TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Amber Shah, Parks & Public Works Director/City Engineer DATE: December 10, 2025
SUBJECT: AWARD OF CONTRACT FOR SOLID WASTE AND
RECYCLING CONSULTING SERVICES TO ECONOMICS INC.
THROUGH JUNE 30, 2028, IN AN AMOUNT NOT TO
EXCEED $320,420, APPROVAL OF FIVE-YEAR SERVICE
AGREEMENT WITH TERRA COMPLIANCE FOR SB 1383
COMPLIANCE SOFTWARE IN THE AMOUNT OF $75,000
AND WAIVER OF COMPETITIVE BIDDING
REQUIREMENTS; APPROVAL OF BUDGET AMENDMENTS
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government
BACKGROUND
Senate Bill (SB) 1383, the State’s Short-Lived Climate Pollutant Reduction Act, took effect on January 1, 2022. This legislation requires significant reductions in organic waste disposal and imposes new statewide mandates on all jurisdictions related to collection, processing, monitoring, and reporting of organic material. In 2023, with the City’s existing solid waste agreement expiring and not compliant with SB 1383 requirements, the City retained EcoNomics, Inc. to assist with negotiations for a new agreement with the City’s waste hauler. After fourteen months of negotiations without reaching a mutually acceptable agreement, the City amended EcoNomics’ scope to assist with a formal Request for Proposals (RFP) for a new, SB 1383-compliant 10- year agreement. That agreement was awarded to Valley Vista Services on May 21, 2025, and became effective on May 31, 2025.
Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
Because the existing agreement with EcoNomics expires December 31, 2025, the City issued a RFP on October 24, 2025, for ongoing solid waste consulting services via the City’s online procurement platform (OpenGov). The scope includes assistance with CalRecycle compliance, administration of the City’s solid waste agreement, rollout of SB 1383-required programs, and public outreach. On November 14, 2025, a total of four (4) proposals were received.
After reviewing proposals and conducting interviews, staff recommend award of contract to EcoNomics, Inc.
As SB 1383 implementation has advanced statewide, many jurisdictions have implemented specialized software to monitor compliance, track hauler data, and maintain CalRecycle-required Implementation Records. Staff have solicited informal proposals from several vendors and now recommend approval of a five-year software agreement with Terra Compliance to support data tracking and reporting needs.
DISCUSSION
Solid Waste and Recycling Consulting Services
As the City continues to implement the extensive requirements of SB 1383, ongoing expert support is essential. SB 1383 mandates a wide range of activities including contamination monitoring, enforcements, recordkeeping, edible food recovery oversight, service verifications, hauler performance monitoring, and continuous reporting to CalRecycle. These requirements are not one-time tasks; they create a permanent annual compliance workload that must be implemented accurately to avoid State enforcement actions, penalties, and compliance orders. Under the terms of the solid waste agreement with Valley Vista Services, the City began receiving a monthly Regulatory Compliance Fee as of October 1, 2025, that will offset the costs incurred by the City to comply with the State’s solid waste regulations including SB 1383 compliance.
In response to the City’s RFP for ongoing solid waste consulting services, the City received four (4) proposals from the following firms:
• EcoNomics, Inc.
• HF&H Consultants
• Municipal Waste Solutions, Inc.
• SCS Engineers
After comprehensive review, interviews, and reference checks, staff recommend Economics Inc. for the following reasons:
• Regulatory Knowledge: EcoNomics has extensive technical knowledge of solid waste regulations including AB 939, AB 341, AB 1826, and SB 1383.
• Extensive Experience: EcoNomics has expertise in contract management, implementation and compliance management including State reporting requirements and CalRecycle’s compliance assessment and enforcement processes.
• Familiarity with City Operations: EcoNomics has worked closely with the City since 2023 and has detailed knowledge and understanding of the City’s agreement with Valley Vista Services, the City’s unique backyard service model and community expectations.
• Proven Performance: EcoNomics has been highly responsive, professional, and effective, particularly during the accelerated solid waste agreement procurement process completed this year.
EcoNomics, Inc. has demonstrated the technical expertise necessary to guide the City through these complex and evolving mandates. Their continued involvement is critical as the City transitions from initial rollout to full, ongoing compliance. EcoNomics’ experience with San Marino’s unique backyard collection system, combined with their regulatory expertise, and detailed knowledge and understanding of the City’s solid waste agreement positions them to effectively oversee hauler compliance, maintain required records, provide data analysis, support CalRecycle reporting and help ensure the City attains compliance with state diversion mandates.
SB 1383 Compliance Software
As SB 1383 implementation has advanced statewide, many jurisdictions have implemented specialized software to monitor compliance, track hauler data, and maintain CalRecycle-required Implementation Records. Staff evaluated informal proposals and software demonstrations from three (3) vendors that offer SB 1383-specific compliance software as follows:
Software Term Length Implementation
Cost Annual Cost
1 Year $2,000 $17,000 Minerva 3 Year $0 $15,000
Recyclist/Routeware 3 Year $5,000 $24,888
1 Year $0 $20,000
Terra Compliance 3 Year $0 $18,333
5 Year $0 $15,000
Terra Compliance was determined to provide the best value based on system functionality, usability, and cost. Key features include:
• Unlimited Data Uploads: Accepts uploads from multiple sources at no additional cost.
• CalRecycle Electronic Annual Report (EAR)/Implementation Record Automation: Automatic population from inspection, waiver, and enforcement data saves staff time and money.
• Instantaneous Data Reflection: Changes made by any user are visible across the system immediately, no refresh or overnight sync required. • Multi-Platform Functionality: performs seamlessly across desktop, tablet and mobile browsers allows on-site data capture in the field. • User and Permission Management: Role-based access for City staff, inspectors, waste hauler and consultants in a single environment. • Customization: New fields, generator types, or compliance rules can be requested at no additional cost.
The Terra Compliance software will further strengthen the City’s ability to manage SB 1383 requirements by centralizing data from Valley Vista Services and automating key compliance functions. This software will allow staff and EcoNomics to efficiently track contamination monitoring, inspections, waivers, and outreach activities ensuring the City maintains a complete and up-to-date SB 1383 Implementation Record as required by State law.
Together, the consulting services and compliance software represent core components of the City’s long-term SB 1383 compliance strategy.
Waiver of Competitive Bidding for Software
Although the cumulative contract amount for the SB 1383 compliance software exceeds $30,000 and would typically require a formal RFP, staff recommend a waiver of competitive bidding requirements for the following reasons:
1. Specialized Market: SB 1383 compliance software is a Californiaspecific, niche service available from a limited number of vendors.
2. Efficiency: Obtaining informal proposals from three (3) qualified vendors provided sufficient competition while avoiding a lengthier RFP process for a highly specialized service.
3. Cost Savings: Terra Compliance offers a discounted five-year agreement ($15,000 per year vs. $20,000 annually), saving the City $25,000 over the contract term.
Therefore, staff recommend a waiver of the formal bidding requirements specified in Section 2.06.05 of the Municipal Code.
Staff recommend approval of both agreements due to the ongoing and mandatory nature of SB 1383 compliance activities, and because the cost of these services is fully offset by the regulatory compliance fees received monthly from Valley Vista Services, resulting in no net cost to the City.
FISCAL IMPACT & PROCUREMENT REVIEW
While the EcoNomics, Inc. and Terra Compliance agreements represent significant compliance-related work, the full cost of these services is offset by monthly regulatory compliance fee revenue paid by Valley Vista Services under the terms of the City’s new solid waste agreement.
For FY 2025–26, the City anticipates receiving $318,750 in regulatory compliance fees which exceeds the combined Year 1 costs of both agreements.
This dedicated revenue source was intentionally structured into the agreement to ensure the City’s costs associated with SB 1383 compliance do not impact the General Fund.
Thus, although budget amendments are required to allocate the revenue and expenditures appropriately, there is no net fiscal impact to the City, and these services will be fully funded through the franchise agreement’s cost-recovery structure.
Economics Inc’s agreement is for three years, ending June 30, 2028. The cumulative not-to-exceed amount for the agreement is $320,420. See below for breakdown:
Year Cost Note
FY 25-26 $149,970 Higher due to SB 1383
rollout programs
FY 26-27 $95,550
Reduced cost/effort but
includes support for
CalRecycle JACE audit.
FY 27-28 $74,900
Total $320,420
The adopted FY 2025-26 budget includes $160,000 in Account #101-40-4104- 0000 (Contract Engineering Services). Of this line-item total, $110,000 was budgeted for solid waste consulting services that have been completed to date under the current agreement with EcoNomics. A budget amendment in the amount of $149,970 to Account #101-40-4104-0000 is necessary to account for the first year of Economics’ services under the new agreement.
Terra Compliance’s cost is $15,000 per year for a five-year term ($75,000 total). A budget amendment of $15,000 to Account #101-40-4150-0500 (Other Contract Services – IT) is necessary to cover the costs of the first year of Terra’s services. A budget amendment of $318,750 to Revenue Account #101-40-3701-0000 is needed to account for the regulatory compliance fee.
Received.
The Finance Director has reviewed this staff report for compliance with San Marino City Code §02.06.05 and recommends a waiver of the formal bidding requirements for the Terra Compliance agreement.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends that the City Council 1)approve an award of contract to Economics, Inc. for solid waste and recycling consulting services through June 30, 2028, in an amount not to exceed $320,420, 2) approve an agreement with Terra Compliance for solid waste/recycling compliance monitoring and tracking software in the amount of $75,000 and waive competitive bidding requirements pursuant to Municipal Code Section 2.06.05, 3) authorize the City Manager to execute both agreements on behalf of the City, and 4) approve budget amendments in the amount of $149,970 to Account #101- 40-4104-0000, $15,000 to Account #101-40-4150-0500, and $318,750 to Revenue Account #101-40-3701-0000. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to 1) approve an award of contract to Economics, Inc. for solid waste and recycling consulting services through June 30, 2028, in an amount not to exceed $320,420, 2) approve an agreement with Terra Compliance for solid waste/recycling compliance monitoring and tracking software in the amount of $75,000 and waive competitive bidding requirements pursuant to Municipal Code Section 2.06.05, 3) authorize the City Manager to execute both agreements on behalf of the City, and 4) approve budget amendments in the amount of $149,970 to Account #101-40-4104-0000, $15,000 to Account #101-40-4150-0500, and $318,750 to Revenue Account #101-40-3701- 0000.”
ATTACHMENTS
1. Draft Professional Services Agreement with Economics, Inc.
2. Proposal for Solid Waste and Recycling Consulting Services
3. Draft Agreement with Terra Compliance
4. Proposal from Terra Compliance