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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: May 20, 2026
To: Honorable Mayor and City Council Members
From: Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Request to Amend the FY 2025/26 Operating Budget in Revenues and Expenditures by $729,283 to Appropriate
Forfeited Construction and Demolition (C&D) Waste
Diversion Deposits from the Special Deposit Fund (All
Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California Adopt Resolution No. 2026-055 approving an amendment to the FY 2025/26 operating budget in revenues and expenditures by $729,283 to appropriate forfeited Construction and Demolition (C&D) waste diversion deposits from the special deposit fund, and authorizing the Director of Finance and Management Services to make the necessary accounting entries.
City Manager's Comments
The City Manager recommends approval.
Executive Summary
The City of San Bernardino administers a Construction and Demolition (C&D) recycling program. As part of this program, the City collects diversion deposits from covered projects to encourage compliance with minimum waste diversion requirements.
Ordinance MC-1656 established that any diversion deposit that is not collected or an extension requested within seven hundred and thirty (730) days of payment shall be forfeited in full.
The proposed resolution would appropriate $729,283 in forfeited C&D diversion deposits into the Integrated Waste Management operating budget for C&D recycling program purposes. The action does not change the ordinance, increase fees, or authorize future budget amendments. Any future revenue or expenditure adjustments would return to the City Council as required.
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Background
Section 8.24.100 of the San Bernardino Municipal Code establishes the City’s C&D Recycling Program, including requirements, administrative fees, and diversion deposits for covered projects. Diversion deposits are collected at the time of permit issuance and serve as an enforcement mechanism to encourage compliance with State mandated diversion requirements. Ordinance MC-1656 established a definitive seven hundred and thirty (730) day deadline from the date of deposit payment for submission of a written request for refund or extension with supporting documentation.
Deposits not claimed within this period are forfeited in full and may be absorbed by the City to be used for purposes related to the C&D recycling program.
Discussion
Pursuant with Section 8.24.100, the C&D deposit funds are restricted and may be used only for purposes related to the C&D Recycling Program such as:
•Payment of eligible diversion deposit refunds.
•Administration of the C&D Recycling Program.
•Compliance monitoring, inspections, and enforcement activities. •Programs and infrastructure improvements intended to divert construction and demolition waste from landfill disposal.
By approving this budget amendment, it ensures available forfeited deposits may be utilized by the IWM Division to fund services and programs related to the C&D recycling program including:
•Staff and administrative costs.
•Inspection vehicles.
•Software.
•Consulting, fee schedule studies, and other professional services. •Payment of regulatory fines for non-compliance.
This action does not increase fees, impose new deposits, or expand forfeiture authority, but provides the fiscal mechanism to access and absorb forfeited deposits as it is allowed under the ordinance. Based on Table 1 deposit fund account history, there is $729,283 in available forfeited deposit funds from FY 2010-11 to FY 2020-21 fiscal year(s). IWM is requesting that the Department of Finance and Management Services reclassify $729,283 in forfeited deposit balances to the appropriate revenue and expenditure accounts in Fund 527. If the proposed reclassification is approved, there will be an $849,510 fund balance remaining in the trust account for existing C&D projects. Furthermore, it is requested that the amended operating budget be authorized for carryover into subsequent fiscal year budgets, until the funds are fully expensed or otherwise revoked. This action applies only to the $729,283 identified as forfeited deposits in this staff report. Remaining trust balances will continue to be held for existing C&D projects unless and until they’re eligible for refund, extension, forfeiture, or future Council action.
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Table 1: 772*2463 Account History
Revenues
(Credit)
Expenses/Charges
(Debit)
Change
during year
Year-End
Balance
FY 2010-11 $36,207.67 $70 $36,137.67 $36,137.67
FY 2011-12 $133,304.24 $43467.88 $89,836.36 $125,974.03 FY 2012-13 $183,015.63 $17,355.61 $165,660.02 $291,634.05 FY 2013-14 $127,322.39 $27,489.29 $99,833.10 $391,467.15 FY 2014-15 $251,694.45 $15,994.15 $235,700.30 $627,167.45 FY 2015-16 $190,802.91 $23,060.89 $167,742.02 $794,909.47 $470,468.52 $324,440.95
FY 2016-17 $264,642.79 $26,349.48 $238,293.31 $562,734.26 FY 2017-18 $272,719.62 $45,933.69 $226,785.93 $789,520.19 FY 2018-19 $252,195.39 $25,437.86 $226,757.53 $1,016,277.72 FY 2019-20 $397,110.47 $85,973.42 $311,137.05 $1,327,414.77 FY 2020-21 $295,781.88 $44,402.44 $251,379.44 $1,578,794.21 FY 2020-21 $729,283.46 $849,510.75
2021-2025 Strategic Targets and Goals
This item is consistent with Key Strategic Target and Goal No. 1e: Improved Operational & Financial Capacity - Minimize risk and litigation exposure. This resolution grants formal permission to appropriate forfeited C&D recycling deposits and ensure they are used exclusively for program related purposes.
Fiscal Impact
There is no impact on the City’s General Fund associated with this item.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California Adopt Resolution No. 2026-055 approving an amendment to the FY 2025/26 operating budget in revenues and expenditures by $729,283 to appropriate forfeited Construction and Demolition (C&D) waste diversion deposits from the special deposit fund, and authorizing the Director of Finance and Management Services to make the necessary accounting entries.
Attachments
Attachment 1 Resolution 2026-055
Attachment 2 Ordinance No. MC-1656
Attachment 3 Analysis of Fund 772-463 C&D Waste Deposit Trust 3 2
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Ward:
All Wards
Synopsis of Previous Council Actions:
December 3, 2025 Adopt Ordinance No. MC-1656 Amending Section 8.24.100 of Chapter 8.24 of Title 8 of the San Bernardino Municipal Cod, Relating to the Construction and Demolition Debris Recycling Program (All Wards).
CC: Eric Levitt, City Manager