HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/02/2021 - FIRST READING OF ORDINANCE NO. 027, 2021, APPROVIN Agenda Item 15
Item # 15 Page 1
AGENDA ITEM SUMMARY March 2, 2021
City Council
STAFF
Molly Saylor, Senior Sustainability Specialist
Judy Schmidt, Legal
SUBJECT
First Reading of Ordinance No. 027, 2021, Approving and Appropriating an Off-Cycle Funding Request.
Contingent on the Outcome of the April 6, 2021, Election, to Support Initial Implementation of Ordinance No.
026, 2021, Establishing Regulations Regarding Disposable Bags.
EXECUTIVE SUMMARY
The purpose of this item is to consider adoption of an appropriation ordinance which provides $87,500 in
funding to support the initial 2021 roll-out of the Disposable Bag Ordinance and the Waste Reduction Program,
including outreach and engagement and making free bags available to the community.
STAFF RECOMMENDATION
Staff recommends adoption of this Ordinance on First Reading.
BACKGROUND / DISCUSSION
Reducing Plastic Pollution is an adopted Council Priority, which aligns with the community’s goal to sustain
and improve the health of the Cache la Poudre River and watershed and its Road to Zero Waste goal to
produce zero waste by 2030.
Past Council Action
Work Sessions:
• February 11, 2020 - Staff provided plastic pollution context and learnings from peer communities. Council
provided direction for action both on micro and macro pollution.
• October 27, 2020 - Staff provided a progress update on plastic pollution awareness work, including
impacts of COVID-19 on plastic use, policy development and community engagement, and a staff
recommendation. Councilmembers indicated interest in moving plastic bag policy to a ballot measure.
• December 8, 2020 - Staff provided Council a suite of policy options for a plastic pollution ordinance and
related ballot measure. Council provided feedback on these policy elements and other logistics.
• January 12, 2021 -Staff shared a draft bag ordinance with Council and received feedback on outstanding
policy details, including fee amount and structure, and income-qualified relief. Staff also recommended
funding 2021 ordinance roll-out and engagement.
Regular Meetings:
• December 15, 2020 - Councilmembers adopted Resolution 2020-118 directing staff to draft an ordinance
for Council to discuss at a work session on January 12, 2021.
• February 2, 2021 - Council approved the Disposable Bag Ordinance on first reading and continued
consideration of this related off-cycle appropriation Ordinance No. 027, 2021 on first reading to March 2,
2021.
Agenda Item 15
Item # 15 Page 2
• February 16, 2021 - Council approved the Disposable Bag Ordinance on second reading and adopted
Resolution 2021-023, referring Ordinance No. 026, 2021 to a vote of the registered electors of the city at
the next regular municipal election on April 6, 2021.
Overview of 2021 Funding Ordinance
Contingent upon the outcome of the April election, this appropriation ordinanc e provides $87,500 to support
successful roll-out of the Disposable Bag Ordinance in 2021 including outreach and engagement and to
provide free bags to the community. More information is included in an updated version of the Implementation
Resourcing document shared with Council at the January work session. (Attachment 1)
On an ongoing basis, the Waste Reduction Program will be self -supporting out of the fee revenue generated.
This funding would be used to establish the Program in anticipation of rollout i n 2022, and then the general
fund will be repaid from bag fee revenue by the end of 2023. Specifically, this funding will allow for the
following activities if the Disposable Bag Ordinance is passed by the voters:
• $35,000 to resource outreach and engagement efforts including an awareness and outreach campaign
and provision of reusable bags.
• $52,500 to provide staff capacity to conduct outreach and engagement including support for grocer
planning and coordination of reusable bag distribution.
Projected program revenues are outlined in the table below:
Based on the above projections for revenue, staff anticipates full repayment to the General Fund reserves
could occur before the end of 2023, while also allowing the new Waste Reduction Program costs of ~$270,000
per year to be self-funded and other systems costs to be covered as appropriate.
Staff recommends approval of this appropriation based on learnings from past programs, where it was
observed that proactive outreach and education supports better compliance.
CITY FINANCIAL IMPACTS
The primary impact would be a $87,500 lower reserve balance in 2021 and 2022. Most potential impacts to
City finances have been mitigated by structuring the appropriation amount to be repaid to General Fund
reserves within three years. Based on projected fee revenues, the risk that repayment would not occur in that
window is very minimal unless implementation is significantly delayed.
Agenda Item 15
Item # 15 Page 3
ATTACHMENTS
1. Implementation Resourcing (PDF)
2. Council Finance Committee Feedback (PDF)
3. Powerpoint Presentation (PDF)
Attachment I: Single Use Bag Policy Implementation Resourcing
Recommendation
To fund program implementation from June 2021 until bag fee revenue begins, staff
recommends an interim allocation of $87,500 in 2021. Based on feedback from the January 12th
work session, staff has/will:
• Developed off-cycle funding ordinance language to fund implementation elements from
Jun – Dec 2021.
• Develop a BFO offer for the 2022 budget cycle for funding for the implementation
elements from Jan – July 2022 (projected start date for bag fee revenue to fund the
program).0F
1
Context for Recommendation
To successfully roll out the single use bag policy in May 2022, work will begin in June 2021. The
following table describes anticipated costs, which align with the assumptions made in the fee
study.
Fig 2: Summary of Resource Scenarios for Single Use Bags Policy Implementation
Program element Costs
Reusable bags for low- and
medium-income households
$10,000 *
(3 bags each for 3,000
households)
Communications and
engagement campaigns
$60,000 *
substantial campaign
1.0 FTE to manage program $105,000
Total costs in 2021 off-cycle $87,500
Total costs in 2022 BFO
offer $87,500
Total costs prior to fee
revenue funding availability $175,000
Element details
Staff
1.0 FTE staff member to:
• roll out the program with community and grocers
• conduct equitable communications and engagement campaigns
• coordinate distributing free reusable bags to low- and medium-income households.
• prepare for administration of program
1 This BFO offer could be covered by bag fee revenue and would not impact the General Fund.
ATTACHMENT 1
• develop metrics
• determine any policy updates to increase equity, address other learnings through
outreach
• continue to develop a comprehensive approach to addressing single use plastics (as
capacity allows)
Reusable bags
The City will purchase reusable bags for distribution to low and medium-income households.
Additional reusable bags are anticipated to be purchased using fee revenue once the fee is in
place.
Communications and engagement campaigns
This would fund initial equitable outreach and engagement campaigns.
Attachment II: Council Finance Committee Feedback
During the February 22nd Council Finance Committee meeting, staff outlined why the
appropriation is needed to ensure that the bag ordinance is successful, what deliverables and
outcomes the ordinance seeks, and financial modeling demonstrating how the appropriation can
be repaid from future bag revenue.
Councilmembers present at the meeting shared the following feedback:
• Implementation approach is aligned with the feedback from Council
• Be clear about the goal of the program and focus roll out efforts on goal
• Consider best staffing approach for start-up, evolving and ongoing needs
• Recognize how program needs will change over time and adjust resourcing accordingly
• Consider how to leverage metrics and tracking to make decisions about resourcing over
time
• Post additional context on how fee revenue will be applied to program costs for
community members seeking ballot information
• Ensure that free and low-cost options are leveraged when conducting outreach and
engagement
Based on Councilmember feedback, staff plans to:
• Provide low-income community members bags first and then extend to the broader
community to support a smooth transition.
• Postpone a decision on whether the new FTE will be classified or contractual and work
with HR to determine the best fit.
• Once implementation is underway, monitor the metrics established in the bag ordinance
and leverage ongoing engagement to understand the best way direct resources to
support the community using reusable bags.
• Work with the City Attorney’s Office and City Clerk’s Office to determine what additional
context material can be posted online for community members wanting to learn more
about program costs and fee revenue.
• Will continue using free and low-cost options in addition to paid outreach methods.
ATTACHMENT 2
1Bag Ordinance Implementation Appropriation
Molly Saylor
3-2-2021
ATTACHMENT 3
STRATEGIC
ALIGNMENT
Environmental Health
•4.4 Zero waste
•4.9 Poudre River health
BUDGET
Midcycle funding
•$35K each for
macroplastics and
microplastics
Plastics Pollution
2
COUNCIL
PRIORITY
Plastics Pollution
•Microplastics
•Macroplastics
Learnings & Feedback
•Best practice to resource new regulations for effective roll out and
implementation
•Example: Outdoor Residential Burning
•Community feedback that the most impacted businesses and residents need
support in adapting to new regulations
•Council feedback on ensuring a smooth transition for those most impacted
•Proactive outreach and education supports better compliance
•Tr aining and signage for grocers
•Free reusable bags for low-income residents, awareness for all residents
3
Appropriation Ordinance Details
•Contingent on ballot measure
•$87.5K requested in 2021 to fund start-up costs
•$35k: Outreach and engagement
•$5k –3 free reusable bags each for 1,500 low-income households
•$30k –Robust outreach campaign
•$52.5k: Staff support
•Loan from GF reserves; to be repaid from future fee revenues in 2023
4
Appropriation Ordinance Details
Staff support
•Conduct outreach and engagement
•Support grocer planning
•Coordinate bag distribution
•Prepare for administration of program
•Develop metrics
•Determine any policy updates to increase equity, address other learnings
through outreach
5
Council Finance Committee Feedback
•Implementation approach is aligned with feedback from Council
•Be clear about the goal of the program and focus roll out efforts on goal
•Consider best staffing approach for start-up, evolving and ongoing needs
•Recognize how program needs will change over time
•Post additional context on how fee revenue will be applied to program costs
for community members seeking ballot information
6
Appropriation Ordinance Summary
•Contingent on ballot measure
•$87.5K requested in 2021 to fund start-up costs
•Loan from GF reserves; to be repaid from future fee revenues
7
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ORDINANCE NO. 027, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AND APPROPRIATING AN OFF-CYCLE FUNDING
REQUEST, CONTINGENT ON THE OUTCOME OF THE APRIL 6, 2021, ELECTION,
TO SUPPORT INITIAL IMPLEMENTATION OF ORDINANCE NO. 026, 2021,
ESTABLISHING REGULATIONS REGARDING DISPOSABLE BAGS
WHEREAS, City Council has identified plastics pollution as a priority concern, which
aligns with the City’s Climate Action Plan (“CAP”) goals of reducing greenhouse gasses and
with the community’s Road to Zero Waste goal to produce zero waste by 2030, as well as the
City’s strategic objective to sustain and improve the health of the Cache la Poudre River and all
watersheds within the City; and
WHEREAS, Council has considered and adopted Ordinance No. 026, 2021, Amending
Chapter 12 of the Code of the City of Fort Collins to Establish Regulations Regarding
Disposable Bags and Mitigation of Other Sources of Single Use Plastic Pollution (the
“Disposable Bag Ordinance”) regulating the distribution of disposable bags and future mitigation
of other sources of single-use plastic pollution; and
WHEREAS, Council has adopted Resolution 2020-118 referring the Disposable Bag
Ordinance to a vote of the City’s registered electors at the April 6, 2021, municipal election; and
WHEREAS, contingent on the outcome of the April 6, 2021 election, Council desires to
appropriate funds to support initial implementation of the Disposable Bag Ordinance and the
Waste Reduction Program created thereunder, including outreach, education and engagement
and making free reusable bags available to the community, prior to May 1, 2022, when the
requirements of the Disposable Bag Ordinance go into effect; and
WHEREAS, this appropriation protects the public health, safety and welfare of the
residents of Fort Collins and serves the public purposes of maintaining and improving the health
of the Cache la Poudre watershed and furthering the City's Climate Action Plan and Road to
Zero Waste goals; and
WHEREAS, Article V, Section 9 of the City Charter pe rmits the City Council, upon the
recommendation of the City Manager, to appropriate by ordinance at any time during the fiscal
year such funds for expenditure as may be available from reserves accumulated in prior years,
notwithstanding that such reserves were not previously appropriated; and
WHEREAS, the City Manager has recommended the appropriation described herein and
determined that this appropriation is available and previously unappropriated from the General
Fund and will not cause the total amount appropriated in the General Fund to exceed the current
estimate of actual and anticipated revenues to be received in that Fund during this fiscal year.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
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Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from prior year reserves in the General
Fund the sum of EIGHTY-SEVEN THOUSAND FIVE HUNDRED DOLLARS ($87,500) for
expenditure from the General Fund in 2021 to support initial implementation of the Disposable
Bag Ordinance and the Waste Reduction Program created thereunder, including outreach,
education and engagement and making free reusable bags available to the community, provided
the voters approve City Council referred Ordinance No. 026, 2021, at the April 6, 2021 Election.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
March, A.D. 2021, and to be presented for final passage on the 16th day of March, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 16th day of March, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk