Title
Environmental Management recommending the Board:
1) Find that the Agreement for Services with Waste Connections of California, Inc, dba El Dorado Disposal is exempt from competitive bidding in accordance with Procurement Policy C-17 3.4 (2)(a), (f), and (g);
2) Approve and authorize the Chair to sign Agreement 8174 with Waste Connections of California, Inc for the procurement of compost that will satisfy the SB 1383 procurement targets for El Dorado County, in an amount not to exceed $470,096 and a term beginning upon execution and ending December 31, 2025; and
3) Seek Board direction for the funding source for Fiscal Year 2024-25 and Fiscal Year 2025-26 for this Agreement.
FUNDING: Solid Waste County Service Area 10, future years To Be Determined.
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DISCUSSION / BACKGROUND
SB 1383 was passed in 2016 as part of California’s strategy to combat climate change. Organics like food scraps, yard trimmings, paper, and cardboard make up half of what Californians dump into landfills. This waste releases 20% of the state’s methane. SB 1383 requires jurisdictions to reduce landfill organic waste by 75% by 2025.
On July 18, 2023 (Item #23-1319) the Board received a presentation from Environmental Management regarding the SB-1383 procurement requirements for the County of El Dorado which included procurement of compost from El Dorado Disposal and biomass-derived electricity through GreenLeaf Power DBA Desert View Power LLC. A motion was made by Supervisor Hidahl, seconded by Supervisor Turnbo to direct staff to negotiate a three-year contract with Desert View Power, LLC through Pioneer Energy to purchase a minimum of 50% Biomass credits if available and to also negotiate a three-year contract with El Dorado Disposal for the balance of the procurement to be in Compost to comply with Senate Bill 1383.
On November 14, 2023 (Item #23-1779), Environmental Management brought a three-year Agreement #8123 with Desert View Power LLC for Board authorization and approval for a minimum of 50% biomass credits with Desert View Power LLC. Environmental Management and El Dorado Disposal were then to begin negotiating a three-year contract for the balance of procurement in compost. However, as an alternative, Environmental Management proposed revisiting an option of 100% compost procurement from El Dorado Disposal as the City of Placerville had successfully launched its compost procurement program with favorable results. It was determined that 100% procurement with El Dorado Disposal would be approximately $465,652 versus $727,939 for the 50% energy attribute, and 50% compost mix which would be procured in the Desert View Power LLC Agreement. A motion was made by Supervisor Parlin, seconded by Supervisor Turnboo to deny approval of the Desert View agreement and direct staff to incorporate the 100% compost procurement option from El Dorado Disposal into the forthcoming agreement with El Dorado Disposal.
This Contract is to fulfill SB1383 target requirements for the Procurement of Organic Compost Materials by the County of El Dorado, from an El Dorado County Franchisee, Waste Connections/EDD. SB 1383 requires the County to procure specific tonnage of Compost materials, and there is no other feasible option for doing so. Avenues have been investigated and the Board has authorized Environmental Management to negotiate this contract with EDD for this procurement purpose on behalf of El Dorado County. This qualifies as an exemption to policy C-17 under 3.4 (2)(a), (d), (f), and particularly (g): "(g) when so directed by the Court, the funding source, as mandated by the state, or other relevant authority." This was approved by the Board on 11/14/2023 (Item #23-1779), to be negotiated specifically with Waste Connections/EDD.
The not-to-exceed amount of $470,096 is based on 100% target procurement for 2024 and 2025. However, the feasibility of obtaining the targets will be limited to the logistics of moving compost and the compost program development.
For Fiscal Year 23/24, EDD estimates that approximately 280 tons of compost could be delivered (1 truck load of 20 tons per week). Based on this amount at $36 a ton, the approximate cost is $10,080.
For the first half of Fiscal Year 24/25, it is estimated that EDD could increase deliveries of 2 truckloads per week as the compost program and sites are developed, which is approximately 960 tons of compost for July through December. Based on this amount at $36 a ton, the approximate cost is $34,560.
Environmental Management will utilize CSA #10 funding for Fiscal Year 23/24 and the first half of Fiscal Year 24/25. Environmental Management seeks direction on funding the Agreement for the second half of Fiscal Year 24/25 and Fiscal Year 25/26 and recommends the utilization of General Funds as the source of funding.
ALTERNATIVES
The Board could choose not to sign and approve this contract and review other methods of meeting procurement targets that do not include the purchase of biomass attributes.
PRIOR BOARD ACTION
8/30/22 - Legistar 22-1188 - Approval of Ordinance 5164 as required for compliance with SB 1383.
7/18/2023 - Legistar 23-1319- Approval of Negotiations with Desert View Power LLC for Biomass Attributes.
11/14/2023- Legistar 23-1779 - Approval of Negotiations with El Dorado Disposal for compost procurement.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
CAO's Office
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The financial impact of this contract is not to exceed $470,096. The procurement targets are based on a calendar year and the requirements for 2024 will be partially funded by the 2023-24 and 2024-25 budget from the CSA #10 Solid Waste fund and SB 1383 grants, with a not to exceed the amount of $60,000. Environmental Management's budget will be updated at addenda to add this contract. Funding for the remainder of the term will be included in the budget request for future fiscal years.
CLERK OF THE BOARD FOLLOW-UP ACTIONS
The Clerk of the Board will obtain the Chair's signature on the original budget transfer and will forward the budget transfer to the Auditor-Controller for processing.
CONTACT
Jeffrey Warren, REHS
Director of Environmental Management Department