PURPOSE

Staff is requesting City Council authorization to submit the Funding Request for the FY 2004/2005 funding cycle of the City/County Payment Program to the California Department of Conservation, Division of Recycling (DOC).

BACKGROUND

In 1986, the State Legislature passed Assembly Bill 2020 (AB 2020) to keep recyclable beverage containers out of landfills and reduce litter.  AB 2020 placed an additional charge of 2� cents on beverages in bottles under 24 ounces, and 5 cents on beverages in bottles over 24 ounces.  This additional amount is called the California Refund (or Redemption) Value (CRV).  In 2000, Senate Bill 332 (SB 332) increased the types of bottles subject to the CRV.  CRV bottles now include all bottles except those that hold milk, medical food, infant formula, wine, liquor, 46 ounce 100% fruit juice and 16 ounce vegetable juice containers.  In 2004, Senate Bill 28 (SB 28) increased deposits from 2.5 cents to 4 cents for beverage containers less than 24 ounces and from 5 cents to 8 cents for containers 24 ounces or more 

Consumers may receive a refund for the CRV amount by taking eligible bottles to a recycling center, such as the Burbank Recycle Center.  When consumers dispose of bottles in the trash, the unredeemed CRV refund amount remains with the DOC and is used to fund several different programs.  One of the programs funded by the unredeemed CRV refund money is the City/County Payment Program, which was established by SB 332.  The Program aims �to reach and maintain an 80 percent recycling rate for all CRV beverage containers� by annually allocating funds to eligible cities and counties on a per capita basis for beverage container recycling and litter cleanup activities.   The funds must be used for DOC approved activities related to beverage container recycling and/or litter reduction. 

ANALYSIS

Under the City/County Payment Program, the City of Burbank is eligible to receive $28,999 for FY 2004/2005.  The City must spend the funds by June 30, 2005.  To receive payment, the City must submit a Funding Request to the DOC before the end of May.  It must include a brief description of planned bottle recycling and litter abatement activities for DOC approval.  The DOC expects to distribute the FY 2004/2005 funds in July 2004.

Once the City receives the funds, the DOC requires that the City maintain documentation of the actual amounts expended in each funding cycle categorized by activity as specified in the City/County Spending Request Form.  The DOC requires that the City maintain these records for five years from the date of preparation.  Staff plans to use these funds for bottle recycling and litter reduction activities such as placing recycling containers in the local high schools and at City parks that currently do not have these containers or could use additional containers.  Staff also plans to use these funds to pay for a portion of the Public Works Newsletter, which is an important part of the City�s public education and outreach activities related to bottle recycling and litter reduction. 

The DOC plans to continue to distribute funds for bottle recycling and litter abatement during FY 2005/2006 and beyond.  The funds potentially available for the City of Burbank in future years have not yet been determined, but are expected to be approximately $30,000 per year based on Burbank�s population of approximately 100,000. 

FISCAL IMPACT

The City/County Payment Program funds available to the City of Burbank total $28,999 for FY 2004/2005.  The City is not obligated to provide matching local funds. 

Upon receipt in July 2004, the funds will be placed in revenue account number 498.PW000.45005.1002.  These funds will be appropriated to expenditure account 498.PW31C.62170 as part of the 2005/2006 budget process. 

RECOMMENDATION

Staff recommends that the City Council adopt the proposed resolution authorizing the submittal of the funding request for the FY 2004/2005 funding cycle of the City/County Payment Program to the California Department of Conservation, Division of Recycling.  

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