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CC - CONSENT ITEM: Approval of a Direct Service Provider Agreement with Los Angeles County Sanitation District No. 2 for Recovered Organic Waste Product (ROWP) in an Amount Not-to-Exceed of $55,000 Annually.
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Meeting Date: December 9, 2024
Contact Person/Dept.: Sean Singletary/Public Works Environmental Programs & Operations Division
Phone Number: (310) 253-6457
Fiscal Impact: Yes [X] No [ ] General Fund: Yes [ ] No [X]
Attachments: Yes [ ] No [X]
Public Notification: E-Mail: Meetings and Agendas - City Council (12/04/2024)
Department Approval: Yanni Demitri, Public Works Director / City Engineer (11/08/2024)
RECOMMENDATION
Staff recommends the City Council approve a Direct Service Provider Agreement with Los Angeles County Sanitation District No. 2 for recovered organic waste product in an amount not-to-exceed $55,000 annually.
BACKGROUND
California Senate Bill (SB) 1383 is a statewide effort to reduce emissions of short-lived climate pollutants by reducing organic waste disposal to 50% by 2020 and 75% by 2025. Organic waste in landfills emits 20% of the state’s methane, a climate super pollutant 84 times more potent than carbon dioxide.
Beginning January 1, 2022, SB 1383 requires cities and counties to procure annually a quantity of recovered organic waste products (ROWP) to meet their annual procurement target based on population. These procurement requirements will strengthen California’s green, self-sustaining economy. Demand for these products will drive infrastructure investment and create new green collar jobs in the state. Jurisdictions can meet this target by procuring any combination of ROWP such as compost, mulch, or renewable energy from anaerobic digestion and electricity from biomass conversion.
In October 2024, the Los Angeles County Sanitation District (LACSD) No. 2 released a Request for Offers (RFO) seeking offers from jurisdictions, waste haulers, member agencies, and interested parties seeking SB 1383-eligible ROWP as a book-and-claim transaction. This initiative aligns with the compliance requirements of SB 1383 procurement regulations. As part of LACSD’s wastewater treatment and Food Waste Recycling Program, LACSD No. 2 utilizes anaerobic digestion to produce renewable biogas. This biogas is subsequently converted into renewable electricity to power the operations of LACSD No. 2’s A.K. Warren Water Resource Facility in Carson, California.
DISCUSSION
Based on its population, Culver City’s procurement target under SB 1383 is approximately 3,200 tons of organic waste product per year. Complying with this target would require the City to purchase either 1,850 tons of compost annually or 3,200 tons of mulch annually, considerably more than the City currently utilizes. In order to meet Culver City’s SB 1383 target, other methods of compliance are permitted. For example, the City can buy renewable electricity credits from LACSD No. 2. To pursue that alternative method of compliance, the City submitted a bid in response to LACSD No. 2’s RFO. LACSD accepted that bid and has asked the City to agree to the Direct Service Provider Agreement. This proposed transaction will allow the City to meet 50% of its SB 1383 target by purchasing renewable electricity credits from LACSD No. 2. The proposed agreement would be in effect through December 2025 but could be renewed for two additional one-year terms. Per Culver City Municipal Code 3.07.055.F., the purchase of equipment, goods, supplies and services from a governmental entity such as LACSD is exempt from the City’s bidding requirements. Staff recommends the City Council approve entering into the Direct Service Provider Agreement with LACSD No. 2.
FISCAL ANALYSIS
The Adopted Budget for Fiscal Year 2024-2025 includes sufficient funds to procure the first year of credit in Account No. 20260410.619800 (Transfer Station Administration - Other Contractual Services) in the Public Works section of the budget book on page 433. Subsequent years of the agreement would be included in future fiscal year budgets.
ATTACHMENTS
None.
MOTIONS
That the City Council:
1. Approve a Direct Service Provider Agreement with Los Angeles County Sanitation District No. 2 for recovered organic waste Product (ROWP) in an amount not-to-exceed $55,000.00 annually; and
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.