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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/01/2022 - SECOND READING OF ORDINANCE NO. 019, 2022, AMENDIN Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY March 1, 2022 Environmental Services STAFF Katy McLaren, Lead Climate Specialist Molly Saylor, Senior Sustainability Specialist Judy Schmidt, Legal SUBJECT Second 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 This Ordinance, unanimously adopted on First Reading on February 15, 2022, adopts 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 wordin g 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 Second Reading. BOARD / COMMISSION RECOMMENDATION Minutes from the Economic Advisory Board and the Natural Resources Advisory Board have been included with second reading since they were not available on first reading. (Attachment 2) ATTACHMENTS 1. First Reading Agenda Item Summary, February 15, 2022 (w/o attachments) (PDF) 2. Economic Advisory Board and Natural Resources Advisory Board Minutes (excerpted) (PDF) 3. Ordinance No. 019, 2022 (PDF) 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 staff 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>. ATTACHMENT 1 COPY 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 included 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) COPY ECONOMIC ADVISORY BOARD TYPE OF MEETING – REGULAR January 19, 2022 4:00 - 6:00 pm via Zoom 1.CALL TO ORDER 4:00pm 2.ROLL CALL •List of Board Members Present o John Parks o Renee Walkup o Thierry Dossou o Blake Naughton o Denny Coleman o Aric Light o Mistene Nugent o Jeff Havens o Braulio Rojas 3.Plastic Bag Update •Presentation – Molly Saylor – 10 minutes o Working on plastic pollution is a city council priority and is in our city’s strategic plan. The program is funded by bag fee revenue of about $120k in 2022. This strategy also supports an Our Climate Future alignment as a move towards zero waste. o In developing Our Climate Future, we learned that more renewing, recycling, and composting was one of the big priorities of our BIPOC community in FC. So, we know that this is an important place to be working, especially working within equity. o This work specifically is centering community and equity. It centers community by making the plastic bag fee revenue available for things that the community might want to lead or co-lead with our city. We are also centering equity by partnering with historically underrepresented groups including people living with a disability. o The Bag Ordinance was passed by City Council in February 2021 and was affirmed by voters in April 2021. It will become effective on May 1, 2022, and ban plastic bags at large grocers (over 10k square feet). Paper bags will then be available for purchase for 12 cents. Half of the 12-cent fee will go to the grocers, and the other half will go to the city. The fee that goes to the city will go to waste reduction measures. Note that participants of federal, state, and local income-qualified programs will be exempt from this fee if they can present a current benefit card. o Since Council adoption and voter approval, we’ve seen: 01/19/2022 – AGENDA Page 7 ATTACHMENT 2 ECONOMIC ADVISORY BOARD TYPE OF MEETING – REGULAR o The Colorado Plastic Pollution Reduction Act passed. o Engagement and collaboration with grocers and disproportionately impacted groups. o A lead sustainability specialist hired to manage this ordinance as well as the programs that it generates via the applied fees. o Just sent out first wave of reusable bags to 1,300 low and moderate-income households, including some tips on how else folks can start getting ready for the change in May. More households will be receiving bags this winter and spring. • Had opportunity to get deep engagement with stakeholders including all 15 large grocers, several disproportionately affected communities (seniors, low-moderate income, disabilities). Largely, people are ready to go. Some have expressed support, but need some tips, guidance, or information before they’re “ready to go.” Grocers fit into these first two categories. There are some concerns, though. These took the form of dislike of the regulation or aspects of it, such as the fee, or imposition of new barriers on people with disabilities or other types of hardships (like chronic long-term illnesses). Some community members are unable to shop in stores, so they would have no choice but to pay that reusable bag fee. o These stories are considered in plans for materials that are given out before the ordinance, into the communication planning, storyboarding, and into recommendations to City Council about how to adapt the ordinance. o Engagement will be ongoing rather than “dip in, dip out.” They will continue to check in with people as time goes on since people can’t predict how things will go. • The Colorado Plastic Pollution Reduction Act Timeline o 2023 - All retailers to charge 10-cents per plastic or paper bag (with some exemptions). 60-40 City-grocer split. o 2024 – Plastic bags banned (fee on paper bags maintained); Styrofoam food containers banned at retail food establishments. • Staff Recommended Changes o Timeline - Maintain the timeline. By tackling the grocers where most of the plastic bags are coming from, we can learn a lot of lessons to help the rest of the community transition over as the 01/19/2022 – AGENDA Page 8 ECONOMIC ADVISORY BOARD TYPE OF MEETING – REGULAR state’s bill comes into effect. o Fees -- Adopt the state’s fee (10 cents) and split (60-40 City- grocer). This is the same revenue from the city perspective. Grocers support this decision so the State can be aligned. o Exemptions - Maintain the exemption for all income-qualified programs (State is more focused on food-based assistance programs. FC will keep the broader exemption) but allow administrative rules for all other exceptions (if we encounter disproportionate barriers, we want to be able to act on opportunities to remove them). o Definitions – Align to State definitions and clean up other non- substantive elements, as identified by Staff. • Next Steps & Timeline o Planning details of the roll-out with grocers and community members. Goal is to make everything clear and as easy as possible for everyone who shops. o Based on Council feedback, we may bring back an updated ordinance draft. The new draft would require council consideration. o March and April will be about community-wide communications and outreach. o Ordinance goes into effect on May 1st, and we will continue checking in with grocers and disproportionately impacted stakeholders.  Discussion – 20 minutes – Board • Q (Renee) Notes that someone buying few items will automatically be given a bag and that employee-packers will pack inefficiently and overuse bags. What is the training plan that sees that the stores will implement these plans? What is the communication plan at the stores? Will there be signage reminding people to bring their bags in? o A (Molly) State language requires that grocers provide signage alerting customers will be charged for paper bags. Additionally, grocers will also be required to create a Fee Revenue Plan (fee revenue cannot be treated as general revenue) that applies to either recovering fees attributed to this ordinance or towards further reducing plastic waste/ increase recycling. A 01/19/2022 – AGENDA Page 9 ECONOMIC ADVISORY BOARD TYPE OF MEETING – REGULAR recommended application of this income is additional signage in parking lot (if they own it) to remind customers to take in their bags.  An additional step in getting grocers prepared has been a series of conversations with grocery store employees on how to work together to make sure everyone has what they need. A major concern was that cashiers are the “front line” of enforcing this mandate and take most of the heat from unhappy customers. QR being created for customers to scan and send feedback to us. o We are working on the training element. There are some lines where we’re city staff and it’s not our business, but customer feedback to baggers when customers are responsible for paying for the bags will likely correct those wasteful bagging behaviors. Some grocers will also allow pick-up customers to choose whether they’d like their groceries bagged or not. • Q (Jeff) If the State is planning on making all plastic bags banned in the upcoming years, why aren’t we taking steps towards doing the same thing now? You’re doing a lot of work for 15 locations now, and next year you’ll have to do the same work for 100 locations. Why not prepare everyone now? o A (Molly) Grocers is where most bags come from, so tackling this now will get us most of the way there. This is also a great learning opportunity to test and see what works and understand how to message this to the community and we’ll be better poised for a smooth transition in the future. o Comment (Thierry) A good strategy here is “nail it and scale it.” Since this is state-wide policy, the success is really the communication. Reach out to a group of people, work with them, and learn what worked and what didn’t work, then apply to other stores sounds like a great strategy to me. • Comment (Braulio) Thinks this is a great project and overdue. This will be difficult because we are changing people’s behaviors. We all grew up without thinking about bags because they were always available. People change behaviors when there’s a financial impact. I don’t see another way to do it but to charge for their behavior. • Q (Braulio)Another element that people can include is a third option to buy a bag that is non-plastic for a little bit more money. Maybe the City 01/19/2022 – AGENDA Page 10 ECONOMIC ADVISORY BOARD TYPE OF MEETING – REGULAR could create bags as a non-profit project. o A (Molly) We are doing something like that. Plastic will be outright banned, but we will be making paper bags available for 10 cents. We still want to discourage paper because, while better for the environment than plastic, still has it’s own cost to the climate (greenhouse gas). We are also giving other options such as, put items directly into cart and take cart out to car. • Comment (Braulio) Notes that this could provide an incentive for store owners to profit from people forgetting their bags and having to buy them. • Comment (Jeff) Some stores also offer reusable bags for sale at checkout so customers can pay a few dollars for a reusable bag rather than 10 cents for a paper bag that they’ll never use again. • Q (John) Recalls a previous presentation stated that 15 stores create 10 million bags in a year. That must be a big impact when it goes from a net cost to a net revenue source. Mentions that Ireland in the early 2000 had a nation-wide plastic bag removal and had a huge positive messaging campaign “keep Ireland green” that had the whole public behind it. Encourages Fort Collins to follow suit with a positive campaign in advance of the ordinance (e.g. “we’re keeping FC green.” or “we are keeping 10 million bags out of landfills.”) Suggests avoiding negative connotation. NATURAL RESOURCES ADVISORY BOARD TYPE OF MEETING – REGULAR January 19, 2022 6:00 – 8:00 pm Via Zoom CALL TO ORDER 6:01 pm ROLL CALL • List of Board Members Present - − Danielle Buttke – Chair − Barry Noon − Dawson Metcalf − Hillary Mizia − Kevin Krause – Vice Chair − Victoria McKennon – New Member • List of Board Members Absent – Excused or Unexcused; if no contact with Chair has been made − Samantha Williams − John Skogman − Avneesh Kumar – New Member a. Disposable Bag Ordinance Review – Molly Saylor, Lead Specialist, provided an overview of proposed changes to the Fort Collins' Disposable Bag Ordinance (May 2022 start date) in the context of the State's recent plastic-focused Bill (HB21-1162). − Discussion | Q + A − Danielle – Q - Does the state ordinance apply to only businesses of a certain size? – A - Yes, the state plastic bag ordinance exempts all Colorado retailers that have 3 locations or less. − Danielle – Q - Given that microplastics make up a large portion of plastic pollution, how can we link this to Our Climate Future (OCF) and our active modes plans to address this issue? – A - Microplastics can be really difficult to manage in some cases, such as tire erosion, but we are hoping to build off this ordinance to develop a larger plastic pollution plan moving forward. Hillary noted this could be a great educational opportunity for community members about wider plastic pollution issues. − Hillary – Q – What kind of reusable bags will be modeled and provided, and are they durable? – A – The city will distribute sturdy, 100% cotton bags and the ordinance itself details how much weight the bag should be able to carry, etc. We are encouraging people to use whatever reusable bags they may already own as opposed to buying new cotton bags to avoid further waste. − Danielle – Q – Given the fast turn-around for this plan and especially the composting decisions, will there be an opportunity to chat before the April 12th Work Session? – A – Yes, the team would love to engage again with the board between now and then. -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 expanded 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 any bag that is not a reusable bag, provided by a large grocer to a customer to transport and carry purchased items 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 -2- sale or departure 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 inside the store to: a. 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, 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 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 customers. The amount of the disposable bag fee shall be ten cents ($0.10) per bag. Reusable bag shall mean a bag that: (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) can carry at least 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 terephthalate (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. Vendor share shall mean four cents ($0.04) of the disposable bag fee. Section 3. That City Code Section 12-302(b) is hereby amended to read as follows: -3- . . . (b) No large grocer shall provide a disposable paper bag to a customer unless such bag is made from one hundred percent (100%) recycled or other post-consumer content. . . . Section 4. That City Code Section 12-303 is hereby amended to read as follows: (a) 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) 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 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: -4- Sec. 12-305. Low-income relief and other exemptions. (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