Title
Recommendation to Authorize the City Manager to Execute a One-Year Agreement, with the Option of Four One-Year Extensions, for a Total Five-Year Agreement with California Wood Recycling Inc. (dba Agromin) for Procurement of Senate Bill 1383 Eligible Compost and/or Mulch on Behalf of the City of Alameda in Outside Jurisdictions in a Total Amount Not-to-Exceed $288,240.16.
In accordance with the California Environmental Quality Act (CEQA), this project is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15308 (Actions by Regulatory Agencies for Protection of the Environment). (Public Works 261/262)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Under Senate Bill 1383 (SB 1383), California jurisdictions are required to procure a minimum amount of recycled organic waste products per year. As a result of this legislation, the City of Alameda (City) is required to procure 6,471 tons of mulch/compost annually. Staff completed an analysis of potential space within the City to apply mulch and/or compost and determined the City can currently apply about 1/3 of the City’s total SB 1383. Due to local application limits and cost, as well as fines if the City does not meet the requirement, staff are proposing a broker solution to meet the annual requirements.
On April 12, 2024, staff issued a Request for Proposal (RFP) for compost and mulch procurement to meet requirements set forth by California’s Resource and Recovery entity (CalRecycle) pertaining to SB 1383. Staff recommends awarding an agreement to California Wood Recycling Inc. dba Agromin in an amount not-to-exceed $288,240.16.
BACKGROUND
SB 1383 was passed in 2016 and compliance is managed by CalRecycle. SB 1383 was signed into law to reduce short-lived climate pollutants, including methane. To reduce methane emissions from landfills, SB 1383 established a statewide target to reduce organic waste disposal 75 percent from 2014 levels by 2025. The law also requires the State to increase edible food recovery 20 percent by 2025. Effective January 1, 2022, cities and counties in California (jurisdictions) are required to procure a minimum amount of recycled organic waste products (mulch or compost) each year. Jurisdictions can meet the requirement by procuring products for use or giveaway within their jurisdiction. Jurisdictions can also meet this requirement through agreement with private parties (e.g., school district) to apply accepted materials or a broker type arrangement where a jurisdiction purchases materials for use outside of its jurisdictional limits.
The procurement target is based on population and Alameda is required to procure 6,471 tons of recycled organic waste products, per SB 1383 regulations. This translates to 9,383 cubic yards (CY) of material. CalRecycle approved a tiered approach towards full compliance of the compost/mulch procurement requirement. Jurisdictions are expected to meet 30% of the target in calendar year 2023, 65% of the target in calendar year 2024, and 100% of the target in calendar year 2025 and beyond.
To date, staff focused on maximizing compost application in the City. The City’s mulch needs are met by on-site processing and reuse of removed trees/tree trimmings within the City. Unfortunately, this re-used material does not count toward Alameda’s SB 1383 procurement requirements. Assembly Bill (AB) 2346 is proposed legislation that aims to address some of the obstacles that currently exist with SB 1383, including the matter of mulch produced within a jurisdiction. Staff provided a letter of support for this legislation, which was signed by the Mayor on March, 25 2024.
Through the City’s Solid Waste, Recycling and Organics Franchise Agreement with Alameda County Industries (ACI), the City annually receives 2,000 CY of bulk compost and 1,000 CY of “sports field” quality compost material. The Alameda Recreation and Parks Department (ARPD) applies the received “sports field” quality material and the bulk material is provided to Alameda’s Compost Hub (a partnership with Marker Farm and Farm2Market to give compost to the community at no cost). In 2023, just over 1,600 CY of compost was either applied at parks or distributed at Alameda’s Compost Hub.
To identify additional locations to apply compost, staff developed a map of City green spaces and the estimated volume of potential compost application at those sites. Each space was categorized as City owned/managed, private or other (e.g. educational institution). Through this analysis, areas for 3,603 CY of compost annually was identified, which is insufficient to meet the City’s annual SB 1383 requirement of 9,383 CY.
Even if there was sufficient area in Alameda to apply the total amount of compost, staff estimate it would cost a total of $450,000-$650,000 annually to meet the procurement requirements of SB 1383 for compost (beyond the allotment of free materials the Franchise Agreement with ACI provides annually to the City). These cost estimates are based on existing staffing and equipment costs for the current application of materials described above and depend on the quality of mulch/compost products purchased.
DISCUSSION
Based on evaluation of the mapping data and cost analysis, staff determined there is sufficient capacity in Alameda for 1/3 of the compost required by SB 1383. To maintain compliance with SB 1383, staff recommends a broker model for the compost materials the City cannot apply. A broker model is used when a jurisdiction does not have sufficient space to apply the materials locally. The jurisdiction pays for the organic materials while the broker finds parties in need of compost, such as farms and other agricultural uses. This model is used by other regional jurisdictions including the cities of Oakland, Pleasanton and San Ramon.
On April 12, 2024, staff issued an RFP for a broker to manage compost and mulch procurement to meet requirements set forth by CalRecyle pertaining to SB 1383. After a submittal period of 30 days, staff received one (1) proposal. Based on review of the proposal and meeting the criteria of the RFP, staff recommend awarding an agreement to California Wood Recycling Inc. dba Agromin, for up to five years, in an amount not-to-exceed $288,240.16.
As reflected in Exhibit 1, the annual not-to-exceed cost is a combination of services provided by Agromin (Scenario A and Scenario B) to ensure fulfillment and efficiency. The difference in the scenarios is the cost to transport the materials. If the party receiving the materials is father away from Agromin’s facilities, that party pays the transport costs, if closer, then the City pays the minimal transport costs. Based on Agromin’s existing customers and experience with this work, they are proposing a combination of these approaches to best and most cost effectively meet Alameda’ procurement needs.
Staff is recommending a one-year agreement with an option of four extensions due to timing limitations and contractual obligations of the brokerage model. Agromin must make commitments with the direct service providers who will be accepting and using the material procured and, as discussed above, Alameda’s needs might change as legislation advances. Staff will work with Agromin on an annual basis to determine the amount of material needed to be procured for a particular year.
ALTERNATIVES
• Authorize the City Manager to execute a contract with Agromin.
• Do not move forward with the broker model and apply the maximum amount of material that City can spread in a calendar year. This approach may face penalties from CalRecycle, up to $10,000/day for failure to meet the total target of materials required under SB 1383.
FINANCIAL IMPACT
The funds for this agreement are budgeted in the Public Works Operating Budget for Fiscal Years (FY) 2023-2025, funded from the Integrated Waste Fund/Measure D/SB 1383 Grant Fund (261/262/G21210 - PW - FY 22/23). Budget appropriations beyond FY2024-25 are subject to City Council consideration and approval. There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Climate Action and Resiliency Plan, 2019 (CARP), the Zero Waste Implementation Plan, 2010, and ZWIP Update, 2018 (ZWIP) and the City’s Strategic Plan with its aim to build resilience to climate change and reduce greenhouse gas (GHG) emissions through the use of compost and through fiscally responsible governance (GOV1). This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with CEQA, this project is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15308 (Actions by Regulatory Agencies for Protection of the Environment). The strategies in the ZWIP Update are intended to guide the City in the reduction in greenhouse gas emissions, thus protecting the environment.
CLIMATE IMPACTS
The City’s CARP assumed full implementation of the 2018 ZWIP and its attendant reductions in GHG emissions through 2030. The services rendered in this agreement divert waste, including organics, from the landfill, which reduce methane emissions. The importance of reducing methane emissions from municipal waste sent to the landfill is codified in California’s Senate Bill 1383 passed in 2016.
RECOMMENDATION
Authorize the City Manager to execute a five-year agreement with Agromin for procurement of SB 1383 eligible compost and/or mulch on behalf of the City in outside jurisdictions in an amount not-to-exceed $288,240.16.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Marc Green, Zero Waste Program Specialist
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Agreement