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HomeMy WebLinkAboutMemo - Mail Packet - 12/6/2022 - Memorandum From Molly Saylor Re: Disposable Bag Ordinance Implementation UpdateEnvironmental Services 222 Laporte Ave. PO Box 580 Fort Collins, CO 80522 970.221.6600 fcgov.com/environmental services 1 MEMORANDUM Date: December 1, 2022 To: Mayor and City Councilmembers Thru: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager Lindsay Ex, Environmental Services Director Caroline Mitchell, Waste Reduction and Recycling Program Manager From: Molly Saylor, Lead Waste Reduction and Recycling Specialist Holly Pummell, Senior Waste Reduction and Recycling Specialist Re: Disposable Bag Ordinance Implementation Update Bottom Line: The purpose of this memorandum is an informational update to City Council. The Disposable Bag Ordinance (DBO) reduced carryout bags from grocers by around 85% since taking effect in May. This is a significant success that occurred faster than anticipated due to rapid community behavior change and successful Ordinance roll out. Disposable Bag Implementation Highlights: - Recent observations at grocers show only a handful of paper bags coming out the door per hour, which is nearly equivalent to the number of bags used by just one or two customers before the DBO was enacted. - Grocery store employees confirm these observations – people are avoiding single-use bags. - Not only have people switched to reusable bags, many are also going bagless. - Very few community complaints or concerns lodged with the City; overall positive feedback. Impact on paper bag fee revenues: - Updated projections from the local Ordinance: Staff have updated initial projections using the first five months of bag fee revenue that takes the rapid shift to reusable bags into consideration. The new projections show revenues will be lower than planning projections from the DBO both in 2022 and ongoing. o Initial Projections: $790k start-up years, $630k ongoing o Updated Projections: $280k ongoing - More revenue is coming: o In 2023 and 2024, the State’s Plastic Pollution Reduction Act (PPRA) will expand bag changes to other large retail stores, which is likely to increase revenues beyond the $280k from DBO. o By mid-2024, all local and State bag changes will be in place and revenues steady. The addition of large retail stores could bring total (DBO + PPRA) bag revenue up to $500k per year. - As new information becomes available: Staff will continue to adjust revenue projections and expenditure plans. Next steps for staff: - Support Fort Collins’ large retailers and community through State bag changes in Q4, including online resources, store signage, communications campaign, personalized business support, and more. - Share a memo with Council in Q2 of 2023, updating revenue projections and spending scenarios. - Continue to monitor revenues and share annual results as part of regular reporting. DocuSign Envelope ID: 43F7B8EF-4770-4B78-BE0B-2C1D72F0A9B0 2 CC: Josh Birks, Sustainability Services Deputy Director DocuSign Envelope ID: 43F7B8EF-4770-4B78-BE0B-2C1D72F0A9B0