REPORT TO THE CITY COUNCIL FROM: PAUL AMICO, Director Department of Public Utilities BY: JAMES VERROS, Assistant Director Department of Public Utilities - Solid Waste Management Division SUBJECT ..Title Approve the award of a Requirements Contract to California Wood Recycling, Inc. of Oxnard, CA through December 4, 2026 with three optional one-year extensions for the purchase of recycled mulch as required by California State Senate Bill 1383 procurement requirement for recovered organic waste products in an amount not to exceed $329,926.00 per year, and authorize the Director of Public Utilities, or designee, to sign the contract on behalf of the City of Fresno (Bid File 12600921). (Citywide) ..Body RECOMMENDATION Staff recommends City Council approve the award of a Requirements Contract to California Wood Recycling, Inc. DBA Agromin of Oxnard, CA through December 4, 2026 with three optional one-year extensions for the purchase of recycle mulch as required under Senate Bill (SB) 1383 procurement requirements for Recovered Organic Waste Products (ROWP) in an amount not to exceed $329,926 per year, 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/compost products and/or energy credits derived from using recycled mulch/compost products 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 tons of organic waste. One ton of Mulch is equivalent to 650 kilowatt-hours (kWh) of electricity from biomass conversion. To achieve full procurement compliance for 2025 the City must purchase 43,742 tons of Recovered Organic Waste Products (ROWP). 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 Products (ROWP) are included in this legislation, and starting January 1, 2022, SB 1383 required jurisdictions to meet an annual procurement target of recovered organic waste products based on population. On December 20, 2024, the City awarded a sole source purchase agreement with Rio Bravo Rocklin for the purchase of 24,448 Procurement Compliance Attributes (PCA) tons for the total cost of $171,136. The Rio Bravo Rocklin agreement expired after the purchase and a new requirements contract is needed for the purchase of the 2025 procurement requirement. Entering a multi-year agreement will allow the City to efficiently and cost-effectively meet SB 1383 requirements for the next three years. In accordance with Fresno Municipal Code Chapter 4, Article 1, and Administrative Order 6-28, the Department of Public Utilities, Solid Waste Management Division conducted a competitive process for selecting a provider for this project. On November 12, 2025, a Request for Proposals (RFP) was published and advertised on the City's PlanetBids website. On November 21, 2025, seven proposals were received. Evaluation of the proposals were based on the ability to fulfill the SB1383 procurement compliance. Utilizing a requirements agreement was determined to be the most cost-effective and overall best value for obtaining the procurement of recovered organic waste products. The Purchasing Division and City Attorney's office has approved the requirements agreement and recommends Council approval. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, this requirements contract is not a 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 2026 Solid Waste Budget and provided by the SB1383 Local Assistance Grant (fund 4100-4114). Attachments: Bid Evaluation Form and Report Sample Requirements Contract Attachment A: Revised Insurance Requirements