Item Coversheet
ALAMOSA CITY COUNCIL
COUNCIL COMMUNICATION


Subject/Title:
Motion authorizing an increase in matching funds for a Recycling Resources Economic Opportunity (RREO) grant.
Recommended Action:
Staff recommends that Council approve increasing the City's match contribution for the RREO grant by $20,000 due to increased construction costs.
 

Background:

The City was awarded a $25,000 Recycling Resources Economic Opportunity Program (RREO) mini grant to build a new cardboard cover structure and concrete improvements at the Rickey Recycling Center. Our cardboard recycling area is open to the elements and susceptible to storm water runoff from the adjacent baler building. The cardboard is damaged by precipitation from above and muddy drainage from below. Water damage makes it difficult to bale our cardboard until it dries, reducing our productivity and ultimately, damaging the paper fiber and reducing the salvage value. This project will enable us to build a post and beam cover structure, open on four sides, to protect the cardboard storage area, and add gutters, sidewalks and a concrete driveway to the north side of the baler building.

 

At the time the application was submitted at the end of June 2021, the cost of construction was $28,244, but by the time it went to bid in January 2022, construction costs had increased and the lowest bid was $47,500. The grant was awarded for the maximum amount of $25,000, so if the project is to proceed, the difference will have to be taken from the recycling center budget. 

Issue Before the Council:
Does Council wish to approve increasing the match contribution for the RREO grant by $20,000?

Alternatives:
  1. (Recommended alternative) Approve increasing the match contribution for the RREO grant by $20,000.
  2. Deny increasing the match contribution for the RREO grant and return the grant.


Fiscal Impact:

The income in the 2021 Budget for the Rickey Recycling Center was $15,000 but the actual income totaled $127,561; a $112,561 increase. The budgeted income for 2022 is $40,000 and is probably also conservative.

 

This project would require using part of that income.  Also, every improvement to the recycling center improves the quality of the products and potentially, increases the rate of return. Furthermore, if we do not make up the budget shortfall for the project, we will not be able to build and will have to return the $25,000 grant.


Legal Opinion:
City Attorney will be available to discuss any legal issues.

Conclusion:
The City collects four times as much cardboard as any other type of recyclable but the numbers show there is a disparity between how much is collected and what is baled and shipped to market. We believe weather and drainage improvements will close that gap. This new cardboard cover structure and concrete improvement project will increase the viability of the cardboard product and help keep the cardboard recycling area clean, well-maintained, and easy to use. 
ATTACHMENTS:
DescriptionType
Project EstimateBackup Material
Project BidBackup Material