Fremont City Council Meeting: 05/09/23 07:00 PM
3300 Capitol Avenue Div/Dept: Environmental Services
Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 4894) DOC ID: 4894
Updated: 5/4/2023 3:21 PM by Alberto Quintanilla Page 1 COMPOST SERVICES CONTRACT FOR SB 1383 COMPLIANCE - Authorize the City Manager or Designee to execute a $117,000 agreement with Zero Foodprint, for the purchase of compost to be utilized in California agriculture operations to comply with State law compost procurement requirements
Contact Persons:
Name: Allyn McAuley Suzanne Wolf
Title: Environmental Specialist I Community Services Director Div/Dept: Environmental Services Community Services
Phone: 510-494-4576 510-494-4329
E-Mail: [email protected] [email protected]
Executive Summary: Senate Bill 1383 (Short-Lived Climate Pollutant Plan) obligates jurisdictions to procure specified amounts of landscape products (e.g. compost) in order to support reuse of organic waste. Compliance is monitored and enforced by CalRecycle. The City’s procurement obligation far exceeds what can be used in City operations, so staff has been evaluating alternative methods to meet these obligations. Staff is therefore recommending the City Council authorize the City Manager or her designee to execute an agreement with Zero Foodprint for their Compost Connector service. Activities under this agreement are a cost effective way to satisfy most of the City’s 2023 procurement obligation under Senate Bill 1383.
The Compost Connector links municipal funders with sustainable agriculture farmers. Under this agreement, the City will fund compost volumes that will be utilized by agricultural partners secured by Zero Foodprint and will receive procurement credit for these volumes from CalRecycle.
These contract services are estimated at $117,000 for a one-year term. The services will be funded solely by already-acquired State SB 1383 Local Assistance Grant funds. Should the City wish to extend the agreement, staff will bring the item back to the City Council for review. There is no anticipated impact to the General Fund.
BACKGROUND: SB 1383 aims to substantially draw down the greenhouse gas emissions from one of California’s largest sources, landfills. The primary mechanism to achieve this goal is to divert food scraps, yard trimmings, and other organic waste from landfills through citywide organic waste collection programs. To spur demand for end products of these collection programs, the law also requires jurisdictions, such as the City of Fremont, to procure considerable amounts of organic waste products, including compost. Jurisdictions face penalties up to $10,000/day for noncompliance. The City’s procurement requirement in 2023 is 3,260 tons of compost. This amount far exceeds what can be used in City operations, so staff has been evaluating additional options to meet the requirement.
The City’s compliance over the years with SB 1383 and prior State laws is aided by its membership in the Alameda County Waste Management Authority (StopWaste). The City is one of 17 member agencies. StopWaste’s mission is to reduce waste and divert discarded Council Staff Report (ID # 4894) Meeting of May 9, 2023 Updated: 5/4/2023 3:21 PM by Alberto Quintanilla Page 2 materials from landfill through waste prevention and reduction, reuse, recycling, composting, and other initiatives.
In January 2022, StopWaste executed a sole-source procurement with Zero Foodprint for a countywide Compost Connector pilot. Zero Foodprint is a unique nonprofit organization that only funds regenerative agriculture projects that reduce pollution, produce healthier food, improve soil quality, and draw down greenhouse gases by storing carbon in soil. The pilot program was highly successful, resulting in the procurement of 1,500 tons of compost countywide and 212 tons of compost procurement credit allocated to Fremont, specifically .
The City’s compliance with SB 1383 is monitored and enforced by the State agency, CalRecycle. Zero Foodprint and CalRecycle already have an established relationship.
CalRecycle has reviewed the agreement between StopWaste and Zero Foodprint as well as other Compost Connector documents as they pertain to the procurement requirements of SB 1383.
DISCUSSION/ANALYSIS: Due to the success of the StopWaste regional pilot, staff is recommending approval of a direct contract with Zero Foodprint to subsidize 3,000 tons of compost for sustainable farms in California. The City is required to procure a substantial amount of compost in a short timeframe (by 12/31/23), so it is crucial to secure an agreement for a turnkey service that has the ability to utilize that much material.
CalRecycle’s prior review of Zero Foodprint’s program materials gives staff confidence that CalRecycle will grant credit towards the City’s procurement obligation, ensuring that a sizable expenditure of State grant funds is properly allocated.
Zero Foodprint’s obligations under the agreement are:
• Identify agricultural customers;
• Provide a discount on compost to those customers; and • Populate a recordkeeping portal for the City with requisite SB 1383 information and other useful project data.
The City’s obligations under the agreement are:
• Provide monthly payments to Zero Foodprint for compost transactions executed on our behalf, enabling them to provide a discount for compost to agricultural clients ; and
• Submit requisite SB 1383 reports to CalRecycle using information provided by Zero Foodprint.
FISCAL IMPACT: There are no anticipated fiscal impacts because the agreement with Zero Foodprint will be fully funded by already-awarded funds from the State’s SB 1383 Local Assistance Grant Program. There is no expected impact to the General Fund.
ENVIRONMENTAL REVIEW: The proposed agreement is exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines: 1) §15061 (Review for Exemption) in that the activity is covered by the common sense exemption because it can be seen with certainty that there is no possibility that the agreement may have a significant effect on the environment, and 2) §15378 (Project) in that the proposed agreement is not a “project.” Furthermore, the City is entering the Council Staff Report (ID # 4894) Meeting of May 9, 2023 Updated: 5/4/2023 3:21 PM by Alberto Quintanilla Page 3 subject agreement pursuant to CalRecycle’s SB 1383 Regulations, which were part of a program environmental impact report (EIR) prepared by CalRecycle. The activities to be carried out under the proposed agreement are entirely within the scope of the SB 1383 Regulations and the respective EIR. No mitigation measures identified in the EIR are applicable to the proposed agreement. Moreover, none of the conditions requiring a subsequent or supplemental EIR, as described in Public Resources Code §21166 and CEQA Guidelines §§ 15162 (Subsequent EIRs and Negative Declarations) and 15163 (Supplement to an EIR), have occurred. Therefore, the EIR adequately analyzes any potential environmental effects of the proposed agreement, and no additional environmental review is required.
Each of the foregoing provides a separate and independent basis for CEQA compliance.
ATTACHMENTS: None.
RECOMMENDATION: Authorize the City Manager or designee to execute a service agreement with Zero Foodprint for their Compost Connector service for a not to exceed amount of $117,000.