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Home My WebLink About2010/06/22 Item 11 CITY COUNCIL AGENDA STATEMENT ..\.4~, 6/22110, Item~ SUBMITTED BY: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF A USED OIL PAYMENT PROGRAM REGIONAL APPLICATION ON BEHALF OF CHULA VISTA AS THE LEAD AGENCY AND PARTICIPATING AGENCIES B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER OR DESIGNEE TO SIGN ALL GRANT DOCUMENTS TO APPLY FOR AND RECEIVE FUNDS FROM THE CALIFORNIA USED OIL PAYMENT PROGRAM THR~GH JUNE 30, 2015 DIRECTOR OF PUBLIC WORKS ~ ADMfNlSTRA~V1CES MANAGER hi.- CITY MANAGE ASSISTANT CITY NAGER ~ l' 4/STHS VOTE: YES D NO i:8J ITEM TITLE: REVIEWED BY: SUMMARY The California Oil Recycling Enhancement Act (Act), which is administered by the California Natural Resources Agency - Department of Resources, Recycling and Recovery (CaIRecycle) [formally the California Integrated Waste Management Board], is a law designed to discourage the illegal disposal of used oil. In September of 2009, Governor Schwarzenegger signed Senate Bill 546 (Lowenthal) (SB 546) making significant changes to the Act. SB 546 restructured the lubricating oil recycling fee and the used oil recycling incentive payment system, streamlined'the used oil grant programs, required promotion of the production and use of re-refined oil, changed the used oil certified collection center program, and made various changes to the handling and management of used oil. A revised resolution and signatory authorization is required under the new regulations for the City to continue to receive funding for the Used Oil Recycling Program. In addition, the new program encourages and supports the development of regional used oil recycling programs. Chula Vista has always operated as the lead agency for the South Bay Used Oil Recycling Program, which included National City and Imperial Beach. Under the revisions, the program is being expanded to the South County Used Oil Recycling Program and will include the following jurisdictions: Coronado, Lemon Grove, La Mesa, El Cajon, and Santee. 11-1 6/22/10,IteDl~ Page 2 of 3 ENVIRONMENTAL REVlEW The Environmental Review Coordinator has reviewed the proposed resolution for compliance with the California Environmental Quality Act (CEQA) and has determined that the proposal qualifies for a Class 8 categorical exemption pursuant to Section 15308 [Actions by Regulatory Agencies for Protection of the Environment] of the State CEQA Guidelines. Thus, no further environmental review is necessary. RECOMMENDATION Council adopt the resolutions. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The California Oil Recycling Enhancement Act (Act), which is administered by the California Natural Resources Agency - Department of Resources, Recycling and Recovery (CaIRecycle) [formally the California Integrated Waste Management Board], is a law designed to discourage the illegal disposal of used oil. In September of 2009, Governor Schwarzenegger signed Senate Bill 546 (Lowenthal) (SB 546) making significant changes to the Act. The Act provides funds to cities and counties for establishing and maintaining local used oil collection programs. The primary purpose of the funds are to provide alternatives to illegal disposal of used motor oil and oil filters through a network of collection opportunities and outreach efforts designed to inform and motivate the public to recycle used oil and uSe re-refined oil in their cars and equipment. The most significant changes to the used oil recycling program include: . Increased fee paid by manufacturers, from $0.16/gallon to $0.26/gallon, thus increasing the funding available to cities and counties to operate the used oil recycling programs. . Available funding to cities and counties is $0.27 per capita, paid every two years, beginning in April 2011. . The funds will be received in advance of the expenditures and must be spent on program activities within 24 months of receipt. Jurisdictions will no longer be required to front the money and invoice the state for the expenditures. A revised resolution and signatory authorization is required under the new regulations for the City to continue to receive funding for the Used Oil Recycling Payment Program. Additionally, the South Bay Regional (Chula Vista, National City, Imperial Beach) used oil recycling program will be expanding to become the South County Used Oil Recycling Program. Chula Vista will continue to operate as the lead agency and the following jurisdictions will be added: Coronado, Lemon Grove, La Mesa, EI Cajon, and Santee. Each jurisdiction's funds will be forwarded to Chula Vista, per the State regulations, to administer and operate the program. 11-2 6/22/10, Item~ Page 3 of 3 DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specitlc and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(I) is not applicable to this decision. CURRENT YEAR FISCAL IMPACT There will be no current impact to the General Fund with the approval of this item. As a result of the regulatory changes in SB 546, funds will be sent to the City in advance of the program work. Staff will have 24 months to complete the work. If the work is not completed within that time period the funds will be returned to the State. No interest tracking is required. ONGOING FISCAL IMPACT There will be no ongoing fiscal impact to the General Fund with the approval of this item. Each payment cycle is a two year/24 month cycl~, with funds being sent to the City prior to the work being done. Staff will need to track expenditures for each cycle separately and any funds not spent/work not completed in the 24 month period will require that the funds be returned to the State. No interest tracking is required ATTACHMENTS None. Prepared by: Lynn France - Environmental Services Program lvianager, Public Works Dept. K:IPUBLIC WORKSIAGENDAICAS201OI06-22-IOICAS 10- OPP used oilREV.doc 11-3 RESOLUTION NO. 2010- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE SUBMITTAL OF A USED OIL PAYMENT PROGRAM REGIONAL APPLICATION ON BEHALF OF CHULA VISTA AS THE LEAD AGENCY AND PARTICIPATING AGENCIES WHEREAS, Public Resources Code sections 48690 et seq. authorizes the Department of Resources Recycling and Recovery (CaIRecycle), formerly known as the California Integrated Waste Management Board, to make payments to qualifYing jurisdictions for implementation of their used oil programs as required Public Resources Code section 48690 et seq.; and WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the administration of the Used Oil Payment Program; and WHEREAS, the Used Oil Payment Program allows regional participation; and WHEREAS, CalRecycle's procedures for administering the Used Oil Payment Program requires, among other things, a regional applicant's governing body to declare by resolution certain authorizations related to the administration of CalRecycle's Used Oil Payment Program. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista authorizes the submittal of a Used Oil Payment regional application on behalf of itself as Lead Agency and the participating agencies/jurisdictions of Coronado, EI Cajon, Imperial Beach, National City, La Mesa, Lemon Grove, and Santee. BE IT FURTHER RESOLVED that this authorization is effective for five (5) years from the date of adoption of this resolution through June 30, 2015. Presented by: Approved as to form by: Richard A. Hopkins Director of Public Works ~~~ .---- Bart C. Miesfeld City Attorney 11-4 REsaLUTIaN NO.. 2010- RESaLUTIaN aF THE CITY caUNCIL aF THE CITY aF CHULA VISTA AUTHaRlZING THE CITY MANAGER aR DESIGNEE TO. SIGN ALL GRANT DaCUMENTS TO. APPLY FaR AND RECEIVE FUNDS FRaM THE CALIFaRNIA USED OIL PAYMENT PRaGRAM THRaUGH JUNE 30, 2015 WHEREAS, Public Resources Code sections 48690 et seq. authorizes the Department of Resources Recycling and Recovery (CalRecycle), formerly known as the California Integrated Waste Management Board, to make payments to qualifying jurisdictions for implementation of their used oil programs as required Public Resources Code section 48690 et seq.; and WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the administration of the Used ail Payment Program; and WHEREAS, the Used ail Payment Program allows regional participation; and WHEREAS, CalRecycle's procedures for administering the Used Oil Payment Program requires, among other things, a regional applicant's governing body to declare by resolution certain authorizations related to the administration of CalRecycle's Used Oil Payment Program. NOW, THEREFORE, BE IT RESOLVED that the City Manager or designee, is hereby authorized and empowered to execute on behalf of the City of Chula Vista all documents, including, but not limited to, applications, agreements, annual reports including expenditure reports and amendments necessary to secure said payents to support our Used ail Collection Program; and BE IT FURTHER RESOLVED that this authorization is effective for five (5) years from the date of adoption of this resolution through June 30, 2015. Presented by: Approved as to form by: ~C:::::=~~ ' ~ Bart C. Miesfeld City Attorney Richard A. Hopkins Director of Public Works 11-5