Agenda Item No: J.2
AGENDA REPORT
DATE: June 3, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-77 PW Increase in Appropriations to the Fiscal Year 2024 -2025 Budget for the Solid Waste Fund
Authorizing an Increase in Appropriations to the Fiscal Year 2024-2025 Budget for the Solid Waste Fund and Authorizing an Update to the Fiscal Year 2024-2025 Budget
Funding Source: $232,326; Solid Waste Fund
Contact: Corey Beavers, (707) 428-7528
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
Solid Waste Fund 156 encompasses various solid waste programs and grants that the City manages to ensure compliance with state regulations. The Public Works’ Solid Waste Division obtains grant funding from the California Department of Resource s Recycling and Recovery (CalRecycle) and receives franchise payments from the City’s waste hauler, Republic Services, to finance these programs. These two funding sources, CalRecycle and Republic Services, comprise the majority of the Solid Waste program’s revenue and are separate from the General Fund. Each grant and special program is assigned a unique project code, and the funds received are allocated to specific accounts.
Due to an administrative oversight, some planned expenses for successfully awarded grant funds and annual franchise fees were not budget ed in the previously approved budget for fiscal year (FY) 2024-2025. As a result, these funds are unavailable for their intended programs, despite having a sufficient fund balance. Staff are requesting a total increase in appropriation s of $232,326 to the FY 2024 -2025 budget for the respective programs in Fund 156 , ensuring legislative compliance and facilitating the expenditure of these dedicated funds.
DISCUSSION
The Solid Waste Division receives grant funding from CalRecycle and annual payments through the City’s franchise agreement with Republic Services to support various solid waste programs that ensure compliance with state regulations. To help jurisdictions meet these regulations, CalRecycle offers various grants for which the City applies . These grants include the Used Oil Payment Program (OPP) , the City/County Payment Program (CCPP) , and th e Senate Bill 1383 Local Assistance Grant Program (OWR). In addition to these grants, the Solid Waste Division also collects franchise fees and payments as specified in the franchise agreement with Republic Services. These payments include the Vehicle Road Impact Fee, the SB 1383 Reporting Program Contribution, and the Edible Food Recovery (EFR) Program Contribution. Together, these grant funds and franchise fees represent the majority of the revenue for the Solid Waste Program, enabling it to operate without relying on the General Fund.
Due to an administrative oversight, some planned expenses for the grant funds and franchise fees for FY 2024-2025 were not budgeted, preventing the funds from being utilized for multiple projects, despite their availability. The impacted accounts include: Edible Food Recovery (Project 10370); Senate Bill 1383 (SB 1383) Local Assistance Grant Organic Wast e Recycling 1 Project 10373); Household Hazardous Waste Program (Project 10374); City/County Payment Program FY 2022-2023 (Project 10467); Used Oil Payment Program Cycle 14 (Project 10596); Senate Bill 1383 Local Assistance Grant OWR 4 (Project 10604); and the City/County Payment Program Cycle FY 2023-2024 (Project 10605). A brief description of each project and requested budget adjustment as follows:
Edible Food Recovery Program (EFRP) - Project 10370:
Senate Bill 1383 regulations require jurisdictions to establish an EFR P to collect food that would otherwise be discarded. The City entered into an agreement with the County to administer the EFRP. Funding for this program is provided annually through the City’s franchise agreement with Republic Services and is deposited into Project 10370. For FY 2024-2025, the City received $41,182. Staff requests an increase in appropriations of $45,000 for the FY 2024-2025 project budget to pay for planned expenses. The budget increase will be covered by the FY 2024 -2025 Republic Service annual payment and the available fund balance.
SB 1383 Local Assistance Grant Organic Waste Recycling 1 (OWR1) - Project 10373:
The SB 1383 Local Assistance Grant Program OWR1 supports the implementation of organic waste regulations. The City was awarded $167,333 for this purpose, which was used for educational campaigns, waste receptacles, and compost procurement. Of the awarded amount, $87,765 was budgeted for expenses in FY 2024-2025. Staff requests an increase in appropriations of $18,830 to the FY 2024-2025 project budget to pay for planned expenses. The budget increase will be covered by the SB 1383 grant award.
Household Hazardous Waste Program (HHW) - Project 10374:
The City receives annual contributions from the Fairfield -Suisun Sewer District (FSSD) through a memorandum of understanding (MOU) to support the HHW Program. These funds are passed through to Republic Services for the collection and disposal of HHW. For FY 2024-2025, the City
received $57,301, and the project was budgeted at $51,000, leaving a remaining unbudgeted balance of $6,301. Staff requests an increase in appropriations of $6,301 to the FY 2024-2025 project budget to pay for planned expenses . The budget increase will be covered by the remaining FSSD contribution.
City/County Payment Program (CCPP) FY 2022-2023 - Project 10467:
CalRecycle offers the CCPP to help maintain an 80% recycling rate for beverage containers. The City received $30,112 for FY 2022-2023 and deposited these funds into Project 10467. Staff requests an increase in appropriations of $16,657 to the FY 2024-2025 project budget to pay for planned expenses. The budget increase will be covered by the CalRecycle payment.
Used Oil Payment Program (OPP) Cycle 14- Project 10596:
The OPP supports activities related to the collection and recycling of used oil and oil filters. The City was awarded $16,528 for Cycle 14, which was deposited into Project 10596. Staff requests an increase in appropriations of $16,528 to the FY 2024-2025 project budget to pay for planned expenses. The budget increase will be covered by the total OPP award.
SB 1383 Local Assistance Grant Organic Waste Recycling 4 (OWR4) - Project 10604:
CalRecycle offered the SB 1383 Local Assistance Grant Program OWR4 to help jurisdictions implement organic waste regulations. The grant term concludes in March 2026, and the City was awarded $317,573 to use for various program elements, including educational campaigns, staffing, and compost procurement. Staff requests an increase in appropriations of $118,010 to the FY 2024 -2025 project budget to pay for planned expenses . The budget increase will be covered by the CalRecycle SB 1383 grant.
City/County Payment Program FY 2023-2024 - Project 10605:
The CCPP FY 2023-2024 grant term is from March 2025 to March 2026. Grant funds will support Solano Resource Conservation District’s Watershed Explorer program and purchase water refill stations. The City was awarded $30,206, and staff requests an increase in appropriations of $11,000 to the FY 2024-2025 project budget to pay for planned expenses. The budget increase will be covered by the CCPP grant.
The requested increases in appropriations are essential to ensure that the City remains compliant with state regulations, efficiently manages the programs, and uses the designated funds as intended. Staff requests approval for these one -time budget adjustments to ensure that these critical programs can proceed as planned and fulfill their objectives for the current fiscal year.
FINANCIAL IMPACT
The total authorization for an increase in appropriations to the FY 2024-2025 budget for the Solid Waste Fund (Fund 156) is $232,326 for the following projects: Project No. 10370 - Solid Waste EFR Fund ($45,000), Project No. 10373 - Senate Bill 1383 Local Assistance Grant Fund OWR 1 ($18,830); Project No. 10374 - HHW Fund ($6,301); Project No. 10467 - CCPP FY 2022 -2023 ($16,657); Project No. 10596 - OPP Cycle 14 ($16,528), Project No. 10604 - Senate Bill Local Assistance Grant Fund OWR4 ($118,010), and Project No. 10605 - CCPP 23/24 ($11,000). This
action corrects the administrative oversight and allocates funds to the appropriate projects from the overall Solid Waste Fund (Fund 156) that holds all the grant money. No other funds are affected.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may choose to postpone the requested action and reconvene with staff for alternative funding sources.
COORDINATED WITH
Finance Department
STAFF CONTACT
Corey Beavers, Management Analyst II
(707) 428-7528
[email protected]
ATTACHMENTS
Attachment 1: Proposed Resolution