To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Establishment of a Two-Year Funding Cycle for the Administration of the Keller Canyon Mitigation Fund, Beginning with Fiscal Years 2024/25 and 2025/26
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Department of Conservation and Development to establish a two-year funding cycle, for the allocation of the Keller Canyon Mitigation Fund (KCMF), for the service projects and programs, beginning with Fiscal Year (FY) 2024/25 and FY 2025/26, as recommended by Supervisor Glover.
FISCAL IMPACT:
No General Fund impact.100% Keller Canyon Landfill Mitigation Funds are to be used for allocations during the combined program cycle.
BACKGROUND:
In 1990, the Board of Supervisors (Board) approved the Keller Canyon Landfill land use permit and franchise agreement, which included the establishment of fees to mitigate the adverse impacts of the landfill in the local community. The KCMF administrative process was approved in 1992 and subsequently amended in 1994 to provide additional flexibility, including the use of the funds by the Board of Supervisors, at its sole discretion. A one-year allocation cycle was implemented, beginning July 1st and ending June 30th of each year, administered by the District 5 Supervisor’s Office, whose constituents are the most impacted by proximity to the landfill.
On May 24, 2011, the Board approved the most recent policies governing the implementation and administration of the KCMF program. This included capping the total grantee allocation at 80% of projected revenue in an upcoming year. Thus, reducing the likelihood that expenses exceed actual revenue received during a given fiscal year. Additionally, the District 5 office appointed the Department of Conservation and Development as both the fiscal and contract manager for the fund.
Currently, the KCMF operates on a one-year funding cycle. A one-year cycle can be challenging for grantees to navigate, especially for budget planning and establishing budget stability for various ongoing service programs provided by various organizations. Furthermore, the cyclical nature of an annual re-application process can be time-consuming for organizations and divert resources away from an organization’s service work.
In anticipation of FY 2024/25, and to address the administrative burden of conducting an annual one-year funding cycle, District 5 Supervisor Federal Glover has recommended the establishment and implementation of a two-year funding cycle for the KCMF program. This change would reduce the administrative burden of carrying out the application process and promoting this program each year, while also fostering a stronger, long-term relationship with community partners.
The primary disadvantage of moving to a two-year funding cycle is if an organization is not awarded funds in the first year of a two-year funding cycle, they cannot apply for two years. If the two-year cycle is approved beginning with FYs 2024/25 - 2025/26, an organization that is not awarded for the FYs 2024/25 - 2025/26 two-year cycle would have to wait to apply for the next two-year funding cycle, which would be the FY 2026/27 - 2027/28 cycle.
CONSEQUENCE OF NEGATIVE ACTION:
If the two-year funding cycle is not approved and authorized, County staff would need to initiate another annual RFP process, in which the service providers or awarded programs/projects would need to complete another formal application, where the administrative process typically takes five or more months to complete.