PURPOSE

Staff is requesting City Council approval of the submittal of an application to renew the Los Angeles County Recycling Market Development Zone (RMDZ). 

BACKGROUND

The Los Angeles County RMDZ was established in 1994 and includes the cities of Burbank, Carson, Compton, Commerce, El Monte, Glendale, Montebello, Pasadena, South El Monte, South Gate, and Vernon, and all Los Angeles County unincorporated areas.  The Zone expires at the end of this fiscal year, and the County is eligible to apply for a ten-year extension.  The Community Development Commission of the County of Los Angeles (CDC) will be submitting a renewal application to the California Integrated Waste Management Board (CIWMB) in March 2004.

One of the requirements of the application is that all participating jurisdictions that wish to continue as participants in the RMDZ program submit to the CDC a City Council resolution approving the renewal application.  These resolutions will be submitted to the CIWMB with the completed application.  In order for the CDC to have all the necessary documentation, the CIWMB has requested that the participating cities have their resolutions reach the CDC in March.

The California legislature created the RMDZ program to increase the markets for recyclable materials collected from cities' curbside, buyback, and drop-off programs.  The program provides incentives to businesses that use secondary materials from the waste stream as feedstock in their manufacturing process.  The RMDZ program was created in part to respond to requests from cities such as Burbank that asked the state to help create markets for recyclable materials after the legislature passed Assembly Bill 939, requiring California cities to cut in half the amount of waste going to landfills.  Burbank joined the RMDZ in 1995. 

ANALYSIS

The RMDZ program combines recycling with economic development to fuel new businesses and create jobs.  Recycling-based manufacturers located in the RMDZs are eligible to apply for low-interest loans and other assistance provided by local zone administrators and by the CIWMB's Recycling Business Assistance Team (R-Team).  In addition to loans, the CIWMB offers financial assistance, product marketing, and permitting assistance. 

The Burbank recycling staff provides information and technical assistance to businesses interested in the RMDZ program.  City staff encourages businesses that may qualify to explore the benefits of the program, although a business may seek state financial and technical assistance from the RMDZ staff by contacting Sacramento directly.  In the past, the Burbank Recycle Center has worked on its own and with the Community Development Department to publicize the County RMDZ program.

In June 2002, Three-D Plastics, Inc. of Burbank received a $100,000 business loan from the CIWMB through the RMDZ program.  The loan was used to provide new equipment and working capital for the manufacture of highway safety devices, which use crumb rubber from waste tires and high density polyethylene from recycled milk and water jugs, laundry detergent bottles, etc. in the manufacturing process.  Three-D recently received a $400,000 loan for further expansion.

As an approved participant, Burbank�s ability to provide business assistance to the community is enhanced.  According to the CDC, eighteen Los Angeles County businesses have received a total of $11.1 million in loans.  This dollar amount represents more loans than received in any other RMDZ in the State.  Continued participation in the RMDZ will allow for existing and additional recycling related businesses to receive loans to improve their use of recyclable materials.

FISCAL IMPACT

Burbank is assessed a $1,500 annual fee to cover its share of the RMDZ administrative costs.  The funds are budgeted in the current Recycle Center budget.

RECOMMENDATION

 Staff believes it worthwhile to continue participation in the RMDZ and recommends the City Council adopt the proposed resolution.

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