CC SR 20241106 J - SB1383 Mulch Procurement Agromin
CITY COUNCIL MEETING DATE: 11/06/2024
AGENDA REPORT AGENDA HEADING: Consent Calendar
AGENDA TITLE:
Consideration and possible action to approve an agreement with California Wood
Recycling, Inc. (DBA Agromin) to procure compost material pursuant to Senate Bill 1383
(Organic Waste).
RECOMMENDED COUNCIL ACTION:
(1) Approve a three-year direct service provider agreement with California Wood
Recycling, Inc. (DBA Agromin) to procure compost material to meet the City’s
required Procurement Target under Senate Bill (SB) 1383; and
(2) Authorize the Mayor to execute the direct service provider agreement, in a form
acceptable to the City Attorney.
FISCAL IMPACT: Pursuant to the requirements of SB 1383, the recommended action
will result in an authorized expenditure of $31,654 for Fiscal Year
(FY) 2024-25 and $48,692 for each of the following two fiscal years,
for a three-year total of $129,038.
The City received $114,339 from the SB 1383 Local Assistance
Grant Program, which will be used to pay for eligible expenditures
such as this required compost requirement. Sufficient funding for FY
2024-25 is included in the approved budget in the Solid Waste Fund.
The expenditure for future fiscal years is planned to be requested in
future budget cycles.
Amount Budgeted: $32,500
Additional Appropriation: N/A
Account Number(s): 213-400-0000-4901
(Solid Waste Fund – Misc. Expenses)
ORIGINATED BY: Vanessa Hevener, Project Manager
REVIEWED BY: Ramzi Awwad, Director of Public Works
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. Direct Service Agreement with Agromin (page A-1)
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BACKGROUND
In September 2016, Governor Brown signed into law SB 1383, also known as California’s
Short-Lived Climate Pollutant Reduction Act, to reduce the emissions of short-lived
climate pollutants (SLCP) such as methane by 75% by 2025. Methane is emitted from
various sources, including organic waste (e.g., yard waste, food waste, soiled paper
products) when it decomposes in landfills.
The Department of Resources Recycling and Recovery (CalRecycle) oversees a variety
of programs and policies, including organic waste recycling under SB 1383 which became
effective on January 1, 2022, with enforcement deferred until January 1, 2024. To assist
local municipalities in implementing SB 1383, the State provided funding through the SB
1383 Local Assistance Grant Program. The City applied for the grant and was awarded
$114,339 for eligible expenditures such as outreach and education, edible food recovery,
record keeping, and procurement requirements.
SB 1383 includes procurement requirements that mandate jurisdictions, including the
City, to procure recovered organic waste products to support the market for recycled
materials, reduce waste, and promote sustainable practices. Tonight, the Council is being
asked to enter into an agreement with a direct service provider to procure compost
material to meet the City’s required Procurement Target under Senate Bill (SB) 1383.
DISCUSSION:
Jurisdictions, at their discretion, may procure any combination of four (4) recovered
organic waste products: compost, mulch, renewable gas, and electricity from biomass
conversion (burning of wood materials) to fulfill their procurement requirements. In
addition, jurisdictions may choose to either use or donate those products, depending on
local needs. There are no requirements that a jurisdiction’s procurement must be of
products produced within that jurisdiction or use a particular jurisdiction’s organic
materials.
A jurisdiction’s procurement target is calculated by multiplying its population, as reported
by the California Department of Finance, by the per capita procurement target (0.08 tons
of organic waste per California resident per year). A subsequent Assembly Bill (AB) 1985
added a two-year phase in period to meet procurement goals. The City’s Procurement
Target as amended by AB 1985, is as follows:
• Calendar Year 2023: 997 tons of recovered organic waste product (30% of
procurement target)
• Calendar Year 2024: 2,160 tons of recovered organic waste product (65% of
procurement target)
• Calendar Year 2025 and beyond: 3,323 tons of recovered organic waste product
annually
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Staff evaluated a variety of ways to meet its required Procurement Target and determined
that the amount of compost and/or mulch needed to meet the Procurement Target far
exceeds the City’s capacity to apply the materials on City medians, parks and parklands
or an estimated 580 cubic yards or 812 tons of mulch each year . Staff has also reached
out to the Palos Verdes Peninsula Land Conservancy to determine if they could use
compost/mulch in the Preserve. They expressed a concern that compost and/or mulch
from outside areas may introduce non-native and invasive materials in the Preserve
contrary to the City’s preservation and restorations efforts.
Because the City is unable to use the materials within City limits, Staff looked at options
of donating its recovered organic waste products to organics recyclers who can produce
compost on behalf of the City and donate it for agricultural uses. Two of the three vendors
provided responses and based on those responses, Staff recommends contracting with
Agromin over a three-year term to provide compost and make it available to other entities
that will accept it, in order to meet the City’s Procurement Target for calendar years 2024,
2025, and 2026.
Vendor/Product
Procurement Target by Calendar Year
(recovered organic waste product)
2024
2,160 tons
(65%)
2025
3,323 tons
(100%)
2026
3,323 tons
(100%)
Agromin (compost/mulch) $31,654 $48,692 $48,692
Greenleaf Power (electricity
from biomass)
$106,797 $110,001 $110,001
Anaergia (renewable gas) No response
Agromin is currently under contract with the Cities of San Ramon, Pleasanton, and other
cities throughout the State. Agromin has identified a location in Ventura County that has
the capacity to accept the City’s compost. As previously stated, the City is not required to
keep the procured tons within City limits (most cities have opted to procure compost and
make it available to farmers throughout California by working with compost producers ).
The City intends to procure 1,254 tons of compost (0.58 ton of compost is equivalent to
one ton of recovered organic waste product) from Agromin for calendar year 2024 and
1,928 tons of compost for subsequent years to meet the City’s Procurement Target.
ADDITIONAL INFORMATION:
Through the City’s residential franchise agreement, EDCO is obligated to provide 500
cubic yards (or 250 tons) of compost for free to residents via the bi-annual compost
giveaway program. Thus, there is no additional need for compost, via the requirements
of SB 1383, for use in the City.
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CONCLUSION:
Staff recommends the City Council approve a direct service provider agreement with
California Wood Recycling, Inc. DBA Agromin to procure compost to meet the City’s
required Procurement Target under Senate Bill 1383.
ALTERNATIVES:
In addition to the Staff recommendations, the following alternative action s are available
for the City Council’s consideration:
1. Do not approve the direct service provider agreement. This action places the City
at risk of violating SB 1383, with the potential for fines of up to $10,000 per day if
the violation is not corrected.
2. Take other action, as deemed appropriate by the City Council.
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Qualifications for Procurement Services
30% Please Prinon PosConsumer ConenRecycled Paper
5.0 Agreemenbeween DirecService Provider and Jurisdicon
Terms and Condions
1. By placing his order hrough Agromin/Caliornia Compos, [Mhl Farm, Inc.] agrees o
procure and use he produc(s) on behalo[Rancho Palos Verdes]or he purpose o
aciliang [Rancho Palos Verdes] compliance wih Senae Bill 1383’s implemenng
regulaons’ recovered organic wase producprocuremenrequiremens, as described
in he Caliornia Code oRegulaons Tile 14, Division 7, Chaper 12, Arcle 12 –
ProcuremenoRecovered Organic Wase Producs (14 CCR 18993.1 eseq.).
2. [Mhl Farm, Inc.] agrees o provide he locaon o he use o he applicaon and a
general descripon o he use o he produc(s).
3. [Mhl Farm, Inc.] agrees o allow Agromin o include his and oher documens
evidencing he use oproducs on behalo[Rancho Palos Verdes].
4. [Mhl Farm, Inc.] agrees o hold harmless [Rancho Palos Verdes]or any injuries o
person or propery arising ouo he delivery or use o he producs.
Signaure: ________________________________________
Name: ___________________________________________
Company: Mhl Farm, Inc.
Dae: ____________________________________________
Inormaon below can be provided by separae documenidesired:
Produc(s)o be purchased: Compos100
Quany oproduc(s)o be purchased: 1,254 ons oCompos100 delivered o (DSP)
Inended use o he produc(s): Ag soil amendmen
Locaon(s) where producwould be used: Olive Ave. Wincheser, CA 92596
A-1