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City of Santa Ana Scope of Work Solid Waste Consulting Services Scope of Work Task 1 Review Waste Management's Proposed Rate Adiustment for Yard Waste Collection and Processing to Comply with the Requirements of AB 1594 Historically, CalRecycle permitted jurisdictions to use yard waste and landscaping waste as alternative daily cover (ADC) on landfills for vector and erosion control, and odor mitigation, and jurisdictions received diversion credit for this use. Beginning January 1, 2020, yard waste used as ADC will instead be considered disposal In terms of measuring a jurisdiction's annual 50 percent per capita disposal rate. To receive diversion credit for this waste stream jurisdictions must divert this material in methods as defined by CalRecycle as highest and best use of the material, such as composting and other beneficial uses. Waste Management currently diverts yard waste collected in the City as ADC at the Orange County Landfills (OC Landfills). The OC Landfills do not charge haulers for yard waste used as ADC. WM is required to perform processing of the yard waste (removal of contaminants, chipping and grinding) prior to delivery to the OC Landfills, however, WM may incur additional costs to divert yard waste from landfilling as required by AB 1594. These costs may include, but are not limited to, additional pre- processing of the yard waste including enhanced screening for contaminants, transportation costs if yard waste must be taken to facilities other than OC Landfills, and composting or other processing related costs. To determine the reasonableness of the AB 1594 rate adjustment that may be requested by WM, HF&H will: 1. Review material provided to the City by WM regarding its proposed yard waste diversion plans, including supporting cost information made available by WM. 2. Meet with City staff and/or WM representatives to discuss proposed plans. 3. Request additional financial and/or operating data to confirm the reasonableness of the proposed rate increase. 4. Negotiate the rate increase for the diversion of yard waste. Task 2 Review Waste Management's Proposed Rate Adjustment to Implement a Residential Food Waste Diversion Program SB 1383 requires that City's provide food waste diversion programs for residential customers starting January 1, 2022. Therefore, WM's proposal to provide this service will be based incurring the costs of providing a compliant program for six months until the proposed extension period terminates on June 30, 2022. It is our understanding that WM has proposed to co -collect food waste with yard waste from residential customers. August 23, 2019 Page 4 HF&H Consultants, LLC