Title
Environmental Management recommending the Board approve the continuation of the perpetual Agreement 8174 for the procurement of compost with Waste Connections of California, Inc., dba El Dorado Disposal for services beginning January 1, 2026.
FUNDING: Solid Waste County Service Area 10.
Body
DISCUSSION / BACKGROUND
SB 1383 was passed in 2016 as part of California’s climate strategy to reduce methane emissions from landfills. Organic materials represent approximately half of the waste placed in landfills statewide. SB 1383 requires jurisdictions to reduce the volume of organic waste placed in landfills by 75 percent by 2025 and to meet annual procurement targets for recovered organic waste products, including compost.
On July 18, 2023 (Item 23-1319), the Board received a presentation from Environmental Management regarding the County’s procurement obligations under SB 1383. The Board directed staff to negotiate procurement agreements for biomass-derived electricity and compost. Following additional analysis and cost comparisons presented to the Board on November 14, 2023 (Item 23-1779), the Board directed staff to proceed with a compost-only procurement approach through El Dorado Disposal.
The County entered into Agreement 8174 to procure compost for an initial period through December 31, 2025, renewing automatically for consecutive renewal terms unless terminated by either party. Board of Supervisors Policy C-17, Section 2.6, Contract Term, requires departments to obtain authorization from the Board initially, and every three years, for any contract that does not have a stated agreement term. The requested extension of the Perpetual Agreement is retroactive, as the new term began on January 1, 2026.
To ensure ongoing compliance with the SB 1383 procurement requirements beyond 2025, Environmental Management now recommends approval of a perpetual Agreement with El Dorado Disposal beginning January 1, 2026. A perpetual agreement is necessary because SB 1383 requires continuous annual procurement and El Dorado Disposal is the sole feasible provider of compost generated within El Dorado County, qualifying this Agreement as exempt from competitive bidding under Policy C-17 Section 3.4 (2)(a), (d), (f), and (g).
The recommended not-to-exceed annual amount of $470,096 continues the established cost basis for meeting the County’s full annual procurement targets. Actual annual cost will depend on the volumes delivered, logistical capacity for compost movement, and continued development of compost distribution sites.
ALTERNATIVES
The Board could choose not to approve the perpetual Agreement. This alternative would require staff to identify other procurement options, which may not be feasible or cost-effective and could place the County at risk of non-compliance with SB 1383.
PRIOR BOARD ACTION
8/30/22 - Legistar 22-1188 - Adoption of Ordinance 5164 for SB 1383 compliance.
7/18/23 - Legistar 23-1319 - Direction to negotiate procurement contracts.
11/14/23 - Legistar 23-1779 - Authorization to pursue 100% compost procurement with El Dorado Disposal.
4/2/24 - Legistar 24-0492 - Approval of Agreement 8174
CAO RECOMMENDATIONS / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The Agreement includes an annual not-to-exceed amount of $470,096. Funding for 2026 has been included in Environmental Management’s budget request. Funding for subsequent years will be requested annually. CSA 10 Solid Waste funds and SB 1383 grant funding.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Jeffrey Warren, REHS
Director, Environmental Management Department