Agenda Report
Fullerton City Council
MEETING DATE: SEPTEMBER 17, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: STEPHEN BISE, PUBLIC WORKS DIRECTOR
PREPARED BY: JEROME JOAQUIN, ADMINSTRATIVE MANAGER
MICHELLE DURON, SOLID WASTE AND RECYCLING SPECIALIST
SUBJECT: AGREEMENT WITH ZERO FOODPRINT FOR SENATE BILL 1383 COMPOST CREDIT PROCUREMENT
SUMMARY
Staff requests City Council approve a $218,155.14 purchase order with Zero Foodprint for Senate Bill 1383 (SB 1383) procurement credit for compost use and all required documentation to comply with SB 1383 Calendar Year 2024 (at 65%) and Calendar Year 2025 (at 100%) Procurement Target requirements.
PROPOSED MOTION
Authorize Administrative Services Director, or designee, to award $218,155.14 purchase order to Zero Foodprint.
Authorize City Manager, or designee, to execute and administer agreements and documentation necessary to procure SB 1383 credit for 10,388.34 tons of compost use.
ALTERNATIVE OPTIONS
Approve Proposed Motion
Other options brought by City Council,
STAFF RECOMMENDATION
Staff recommends the proposed motion.
CITY MANAGER REMARKS
The City Manager recommends approval.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
None.
FISCAL IMPACT
This item has no net General Fund impact as grant funding fully supports the cost to purchase SB 1383 procurement credits and support mandates. The Zero Foodprint purchase order will total $218,155.14 to procure 10,388.34 tons of SB 1383 compost credit along with required documentation to meet the $85,821.75 Calendar Year 2024 (at 65%) and $132,333.39 Calendar Year 2025 (at 100%) procurement targets.
The FY 2024-25 Adopted Budget includes the Fiscal Year 2022-23 SB 1383 Local Assistance Grant Program in the Refuse Fund (Fund 46) to support costs.
BACKGROUND AND DISCUSSION
Staff requested approval to procure SB 1383 credit for 1,940.80 tons of compost use and all required documentation to meet the SB 1383 Calendar Year 2023 (30%) Procurement Target goals on November 21, 2023. City Council approved the recommendation understanding that the City could continue working with Zero Foodprint for future purchases, if desired.
Zero Foodprint would continue supporting City compliance with legislative Recovered Organic Waste Product (ROWP) procurement regulations set forth by Governor Brown in September 2016 to reduce statewide harmful short-lived climate pollutants as well as Assembly Bill 1985 signed by Governor Newsom allowing a more attainable phased implementation method to procure ROWP. Fullerton has a 11,154-ton annual procurement target. A jurisdiction must procure 65% of its ROWP target on or after January 1, 2024 and 100% in 2025 and thereafter.
Staff researched qualifying procurement product options and uses and considered the most beneficial and cost-effective method of compliance for Calendar Year 2024 and 2025. The City signed a Direct Service Provider Agreement with Orange County Waste and Recycling (OCWR) to procure compost and mulch at no cost. The Public Works Street Maintenance Division periodically establishes a schedule to transport materials from the Bee Canyon Greenery in Irvine and eventually from the Valencia Greenery in Brea when it becomes available. The City uses the materials for the new Annual Seasonal Compost Giveaway and within City green spaces. The City also receives SB 1383 compost credit from Republic Services Annual Compost Giveaways for community members and Cal State Fullerton. The City would procure the remainder of the ROWP procurement goals with Zero Foodprint, totaling 10,388.34 tons for $218,155.14.
Calendar Year(s)
City Compost Procurement Target
City Internal Planned Compost Use
Zero Foodprint SB 1383 Compost Credit Procurement Recommendation Zero Foodprint Cost at $21 / Ton
2024 (65%)
4,205.1
118.35
4,086.75
$85,821.75
2025 (100%)
6,469.3
167.71
6,301.59
$132,333.39
TOTAL:
10,674.4
286.06
10,388.34
$218,155.14
Zero Foodprint secured 2,083.99 tons of compost for the Calendar Year 2023 SB 1383 compost credit purchase, 143.19 tons beyond the procurement compliance target. Staff reviewed compost procurement pricing with similar vendors and neighboring cities and found Zero Foodprint continues as most cost-effective option to meet City SB 1383 procurement needs.
Staff recommends issuing a $218,155.14 purchase order to Zero Foodprint for SB 1383 procurement credit for compost use and all documentation to comply with SB 1383 Calendar Year 2024 (65%) and Calendar Year 2025 (100%) procurement target requirements. The purchase order with Zero Foodprint would expire on December 31, 2025. Staff estimates an average ongoing $135,000 (calendar year) cost to continue work with Zero Foodprint, should the City desire. This action would ensure continued compliance with this portion of SB 1383 regulations and demonstrate City commitment to fulfill State Corrective Action Plan tasks. Staff will continue to pursue grants that could support this ongoing cost and identify additional internal compost usage opportunities.
Attachments:
Attachment 1 – Zero Foodprint Proposal
cc: City Manager Eric J. Levitt
SB 1383 Compost Credit Procurement
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