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SR 02-09-2021 3B City Council Report City Council Meeting: February 9, 2021 Agenda Item: 3.B 1 of 3 To: Mayor and City Council From: Rick Valte, Acting Public Works Director, Public Works, Resource Recovery & Recycling Subject: Adoption of Resolution Authorizing Participation in the Beverage Container Recycling City/County Payment Program Recommended Action Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to submit and execute applications, agreements, and annual reports for the purpose of securing Beverage Container Recycling City/County Payment Program funds offered by the State of California Department of Resources Recycling and Recovery (CalRecycle) for a five-year period to implement new or enhance existing programs to clean-up the waste stream that includes beverage containers. Summary The City of Santa Monica has an ongoing commitment to sustainability with an overall goal of achieving 95 percent landfill diversion by 2030. As part of the efforts to achieve this diversion rate, the City has applied for funding for beverage container recycling and litter reduction programs from the California Department of Resources Recycling and Recovery’s (CalRecycle’s) Beverage Container City/County Recycling Program. The funding from CalRecycle, which ranges between $23,159 to $24,685 each year, allows the City to purchase machines which encourage beverage container recycling and create educational materials to encourage residents and businesses to recycle. From the first payment award in FY 2005-06 through FY 2019-20, the City has received payment awards totaling $347,418, with the average award of $23,161. For the City to continue to apply for and receive funding, a Council adopted resolution (Attachment A) acknowledging CalRecycle’s Beverage Container Recycling City/County Payment Program must be submitted to the California Department of Resources Recycling and Recovery. 3.B Packet Pg. 13 2 of 3 Discussion In 1987, the California Beverage Container and Litter Reduction Act (the Act) was implemented to encourage recycling and reduce litter. CalRecycle, the agency responsible for administering the program, distributes payments each year to cities and counties to promote beverage container recycling and litter reduction activities, with the overall goal of reaching and maintaining an 80 percent recycling rate for all California Refund Value (CRV) beverage containers - aluminum, glass, plastic and bi-metal. Since 2005-06, the City has applied for, received, and fully spent an annual average payment award of $23,161 from CalRecycle’s City/County Beverage Payment Program, for projects implemented to assist the State in reaching the 80 percent recycling rate. The most recently reported recycling rate for CRV beverage containers was at 71 percent from January through June of 2020. Despite the CRV recycling rate being below 80 percent, CalRecycle has continued to offer program funding totaling $10.5 million total being available for all eligible cities and counties. The City of Santa Monica has thus been able to continue applying for funding which allows the City to maintain its efforts to encourage and promote beverage container recycling with a minimum available of $5,000 per City. No maximum award amount has been stated within the payment program terms and guidelines. As mentioned above, the City has participated in the City/County Payment Program authorized by the Act since FY 2005-06 and has applied for and received fifteen payments, ranging from $23,159 to $24,685. Each annual payment award has been fully expended towards the creation of programs and educational materials that encourage residents to properly recycle beverage containers, including a reverse vending machine, Curby the Recycling Robot, new Big Belly/Smart Belly dual trash compactors, and maintenance of existing Big Belly/Smart Belly dual trash compactors around the City. Per payment program terms, should there be any remaining payment awards left at the end of a cycle, the City must return the unspent funds to CalRecycle within a designated time frame. To date, the City has fully expended the funds from each payment award cycle. 3.B Packet Pg. 14 3 of 3 The attached resolution (Attachment B) replaces Resolution Number 10945 which terminates on March 22, 2021. Following adoption of this resolution, the City would be eligible to continue to receive annual Beverage Container Recycling City/County Payment Program funding from the State through February 8, 2026. Once the payments have been awarded, funds would need to be expended by the end of each grant cycle term and reported to CalRecycle. Past Council Actions March 22, 2016 (Attachment A) Council adopted Resolution Number 10945 (CCS) which authorized the City Manager to apply for and receive Beverage Container Recycling City/County Payment Program funding on behalf of the City. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. Prepared By: Patty Manalo, Administrative Analst Approved Forwarded to Council Attachments: A. Resolution 10945 (CCS) B. Resolution 3.B Packet Pg. 15 3.B.a Packet Pg. 16 Attachment: Resolution 10945 (CCS) (4374 : Resolution for Beverage Container Recycling Program) 3.B.a Packet Pg. 17 Attachment: Resolution 10945 (CCS) (4374 : Resolution for Beverage Container Recycling Program) 3.B.a Packet Pg. 18 Attachment: Resolution 10945 (CCS) (4374 : Resolution for Beverage Container Recycling Program) 1 City Council Meeting February 9, 2021 Santa Monica, California RESOLUTION NUMBER _________ (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO AUTHORIZE THE CITY MANAGER TO EXECUTE ALL APPLICATIONS, AGREEMENTS AND DOCUMENTS FOR FUNDS PURSUANT TO THE BEVERAGE CONTAINER RECYCLING CITY/COUNTY PAYMENT PROGRAM OF THE STATE OF CALIFORNIA DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY WHEREAS, pursuant to California Public Resources Code Section 14581, the State of California Department of Resources Recycling and Recovery (CalRecycle) administers the Beverage Container Recycling City/County Payment Program for payments to qualifying jurisdictions for beverage container recycling activities; and WHEREAS, the City of Santa Monica has participated in the Beverage Container Recycling City/County Payment Program since 2000; and WHEREAS, CalRecycle’s procedures for the administration of the Beverage Container Recycling City/County Payment Program now requires, among other things, an applicant’s governing body to declare by resolution authorization to participate in said program. 3.B.b Packet Pg. 19 Attachment: Resolution [Revision 5] (4374 : Resolution for Beverage Container Recycling Program) 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Manager or designee is authorized to submit applications to CalRecycle for funds pursuant to the Beverage Container Recycling City/County Payment Program for a period of up to five years. SECTION 2. The City Manager or designee is also authorized to execute any and all agreements, amendments or documents necessary to implement and to secure funding under such program. SECTION 3. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _________________________ GEORGE S. CARDONA Interim City Attorney 3.B.b Packet Pg. 20 Attachment: Resolution [Revision 5] (4374 : Resolution for Beverage Container Recycling Program)