Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/19/2014 - ITEMS RELATING TO DISPOSABLE BAGSAgenda Item 21 Item # 21 Page 1 AGENDA ITEM SUMMARY August 19, 2014 City Council STAFF Susie Gordon, Senior Environmental Planner SUBJECT Items Relating to Disposable Bags. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 099, 2014, Amending Chapter 12 of the City Code to Establish Regulations Regarding Disposable Bags. (Option 1) B. First Reading of Ordinance No. 112, 2014, Amending Chapter 12 of the City Code to Establish Regulations Regarding Disposable Bags (Option 2) At the May 13, 2014 Work Session, City Council directed staff to prepare an ordinance to reduce the number of disposable bags distributed by grocery stores at checkout registers. On July 1, Ordinance No. 099, 2014 was adopted by a vote of 5-2 (nays: Weitkunat, Troxell) on First Reading. Council directed staff to postpone Second Reading of Ordinance No. 099, 2014 to August 19, to allow more time for Councilmembers to review public input on disposable bags. An informational meeting held July 30 (attended by 50-60 people) allowed the public to receive answers from staff and Councilmembers on specific questions regarding the proposed ordinance. The “Option 2” ordinance has also been developed for Council’s consideration. Option 2 has been written at the request of multiple Councilmembers to take a new approach at an ordinance that could help reduce the use of disposable bags in Fort Collins. STAFF RECOMMENDATION Staff recommends Option 1, whereby Ordinance No. 099, 2014 is adopted on Second Reading with a suggested minor amendment that would make the ordinance automatically expire in five years. This period of time would allow the Council and the community to monitor how effectively disposable bags usage in Fort Collins is reduced as a result of a charge of 10 cents on grocery checkout bags. With respect to Option 2, in the event that Option 1 (Ordinance No. 099, 2014) is voted down and a vote is made to adopt Ordinance No. 112, 2014 on First Reading; the City staff offers a provisional recommendation for adoption contingent on further analysis of implementation details. BACKGROUND / DISCUSSION Council has examined local restrictions on the use of disposable bags for two years. During March and April, staff sought public comment on a proposal designed to reduce single-use bags at grocery stores by as much as 80-90%, based on research about similar ordinances that have been implemented in over 133 communities around the country. Agenda Item 21 Item # 21 Page 2 Subsequently, Council reviewed the proposal, directed staff to bring it forward for formal action, and voted to adopt the ordinance for a “10 cents/bag” requirement for grocery stores in Fort Collins on July 1. At the scheduled Second Hearing on July 15, Council voted for a postponement. Several Councilmembers then requested that staff prepare a second option for consideration at the August 19, 2014 meeting; this proposal departs significantly from the original proposal and is further described below as Option 2. Option 1 is Second Reading of Ordinance No. 099, 2014 as originally presented to Council and adopted on First Reading July 1, 2014. Staff is recommending adoption of the original ordinance, and suggests that Council consider amending the ordinance to add a sunset clause that would terminate the requirement after five years. Creating a specific end-date to the ordinance may help assure the community that if significant reduction in disposable bags usage does not occur as a result of the City’s actions, and therefore the City Council does not elect to deliberately renew the ordinance at some point within the next five years (before December 31, 2019), Fort Collins’ requirement for grocers to charge for disposable checkout bags will expire. Option 2 First Reading of Ordinance No. 112, 2014 amending the City Code would apply the following provisions: 1. All retailers, with the exception of temporary vendors of food products, farmers’ markets, and restaurants (as defined in the Land Use Code) that offer disposable bags to customers for the purpose of holding purchases would be required to do the following: a. Prominently display disposable bag recycling bins at their business locations (and recycle the bags deposited in the bins); b. Provide disposable bags only upon the express consent of the customer after informing the customer of the charge per bag; c. Charge no less than the actual cost per bag for each disposable bag provided including retailers’ costs for being in compliance with the City’s ordinance, and state the number of bags, cost per each and total, as a separate item on the sales receipt. There was an addition to the definition of “disposable bag charge” in the Ordinance compared to the ordinance that was distributed to the public last week. The addition clarifies that the disposable bag charge includes not only the cost of the bag itself to the retailer, but also the costs associated with the disposable bags, such as costs of handling and transporting the bags, and costs to administer the provisions of the Ordinance. d. Maintain records of the disposable bag charges collected, and make them available for audit by the City. 2. Retailers would be allowed to set the cost for disposable shopping bags based on the full cost incurred by the retailer to provide each bag. 3. The City Manager would be directed to evaluate opportunities for use of biodegradable animal waste bags and other refuse bags in City operations, implement City practices that promote reduction of use of disposable bags, and eliminate the use of disposable bags where feasible. 3. The City Manager would be directed to develop an innovative awareness and conservation campaign to educate the public about the financial and environmental costs of using disposable bags. If funds are available, educational materials, the City will produce educational materials for use by retailers upon request. 4. Newspapers that regularly deliver to customers must obtain written consent from customers to use protective plastic delivery bags and may only use them when wet weather conditions are reasonably expected. Agenda Item 21 Item # 21 Page 3 5. The Ordinance sunsets after a one-year period of implementation to allow City Council to evaluate the effectiveness of the implementation of the Ordinance. ATTACHMENTS 1. First Reading Agenda Item Summary (w/o attachments) (PDF) 2. Powerpoint presentation (PDF) Agenda Item 22 Item # 22 Page 1 AGENDA ITEM SUMMARY July 1, 2014 City Council STAFF Susie Gordon, Senior Environmental Planner SUBJECT First Reading of Ordinance No. 099, 2014, Amending Chapter 12 of the City Code to Establish Regulations Regarding Disposable Bags. EXECUTIVE SUMMARY The purpose of this item is to review a proposed ordinance that would require grocers to charge 10 cents for both single-use disposable plastic and paper bags at the check-out stand. All revenues from the sale of bags would be retained by the grocers, who would be required to use 50% of revenues to purchase durable shopping bags to be distributed for free to customers. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION Since 2012, Fort Collins has investigated how to reduce the use of disposable bags in our community. The Council has received three staff reports (February 2013, March 2013, and May 2014) about options available for local jurisdictions to stem the flow of waste that is produced by single-use shopping bags. The 2013 proposal for a disposable bags fee ordinance was defeated on a split vote by City Council (3-3); it would have required grocers to charge a fee of 10 cents per single-use disposable plastic or paper bag, with the revenue to be split between grocers and the City. At the May 13, 2014 work session, staff presented a modified version of the ordinance. Council offered comments and requested staff to bring the ordinance back for adoption. As written, the proposed ordinance: • Requires grocers to apply a minimum cost of 10 cents per single-use disposable plastic or paper bag at the check-out register - Strictly defines the disposable bags as those used to bag up purchases at the point-of-sale and exempts other types of packaging such as produce bags used to contain bulk goods, and plastic bags used to prevent packages of meat from leaking • Provides that all revenue would be retained by merchants - Grocery stores will be required to spend a specified portion (50%) of revenues generated from sales of disposable bags to purchase durable bags that would then be offered at no cost (free) to their customers. The twenty-year history of regulations that have arisen to counter the flow of single-use bags entering the waste stream is well documented. Around the world and throughout the US, demonstrable reductions are ATTACHMENT 1 Agenda Item 22 Item # 22 Page 2 shown to occur when restrictions are placed on the consumption of disposable bags; people become accustomed to bringing their own durable cloth or woven-plastic types of bags to hold shopping purchases. Typically grocery stores are targeted because of their 60% share in communities’ bags usage. In communities where mature programs have shown great success, such as San Francisco, regulations may be expanded to include other types of merchants/retailers. As discussed at previous Fort Collins City Council meetings, the number of US communities that have adopted restrictions on plastic and paper bags continues to grow. It includes a broad geographic distribution of cities from Washington, D.C., to Austin and Dallas, TX, Basalt, Aspen, Telluride, and Boulder in Colorado, San Jose, CA, Montgomery County, MD, and most recently Chicago. In a compelling illustration of effectiveness, Boulder’s 10-cent/bag ordinance has achieved a 68% reduction in single-use bags since it went into effect in July 2013. Fort Collins’ ordinance is not aimed at banning plastic bags (nor paper ones), which is another approach that has been taken elsewhere. In Fort Collins, grocery store customers will continue to have a choice to receive disposable shopping bags as long as they are willing to pay for them along with their other purchases. The purpose of adopting a local ordinance is to prevent the negative impacts that are attributed to disposable bags: • Contributing to the volume of discarded material that enters landfills, albeit a nominal amount of about 220 tons per year in Fort Collins • Climate change: a source of 772 metric tons of carbon dioxide equivalent (CO2e) emitted from Fort Collins • Litter and habitat degradation, including in natural areas and water conveyances • Reduction in value of recyclables (plastic bags are a contaminant when mixed with single-stream items such as paper, cans and bottles), and • Excessive maintenance costs at recycling plants, where plastic bags routinely tangle up conveyer belts and equipment. Information from the literature is often used to define how many disposable bags, on average, most people use since actual data from the grocery industry, which is reluctant to impart proprietary information, is difficult to obtain. Brendle Group, a local consulting firm hired by the City to evaluate options for reducing consumption of single-use bags in October 2012, reported that an annual 342 bags per capita are used in Fort Collins, of which 60% (205 bags) come from grocery stores. It may be easier to reconcile each person’s experience with this number when it is broken down to four bags per week. Nonetheless, the total number of bags estimated to be used in Fort Collins yearly - over 52 million - is so large as to be hard to comprehend. Finding alternatives to single-use products such as disposable bags is an important objective of Fort Collins’ 2013 Road to Zero Waste Plan and adopted Zero Waste goals for the community. Learning new habits to use durable bags is the first step toward other new “reuse” patterns that become incorporated into people’s daily lives Adoption of the ordinance is expected to have the following results: • Encourage source reduction and re-use, leading to expanding efforts to other products • Help meet goals to divert trash from landfills and reduce greenhouse gas emissions • Reduce “life-cycle” impacts of single-use bags - such as impacts from material extraction and production -- by transitioning to a bag type with lower life cycle impacts • Reduce litter and pollution in the community, and globally, including plastic bags in trees and waterways. FINANCIAL / ECONOMIC IMPACTS A cost of 10 cents per shopping bag will create a new income stream for the 20 grocery stores in Fort Collins - as much as $1.6 M in the first year of implementation. As the table below shows, half of this revenue applied to Agenda Item 22 Item # 22 Page 3 the purchase of durable bags suggests everyone in the community could potentially receive at least three free durable shopping bags in the first year. Estimated Revenue from Sales of Disposable Grocery Check-out Bags 2014 2015 2016 Fort Collins' population (DOLA projections) 154,131.00 156,982.42 159,886.60 Estimated number of disposable bags used at 342/person/year (assumes reduction by half every year due to behavior change) 52,712,802.00 26,843,994 13,670,304 Number of bags (60%) from grocery stores 31,627,681.20 16,106,397 8,202,182 Charge per disposable bag sold $.10 $.10 Revenue generated at grocers from bag fee $ 1,610,640 $820,218 Percent of revenue to be spent by grocers on purchase of reusable bags 50% 50% Amount of revenue available to be spent on purchase of reusable bags $805,320 $410,109 Number of reusable bags that could be purchased by grocers using disposable bags revenue $0.35/bag 2,300,914 1,171,740 $0.75/bag 1,073,760 546,812 $1.50/bag 536,880 273,406 Annual number of free reusable bags available per citizen $0.35/bag 15 7 $0.75/bag 7 3 $1.50/bag 3 2 Staff anticipates that distribution of free bags may be accomplished various ways, at the discretion of the grocery stores, such as rewarding customers who have earned “loyalty points”, as part of special promotional events or sales, or, supplying bags to certain customer groups (e.g., in support of food distribution at local food pantries). The City intends to offer grocers durable-bag logo design options but not to require that they use a prescribed design. On the other hand, at 10 cents per bag, it could cost the average citizen as much $20.52 per year in new costs if they elect to not switch to using durable shopping bags. The benefits of having fewer disposable bags to clean up in public areas will save the City money; however, staff is unable to quantify the costs savings to overall litter programs from a reduced number of disposable bags. Having fewer disposable bags will also save money at recycling plants in Denver, where Fort Collins’ recyclables are taken for processing, and will improve their efficiency and profit margin. ENVIRONMENTAL IMPACTS An ordinance restricting the use of single-use disposable bags will have a small but measurable impact on the community’s waste stream. According to Brendle Group, an estimated 220 tons/year of plastic bags from Fort Collins are sent to landfills for disposal, which represents 0.2% of the waste stream that Fort Collins sends for landfill disposal (no data were available for disposable paper bags). Both single-use plastic and paper bags cause other types of environmental damage. Plastic is a very visible problem in maritime states and communities, where a serious consequence of plastic bag pollution is lethal harm to marine life that ingests bags or get tangled in them, and plastic litter can float around (for example, in large garbage “patches” that have now been found in all the world’s oceans) and wash onto shores. For landlocked Fort Collins, plastic bag litter may disappear with the wind or be broken down by sunlight and weather into smaller pieces. These bits of plastic are still pollutants, even if they don’t resemble the bags they started off as; however, the magnitude of environmental problems caused by plastic particulates in the soil and other substrates are poorly understood. Agenda Item 22 Item # 22 Page 4 On the other hand, critics of restrictions on bags will point out that replacement bags, such as cotton fabric bags, create their own carbon footprint and may not be environmentally sustainable because of reliance on fertilizer, pesticides, and herbicides. The report by Brendle Group concluded that reusable bags made from cotton or non-woven plastic have lower life-cycle impacts across these categories than any single-use bag (assuming the bag is used many times). According to a 2007 report by Sustainability Victoria (Australia), which compared life cycle analyses of shopping bag alternatives, reusable, non-woven plastic (polypropylene) bags were found to achieve the greatest environmental benefits. That study reported that “reusable bags have lower environmental impacts than all of the single-use bags; a substantial shift to more durable bags would deliver environmental gains through reductions in greenhouse gas, energy and water use, resource depletion and litter.” While plastic “film” bags and paper shopping bags are both recyclable, there is insufficient data on bag consumption and recycling quantities to estimate their current recycling rate in Fort Collins. There are at least 25 sites where plastic bags are locally accepted for recycling, including all grocery stores in town. Paper bags are widely recyclable, not only at public drop-off locations but also in single-stream curbside collection programs offered by residential haulers. Social Impacts One of the most oft-heard arguments against changing to durable bags is the potential for pathogens such as bacteria to be carried on the cloth bags brought into stores by shoppers to hold their purchases. Two articles published in the US in 2012 brought this issue to light, which has caused some to be concerned about the spread of health epidemics. While staff has been unable to find any science-based research or evidence that correlates reusable bags with human health impacts, there is no question about the importance of regularly washing durable bags. This is an important message to underscore, along with the suggestion that shoppers may wish to designate a specific bag to be used to hold any meat purchases. Charges for disposable bags may be waived by grocery stores for shoppers who use food stamps. Another way to minimize negative impacts on low-income citizens is for stores to donate durable bags to organizations like the Fort Collins Food Bank for use in distributing free food. Enforcement An implementation date of January 2015 is recommended to allow grocers to prepare for the requirement to charge for shopping bags. A violation of the proposed ordinance will constitute a civil infraction. In the first few months of implementation, it would be appropriate to apply an educational approach that ensures grocers understand the new requirements; followed later by enforcement (citations) if/when compliance is not achieved. As part of the ordinance, grocers will be required to provide data to the City on the number of disposable bags sold to customers; this information will allow Environmental Services staff to monitor stores’ implementation actions. Implementation In order to provide awareness about the new program to decrease the use of disposable bags, a contest will be held to create attractive, fun, and Fort Collins-specific artwork to decorate durable bags. Staff will research bag manufacturers’ products and select a sturdy, good quality bag that can be ordered in bulk quantities at a price of around $1.00 each (or lower, if manufacturers can deliver a washable bag that meets the City’s specifications for durability). Throughout the summer, staff will solicit entries in the art contest, with the goal of awarding a winner in September/October. The resulting artwork/graphics will be prepared for use on bags and an order will be placed by the City for as many as 6,000 durable bags to be given away to citizens later in the year, in Agenda Item 22 Item # 22 Page 5 anticipation of the ordinance going into effect in January 2015. Grocers, and other merchants and retailers, will be invited to use the contest-winning artwork on the bags they purchase for distribution to their customers. (Staff has learned that some stores are willing to consider this offer, while others are unable to make a commitment to print a Fort Collins-specific bag until and unless they receive corporate approval.) BOARD / COMMISSION RECOMMENDATION At its April 16, 2014 meeting, the Natural Resources Advisory Board (NRAB) unanimously recommended that Council move forward with an ordinance regulating single-use disposable bags. PUBLIC OUTREACH During 2014, a variety of public engagement methods were used to obtain comments about the proposal to limit disposable bags. On multiple occasions, letters and e-mail messages were sent to grocery store representatives to inform them of the City’s interest in adopting local restrictions on disposable bags. In March, two press releases were issued and a “soapbox” article was published in the Coloradoan, as well as e- newsletter articles. An Open House was held on April 3 to allow the public to discuss its comments directly with staff. A dedicated web page was maintained that allowed people to enter comments on-line and comments were also received through Twitter and Facebook messages. After the May 13 work session and in advance of the July 1 hearing, staff again communicated with the grocery store industry and local stores to apprise them of final recommendations for the proposed ordinance. ATTACHMENTS 1. Natural Resources Advisory Board memo, April 14, 2014 (DOCX) 2. Public Comments (DOCX) 3. Other Communities-Regulations and Results (DOCX) 4. Work Session Summary, May 13, 2014 (PDF) 5. Powerpoint presentation (PDF) 1 Disposable Bags Ordinance City Council August 19, 2014 Regular Meeting Susie Gordon, Sr. Environmental Planner ATTACHMENT 2 2 Background • November, 2012 worksession – City investigating range of options to limit disposable bag – Triple Bottom Line analysis (consultants) • March, 2013 regular meeting – vote (3-3) on ordinance whereby grocers must charge for bags; City split revenue with grocers • May 13, 2014 worksession – Council revisited options, directed staff to bring to hearing • July 1, 2014 regular meeting – First Reading of Ordinance No. 099 (approved 5-2 vote) – Second Reading postponed to August 19 3 Goal of Disposable Bag Ordinance • Contribute to waste reduction and re-use, identified as key strategies to achieve Zero Waste – Provide financial motivation to engage in re-use – Lead to further re-use habits • Also: – Divert trash from landfills – Help reduce greenhouse gas emissions – Reduce life-cycle impacts of single-use bags (material extraction, production, disposal, etc.) – Reduce stray litter and pollution in the community, and globally, including plastic bags in trees and waterways 4 Over 133 US City/County Bag Regulations Key Ordinance Details Results Austin, TX 2013 Bans single-use disposable plastic & paper shopping bags 90% reduction single-use disposable bag waste Boulder, CO 2013 Charges 10¢ / disposable plastic or paper grocery bag 68% reduction in use of plastic & paper grocery bags since ordinance effective July, 2013 San Jose, CA 2010 Bans single-use disposable plastic bags in all retail stores, charges 10¢ / paper bag Reduced plastic bag litter 89% in storm drain systems, 60% in creeks and rivers, and 59% in streets and neighborhoods Washington D.C. 2010 5¢ / disposable plastic & paper bags (food or alcohol stores) 80% reduction in usage of plastic and paper bags 5 Survey of Other Communities City Public health issues Impacts to low income residents Shoppers go outside city Austin, TX No direct situations have ever been found No reports. Gave away 1,000s of bags to low income residents Haven’t seen anything drastic happen Los Angeles, CA Since January start date, haven’t received a single complaint on health issues Not an issue. Stores required to give free bags to residents on state assistance programs. None. Most cities near LA have similar ordinances Port Townsend, WA No reports of any health issues Very few issues; people have become used to the change Sales tax revenues have held steady 6 City Public health issues Impacts to low income residents Shoppers go outside city San Jose, CA No instances have been reported Haven’t seen any impacts to low- income residents No loss in revenue WA DC No issues have occurred. DC staff recommends folks wash bags 1Xweek Worked with non- profits to target low- income families and gave out 100,000 bags Recent survey showed people are not leaving the District to shop. Seattle, WA City has never seen any documented issues with public health None documented; ordinance exempts people in state and federal assistance programs Chain-stores have reflected a 5 % reduction 7 Option 1 - Ordinance No. 099, 2014 • Adopted on First Reading, July 1 – Grocers must charge minimum 10 cents per bag at the check-out register – Revenue retained by grocery store; 50% spent on purchase of durable bags for customers – Maintain records of charges collected and make them available for audit by the City • Second Reading postponed for more public input – Grocery industry representatives – Public Q&A meeting held July 30, attended by 50-60 people 8 Option 2 – Ordinance No. 112, 2014 All retailers (except temporary vendors of food products, farmers’ markets, & restaurants) must: • Provide on-site recycling for disposable plastic and paper bags • Provide disposable bags only upon express consent of customers • Charge at minimum actual cost per bag (including complying with City ordinance) and list on sales receipt • Maintain records of charges collected and make them available for audit by the City 9 Option 2 (continued) • City directed to evaluate options to use biodegradable waste & refuse bags in operations, and reduce/eliminate disposable bags as feasible • City will develop education campaign on financial & environmental costs of using disposable bags, make materials available for use by retailers • Newspapers that deliver to customers must obtain written consent to use protective plastic bags, and may only use them in wet weather conditions • Council reviews after 1 year to evaluate options for moving forward 10 Ordinance Options for City Council to Consider Option 1 Second Reading of Ordinance No. 099, 2014 Option 2 First Reading of Ordinance No. 112, 2014 - 1 - OPTION #1 ORDINANCE NO. 099, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 12 OF THE CODE OF THE CITY OF FORT COLLINS TO ESTABLISH REGULATIONS REGARDING DISPOSABLE BAGS WHEREAS, the City, through its policies, programs, and laws, supports efforts to reduce the amount of waste deposited into the landfill and to pursue waste minimization as a long term goal by emphasizing waste prevention efforts; and WHEREAS, the use of plastic or paper disposable bags has severe impacts on the environment on a local and global scale, including greenhouse gas emissions, litter, harm to wildlife, atmospheric acidification, water consumption, and solid waste generation; and WHEREAS, even when recycled, plastic disposable bags cause operational problems at recycling processing facilities; and WHEREAS, although disposable paper bags are perceived by some as being more environmentally friendly than disposable plastic bags, the manufacturing, transport, recycling, and disposal of paper bags consumes a substantial amount of environmental resources; and WHEREAS, Fort Collins consumers use approximately fifty (50) million disposable bags from food stores each year; and WHEREAS, the disposable bags provided by food stores make up approximately sixty (60) percent of the disposable bags used by Fort Collins consumers; and WHEREAS, some food stores do not provide disposable bags to their customers, thereby avoiding the environmental impacts associated with the use of such bags; and WHEREAS, the City’s taxpayers bear the costs associated with the negative impacts of disposable bags; and WHEREAS, from an overall environmental and economic perspective, the City believes that the best alternative to the continued use of disposable bags is to promote the use of more durable, reusable bags; and WHEREAS, studies document that when customers are charged for disposable bags, the use of such bags is dramatically reduced; and WHEREAS, the City Council believes that requiring food stores to charge for the use of disposable bags would help address the environmental problems associated with such use, would relieve City taxpayers of the costs incurred by the City in connection therewith, and would be in the best interests of the City. - 2 - 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 Chapter 12 of the Code of the City of Fort Collins is hereby amended by the addition of a new Article IX which shall read in its entirety as follows: ARTICLE IX DISPOSABLE BAGS Sec. 12-137. Definitions. The following terms used in this Chapter shall have the meanings ascribed to them below unless the context clearly indicates otherwise: Disposable Bag shall mean a bag, other than a reusable bag, provided 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 transporting and carrying away items purchased at the store. 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; b. contain or wrap frozen foods, meat, or fish; 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. Food store shall mean a retail business within the City limits that is located in a permanent building containing at least five thousand (5,000) square feet of retail space, - 3 - that operates year round as a full-line, self-service market offering for sale staple foodstuffs, meats, produce, dairy products or other perishable items for off-premise human consumption, and that provides disposable bags to customers. Food store shall not include: (1) temporary vending establishments for fruits, vegetables, packaged meats, and dairy; (2) vendors at farmers' markets or other temporary events; (3) businesses at which foodstuffs are an incidental part of the business; For the purposes of subsection (3) above, food sales will be considered to be “incidental” if such sales comprise no more than two (2) percent of the business’s gross sales in the City as measured by the dollar value of food sales as a percentage of the dollar value of total sales at any single location. Reusable Bag shall mean a bag that: (1) is designed and manufactured to withstand repeated uses over a period of time; (2) is made from a material that can withstand regular cleaning and disinfecting; (3) is at least two and one-quarter (2.25) mils thick if made from plastic; (4) is designed to have a minimum lifetime of seventy (75) uses; and (5) has the capability of carrying a minimum of eighteen (18) pounds. Disposable bag charge shall mean a cost imposed by a food store pursuant to the provisions of this Article upon each disposable bag used by customers to transport goods from the store. Sec. 12-138. Disposable bag charge requirements. (1) For each disposable bag a food store provides to a customer, the food store shall collect from the customer, and the customer shall pay, at the time of purchase, a disposable bag charge of no less than ten cents ($0.10). (2) All food stores shall record on the customer transaction receipt the number of disposable bags provided to the customer and the total amount collected from such customer for the disposable bag charge. (3) No food store may provide a rebate or in any way reimburse a customer for any part of the disposable bag charge. - 4 - (4) No food store may exempt any customer from any part of the disposable bag charge for any reason except as stated in Section 12-140. (5) Nothing in this Article shall prohibit food stores from providing incentives for the use of reusable bags through credits or rebates for customers who bring their own bags to the point of sale for the purpose of carrying away goods. (6) Nothing in this Article shall prohibit customers from using bags of any type that the customers bring into the store or from carrying away goods purchased by such customers and that are not placed in a bag. Sec. 12-139. Retention and administration of the disposable bag charge. (1) Subject to the requirements of subsection (2) below, all monies collected by a food store for any disposable bag charge may be retained by the food store. (2) Each food store must use at least fifty (50) percent of the revenue derived in each calendar year from the imposition of disposable bag charges to procure and distribute to its customers, free of charge, reusable bags. (3) The City Manager shall administer the disposable bag charge and may adopt administrative rules and regulations to implement the provisions of this Article. Sec. 12-140. Exemptions. A food store may provide a disposable bag to a customer at no charge if the customer provides proof that he or she is a participant in a federal or state Food Assistance Program, to the extent permissible under the relevant program. Sec. 12-141. Audits. (a) Each food store shall maintain accurate and complete records of the disposable bag charges collected under the provisions of this Article and the number of disposable bags provided to customers, and shall also maintain such books, accounts, invoices, or other documentation necessary to verify the accuracy and completeness of such records. It shall be the duty of each food store to keep and preserve all such documents and records, including any electronic information, for a period of three years from the end of the calendar year of such records. (b) If requested, each food store shall make the foregoing records available for inspection and audit by the City during regular business hours so that the City may verify compliance with the provisions of this Article. To the extent permitted by law, all such records shall be treated as confidential commercial information. - 5 - Sec. 12-142. Violations and penalties. Any person who violates any provision of this Article, whether by acting in a manner declared to be unlawful or by failing to act as required, commits a civil infraction and shall be subject to the penalty provisions of Subsection 1-15(f) of this Code. Sec. 12-143. Severability. If any provision, paragraph, clause or word of this Article is declared to be invalid by a decision of any court of competent jurisdiction, it is hereby declared to be the legislative intent that the effect of such decision shall be limited to the provision that is expressly invalidated. Such decision shall not affect, impair or nullify this Article as a whole or any other part, and the rest of this Article shall continue in full force and effect. Section 3. The provisions of this Ordinance shall take effect January 2, 2015. Section 4. This Ordinance is necessary to protect the public health, safety, and welfare of the residents of the City, and covers matters of local concern. Introduced, considered favorably on first reading, and ordered published this 1st day of July, A.D. 2014, and to be presented for final passage on the 19th day of August, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 19th day of August, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 1 - OPTION #2 ORDINANCE NO. 112, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 12 OF THE CODE OF THE CITY OF FORT COLLINS TO ESTABLISH REGULATIONS REGARDING DISPOSABLE BAGS WHEREAS, the City, through its policies, programs, and laws, supports efforts to reduce the amount of waste deposited into the landfill and to pursue waste minimization as a long term goal by emphasizing waste prevention efforts; and WHEREAS, the use of plastic or paper disposable bags has severe impacts on the environment on a local and global scale, including greenhouse gas emissions, litter, harm to wildlife, atmospheric acidification, water consumption, and solid waste generation; and WHEREAS, even when recycled, plastic disposable bags cause operational problems at recycling processing facilities; and WHEREAS, although disposable paper bags are perceived by some as being more environmentally friendly than disposable plastic bags, the manufacturing, transport, recycling, and disposal of paper bags consume a substantial amount of environmental resources; and WHEREAS, some retailers do not provide disposable bags to their customers, thereby avoiding the environmental impacts associated with the use of such bags; and WHEREAS, the City’s taxpayers bear the costs associated with the negative impacts of disposable bags; and WHEREAS, from an overall environmental and economic perspective, the City believes that the best alternative to the continued use of disposable bags is to promote the use of more durable, reusable bags; and WHEREAS, studies document that when customers are charged for disposable bags, the use of such bags is dramatically reduced; and WHEREAS, the City Council believes that requiring retailers to charge for the use of disposable bags would help address the environmental problems associated with such use, would relieve City taxpayers of the costs incurred by the City in connection therewith, and would be in the best interests of the City. 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. - 2 - Section 2. That Chapter 12 of the Code of the City of Fort Collins is hereby amended by the addition of a new Article IX which shall read in its entirety as follows: ARTICLE IX DISPOSABLE BAGS Sec. 12-137. Definitions. The following terms used in this Chapter shall have the meanings ascribed to them below unless the context clearly indicates otherwise: Consent to purchase shall mean a customer understands there is a charge for a disposable bag and agrees, by words or actions, to purchase a disposable bag. Disposable bag shall mean a bag, other than a reusable bag, provided to a customer at a checkout stand, cash register, point of sale, or other point of departure by any retailer for the purpose of transporting and carrying away items purchased at the retail location. Disposable Bag shall not include: (1) bags used by consumers inside the retail location, before the point of sale, to: a. package bulk items, such as fruit, vegetables, nuts, grains, candy or small hardware items; b. contain or wrap frozen foods, meat, or fish; 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 prevent 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) door-hanger bags, dry cleaning bags, or bags sold to the end user in packages containing multiple bags for uses such as food storage, garbage, pet waste, or yard waste. Disposable bag charge shall mean a cost imposed by a retailer for each disposable bag it provides to a customer; the minimum amount of which is the actual cost to the retailer in acquiring such disposable bag. Actual cost includes, but is not limited to, the cost of transportation and handling of each disposable bag, the cost of each bag, and the cost to administer the requirements of this ordinance. - 3 - Newspaper company shall mean any corporation, business, or company that provides to customers any publication, printed on newsprint, intended for general circulation, and published regularly at short intervals, containing information and editorials on current events and news of general interest. Retailer shall mean any person selling, leasing or renting tangible personal property or services at retail. Retailer shall include any of the following: (1) auctioneer; (2) salesperson, representative, peddler or canvasser, who makes sales as a direct or indirect agent of, or obtains such property or services sold from, a dealer, distributor, supervisor or employer; and (3) charitable organization or governmental entity that makes sales of tangible personal property to the public, notwithstanding the fact that the merchandise may have been acquired by gift or donation or that the proceeds are to be used for charitable or governmental purposes. Retailer shall not include: (1) temporary vending establishments for fruits, vegetables, packaged meats, and dairy; (2) vendors at farmers' markets, garage sales, or other temporary events; or (3) any establishment that is a type of restaurant as defined in the City’s Land Use Code. Reusable Bag shall mean a bag that: (1) is designed and manufactured to withstand repeated uses over a period of time; (2) is made from a material that can withstand regular cleaning and disinfecting; (3) is at least two and one-quarter (2.25) mils thick if made from plastic; (4) is designed to have a minimum lifetime of seventy (75) uses; and (5) has the capability of carrying a minimum of eighteen (18) pounds. Sec. 12-138. Disposable bag requirements. - 4 - (a) For each disposable bag a retailer provides to a customer, the retailer shall collect from the customer, and the customer shall pay, at the time of purchase, a disposable bag charge. (b) No retailer may provide, and no customer may receive, a disposable bag unless such customer has given consent to purchase such bag. (c) Each retailer that provides disposable bags to customers shall record on the customer transaction receipt the number of disposable bags provided to the customer, the charge per disposable bag, and the total amount charged for the disposable bag or bags received. (d) Each retailer shall provide, and prominently place at any retail location at which disposable bags are provided to customers, a disposable bag recycling bin for use for recycling of disposable bags. Each such retailer shall recycle all recyclable disposable bags collected for recycling. (e) No retailer may provide a rebate or in any way reimburse a customer for any part of the disposable bag charge. (f) No retailer may exempt any customer from any part of the disposable bag charge for any reason except as stated in Section 12-142. (g) Nothing in this Article shall prohibit a retailer from providing incentives for the use of reusable bags through credits or rebates for customers who bring their own bags to the point of sale for the purpose of carrying away goods. (h) Nothing in this Article shall prohibit customers from using bags of any type that the customers bring into a retail location or from carrying away goods purchased by such customers and that are not placed in a bag. Sec. 12-139. Retention of the disposable bag charge. All monies collected by a retailer for any disposable bag charge may be retained by the retailer. Sec. 12-140. Subscription newspapers. (a) Any newspaper company that provides for regular delivery of newspapers to customer premises must obtain customer written consent for the use of protective newspaper bags for delivered newspapers each time the customer begins or renews a newspaper subscription. A newspaper company must permit the customer to request that protective newspaper bags only be used when wet weather conditions are reasonably expected. - 5 - (b) If requested, each newspaper company shall make the foregoing records available for inspection and audit by the City during regular business hours so that the City may verify compliance with the provisions of this Article. Sec. 12-141. Administrative rules and regulations. The City Manager may adopt administrative rules and regulations to implement the provisions of this Article. Sec. 12-142. Exemptions. Any retailer that participates in a federal or state food assistance program may provide a disposable bag to a customer at no charge if the customer provides proof that he or she is a participant in a federal or state food assistance program, to the extent permissible under the relevant program. Sec. 12-143. Audits. (a) Each retailer shall maintain accurate and complete records of the disposable bag charges collected under the provisions of this Article, the cost of acquiring such bags, and the number of disposable bags provided to customers. Each retailer shall also maintain such books, accounts, invoices, or other documentation necessary to verify the accuracy and completeness of such records. It shall be the duty of each retailer to keep and preserve all such documents and records, including any electronic information, for a period of three years from the end of the calendar year of such records. (b) If requested, each retailer shall make the foregoing records available for inspection and audit by the City during regular business hours so that the City may verify compliance with the provisions of this Article. To the extent permitted by law, all such records shall be treated as confidential commercial information. Sec. 12-144. Violations and penalties. Any person who violates any provision of this Article, whether by acting in a manner declared to be unlawful or by failing to act as required, commits a civil infraction and shall be subject to the penalty provisions of Subsection 1-15(f) of this Code. Sec. 12-145. Severability. If any provision, paragraph, clause or word of this Article is declared to be invalid by a decision of any court of competent jurisdiction, it is hereby declared to be the legislative intent that the effect of such decision shall be limited to the provision that is expressly invalidated. Such decision shall not affect, impair or nullify this Article as a whole or any other part, and the rest of this Article shall continue in full force and effect. Sec. 12-146. Sunset. - 6 - The provisions established in this Division shall terminate and be of no further force and effect on April 1, 2016, unless this sunset provision is repealed or modified by the City Council. Section 3. The City Manager is directed to evaluate opportunities for use of biodegradable animal waste and other refuse bags in City operations, implement City practices that promote the reduction of use of disposable bags, and eliminate the use of disposable bags wherever feasible. Section 4. The City Manager is directed to develop an awareness and conservation campaign to educate the public about the financial and environmental costs of using disposable bags. If funds are available to produce educational materials as part of said awareness campaign, the City Manager shall make them available upon request to retailers that are subject to the requirements of this Ordinance. Section 5. The provisions of this Ordinance shall take effect April 1, 2015. Section 6. This Ordinance is necessary to protect the public health, safety, and welfare of the residents of the City, and covers matters of local concern. Introduced, considered favorably on first reading, and ordered published this 19th day of August, A.D. 2014, and to be presented for final passage on the 2nd day of September, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 7 - Passed and adopted on final reading on the 2nd day of September, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk