PURPOSE

To obtain Council approval to apply for California Integrated Waste Management Board (CIWMB) Used Oil Recycling Block Grant for fiscal years 2005-06 through 2010-11; accept grant funds for the 11th Cycle in the amount of $27,324, 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.  The CIWMB requests that cities apply only once for a five-year grant term and that the appropriate resolution includes five fiscal years (FY 2005/2006 through 2010/2011). 

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, a portion of the utility worker�s salary and BRC improvements such as the Used Motor Oil Center, which houses the eight-foot-long sink for used oil and the oil filter and anti-freeze drums.

Every year, the BRC recycles approximately 20,000 gallons of used motor oil and 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 beyond) 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 filters.  Costs for AES collection and recycling are paid from the used oil recycling block grant funds. Since the AES yearly invoices may now total more than $5,000 annually, the BRC is expecting to go out to bid for a used oil contractor.

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 $27,324 in annual non-discretionary grant funds for 2005/2006.  The FY 2005/2006 grant funds allotted are based on approximately 30 cents per capita, using the Department of Finance population statistics.   

Used oil recycling block grant funds are intended for the collection of used oil and oil filters. (This year the CIWMB noted that it is interested in increasing the quantity of oil filters recycled.) 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, public education, etc.  The CIWMB must receive the Used Oil Recycling Block Grant 11th Cycle application and signed resolution covering FY 2005/2006 through 2010/2011 by June 1, 2005, before 3 p.m. 

The CIWMB also requires yearly site visits to other six certified used oil collection centers in Burbank and preapproval of any proposed City 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 the BRC overall recycling program.

• 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 and oil filters.

• Working with other used oil CIWMB-certified centers in Burbank.

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

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

FISCAL IMPACT

The 11^th cycle used oil recycling grant will provide the City with approximately $27,324 in grant funds 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.

Grant fund amounts for FY 2006/2007 have not yet been determined, but are expected to be similar to those previously received  (approximately $30,000), since funding is based upon population and other established  factors.

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 funds will be expended on a reimbursement basis only for grants over $20,000. 

The proposed resolution accepts the used oil grant funding of $27,324 and amends the FY 2004-05 budget to appropriate the grant funds from revenue account number 498-PW000-48010-1042 (Refuse Collection Waste Oil Grant revenue account) to expenditure account number 498.PW31C.62170.0000.15895 (Refuse Collection Used Oil Block Grant 11^th Cycle). 

RECOMMENDATION

Staff recommends that the Council adopt the proposed resolution.

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