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City of Santa Ana Scope of Work Solid Waste Consulting Services CI a WAVA r' Background The City of Santa Ana (City) contracts with Waste Management (WM) for exclusive residential and commercial collection services, including permanent and temporary roll -off and bin service (excluding temporary construction and demolition debris service), and construction and demolition debris which is generated from City government operations. The City recently exercised its option to extend the term of WM's agreement to June 30, 2021. The City desires to further extend the agreement for one additional year to June 30, 2022, in orderto accommodate the City's desired timeframe forthe competitive RFP process, and to do so will require a mutual agreement between the City and WM as we understand the City does not have a unilateral option to extend it further in its sole discretion. As described below, certain regulatory requirements will need to be addressed in the extended agreement, and it is anticipated that rate adjustments for regulatory changes related to organics services will need to be negotiated with WM. Regulatory Requirements and Background The following regulations should be addressed in the City's extended solid waste agreement. AB 1594: Assembly Bill 1594, was signed by Governor Brown in 2014, and includes the following provisions: o As of January 1, 2020, the use of green material as Alternative Daily Cover (ADC) does not constitute diversion through recycling and will be considered disposal for purposes of measuring a Jurisdiction's 50 percent per capita disposal rate. Yard Waste Diversion Requirements in Current Agreement Section 14(a)(3) of the City's agreement with WM states: "Yard Waste Collection and Recycling Plastic Carts: The contents of the plastic carts containing Yard Waste will be transported to a Composting Facility which meets all state, federal and local laws for Yard Waste Diversion and which is acceptable to the City. Contractor shall be responsible to ensure that the Yard Waste collected by Contractor is diverted in compliance with CIWMA and the City's SRRE." City's 2017 Electronic Annual Report (EAR) to CalRecycle —"Green Material ADC" Although, the agreement requires WM to transport yard waste to a composting facility, the City's EAR, and CalRecycle's Disposal Reporting System, identify that yard waste collected by WM is being diverted as ADC. The City/WM reported via the 2017 Electronic Annual Report to CalRecycle: "The City's hauler, Waste Management, is currently exploring options which include in -county and out -county solutions, including utilizing OC Recycle's composting pilot programs, now in the August 23, 2019 Page 1 HF&H Consultants, LLC