PURPOSE

To obtain Council approval for accepting grant funds for the California Integrated Waste Management Board (CIWMB) Used Oil Block Grant 11^th Cycle under revised reimbursement terms and amending the FY 2005-06 budget to appropriate funds.

BACKGROUND

For the past several years, the State�s oil recycling program awarded cities and counties 90 percent of oil block grant funds at the beginning of the fiscal year and the remaining 10 percent when the final report was submitted and approved.   In May 2005, Council passed Resolution No. 26,982 authorizing submittal of the grant application for fiscal years 2005-06 through 2010-2011 and amending the FY 2004-05 budget by accepting and appropriating funds in the amount of $27,324 for the 11^th Cycle Used Oil Recycling Block Grant funds.  Council�s approval was based on the City receiving 90 percent of the funds at the beginning of each fiscal year.

 In June 2005, however, the CIWMB changed its policy of advancing 90 percent in grants funds to reimbursing applicant�s funds at the end of each fiscal year.  The CIWMB states this change will greatly simplify accounting procedures because neither the State nor applicants will need to track interest accrued on unspent grant funds from each grant cycle.

ANALYSIS

The CIWMB formula for grant funds distribution is based on a city�s population.  Burbank is eligible to receive $27,324 for FY 2005/2006.  Oil grant funds have paid for Burbank Recycle Center (BRC) oil recycling educational materials and outreach, oil drain pans, a portion of the utility worker�s salary, BRC oil-related improvements, the collection and recycling of oil and filters and some oil center equipment and supplies.  The BRC oil recycling program helps the City meet AB 939 Source Reduction and Recycling and Household Hazardous Waste element requirements.

FISCAL IMPACT

Due to this change in policy, the City will need to budget the grant funds for fiscal years 2006-07 through 2010-2011 (the 11^th cycle grant term) as part of the annual budget process.   Reimbursement will be received from the CIWMB at the end of each fiscal year after the final report has been submitted and approved.

Staff is requesting that Council amend the fiscal year 2005-06 budget by appropriating $27,324 from the Refuse Collection and Disposal unappropriated fund balance to project number 498-PW31C-62170-0000-15895. 

RECOMMENDATION

Staff recommends that Council adopt the proposed resolution approving the revised reimbursement terms for accepting grant funds for the California Used Oil Block Grant 11^th Cycle and Amending the FY 2005-06 budget to appropriate $27,324.

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