3.-A. ID 25-1686 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)
The City of Fresno should choose the lowest-risk option that has been offered at the same price. Respectfully, this award would put the City at material risk of not achieving SB 1383 compliance in 2025. CalRecycle’s guidance is clear that paying for mulch alone does not count, the product must be used or given away by 12/31 to meet its procurement target.
For context, this agreement would require approximately 45,000 tons of mulch to be used or given away by December 31 — more than 2,250 truckloads in roughly two weeks, including holidays.
The City received noticed from CalRecycle enforcement in October 2025 to prepare for an upcoming evaluation, including its procurement policies.
DTE Stockton has matched the price and provides immediate compliance through Procurement Compliance Attributes, the same approach Fresno relied on in 2024. This is the only zero-risk path to 2025 compliance. The credits are ready for immediate transfer and fully vetted for compliance. We respectfully request that Council direct staff to procure from the lowest responsive bidder, DTE Stockton.
This contract will not result in SB 1383 compliance for the City of Fresno for 2025. CalRecycle's Frequently Asked Questions notes that "the production, purchase, or receipt alone of an eligible recovered organic waste product does not contribute to meeting a jurisdiction’s procurement target. It is the amount of recovered organic waste products that is procured and either used or donated that counts towards a jurisdiction’s procurement target." If the mulch isn't received and used or donated in 2025, the procurement compliance target will not be met.
The City of Fresno should choose the lowest-risk option that has been offered at the same price. Respectfully, this award would put the City at material risk of not achieving SB 1383 compliance in 2025. CalRecycle’s guidance is clear that paying for mulch alone does not count, the product must be used or given away by 12/31 to meet its procurement target.
For context, this agreement would require approximately 45,000 tons of mulch to be used or given away by December 31 — more than 2,250 truckloads in roughly two weeks, including holidays.
The City received noticed from CalRecycle enforcement in October 2025 to prepare for an upcoming evaluation, including its procurement policies.
DTE Stockton has matched the price and provides immediate compliance through Procurement Compliance Attributes, the same approach Fresno relied on in 2024. This is the only zero-risk path to 2025 compliance. The credits are ready for immediate transfer and fully vetted for compliance. We respectfully request that Council direct staff to procure from the lowest responsive bidder, DTE Stockton.
This contract will not result in SB 1383 compliance for the City of Fresno for 2025. CalRecycle's Frequently Asked Questions notes that "the production, purchase, or receipt alone of an eligible recovered organic waste product does not contribute to meeting a jurisdiction’s procurement target. It is the amount of recovered organic waste products that is procured and either used or donated that counts towards a jurisdiction’s procurement target." If the mulch isn't received and used or donated in 2025, the procurement compliance target will not be met.