REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Sign the Memorandum of Understanding Between the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee (TAC) Member Jurisdictions Establishing Ongoing Management and Operation of the Edible Food Recovery Program to Comply with the Requirements of Senate Bill 1383 (California’s Short-Lived Climate Pollutant Reduction Strategy)
Report
BACKGROUND
In 2016, California Senate Bill 1383 (SB 1383) was chaptered, setting goals to reduce disposal of organic waste in landfills in an effort to reduce greenhouse gas emissions and address food insecurity. California sends 11.2 billion pounds of food to landfills annually, some of which is still fresh enough to have been recovered to feed people in need, while 9.2 million Californians experienced food insecurity in 2020. To avoid disposal of edible food, in November 2020 the Department of Resources Recycling and Recovery (CalRecycle) developed regulations requiring jurisdictions to establish edible food recovery programs to recover (from certain large generators) the maximum amount of edible food that would otherwise be sent to landfills to feed people in need. The state goal is to reduce edible food going to landfill by 20%.
As of January 1, 2022, Tier 1 commercial edible food generators (listed below, as defined by CalRecycle) were required to arrange food recovery through a contract or written agreement with food recovery organizations or services that will collect or accept self-hauled edible food for food recovery:
• wholesale food vendors
• food service providers and distributors
• grocery stores over 10,000 square feet
• supermarkets
As of January 1, 2024, Tier 2 generators (listed below, as defined by CalRecycle) were required to donate their edible food:
• restaurants over 5,000 square feet
• hotels with 200 or more rooms and on-site food facilities
• local education agencies with on-site food facilities
• large venues/events
• health facilities with at least 100 beds and on-site food facilities
To take advantage of economies of scale and due to the cross-jurisdictional nature of food recovery operations, the Santa Clara County Recycling and Waste Reduction Commission Technical Advisory Committee (TAC) entered into an agreement in June 2021 with Joint Venture Silicon Valley (JVSV) to develop and manage the Santa Clara Countywide Edible Food Recovery Program (Program). The Program conducts the necessary outreach to the Tier 1 and Tier 2 generators, provides assistance, connects businesses with food recovery organizations, and gathers the required data for reporting back to CalRecycle. The Program is very successful and was even showcased by CalRecycle as an example of how other regions in California might want to organize.
EXISTING POLICY
Council Policy 3.2.4: Zero Waste
The City of Sunnyvale understands that the placement of materials in waste disposal facilities such as landfills, causes damage to human health, wastes natural resources, and transfers liabilities to future generations.
Council Policy 3.2 Solid Waste Management (3) Support cooperation between state and local jurisdictions on source reduction and recycling to meet state solid waste reduction goals.
ENVIRONMENTAL REVIEW
The action being considered is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that the edible food recovery program will not have a significant effect on the environment. In addition, the program implements the requirements of SB 1383. CalRecycle certified a program Environmental Impact Report in 2020 to support the adoption of the SB 1383 regulations, which is available on the CalRecycle website, https://www.calrecycle.ca.gov/laws/rulemaking/archive/2020/slcp.
DISCUSSION
Initially for FY 21-22, the Program was funded by the TAC using its funding from the Solid Waste Planning Fee (SWPF) of $0.78 per ton that is disposed of in a landfill. However, the statewide efforts to reduce organics in landfills began reducing disposal tonnage, which reduced the revenue collected through the SWPF. The combination of recovering more edible food from the generators, reduced disposal tonnage, and the subsequent decline in SWPF revenues necessitated a new source of funding.
In 2023 a single-year (effective from July 1, 2023, to June 30, 2024) Memorandum of Understanding (MOU) among the local public agencies in Santa Clara County to fund the cost of the Program was executed for a period of one year. The County of Santa Clara, as well as each city and town within the County, became responsible for paying a share of the program under the MOU. Sunnyvale used CalRecycle grant funding to cover the base program cost of $22,610 and contributed $16,718 for some optional services. This single-year MOU was executed by City Manager as awarding authority for agreements $250,000 or less.
To keep this successful Program operating, the TAC also determined that a long-term MOU would be the most appropriate governance document to continue the Program.
In 2023, the TAC drafted a long-term MOU, effective July 1st, 2024 (Attachment 1). The document and its terms shall remain in effect until the TAC terminates the agreement using the TAC Memorandum of Agreement’s organizational voting structure. The long-term MOU extends the commitment of participating jurisdictions to submit annual contributions to fund the mandated base program based on the number of generators in each jurisdiction and including sharing the cost of staff time at the County of Santa Clara as the TAC Fiscal Agent. Jurisdictions may also use the long-term MOU to contribute additional optional funds for Program enhancements that will be considered and approved by the TAC annually as part of its annual workplan and budget process. Santa Clara County, as the current fiscal agent, will issue invoices to the jurisdictions for their committed amounts, and collected funds will be redirected to the City of Morgan Hill in its capacity as the RWRC TAC Administrator and Contracting Agent annually. The overall Program budget will not increase by more than ten percent (10%) of the prior year’s Program budget without prior approval by the County of Santa Clara Recycling and Waste Reduction Commission during its annual budget approval process.
FISCAL IMPACT
Per the MOU, the TAC Administrator will prepare a two-year budget. For FY 2024-25, the City’s contribution will be $41,786, and for FY 2025-26 it will be $50,099. These and ongoing costs are budgeted in Program 14400 - Solid Waste Management in the Solid Waste Management Fund.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
Authorize the City Manager to sign the Memorandum of Understanding between the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee (TAC) member jurisdictions establishing ongoing management and operation of the edible food recovery program to comply with the requirements of Senate Bill 1383 (California’s Short-Lived Climate Pollutant Reduction Strategy).
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $250 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
A check or “Y” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use contract
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract
___ Labor or personal employment
_x_ General policy and legislative actions
Staff]
Prepared by: Shikha Gupta, Solid Waste Programs Division Manager
Reviewed by: Ramana Chinnakotla, Director, Environmental Services Department
Reviewed by: Tim Kirby, Finance Director
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. MOU for Countywide Food Recovery Program