TO: LINDA REICH, CITY MANAGER
FROM: JACKIE MELENDEZ, ASSISTANT CITY MANAGER
SUBJECT
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Approve the CalRecycle - RMDZ Zone Incentive Funds Application and Agreement FY2025-26 Extension (ZIF5).
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RECOMMENDATION
1) Accept the Cal Recycle Recycling Market Development Zone (RMDZ) reimbursable Grant Incentive Funds in the amount of $42,545; 2) establish grant number G2261; 3) appropriate $42,545 to the General Fund 100 and increase the revenue by the same amount; and 4) authorize the City Manager to execute all documents on behalf of the City.
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FISCAL IMPACT
Requires an appropriation in the amount of $42,545 and an increase in revenue to the General Fund-Economic Development program 1009020. The agreement allows a reimbursable allocation of $42,545.00 to conduct technical assistance for California based businesses that use materials from California landfills. Funds will be reimbursable through December 2026.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Superior Customer Service
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
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Revenue: 1009020-59355-G2661 |
Expenditure: 1009021-43650-G2261 |
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BACKGROUND
Recycling Market Development Zones are for businesses that manufacture products using materials that would normally end up at the landfill. The company must be located in one of the specially designated geographical zones throughout California. Chino renewed its RMDZ designation in 2014 and in 2026 looks to reinstate spending for technical assistance program for micro-manufacturers / entrepreneurs in the fashion industry.
This program will be housed at the “LAB at Chino” where Economic Development will launch the first fashion maker space in Chino. “Upcycle Chino” aims to attract fashion entrepreneurs by providing technical assistance to startup fashion designers to turn discarded textiles into marketable products while reducing landfill textile waste. Core program components include:
• Conversion of post-consumer and surplus textiles into finished market-ready garments and products
• Fabric deconstruction, material recovery, and quality control processes that support recycled manufacturing
• Integration of circular manufacturing models and sustainable sourcing strategies
ISSUES/ANALYSIS
On April 9, 2026, CalRecycle approved the program. As part of this program, Economic Development will work with partners such as Goodwill and Salvation Army for seasonal textiles to be collected. The program is intended to support Office of Economic Development’s business attraction efforts. The program is designed to support 15 to 20 fashion entrepreneurs by providing education in sustainable micro-manufacturing practices. Program is expected to run July 2026 until December 2026.
Attachments - Agreement
Project Overview