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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/15/2022 - FIRST READING OF ORDINANCE NO. 019, 2022 AMENDING Agenda Item 22 Item # 22 Page 1 AGENDA ITEM SUMMARY February 15, 2022 City Council STAFF Molly Saylor, Senior Sustainability Specialist Katy McLaren, Lead Climate Specialist Judy Schmidt, Legal SUBJECT First Reading of Ordinance No. 019, 2022 Amending Article XIII, Chapter 12 of the Code of the City of Fort Collins, Regulating Disposable Bags and Mitigating Other Sources of Single Use Plastic Pollution. EXECUTIVE SUMMARY The purpose of this item is to consider adoption of amendments to Ordinance No. 026, 2021, which bans distribution of plastic bags and imposes a disposable bag fee on paper bags provided by large grocers, to (the “Disposable Bag Ordinance”). These amendments are intended to clarify and align certain provisions of the Disposable Bag Ordinance with the Plastic Pollution Reduction Act (C.R.S. Section 25-17-501 et seq.) subsequently adopted by the Colorado Legislature. The amendments included in this Ordinance will: • Maintain timeline for bag changes for large grocers (effective May 1, 2022); • Adopt the State’s policy that charges a 10-cent fee per paper bag; • Adopt the State’s policy that splits the paper bag fee revenue 60-40 (City-grocer); • Maintain the City’s existing exemption for all income-qualified program recipients; • Allow further exemptions and exceptions to be developed and granted via administrative rule with notice to Council before such exemptions become effective; • Align definitions to the State’s policy, either by adopting the exact wording or by aligning to the intent of the definition in cases where the policies are structured differently; and • Update and align other non-substantive elements of the local Ordinance. STAFF RECOMMENDATION Staff recommends adoption of Ordinance on First Reading. BACKGROUND / DISCUSSION Reducing Plastics Pollution is an adopted Council Priority, which aligns with the community’s goal to produce zero waste by 2030 as well as the goal to sustain and improve the health of the Cache la Poudre River and watershed. Reducing plastic pollution by implementing the Fort Collins Disposable Bag Ordinance is an Our Climate Future strategy in support of the Zero Waste Neighborhoods Big Move. Past Council Action • 2020-2021 - Council identified mitigating plastic pollution as a priority and worked with staf f over the course of 2020 to craft the Disposable Bag Ordinance (Ordinance No. 026, 2021) which was adopted February 16, 2021 and affirmed by voters on April 6, 2021. All Council materials are inventoried at <https://ourcity.fcgov.com/plastics>. Agenda Item 22 Item # 22 Page 2 • January 25, 2022 - Work Session to present staff recommended changes to the Disposable Bag Ordinance based on recent community engagement and to increase alignment between the City Ordinance and the State of Colorado Plastic Pollution Reduction Act. Overview of Disposable Bag Updates Figure 1. Proposed changes to align and amend the Disposable Bag Ordinance to be complementary to State policy and maintain local focus on equity and timing. Additional details on the context of these recommendations are includ ed in the Council materials from the https://www.fcgov.com/cityclerk/agendas.php and in Attachment 1. Next Steps Staff anticipates the following next steps: • Continue supporting early roll-out with grocers and stakeholders (Feb); • Council consideration of updated Ordinance on Feb 15 and March 1 ; • Continue exploring partnership opportunity with People First and innovative approaches, such as bag banks, to support the community through these changes; • Launch community-wide communications and outreach campaigns (Mar-Apr); • Ordinance goes into effect May 1, 2022; • Continue checking in with grocers and disproportionately impacted stakeholders (May -ongoing); and • Per the January 25 Work Session, the City Manager will notify Council prior to any administrative changes related to exemptions (ongoing). BOARD / COMMISSION RECOMMENDATION While the Natural Resources and Economic Advisory Boards did not make a formal motion, both did note support for direction of the work. Draft meeting minutes that summarize the conversation will be included with Second Reading. PUBLIC OUTREACH Public outreach on changes to the Disposable Bag Ordinance are summarized in Attachment 2. ATTACHMENTS 1. Staff Recommended Changes (PDF) 2. Stakeholder Engagement (PDF) 3. Powerpoint Presentation (PDF) Staff Recommended Updates to Fort Collins Disposable Bag Ordinance with State Comparison Note: The State’s Plastic Pollution Reduction Act addresses disposable bags and expanded polystyrene (Styrofoam). The following table compares only the elements of the two policies related to disposable bags. For more information on expanded polystyrene, see staff memo from September 21st, 2021. Element of Regulation Fort Collins Ordinance State Bill Staff Recommendation Recommendation No. Items regulated Plastic and Paper Bags Plastic and Paper Bags No changes – bag policies align NA Entities regulated Large grocers over 10,000 square feet with majority of typical grocery departments. All stores and retail food establishments (excepting restaurants meeting certain requirements and small stores). Maintain: Keep timeline for grocer implementation in 2022, integrating other types of stores through the State’s policy in 2023. 1 Implementation date May 1, 2022 - Plastic bag ban and paper bag fee. January 1, 2023 - Paper and plastic bags for fee January 1, 2024 - Plastic bag ban (paper bag fee continues) July 1, 2024 - Local regulation permitted if “as or more stringent.” Maintain: Keep timeline for grocer implementation in 2022, integrating other types of stores through the State’s policy in 2023. 1 Fee amount 12-cents/paper bag10-cents/paper bagAlign: Change Fort Collins’ fee to 10-cents/paper bag per grocer preference of state-wide consistency 2 Fee recovery 50-50 split (City - grocer). 60-40 split (City - grocer).Align: Change Ordinance to reflect 60-40 split between City and grocer(respectively) to be consistent.Note: The City recovers 6-cents per bag in both scenarios, the impact is only to grocers. 3 Fee use by City Various waste-related activities outlined in Disposable Bag Fee Study, aligned with State Bill. Administrative and enforcement costs and any recycling, composting, or other waste diversion programs or related outreach or education activities. No recommended changes – policies align. NA Fee exemptions Recipient of an income- Recipient of State or Federal Maintain: Keep the City’s broader 4 ATTACHMENT 1 qualified program. food assistance program. allowance for who can receive an income-qualified exemption as an important local equity element. Other exceptions/exemptions N/A N/A Add: Based on stakeholder engagement, add language to the City’s Ordinance allowing the City Manager to make administrative rules to exempt other types of hardships. Note: Per Councilmember feedback, the City Manager will notify Council before a new exemption goes into effect. 5 Pre-emption Not addressed. Repeals blanket local pre-emption effective July 1, 2024; permits local government measures at least as stringent as State Bill on or after July 1, 2024 Maintain: Continue local implementation with original timelines, as written in local Ordinance, acknowledging there will be an approx. 1.5 year gap before the pre-emption is repealed. 1 Definitions and Non-Substantive Clean-up Disposable Bag Definition unclear on whether online shopping, pick-up and delivery are included. Definition of what is not considered a disposable bag lists many types of in-store bags. Clearly includes pick-up and delivery. Definition of what is not considered a disposable bag is more inclusive than Fort Collins’ Ordinance. Align: Local Ordinance will clearly include online shopping, pick-up and delivery. Align: Use the State’s definition to expand what is not considered a disposable bag. 6 Reusable Bag Definition intended to avoid stores from switching to thicker plastic film bags under the guise of “reusability”; sets high standards for the type of bags that can be given away by stores and includes a “machine washable” Definition intended to avoid stores from switching to thicker plastic film bags under the guise of “reusability”; sets high standards for the type of bags that can be given away by stores but without machine-washability requirement. Align: Rework local definition of reusable bag to align to the State’s policy for consistency. Note: Staff has learned very few wholesale reusable bags are labeled as machine washable and supports removing this to not be overly 6 requirement. restrictive of stores offering promotional bags. Staff will continue to recommend bags be washed regularly as a best practice. Paper Bag Paper bags must be made from at least 40% post-consumer paper material (i.e. 40% recycled material). Paper bags must be made from 100% post-consumer paper material (i.e. 100% recycled material). Align: Change local wording from to 100% to reflect the State’s standard. 7 Grocer Fee Revenue Plan Requires grocers to create a Grocer Fee Revenue Plan outlining how they will spend their fee revenue. N/A Add: Clarifying wording that grocers may apply fee revenue to support efforts to reduce plastic pollution and improve recycling and waste reduction, in alignment with the way the City is permitted to use its revenue. 7 Signage Does not specifically require grocers to post signage. Requires grocers to prominently post signage about the carryout bag fee. Align: Integrate the same wording as the State’s policy. 7 Enforcement and fees City enforcement with standard code violation penalties. Allows City to define fines and penalties. No recommended change. NA Fee collection Remittance cadence undefined. Quarterly remittance. Align: Add language to Fort Collins Ordinance defining quarterly remittance. 7 1 Stakeholder Engagement Summary Key Takeaways ·Most people feel ready for these changes and will appreciate clear information on the Ordinance details in advance ·Many people appreciate the opportunity to receive free reusable bags ·Continuing to build relationships with disproportionately impacted stakeholders and grocers will help ease the transition ·Relationships will build a foundation to continue developing, testing, and implementing strategies to ease burdens on disproportionately impacted stakeholders Stakeholder-Specific Feedback Grocers ·Who we spoke to: ·King Soopers ·Safeway ·Trader Joes ·Lucky’s Market ·Whole Foods ·Wal-Mart ·Sprouts ·Target ·Sam’s Club ·Natural Grocers ·Total of 17 meetings with 40 grocer employees so far with 8 more meetings scheduled for February. ·Approach: Staff scheduled three preparation and engagement meetings with each chain between December and February. The first two meetings focused on providing an overview of the Ordinance and grocer requirements, including how to complete the Grocer Fee Revenue Plan. Staff has used this engagement opportunity to receive feedback on different elements of the Ordinance, feeding into Recommendations 1 and 5 for Council’s consideration. ·What we heard: ·Grocers have encountered these Ordinances in other cities and often have systems that can transfer to Fort Collins stores. ·Grocers are looking to understand the specifics of our Ordinance to get ready. ·Several grocers have corporate policies that support or align with this Ordinance. ·Several grocers mentioned they appreciate the partnership and support received in advance of implementation and that they have a long runway to get ready. ·The majority of grocers support aligning to the State’s fee amount and City- grocer split to increase consistency across the State. ·Some grocers also shared concerns about short-term supply chain impacts on prices and availability of reusable and paper bags. ·Generally, there are a lot of pressures on grocers at the moment, ranging from COVID impacts on staffing and supply chains to more local issues like the Boulder fires and customer tensions. ATTACHMENT 2 2 Disproportionately impacted stakeholders · Who we spoke to: · Seniors (e.g., some individual members of Senior Advisory Board, Senior Center patrons) · People with physical, intellectual, and developmental disabilities (e.g., People First members, unaffiliated community members with disabilities) · Low-income residents (e.g., CARE Housing Residents) · Over 30 community members across all groups · Note: Members of each of these groups may intersect with the others, for example, many seniors we spoke to also have a disability · Approach: Staff went to where people are in the community, offered information about the Ordinance and facilitated open conversation around what questions or concerns people had and what ideas they had to make the transition to the new bag rules easier. Whenever possible, staff prioritized deeper conversations to understand perspectives thoroughly and to build relationships and trust with these communities. · What we heard:  · Many people   Will seek to avoid paying the 12-cents by bringing reusable bags.  Already use reusable bags, although sometimes forget them.  Support moving away from disposable plastic grocery bags.  Have experienced these changes in other cities they’ve lived in or visited.  Feel ready to make the change.  Expressed respect that the voters approved the Ordinance.  Like the idea of getting free reusable bags and wanted to understand where to buy reusable bags.  Are aware of the impact of plastic bags on the environment. · Several people  Are concerned about not having plastic bags to reuse for purposes such as cleaning litter boxes and lining trash cans.  Are interested in more stores making cardboard boxes available to carry out groceries (similar to the approach used currently at Costco, Sam’s Club, and Natural Grocers).  Felt concerned about the hygiene of reusable bags and hopes City will encourage people to wash bags regularly.  Shared observations that some will be upset about the cost but believe the low-income exemptions will help.  Were curious what grocers think of the change.  Mentioned there will be an adjustment period and that it may be hard for some at first.  Liked that the Ordinance does not apply to small grocers.  Like plastic bags because of how easy they are to use and will miss them  Use in-store plastic film recycling and wish more people would use it to recycle plastic bags.  Feel confused about the State’s policy and how it will interact with our local Ordinance.  Feel confused about grocery delivery and pick-up under the Ordinance.  Expressed that they were unaware of the impacts of paper bags on the environment. 3  Wanted to make sure that the changes were communicated to their community through effective channels.  Said they had a hard time picturing what to do at the cash register when using reusable bags or paying for paper bags.  Dislike regulations generally. Highlight: Storyboarding Based on feedback from People First (a local group of community members with intellectual and developmental disabilities who advocate to reduce and remove barriers to equitable community access), staff will leverage more “storyboard” based communication materials to help people understand what to do at the checkout. Storyboards can help visual learners, people with intellectual and developmental disabilities, people who speak other languages, and the general public. This builds on existing best practices for communicating waste guidelines visually. Staff is exploring a deeper partnership with People First and The Arc of Larimer County to create storyboards related to the Disposable Bag Ordinance. The final product will be integrated into the community-wide communications and outreach campaign this spring. More about People First and The Arc of Larimer County available at: https://thearcoflarimercounty.org/about-us/ https://thearcoflarimercounty.org/what-we-do/people-first/ Presented by:Adoption of Disposable Bag Ordinance Updates02-15-22Katy McLarenLead Sustainability SpecialistLindsay ExEnvironmental Services DirectorATTACHMENT 3 STRATEGIC ALIGNMENTEnvironmental Health• 4.4 Zero waste• 4.9 Poudre River healthBUDGETProgram funded by dedicated bag fee revenue• $120k in 2022 2Plastics PollutionCOUNCIL PRIORITYPlastics Pollution• Microplastics• Macroplastics 3Engagement ThemesReady to goSupportive, with some help neededConcernOutreach approach:• Go to where people are• Relationship building •“What questions or concerns do you have?”•“What could we do to make this easier?”Outreach to:• Seniors• Community members with low/moderate incomes• Community members with disabilities• Grocers 4Council AdoptionThe Disposable Bag Ordinance will be updated to:Maintain timeline for bag changes for large grocersAdopt State’s 10-cent fee per paper bagAdopt State’s bag fee revenue 60-40 (City-grocer) splitMaintain broad exemption for all income-qualified program recipientsAllow further exemptions via administrative rule with Council notificationAlign definitions to State’s policyUpdate and align other non-substantive elements of the local Ordinance -1- ORDINANCE NO. 019, 2022 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ARTICLE XIII, CHAPTER 12 OF THE CODE OF THE CITY OF FORT COLLINS, REGULATING DISPOSABLE BAGS AND MITIGATING OTHER SOURCES OF SINGLE USE PLASTIC POLLUTION WHEREAS, by adoption of Resolution 2020-118 on December 15, 2020, City Council directed development of an ordinance regulating the use of disposable bags to protect the public health, safety, and welfare, to maintain and improve the health of the Cache la Poudre watershed and to further the City's Climate Action Plan and Road to Zero Waste; and WHEREAS, by adoption of Ordinance 026, 2021 (the “Ordinance”), on February 16, 2021, City Council amended Chapter 12 of the Code of the City of Fort Collins (City Code) to establish regulations regarding disposable bags and mitigation of other sources of single use plastic pollution by prohibiting large grocers from providing disposable plastic bags and requiring payment of a $0.12 disposable bag fee for disposable paper bags effective May 1, 2022; and WHEREAS by adoption of Resolution 2021-023 on February 16, 2021, City Council referred the Ordinance to the voters at the April 6, 2021, municipal election and the voters approved the Ordinance at that election; and WHEREAS, the Colorado Legislature subsequently enacted the Plastic Pollution Reduction Act (the “Act”) by adoption House Bill 21-1162, which was signed by the Governor of Colorado on July 6, 2021; and WHEREAS, the Act limits the use of disposable plastic bags and expande d polystyrene products statewide while preserving certain regulatory authority for local government as more fully set forth therein; and WHEREAS, City Council desires to modify the Ordinance to clarify and align certain provisions of the Ordinance with the Act to the extent appropriate and consistent with the goals and purposes of the Ordinance and to protect the public health, safety and welfare and serve the best interests of the residents of Fort Collins. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS AS FOLLOWS: Section 1. That the foregoing recitals are hereby incorporated herein as findings of the City Council. Section 2. That the following definitions set forth in City Code Section 12-301 are hereby amended to read as follows: Disposable bag shall mean a any bag that is not, other than a reusable bag, provided by a large grocer to a customer at a checkout stand, cash register, point of sale, or other point of departure by any retail establishment for the purpose of to transport transporting and carry carrying away purchased items purchased at away from the store, whether such items are delivered, picked up at curbside, or purchased at a checkout stand, cash register or other point of sale or departure -2- from the store. A disposable bag may be made primarily of paper (a disposable paper bag) or plastic (a disposable plastic bag) or other material that does not meet the standards for a reusable bag. Disposable bag shall not include: (1) bags used by consumers inside the store, before the point of sale, to: a. package bulk items, such as fruit, vegetables, nuts, grains, candy or small hardware items package loose or bulk items, such as fruits, vegetables, nuts, grains, candy, or greeting cards; nails, bolts, screws, or other small hardware items; live insects, fish, crustaceans, mollusks, or other small species; and bulk seed, bulk livestock feed, or bulk pet feed; b. contain or wrap frozen foods, meat, or seafood, fish, flowers, potted plants, or other items that, if they were to come in contact with other items, could dampen or contaminate the other items; or c. contain or wrap flowers, potted plants, or other items where dampness may be a problem; or d. contain unwrapped prepared foods or bakery goods. (2) bags used to protect a purchased item from damaging or contaminating other items when placed in a reusable bag; (3) bags provided by pharmacists to contain prescription drugs; or (4) newspaper bags, door-hanger bags, laundry-dry cleaning bags, or bags sold in packages containing multiple bags for uses such as food storage, garbage, pet waste, or yard waste. Disposable bag fee shall mean a fee collected pursuant to the provisions of this Article upon each disposable paper bag provided by a large grocer to and used by customers to transport goods from the store. The amount of the disposable bag fee shall be twelve ten cents ($0.12$0.10) per bag. Reusable bag shall mean a bag that is: (1) is designed and manufactured to withstand repeated uses over a period of time and have a minimum lifetime of one hundred twenty -five (125) uses; (2) made from a material that can withstand regular machine washing; (3) if made from plastic material, not made of plastic film where thickness is measured in mils; (42) designed with the capa bility can carry at least minimum of twenty-two (22) pounds over one hundred seventy -five (175) feet .; (3) has stitched handles; (4) is made of cloth, fiber, or other organic or inorganic fabric, including recycled materials such as polyethylene terephth alate (PET); and (5) is not made predominantly of plastic derived from natural gas, petroleum, or a biologically based source, such as corn or other plant sources. -3- Vendor share shall mean sixfour cents ($0.06$0.04) of the disposable bag fee. Section 3. That City Code Section 12-302(b) is hereby amended to read as follows: . . . (b) No large grocer shall provide a disposable paper bag to a customer at the point of sale unless such bag is made of at least forty from one hundred percent (40100%) recycled or other post-consumer content paper material that is one hundred percent (100%) recyclable and designed to carry purchases out of stores . . . . Section 4. That City Code Section 12-303 is hereby amended to read as follows: (a) For each disposable paper bag a large grocer provides to a customer, the large grocer shall collect from the customer, and the customer shall pay, at the time of purchase, the disposable bag fee. At the time of purchase, whether in person or online, a large grocer shall collect from the customer, and the customer shall pay, the disposable bag fee. . . . (e) The vendor share of all disposable paper bag fees collected by a large grocer may be retained by the large grocer and used in accordance with this subsection (e). Each large grocer must create a plan for its use of the vendor share to implement the disposable bag fee program in accordance with this subsection (e)and encourage customer use of disposable bags, which plan shall be approved by the City prior to expenditure of the vendor share. A plan for use of the vendor share shall be submitted for City approval for each calendar year from 2022 through 2025, inclusive, and for each 4-calendar year calendar period thereafter. An approved plan may be amended with the approval of the City. Each large grocer must use its vendor share of disposable paper bag fees collected to implement and administer its approved plan. An approved plan may also include, but is not limited to, reimbursement of expenses directly related to implementation of this Article, for example for signage, staff training, and support for customers in advance of the initiation of the disposable bag fee, as well as ongoing expenses for compliance and promotion of the use of reusable bags and for plastic pollution and waste reduction in their store or in the community. No penalties or fines assessed for noncompliance may be paid using disposable bag fee revenues. . . . Section 5. That City Code Section 12-304(a) is hereby amended to read as follows: (a) All disposable paper bag fees collected in excess of the vendor share shall be paid on a quarterly basis by the large grocer to the City of Fort Collins Finance Department and used for the operation and administration of the waste reduction program. . . . Section 6. That City Code Section 12-305 is hereby amended to read as follows: Sec. 12-305. Exemptions-Low-income relief and other exemptions. -4- (a) A large grocer may provide a disposable paper bag to a customer at no charge if the customer presents, at the time of purchase, a benefit card or similar documentation approved by the City Manager, reflecting participation in a federal, state, county or City income-qualified aid program, including but not limited to benefits delivered via Electronic Benefits Transfer (EBT) such as the federal Supplemental Nutrition Assistant Program (SNAP) or Supplemental Nutrition Program for Women, Infants and Children (WIC), or such other indicia of need as determined by the City Manager from time to time. (b) The City Manager may adopt other exemptions, in addition to the low-income exemption set forth in subsection (a) above, from payment of the disposable bag fee based on undue hardship, which may include disability or medical conditions that prevent the use of reusable bags or shopping in a store, or unique customer service situations experienced by large grocers. The City Manager shall adopt such additional exceptions in accordance with the following: (1) All such additional exemptions shall be set forth in writing and shall include, at a minimum, a description of the exemption and any documentation of qualifications required to claim such exemption, a description of the undue hardship the exemption will address while preserving the purpose of this Article, and the date on which the additional exemption shall become effective. (2) The City Manager shall publish any additional exemption prominently on the City’s website and shall notify and provide a copy of the additional exemption to the City Council not less than thirty (30) days before the additional exemption is scheduled to become effective. (3) The City Manager may delay the scheduled effective date of or withdraw any additional exemption to address City Council or other concerns. Any such delay or withdrawal shall be published in the same manner used in publishing the original additional exemption and the City Manager shall notify City Council of any such delay or withdrawal. Section 7. This Ordinance is necessary to protect the public health, safety, and welfare of the residents of the city and covers matters of local concern. -5- Introduced, considered favorably on first reading, and ordered published this 15th day of February, A.D. 2022, and to be presented for final passage on the 1st day of March, A.D. 2022. __________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on this 1st day of March, A.D. 2022. __________________________________ Mayor ATTEST: _____________________________ City Clerk