CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 15 Section Name: {{section.name}} Account Number: 21-4678 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: November 18, 2024
SUBJECT:
SB 1383 Recovered Organics Waste Procurement Services — Agreements and Amendment RECOMMENDATION:
Approve agreements with the Resource Conservation Districts of Monterey and Santa Cruz Counties for SB 1383 recovered organics procurement services, each for one year at $100,000, with three optional one-year extensions totaling up to $400,000 per agreement. Approve Amendment No. 1 to the agreement with the Tuolumne County Resource Conservation District, increasing the total amount to $103,600, with three optional one-year extensions totaling up to $403,600.
Authorize the City Manager to execute the agreements and amendment in substantially the form presented.
BACKGROUND:
Senate Bill 1383 (SB 1383) is a short-term climate pollutants reduction act reducing greenhouse gas emissions (methane) generated from landfilling organics. To build a market for the organics diverted from landfills, the City is required to procure recovered organics products such as compost, mulch, and renewable natural gas. The City’s annual, ongoing recovered organics procurement target is 8,244 tons. The target is based on a calculation multiplying the per capita procurement target (a defined value of 0.08 tons of organic waste estimated to be generated per California resident per year) by the City’s 2021 population of 103,045. Jurisdictions have the flexibility to procure a variety of products to meet their local needs, including transportation fuel, electricity, and heat from renewable gas, electricity from biomass conversion, compost, and mulch.
Currently, compost is the only SB 1383-compliant recovered organic product available to the City. In 2023, through compost giveaways at the City’s Corporation Yard and Wastewater Treatment Plant and the City’s participation in the Countywide Compost Broker Partnership with the San Mateo Resource Conservation District, the City procured 609 tons, leaving a gap of 7,635 tons.
Staff is working to meet the City’s annual procurement target in other ways, such as exploring renewable natural gas production at the Wastewater Treatment Plant; however, to meet the annual procurement target, the City must contract with the agricultural community in other regions of California to procure SB 1383-complaint compost and find appropriate sites for its application.
SB 1383 allows the City to enter into “direct service provider” agreements with entities for the purpose of procurement of recovered organics, such as compost, provided a written contract or agreement is in place for such procurement. On August 20, 2024, the City entered into an agreement with Tuolumne County Resource Conservation District for the procurement of SB 1383 compliant compost. However, the City needs additional providers in order to meet its requirement target. To that end, the City has identified the Resource Conservation Districts of Monterey and Santa Cruz Counties as providers available to procure SB 1383-compliant compost in order to meet the City’s target requirements.
CITY OF SAN MATEO
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Each of these proposed agreements with these Resource Conservation Districts meets the definition of “direct service provider agreement” and is a first step to meeting the City’s annual target with the help of the regional agricultural community. The agreements will provide for the procurement of SB 1383-compliant compost to help meet the City’s target and are based on the successful Countywide Compost Broker Program in San Mateo County. Staff anticipates these additional procurement agreements will get the City to approximately 80 percent of its ongoing annual procurement target, however, amounts procured each year will be dependent upon compost availability, cost per ton, and number of jurisdictions competing for available supply to meet their own targets. Staff expects to achieve the remaining 20 percent of the annual target via other means.
Based on the above, staff recommends Council approve one-year agreements with three optional one-year extensions with the Resource Conservation Districts of Monterey and Santa Cruz Counties to meet the City’s SB 1383 requirements.
Staff also recommends approving Amendment No. 1 to the agreement with the Tuolumne County Resource Conservation District to increase the agreement total amount by $100,000 and allow for three optional one-year extensions in order to allow the Tuolumne Resource Conservation District to continue providing SB 1383 compliant compost to the City.
BUDGET IMPACT:
There are sufficient funds in the Solid Waste Fund in the Solid Waste Management program operating budget to fund the agreements and amendment.
ENVIRONMENTAL DETERMINATION:
Approving agreements with the Resource Conservation Districts of Monterey and Santa Cruz Counties, and an amendment to the City’s agreement with the Tuolumne County Resource Conservation District to assist the City in procuring SB 1383 compliant compost to meet the City’s annual compost procurement target is not a project subject to CEQA, because it can be seen with certainty that it will not cause a physical change in the environment. (Public Resources Code Section 21065.)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Agreement with the Resource Conservation District of Monterey County Att 2 - Agreement with the Resource Conservation District of Santa Cruz County Att 3 - Amendment No. 1 to the Agreement with the Tuolumne County Resource Conservation District
STAFF CONTACT
Jack Johnson, Waste Management Supervisor
[email protected]
(650)522-7346