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 Division
SUBJECT
Title
Reject all bids for the purchase of recycled mulch as required by California State Senate Bill 1383 procurement requirement for recovered organic waste products (Bid File 12600921).
Body
RECOMMENDATION
Staff recommends that City Council reject all bids for the purchase of recycled mulch as required by California State Senate Bill 1383 (SB 1383) procurement requirement for recovered organic waste products throughout the City of Fresno (City).
EXECUTIVE SUMMARY
Staff recommends that City Council reject all bids for the purchase of recycled mulch. 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 tons of recycled organic mulch or compost, or an equivalent amount of energy credits. One ton of recycled organic material 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), 28,432,300 kWh of electricity from biomass conversion, or an equivalent combination of the two. The objective is 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 solid waste stream. Requirements regarding the procurement of 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. To achieve full procurement compliance for 2025 the City must purchase 43,742 tons of ROWP, 28,432,300 kWh of electricity from biomass conversion, or an equivalent combination of the two for calendar year 2025.
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, necessitating a new requirements contract for the purchase of the 2025 procurement requirement. Purchasing either recycled organic products or energy credits is required annually. Entering a multi-year agreement will allow the City to be efficient and cost-effective by meeting SB 1383 requirements annually for the term of the agreement.
The Notice Inviting Bids was advertised on Planet Bids and posted on the City’s website on November 12, 2025. The requirements contract specifications were distributed to sixteen (16) prospective bidders and posted at three (3) building exchanges. Seven (7) electronic bid proposals were received and publicly opened on November 21, 2025, with net bid amounts ranging from $329,926.00 to $3,081,203.13. The apparent lowest responsive and responsible bid was submitted by Agromin dba California Wood Recycling, Inc., in the amount of $329,926.00. Other bidders were DTE Engery Services Inc, dba DTE Stockton, LLC. in the amount of $350,000.00, West Coast Waste, Inc, in the amount of $355,523.44, IHI Power Services Corp. dba Rio Bravo Rocklin, in the amount of $379,225.00. Kochergen Farms Composting, Inc. in the amount of $900,659.38, Synagro-WWT. Inc., in the amount of $1,151,895.94, and Oliveria Enterprises, Inc., $3,081,203.13.
The bid specifications included a single bid item for purchase of recycled organic products or energy credits and did not specifically specify that the purchase needed to be completed by December 31, 2025. The absence of a specified 2025 compliance deadline prevented staff from making a direct comparison between the bids. Without a clearly defined compliant solution, the bids submitted varied significantly in scope and approach, making it difficult to establish a direct comparison. This prevented staff from assessing bids against consistent criteria and ultimately impacted the ability to determine the best value and a compliant option. The procurement will be rebid with revised bid specifications that will permit the City to determine the best value for the purchase.
Staff recommends that City Council reject all bids for the SB 1383 procurement requirement for recovered organic waste products.
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 to the purchase of recycled organic products or energy credits.
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.)
Attachment:
SB 1383 Procurement Document File #12600921