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Home My WebLink About11/10/1992, C-10 - RECYCLING MARKET DEVELOPMENT ZONE APPLICATION Illll�lylll�llllln�l II MEETING DATE: city or san is oBIspo 11-10-92 COUNCIL AGENDA REPORT ITE" NUMBER: FROM: John Moss, Acting Utilities Director PREPARED BY: Cyndi Butterfield, Solid Waste Coordinator SUBJECT: Recycling Market Development Zone Application CAO RECOMMENDATION: Adopt a resolution in support of the County of San Luis Obispo in an application to the California Integrated Waste Management Board to establish a Central Coast Recycling Market Development Zone. DISCUSSION AB 939, the Integrated Waste Management Act of 1989, mandates that each jurisdiction must develop plans for marketing recyclable materials. Currently, our recyclable resources are shipped to markets in the Bay Area and southern California. Since value is not added to the resources locally, these low value resources are shipped at high cost to distant markets. This adds cost to our recycling programs and siphons money out of our community. The California Integrated Waste Management Board (CIWMB) has developed the Recycling Market Development Zone (RMDZ) program. The RMDZ program is designed to stimulate the creation of local markets for recyclables by linking recycling with local economic development. The goal is to close the recycling loop locally for local benefit. What is a Recycling Market Development Zone? The Recycling Market Development Zone program is like an enterprise zone program that provides sound economic and environmental benefits. Recycling Market Development Zones are limited in number and are designated by the State. Businesses that use recycled materials as a feedstock for production can receive incentives from the State if they locate in a zone. State incentives include low interest loans and technical assistance. These .businesses can range from composting yard debris to production of non-toxic wall board from waste paper. What are the Benefits ? Jurisdictions that are designated as RMDZs enjoy: Increased cost effectiveness in solid waste management due to availability of local end markets for recycled materials. An opportunity to attract targeted industry with the potential benefits of increased tax base, diversified economic base and job creation. ��►�+��+�i►i��►IIIIIIIP° ��hl city of San ; s OBISpo COUNCIL AGENDA REPORT Recycling Market Development Zone Page 2 You may recall that in February of this year your Council passed a resolution in support of a County application to the State to establish a county wide zone. That application was not successful. What is a Regional Zone and What are the Benefits? In this current designation cycle, the CIWMB has recommended development of a regional RMDZ instead of several small zones on the central coast. The State Board has made it clear that the selection process will favor a regional zone of this type. Consequently, the San Luis Obispo County Recycling Coordinator is collaborating on a multi-jurisdictional application to develop a regional zone with the counties of Santa Cruz , San Benito and Monterey, and the cities of Watsonville and Hollister. i The multi-jurisdictional application was proposed and sponsored by the City of Watsonville in an attempt to enhance their likelihood of designation by creating the regional approach favored by the CIWMB. The proposed zone would be managed by a contract administrator with responsibility to represent each jurisdiction on an equal bases. SLO County would locally administer this program only until our regional (county wide) waste management agency is established through a Joint Powers Agreement. San Luis Obispo County is encouraging the incorporated cities to participate in the application with the goal of designation for the entire county area. However, the City's initial role as a zone participant would be more of support for the County, followed by a phasing in to full participation in zone activities and benefits if the City so desired in the future. Should the City increase industrially zoned areas through annexation in the future, a more active role in attracting industry would be appropriate at that time. The City's role at this time is one of establishing our intention to participate in a regional RMDZ by resolution. I Staff therefore recommends that Council adopt the attached resolution supporting the County as lead in an application to establish a Central Coast Recycling Market Development Zone. FISCAL IMPACTS There are no immediate fiscal impacts. The program may benefit the City in reduced shipping costs due to access to local markets for recyclables. Also, should the City choose to participate fully in the zone program at a later date, new industry using recyclables as feedstock could increase economic diversity, provide jobs and increase the City's tax base. Attachment: Draft Resolution Draft memo to CIWMB RESOLUTION NO. (1992 Series) RESOLUTION OF THE CITY OF SAN LUIS OBISPO IN SUPPORT OF THE COUNTY OF SAN LIIIS OBISPO IN ESTABLISHMENT OF A CENTRAL COAST RECYCLING MARKET DEVELOPMENT ZONE WHEREAS, AB 939 (Sher) requires that each city and county reduce the waste stream by 25% by 1995, and by 50% by the year 2000; and WHEREAS, Recycling and market development are key activities in developing an action plan to successfully accomplish the statutorily required solid waste diversions; and WHEREAS, The State of California has established a program under Title 14 , Chapter 4, Resource Conservation Programs, Article 1. Market Development Programs that provides for the establishment of Recycling Market Development Zones; and WHEREAS, The County of San Luis Obispo, the County of Santa Cruz, the County of San Benito, the County of Monterey, and the Cities. of Watsonville and Hollister intend to make joint application for the formation of a Central Coast Recycling Market Development Zone (CCRMDZ) ; and WHEREAS, The designation of a CCRMDZ dedicated to the expansion of secondary materials business enterprises will be beneficial for market development region-wide; and N WHEREAS, the City of San Luis Obispo desires establishment of such a regional CCRMDZ; and WHEREAS, The City of San Luis Obispo finds that the designation as a Recycling Market Development Zone is necessary in order to assist in attracting private sector recycling investments to the area; NOW, THEREFORE, BE IT RESOLVED, that the City of San Luis Obispo does hereby support the application for and development of a Regional Central Coast Market Development Zone and will complete actions stated in the City-approved application which will apply to the City of San Luis Obispo. RESOLUTION NO. Page 2 Upon motion of seconded by and on the following roll call vote.: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 1992 Mayor Ron Dunin ATTEST: Diane Gladwell, City Clerk w APPROVED: City Ac4inistrative Officer 1 At o y October 21, 1992 MEMORANDUM TO: John Dunn, City Administrative Officer VIA: John Moss, Utilities Director FROM: Cyndi Butterfield, Solid Waste Coordinator SUBJECT County Recycling Market Development Zone Application The following is in response to your request for information on the October 9 letter to your office from County staff concerning Recycling Market Development Zone designation. As you may recall, Recycling Market Development Zones are similar to enterprise zones and are designated by the California integrated Waste Management Board. Industries that use recycled materials as their primary feedstock and locate in zones are eligible to receive benefits including low interest loans from the State. In February of this year the City passed a resolution in support of the establishment of a county wide zone. That application was not successful. In this current designation cycle, the County is participating in a multi jurisdictional application to develop a regional zone with the counties of Santa Cruz, San Benito and Monterey, and the cities of Hollister and Watsonville. The State Board has made it clear that the selection process will favor a regional zone of this type. County staff found that the City of Santa Maria and Santa Barbara County were not prepared to apply during this designation cycle. The multi jurisdictional approach was proposed by the city of Watsonville. The proposed regional zone would be managed by a contract administrator. SLO County would locally administer this program only until our regional (county-wide) waste management agency comes on line. The City's role at this time would be one of support of the County in the application. Although we would be part of the proposed zone, the benefit to us right away would be in diverting recyclables to industry that may locate anywhere in the zone. By joining now, we can leave the door open to take advantage of State programs at a later date if we choose to do so. My recommendation is to proceed as a limited player in the application. Attached is an agenda report and a draft resolution for your review and comment. )RAFT November 10, 1992 Mr. Michael R. Frost Chairman, Integrated Waste Management Board 8800 Cal Center Drive Sacramento, CA 95826 Dear Mr. Frost: The City of San Luis Obispo is joining with the Counties of Santa Cruz, Monterey and San Benito, and the City of Watsonville in applying for designation as the Central Coast Recycling Market Development Zone (CCRMDZ) . We feel that this coalition of jurisdictions would develop mutual benefit from a combined feedstock of collected recyclables as well as access to markets. We in San Luis Obispo currently bear the financial and environmental costs of shipping our recyclable materials to major markets in northern and southern California. I urge the California Integrated Waste Management Board to favorably consider this application. Designation as a CCRMDZ would provide solutions to both environmental and economic challenges. Central administration of this wide area would provide effective service to industries with specific needs wishing to locate on the Central Coast. Areas targeted for industrial expansion could count on specific qualities and quantities of feedstock. One county would benefit from new jobs while the others benefit from reduced shipping costs. Please contact my -office if I can do anything to assist with this application and our successful designation. Sincerely, Ron Dunin Mayor RD:cb