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Home My WebLink About55C - RESO - RECYCLING MARKET DEVELOPMENT ZONEREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 7, 2015 TITLE: RESOLUTION TO DESIGNATE THE CITY OF SANTA ANA AS A RECYCLING MARKET DEVELOPMENT ZONE (RMDZ) (STRATEGIC PLAN NO. 3,, 3, C) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: 9.105TI.OWE WO ❑ As Recommended ❑ As Amended ❑ Ordinance on 1a' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Adopt a resolution to designate the City of Santa Ana as a Recycling Market Development Zone (RMDZ) as a participant in the Orange County Recycling Market Development Zone under the lead designation of the City of Huntington Beach. 2. Authorize the City Manager to forward the Resolution to the City of Huntington Beach for inclusion in the regional Recycling Market Development Zone application to CalRecycle. DISCUSSION In 1990, the State of California adopted Senate Bill 2310 establishing the California Market Development Zone program. The purpose of this Bill was to stimulate the recycling of waste materials generated in California. Under the program, local communities, separately or in partnership, can apply for designation as a Recycling Market Development Zone (RMDZ). Currently, California has 36 RMDZ's with none in Orange County. An RMDZ is an economic development and technical assistance program consisting of State funded low interest loans, technical assistance, site selection, permitting assistance, and assistance with obtaining recycle materials for manufacturing. Inclusion in an RMDZ is an economic development tool that utilizes the growing supply of recycled and recyclable materials to fuel new businesses, expand existing businesses, create jobs, increase local revenues, and divert 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. The City currently has several green businesses that could possibly qualify for RMDZ incentives. In March 2015, City staff attended a workshop on the benefits of joining a countywide RMDZ. At this workshop, it was announced that the city of Huntington Beach would be taking the role of Lead Agency in this effort. As the Lead Agency for this application, the City of Huntington Beach 55C -1 Resolution to Designate Santa Ana as a RMDZ July 7, 2015 Page 2 will conduct the environmental analysis and will submit the application to CalRecycle by October 2015. Currently, six Orange County cities have formally expressed their desire to participate: Huntington Beach, Garden Grove, Mission Viejo, Orange, Placentia, and Stanton. In order for the City to be designated as an RMDZ, the State program requires that cities adopt a resolution approving the designation and participation in the program, which is then included in the application to CalRecycle by the lead agency. By agreeing to participate in this countywide RMDZ, the City will have another economic development tool that can provide incentives to stimulate business development and help the local environment. The Community Development Agency will utilize the City's website and direct contact to market the program to businesses within the City. There is no cost to the City to be a part of the countywide RMDZ. There may be some funds available from the State for enhanced marketing of the program. This effort will further the City's mandate on diversion of solid waste from landfills as designated by the California Integrated Waste Management Act of 1989 (AB 939). Compliance with AB 939 consists of both waste diversion from the landfill, and program implementation. Participation in the RMDZ will accomplish both of these objectives, furthering the city's compliance. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 Economic Development, Objective #3, (Promote a solutions -based customer focus in all efforts to facilitate development and investment in the community), Strategy C (Explore friendly environment within the city through the requirements, improved coordination between agencies monetary incentives). FISCAL IMPACT There is no fiscal impact associated with this action. Kelly Reenders Executive Director Community Development Agency KR /MM /sb Exhibit: 1. Resolution 2. Memorandum opportunities to encourage a business reduction of non - essential regulatory for development review and addition of Fred Mousavipour a Executive Director Public Works Agency 55C -2 ROM: 07/07/15 RESOLUTION NO, 2015- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO DESIGNATE THE CITY OF SANTA ANA AS A RECYCLING MARKET DEVELOPMENT ZONE (RMDZ) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. 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. Pursuant to the California Integrated Waste Management Act of 1989 (AB 939), all California jurisdictions must meet a 50% reduction in landfill waste disposal. C. The development of local markets for recycled materials would reduce the need to transport such materials out of the region in the future. D. The current and proposed waste management practices and conditions are favorable to the development of post - consumer and secondary waste materials markets. E. The cities of Santa Ana, Huntington Beach, Garden Grove, Mission Viejo, Orange, Placentia, and Stanton intend to submit a joint application to CalRecycle requesting designation as a countywide RMDZ dedicated to establishing, sustaining and expanding recycling -based manufacturing businesses, which is essential for market development and to assist these jurisdictions in meeting the established landfill waste reduction goals. F. As the lead agency for the application, the City of Huntington Beach will conduct the environmental analysis and will submit the application to CalRecycle by October 2015. G. In order for the City to be designated as a RMDZ, the State program requires that cities adopt a resolution approving the designation and participation in the program, which is then included in the application to CalRecycle by the lead agency. I� T� 1 Resolution No. 2015 - 9616J H. The designation as a RMDZ is necessary to facilitate local and regional planning, coordination, and support existing and new recycling -based manufacturing businesses, as well as the attraction of private sector recycling investments to the RMDZ. 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. 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 conduct its programs, policies, and activities that substantially affect human health or the environment in a manner that ensures the fair treatment of people of all races, cultures, and income levels, including minority populations, and low income populations of the State (Public Resources Code section 71110(a)). K. CalRecycle, in its Strategic Plan, has adopted a goal to continuously integrate environmental justice concerns into all of the Department's programs and activities. Section 2. Based upon the information provided herein and at the hearing on this matter, the City Council of the City of Santa Ana hereby: Designates the City of Santa Ana as a Recycling Market Development Zone (RMDZ) as a participant in the Orange County Recycling Market Development Zone under the lead designation of the City of Huntington Beach; and, Authorizes the City Manager to forward the Resolution to the City of Huntington Beach for inclusion in the regional Recycling Market Development Zone application to CalRecycle. These decisions are based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Council Action dated July 7, 2015, and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. Resolution No. 2015- 55C -4 ADOPTED this day of 2015. Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attpffpy r By:-� Ryan AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2015- to be the original resolution adopted by the City Council of the City of Santa Ana on July , 2015. Date: Clerk of the Council City of Santa Ana 55C -5 Resolution No. 2015- 55C -6 To: City Manager Date: June 10, 2015 From: Kelly Reenders, Executive Director Community Development Agency Subject: RECYCLING MARKET DEVELOPMENT ZONE At the July 7`" City Council meeting, staff will be presenting a resolution to participate in a countywide Recycling Market Development Zone (RMDZ). An RMDZ is an economic development and technical assistance program consisting of State faded low interest loans, technical assistance, site selection, permitting assistance, and assistance with obtaining recycle materials for manufacturing. Inclusion in an RMDZ is an economic development tool that utilizes the growing supply of recycled and recyclable materials to fuel new businesses, expand existing businesses, create jobs, increase local revenues, and divert waste from landfills. The City currently has several green businesses that could possibly qualify for RMDZ incentives. CDA staff will market this program to potential businesses, as well as other businesses looking to locate in the city. This provides another incentive to grow their business and be successful in Santa Ana. There is no cost to the City to be a part of the countywide RMDZ. There may be some finds available from the State for enhanced marketing of the program. Attached is an article on the Orange County RMDZ outlining some of the potential benefits for Orange County and the City. dliT Recycling Market Development Zone may spur jobs in O.C. The push is on to establish to RMDZ — Recycling Market Development Zone — in Orange County. The program provides business loans, technical assistance and free product marketing to "businesses that use materials from the waste stream to manufacture their products," according to CalRecycle. At a recent meeting in THuntington Beach City Hall, local business people, city staff', Chamber of Commerce representatives, CalRecycle personnel and officials front some of O.C.'s 34 cities came to hear about the program. Leading the effort is the city's new Senior Sustainability Analyst, Antonia Graham. She replaced Aaron Klemm, the former energy project manager, who now is Division Manager of Environmental initiatives for Los Angeles County. RMDZs have created 9,000 jobs in California and diverted 7.5 million tons of waste from landfills, CalRecycle's Kathryn Ferrer told the crowd. She added that currently there are 35 RMDZ,s covering about 43 percent of the state, including the counties of Los Angeles, Riverside and San Bernardino. The missing link in Southern California is Orange County. Graham wants Huntington Beach to take on the role of zone administrator for O.C. She is recruiting other cities and believes an RMDZ, will create local jobs in recycling -based manufacturing. Once the zone is established, various resources will be available to companies that reuse or repurpose recyclables into new products, not just collect recyclable materials. Qualifying businesses can take advantage of free product marketing via the online ReC}cle Store. "It's business friendly, it's economic development, and it's no cost; said Jim Kuhl, zone administrator for the City of Long Beach. For interested cities and counties, CalRecycle does not charge a fee to apply for RMDZ designation. In fact, each zone (not each individual city) has access to funding of $4,500 for education and outreach. Zone designations last 10 years but must be reviewed every two years. Long Beach has been an RMDZ for 24 years, Kuhl sand, adding "It's a tool in the city's economic development." One selling point for businesses is the availability of loans up to $2 million at 4 percent interest. Many of the companies that apply are start -ups. There is a $300 loan application fee, CalRecycle assists businesses with the application process, which may take up to a year, or as quickly as two months if all the paperwork is in order. One RMDZ success story is U1traGlas in the city of Chatsworth. The company uses 100 percent recycled glass to create art and architectural products for interior and exterior applictrtions. `these include residential and commercial glass tile, partitions, countertops, doors, lighting, furniture and water features. 55C -8