City of Culver City, California
Agenda Item Report
Meeting Date: September 13, 2010 Item Number: A-2
CITY COUNCIL AGENDA ITEM: Adoption of a Resolution to Join the Los Angeles
County Recycling Market Development Zone Program.
Contact Person/Dept.: Damian Skinner Phone Number: (310) 253-6421
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Steve Rose-Culver City Chamber of Commerce on 1/06/10 and
08/11/10; Los Angeles County Department of Public Works on 07/29/10; Meetings and
Agendas – City Council (08/18/10); Sustainability and Environmental Issues
Department Approval:
Charles D. Herbertson (08/11/10)
City Attorney Approval:
Carol Schwab (by H. Baker) (09/07/10)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (09/08/10)
City Manager Approval:
John M. Nachbar (09/08/10)
RECOMMENDATION:
Staff recommends the City Council adopt a resolution to join the Recycling Market
Development Zone program regionally administered by Los Angeles County
Department of Public Works.
BACKGROUND:
Assembly Bill 939, which became law in 1989, required all cities and counties in
California to reduce the amount of refuse being sent to landfills by 50% by the year
2000 and continue to maintain this diversion rate every year after. The Recycling
Market Development Zone (RMDZ) Program was created by California Senate Bill
2310 in 1992 to balance the “supply” aspect of California Assembly Bill 939 by
creating demand for recycled materials collected via pursuit of greater landfill
diversion.
The RMDZ program combines recycling with economic development to fuel new
businesses, expand existing ones, create jobs, and divert waste from landfills. The
program provides attractive loans, technical assistance, and free product marketing
to businesses that use materials from the waste stream to manufacture their
products and are located in a RMDZ.
City of Culver City, California
Agenda Item Report
The RMDZ covers roughly 71,790 square miles of California from the Oregon border
to San Diego. As of June 2009, the Los Angeles County RMDZ consists of the
following jurisdictions:
• City of Burbank
• City of Carson
• City of Commerce
• City of Compton
• City of El Monte
• City of Glendale
• City of Inglewood
• City of Palmdale
• City of South Gate
• City of Torrance
• City of Vernon
• Unincorporated areas of Los Angeles County
In September 2010 the RMDZ will be expanded to include the cities of Azusa,
Baldwin Park, Covina, El Segundo, Huntington Park, Monrovia, Santa Fe Springs,
and Whittier. Culver City’s participation in the zone is contingent upon the City
Council adopting a resolution of inclusion.
DISCUSSION:
The California Department of Resources Recycling and Recovery (CalRecycle)
(formerly the California Integrated Waste Management Board) administers the
RMDZ Loan Program for recycling-based manufacturers located in designated
zones in California. The program encourages California-based recycling businesses
to locate new facilities and expand existing operations by providing low-interest rate
loans for eligible projects. This loan program is designed to help California RMDZ
businesses increase their processing capabilities and markets for recycled-content
products. The current interest rate for a loan up to 1.5 million dollars is 4%. Rates
are adjusted every January and July.
Los Angeles County Department of Public Works (County) is the regional
administrator of the RMDZ program. In December 2009, County representatives
approached staff to join the program because of Culver City’s position on the
Westside and the number of business that reside within Culver City that could
potentially benefit from the program. Based on Culver City’s interest in the program,
the County prepared a mitigated negative declaration that shows Culver City’s
participation in the program will not have an adverse effect on the environment. The
environmental review process took seven months to complete.
The County gave staff a list of Culver City businesses that may qualify to participate
in the loan program. Staff vetted the list with the Chamber of Commerce (Chamber)
to gauge possible interest in the program. Chamber and staff concluded that there
are a number of businesses that may immediately qualify to participate in the
program and several others that might qualify by changing their operations.
City of Culver City, California
Agenda Item Report
Marketing
The County will annually advertise the program in local newspapers and provide
staff with marketing brochures and material to use for City driven marketing
campaigns. Representatives from the County are also on hand to market the
program at City sponsored events. The Chamber has agreed to market the program
via their newsletter, events, and word of mouth.
FISCAL ANALYSIS:
The annual fee to participate in the program is $1,500 payable to the County. The
fee is required to cover the County’s administrative and advertising expenses.
Should the City Council adopt the proposed resolution, the fee will be paid out of
existing appropriations in the Refuse Enterprise Fund.
The City can opt out of the program at any time.
ATTACHMENTS:
Proposed Resolution
MOTION:
That the City Council:
Adopt a resolution to join the Los County Recycling Market Development Zone
Program thereby establishing Culver City as a Recycling Market Development
Zone.
MEETING DATE: 9/13/10
AGENDA ITEM:
Consider the Adoption of a Resolution to Join
the Los Angeles County Recycling Market
Development Zone Program
ATTACHMENTS
Pages|109| Resolution to join the County's RMDZ 1-3RESOLUTION NO. 2010-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, SUPPORTING THE
EXPANSION OF THE LOS 'ANGELES COUNTY
RECYCLING MARKET DEVELOPMENT ZONE.
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 recydables; and
WHEREAS, the Los Angeles County RIVIDZ includes the unincorporated areas of
the County of Los Angeles and the Cities of Burbank, Carson, Commerce, Compton, El Monte,
Glendale, Inglewood, Palmdale, South Gate, Torrance, and Vernon; and
WHEREAS, cities and counties must meet a 50 percent reduction in landfill waste
disposal as mandated in the California Integrated Waste Management Apt; and
WHEREAS, the Los Angeles County 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 City of Culver City wants 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 expansion of the Los Angeles County 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
ii
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28WHEREAS,
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 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(4 and the Department of Resources Recycling and
Recovery has determined that it will 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-inceme populations of the State; and
WHEREAS, the County of Los Angeles, as Lead Agency under the California
Environmental Quality Act, has prepared, or caused to be prepared, and adopted a Negative
Declaration for this zone expansion project that finds that the project will not have a significant
impact on the environment; and
WHEREAS, the City of Culver City has reviewed and considered the infomnation
in the-Negative Declaration adopted by the County of Los Angeles that finds that the zone
expansion project will not have a significant impact on the environment,
NOW, THEREFORE, the City Council of the City of Culver City, DOES HEREBY
RESOLVE as follows:
Approves the submittal of a Recycling Market Development Zone
expansion application to include the Cities of Azusa, Baldwin Park, Covina, Culver City, El
Segundo, Huntington Park, Monrovia, Santa Fe Springs, and Whittier.|101010101010101010
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-2-CHRISTOPHER ARIVIENTA, MAYOR
City of Culver City, California
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2. Agrees to administer the RIVIDZ program in a manner that seeks to ensure
the fair treatment of people of all races, cultures and incomes, including but not limited to
soliciting public participation in all communities within the MIDI
APPROVED and ADOPTED this day of , 2010:
ATTEST:
MARTIN R. COLE,
City Clerk
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