1 1
4 0
DATE: March 2, 2026
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Andrew Brozyna, Public Works Director
DEPARTMENT: Public Works
SUBJECT: MEMORANDUM OF UNDERSTANDING WITH THE COUNTY OF
SAN MATEO FOR THE SAN MATEO COUNTY COMPOST FOR
CLIMATE SOLUTIONS PROGRAM
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution with the following actions:
1. Authorize an appropriation in the amount of $45,000 from the Construction and Demolition Fund (129) to Account No. 129-0932-431-42-51;
2. Authorize the City Manager to sign a Memorandum of Understanding (MOU) with the County of San Mateo for the San Mateo County Compost for Climate Solutions Program (CCSP) in the amount of $45,000 from March 3, 2026 through December 31, 2026;
3. Authorize the City Manager to continue participation in the program through execution of future MOUs up to the amount required by Senate Bill 1383 (SB 1383) in an amount not to exceed $75,000 in each year that the City participates in the program, through December 31, 2029; and
4. Find the MOU exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3).
EXECUTIVE SUMMARY
SB 1383 requires jurisdictions to procure recovered organic waste products such as compost and mulch. Foster City has participated in the San Mateo County Compost for Climate Program since 2022. Approval of the new MOU will ensure the City’s continued
1 1
4 0
participation in the program and compliance with SB 1383 compost procurement requirements. For 2026, staff recommends a $45,000 program payment through a supplemental appropriation from the Construction and Demolition Fund (Fund 129), which will meet a portion of the City’s procurement target. The remaining portion is expected to be met through the Parks Division’s compost purchases for use throughout the City parks and landscapes. It is also recommended that the City Manager be authorized to continue participation for a three-year term through December 31, 2029, in an amount not to exceed $75,000 annually, to provide flexibility if the City’s procurement target increases.
BACKGROUND
Passed in September 2016, SB 1383 established statewide methane emissions reduction targets in an effort to reduce emissions of short-lived climate pollutants. It includes statewide goals to reduce the disposal of organic waste and recover edible food for human consumption. Among the many regulations associated with SB 1383, all cities and counties must procure target amounts of recovered organic waste products such as compost, mulch, renewable energy from anaerobic digestion and electricity from biomass conversion. The most typical way for a city to achieve its target is through procurement of compost and mulch. Each jurisdiction, including Foster City, is assigned an annual procurement target by the California Department of Resources Recycling and Recovery (CalRecycle). The San Mateo County Sustainability Department, the cities and towns of San Mateo County and the San Mateo Resource Conservation District (RCD) developed a program to assist San Mateo County jurisdictions with meeting their annual SB 1383 procurement requirements by offering reduced-cost compost to San Mateo County farmers and ranchers. Between 2021 and 2025 the CCSP procured and applied more than 30,000 tons of compost to local farms and rangelands, contributing to countywide procurement targets while improving soil health and climate resilience along the county’s coastline.
The original agreement with the RCD, dated August 22, 2022, was executed under the authority of the City Manager. On March 4, 2024, the City Council approved Amendment No. 1 to the agreement, extending the term for an additional two-year period, expiring in 2026.
Beginning in 2026, the County of San Mateo (County) will serve as the administrator of the Program and will enter into a single intergovernmental agreement with the RCD to implement compost procurement, delivery, application, and required SB1383 recordkeeping on behalf of participating jurisdictions. Under this structure, the City would enter into this MOU with the County and provide an annual payment to the CCSP. In return, the City of Foster City will receive SB1383 procurement credit in proportion to its contribution without the need to directly manage contracts, field activities, or carry out record keeping activities.
1 1
4 0
ANALYSIS
Foster City’s procurement target for 2026 is 1,523 tons per year. For calendar year 2026, staff recommends contributing $45,000 via the MOU, which is anticipated to result in approximately 1,058 tons of recovered organic waste product procurement credit. This is a portion of the share of Foster City’s requirement of 1,523 tons. The remaining portion of the City’s requirement is expected to be purchased and used by the Parks Division throughout the City to enrich park soils, and support healthier turf, trees, and planting beds. The County will retain two to four percent for staff time required to manage and coordinate the Program on behalf of the City. The County will provide the City with procurement documentation and reporting information necessary for inclusion in the City’s Electronic Annual Report (EAR) to CalRecycle and will provide written program status updates.
The MOU is attached to this staff report as Attachment 2. Staff recommends that the City Council authorize the City Manager to execute the MOU with the County for an annual payment of $45,000 for calendar year 2026 and to continue participation in the Program to meet the City’s annual compost procurement requirement in an amount not to exceed $75,000 per year through December 31, 2029. Staff will return to City Council for continued approval at the end of the three-year term. Because CalRecycle sets the compost procurement target annually, the $75,000 not-to-exceed amount provides flexibility if Foster City’s target increases, supporting continued coordination and successful implementation of the Program with annual renewal options during the MOU term.
CALIFORNIA ENVIRONMENT QUALITY ACT
This Agreement is exempt under the “common sense” exception (14 Cal. Code Regs. § 15061(b)(3)) because it can be seen with certainty that there is no possibility that this action may have a significant effect on the environment.
FISCAL IMPACT
The fiscal impact of the proposed MOU is $45,000 for 2026 from a supplemental appropriation from the Construction and Demolition Fund (129) to Account No. 129- 0932-431-42-51. Established in FY 2005–2006 to support implementation of the City’s Construction and Demolition Ordinance (Foster City Municipal Code Chapter 15.44), the Construction and Demolition Fund is primarily funded by forfeited refundable deposits from projects that fail to document required waste diversion under CalGreen and the City’s ordinance, and it may be used for programs that promote environmental sustainability. For 2027 and 2028, the fiscal impact is not to exceed $75,000 in Fund 129 and will be budgeted accordingly.
1 1
4 0
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Sustainability
ATTACHMENTS
Attachment 1 – Resolution
Attachment 2 – MOU Between the City of Foster City and the County of San Mateo for the San Mateo County Compost for Climate Solutions Program