HomeMy WebLinkAbout09/04/1990, C-4 - CONSIDERATION OF A RECYCLED PRODUCT PROCUREMENT ORDINANCE TING
city of San _JIS OBISp0 MEE9 4 990QATE:
OftMe COUNCIL AGENDA REPORT MEM NUMBER; .�
FROM: Ken Hampian, Assistant City Administrative Officer
Prepared By: Deb Hossli, Administrative Analyst
SUBJECT.: Consideration of a Recycled Product Procurement Ordinance
CAO RECOMMENDATION: Introduce to print an ordinance establishing
a Recycled Product Procurement Policy in the City.
DISCUSSION:
Background
Over the last several years, local governments have found that
encouraging and facilitating successful recycling programs in their
communities has come to encompass more than just establishing curb
side recycling programs. Many cities and counties have adopted
recycled product procurement ordinances in an effort to increase
their usage of recycled products and therefore, help to encourage
stability in California's recycling markets. It has become very
apparent that without strong recycling markets, it will be.
extremely difficult to meet the waste reduction targets set in
Assembly Bill 939, the California Integrated Waste Management Act
of 1989. This legislation requires local governments to reduce the
amount of garbage deposited in their landfills 25% by 1995 and 50%
by the year 2000.
The purpose of a recycled product procurement ordinance is twofold;
to insure that a City's purchasing policies encourage use of
recycled products and to provide recycled product suppliers with i
opportunities to compete with non-recycled products by offering
price differentials for their products. In the short term,
purchasing recycled products can be more expensive and time
consuming than traditional purchasing practices. In the long run,
however, it is felt that the combined buying power of California's
local governments can help to stabilize recycling markets and
ultimately work toward overcoming the perceptions that recycled
products are inferior or substantially more costly than their
virgin counterparts.
Council Direction
Earlier this year, the Council indicated interest in pursuing a
recycled product procurement ordinance and directed staff to
develop an ordinance for their consideration. In response to this
direction, staff reviewed recycled product procurement ordinances
and policies from cities and counties throughout California. The
review showed that ordinances and policies currently in use varied
widely with respect to products and materials effected, price
differentials offered, staff resources required to implement and
degrees of restrictiveness. For example, some ordinances were
limited to allowing price preferences for recycled paper and paper
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COUNCIL AGENDA REPORT
Council Agenda Report
Page Two
products. Other ordinances were more encompassing. In addition
to offering price differentials, they required modification of all
purchasing policies and specifications to insure that recycled
products were used in as many cases as possible.
The general consensus, however, was that the ordinances were
effective in increasing the use of recycled products and no major
problems have been encountered with ordinance implementation.
Because most of the ordinances have been in place for only a short
time, none of the cities or counties surveyed had quantified costs
or staff time required to implement the ordinances. Common
suggestions offered for successful ordinances included, keep them
easy to implement and target the most accessible markets.
Recommendation
At the conclusion of the review, it was staff's opinion that a
modified version of the ordinance currently used by the City of San
Diego would work most successfully in the City (see Attachment A) .
This type of ordinance was one of the most commonly used by the
cities and counties surveyed by staff and is closely modeled after
the ordinance prepared by the Local Government Commission. (Copies
of the Local Government Commission ordinance, along with others
evaluated by staff, are available for review in the Administrative
Office. ) Under the recommended ordinance, it would be the City's
policy to:
* use recycled paper for all stationery, envelopes, and printing
needs, as well as in all copy machines that will accept it
* review all purchasing polices and specifications, and where
feasible, restructure them to require the use of recycled
products
* allow up to a ten percent price differential, not to exceed
$1,000 per contract, for suppliers of recycled products
It is staff's opinion that this ordinance would work most
successfully because it's targeted to reach the most important
recycling markets without unduly restricting the City's purchasing
policies. In addition, the ordinance should be relatively easy to
implement and require minimal staff time to monitor. Long term
responsibility for implementing and monitoring the ordinance will
ultimately rest with the City's Solid Waste Coordinator position.
It will be the new position's goal to review all the City's
purchasing policies and specifications within a one year period to
insure that they encourage the use of recycled products and
materials.
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COUNCIL AGENDA REPORT
Council Agenda Report
Page Three
CONCURRENCES:
The Public Works Director and Finance Director have reviewed this
report and concur with the recommendation.
FISCAL IMPACT:
It is very difficult to accurately calculate the fiscal impact of
implementing this type of procurement policy because the costs and
availability of recycled products can vary significantly over a
period of time. Of the cities and counties staff surveyed
regarding their ordinances, none had analyzed cost impacts of
offering price differentials for recycled products. However,
because the ordinance recommended by staff only provides a ten
percent price differential that cannot exceed $1,000 per contract
unless permission is obtained from the City Administrative Officer
or Council, staff does not anticipate the impact to be significant.
In addition, while it is difficult to quantify, attempts to extend
the life of a landfill through recycling are felt to be less costly
than siting and developing new landfills.
ALTERNATIVES:
I. Adoption of an Ordinance that Provides Price Differentials to
Suppliers of Recycled Paper and Paper Products.
Under this alternative, the City could adopt a procurement
ordinance that is limited to providing price differentials of
up to ten percent to suppliers of recycled paper and paper
products. The County of San Luis Obispo currently uses this
type of procurement ordinance.
While adoption of this type of ordinance would represent a step
in the right direction, staff is not recommending that it be
pursued as its' effect on the City would be minimal. The City's
current contract for copy . services requires the use recycled
paper (this encompasses the vast majority of the City's office
related paper use) . Therefore, the only office related paper
products that would be effected by this policy would be limited
City stationery, specialty report paper, envelopes, and computer
paper. The City only spends slightly over $6,000 annually to
purchase these types of supplies.
ATTACM(ENTS:
* "1" - Recycled Product Procurement Ordinance for the City of
San Luis Obispo
* "2" - County of San Luis Obispo's Procurement Ordinance
-3
ORDINANCE NUMBER (1990 SERIES)
OAN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
INSTITUTING A RECYCLED PRODUCT PROCUREMENT POLICY
WHEREAS the volume of material disposed of at the sanitary
landfill used by the City has been increasing annually, and
WHEREAS, sanitary landfill space is at a premium, and it is
becoming increasingly difficult to site new landfills, and
WHEREAS, much of the material that enters the wastestream can
be recycled and reused or incorporated in the manufacture of new
products, and
WHEREAS, City participation in and promotion of recycling
programs can significantly reduce the volume of material entering.
the wastestream thereby extending landfill life expectancy and
Creducing expenses, and
WHEREAS, for recycling programs to be effective, markets must
be developed for products which incorporate post consumer materials
in their manufacture.
NOW THEREFORE, BE IT ORDAINED, by the Council of the City of
San Luis Obispo as follows:
SECTION 1. Section 3.24.080 is hereby added to the Municipal
Code to read as follows:
A. It is the intent of the City Council that the City of San
Luis Obispo take a leadership role not only in recycling
its waste products but also in the purchase of recycled
products for use in the delivery of City services. It
is the purpose of this section to provide direction to
the City Administrative Officer in the procurement and
use of recycled products. For the purpose of this
ordinance recycled materials are defined as any materials
(e.g. glass, paper, plastic, etc. ) that are separated by
type, reprocessed by industrial methods, and used as raw
Cmaterials for the manufacture of new products.
e4L#
Ordinance No. (1990 Series) O
Recycled Product Procurement Policy
Page Two
B. It is the policy of the City of San Luis Obispo to
purchase and use recycled products whenever possible to
the extent that such use does not negatively impact
health, safety, or operational efficiency.
C. It is the policy of the City of San Luis Obispo to
encourage the purchase of products which can be recycled
or reused.
D. The City will purchase and use recycled paper for
masthead stationery, envelopes and printing purposes.
In addition, recycled paper shall be purchased and used
in all copy machines which will accept it. City staff
will encourage the copier industry to develop high-speed
copiers which will accept recycled paper.
E. City departments shall examine their purchasing
specifications and, where feasible, restructure them to
encourage the use of products which incorporate recycled
materials in their manufacture.
F. A ten percent (10%) preference, not to exceed $1, 000.00
per contract, may be given to recycled products. The
fitness and quality of the recycled product must be at
least equal to unrecycled products as determined by the
City. The preference percentage shall be based on the
lowest bid or price quoted by the supplier or suppliers
offering non-recycled products.
G. Price preferences may be offered in excess of the lot
ceiling established in this ordinance, if it can be shown
that purchase of a recycled product or material will
result in greater long term savings to the City. Award
of _a bid in excess of the ceiling,. however, requires the
approval of the City Administrative Officer or City
Council as established in the City's Purchasing Manual.
SECTION 2.. This ordinance, together with the names of
councilmembers voting for and against, shall be published once in
. full, at least (3) days prior to its final passage, in the
Telegram-Tribune, a newspaper published and circulated in this
city. This ordinance shall go, into effect at the expiration of
thirty (30) days after its final passage.
Ordinance No. (1990 Series)
O Recycled Product Procurement Policy
Page Three
INTRODUCED AND PASSED TO PRINT by the Council of the City of
San Luis Obispo at a meeting on the - . - day of , 1990,
on motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
MAYOR. RON DUNIN
OATTEST:
CITY CLERK PAM VOGES
APPROVED:
City A ministrative Officer
City Attorney
. Public works Director�-
Odh\debrecy
ORDINANCE NO.
AN ORDINANCE AMENDING THE COUNTY CODE ALLOWINGA PREFERENCE TO
THE SUPPLIERS OF RECYCLED PAPER
The Board of Supervisors of the County of San Luis Obispo, State of California
ordains as follows:
SECTION I: Section 2.36.031 of the County Code is hereby added to read as
follows:
2.36.031 Recycled Paper. (a) The Purchasing Agent shall give a preference to
suppliers of recycled paper or paper products, as set forth in Public Contract Code
Section 10398. The fitness and quality of the recycled paper or paper products
must be at least equal to unrecycled.
If the total Cost of recycled paper or paper products is not more than
10 A higher than the lowest bid for unrecycled paper/paper products, then the
Purchasing agent shall award the bid to the supplier of the recycled paper/paper
Products.
(b) Total preferences granted shall not exceed the total specified in Public
Contract Code 10398.
SECTION II: This ordinance shall take effect and be in full force and effect
thiKY (30) days after its passage;•and before the expiration of fifteen (15) days
after passage of this ordinance, it shall be published once with the names of the
members of the Board of Supervisors voting for and against the ordinance in the
Telegram Tribune, a newspaper of general circulation published in the County of San
Luis Obispo, State of California.
INTRODUCED at a regular meeting of the Board of Supervisors held ion
The — day of 1989s and PASSED and ADOPTED by the Board �I
Of Supervisors of the County of San Luis Obispo, State of California, on
the day of 1989, by the following roll call vote,
to wit:
AYES:
NOES:
ABSENT
ABSTAINING:
ATTEST:
a roan o e oar o uperr sora
County of San Luis Obispo
P.Ounr,y we an10 State of California
of the Board of Supervisors,Clerk,
County of San Luis Obispo,
State of California
ESEAL3
ORDINANCE CODE PROVISIONS APPROVED
AS TO FORM-AND CODIFICATION:
JAMES B. LINDHOLM. JR.
County Counsel
Pu Loun ounce
DATED: C¢cf • 6 - (r( 14
jr/38870/Jrl
10/20/89 Attachment .Two �� _�