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item 22 Approval of an agreement with Synagro West LLC to provide compost procurement services. (Cost: $301,291.87)(Action Item)

Garden Grove City Council
September 24, 2024

Document
item 22 Approval of an agreement with Synagro West LLC to provide compost procurement services. (Cost: $301,291.87)(Action Item)
Meeting
September 24, 2024
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Garden Grove City Council
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2
Original file
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Text extracted from the city's file for reading and search. Open the original on agendasuite.org. That file is the official record.

Item 384/2024
Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Samuel Kim
Dept:

City Manager Dept: Public Works
Date: 9/24/2024

Subject: Approval of an agreement with Synagro West LLC to provide compost procurement services. (Cost: $301,291.87)(Action Item)

OBJECTIVE

For the City Council to approve an agreement with Synagro West LLC (Synagro) to provide compost procurement services in alignment with Senate Bill (SB) 1383.

BACKGROUND

In September 2016, then Governor Jerry Brown signed Senate Bill (SB) 1383 into law to achieve a reduction in the statewide disposal of organic waste. Organic waste is primarily comprised of food scraps, green waste, landscape and pruning waste, wood and lumber, and paper products.

SB 1383 specifically requires cities and counties to procure 0.08 tons of Recovered Organic Waste Product (ROWP) material based on the City’s population on a yearly basis, and is adjusted every five years as determined by Califo rnia Department of Finance. CalRecycle adopted a tiered approach to the procurement requirements in SB 1383 with a 30% procurement target in calendar year 2023, 65% target in 2024, and 100% procurement starting in 2025.

The regulations provide that the pr ocurement of ROWP can be achieved through the direct use or purchase of credits for the use of compost or mulch; Renewable Natural Gas (RNG) for transportation, heating, or electricity; or electricity created from Biomass Conversion. The regulations allow jurisdictions to purchase the ROWP for direct use or give away, such as providing compost to agriculture.

DISCUSSION

For the City to meet the 65% requirement for 2024, which amounts to 8,969 tons of ROWP, or 5,202 tons of compost, staff implemented a variety of methods.

Arrangements were made with Orange County Waste and Recycling (OCWR) to provide bagged compost at all our community clean up events at no cost to the City. The 360 bags Item 384/2024

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are disbursed at each event, equal about 30 tons of material. Additionally, Republic Services hosts an annual Compost Giveaway event where approximately 16 tons is provided to the public.

OCWR has also provided composted mulch product for free. Approximately 45 tons of composted mulch has been delivered to Willowick Golf C ourse with an additional 15 tons delivered to Public Works for general use. Around 130 tons of composted mulch has been applied to medians.

To meet the remainder of the procurement target, the City issued RFP No. S-1331 on May 24, 2024 through PlanetBids. Five bids were received on June 24, 2024. The RFP also included the requirement for the bidders to provide pricing for 2025 and 2026 at 7,800 tons of material each year. The source selection committee rated the bids received and interviewed the two highest rated bidders. The bid from Synagro was deemed most responsive. Under the agreement, Synagro will need to enter into Direct Service Provider agreements on behalf of the C ity, provide 4,800 tons of compost to agricultural businesses, and provide related documentation for 2024.

FINANCIAL IMPACT

The first year of the agreement is $67,599. The second (2025) and third (2026) option years of the agreement will cost $114,513.75 and $119,179.12 respectively due to the larger procurement amounts required.

The total cost of the proposed 3 -year agreement is $301,291.87. The contract amount will be funded by a CalRecycle grant through June 2026. Both grant revenue and project costs will be accounted for in Fund 237, CalRecycle special revenue fund. The item is budgeted in the FY2024-25 operating budget, and no additional appropriation is necessary. Future years’ contract amount will be incorporated in the upcoming biennial budget process.

RECOMMENDATION

It is recommended that the City Council:
 Approve the agreement with Synagro West LLC, in the amount of $301,291.87, which includes option years 2025 and 2026; and
 Authorize the City Manager to sign the agreement on behalf of the City and make minor modifications as needed.

By: Mark Ladney, Senior Program Specialist

ATTACHMENTS

1. Synagro West Agreement

2. Synagro West Best and Final Offer

3. Synagro West Proposal

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