Actions related to the award of a Product Purchase Contract with West Coast Waste, Inc. (Citywide) 1. Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines 2. Award a Product Purchase Contract to West Coast Waste, Inc. through October 20, 2026, for the purchase of 43,750 Procurement Compliance Attributes (PCA) tons from compost product as required by California State Senate Bill (SB) 1383 procurement requirement for recovered organic waste products in a single year amount not to exceed $210,943.91 (Bid File 12700034)

REPORT TO THE CITY COUNCIL FROM: PAUL AMICO, PE, Director Department of Public Utilities BY: JAMES VERROS, Assistant Director Department of Public Utilities - Solid Waste Management VIRGINIA MALOLES-FOWLER, REHS, Projects Administrator Department of Public Utilities Administration SUBJECT ..Title Actions related to the award of a Product Purchase Contract with West Coast Waste, Inc. (Citywide) Adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines Award a Product Purchase Contract to West Coast Waste, Inc. through October 20, 2026, for the purchase of 43,750 Procurement Compliance Attributes (PCA) tons from compost product as required by California State Senate Bill (SB) 1383 procurement requirement for recovered organic waste products in a single year amount not to exceed $210,943.91 (Bid File 12700034) ..Body RECOMMENDATION Staff recommends Council adopt a finding of Categorical Exemption pursuant to Section 15301/Class 1 of the California Environmental Quality Act (CEQA) Guidelines; and award a Product Purchase Contract to West Coast Waste, Inc through October 20, 2026, for the purchase of 43,750 PCA tons of compost product as required under SB 1383 procurement requirement for recovered organic waste products in a single year amount not to exceed $210,943.91, and authorize the Director of Public Utilities, or designee, to sign the contract on behalf of the City of Fresno (City). EXECUTIVE SUMMARY SB 1383 requires local jurisdictions to purchase recycled organic mulch or compost products and/or energy credits derived from using recycled organic materials to create energy. SB 1383 establishes these requirements for the City based upon the size of the population, resulting in the directive to purchase 43,742 PCA tons of recycled organic mulch or compost, or an equivalent amount of energy credits. This tonnage is determined annually, which is why the contract is not a multi-year agreement. To achieve full procurement compliance for 2026 the City must purchase 43,742 Procurement Compliance Attributes (PCA) tons of compost. The result will be to be in compliance with CalRecycle’s mandated procurement requirement. BACKGROUND SB 1383, the Short-Lived Climate Pollutants: Organic Methane Waste Emissions Reduction Act (Lara, Chapter 395, Statutes of 2016), was passed by the California State Legislature to reduce greenhouse gases produced by organic material in the waste stream. Requirements regarding the procurement of Recovered Organic Waste Product (ROWP) are included in this legislation, and starting January 1, 2022, SB 1383 required jurisdictions to meet an annual procurement target of ROWPs based on population. To achieve full procurement compliance for 2026 the City must purchase 43,742 PCA tons of ROWP. On December 20, 2024, the City awarded a sole source purchase agreement with Rio Bravo Rocklin for the purchase of 24,448 PCA of biomass renewable energy for the total cost of $171,136. The Rio Bravo Rocklin agreement expired after purchase and a new requirements contract was needed for the purchase of the 2026 procurement requirement. Purchasing either recycled organic products or energy credits is required annually. In accordance with Fresno Municipal Code Chapter 4, Article 1, and Administrative Order 6-28, the Department of Public Utilities conducted a competitive process for selecting a provided for this project. On August 27, 2026, a Request for Proposals was published and advertised on the City’s Planet Bids website. On September 3, 2026, two proposals were received. Evaluation of the proposals was based on the ability to fulfill the SB 1383 procurement compliance. Utilizing a product purchase contract was determined to be the most cost effective and overall best value for obtaining the procurement of recovered organic waste products. ENVIRONMENTAL FINDINGS Under Section 15301/Class 1, the proposed project is exempt from CEQA requirements when the project consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The key consideration is whether the project involves negligible or no expansion of use. The award of this Products Contract is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15301/Class 1 (Existing Facilities). The contract supports the continued operation of the City’s existing solid waste program by providing for the procurement of recovered organic waste products necessary to meet the City’s ongoing requirement under SB 1383. The action does not involve an expansion of the existing use. None of the exceptions to Categorical Exemptions outlined in the CEQA Guidelines, Section 15300.2 apply to the project. LOCAL PREFERENCE Local preference is not applicable. FISCAL IMPACT No general funds will be used to purchase these items. Funding is available in the approved FY 2027 Solid Waste Budget and provided by the SB1383 Local Assistance Grant (fund 4100-4114) Attachments: Environmental Assessment Notice of Exemption Sample Product Contract Bid Evaluation & Fiscal Impact Statement