FOR THE COUNCIL MEETING OF FEBRUARY 1, 2022
COUNCIL AGENDA REPORT
TO:
FROM:
SUBJECT:
City Council
City Manager
Prepared by: Director of Utilities
AUTHORIZING THE SUBMISSION OF APPLICATIONS TO THE
DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY
("CALRECYCLE") FOR GRANT AND PAYMENT PROGRAMS
RECOMMENDATION:
That the City Council adopt a Resolution authorizing the submission of applications to the Department of Resources Recycling and Recovery ("CalRecycle") for grant and payment programs.
BACKGROUND:
The City of Santa Maria ("City") is eligible for annual, non-competitive grant programs through CalRecycle. Historically, those grants have included mandatory recycling programs required by CalRecycle, such as the Used Oil Payment Program, the Beverage Container Recycling Program, and the Curbside Recycling Program. These three grants provide approximately $45,000 in annual funding to help offset the expenses of running these mandatory programs.
On January 1, 2022, Senate Bill 1383, the Short -Lived Climate Pollutant Reduction Act of 2016 ("SB 1383"), also known as the organics recycling program, went into effect. The intent of the legislation is to substantially reduce greenhouse gas emissions from landfills.
SB 1383 directs CalRecycle to divert 75 percent of methane -producing organics from landfills and recover 20 percent of edible food that would otherwise be disposed for human consumption by 2025.
As a jurisdiction, the City is responsible for the implementation and enforcement of SB 1383 as outlined in Santa Maria Municipal Code Chapter 8-21. The City's requirements are numerous and complex, but the responsibilities related to recycling collection include providing mandatory organic waste curbside collection services to all residents and businesses and implementation of a collections program for all organic waste, including food waste, wood waste, manure, fibers, etc. To assist in the expenses of this new mandatory program, CalRecycle has instituted a new non-competitive grant program, the SB 1383 Local Assistance Grant Program ("Grant").
DISCUSSION:
Eligible uses for the Grant include personnel, consultants, vehicles/trucks, safety equipment, bins, capacity planning, collection, edible food recovery, community education and outreach, program enforcement, procurement of recovered/recycled organic products, and recordkeeping expenses.
There is a single application period for Grant funding and applicants must submit an application by February 1, 2022, to be considered for first- and second -round funding.
CalRecycle estimates that the City will be eligible for $140,000 in first -round funding. If awarded, the Utilities Department intends to use the funding to offset costs associated with the implementation of SB 1383, such as the procurement of three automated refuse trucks for organics recycling collection.
The application for the Grant requires a Resolution authorizing the City Manager, or designee, to apply for the Grant. The application deadline for the Grant and similar grants from CalRecycle are generally short and it can be challenging to attain the required authorization prior to the grant deadline. To address this issue, the Resolution associated with this Grant authorizes Staff to pursue other CalRecycle grants, and accept any awards, for a period of five years from 2022 through 2027 for those grants that do not require in -kind or cash matching from the City. This will allow Staff to act swiftly when pursuing new grant opportunities to offset fiscal impacts to City ratepayers.
Alternatives
1. City Council may elect not to pursue this Grant, which will eliminate the opportunity for another source of funding to offset expenses for implementation of SB 1383.
This option will impact City ratepayers as revenues derived from rates will be the only funds available to pay those expenses.
2. City Council may direct Staff to limit the Resolution exclusively to the SB 1383 Local Assistance Grant Program. Under this option, Staff will be required to return to City Council for approval of future CalRecycle grant opportunities and subsequent acceptance of grant awards. This will impact the City's ability to act swiftly when other future funding opportunities present and lead to increased Staff time for the application and award of ongoing annual grant programs, such as the Used Oil Payment Program, the Beverage Container Recycling Program, and the Curbside Recycling Program.
Fiscal Considerations
The full costs to the City to implement SB 1383 are not known. The cost to fund just the purchase of three refuse collection vehicles to meet SB 1383 requirements is estimated at $1,350,000, well above the estimated value of the Grant award from CalRecycle. There is no in -kind or cash matching required by the City as a condition of accepting the Grant award. If the Grant application is denied by CalRecycle, Solid Waste Enterprise Funds will be the only available source of funds to meet the requirements of SB 1383. 2 MICHELLE RUIZ
Director of Utilities
Impact to the Community
The use of grant funding offsets costs borne by City ratepayers.
Impact to the City
Securing grant funding demonstrates the Utilities Department's commitment to the City's Mission Statement and Organizational Value of Fiscal.
3 RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,
CALIFORNIA, AUTHORIZING THE SUBMISSION OF APPLICATIONS TO DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY ("CALRECYCLE")
FOR GRANT AND PAYMENT PROGRAMS
WHEREAS, Public Resources Code Sections 48000 et seq., 14581, and 42023.1(g), authorizes the Department of Resources Recycling and Recovery ("CalRecycle") to administer various grant and payment programs in furtherance of the State of California's efforts to reduce, recycle, and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and
WHEREAS, in furtherance of this authority, CalRecycle is required to establish procedures governing the administration of the payment programs; and administration of the application, awarding, and management of the grant programs; and WHEREAS, CalRecycle's procedures for administering payment and grant programs require, among other things, an applicant's governing body to declare by Resolution certain authorizations related to the administration of the payment and grant program.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, as follows:
1. The City Manager, or designee, on behalf of the City of Santa Maria, is authorized to submit applications to CalRecycle for any and all grant and payment programs offered that do not require in -kind or cash matching for a period of five years from 2022 through 2027, including but not limited to the Senate Bill 1383 Local Assistance Grant Program; and
2. The City Manager, or designee, is authorized and directed to receive and appropriate funds and establish the necessary revenue and expenditure accounts for any grant awards; and
3. The Chief Deputy City Clerk is authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
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PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 1St day of February 2022.
ATTEST:
Chief Deputy City Clerk
Mayor
r
ity Manager
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