HomeMy WebLinkAbout25D - AMEND AGMT FOR SOLID WASTEREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JUNE 16, 2020
TITLE:
APPROVE AMENDMENT TO THE
AGREEMENT WITH ECONOMICS,
INC., FOR SOLID WASTE
CONSULTANT SERVICES IN AN
AMOUNT NOT TO EXCEED $64,964
(NON -GENERAL FUND)
/s/ Kristine Ridge
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 111 Reading
❑ Ordinance on 2111 Reading
❑ Implementing Resolution
❑ Set Public Hearing For_
CONTINUED
TO
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RECOMMENDED ACTION
Authorize the City Manager to amend the agreement with EcoNomics, Inc., by exercising the
one-year extension to extend the term from June 30, 2020 to June 30, 2021; expanding the
scope of work for Solid Waste Consulting Services to include additional services that address
legislative mandates; and increasing the total compensation by $49,970, plus a 20% contingency
of $14,994, for a total increase of $64,964, and a total agreement amount not to exceed $89,964,
subject to non -substantive changes approved by the City Manager and City Attorney.
DISCUSSION
On April 1, 2019, the City entered into an agreement with EcoNomics, Inc., (ENI), in an amount
not to exceed $25,000 (Agreement No. N-2019-080). The scope of this agreement included
development of cost projections for an AB 1826-compliant organics diversion program, for use
in the current Solid Waste Services Request for Proposals (RFP) process; assistance with
incorporating State -mandated diversion programs into the RFP evaluation process; assistance
with CALGreen building standards compliance; and general assistance with solid waste and
recycling compliance.
This agreement, which is set to expire June 30, 2020, includes a one-year extension option to
June 30, 2021. As the State of California continues an active legislative agenda relative to the
recycling of solid waste, jurisdictions are increasingly responsible for timely deployment of
appropriate programs and implementation of municipal code changes. To assist the City in
meeting these legislative requirements, staff desires to exercise the one-year extension in the
agreement with ENI to complete the original scope of work. Staff also requests to expand the
scope to include municipal code updates related CALGreen building standards compliance,
develop enforcement mandates for existing and new State of California mandates (i.e., AB 341,
AB 1826, and SB 1383), and add compensation for the additional work.
25D-1
Amend the Agreement with EcoNomics, Inc. for Solid Waste Consulting Services
June 16, 2020
Page 2
EcoNomics has proposed a compensation of $49,970 for this expanded scope. Staff
recommends amending the current $25,000 agreement by this amount plus a 20% contingency
of $14,994, for a total increase of $64,964 (Exhibit 1), which brings the total agreement
compensation to $89,964.
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #4 - City Financial Stability,
Objective #1 (maintain a stable, efficient and transparent financial environment); and, Goal #5 -
Community Health, Livability, Engagement & Sustainability.
ENVIRONMENTAL IMPACTS
There is no environmental impact associated with this action.
FISCAL IMPACT
The total amount of the requested amendment is $64,964. Funds are budgeted for expenditure
in FY 2020-21 as follows:
Fiscal
Accounting
Fund
Accounting Unit, Account
Year
Unit —
Description
Description
Amount
Account #
06917640-
Refuse
Refuse Collection Service,
FY 20-21
Collection
Contract Services-
$64,974
62300
Service
Professional
Total Amendment:
$64,974
NS/MLM/CK
Exhibit: 1. Amendment
25D-2
0:culIfi
FIRST AMENDMENT TO CONSULTANT AGREEMENT WITH ECONOMICS, INC.
THIS FIRST AMENDMENT to the above -referenced agreement is entered into on June 16, 2020
by and between EcoNomics, Inc. ("Consultant"), and the City of Santa Ana, a charter city and
municipal corporation organized and existing under the Constitution and laws of the State of
California ("City").
RECITALS
A. The parties entered into Agreement No. N-2019-080, dated April 1, 2019, by which
Consultant agreed to provide services to assist the City's Public Works Agency in
developing cost projections for an organics diversion program that is compliant with state
law ("Agreement").
B. The Agreement remains in effect through June 30, 2020, with provision for extension.
C. The parties now wish to extend the Agreement, amend the scope of services, and increase the
amount to be expended under the Agreement.
The Parties therefore agree:
1. Section 1, Scope of Services, is amended to include the services described on Exhibit A.
2. Section 2, Compensation, is amended to increase the total amount to be expended under the
Agreement by $64,964, which is comprised of (1) the base sum of $49,970 plus (2) a
contingency of $14,994 for additional services at the City's sole discretion.
3. Section 3, Term, is amended to extend the term of the Agreement through June 30, 2021.
4. Except as modified by this First Amendment, all terms and conditions of the Agreement shall
remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the
Agreement on the date and year first written above.
ATTEST
Daisy Gomez
Clerk of the Council
CITY OF SANTA ANA
Kristine Ridge
City Manager
signatures continue on next page
Page 1 of 2
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APPROVED AS TO FORM
Sonia R. Carvalho
City Attorney
By: IV, -f.4,
Joldi M. Funk
Assistant City Attorney
RECOMMENDED FOR APPROVAL
Nabil Saba
Executive Director
Public Works Agency
CONSULTANT
Name: r R+vcic s o t-a r/C
Title: vicc p/k1/ar7 1revxLwj
Page 2 of 2
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EXHIBIT A
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 1B: 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
25D-5
Compliance Tier Total Population
1
66
2 _
291�
3
310
4
615
Total
1182
Sample Size Needed for 9S% Confidence with CI of 10
-- 39
- —— - —72
74
83
268
Prior to the service analysis, EcoNomics staff will cross-reference each generators' service
levels from Waste Management's customer listing. Generators that do not have an
individual account will not be included in the service analysis. As each generator's service
information is calculated, the data will be aggregated into a roll -up work sheet so data for
all generators can be analyzed to make conclusions about the projected service levels for
individual generators and for the entire commercial sector.
Task 1C: Analyze aggregated data
As a next step, EcoNomics will analyze the aggregated data to determine the average
organics service levels per generator and per compliance tier as well as the average MSW
service reductions. Using this data, EcoNomics will determine the hauler's total cost of
providing organics service assuming various participation levels as well as the revenue
lost from customer's 'right -sizing' their MSW service. These two cost components will
provide the City with a total cost of AB 1826 compliance that can be communicated to
proposers during the RFP process or used to check proposers' cost assumptions during
the evaluation process.
Task 1D: Calculate Estimated Outreach Hours Needed and Determine Cost
A key factor that is rarely factored into the cost of organics recycling programs is the cost
of outreach required to implement and maintain organics programs. Each organics
program can take between 10 -25 hours of staff time to implement. EcoNomics will
include the projected outreach costs for implementing organics programs and make
recommendations for how to provide adequate staffing levels.
Task 2: Assistance with Incorporating State -Mandated Diversion Programs into RFP Evaluation
Process
Upon engagement, EcoNomics will distill complicated legislative concepts and directives into
clearly understood evaluation criteria metrics. EcoNomics will use its on -the -ground knowledge
of working within the City to assess feasibility of proposed diversion programs provided by
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haulers. An initial listing of items that will be considered as part of EcoNomics' evaluation
assistance is included below.
• Examination of what programs and participation rates are proposed to meet diversion
goals/mandates set forth in SB 1383, AB 1826, and AB 341
• Review of options proposed for residential curbside organics diversion programs to
comply with SB 1383, including 2-cart wet/dry routing, 3-cart co -collection of food scraps
in yard trimmings container, or 4-cart system with an additional cart for source -separated
food scraps only.
• Cost evaluation of organics diversion requirements set forth in SB 1383, AB 1826, and AB
1594. Implementation could be expensive unless the method (composting vs. anaerobic
digestion) and facility siting (local County -run facilities versus long hauls of over 50 miles)
are anticipated in the agreement between the selected hauler and the City. The City's
ability to direct the flow of organics and to change to the most cost-effective manner of
processing will be critical. As such, a review of the timing of expanding of a long-term
restaurant organics diversion program that provides cost -incentives to the restaurant
community will need to be coordinated with processing options.
• Evaluation of the proposed rate for single -stream recycling and organics collection to
determine if an incentive for the remaining businesses and multi -family properties in the
City to implement cost-effective recycling programs to be in compliance with AB 341.
• Review of feasibility of proposed hauler staffing to implement state -mandated diversion
programs.
• Evaluate "niche recycling" approach for the collection and diversion of Household
Hazardous Waste, Medical Waste, Sharps, Electronic Waste, and Universal Waste.
• Review any issues of tonnage origin verification, tracking and reporting from the MRF's,
compost facilities and any transfer stations used for the City's waste and recyclables.
• Evaluate the accuracy of tonnage data and to document the allocation methodology that
will be used to calculate and report the City's diversion tonnages and to comply with
enhanced reporting requirements included in AB 901.
• Evaluate proposed incentives and disincentives to ensure that the selected hauler meets
or exceeds diversion requirements.
At the direction of the City, EcoNomics can prepare a presentation of its
findings/recommendations for delivery to the Ad Hoc committee, consulting team, or the
Council -at- large. EcoNomics will work with the City and its consultant team to determine how
best to evaluate key programmatic elements into the scope of work and contract body.
Task 3: Assistance with CALGreen Compliance
CALGreen requires nearly all building projects to divert 65% or more of C&D waste away from
landfills. The next triennial update, effective January 1, 2020, may increase this diversion rate
requirement to 75% and will reduce the amount of project exemptions. The City may need to
overhaul its current permitting and application processes to strengthen compliance incentives
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25D-7
and non-compliance disincentives to comply with CALGreen. EcoNomics can provide technical
assistance to enhance existing processes to ensure higher levels of compliance with CALGreen.
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. Further, this ordinance will develop a refundable compliance
deposit system for building projects covered by CALGreen that will provide a monetary incentive
divert 65% of the C&D waste generated. For the CALGreen ordinance, Economics recently
worked with Lake Forest to adopt a C&D ordinance in July of 2019 and is familiar with this
process. Further, EcoNomics has assisted the cities of Tustin, Laguna Hills, Newport Beach,
Stanton, and Laguna Niguel with enhancing C&D recycling programs and policies to comply with
CALGreen. Non -legal staff from EcoNomics would be available to assist in providing ordinance
feedback from our extensive experience in program implementation in the City of Santa Ana.
These field-tested 'best practices' for program implementation can then be 'translated' into legal
language by the City Attorney's office and included in the ordinance to ensure the practical
application of the requirements.
Task 4: General Assistance with Solid Waste and Recycling Compliance
In addition to the work items identified above, EcoNomics will be'on-call'to assist with legislative
interpretation, CalRecycle compliance assistance, recycling -related projects, etc. Similarly, the
City may direct Economics staff to assist with other work tasks, as needed.
Specific CalRecycle general compliance assistance task assignments may include:
Assistance with filing CalRecycle Electronic Annual Reports
Develop narrative for AB 1826 and AB 341-related DPS codes; analyze and process data
from implementation efforts and develop compliance analysis for inclusion in report;
request and process data from hauler, City, County, and other agencies to provide
compelling narrative for AB 341 and AB 1826 efforts; develop draft of AB 341 and AB 1826
sections of 2019 and 2020 EAR for City review; coordinate City review and incorporate
feedback.
Assistance with CalRecycle Site Visit and Conference Call
Prepare for CalRecycle conference call and site visit; annotate conference call and site
visit agendas with requested data; answer questions re: compliance status; calculate and
verify AB 341 and AB 1826 compliance rates.
CalRecycle Compliance Troubleshooting
Assist City with compliance issues from CalRecycle; develop and assist in implementing
formal or informal plans; provide compliance data to CalRecycle; compile recurring
progress reports; etc. Please note, this task does not include interactions with CalRecycle
if the City is referred to the Jurisdictional Compliance Unit (JCU). If City is referred to the
ICU, additional consulting resources will be needed end the referral.
El
25D-8
Assistance with AB 341, AB 1826, and SB 1383 components of the mandatory ordinance
drafting
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 has assisted the City of
Newport Beach with developing an AB 341 and AB 1826 mandatory ordinance and may
be able to use some components of that ordinance to adapt to the City of Santa Ana. Non-
legal staff from EcoNomics would be available to assist in providing ordinance feedback
from our extensive experience in program implementation in the City of Santa Ana. These
field-tested 'best practices' for program implementation can then be 'translated' into
legal language by the City Attorney's office and included in the ordinance to ensure the
practical application of the requirements.
Other CalRecycle Compliance Tasks, as assigned
Assist City with other CalRecycle compliance tasks, including grant reporting and/or grant
administration for City County Payment Program, as well other CalRecycle compliance
tasks, as needed.
Proposed Budget
PresidentPresklant
vice
ProJact Manager
-__
oercema
SANTA ANA PROPOSED BUDGET
Asshtant
Hours
Budget
Poems
$205.00
$130.00
$90.00
545.00
nudge
Task 1: AS 1926 Compliance Analysis
2
20
12
56
90
S 6,610.00
9%
Task 2: Assistance with Incorporating
State -Mandated Diversion Programs
6
38
16
6
66
5 7,880.w
11%
Into RFP Evaluation Process
Task 3: Assistance with CALGreen
Compliance
10
75
76
18
119
$ 19,450.00
26%
Task 4: General Assistance with Solid
Waste and Recycling Compliance
20
210
98
18
346
$ 41,030.00
55%
TOTAL PROJECT HOURS
38
343
202
98
681
36%
TOTAL NOT TO EXCEED (Cost per
$7,790.00
544,590.00
$18,180.o0
$4,410.00
$74 970 UU
Person & Grand Total)
Hours may be moved between tasks to respond to changing conditions and work -flow prioritization, with
City permission.
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25D-9