REPORT TO COUNCIL
SUBJECT
Title
Approve Budget Modification No. 25 to Appropriate $412,829 of Senate Bill 1383 Local Assistance Grant Program Funds
Report
GRANT SUMMARY
On February 26, 2024, the City was awarded a $412,829 grant to implement Senate Bill 1383 (SB1383). The grant term is from February 26, 2024, to April 1, 2026 (Attachment 1). SB1383 sets methane emission reduction targets for California (Lara, Chapter 395, Statutes of 2016) to reduce emissions of short-lived climate pollutants (SLCP). Local jurisdictions must reduce organic waste disposal by 50% by 2020 (already achieved) and 75% by 2025; and recover currently disposed surplus food by at least 20% by 2025.
The California Department of Resources Recycling and Recovery (CalRecycle) administered a non-competitive grant program with $90 million of funding to local jurisdictions to assist with the implementation of SB1383. The funds were distributed with a base award amount of $75,000 and remaining based on per capita calculations using the Department of Finance’s January 2023 population statistics. Staff submitted an application in November 2023.
The grant funds received by the City ($412,829) will be used as follows:
• $50,000 for a two-year subscription for a data management system (Recyclist) that tracks outreach and fulfills reporting requirements for SB 1383.
• $90,000 will fund City’s portion of the edible food recovery program to ensure the City is meeting its SB1383 food recovery requirements.
• $26,000 will fund procurement of mulch and other recycled organic waste products (ROWP) and application to city facilities and satisfy another mandate under SB1383.
• The remaining funds (~$247,000) will be used for outreach strategies to increase participation by multi-family dwelling residents in the City’s food scraps recycling program.
These programs are already budgeted in Solid Waste Management program operating budget (14400) and the Zero Waste Strategic Plan project budget (830910). The grant funding will help offset these costs.
The Solid Waste Division in the Environmental Services Department is responsible for the management of the grant.
Granting Agency
California Department of Resources Recycling and Recovery (CalRecycle)
EXISTING POLICY
Council Policy 7.1.5 Donations, Contributions and Sponsorships:
The City Manager may apply for grants of any dollar amount but shall notify the Council when grants are being pursued. Council approval of a budget modification to appropriate grant monies is required before funds can be expended by staff. Such a budget modification shall include the use to which the grant would be placed; the objectives or goals of the City which will be achieved through use of the grant; the local match required, if any, plus the source of the local match; any increased cost to be locally funded upon termination of the grant; and the ability of the City to administer the grant. For grants under the amount of $5,000 that do not have any external reporting requirements or any local match requirement, Council approval of a budget modification is not required. The City Manager is authorized to accept and administratively appropriate the grant funds.
This grant does not meet all of the criteria to be administratively appropriated by the City Manager; therefore, a budget modification is required. Grant funds from CalRecycle have external reporting requirements and fall under the federal single audit guidelines.
Pursuant to Sunnyvale Charter Section 1305, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another, or to appropriate available revenue not included in the budget.
ENVIRONMENTAL REVIEW
The budget modification is not a “project” with the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment. The specific projects this grant will fund are state-mandated programs exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activities may have a significant effect on the environment.
FISCAL IMPACT
Funding Source
CalRecycle SB 1383 Local Assistance Grant Program
Required Local Match
None
Increased Cost To City Upon Grant Termination
None
Budget Modification No. 25 has been prepared to appropriate CalRecycle SB1383 Local Assistance Grant funds in the amount of $412,829 for implementing SB1383 to a new project.
Budget Modification No. 25
FY 2023/24
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Solid Waste Fund |
|
|
|
|
State Grant |
|
|
|
|
CalRecycle Senate Bill 1383 Local Assistance Grant |
$0 |
$412,829 |
$412,829 |
|
|
|
|
|
|
|
|
|
|
|
New Project - CalRecycle SB 1383 Local Assistance Grant |
$0 |
$412,829 |
$412,829 |
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
Approve Budget Modification No. 25 to appropriate $412,829 of CalRecycle SB 1383 Local Assistance Grant Program funds.
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 or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract
___ Labor or personal employment contract
_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, Director of Finance
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. CalRecycle OWR4 grant award notification