseline service levels for trash
and recycling containers will be entered into an Excel spreadsheet to identify baseline
collection costs.
Task 1C: Develop Proposal for Property and Present to Property
Management Company/Homeowner Association Board
Using data gathered during the site assessments, EcoNomics will develop a cost -
proposal for the property to incorporate organic waste recycling into existing service
levels. To develop the cost proposal, EcoNomics will use a spreadsheet pre -
populated with existing CR&R rates. Using this calculator will allow EcoNomics to
efficiently evaluate multiple service scenarios and incorporate the most cost-effective
organics recycling service. EcoNomics will include multiple options to incorporate
organics recycling service into the cost proposal for the property to allow for a
phased -in, multi -month implementation process. This will allow time for residents to
adjust to the new program. The proposal will also include an outreach plan tailored
to the property to maximize residential participation.
Upon submittal of a cost proposal, EcoNomics will present the property management
company or HOA the cost proposal and answer any questions. If needed, staff from
EcoNomics will attend HOA Board presentations or schedule onsite meetings with
property management staff to present the proposal directly to the decision
maker(s). EcoNomics will also conduct sufficient follow-up to attain a decision from
the property within one month of submitting the proposal. This will entail weekly follow-
up with the recipient of the proposal via email, phone calls, or onsite visits.
Task 1 D: Conduct Onsite Training of Residents
EcoNomics will coordinate with the property manager to implement resident outreach prior
to the delivery of organics recycling containers. EcoNomics will provide the property
manager with a draft memo to residents regarding the implementation of the program,
which will include graphics illustrating how the program will work. The outreach material
will also include a Quick Reference Code (QRC) linking to the City's `how to' organics
recycling video. Whenever possible, EcoNomics will request that the property manager
send `pre -notification' to all residents prior to the onsite distribution of outreach
material. The message will also note that all EcoNomics staff are fully vaccinated for
COVID-19 and that masks and appropriate social distancing protocols will be observed
during the outreach distribution.
During onsite distribution of outreach material, EcoNomics will go door-to-door to all
residential units within the property (or, if a pilot program is being implemented, to all
residents using the enclosure where the pilot organics bin will be located) and knock
on each door. If a resident answers, EcoNomics staff will provide the resident with a
San Juan Capistromw Prr se`-+ing the Pail to Enhance the f tatuty
Eco/Nomics, Inc.
April 1, 2022
Page 9 of 10
kitchen pail with compost bags, informational brochure (provided by CR&R), and a
letter on the property management and/or City of San Juan Capistrano letterhead. To
maximize the number of residents that answer their door, whenever possible,
EcoNomics will conduct outreach after 5 pm on weekdays. Further, EcoNomics staff
that are fluent in Spanish will be made available upon request by the property
manager to discuss the program with Spanish-speaking residents, as needed. If the
door is not answered after the first attempt, EcoNomics will make note and return for
one additional attempt for a total of two attempts to contact the resident. If, upon the
second attempt, the resident does not answer the door, EcoNomics will leave the
kitchen pail with compost bags, letter, and outreach material on the residents'
doorstop with a note providing a direct line to staff who are available to answer
questions. EcoNomics will coordinate with the CR&R sustainability team to assist with
onsite direct outreach to reduce consulting staff time needed to conduct outreach.
EcoNomics will also provide staffing, along with CR&R sustainability coordinators, at
property events to `kick-off the new program, as needed. Such events may include
pool parties, events in community rooms, picnics, etc. EcoNomics, along with CR&R
sustainability coordinator(s), may coordinate with property management or HOA
boards for tabling events in common areas to reach a greater number of residents. If
residents are unable to be reached in person, EcoNomics will host a `town hall' style
presentation and answer questions about the new program. This town hall may be
conducted in person or via an online forum such as Zoom or GoToMeeting,
depending on the property management's preference and COVID-19 public health
directives at the time. The number of resident interactions conducted by
EcoNomics staff, as well as the number of kitchen pails distributed, will be tracked
by property and resident unit number, then reported to the City monthly.
Task 1 E: Monitor and Troubleshoot Program
EcoNomics staff will conduct weekly site visits for the first month after the program is
implemented to confirm that CR&R delivered the requested equipment and to ensure
that the organics cart or bin is being collected by the driver. If EcoNomics notes any
operational issues, it will follow-up with CR&R to troubleshoot, as needed. Should
unacceptable contamination or participation levels that are not in line with the City's
municipal code occur, EcoNomics staff will coordinate with the property management to
suggest additional outreach and education to residents.
San Juan Capistrano: Preserving the Past to Enhance the Futrtre
�, Piin!rd nn tfK "s. Paper
Eco/Nomics, Inc.
April 1, 2022
Page 10 of 10
[WAM111,111111
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.
This is a time -and -materials contract.
Table 1: Proposed Budget
-Staff hours may be moved between tasks upon City approval.
Son Jtwn Cctpistrerno: Preset -wing the Pct,et to Fnhctnce the Future
n
Vice
Proloet
Coordinator
Reld
President
Manager
TOTALSTAFF
"e
Riley
Appel
Ferufita
NOUIIS*
TOTAlC057
$147.00
$98.00
$87.00
$49.OD
Task 1A: Contact Property
1
3
5
5
14
S 1,121.00
'Task 1B: Conduct Site Assesment
1
3
8 1
12
24
$ 1,725.00
'Task 1C: Develop and Present Proposal
1
5
8
12
26
$ 1,921.00
'Task 1D: Conduct Onsite Training
1
5
8
32
46
$ 2,901.00
Task 3E: Monitor and Troubleshoot Program
0
4
4
32
40
$ 2,806.00
TOTAL
4
zo
33
93
150
$ 9,976.00
-Staff hours may be moved between tasks upon City approval.
Son Jtwn Cctpistrerno: Preset -wing the Pct,et to Fnhctnce the Future
n