HomeMy WebLinkAbout08 - Amendment No. 1 to On -Call PSA with ECO/NOMICS, Inc.Q SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
September 10, 2019
Agenda Item No. 8
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Micah Martin, Deputy Director of Public Works — Municipal
Operations Division
mmartin(c�newportbeachca.gov
PHONE: 949-644-3059
TITLE: Amendment No. One to On -Call Professional Services Agreement
with ECO/NOMICS, Inc. (C-8478-1)
ABSTRACT:
On May 9, 2017, the City entered into an On -Call Professional Services Agreement with
ECO/NOMICS, Inc., doing business in California as ECAL/NOMICS, Inc. (EcoNomics),
to provide solid waste consulting services. The contracted services include providing
assistance to City staff in the development of a new solid waste franchise system,
assisting in the data collection required by CalRecycle, and performing community and
business outreach to meet mandatory commercial and organics recycling goals. At this
time, additional services are necessary to fully update the City's solid waste program as
well as assist with the implementation of a multitude of new state mandated regulations.
The requested amendment extends the term of the agreement until May 8, 2025, and
increases the total not to exceed limit from $300,000 to $1,050,000.
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a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Approve Amendment No. One to Professional Services Agreement with
ECO/NOMICS, Inc. to extend the term of the agreement until May 8, 2025, and to
increase the not to exceed amount by $750,000 for a total not to exceed amount of
$1,050,000, and authorize the Mayor and City Clerk to execute the amendment.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for these services. It will be
expensed to the Professional Services account in the Environmental Liability Fund,
16003-811008. This account is funded through the application of a franchise fee set at
5.5% of gross receipts derived from each franchisee's solid waste handling services
within the City. Expenditures related to the preparation, adoption, or implementation of
an integrated waste management plan are considered an authorized use of these funds.
8-1
Amendment No. One to On -Call Professional Services Agreement with
ECO/NOMICS, Inc. (C-8478-1)
September 10, 2019
Page 2
DISCUSSION:
California's Department of Resources Recycling and Recovery (CalRecycle) enforces
standards set by the state legislature for solid waste diversion in California in an effort to
restore, protect, and enhance the environment to ensure public health, environmental
quality, and economic viability. CalRecycle requires local jurisdictions to implement
programs to reduce the amount of solid waste going to landfills. The State of California
has passed several bills to mandate commercial recycling and the diversion of organic
materials from the waste stream by businesses and residents throughout the state.
These bills put the responsibility on each city to ensure these programs are in place and
to complete significant reports and documentation for CalRecycle on an annual basis.
The City of Newport Beach utilizes regulations included in our non-exclusive solid waste
franchise agreements to help us achieve these state mandated diversion requirements.
Currently in these agreements, haulers are required to have a recycling program at each
account and recycle 55% of the material collected. Additionally, they pay a 16% franchise
fee on all revenues collected from City accounts: 10.5% goes into the General Fund and
5.5% goes into the Environmental Liability Fund. The current commercial franchise
agreements went into effect on November 9, 2017, and will expire on November 8, 2024.
This is a time of significant change for solid waste management in California. AB1826,
which was passed in 2014, requires businesses generating organic waste to have a
compliant mandatory organics recycling program in place. As of January 1, 2019,
businesses that generate 4 cubic yards of commercial solid waste per week are required
to arrange for organic waste recycling services. There are currently 530 food service
establishments in the City. Of these, approximately 300 are currently required to recycle
organic waste per AB 1826. Of these 300, approximately 100 have a compliant AB 1826
program in place, and 200 are non-compliant. The majority of the food -based businesses
are currently subject to AB 1826 recycling and are now under this mandate.
Further, the 2016 California Green Building Code update included new regulations for
construction and demolition waste disposal as of January 1, 2017 that required a 65%
diversion rate, which was then increased to 75% effective January 1, 2019, and is under
the current review.
Consequently, to prepare for compliance with this new legislation, the City still has a
number of tasks to complete. First, the Public Works staff and the City Attorney's Office
are in the process of amending the commercial franchise agreement to include current
regulations that contain additional and extensive reporting requirements in order to show
CalRecycle the City's compliance with the law. Second, we are in the process of updating
our Municipal Code to contain an enforcement tool for cases of non-compliance by waste
haulers, businesses, or property owners. Finally, we need to be able to provide more
outreach and training to assist business owners in achieving compliance.
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Amendment No. One to On -Call Professional Services Agreement with
ECO/NOMICS, Inc. (C-8478-1)
September 10, 2019
Page 3
In 2016, we identified the need to utilize a specialized consultant to assist with the
management of our solid waste program for a number of reasons. While the City
Attorney's Office is responsible for preparing the new franchise documents and Municipal
Code revisions, a consultant has knowledge about the many requirements placed on
haulers in franchise agreements, verifiable reporting systems, and other items that help
gain compliance with mandatory waste goals. Additionally, the City has a responsibility
to be business -friendly and provide assistance to meet these mandates and our current
staffing level does not provide for this important, additional service to the business
community.
On March 14, 2017, the City of Newport Beach circulated a Request for Qualifications
(RFQ) to firms performing these services and Council awarded a three-year contract to
EcoNomics, Inc. with a not to exceed amount of $300,000 to provide these services.
Due to the significant amount of work staff has requested of EcoNomics to assist with
reviewing and updating our solid waste program, we are approaching the not to exceed
amount at a greater rate than anticipated. EcoNomics has provided technical assistance
in the process of updating the Municipal Code to conform to current legislation and
CalGreen mandated requirements. They have also assisted in performing analysis of
haulers and businesses to determine their compliance with AB 341 and AB 1826. Their
staff has conducted site visits to many businesses to analyze what and how much waste
the businesses generate, as well as provide training for staff of the businesses who will
be responsible for implementing and continuing with compliant programs.
Moving forward, EcoNomics has a number of outstanding projects to complete before the
end of their current contract on May 8, 2020. Their projects involve continued assistance
with Council/staff working group meetings, assistance with the development of compliant
CalGreen programs, working with haulers to target non-compliant generators,
participating in workshops with haulers to educate them regarding the changes to the
franchise hauler program, assistance with compliance notification, and assistance with
the development of a compliant residential organics program.
Legislation is already in place that will require municipalities to implement new programs
and make significant changes to current municipal solid waste programs. Beginning
January 2020, green waste will no longer be accepted at the landfills for free and will not
be counted as a diversion credit as a result of AB 1383. In addition, this bill will require
all municipalities to implement a curbside organics recycling program to all residents.
EcoNomics has developed an extensive understanding of Newport Beach and the
challenges facing the community. Over the course of their contract, EcoNomics will
continue to provide necessary technical assistance and guidance to assist the City in
gaining compliance with the new laws and regulations.
Staff requests Amendment No. One with EcoNomics be executed to extend the term of
the agreement to May 8, 2025, and to increase the not to exceed amount by $750,000
for a total not to exceed amount of $1,050,000. This amendment will allow for continued
technical assistance with active programs in the city, the development of additionally
required programs, and to assist businesses and haulers to gain compliance with state
and City solid waste regulations.
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Amendment No. One to On -Call Professional Services Agreement with
ECO/NOMICS, Inc. (C-8478-1)
September 10, 2019
Page 4
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A —Amendment No. One with ECO/NOMICS, Inc.
ATTACHMENT A
AMENDMENT NO. ONE TO
ON-CALL PROFESSIONAL SERVICES AGREEMENT
WITH ECO/NOMICS, INC., WHICH WILL DO BUSINESS
IN CALIFORNIA AS ECAL/NOMICS, INC.
FOR SOLID WASTE CONSULTING
THIS AMENDMENT NO. ONE TO PROFESSIONAL SERVICES AGREEMENT
("Amendment No. One") is made and entered into as of this 10th day of September, 2019
("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California
municipal corporation and charter city ("City"), and ECO/NOMICS, INC., WHICH WILL
DO BUSINESS IN CALIFORNIA AS ECAUNOMICS, INC., a Colorado Corporation
("Consultant"), whose address is PO Box 2790 Del Mar, CA 92014, and is made with
reference to the following:
RECITALS
A. On the 9th day of May, 2017, City and Consultant entered into a Professional
Services Agreement ("Agreement") for Solid Waste Consulting ("Project").
B. The parties desire to enter into this Amendment No. One to extend the term of the
Agreement to May 8, 2025 and to increase the total compensation.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
TERM
Section 1 of the Agreement is amended in its entirety and replaced with the
following: "The term of this Agreement shall commence on the Effective Date, and shall
terminate on May 8, 2025, unless terminated earlier as set forth herein."
2. COMPENSATION TO CONSULTANT
Exhibit B to the Agreement shall be amended in its entirety and replaced to include
the Schedule of Billing Rates, attached hereto as Exhibit B and incorporated herein by
reference ("Services" or "Work"). Exhibit B to Amendment No. One shall be known as
"Exhibit B".
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Consultant for the Services on a time and expense not -to -
exceed basis in accordance with the provisions of this Section and the Schedule of Billing
Rates attached to this Amendment as Exhibit B. Consultant's compensation for all Work
performed in accordance with this Agreement, including all reimbursable items and
subconsultant fees, shall not exceed One Million Fifty Thousand Dollars and 00/100
($1,050,000.00), without prior written authorization from City. No billing rate changes
shall be made during the term of this Agreement without the prior written approval of City."
1,
The total amended compensation reflects Consultant's additional compensation
for additional Services to be performed in accordance with this Amendment No. One,
including all reimbursable items and subconsultant fees, in an amount not to exceed
Seven Hundred Fifty Thousand Dollars and 001100 ($750,000.00).
Section 4.5 shall be added in its entirety to the Agreement as follows: "As of May
8, 2020, and upon each anniversary of May 8, 2020 thereafter, the billing rates set forth
in Exhibit B ("Billing Rates") shall be adjusted in proportion to changes in the Consumer
Price Index, subject to the maximum adjustment set forth below. Such adjustment shall
be made by multiplying the Billing Rates in Exhibit B by a fraction, the numerator of which
is the value of the Consumer Price Index for the calendar month three (3) months
preceding the calendar month for which such adjustment is to be made, and the
denominator of which is the value of the Consumer Price Index for the same calendar
month immediately prior to Effective Date. The Consumer Price Index to be used in such
calculation is the "Consumer Price Index, All Items, 1982-84=100 for All Urban
Consumers (CPI -U)", for the Los Angeles Riverside -Orange County Metropolitan Area,
published by the United States Department of Labor, Bureau of Labor Statistics. If both
an official index and one or more unofficial indices are published, the official index shall
be used. If said Consumer Price Index is no longer published at the adjustment date, it
shall be constructed by conversion tables included in such new index. In no event,
however, shall the amount payable under this Agreement be reduced below the Billing
Rates in effect immediately preceding such adjustment. The maximum adjustment
increase to the Billing Rates, for any year where an adjustment is made pursuant to this
Section, shall not exceed the Consumer Price Index or 2.0% of the Billing Rates in effect
immediately preceding such adjustment, whichever is less."
3. PROJECT MANAGER
Section 5.1 of the Agreement is amended in its entirety and replaced with the
following: "Consultant shall designate a Project Manager, who shall coordinate all phases
of the Project. This Project Manager shall be available to City at all reasonable times
during the Agreement term. Consultant has designated William O'Toole to be its Project
Manager. Consultant shall not remove or reassign the Project Manager or any personnel
listed in Exhibit B of this Amendment or assign any new or replacement personnel to the
Project without the prior written consent of City. City's approval shall not be unreasonably
withheld with respect to the removal or assignment of non -key personnel.
4. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Eco/Nomics, Inc. dba Ecal/Nomics, Inc. Page 2
8-6
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: Z 6 0l °l
By.
Fv< Aaron C. Harp
City Attorney
ATTEST:
Date:
Leilani I. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Diane B
Mayor
Dixon
CONSULTANT: Eco/Nomics, Inc., which
will do business in California as
Ecallnomics, Inc., a Colorado Corporation
Date:
By:
William O'Toole
President
[END OF SIGNATURES]
Eco/Nomics, Inc. dba Ecal/Nomics, Inc. Page 3
8-7
EXHIBIT B
SCHEDULE OF BILLING RATES
Person
Title
Hourly Rates
William O'Toole
President
$205
Cerene St. John, JD
Legal Analysis
$225
Trevor S. Blythe, MBA
Vice President
$135
Geiza Goulart da Silva, MF
Project Manager
$100
Ian Bevan, MBA
Project Analyst
$90
Tina Nguyen, MA
Project Analyst
$90
Yvonne Lau
Associate Analyst
$65
Eco/Nomics, Inc. dba Ecal/Nomics, Inc. Page B-1 g_g