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Home My WebLink AboutSR - RES-10883 - RECYCLING MARKET DEVELOPMENT ZONE DESIGNATIONAGENDA ITEM September 8, 2015 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto Interim City Manag� FROM: Joe DeFrancesco I Public Works Dir ctor ReviewedNerified By: Interim City Manager Finance Director To Be Presented By: Joe DeFrancesco X Cons Calendar City Mgr Rpts Council Reports Legal Affairs Boards /Cmtes Public Hrgs _ Admin Reports Plan/Environ 1. SUBJECT Resolution No. 10883 — A Resolution of the City Council of the City of Orange to Designate the City of Orange as a Recycling Market Development Zone. 2. SUMMARY In 1990, the State of California adopted Senate Bill 2310, which established the Recycling Market Development Zone (RMDZ) program. The purpose of the RMDZ program is to develop the State's economic development infrastructure through the enhancement, attraction, retention, and expansion of businesses that manufacture products from recyclable materials. Under the RMDZ program, local communities, separately or in partnership, may apply to the State for designation. 3. RECOMMENDED ACTION Adopt Resolution No. 10883. 4. FISCAL IMPACT None. 1 5. STRATEGIC PLAN GOAL(S) 2b) Analyze future fiscal needs and potential revenue opportunities. 4b) Provide outstanding public service — Provide facilities and services to meet customer expectations. 4d) Foster an environment of leadership, teamwork and innovation. ITEMaJ.1 T 1 9/08/15 6. GENERAL PLAN IMPLEMENTATION Air, Water and Energy Resources Element Goal 2.0 Protect air, water, and energy resources from pollution and overuse. Policy 2.5: Continue to work toward local and regional waste - reduction and diversion goals. 7. DISCUSSION and BACKGROUND Background In 1990, the State of California (State) adopted Senate Bill 2310 (SB 23 10) to establish the RMDZ program. The purpose of SB 2310 was to simultaneously increase recycling and reinforce the State's economic development infrastructure through the enhancement, attraction, retention, and expansion of businesses that manufacture products from recyclable materials. Under the program, local jurisdictions may apply for designation as a RMDZ. Designed as a compliment to local economic development programs, the RMDZ program provides cities with an additional tool for local business attraction, retention and expansion and solid waste diversion. The diversion and reuse or remanufacturing of discarded materials from landfills has positive environmental benefits. Specifically, manufacturing products from recycled materials generally requires less energy than those manufactured from virgin materials. Recycling provides a more efficient use of the resources already extracted from the earth and recycling and remanufacturing activities have the capacity to support existing manufacturing activities, create jobs and stimulate the local economy. Discussion The RMDZ program encourages reuse and utilization of recycled and recyclable materials to create new businesses, expand existing businesses by diverting solid waste from landfills. Eligible businesses within an RMDZ may apply for low interest loans of up to $2 million and receive free business -to- business product marketing. Currently, the City has several businesses that may qualify for and benefit from RMDZ incentives. On March 2015, staff attended a RMDZ workshop in the City of Huntington Beach. The purpose of the workshop was to determine the level of regional interest for an Orange County RMDZ (OC RMDZ). After a series of discussions, several cities and the Unincorporated County expressed an interest in becoming a RMDZ and determined that the City of Huntington Beach would be Lead Agency. As the Lead Agency for Orange County's RMDZ application, Huntington Beach would submit an application on behalf of the Orange County co- applicants and pertinent California Environmental Quality Act documents to the State by October 15, 2015. In order for the City to become part of the OC RMDZ, the State requires that the City adopt a resolution that declares their intention to participate in the RMDZ program. If the resolution is approved, it will be transmitted to the City of Huntington Beach. Once the City of Huntington Beach receives resolution from OC RMDZ co- applicants they will submit an application to the State for regional designation consideration. If the OC RMDZ is approved for designation, the ITEM 2 9/08/15 O .s Printed on Recycled Paper designation will last for 10 years. At that time, the designated entities may continue to apply to the State for designation renewal. It is recommended that the City Council approve Resolution No. 10883 providing for the designation of the City of Orange as part of the OC RMDZ. There is no cost for the City to become part of the OC RMDZ. Following approval, the City Economic Development team will initiate outreach to ensure eligible local businesses as well as potential new businesses are aware of the program. 8. ATTACHMENTS • Attachment A - Resolution No. 10883 • Attachment B - Summary of California RMDZ Programs JD /gw /ly NAPublic Works\ADM1N \LYoung \Council Items \COUNCIL \Sept- 2015 \09 -08 -15 \Resolution -10883 2015 City RMDZ Designation.docx ITEM 3 9/08/15 O Printed on Recycled Paper Attachment A RESOLUTION NO. 10883 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE TO DESIGNATE THE CITY OF ORANGE AS PART OF THE RECYCLING MARKET DEVELOPMENT ZONE WHEREAS, California Public Resources Code Section 42010 provides for the establishment of the Recycling Market Development Zone (RMDZ) program throughout the State which provides incentives to stimulate development of post- consumer and secondary materials markets for recyclables; and WHEREAS, all California jurisdictions must meet a 50% reduction in landfill waste disposal as mandated by the California Integrated Waste Management Act; and WHEREAS, the development of local markets for recycled materials would reduce the need to transport them out of the region in the future; and WHEREAS, the current and proposed waste management practices and conditions are favorable to the development of post- consumer and secondary waste materials markets; and WHEREAS, the Cities of Garden Grove, Huntington Beach, Orange, Santa Ana, Stanton, and Unincorporated Orange County are committed to the designation of the Orange County RMDZ OCRMDZ); and WHEREAS, the designation as an RMDZ is necessary to facilitate local and regional planning, coordination, support existing and new recycling -based manufacturing businesses, as well as the attraction of private sector recycling investments to the RMDZ; and WHEREAS, RMDZ designation would make existing and new recycling -based manufacturing businesses located within the proposed zone eligible for the technical and financial incentives associated with the RMDZ program; and WHEREAS, local governing bodies may receive RMDZ program related payments as authorized by Public Resources Code; and WHEREAS, the California Legislature has defined environmental justice as "the fair treatment of people of all races, cultures, and incomes with respect to the development, adoption, implementation, and enforcement of environmental laws, regulations and policies" [Government Code section 65040.12(e)], and has directed the California Environmental Protection Agency to ITEM 4 9/08/15