FOR THE COUNCIL MEETING OF JANUARY 16, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Director of Utilities Shad S. Springer
SUBJECT: Adopt a Resolution Authorizing Use of California Department of Resources Recycling and Recovery Local Assistance Grant Funds Used for Reimbursement of Food Recovery -Related Equipment Purchases by Eligible Food Recovery Organizations in Santa Maria
Description:
The City Council will consider authorizing the use of grant fu nding from California’s Department of Resources Recycling and Recovery Local Assistance Grant received in 2022 to reimburse the cost of food recovery-related equipment purchases by eligible food recovery organizations within the City of Santa Maria.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution authorizing the use of California Department of Resources Recycling and Recovery Local Assistance Grant funds awarded to the City of Santa Maria to be used for the reimbursement of food recovery-related equipment purchases by eligible food recovery organizations within the City of Santa Maria.
BACKGROUND:
The Utilities Department provides integrated waste management services on behalf of the City of Santa Maria (City). This includes municipal solid waste, recyclables, and organic waste collection services for residential and commercial customers, operating the Santa Maria Regional Landfill (SMRL) at 2065 East Main Street, planning for the design, permitting, construction, and operations of the future Inte grated Waste Ma nagement Facility (IWMF) at Los Flores, and the implementation of solid waste recycling programs.
On January 4, 2022, the City Council adopted Ordinance No. 2021-10 adding Chapter 8- 21 to Title 8 of the Santa Maria Municipal Code regulating mandatory orga nic waste disposal reduction as required by California Senate Bill 1383 (SB 1383), the Short-Lived Climate Pollutant Act.
2 Under SB 1383, the City is required to develop an Edible Food Recovery (EFR) Program to aid in the statewide goal of recovering 20 p ercent of the edible food that is currently disposed of by 2025. To meet the mandated statewide goal, the law requires each jurisdiction to establish and monitor a robust food recovery program, to strengthen relationships between commercial edible food gen erators (CEFGs) and food recovery organizations (FROs) within local communities. It also requires certain CEFGs to send FROs the maximum amount of edible food they would otherwise dispose of.
Entity Type Description
FROs Food Recovery
Organizations
Organizations that take part in the recovery and public distribution of edible food
CEFG-
Tier 1
Commercial Edible
Food Generators
Supermarkets and grocery stores, wholesale food
vendors, food service providers, and food distributors
Date to begin donating excess food: January 1, 2022
CEFG-
Tier 2
Commercial Edible
Food Generators
Public schools, hotels, large restaurants, health
facilities, and large venues
Date to begin donating excess food: January 1, 2024
SB 1383 placed the CEFGs into two tiers to allow businesses and jurisdictions time to expand or build new food recovery infrastructure - and capacity - to donate foods that are harder to safely store and distribute.
As part of the City’s EFR Program, the City was required to identify all local FROs and CEFGs. The Utilities Department conducted meetings with FRO s located within Santa Maria city limits. The objective of each meeting was to determine how to increase EFR capacity and to identify opportunities to improve EFR efforts.
Based on those meetings, it was determined that four of the six identified FROs required resources and equipment to increase capacity and improve EFR efforts. The types of equipment requested by FROs included: commercial refrigerators and freezers; a vacuum sealer for preserving food; food transportation supplies such as insulated bags, thermal blankets, utility carts, and electric pallet jacks; digital floor scales; and food thermometers.
DISCUSSION:
In May 2022, the California Department of Resourc es Recycling and Recovery (CalRecycle) awarded the City a Local Assistance Grant of $152,451 to assist with SB 1383 program implementation. Eligible costs include reimbursing FROs for eligible EFR equipment and indirect costs such as administrative costs d irectly associated with the grant. The Utilities Department proposes to use the grant funding to reimburse equipment purchases by FROs to help increase both capacity and recovery efforts.
To use the grant funding in this manner, CalRecycle requires the Ci ty and each FRO to enter into a service agreement for the equipment purchases . Staff and CalRecycle will work to develop a service agreement that meets this requirement. FROs will be required 3 to provide proof of purchase and confirmation of equipment installation. Upon verification by the Utilities Department, the City will reimburse FROs for the equipment costs.
As part of the EFR program, the Utilities Department will also conduct annual audits in conjunction with the annual FRO inspections, as required by SB 1383, to verify that the equipment is being used and maintained in accordance with the service agreement.
Eligibility requirements to request a service agreement are:
1. FROs must be located within the City limits,
2. FROs must have sufficient space and a reasonable need for additional equipment, and
3. FROs must be in compliance with the submission of annual reports to the City as required under SB 1383.
Currently, the following four FROs meet the above eligibility requirements to receive funding reimbursement under the proposed program:
1. Catholic Charities
2. Central Coast Rescue Mission
3. Good Samaritan
4. Salvation Army
Fiscal Considerations
This program will be funded through the Local Assistance Grant awarded by CalRecycle to the City in May 2022. It is estimated that approximately $14 1,000 will be used to reimburse FROs for EFR equipmen t, leaving approximately $11,451 for City staff labor costs related to managing the reimbursements.
The City will not incur any maintenance, installation, or utility costs related to the reimbursement of the EFR equipment.
Alternative(s)
The City Council may direct staff not to utilize the grant funding in this manner and instead identify other uses for the funding. Staff recommends partnering with local agencies to meet the needs of the community by using the funding as proposed.
Impact to the City
Reimbursing FROs for the cost of EFR equipment will directly increase the City’s EFR capacity by assisting FROs with expanding their infrastructure and reducing the disposal of edible food. Additionally, improving the City’s EFR program will aid the City in maintaining compliance with SB 1383 requirements through the use of grant funds.
Impact to the Community
Increasing the EFR capacity of local FROs will enable more edible food to be recovered and provided to residents in need in Santa Maria.