Adopt Resolution 2019-080, recognizing unanticipated revenue from the CalRecycle FY 2019-2020 Beverage Container Recycling Grant and approving a budget amendment of $120,364 to the Fiscal Year 2019-2020 Adopted Budget

Adopt Resolution 2019-080, recognizing unanticipated revenue from the CalRecycle FY 2019-2020 Beverage Container Recycling Grant and approving a budget amendment of $120,364 to the Fiscal Year 2019-2020 Adopted Budget.

On August 7, 2018, the City submitted a grant application for the CalRecycle Beverage Container Grant Program. The application requested $120,364 in funding to expand recycling opportunities by providing up to 50 new dual recycling/trash containers where only undersized, trash-only containers are currently located.  The use of dual containers will increase the capacity of the City’s current public litter containers and will assist the City in meeting the State’s 75% waste diversion goal by 2020.  

While the City’s application was scored highly, the City did not receive a grant in Fiscal Year 2018-2019 based upon the number of applications submitted and the limited amount of State funding. However, the City’s application was approved for funding on March 18, 2019 as part of the following fiscal year grant cycle. Subsequently, the City received a grant agreement from the State on September 5, 2019 and is in the process of executing the documents.  The grant period will be from November 2019 to June 30, 2022. This item is on the Council’s agenda to authorize staff to make an adjustment to the current fiscal year’s operating budget as the grant was not included within the Fiscal Year 2019-2020 Adopted Budget.

The Fiscal Year 2019-2020 Adopted Budget will increase by $120,364.  The proposed budget amendment will recognize the grant as unanticipated revenue while also adjusting the operating budget within the Public Works Department by the same amount.  The increase to the appropriation limit within the Public Works materials and supplies account will allow the Department to purchase the containers without using funds budgeted for other purposes.  Since this is a reimbursement-based grant, the City is required to incur the costs of the containers first and then be reimbursed from the State, up to the amount of the grant, for eligible purchases.

Council authorized the submittal of grant applications to CalRecycle on September 10, 2018 and authorized the City Administrator to execute all grant documents necessary to implement the approved grant project (Resolution 2019-096).  Council adopted the Fiscal Year 2019-2020 Adopted Budget on June 4, 2019 (Resolution 2019-043).