Title
Recommendation to Authorize the City Manager to Execute a Five-Year Agreement with Oliveira Enterprises, Inc. for Procurement of Senate Bill (SB) 1383 Eligible Compost and/or Mulch for Application Throughout Alameda (Various Locations) in an Amount Not-to-Exceed $200,000.
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/G21220)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Under Senate Bill (SB) 1383, California jurisdictions are required to procure a minimum amount of recycled organic waste material (mulch and/or compost) per year. As a result of this legislation, the City of Alameda (City) is required to procure 6,471 tons of material per year. The City is in need of an organic waste material supplier to provide material to locations throughout Alameda with a focus on the City’s existing agreement for the compost hub, which is a partnership between the City, Farm2Market and MakerFarm and provides for community compost giveaways.
On January 24, 2025, City staff issued a Request for Proposals (RFP) for organic material procurement to meet requirements set forth by California’s Resource and Recovery regulatory body (CalRecyle) pertaining to SB 1383 for delivery to locations within the City. After a submittal period of 13 days, staff received seven proposals. Based on review of the proposals and the criteria of the RFP, staff determined that Oliveira Enterprises, Inc is the vendor best able to meet the City’s needs and recommend awarding a five-year agreement in an amount not-to-exceed $200,000.
BACKGROUND
SB 1383 was adopted by the State of California in 2016 with compliance enforced by CalRecycle. Effective January 1, 2022, cities and counties in California (jurisdictions) are required to procure a minimum amount of recycled organic waste products each year, (i.e. mulch and/or compost). Jurisdictions can meet the requirement by procuring products for use or giveaway within the jurisdiction, as well as by utilizing brokers to procure compost for application outside of the jurisdiction. The City must procure 6,471 tons of recycled organic waste products per calendar year to be compliant with SB 1383 regulations. The procurement target is calculated based on a formula of 0.08 tons of organic waste per resident. Assembly Bill (AB) 2346 is recently passed legislation that will adjust the SB 1383 targets by allowing for on-site processing (e.g., tree mulching) to count towards the procurement target. The City will adjust its targets accordingly when CalRecycle officially adopts the new targets set forth in AB 2346.
City staff worked in conjunction with Alameda County Solid Waste Authority (StopWaste), PlaceWorks consultants, and City IT staff to develop a map of Alameda’s green spaces, associated square footage, and estimated cubic yards available for potential organic material application within the City. Based on these calculations, it was determined that the City has insufficient green space for compost and mulch application to meet the full current procurement targets. As a result, staff tendered an RFP on April 12, 2024, for organic material brokers to provide a Direct Service Provider (DSP) agreements for compost use outside of Alameda. California Wood Recycling (Agromin) was awarded the contract.
Staff continues to focus efforts on compost application within the City, recognizing the environmental and health benefits of local application such as reduced carbon emissions, improved sporting facilities and carbon and rainwater capture from community and individual gardening projects. A key component of local application is providing free compost to the community for application to non-public green spaces. This is done through Almeda’s Compost hub (a partnership with MakerFarm and Farm2Market). The City has a current Agreement with MakerFarm and Farm2Market whereby the City provides funding for compost procurement, and MakerFarm and Farm2Market provide the storage and staffing to enable public access to the compost at no charge to the community. The City directly purchases the compost used at these locations and at this time it is necessary to execute a new agreement for the purchase and delivery of these materials.
Staff applied for the second round of CalRecycle SB 1383 grant funding in November of 2023, and was awarded an amount of $208,212 in April of 2024. These funds are currently appropriated to fund the procurement of compost for Alameda Recreation and Parks Department (ARPD), equipment for compost application, the compost hub, and the Agromin Agreement. Grant funds must be used by April 2026. Upon exhaustion of these grant funds, staff will seek additional budget appropriations to deliver the requirements of SB 1383, including any modification to targets made by the adoption of AB 2346.
DISCUSSION
On January 25, 2025, staff issued an RFP for SB 1383 compliant organic material (compost/mulch) procurement for delivery to community locations within Alameda. After a submittal period of 13 days, staff received seven proposals. Based on review of the proposals and ability of providers to meet the requirements of the RFP, staff recommend awarding an agreement to Oliveira Enterprises, Inc.as the provider best able to meet the City’s needs, in an amount not-to-exceed $200,000.
Below are the proposer’s costs per cubic yard of material.
|
Proposer |
Location |
Cost/Cubic Yard |
|
Oliveira Enterprises Inc. |
Byron, CA |
$25.00 |
|
Synagro |
Baltimore, MD |
$28.29 |
|
Mitchells Transport |
San Franciso, CA |
$31.00 |
|
GreenWaste |
San Jose, CA |
$52.50 |
|
Terra Landscape |
San Leandro, CA |
$71.25 |
|
West Coast Arborist |
Anaheim, CA |
N/A, not provided. |
ALTERNATIVES
• Authorize the City Manager to execute a contract with Oliveira Enterprises, Inc. as presented above.
• Direct staff to rebid proposals for this service and/or explore other avenues for community compost giveaway.
FINANCIAL IMPACT
The funds for this agreement are budgeted in the Public Works Operating Budget for the Integrated Waste Program for Fiscal Year 2024-25, funded from the Integrated Waste Fund/Measure D/SB 1383 Grant Fund (261/262/ G21220). Funding for subsequent years in the agreement is subject to City Council appropriations approval. There is no impact on the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code. The work in this agreement is consistent with the Climate Action and Resiliency Plan (CARP, 2019), the Zero Waste Implementation Plan (ZWIP, 2010), ZWIP Update (ZWIP, 2018) and the City’s Strategic Plan priorities to build resilience to Climate Change and Water Level Rise.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with CEQA, this project is categorically exempt 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 (GHG) emissions, thus protecting the environment.
CLIMATE IMPACT
The City’s CARP assumes full implementation of the 2018 ZWIP and its intended reductions in GHG emissions through 2030. The services rendered in this contract divert waste, including organics, from the landfill, which reduces methane emissions. The importance of reducing methane emissions from municipal waste sent to the landfill is codified in California’s SB 1383 passed in 2016.
RECOMMENDATION
Authorize the City Manager to execute a five-year agreement with Oliveira Enterprises, Inc. for procurement of SB 1383 eligible compost and/or mulch on behalf of the City in outside jurisdictions in an amount not-to-exceed $200,000.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Marc Green, Program Specialist
Financial Impact section reviewed,
Ross McCarthy, Acting Finance Director
Exhibit:
1. Agreement