PURPOSE

To obtain City Council approval to accept grant funds from the California Integrated Waste Management Board (CIWMB) Used Oil Recycling Block Grant Tenth Cycle 2004/2005 in the amount of $31,711, and to amend the FY 2004-05 budget to appropriate the grant funds.

BACKGROUND

In 1992, the State of California enacted the California Oil Recycling Enhancement Act, which provides used oil recycling block grant funds to cities that establish and maintain a local used oil collection program to encourage recycling and/or proper disposal of used oil.

In order for a City to receive oil block grant funds, the City must have a certified oil collection center and an approved resolution from the applicant's governing body authorizing submittal of the application and identifying the title of the individual authorized to execute any agreements, contracts and requests for payment.  The Burbank Recycle Center (BRC) was certified by the State of California on November 9, 1993, the first year that State certification was offered.  On March 5, 2002, the City of Burbank approved Resolution No. 26,202, authorizing submittal of the California Used Oil Recycling Block Grant application to the CIWMB.  The CIWMB had requested that cities apply only once for a three-year grant term and that the appropriate resolution include three fiscal years (FY 2002/2003 through 2004/2005). 

The BRC has been collecting used motor oil for recycling since 1982.  When the new BRC was built in 1992, a 1,000-gallon underground used oil tank was installed and approved by CAL-OSHA and the Burbank Fire Department.  In the past, the State of California Used Oil Recycling Grant funds have paid for BRC educational materials and outreach, oil drain pans, and BRC improvements such as the Used Motor Oil Center, which houses the eight-foot-long sink for used oil and oil filter and anti-freeze drums

Every year, the BRC recycles approximately 20,000 gallons of used motor oil and at least three tons of filters.  This diversion contributes to the City's waste reduction goals for AB 939 (which required cities to divert 50 percent of their waste stream by the year 2000 and continue to do so) and fulfills the City's Source Reduction and Recycling and Household Hazardous Waste element requirements.

Asbury Environmental Services (AES), a used oil recycling facility, removes the oil from the underground tank at the BRC and takes it to its plant in Compton to be re-refined into recycled petroleum products.  AES also collects and recycles the oil filters.  Costs for AES collection and recycling are paid from the used oil recycling block grant funds.

The BRC is exempt from "hazardous waste facility permit requirements" in accordance with the California Health and Safety Code, Article 13, Section 15250.11.  By Code definition, the BRC is an oil collection facility and not a used oil recycling center.

ANALYSIS

The CIWMB formula for grant funds distribution is based on a city�s population.  Burbank is eligible to receive $31,711 in annual grant funds for 2004/2005.  The FY 2004/2005 grant funds allotted are based on approximately 31 cents per capita, using the Department of Finance population statistics.   

Used oil recycling block grant funds are intended for use in collecting used oil and oil filters. Eligibility is contingent upon meeting certain CIWMB requirements such as hours of operation, notification to the public of its used oil collection/recycling program, oil filter recycling, advertising, and public education.  The CIWMB must receive the Used Oil Recycling Block Grant Tenth Cycle 2004/2005 application and signed resolution covering FY 2004/2005 by June 2004. 

The CIWMB also requires pre-approval of proposed projects for reimbursement of used oil recycling block grant funds.  Qualifying projects include signage, advertising, promotion or improvements to the BRC's used oil collection area.

State funding for the City's used oil collection/recycling programs benefits the BRC and the City's waste reduction efforts by:

• Promoting the City's used motor oil and oil filter collection program specifically, while promoting our overall recycling program as a whole.

• Financing improvements to and operations of the BRC's used oil facility.

• Maintaining and enhancing a convenient buyback/dropoff location to facilitate proper recycling of used oil (oil filters and anti-freeze).

• Reducing illegal disposal of oil and the costs associated with it; and

• Encouraging the environmental protection of storm drains, groundwater and waterways.

FISCAL IMPACT

This tenth cycle used oil recycling grant will provide the City of Burbank with approximately $31,711 in grant funds in FY 2004/2005 for the collection and recycling of used motor oil and oil filters and the promotion of their recycling/proper disposal. All pre-approved expenditures (up to the amount awarded) completed in the specified period will be reimbursed by the State.  The State requires that the used oil recycling block grant funds be kept in a separate account that is available for audit at all times and that the interest earned from these grant funds be reported and also made available for audit. 

The proposed resolution accepts the used oil grant funding of $31,711 and amends the FY 2004-03 budget to appropriate the grant funds from revenue account no. 498.PW000.48010.1042 (Refuse Collection Waste Oil Grant revenue account) to expenditure account no. 498.PW31C.62170.0000.15103 (Refuse Collection Used Oil Block Grant 10^th Cycle). 

Ninety percent of the block grant is advanced and ten percent is withheld and will be released on a reimbursement basis once all the conditions in the grant have been satisfactorily completed. 

RECOMMENDATION

Staff recommends that the City Council adopt the proposed resolution.

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