DATE: April 26, 2016
TO: Mayor and City Council
FROM: Fire Chief
SUBJECT
Title
Approval of Budget Appropriation for Hazardous Materials Program Settlement Funds
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RECOMMENDATION
Recommendation
That the City Council approves a budget appropriation in the amount of $225,350.50 for received Hazardous Materials Program settlement funds.
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BACKGROUND
The Hazardous Materials Program of the Hayward Fire Department’s Fire Prevention Office has been designated by the State of California to be the Certified Unified Program Agency (CUPA) in the City of Hayward. As a CUPA, the Hazardous Materials Program has been a party to numerous lawsuits and administrative enforcements involving companies and regulated entities within the City who violate hazardous materials/waste-related rules and regulations established by State, County, or City statutes. Examples of violations include the improper handling/disposal/reporting of hazardous materials/waste, inappropriate monitoring/safeguards associated with underground fuel tanks, and the failure to adhere to conditions outlined in City-issued permits. Many of the cases are resolved via monetary awards, otherwise known as settlements, with the City CUPA receiving a share of such funds.
DISCUSSION
As the settlement amounts are received by the City CUPA, they are deposited, as required by law, into a special fund in order to avoid comingling the funds with general purpose sources, such as the General Fund. While each settlement has certain stipulations attached to how funds can be utilized by the City, the overwhelming majority of the settlements have similar conditions and can be used towards the purchase of any equipment or services that promote the goals of hazardous materials/waste compliance.
For example, the Hazardous Materials Program/CUPA utilizes software that is expressly for the purpose of monitoring compliance with state hazardous materials/waste programs. The software is connected to a State database called the California Environmental Reporting System (CERS). If there are issues with the software (i.e. upgrades or new features), a consultant can be retained and funded from settlement money to assist Hazardous Materials staff with understanding the new functions of the software. Other items, such as computers, are also allowed under the settlement terms as they are utilized to primarily support hazardous materials/waste-related programs.
Hazardous Materials Program staff is currently in the process of developing and establishing a list of needs in order to ensure that the program keeps current and viable with the ever-changing landscape of new codes and laws surrounding hazardous materials/waste inspections and enforcement. A portion of the funds will be utilized to address any immediate concerns, and any remaining amounts will be carried forward into FY 2017 to address other issues that may arise.
FISCAL IMPACT
The total amount of $225,350.50 will have a positive impact on the General Fund as many of these costs would have been borne from the Fire Department’s operating fund, but instead will be paid for out of this special fund.
PUBLIC CONTACT
No public hearings or meetings were required for this item.
NEXT STEPS
If approved, the Department’s administrative staff will work with Hazardous Materials staff to evaluate and monitor the requests for needed supplies and services, ensuring that the requests are appropriate per the terms and conditions of each settlement and that future purchases adhere to all existing City purchasing and approval polices and procedures.
Prepared by: Todd Strojny, Management Analyst II
Staff contact
Recommended by: Garrett Contreras, Fire Chief
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Approved by:
Fran David, City Manager
Attachments:
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Attachment I |
Resolution - Budget Appropriation |