March 30, 2004
SUBJECT: APPROVAL OF A WASTE TIRE ENFORCEMENT GRANT FOR THE DEPARTMENT OF PUBLIC SAFETY AND BUDGET IMPLICATION ON THE HAZARDOUS MATERIAL INSPECTION PROGRAM
REPORT IN BRIEF
A grant proposal was drafted by the Department of Public Safety and submitted to the California Integrated Waste Management Board to incorporate waste tire enforcement into the existing hazardous materials inspection and permitting program. A city or county may apply for grant money to implement the program for five years. DPS has applied for the Grant for five years. Staff has been told that the Grant will be approved if Council accepts the Grant and the terms of the Grant.
The Integrated Waste Management Board will reimburse local agencies for authorized costs up to the annually estimated expenditure. The anticipated cost to implement the program in Sunnyvale for the first year is $42,224. There is no local match requirement for this grant. Therefore, no City funding is required but additional staff work is required. The work required by the Grant can be absorbed by the current three (3) Hazardous Materials Inspectors (HMI) but will be much more difficult with the reduced staff of two (2) Hazardous Materials Inspectors that becomes effective on July 1, 2004. One position was eliminated by Council in May 2003 and scheduled to be implemented on July 1, 2004.
If Council accepts this grant, Staff will include the reinstatement of the third HMI position as part of the FY04/05 budget for Council consideration. Staff believes the Hazardous Materials Inspection Program can generate the additional revenue needed to be 100% self-supporting, including the third HMI position.
If Council does not have any intention of considering reinstatement of the third HMI position, Staff believes we will have difficulty meeting the terms of the Grant and recommends that Council not accept the Grant. This is because the existing workload of the remaining two HMIs will not allow the additional work required by the Grant to be completed. Staff is sensitive to the current budget crisis of the City but did not want to dismiss the opportunity to obtain this additional funding without bringing it to Council.
Council action is needed to adopt the Resolution authorizing an application to the California Integrated Waste Management Board for a Waste Tire Enforcement Grant and authorizing the City Manager or designee to carry out the terms of the Grant. As noted above, Staff is only recommending the acceptance of the Grant if there are three (3) Hazardous Materials Inspectors employed by the Department.
BACKGROUND
The goal of the waste tire enforcement program is to improve community safety by reducing illegal abandonment of waste tires. Tires, when stored or discarded in an area open to the elements, provide a breeding environment for mosquitoes. In larger quantities they present a serious fire hazard. Additionally, abandoned tires detract from the appearance of the community. Through inspection of facilities collecting and disposing of waste tires, the number of tires illegally discarded in Sunnyvale or shipped elsewhere and dumped will be reduced or eliminated.
The grant proposal was drafted by the Department of Public Safety and submitted to the California Integrated Waste Management Board. The work required by the grant will incorporate waste tire enforcement into the existing hazardous materials inspection and permitting program. Through this effort the frequency of illegal disposal of waste tires in Sunnyvale will be evaluated and, if found to be an issue, reduced through education and enforcement activities. The grant is funded through California's $1 per tire fee charged for each waste tire generated. This fee is collected when new tires are purchased.
Implementation of the Waste Tire Enforcement Program requires that DPS conduct annual inspection of all tire dealers, auto dismantlers, tire haulers and other points of waste tire generation to ensure compliance with all applicable laws and regulations, including a new manifest system for tracking the disposal of waste tires. The Integrated Solid Waste Management Board will reimburse the grantee for all reasonable time and materials necessary to implement the program. DPS submitted a draft grant application identifying costs of $42,224 for the first year. This cost includes the on-site inspection time, public education, enforcement activities, related reporting writing and administrative work, equipment and supplies. Additional cost estimates must be submitted each year for the subsequent four years of the contract. It is estimated and very likely that the remaining four years will be funded at approximately the same amount.
EXISTING POLICY
Fire Services Sub-Element Policy 4.2C.2 - Coordinate a comprehensive program designed to control and mitigate harmful effects resulting from the storage, use and transport of hazardous materials.
DISCUSSION
Sunnyvale tire facilities will be inspected under this program beginning in FY 04/05. The inspection will be conducted either by Sunnyvale personnel, or by the County, if the City does not accept the Grant. The cost to businesses, in time involved in the inspection process, will be less if done as a part of the existing City regulatory inspection program. Approximately 110 Sunnyvale facilities are believed to be involved in the sales and/or disposal of regulated tires.
As all reasonable costs are reimbursed by the California Integrated Waste Management Board, there will be no cost to the City. There is currently sufficient staff within Public Safety to implement this program. However, if reductions in staffing below current numbers (3 Inspectors, 1 Coordinator) are anticipated, the addition of the tire enforcement element will result in a decline in service level across the entire hazardous materials inspection program. As mentioned above the Hazardous Materials Program, with a moderate increase in fees will become 100% self-supporting. The details are in the Fiscal Impact section.
FISCAL IMPACT
A. Revenue and costs planned for FY04/05 – estimated revenue (not including Waste Tire Grant revenue) and the reduction of 1 Hazardous Materials Inspector.
REVENUE FROM THE HAZARDOUS MATERIALS (CUPA) PROGRAM
$628,300 Estimated for FY04/05 (not including the Waste Tire Grant)
$694,624 - COST of the HAZARDOUS MATERIALS PROGRAM (2 Inspectors)
$569,229 Salary, benefits, goods & services, program internal service charges
$ 92,318 Indirect costs (DPS admin., DPS internal service charges, billing)
$ 33,077 City-wide overhead (5%)
Fees will be increased $66,324 in the next two Fiscal Years (04/05 and 05/06) to obtain full cost recovery.
B. Revenue and costs planned for FY04/05 – increased revenue (from the Waste Tire Grant) and reinstating 1 Hazardous Materials Inspector position (total of 3 HMIs).
WASTE TIRE GRANT REVENUE (per year for 5 years)
|
|
Current |
Increase |
Revised |
|
Revenues: |
|
|
|
|
State Tire Enforcement Grant |
0 |
42,224 |
42,224 |
|
|
|
|
|
|
Expenditures: |
|
|
|
|
New Project – Hazmat |
0 |
42,224 |
42,224 |
REVENUE FROM THE HAZARDOUS MATERIALS (CUPA) PROGRAM
$670,524 Estimated for FY04/05 (including Waste Tire Grant Revenue)
$849,014 - COST of the HAZARDOUS MATERIALS PROGRAM (3 Inspectors)
$716,267 Salary, benefits, goods & services, program internal service charges
$ 92,318 Indirect costs (DPS admin., DPS internal service charges, billing)
$ 40,429 City-wide overhead (5%)
Fees will be increased $178,490 in the next two Fiscal Years (04/05 and 05/06) to obtain full cost recovery ($66,324 plus the $112,166 net cost of reinstating the 3rd Hazardous Materials Inspector).
Approve Alternative #1, adopt the Resolution and authorize the Department of Public Safety to submit a formal tire enforcement grant application to the California Integrated Waste Management Board.
Prepared By:
Byron Pipkin
Public Safety Captain
Reviewed By:
Michael Maehler
Acting Director of Public Safety
Approved By:
Amy Chan
City Manager
Attachment
A. A Resolution of the City Council of the City of Sunnyvale Authorizing an Application to the California Waste Management Board for a Waste Tire Enforcement Grant and Authorizing the City Manager to Sign on Behalf of the City