Loading...
HomeMy WebLinkAbout06 - CalRecycle Grant Funding and Approval of Amendment to On-Call PSA for Solid Waste Consulting ServicesTO: FROM: CITY OF NEWPORT BEACH City Council Staff Report June 28, 2022 Agenda Item No. 6 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Micah Martin, Deputy Public Works Director, mmartin@newportbeachca.gov PHONE: 949-644-3055 TITLE: Resolution No. 2022-45: CalRecycle Grant Funding and Approval of Amendment No. Three to On -Call Professional Services Agreement with EcoNomics, Inc. for Solid Waste Consulting Services ABSTRACT: The State of California Department of Resources Recycling and Recovery (CalRecycle) administers a Local Assistance Grant Funding Program. To be eligible to apply for and receive grants, an applicant's governing body must adopt a resolution authorizing the submittal of grant applications and the acceptance of grant funds. The City Council did so in 2017 with the approval of Resolution No. 2017-68, but the resolution will expire on October 25 of this year. Therefore, staff recommends City Council approval of Resolution No. 2022-45, which if adopted, would enable the City of Newport Beach (City) to continue pursuing grant opportunities with CalRecyle. Staff is also recommending acceptance of a CalRecycle SB 1383 Local Assistance Grant award in the amount of $122,083, which staff applied for under the authority granted pursuant to Resolution No. 2017-68, and approval of the related amendment to the City's fiscal year 2022-23 operating budget. Lastly, staff is requesting City Council approval of Amendment No. Three to the City's On -Call Professional Services Agreement with EcoNomics, Inc. which, if approved, would increase the not -to -exceed contract amount by $122,038. This amount would be paid for with the CalRecycle grant funds. RECOMMENDATION: 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; b) Adopt Resolution No. 2022-45, A Resolution of the City Council of the City of Newport Beach, California, Authorizing Submittal ofApplication(s) for All CalRecycle Grants for Which the City of Newport Beach is Eligible for Five (5) Years; 6-1 Resolution No. 2022-45: CalRecycle Grant Funding and Approval of Amendment No. Three to On -Call Professional Services Agreement with EcoNomics, Inc. for Solid Waste Consulting Services June 28, 2022 Page 2 c) Accept a CalRecycle SB 1383 Local Assistance grant award in the amount of $122,038; and approve Budget Amendment No. 23-002 to increase revenue by $122,038 in the CalRecycle grant account, 0108051-431490-G2280 and to increase expenditure appropriations by the same amount in the Refuse Professional Services account, 0108051-811008-G2280; and d) Approve Amendment No. Three to On -Call Professional Services Agreement with EcoNomics, Inc. for consulting and staff support services to assist the City with management of the City's Solid Waste program. DISCUSSION: On October 24, 2017, the City Council approved Resolution No. 2017-68, authorizing the public works director, or his designee, to execute on behalf of the City all grant documents and requests for payments necessary to secure CalRecycle grant funds and implement CalRecycle grants. The resolution is valid for five years and will expire on October 25, 2022. A new resolution is required to continue pursuing grant opportunities with CalRecycle. Staff recommends approval of this new resolution to allow the City to continue to take advantage of CalRecycle's Local Assistance Grant Program opportunities as they may arise. CalRecycle's Local Assistance Grant Program recently provided for California cities to apply for and receive grants to assist with the implementation of regulations and requirements associated with SB 1383. The total amount available statewide from CalRecycle for the grants was $57,000,000 and funding was allocated to each city based on population size. The City was originally allocated $113,640. However, some cities declined to participate, so the total grant amount for the City was raised to $122,038. The grant application submitted by the City and the funding approved by CalRecycle include implementation of requirements and programs associated with the State's SB 1383 program. The following tasks are required under SB 1383 and were included in the City's grant application: • Implementation of an Edible Food Recovery Program — SB 1383 requires that Tier 1 generators, which includes grocery stores located in Newport Beach, have an edible food donation program in place by January 1, 2022 and Tier 2 generators, which includes larger hotels with on -site food service and larger restaurants in Newport Beach, are required to have an edible food donation program in place by 2024. EcoNomics will provide outreach and notification to ensure they are aware of the requirements and deadline for edible food donation programs and will aid in implementing programs as needed. As required by SB 1383, EcoNomics will submit necessary edible food capacity planning reports to the County of Orange and edible food donation programs compliance reports to CalRecycle. 6-2 Resolution No. 2022-45: CalRecycle Grant Funding and Approval of Amendment No. Three to On -Call Professional Services Agreement with EcoNomics, Inc. for Solid Waste Consulting Services June 28, 2022 Page 3 • Assist with Procurement of Recycled Organics -Content Products (ROCPs) - SB 1383 requires the City to develop procurement systems to ensure that an annual tonnage target of ROCP materials is purchased. EcoNomics will develop a procurement tracking and reporting system internally and with the City's vendors, and assist in reporting procurement targets to CalRecycle. • On -site Technical Assistance to AB 1826 and SB 1383 Commercial Generators — The State requires businesses to implement organic recycling programs with the goal of diverting 75% of organic materials from landfills. EcoNomics will assist businesses with development and implementation of organic recycling programs for businesses to comply with AB 1826 and SB 1383. • On -site Technical Assistance to AB 1826 and SB 1383 Multi -Family Generators - The State requires multi -family generators to implement organic recycling programs with the goal of diverting 75% of organic materials from landfills. EcoNomics will assist multi -family generators with development and implementation of organic recycling programs for the multi -family generators to comply with AB 1826 and SB 1383. • Enforcement Protocol Development — SB 1383 requires that cities implement enforcement protocols in relation to non -compliant accounts. EcoNomics will develop enforcement protocols that adhere to the City's SB 1383-aligned mandatory participation ordinance, Ordinance No. 2021-25. • Waiver Protocol Development - The City's SB 1383-aligned mandatory participation ordinance, Ordinance No. 2021-25, requires all generators to subscribe to organics recycling programs, but allows for the City to issue waivers for de minimis generation levels and lack of physical space. EcoNomics will assist the City in developing a standard operating procedure (SOP) for evaluation and verification of SB 1383 waivers. The City's management and oversight of the solid waste program is staffed at baseline levels and has required professional consulting and staff support services to assist the City through the formation, organization and implementation of the State's new mandated and expanded solid waste recycling and diversion program requirements. Therefore, staff desires to utilize the City's solid waste consultant, EcoNomics, to accomplish the tasks included in the grant application. The CalRecycle grant funds awarded to the City in the amount of $122,038 would be used to cover the added contract services cost. To do so, an amendment to EcoNomics' contract is necessary to increase the contract's not -to -exceed amount by $122,038. By utilizing EcoNomics to perform these grant -specific functions, staff can continue to focus on frontline operations, such as the continued public relations, program and customer service efforts associated with the City's new residential contract implementation, commercial franchise system organics program implementation, new billing set-up and implementation, and other connected program items. EcoNomics possesses the required technical skill set and has been working with the City on solid waste, recycling and CalRecycle issues. 6-3 Resolution No. 2022-45: CalRecycle Grant Funding and Approval of Amendment No. Three to On -Call Professional Services Agreement with EcoNomics, Inc. for Solid Waste Consulting Services June 28, 2022 Page 4 FISCAL IMPACT: There is no net impact to the City's General Fund. If approved, the budget amendment appropriates $122,038 in additional revenue from the CalRecycle Local Assistance Grant to the operating budget to cover the same increased expenditure appropriations for solid waste consulting. The revenue will be posted to the Refuse CalRecycle account in the Public Works Department, 0108051-431490-G2280, and the purchase will be expensed to the Refuse Professional Services account in the Public Works Department, 0108051- 811008-G2280, as then used by the City's solid waste consultant, EcoNomics, to undertake and perform the necessary work to meet State program requirements. 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). ATTACHMENTS: Attachment A — Resolution No. 2022-45 Attachment B — CalRecycle SB 1383 Local Assistance Grant Award and Agreement Notification Attachment C — Budget Amendment Attachment D —Amendment No. Three to On -Call Professional Services Agreement with EcoNomics, Inc. ATTACHMENT A RESOLUTION NO. 2022-45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING SUBMITTAL OF APPLICATION(S) FOR ALL CALRECYCLE GRANTS FOR WHICH THE CITY OF NEWPORT BEACH IS ELIGIBLE FOR FIVE (5) YEARS WHEREAS, Public Resources Code sections 48000 et seq., 14581, and 42023.1(g) authorize the Department of Resources Recycling and Recovery ("CalRecycle' to administer various grant programs ('Grants' in furtherance of the State of California's ("State") efforts to reduce, recycle, and reuse solid waste generated in the State thereby preserving landfill capacity and protecting public health and the environment; WHEREAS, in furtherance of this authority, CalRecycle is required to establish procedures governing the payment programs and administration of the application, awarding, and management of the Grants; and WHEREAS, CalRecycle procedures for administering payment and Grants require, among other things, an applicant's governing body to declare, by resolution, certain authorizations related to the administration of the payment and Grants. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows.. Section 1: The City Council does hereby authorize the submittal of application(s) to CalRecycle for any and all Grants and payment programs offered for which the City of Newport Beach ("City") is eligible. Section 2: The City Council does hereby authorize and empower the City Manager, or the City Manager's designee, to execute in the name of the City of Newport Beach all documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure funds and implement the approved Grant or payment project. Section 3: These authorizations are effective for five (5) years from the date of adoption of this resolution. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 6-5 Resolution No. 2022- Page 2 of 2 Section 5: If any section, subsection, sentence, clause, or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 6: The City Council finds the adoption of this resolution 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 Sections 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 28th day of June, 2022. Kevin Muldoon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE /0'� C- ot"� Adon C. Harp City Attorney Attorney W. ATTACHMENT B From: Fong, Matthew@CalRecycle Sent: Wednesday, April 27, 2022 11:55 AM To: mmartin@newportbeachca.gov <mmartin@newportbeachca.gov> Cc: dawebb@newportbeachca.gov <dawebb@newportbeachca.gov> Subject: SB 1383 Local Assistance Grant Program (0WR1) — City of Newport Beach — Award Notification Congratulations! The Department of Resources Recycling and Recovery (CalRecycle) approved awards for the first round of the SB 1383 Local Assistance Grant Program. The Grant Award package consists of the following: • Exhibit A — Terms and Conditions • Exhibit B — Procedures and Requirements Your specific award amount is $122,038.00 Please note that your budget and activities have not yet been approved. I will be reaching out to you in the next few weeks to revise your budget and discuss eligible and ineligible costs. I strongly suggest that you wait to incur costs until after our conversation. If costs are incurred prior and it is determined that an item is ineligible, it will not be approved. The grant award is subject to the condition as stated in the Request for Approval of Awards for SB 1383 Program If the recommended grantee does not pay or bring current all outstanding debts or scheduled payments owed to CalRecycle within 60 calendar days of the date of this letter, then the proposed grantee will not have met the required conditions, and the award will be void. Please retain all Grant Award package documents, which include Exhibits A and B for your records. If you have any questions, please contact me at (916) 341-6447 or Matthew. Fonq(@_CalRecycle.ca.gov. I look forward to your participation in this grant program. Sincerely, Matt Fong CalRecycle - HHW Grants and Used Oil Programs Matthew. Fong(@ Cal Recycle.ca.gov 1-916-341-6447 6-7 CalRecycle'a Application Information Grants Management System (GMS) Application Certification Applicant: City of Newport Beach Cycle Name: SB 1383 Local Assistance Grant Program Cycle Code: OWR1 Grant ID: 25535 Grant Funds Requested: $113,640.00 Matching Funds: $0.00 (if applicable) Contacts Name Title Micah Martin Micah Martin Budget Category Name Admin Costs Collection Education Enforcement Equipment Indirect Costs Marketing/Promotion/Outreach Materials Personnel Training Upgrade/Expansion Documents Required Application Certification Required By Secondary Due Date Resolution - Individual Application Resolution - Regional Application Lead Participant Other Supporting Document(s) Draft Resolution Joint Powers Agreement Letter of Authorization/Resolution Letter of Designation Deputy Public Works Director Deputy Public Works Director Amount $0.00 $0.00 $7,424.00 $25,113.00 $0.00 $0.00 $7,424.00 $0.00 $73,679.00 $0.00 $0.00 Document Title Application Due Date: 02/01/2022 Secondary Due Date: 03/01 /2022 Prime Second Auth Cnslt Prtcpnt. Auth X X Resolution 2017-68 - Authorizing Submittal of Application(s) for all CalRecycle Grants.pdf https://secure.calrecycle.ca.gov/Grants/Grant/Grant,aspx?GrantlD=25535 Date Generated February 1. 2022 8:07 AM Received Date 1 /31 /2022 Page 1 of 3 Application Certification Resolution 1383 Local Assistance Grant Program: Check the following, as applicable. See Application Guidelines and Instructions for more information. X Applicant acknowledges that a Resolution is uploaded in the application. The Resolution must be approved by its governing body, which authorizes submittal of the application and designates a signature authority. If applicable, applicant has uploaded a Letter of Designation (LOD) designating an additional signature authority(ies). Program Questions California Labor Code section 1782 prohibits a charter city from receiving state funding or financial assistance for construction projects if that charter city does not comply with Labor Code sections 1770-1782. If any applicants or participating jurisdictions are charter cities or joint powers authorities that include charter cities, the lead applicant must certify that Labor Code section 1782 does not prohibit any included charter city from receiving state funds for the project described in this application. If it is determined after award that a participating jurisdiction is a charter city prohibited from receiving state funds for this grant project, the grant will be terminated and any disbursed grant funds shall be returned to CalRecycle. If any applicant or participating jurisdiction is a charter city or a joint powers authority that contains one or more charter cities, does Labor Code section 1782 prohibit those charter cities from receiving state funding for the project described in this grant application? Check the following, as applicable. X No. Applicant certifies that no charter cities included in this application are prohibited from receiving state funding for the project described in this grant application. 1383 Local Assistance Grant Program: Will your jurisdiction have an enforceable ordinance(s), or similarly enforceable mechanism pursuant to section 18981.2 of Title 14 of the California Code of Regulations submitted to CalRecycle by April 1, 2022? X Yes 1383 Local Assistance Grant Program: If you are a Special District, do you provide solid waste collection services? X Not Applicable Conditions and Certification Condition of Application Submittal: Acceptance of Grant Agreement Provisions In the event the Applicant is awarded a grant, the submittal of this Application constitutes acceptance of all provisions contained in the Grant Agreement, which may consist of the following: • Executed Grant Agreement Cover Sheet and any approved amendments • Exhibit A - Terms and Conditions • Exhibit B - Procedures and Requirements • Exhibit C - Application with revisions, if any, and any amendments Environmental Justice: In the event Applicant is awarded a grant, submittal of this Application constitutes acceptance of the following, that in the performance of the Grant Agreement, Applicant/Grantee shall conduct their programs, policies, and activities that substantially affect human health or the environment in a manner that ensures the fair treatment of people of all races, cultures, and income levels, including minority populations and low-income populations of the State. (see Govt. Code §65040.12(e) and Pub. Resources Code §71110(a)) https://secure. calrecycle.ca.gov/Grants/Grant/Grant.aspx?GrantlD=25535 Date Generated: February 1, 2022 8:07 AM Page 2 of 3 . • Application Certification Certification: I declare under penalty of perjury under the laws of the State of California, that funds have been allocated for the project(s)/activities identified in the grant application and that sufficient funds are available to complete the project(s)/activities identified in the grant application, that I have read the Application Guidelines and Instructions and that all information submitted for CalRecycle's consideration fora and of gran nds is true and correct to the best of my knowledge, and that on behalf of the Applicant I accept the above conditio o submittal Signalure o tgnirture Auth y (as authorized in Resolution or Letter of Date Commitment) or 11 whorized Designee (as authorized in letter (Y'Designation, submitted with this Application) Ia'�'rici 0(4�q Print Name Print Title IMPORTANT! Applicant must print out this document, have the Signature Authority sign it, upload signed document to the application system, and retain the original hard copy document in your cycle file. https:Hsecure.calrecycle. ca.gov/Grants/Grant/Grant.aspx?GrantlD=25535 Date Generated: February 1, 2022 8:07 AM Page 3 of 3 6-10 From: CalRecycle Grants <grants@cal recycle.ca.gov> Date: May 24, 2022 at 3:33:51 PM PDT To: "Martin, Micah" <MMartin @newportbeachca.gov> Subject: SB1383 Local Assistance Grant Program (OWR1) - Payment Notice from CalRecycle Reply -To: CalRecycle Grants <grants@cal recycle. ca. gov> Congratulations on being approved for the award and distribution of CalRecycle's SB1383 Local Assistance Grant Program (OWR1) funding. Your jurisdiction should receive their check by the end of this month. Please notify your appropriate staff who will be receiving the checks to ensure it is applied to the correct program. Questions concerning the above information should be directed to your CalRecycle Grant Manager. Thank you, Grants Team CalRecycle 6-11 Exhibit A Terms and Conditions SB 1383 Local Assistance Grant Program Fiscal Year 2021-22 The following terms used in this Grant Agreement (Agreement) have the meanings given to them below, unless the context clearly indicates otherwise: • "CalRecycle" means the Department of Resources Recycling and Recovery. • "Director" means the Director of CalRecycle or his or her designee. • "Grant Agreement" and "Agreement" means all documents comprising the agreement between CalRecycle and the grantee for this grant. • "Grant Manager" means CalRecycle staff person responsible for monitoring the grant. • "Grantee" means the recipient of funds pursuant to this Agreement. • "Program" means the SB 1383 Local Assistance Grant Program. • "State" means the State of California, including, but not limited to, CalRecycle and/or its designated officer. Air or Water Pollution Violation The grantee shall not be: (a) In violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district. (b) Out of compliance with any final cease and desist order issued pursuant to Water Code Section 13301 for violation of waste discharge requirements or discharge prohibitions. (c) Finally determined to be in violation of provisions of federal law relating to air or water pollution. Amendment No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties, and approved as required. No oral understanding or agreement not incorporated into this Agreement is binding on any of the parties. This Agreement may be amended, modified or augmented by mutual consent of the parties, subject to the requirements and restrictions of this paragraph. Americans with Disabilities Act The grantee assures the state that it complies with the Americans with Disabilities Act of 1990 (ADA) (42 U.S.C.§ 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 6-12 Assignment, Successors, and Assigns (a) This Agreement may not be assigned by the grantee, either in whole or in part, without CalRecycle's prior written consent. (b) The provisions of this Agreement shall be binding upon and inure to the benefit of CalRecycle, the grantee, and their respective successors and assigns. Audit/Records Access The grantee agrees that CalRecycle, the Department of Finance, the Bureau of State Audits, or their designated representative(s) shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. The grantee agrees to maintain such records for possible audit for a minimum of three (3) years after final payment date or grant term end date, whichever is later, unless a longer period of records retention is stipulated, or until completion of any action and resolution of all issues which may arise as a result of any litigation, dispute, or audit, whichever is later. The grantee agrees to allow the designated representative(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, the grantee agrees to include a similar right of the State to audit records and interview staff in any contract or subcontract related to performance of this Agreement. [It may be helpful to share the Terms and Conditions (Exhibit A) and Procedures and Requirements (Exhibit B) with your finance department, contractors and subcontractors. Examples of audit documentation include, but are not limited to: expenditure ledger, payroll register entries and time sheets, personnel expenditure summary form, travel expense log, paid warrants, contracts, change orders, invoices, and/or cancelled checks.l Authorized Representative The grantee shall continuously maintain a representative vested with signature authority authorized to work with CalRecycle on all grant -related issues. The grantee shall, at all times, keep the Grant Manager informed as to the identity and contact information of the authorized representative. Availability of Funds CalRecycle's obligations under this Agreement are contingent upon and subject to the availability of funds appropriated for this grant. Bankruptcy/Declaration of Fiscal Emergency Notification If the grantee files for protection under Chapter 9 of the U.S. Bankruptcy Code (11 U.S.C. §901 et seq.) or declares a fiscal emergency at any time during the Grant Term, the grantee shall notify CalRecycle within 15 days of such filing or declaration, pursuant to the procedures set forth in the section entitled "Communications" herein. CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 2 6-13 Charter Cities If the grantee is a charter city, a joint powers authority that includes one or more charter cities, or the regional lead for a regional program containing one or more charter cities, the grantee shall not receive any grant funding if such funding is prohibited by Labor Code section 1782. If it is determined that Labor Code section 1782 prohibits funding for the grant project, this Agreement will be terminated and any disbursed grant funds shall be returned to CalRecycle. Child Support Compliance Act For any agreement in excess of $100,000, the grantee acknowledges that: (a) The grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Family Code Section 5200 et seq. (b) The grantee, to the best of its knowledge, is fully complying with the earnings assignment orders of all employees, and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. Communications All communications from the grantee to CalRecycle shall be directed to the Grant Manager. All notices, including reports and payment requests, required by this Agreement shall be given in writing by email, letter, or fax to the Grant Manager as identified in the Procedures and Requirements (Exhibit B). If an original document is required, prepaid mail or personal delivery to the Grant Manager is required following the email or fax. Compliance The grantee shall comply fully with all applicable federal, state, and local laws, ordinances, regulations, and permits. The grantee shall provide evidence, upon request, that all local, state, and/or federal permits, licenses, registrations, and approvals have been secured for the purposes for which grant funds are to be expended. The grantee shall maintain compliance with such requirements throughout the Grant Term. The grantee shall ensure that the requirements of the California Environmental Quality Act are met for any approvals or other requirements necessary to carry out the terms of this Agreement. The grantee shall ensure that all of grantee's contractors and subcontractors have all local, state, and/or federal permits, licenses, registrations, certifications, and approvals required to perform the work for which they are hired. Any deviation from the requirements of this section shall result in non- payment of grant funds. Conflict of Interest The grantee needs to be aware of the following provisions regarding current or former state employees. If the grantee has any questions on the status of any person CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 3 6-14 rendering services or involved with this Agreement, CalRecycle must be contacted immediately for clarification. Current State Employees (Pub. Contract Code, § 10410): (a) No officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity, or enterprise is required as a condition of regular state employment. (b) No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services. Former State Employees (Pub. Contract Code, § 10411): (a) For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements or any part of the decision -making process relevant to the contract while employed in any capacity by any state agency. (b) For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy -making position in the same general subject area as the proposed contract within the twelve month period prior to his or her leaving state service. If the grantee violates any provisions of above paragraphs, such action by the grantee shall render this Agreement void. (Pub. Contract Code, § 10420). Contractors/Su bcontractors The grantee will be entitled to make use of its own staff and such contractors and subcontractors as are mutually acceptable to the grantee and CalRecycle. Any change in contractors or subcontractors must be mutually acceptable to the parties. Immediately upon termination of any such contract or subcontract, the grantee shall notify the Grant Manager. Nothing contained in this Agreement or otherwise, shall create any contractual relation between CalRecycle and any contractors or subcontractors of grantee, and no agreement with contractors or subcontractors shall relieve the grantee of its responsibilities and obligations hereunder. The grantee agrees to be as fully responsible to CalRecycle for the acts and omissions of its contractors and subcontractors and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by the grantee. The grantee's obligation to pay its contractors and subcontractors is an independent obligation from CalRecycle's obligation to make payments to the grantee. As a result, CalRecycle shall have no obligation to pay or to enforce the payment of any moneys to any contractor or subcontractor. Copyrights Grantee retains title to any copyrights or copyrightable material produced pursuant to this Agreement. grantee hereby grants to CalRecycle a royalty -free, nonexclusive, CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 4 6-15 transferable, world-wide license to reproduce, translate, and distribute copies of any and all copyrightable materials produced pursuant this Agreement, for nonprofit, non- commercial purposes, and to have or permit others to do so on CalRecycle's behalf. Grantee is responsible for obtaining any necessary licenses, permissions, releases or authorizations to use text, images, or other materials owned, copyrighted, or trademarked by third parties and for extending such licenses, permissions, releases, or authorizations to CalRecycle pursuant to this section. Corporation Qualified to do Business in California When work under this Agreement is to be performed in California by a corporation, the corporation shall be in good standing and currently qualified to do business in the State. "Doing business" is defined in Revenue and Taxation Code Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. Discharge of Grant Obligations The grantee's obligations under this Agreement shall be deemed discharged only upon acceptance of the final report by CalRecycle. If the grantee is a non-profit entity, the grantee's Board of Directors shall accept and certify as accurate the final report prior to its submission to CalRecycle. Disclaimer of Warranty CalRecycle makes no warranties, express or implied, including without limitation, the implied warranties of merchantability and fitness for a particular purpose, regarding the materials, equipment, services or products purchased, used, obtained and/or produced with funds awarded under this Agreement, whether such materials, equipment, services or products are purchased, used, obtained and/or produced alone or in combination with other materials, equipment, services or products. No CalRecycle employees or agents have any right or authority to make any other representation, warranty or promise with respect to any materials, equipment, services or products, purchased, used, obtained, or produced with grant funds. In no event shall CalRecycle be liable for special, incidental or consequential damages arising from the use, sale or distribution of any materials, equipment, services or products purchased or produced with grant funds awarded under this Agreement. Discretionary Termination The Director shall have the right to terminate this Agreement at his or her sole discretion at any time upon 30 days written notice to the grantee. Within 45 days of receipt of written notice, grantee is required to: (a) Submit a final written report describing all work performed by the grantee. (b) Submit an accounting of all grant funds expended up to and including the date of termination. (c) Reimburse CalRecycle for any unspent funds. Disputes In the event of a dispute regarding performance under this Agreement or interpretation of requirements contained therein, the grantee may, in addition to any other remedies CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 5 6-16 that may be available, provide written notice of the particulars of such dispute to the Branch Chief of Financial Resources Management Branch, Department of Resources Recycling and Recovery, PO Box 4025, Sacramento, CA 95812-4025. Such written notice must contain the grant number. Unless otherwise instructed by the Grant Manager, the grantee shall continue with its responsibilities under this Agreement during any dispute. Drug -Free Workplace Certification The person signing this Agreement on behalf of the grantee certifies under penalty of perjury under the laws of California, that the grantee will comply with the requirements of the Drug -Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and will provide a drug -free workplace by taking the following actions: (a) Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions that will be taken against employees for violations. (b) Establish a drug -free awareness program to inform employees about all of the following: (1) The dangers of drug abuse in the workplace. (2) The grantee's policy of maintaining a drug -free workplace. (3) Any available counseling, rehabilitation, and employee assistance programs. (4) Penalties that may be imposed upon employees for drug abuse violations. (c) Require that each employee who works on the grant: (1) Receive a copy of the drug -free policy statement of the grantee. (2) Agrees to abide by the terms of such statement as a condition of employment on the grant. Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and grantee may be ineligible for award of any future State agreements if CalRecycle determines that the grantee has made a false certification, or violated the certification by failing to carry out the requirements as noted above. Effectiveness of Agreement This Agreement is of no force or effect until signed by both parties. Entire Agreement This Agreement supersedes all prior agreements, oral or written, made with respect to the subject hereof and, together with all attachments hereto, contains the entire agreement of the parties. Environmental Justice In the performance of this Agreement, the grantee shall conduct its programs, policies, and activities that substantially affect human health or the environment in a manner that ensures the fair treatment of people of all races, cultures, and income levels, including minority populations and low-income populations of the state. CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 6 6-17 Failure to Perform as Required by this Agreement CalRecycle will benefit from the grantee's full compliance with the terms of this Agreement only by the grantee's: (a) Investigation and/or application of technologies, processes, and devices which support reduction, reuse, and/or recycling of wastes. (b) Cleanup of the environment. (c) Enforcement of solid waste statutes and regulations, as applicable. Therefore, the grantee shall be in compliance with this Agreement only if the work it performs results in: (a) Application of information, a process, usable data or a product which can be used to aid in reduction, reuse, and/or recycling of waste. (b) The cleanup of the environment. (c) The enforcement of solid waste statutes and regulations, as applicable. If the Grant Manager determines that the grantee has not complied with the Grant Agreement, the grantee may forfeit the right to reimbursement of any grant funds not already paid by CalRecycle, including, but not limited to, the 10 percent withhold. Force Majeure Neither CalRecycle nor the grantee, its contractors, vendors, or subcontractors, if any, shall be responsible hereunder for any delay, default, or nonperformance of this Agreement, to the extent that such delay, default, or nonperformance is caused by an act of God, weather, accident, labor strike, fire, explosion, riot, war, rebellion, sabotage, flood, or other contingencies unforeseen by CalRecycle or the grantee, its contractors, vendors, or subcontractors, and beyond the reasonable control of such party. Forfeit of Grant Funds/Repayment of Funds Improperly Expended If grant funds are not expended, or have not been expended, in accordance with this Agreement, or if real or personal property acquired with grant funds is not being used, or has not been used, for grant purposes in accordance with this Agreement, the Director, at his or her sole discretion, may take appropriate action under this Agreement, at law or in equity, including requiring the grantee to forfeit the unexpended portion of the grant funds, including, but not limited to, the 10 percent withhold, and/or to repay to CalRecycle any funds improperly expended. Generally Accepted Accounting Principles The grantee is required to use Generally Accepted Accounting Principles in documenting all grant expenditures. Grant Manager The Grant Manager's responsibilities include monitoring grant progress, and reviewing and approving Grant Payment Requests and other documents delivered to CalRecycle pursuant to this Agreement. The Grant Manager may monitor grantee performance to ensure that the grantee expends grant funds appropriately and in a manner consistent with the terms and conditions contained herein. The Grant Manager does not have the authority to approve any deviation from or revision to the Terms and Conditions CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 7 (Exhibit A) or the Procedures and Requirements (Exhibit B), unless such authority is expressly stated in the Procedures and Requirements (Exhibit B). Grantee Accountability The grantee is ultimately responsible and accountable for the manner in which the grant funds are utilized and accounted for and the way the grant is administered, even if the grantee has contracted with another organization, public or private, to administer or operate its grant program. In the event an audit should determine that grant funds are owed to CalRecycle, the grantee is responsible for repayment of the funds to CalRecycle. Grantee's Indemnification and Defense of the State The grantee agrees to indemnify, defend and save harmless the state and CalRecycle, and their officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by the grantee as a result of the performance of this Agreement. Grantee's Name Change A written amendment is required to change the grantee's name as listed on this Agreement. Upon receipt of legal documentation of the name change, CalRecycle will process the amendment. Payment of Payment Requests presented with a new name cannot be paid prior to approval of the amendment. In Case of Emergency In the event of an emergency, or where there is an imminent threat to public health and safety or the environment, the grantee may choose, at its own risk, to incur grant - eligible expenses not previously included in the approved Budget, subject to subsequent approval by the Grant Manager of both the Budget change and the need to implement the Budget change on an emergency basis. The grantee shall notify the Grant Manager of the emergency and the Budget change at the earliest possible opportunity. CalRecycle reserves the right to accept or reject the grantee's determination that the circumstances constituted an emergency or a threat to public health and safety or the environment. If the Grant Manager determines that the circumstances did not constitute an emergency or a threat to public health or safety, the Budget change will be disallowed. No Agency Relationship Created/Independent Capacity The grantee and the agents and employees of grantee, in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of CalRecycle. CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 8 6-19 No Waiver of Rights CalRecycle shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by CalRecycle. No delay or omission on the part of CalRecycle in exercising any rights shall operate as a waiver of such right or any other right. A waiver by CalRecycle of a provision of this Agreement shall not prejudice or constitute a waiver of CalRecycle's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by CalRecycle, nor any course of dealing between CalRecycle and grantee, shall constitute a waiver of any of CalRecycle's rights or of any of grantee's obligations as to any future transactions. Whenever the consent of CalRecycle is required under this Agreement, the granting of such consent by CalRecycle in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of CalRecycle. Non -Discrimination Clause (a) During the performance of this Agreement, grantee and its contractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment on the bases enumerated in Government Code Section 12900 et seq. (b) The person signing this Agreement on behalf of the grantee certifies under penalty of perjury under the laws of California that the grantee has, unless exempted, complied with the nondiscrimination program requirements (Gov. Code, § 12990, subd. (a-f) and California Code of Regulations, Title 2, Section 8103). (Not applicable to public entities.) Order of Precedence The performance of this grant shall be conducted in accordance with the Terms and Conditions (Exhibit A), Procedures and Requirements (Exhibit B), Project Summary/Statement of Use, Work Plan, and Budget of this Agreement, or other combination of Exhibits specified on the Grant Agreement Coversheet attached hereto (collectively referred to as "Terms"). Grantee's CalRecycle-approved Application (Grantee's Application) is hereby incorporated herein by this reference. In the event of conflict or inconsistency between the articles, exhibits, attachments, specifications or provisions that constitute this Agreement, the following order of precedence shall apply: (a) Grant Agreement Coversheet and any Amendments thereto (b) Terms and Conditions (c) Procedures and Requirements (d) Project Summary/Statement of Use (e) Budget (f) Work Plan (g) Grantee's Application (h) All other attachments hereto, including any that are incorporated by reference. Ownership of Drawings, Plans and Specifications The grantee shall, at the request of CalRecycle or as specifically directed in the Procedures and Requirements (Exhibit B), provide CalRecycle with copies of any data, drawings, design plans, specifications, photographs, negatives, audio and video CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 9 6-20 productions, films, recordings, reports, findings, recommendations, and memoranda of every description or any part thereof, prepared under this Agreement. Grantee hereby grants to CalRecycle a royalty -free, nonexclusive, transferable, world-wide license to reproduce, translate, and distribute copies of any and all such materials produced pursuant to this Agreement, for nonprofit, non-commercial purposes, and to have or permit others to do so on CalRecycle's behalf. Payment (a) The approved Budget, if applicable, is attached hereto and incorporated herein by this reference and states the maximum amount of allowable costs for each of the tasks identified in the Work Plan, if applicable, which is attached hereto and incorporated herein by this reference. CalRecycle shall reimburse the grantee for only the work and tasks specified in the Work Plan or the Grantee's Application at only those costs specified in the Budget and incurred in the term of the Agreement. (b) The grantee shall carry out the work described in the Work Plan or in the Grantee's Application in accordance with the approved Budget, and shall obtain the Grant Manager's written approval of any changes or modifications to the Work Plan, approved project as described in the Grantee's Application or the approved Budget prior to performing the changed work or incurring the changed cost. If the grantee fails to obtain such prior written approval, the Director, at his or her sole discretion, may refuse to provide funds to pay for such work or costs. (c) The grantee shall request reimbursement in accordance with the procedures described in the Procedures and Requirements (Exhibit B). (d) Ten percent will be withheld from each Payment Request and paid at the end of the grant term, when all reports and conditions stipulated in this Agreement have been satisfactorily completed. Failure by the grantee to satisfactorily complete all reports and conditions stipulated in this Agreement may result in forfeiture of any such funds withheld pursuant to CalRecycle's 10 percent) retention policy. (e) Lodgings, Meals and Incidentals: Grantee's Per Diem eligible costs are limited to the amounts authorized in the California State Administrative Manual (contact the Grant Manager for more information). (f) Payment will be made only to the grantee. (g) Reimbursable expenses shall not be incurred unless and until the grantee receives a Notice to Proceed as described in the Procedures and Requirements (Exhibit B). Personnel Costs If there are eligible costs pursuant to Exhibit B, Procedures and Requirements, any personnel expenditures to be reimbursed with grant funds must be computed based on actual time spent on grant -related activities and on the actual salary or equivalent hourly wage the employee is paid for his or her regular job duties, including a proportionate share of any benefits to which the employee is entitled, unless otherwise specified in the Procedures and Requirements (Exhibit B). Real and Personal Property Acquired with Grant Funds (a) All real and personal property, including equipment and supplies, acquired with grant funds shall be used by the grantee only for the purposes for which CalRecycle CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 10 6-21 approved their acquisition for so long as such property is needed for such purposes, regardless of whether the grantee continues to receive grant funds from CalRecycle for such purposes. In no event shall the length of time during which such property, including equipment and supplies, acquired with grant funds, is used for the purpose for which CalRecycle approved its acquisition be less than five (5) years after the end of the grant term, during which time the property, including equipment and supplies, must remain in the State of California. (b) Subject to the obligations and conditions set forth in this section, title to all real and personal property acquired with grant funds, including all equipment and supplies, shall vest upon acquisition in the grantee. The grantee may be required to execute all documents required to provide CalRecycle with a security interest in any real or personal property, including equipment and supplies, and it shall be a condition of receiving this grant that CalRecycle shall be in first priority position with respect to the security interest on any such property acquired with the grant funds, unless pre - approved in writing by the Grant Manager that CalRecycle will accept a lower priority position with respect to the security interest on the property. Grantee shall inform any lender(s) from whom it is acquiring additional funding to complete the property purchase of this grant condition. (c) The grantee may not transfer Title to any real or personal property, including equipment and supplies, acquired with grant funds to any other entity without the express authorization of CalRecycle. (d) CalRecycle will not reimburse the grantee for the acquisition of equipment that was previously purchased with CalRecycle grant funds, unless the acquisition of such equipment with grant funds is pre -approved in writing by the Grant Manager. In the event of a question concerning the eligibility of equipment for grant funding, the burden will be on the grantee to establish the pedigree of the equipment. Reasonable Costs A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. Consideration will be given to: (a) Whether the cost is of a type generally recognized as ordinary and necessary for the performance of the grant. (b) The restraints or requirements imposed by such factors as generally accepted sound business practices, arms -length bargaining, federal and state laws and regulations, and the terms and conditions of this Agreement. (c) Whether the individuals concerned acted with prudence in the circumstances, considering their responsibilities to the organization, its members, employees, clients, and the public at large. (d) Significant deviations from the established practices of the organization which may unjustifiably increase the grant costs. Recycled -Content Paper All documents submitted by the grantee must be printed double -sided on recycled - content paper containing 100 percent post -consumer fiber. Specific pages containing full color photographs or other ink -intensive graphics may be printed on photographic paper. CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 11 6-22 Reduction of Waste In the performance of this Agreement, grantee shall take all reasonable steps to ensure that materials purchased or utilized in the course of the project are not wasted. Steps should include, but not be limited to: the use of used, reusable, or recyclable products; discretion in the amount of materials used; alternatives to disposal of materials consumed; and the practice of other waste reduction measures where feasible and appropriate. Reduction of Waste Tires Unless otherwise provided for in this Agreement, in the performance of this Agreement, for all purchases made with grant funds, including, but not limited to equipment and tire - derived feedstock, the grantee shall purchase and/or process only California waste tires and California waste tire -derived products. As a condition of final payment under this Agreement, the grantee must provide documentation substantiating the source of the tire materials used during the performance of this Agreement to the Grant Manager. Reimbursement Limitations Under no circumstances shall the grantee seek reimbursement pursuant to this Agreement for a cost or activity that has been or will be paid for through another funding source. The grantee shall not seek reimbursement for any costs used to meet cost sharing or matching requirements of any other CalRecycle funded program. All costs charged against the Agreement shall be net of all applicable credits. The term "applicable credits" refers to those receipts or reductions of expenditures that operate to offset or reduce expense items that are reimbursable under this Agreement. Applicable credits may include, but are not necessarily limited to, rebates or allowances, discounts, credits toward subsequent purchases, and refunds. Grantee shall, where possible, deduct the amount of the credit from the amount billed as reimbursement for the cost, or shall deduct the amount of the credit from the total billed under a future invoice. Reliable Contractor Declaration Prior to authorizing any contractor or subcontractor to commence work under this Grant, the grantee shall submit to CalRecycle a Reliable Contractor Declaration (CalRecycle 168) from the contractor or subcontractor, signed under penalty of perjury, disclosing whether of any of the events listed in Section 17050 of Title 14, California Code of Regulations, Natural Resources (https://www.calrecycle.ca.gov/laws/regulations/titlel4), Division 7, has occurred with respect to the contractor or subcontractor within the preceding three (3) years. If a contractor is placed on CalRecycle's Unreliable List after award of this Grant, the grantee may be required to terminate that contract. Remedies Unless otherwise expressly provided herein, the rights and remedies hereunder are in addition to, and not in limitation of, other rights and remedies under this Agreement, at law or in equity, and exercise of one right or remedy shall not be deemed a waiver of any other right or remedy. CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 12 6-23 Self -Dealing and Arm's Length Transactions All expenditures for which reimbursement pursuant to this Agreement is sought shall be the result of arm's-length transactions and not the result of, or motivated by, self -dealing on the part of the grantee or any employee or agent of the grantee. For purposes of this provision, "arm's-length transactions" are those in which both parties are on equal footing and fair market forces are at play, such as when multiple vendors are invited to compete for an entity's business and the entity chooses the lowest of the resulting bids. "Self -dealing" is involved where an individual or entity is obligated to act as a trustee or fiduciary, as when handling public funds, and chooses to act in a manner that will benefit the individual or entity, directly or indirectly, to the detriment of, and in conflict with, the public purpose for which all grant monies are to be expended. Severability If any provisions of this Agreement are found to be unlawful or unenforceable, such provisions will be voided and severed from this Agreement without affecting any other provision of this Agreement. To the full extent, however, that the provisions of such applicable law may be waived, they are hereby waived to the end that this Agreement be deemed to be a valid and binding agreement enforceable in accordance with its terms. Site Access The grantee shall allow the state to access sites at which grant funds are expended and related work being performed at any time during the performance of the work and for ninety (90) days after completion of the work, or until all issues related to the grant project have been resolved. Stop Work Notice Immediately upon receipt of a written notice from the Grant Manager to stop work, the grantee shall cease all work under this Agreement. Termination for Cause CalRecycle may terminate this Agreement and be relieved of any payments should the grantee fail to perform the requirements of this Agreement at the time and in the manner herein provided. In the event of such termination, CalRecycle may proceed with the work in any manner deemed proper by CalRecycle. All costs to CalRecycle shall be deducted from any sum due the grantee under this Agreement. Termination pursuant to this section may result in forfeiture by the grantee of any funds retained pursuant to CalRecycle's 10 percent retention policy. Time is of the Essence Time is of the essence to this Agreement. Tolling of Statute of Limitations The statute of limitations for bringing any action, administrative or civil, to enforce the terms of this Agreement or to recover any amounts determined to be owing to CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 13 6-24 CalRecycle as the result of any audit of the grant covered by this Agreement shall be tolled during the period of any audit resolution, including any appeals by the grantee to the Director. Union Organizing By signing this Agreement, the grantee hereby acknowledges the applicability of Government Code Sections 16645, 16645.2, 16645.8, 16646, 16647, and 16648 to this Agreement and hereby certifies that: (a) No grant funds disbursed by this grant will be used to assist, promote, or deter union organizing by employees performing work under this Agreement. (B) If the grantee makes expenditures to assist, promote, or deter union organizing, the grantee will maintain records sufficient to show that no state funds were used for those expenditures, and that grantee shall provide those records to the Attorney General upon request. Venue/Choice of Law (a) All proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties hereunder shall be held in Sacramento County, California. The parties hereby waive any right to any other venue. The place where the Agreement is entered into and place where the obligation is incurred is Sacramento County, California. (b) The laws of the State of California shall govern all proceedings concerning the validity and operation of this Agreement and the performance of the obligations imposed upon the parties hereunder. Waiver of Claims and Recourse against the State The grantee agrees to waive all claims and recourse against the state, its officials, officers, agents, employees, and servants, including, but not limited to, the right to contribution for loss or damage to persons or property arising out of, resulting from, or in any way connected with or incident to this Agreement. This waiver extends to any loss incurred attributable to any activity undertaken or omitted pursuant to this Agreement or any product, structure, or condition created pursuant to, or as a result of, this Agreement. Work Products Grantee shall provide CalRecycle with copies of all final products identified in the Work Plan. Grantee shall also provide CalRecycle with copies of all public education and advertising material produced pursuant to this Agreement. Workers' Compensation/Labor Code The grantee is aware of Labor Code Section 3700, which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the Labor Code, and the grantee agrees to comply with such provisions before commencing the performance of the work of this Agreement. CalRecycle's Non -Competitive Grant Terms and Conditions — Revised 3/30/21 14 6-25 :al recycle 11110 January 2022 Amended April 2022 Department of Resources Recycling and Recovery Exhibit B Procedures and Requirements SB 1383 Local Assistance Grant Program First Round Funding Fiscal Year 2021-22 Copies of these Procedures and Requirements must be shared with both the Grantee's Finance Department and the staff responsible for implementing the grant activities. Procedures and Requirements SIB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-26 Amended April 2022 1 Table of Contents Introduction................................................................................................................... 3 Milestones...................................................................................................................... 3 Grants Management System(GMS)............................................................................. 3 Accessingthe Grant.................................................................................................... 4 ContactUpdates..........................................................................................................4 Priorto Commencing Work.......................................................................................... 5 Reliable Contractor Declaration................................................................................... 5 GrantTerm..................................................................................................................... 6 EligibleCosts...............................................................................................................6 IneligibleCosts............................................................................................................ 7 Modifications................................................................................................................ 8 Acknowledgements...................................................................................................... 8 Reporting Requirements..............................................................................................9 Electronic and Original Signatures............................................................................... 9 ProgressReport......................................................................................................... 10 FinalReport............................................................................................................... 10 Grant Payment Information........................................................................................ 10 Expenditure Itemization Summary and Documentation ......................................... 11 UnspentFunds....................................................................................................... 12 AuditConsiderations.................................................................................................. 12 Procedures and Requirements SIB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-27 Amended April 2022 2 Introduction The Department of Resources Recycling and Recovery (CalRecycle) administers the SB 1383 Local Assistance Grant Program. These Procedures and Requirements describe project and reporting requirements, report due dates, report contents, grant payment conditions, eligible and ineligible project costs, project completion and closeout procedures, and records and audit requirements. This document is attached to, and incorporated by reference, into the Grant Agreement. Milestones April- , 2022; Grant Term Begins: Date CalRecycle sends the award email 9ctoberNovember 3, 2022: Expenditure Itemization Summary 1 Due Covering expenses from April -1,z'2022 the Grant Term Start Date through 9Gteber November 2, 2022 ApM Mav 3, 2023: Expenditure Itemization Summary 2 Due • Covering expenses from BEtebe November 3, 2022, through Apf4 May 2, 2023 QGtobe November 2, 2023: Expenditure Itemization Summary 3 Due • Covering expenses from April May 3, 2023, through BEtebe November 1, 2023 ApM May 2, 2024: Expenditure Itemization Summary 4 Due • Covering expenses from 9Gteber November 2, 2023, through May 2, 2024 Apfit May 2, 2024: Final Report Due • Covering activities from April 1, 2022 the Grant Term Start Date through April May 2, 2024 ApY4 May 2, 2024: Grant Term End Note: These dates are subject to change. If they change, Grant Managers will notify the Awardees immediately. Grants Management System (GMS) GMS is CalRecycle's web -based grant application and Grants Management System. Access to GMS is secure; grantees must log in using a WebPass. WebPass accounts are tied to a specific email address. If an email address changes, or if it becomes inactive, the grantee must create a new WebPass account to continue accessing GMS. Establish or manage a WebPass at CalRecycle's WebPass page (https://secure.caIrecycle.ca.gov/WebPass/). Procedures and Requirements SB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-28 Amended April 2022 3 Accessing the Grant Grantees must log in to GMS (https://secure.calrecycle.ca.gov/Grants) using their web pass. After logging in, locate the grant in the My Awarded/Open Grants table and select the Grant Management link. The Grant Management Module includes the following sections: • Summary tab: Shows approved budget, paid and remaining amounts. (This section is available to the grantee in read-only mode.) • Payment Request tab: Grantee uploads expenditure documentation. • Reports tab: Grantee uploads required reports. • Documents tab: Grantee uploads all other grant documents that are not supporting documents for an expenditure or a report. This section also provides access to documents that were uploaded within other sections of GMS. Follow the instructions in GMS to work in the system. The following sections describe the reports, transactions, and supporting documents CalRecycle requires. Contact Updates Access to the grant is limited to those listed in the Contacts tab of the Application Module with the "Allow Access" check box marked. A contact may be listed but not granted access by not checking the box. Please note, if a contact is granted access to a grant, they will be able to edit contacts, submit payment requests, upload reports, and view all documents. Those with access may update contact information for all contact types except Signature Authority. Email the assigned Grant Manager regarding any changes to Signature Authority information. Procedures and Requirements SIB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-29 Amended April 2022 4 Prior to Commencing Work Prior to commencing work under this grant, the grantee's Grant Manager or primary contact and authorized grant Signature Authority should review the Terms and Conditions (Exhibit A) and the Procedures and Requirements (Exhibit B) to identify key grant administrative requirements. Evaluation of the grantee's compliance with these requirements is a major focus of grant audits. Reliable Contractor Declaration Prior to authorizing a contractor or subcontractor to commence work under this grant, the grantee shall submit to the Grant Manager a declaration from the contractor or subcontractor, signed under penalty of perjury, stating that within the preceding three (3) years, none of the events listed in section 17050 of Title 14 (https://www.calrecycle.ca.gov/Laws/Regulations/Title14/), California Code of Regulations, Natural Resources, Division 7, has occurred with respect to the contractor or subcontractor. The grantee must submit this form for each contractor and subcontractor working under the grant. If a contractor or subcontractor is placed on the CalRecycle Unreliable Contractor List (https://www.calrecycle.ca.gov/Funding/Unreliability/) after award of this grant, the grantee may be required to terminate the contract. Obtain the Reliable Contractor Declaration form (CalRecycle 168) from CalRecycle's Grant Forms web page (https://www.calrecycle.ca.gov/Funding/Forms/). The grantee must upload a scanned copy of each signed Reliable Contractor Declaration form in GMS. To upload the form: 1. Go to the Reports tab. 2. Click on Reliable Contractor Declaration under Report Type. 3. Click the Add Document button. 4. Select Reliable Contractor Declaration in the Document Type drop down box, enter a document title, click the Browse button to search and upload the document, and then Save. 5. Click on the Submit Report button. For further instructions regarding GMS, including login directions, see the "Grants Management System" section (above). Procedures and Requirements SB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-30 Amended April 2022 5 Grant Term The Grant Term begins on the date CalRecycle sends the award email Appal 1, 202-2 and ends on Apr4 May 2, 2024. The grantee must make all grant -eligible program expenditures and incur all grant -eligible costs within this period. Expenditures made or costs incurred prior to April 1,2-022 the grant term start date or after the grant term end date will be considered ineligible. The Final Report, final Expenditure Itemization Summary, and Certification Document are due on Apr- 4 May 2, 2024. Eligible Costs Grantees may incur eligible costs only during the Grant Term, which starts on the date CalRecvcle sends the award email and ends on Mav 2. 2024 Aori4-1. ends April 2, 2024..All grant expenditures must be for activities, products, and costs specifically included in the approved Budget. Costs must be incurred after the term start date. All services must be provided and goods received during this period in order to be eligible costs. Eligible costs include: • Personnel • Consultants • Safety Equipment • Vehicles/Trucks o For compost procurement activities - Vehicles/tractors, turf tires, forklifts or compost slingers Note: The Grantee needs to own and control the vehicle, however they may allow participants to use the vehicle for grant implementation purposes only. • Education and Outreach materials o Print Media o Television, radio, video, and social media o Materials offered in other languages • Door -to -Door Outreach • Signage • Recordkeeping or tracking software o Software to match donor with food bank o Recordkeeping/reporting software o Procurement tracking software o Apps for food recovery • Inspections and Enforcement • Training • Tablet/Electronic Devices (seven inches or more measured diagonally) used for the purposed of organic tracking and Education and Outreach o Maximum price of $500 (excluding sales tax) and limit to one (exceptions may be approved on a case -by -case basis) o Accessories used for security, protection, and charging Procedures and Requirements SB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-31 Amended April 2022 6 • Equipment o For larger items, The Grantee needs to own and control the equipment, however, they may allow participants use of said equipment for grant implementation purposes. • Bins (green and blue only) and lids o Includes, but is not limited to, curbside, small household food waste pail, labeling, and liners • Procurement of recovered/recycled organic products • Equipment o Food distribution - included refrigeration, coolers, and packing materials Ineligible Costs Any costs not specifically included in the approved Budget and not directly related to grant implementation will be considered ineligible. The grantee should contact the Grant Manager if clarification is needed. Ineligible costs include, but are not limited to: • Costs incurred prior to April 1,2022- the Term Start Date or after Ap-r4 May 2, 2024 • Development, purchase, or distribution of strictly promotional give-away items Stuff We All Get, (SWAG) (https://www.calrecycle.ca.gov/Funding/SWAG/) • Purchase or lease of land or buildings • Equipment or services not directly related to grant implementation • Food dehydrators or liquefiers • Disposal costs • Costs currently covered by or incurred under any other CalRecycle loan, grant, or contract • Cell phones • Purchase of data plans and/or mobile service plans/hotspots • Costs related to website host and web page domain • Audit expenses • Sponsorship or licensing fees for events/programs • Out-of-state travel • Conferences and symposiums • Food or beverages (e.g., as part of meetings, workshops, or events) • Travel costs exceeding the state -approved rates for mileage, per diem, lodging, etc. o Refer to the Memorandum (https://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx) for travel policies. o Reimbursement rates are subject to change at any time by the State of California without prior notification. • Personnel costs not directly related to grant activities • Fines or penalties due to violation of federal, state, or local laws, ordinances, or regulations • Any costs for construction projects by charter cities prohibited by Labor Code section 1782 • Any costs not consistent with local, state, or federal laws, guidelines, and regulations Procedures and Requirements SB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-32 Amended April 2022 7 • The total amount of indirect costs charged to the grant shall not exceed 10 percent of the grant funds reimbursed. These costs are expenditures not capable of being assigned or not readily itemized to a particular project or activity but considered necessary for the operation of the organization and the performance of the program. The costs of operating and maintaining facilities, accounting services, and administrative salaries as well as contractor's indirect costs in their contracts, are examples of indirect costs. All indirect costs charged to the grant must be associated with grant activities. • Costs deemed unreasonable or not related to the project by the Grant Manager Modifications The grantee must submit any proposed revision(s) to the project in writing to the Grant Manager. The grantee may not incur costs or make expenditures based on the revision without first receiving the Grant Manager's written approval. Proposed revisions must be accompanied by a summary of proposed changes or modifications, including justification for the proposed changes. If approved, the Grant Manager will upload the final revised changes to GMS and notify the grantee. The grantee should retain the approval document(s) for audit purposes. See the "Audit Record/Access" section of the Terms and Conditions (Exhibit A). Acknowledgements The grantee shall acknowledge CalRecycle's support each time a project is funded, in whole or in part, by this Agreement is publicized in any medium, including news media, brochures, or other types of promotional materials. The acknowledgement of CalRecycle's support must incorporate the CalRecycle logo. Initials or abbreviations for CalRecycle shall not be used. The Grant Manager may approve deviation from this requirement on a case -by -case basis where such deviation is consistent with CalRecycle's Communication Strategy and Outreach Plan. The following items require acknowledgement of funding from CalRecycle and pre - approval from the CalRecycle Grant Manager prior to incurring the expense: • All television, radio and video scripts • Functional premiums, if the per unit price is greater than $6.00 • Advertisements • Audio and/or visual material • Brochures • Newspaper ads • Pamphlets • Other outreach All publicity and education materials must include the following: 1. "Funded by a grant from CalRecycle." Exception: The acknowledgement line is not required on small items where space constraints would not allow for this line or if it would interfere with the message. o There are two acceptable Spanish translations: "Financiado por una beca del CalRecycle" or "Patrocinado por fondos del CalRecycle." For other languages, the Grantee must work with a certified translator or person fluent in reading and writing that language. All exceptions must be pre - approved in writing by the CalRecycle Grant Manager. Procedures and Requirements SB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-33 Amended April 2022 8 2. CalRecycle logo (https://www.calrecycle.ca.gov/gallery/) as reflected on the CalRecycle website, can be obtained from the Office of Public Affairs at opa(a-)_calrecycle.ca.gov. 3. Press Releases — the only requirement is to place the name of "CalRecycle" as an acknowledgement in the body of the release. Reporting Requirements The Grant Agreement requires a Final Report; however, the Grant Manager may require additional status information at any time during the Grant Term. Failure to submit the Final Report with appropriate documentation by the due date may result in forfeiture by the grantee of any unspent funds received under this agreement, and repayment of all funds to CalRecycle. The grantee must upload all reports in GMS. For further instructions regarding GMS, including login directions, see the "Grants Management System" section (above). To upload a report: 1. Go to the Reports tab. 2. Click on the appropriate Report Type. 3. Click on the Add Document button. 4. Choose the Document Type, enter a document title, click the Browse button to search and upload the document, and then Save. • Select the Back button to upload another document and continue the process until all required documents as listed below are uploaded. • The maximum allowable file size for each document is 35MB. 5. Click the Submit Report button to complete your report submittal. The Submit Report button will not be enabled until all required reporting documents are uploaded. Failure to comply with the specified reporting requirements may be considered a breach of the Grant Agreement and may result in the termination of the Grant Agreement, and/or forfeiture by the grantee of claims for costs incurred that might otherwise have been eligible for grant funding. The grantee must report any problems or delays immediately to the Grant Manager. Electronic and Original Signatures CalRecycle now allows for certified e-Signature or original wet signature on documents or forms that certify legally binding information. Note: E-signatures must include the first and last name of the Signature Authority, be in the Adobe Digital ID format (or through another certified digital signature program) and cannot be the "Fill and Sign" function within Adobe. Any documents using the "Fill and Sign" method is considered incomplete and may be sent back to the grantee. If you have questions, email grantassistance(a�calrecycle. ca.gov. Procedures and Requirements SB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-34 Amended April 2022 9 Progress Report Grantees with awards over $1,000,000 will need to collect and submit information on any jobs created or paid by the grant on a bi-annual basis. Grant Managers will work with Grantees on when and how to submit the information. CalRecycle will provide a report template at a later date. Progress reports must include the following: • Jobs o Provide number of jobs created and paid for in whole or in part by this grant during the reporting period. Include job title or classification, job permanence, total project work hours, hourly pay rates or salaries, as well as benefits from the job, such as healthcare, paid vacation or sick leave and hiring strategy. Jobs provided to members of Priority Populations. o In addition to the item, above, provide the same jobs information for any positions filled by members of priority populations. More information about Priority Populations can be found at California Air Resources Board Priority Population Investments webpage (www3.arb.ca.gov/cc/capandtrade/auctionproceeds/communityinvestm ents.htm). Note: This requirement is subject to change at CalRecycle's discretion. If any reporting requirement changes, Grant Managers will notify the Awardees. Final Report The Final Report is due Apif May 2, 2024 (report template will be provided at a later date). This report should cover grant activities from April 2022 the Term Start Date through Apr4 May 2, 2024. The grantee must include the following items in the Final Report: 1. The Grant Number, grantee's name, and Grant Term. 2. The following disclaimer statement on the cover page: "The statements and conclusions of this report are those of the grantee and not necessarily those of the Department of Resources Recycling and Recovery (CalRecycle), its employees, or the State of California. The state makes no warranty, express or implied, and assumes no liability for the information contained in the succeeding text." Note: This requirement is subject to change at CalRecycle's discretion. If any reporting requirement changes, Grant Managers will notify the Grantees. Grant Payment Information • CalRecycle will make grant payments to only the grantee. It is the grantee's responsibility to pay all contractors and subcontractors for purchased goods and services. CalRecycle will make payments to the grantee as promptly as fiscal procedures permit. • The grantee must provide a Reliable Contractor Declaration (CalRecycle 168) (https-//www.calrecycle.ca.gov/Funding/forms/) signed under penalty of perjury by the grantee's contractors and subcontractors in accordance with the "Reliable Contractor Declaration" section of the Terms and Conditions (Exhibit A). The declaration must be received and approved by the Grant Manager prior to Procedures and Requirements SIB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-35 Amended April 2022 10 commencement of work. See the "Reliable Contractor Declaration" section in Terms and Conditions (Exhibit A) for more information. Expenditure Itemization Summary and Documentation The grantee must submit the EIS and Certification Document (a template will be provided at a later date) in GMS. For further instructions regarding GMS, including login directions, see the "Grants Management System" section (above). Please refer to the "Milestones" section (above) for required due dates. Expenditure Itemization Summary (EIS) o All expenditures must be itemized and arranged by the reporting and expenditure categories as contained in the grantee's Budget tab. o Grantees are required to maintain supporting documentation pertaining to the EIS and may be required to provide them at the request of the Grant Manager at any time. Certification Document o The Signature Authority will need to certify under penalty of perjury that information provided in the EIS is correct. Note: This requirement is subject to change at CalRecycle's discretion. If any expenditure reporting requirement changes, Grant Managers will notify the Awardees. Failure to submit the EIS and Certification Document by the due date may result in the forfeiture by the grantee of claims for costs incurred that might otherwise have been eligible for grant funding. To submit an EIS: 1. Go to the Payment Request tab. 2. Click on the Create a Payment Request button. a. Choose Advance Reconcile for the Transaction Type and enter the amount spent in each budget subcategory. b. When the transaction is complete, click the Save button. c. After the transaction is saved, the Upload Supporting Documents button will appear in the lower right corner. 3. Click the Upload Supporting Documents button. a. Choose the Document Type, enter a document title, click the Browse button to search and upload the document, and then Save. b. Select the Back button to upload another document and continue this process until all required supporting documents as listed below are uploaded. c. The maximum allowable file size for each document is 35MB. 4. Click the Submit Transaction button, located on the transaction page, to complete your payment request. The Submit Transaction button will not be enabled until all required supporting documents are uploaded. Note: Once a transaction is saved, select the transaction number from the Payment Request tab to access it again. Please do not create multiple transactions for the same requested funds. Procedures and Requirements SB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-36 Amended April 2022 11 Unspent Funds Funds that are unspent at the end of the grant term must be returned by check to CalRecycle by June 15, 2024 May 16, 2. Checks should be made payable to the Department of Resources Recycling and Recovery. Checks must contain the Grant Number (i.e., OWR1 -21 -xxxx), specify "SB 1383 Local Assistance Grant Unspent Funds," and be mailed to: CalRecycle Accounting SB 1383 Local Assistance Grant Unspent Funds PO Box 4025 Sacramento, CA 95812-4025 Unspent funds due to CalRecycle but left unpaid may result in ineligibility for future grant and payment program funding. If there are questions or other issues related to expenditures, work with your Grant Manager to resolve these issues. Audit Considerations The grantee agrees to maintain records and supporting documentation pertaining to the performance of this grant subject to possible audit for a minimum of three (3) years after Final Report approval date or Grant Term end date, whichever is later. CalRecycle may stipulate a longer period of records retention in order to complete any action and/or resolution of all issues which may arise as a result of any litigation, dispute, or audit, whichever is later. Examples of audit documentation include, but are not limited to, competitive bids, grant amendments, copies of any agreements with contractors or subcontractors if utilized, expenditure ledger, payroll register entries, time sheets, Expenditure Itemization Summary forms, payment supporting documentation, paid warrants, contracts and change orders, samples of items and materials developed with grant funds, invoices, and cancelled checks. Please refer to the Terms and Conditions (Exhibit A) for more information. Procedures and Requirements SB 1383 Local Assistance Grant Program (FY 2021-22) - First Round Funding 6-37 Amended April 2022 12 ATTACHMENT C City of Newport Beach i BUDGET AMENDMENT c9c'Fo , 2022-23 BA#: 23-002 Department: Public Works ONETIME: Ekes E to Requestor: David Webb Approvals ❑ CITY MANAGER'S APPROVAL ONLY Finance Director: Date COUNCIL APPROVAL REQUIRED City Clerk: Date EXPLANATION FOR REQUEST: To increase revenue estimates in the CalRecycle grant account and to increase expenditure appropriations in the Refuse ❑rom existing budget appropriations Professional Services Account due to securing CalRecycle Local Assistance Grant. Drom additional estimated revenues Drom unappropriated fund balance REVENUES Fund # Org Object Project Description Increase or (Decrease) $ 010 0108051 431490 G2280 REFUSE - CAL RECYCLE 122,038.00 Subtotal $ 122,038.00 EXPENDITURES Fund # Org Object Project Description Increase or (Decrease) $ 010 0108051 811008 G2280 REFUSE - SERVICES PROFESSIONAL 122,038.00 Subtotal $ 122,038.00 FUND BALANCE Fund # Object Description Increase or (Decrease) $ 010 300000 GENERAL FUND - FUND BALANCE CONTROL Subtotal $ No Change In Fund Balance 6-38 ATTACHMENT D AMENDMENT NO. THREE TO ON -CALL PROFESSIONAL SERVICES AGREEMENT WITH ECO/NOMICS, INC., WHICH WILL DO BUSINESS IN CALIFORNIA AS ECAUNOMICS, INC. FOR SOLID WASTE CONSULTING THIS AMENDMENT NO. THREE TO ON -CALL PROFESSIONAL SERVICES AGREEMENT ("Amendment No. Three") is made and entered into as of this 28th day of June, 2022 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a Califomia municipal corporation and charter city ("City"), and ECO/NOMICS, INC., WHICH WILL DO BUSINESS IN CALIFORNIA AS ECAL/NOMICS, INC., a Colorado Corporation ("Consultant"), whose address is P.O. Box 2790, Del Mar, California, 92014, and is made with reference to the following: RECITALS A. On May 9, 2017, City and Consultant entered into a Professional Services Agreement ("Agreement") for Solid Waste Consulting. ("Project"). B. On September 10, 2019, City and Consultant entered into Amendment No. One to the Agreement ("Amendment No. One") to reflect additional services not previously included in the Agreement, extend the term of the Agreement to May 8, 2025 and to increase the total compensation. C. On December 1, 2021, City and Consultant entered into Amendment No. Two to the Agreement ("Amendment No. Two") to reflect additional Services not included in the Agreement, as amended, to increase the total compensation due to the volume of Work required, and updated the Insurance Requirements (Exhibit C) to the Agreement. D. The parties desire to enter into this Amendment No. Three to reflect additional Services not included in the Agreement, as amended, to increase the total compensation to reflect additional grant funding received by the City, to update the insurance coverage, and to update the Project Administrator. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. COMPENSATION TO CONSULTANT 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 hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all Work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed One Million Two Hundred Seventy Two Thousand Thirty Eight Dollars and 00/100 ($1,272,038.00), 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." 6-39 The total amended compensation reflects Consultant's additional compensation for additional Services to be performed in accordance with this Amendment No. Three, including all reimbursable items and subconsultant fees, in an amount not to exceed One Hundred Twenty Two Thousand Thirty Eight Dollars and 00/100 ($122,038.00). 2. ADMINISTRATION Section 6 of the Agreement is amended in its entirety and replaced with the following: "This Agreement will be administered by the Deputy Public Works Director - Municipal Operations. The Deputy Public Works Director - Municipal Operations or his/her designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement." 3. INSURANCE REQUIREMENTS Exhibit C (Insurance Requirements) to the Agreement is amended in its entirety and replaced with the attached Exhibit C and incorporated herein by reference. 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., which will do business in California as Ecal/nomics, Inc. Page 2 6-40 IN WITNESS WHEREOF, the parties have caused this Amendment No. Three to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: +vo J 3 of 1 '4By: , M A o " &-\ A r n t. Harp ujj;j z City Attorney ATTEST: Date: By: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Kevin Muldoon Mayor CONSULTANT: Eco/Nomics, Inc., which will do business in California as Ecal/nomics, Inc., a Colorado Corporation Date: By: William O'Toole Chief Executive Officer / Chief Financial Officer [END OF SIGNATURES] Attachment: Exhibit C -- Insurance Requirements Eco/Nomics, Inc., which will do business in California as Ecal/nomics, Inc. Page 3 6-41 EXHIBIT C INSURANCE REQUIREMENTS — PROFESSIONAL SERVICES Provision of Insurance. Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. Consultant agrees to provide insurance in accordance with requirements set forth here. If Consultant uses existing coverage to comply and that coverage does not meet these requirements, Consultant agrees to amend, supplement or endorse the existing coverage. 2. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 3. Coverage Requirements. A. Workers' Compensation Insurance. Consultant shall maintain Workers' Compensation Insurance, statutory limits, and Employer's Liability Insurance with limits of at least One Million Dollars ($1,000,000) each accident for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code. Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its City Council, boards and commissions, officers, agents, volunteers, employees and any person or entity owning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by this Ag reement. B. General Liability Insurance. Consultant shall maintain commercial general liability insurance, and if necessary umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than One Million Dollars ($1,000,000) per occurrence, Two Million Dollars ($2,000,000) general aggregate. The policy shall cover liability arising from premises, operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). C. Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of Consultant arising out of or in connection with Work to be performed under this Eco/Nomics, Inc. dba Ecal/Nomics, Inc. Page C-1 6-42 Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than One Million Dollars ($1,000,000) combined single limit each accident. D. Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of One Million Dollars ($1,000,000) per claim and Two Million Dollars ($2,000,000) in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the Effective Date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. 4. Other Insurance Requirements. The policies are to contain, or be endorsed to contain, the following provisions: A. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its City Council, boards and commissions, officers, agents, volunteers, employees and any person or entity owning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by this Agreement or shall specifically allow Consultant or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers from each of its subconsultants. B. Additional Insured Status. All liability policies including general liability, excess liability, pollution liability, and automobile liability, if required, but not including professional liability, shall provide or be endorsed to provide that City, its City Council, boards and commissions, officers, agents, volunteers, employees and any person or entity owning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by this Agreement shall be included as insureds under such policies. C. Primary and Non Contributory. All liability coverage shall apply on a primary basis and shall not require contribution from any insurance or self-insurance maintained by City. D. Notice of Cancellation. All policies shall provide City with thirty (30) calendar days' notice of cancellation (except for nonpayment for which ten (10) calendar days' notice is required) or nonrenewal of coverage for each required coverage. Eco/Nomics, Inc. dba Ecal/Nomics, Inc. Page C-2 6-43 5. Additional Aqreements Between the Parties. The parties hereby agree to the following: A. Evidence of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. City reserves the right to require complete, certified copies of all required insurance policies, at any time. B. City's Right to Revise Requirements. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Consultant sixty (60) calendar days' advance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant's compensation. C. Right to Review Subcontracts. Consultant agrees that upon request, all agreements with subcontractors or others with whom Consultant enters into contracts with on behalf of City will be submitted to City for review. Failure of City to request copies of such agreements will not impose any liability on City, or its employees. Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a format at least as broad as CG 20 38 04 13. D. Enforcement of Agreement Provisions. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder. Eco/Nomics, Inc. dba Ecal/Nomics, Inc. Page C-3 6-44 E. Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. F. Self -insured Retentions. Any self -insured retentions must be declared to and approved by City. City reserves the right to require that self -insured retentions be eliminated, lowered, or replaced by a deductible. Self- insurance will not be considered to comply with these requirements unless approved by City. G. City Remedies for Non -Compliance. If Consultant or any subconsultant fails to provide and maintain insurance as required herein, then City shall have the right but not the obligation, to purchase such insurance, to terminate this Agreement, or to suspend Consultant's right to proceed until proper evidence of insurance is provided. Any amounts paid by City shall, at City's sole option, be deducted from amounts payable to Consultant or reimbursed by Consultant upon demand. H. Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. Consultant's Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. Eco/Nomics, Inc. dba Ecal/Nomics, Inc. Page C-4 6-45