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EXHIBIT City of Santa Ana Proposal to Assist with State Compliance Analysis Project Description: The City has tasked EcoNomics with developing cost projections for a fully AB 1826-compliant organics program for use in the Request for Proposals (RFP) process it is currently undergoing. The analysis would determine the total cost of an organics program assuming 100% participation among all covered generators. Further, the City has asked EcoNomics to assist it with programmatic evaluation during its RFP process to ensure all proposed programs and rates will facilitate compliance with state mandates, including AB 1826, SB 1383, and AB 341. Lastly, EcoNomics will provide general compliance assistance to the City as it pertains to C&D recycling to comply with CALGreen and other CalRecycle compliance assistance tasks, including compliance reporting, assistance with annual compliance assessments, and other tasks as assigned. Task 1: AB 1826 Compliance Analysis EcoNomics will conduct the following steps to develop this analysis. Task 1A: Develop Costs of Organics Program As a first step, EcoNomics will use the organics program cost information provided by Waste Management to develop estimated organics program costs for all different container configurations. The organics costs provided by Waste Management assume the same route density and collection costs as equivalent MSW service and use low organics density assumptions. Both of these factors result in lower costs, which may not be realistic to expect from proposers. EcoNomics will develop an organics collection cost analysis that allows for real-time entry of variable productivity, processing costs, and density assumptions. These key assumptions can be manipulated to allow for various different cost projections. EcoNomics will develop a 'default'value based on industry averages that will be included in the cost build-up to represent a reasonable cost scenario. Task 18: Develop service recommendations for non -compliant generators to determine projected service levels and MSW reductions by compliance tier. EcoNomics will use an existing cost -calculator tool it has developed for the City of Santa Ana to project service adjustments needed for individual generators to comply with AB 1826. This calculator will compare the baseline service levels to the projected service levels to become compliant with AB 1826, which will include organics service and may include reduce MSW service. EcoNomics will also analyze AB 341 compliance options which will include the deployment of dry recycling bins and may result in further MSW reductions. EcoNomics will select a representative sample from each compliance tier in order to obtain a 95% confidence level with a 10-point confidence interval. EcoNomics will conduct the service analysis for the following number of generators, by compliance Tier: 1