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 CITY COUNCIL AGENDA ITEM NO. 08



Meeting Date: February 11, 2003

Subject/Title: Approve a Resolution supporting renewal of the Contra Costa Recycling Market Development Zone (RMDZ). (P. Zolfarelli/J.Carlson)

Submitted by: Paul Zolfarelli, Public Works Director / Jon Carlson, Solid Waste Manager

Approved by: John Stevenson, City Manager


RECOMMENDATION 

Approve a Resolution supporting renewal of the Contra Costa Recycling Market Development Zone (RMDZ). County will submit renewal application to California Integrated Waste Management Board (CIWMB) to extend the loan program another 10 years.

PREVIOUS ACTION

No previous action taken.

BACKGROUND

California’s Integrated Waste Management Act (AB939), which originally passed in 1989 and has since been amended, requires each jurisdiction within the State to reduce the amount of waste disposed in landfills by 50% by the year 2000 and every year thereafter. 

To assist California cities and counties in reaching this goal, the Recycling Market Development Zone (RMDZ) program was created by the California Integrated Waste Management Board. Contra Costa County, in partnership with several cities in the County, applied for and was designated as an RMDZ in March of 1993. There are presently 40 RMDZ’s in the state. Zones must be redesignated after ten years by the CIWMB if they wish to continue their status as an RMDZ. The RMDZ program is a business assistance program, and qualifying manufacturers in an RMDZ are eligible to receive very low interest loans from the state. Other benefits, such as help with locating recycled materials for processing, and help with identifying new customers may be offered to companies located in RMDZ’s as well. 

The Contra Costa County Recycling Market Development Zone includes the cities of El Cerrito, Richmond, San Pablo, Pinole, Hercules, Martinez, Concord, Pittsburg, Antioch, Oakley and Brentwood, and the unincorporated County areas between and surrounding these cities (see attached map).

The RMDZ program was designed to create and increase market demand for local recycled materials. The program also helps create jobs, can increase the tax base, reduce transportation costs of local recycled materials and reduce energy demands as many recycled content products use significantly less energy to manufacture than non-recycled content products.


Several companies in the Contra Costa County RMDZ have received assistance and/or low interest loans through the program over the past ten years. Redesignation of the Contra Costa County RMDZ would enable these benefits to continue for another ten years. 

Currently, there are no loans to any businesses in the City of Brentwood, but some examples of Contra Costa companies that have benefited from these loans include:

MBA Polymers in the City of Richmond received one $1,000,000 loan in 1997 and another $1,000,000 loan in 2000. Before the fire at their location, they had created about 50 jobs (many from traditionally underserved segments of the workforce in the immediate local area) and were diverting over 800 tons per year of recycled plastics. The plastics they recycle are usually considered 'hard to recycle' (such as computer printers) and the company is considered a world leader in recycling (and separating) the types of plastics they process. They have a highly recognized research and development team that has pioneered needed new technology in their industry.
Amigo Environmental, in the unincorporated area near Richmond, received an RMDZ loan for $60,000 in 1993. They employ eight people and divert over 400 tons per year of plastics (plastic 5 gallon buckets, etc.) and they refurbish and sell commercial plastic shipping bags. 


Contra Costa County, acting as our Zone Administrator, must get our zone re-designated by the Waste Board prior to the expiration date in March of 2003.
Zone Administrators are asked to turn in completed application packets with all the required documentation, along with new resolutions from each city and the County.

FISCAL IMPACT

There has not been any impact nor will there be an impact on the City’s budget in the future because the low-interest loans are offered by the State and not by the City of Brentwood. We do not plan on directly offering the loans. We will only be supporting the continuance of the program with this resolution.

Attachments:
• Resolution
• Map – CCC Recycling Market Development Zone


RESOLUTION NO.


A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD SUPPORTING RENEWAL OF THE CONTRA COSTA RECYCLING MARKET DEVELOPMENT ZONE (RMDZ). 

WHEREAS, the California Public Resources Code Section 42010 provides for the establishment of the Recycling Market Development Zone (RMDZ) program throughout the State to provide incentives to stimulate development of post-consumer and secondary materials markets for recyclables; and

WHEREAS, the Contra Costa RMDZ includes the cities of Antioch, Brentwood, Concord, El Cerrito, Oakley, Martinez, Hercules, Pinole, Pittsburg, Richmond, San Pablo and the unincorporated areas of Contra Costa County surrounding these cities., and 

WHEREAS, cities and counties must meet and maintain a 50 percent reduction in landfill waste disposal as mandated in the California Integrated Waste Management Act; and

WHEREAS, the Contra Costa RMDZ is dedicated to establishing, sustaining and expanding recycling-based manufacturing businesses, which is essential for market development and to assist local jurisdictions to meeting the established landfill reduction goals; and 

WHEREAS, the Contra Costa RMDZ designation will expire on March 31st, 2003, unless re-designated by the California Integrated Waste Management Board; and

WHEREAS, the City of Brentwood still desires existing and new recycling-based manufacturing businesses locating within the region to be eligible for the technical and financial incentives associated with the RMDZ program; and

WHEREAS, the renewal of the Contra Costa RMDZ is still necessary to facilitate local and regional planning, coordination, support of existing recycling-based manufacturing businesses, as well as attract private sector recycling business investments to the region; 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 California Integrated Waste Management Board, in its Strategic Plan, has adopted a goal to continuously integrate environmental justice concerns into all of the Board's programs and activities.


NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brentwood to support the County’s submittal of a Recycling Market Development Zone renewal application to include Antioch, Brentwood, Concord, El Cerrito, Oakley, Martinez, Hercules, Pinole, Pittsburg, Richmond, San Pablo and the unincorporated areas of Contra Costa County in-between and surrounding these cities.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 11th day of February, 2003 by the following vote:
City Administration
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