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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 � i��llllf��ini���► City of san tuts osispo 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. ��� v�► uIIi�I�pn�u���IIU city of san tins osispo 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 �� _�