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HomeMy WebLinkAboutMemo - Mail Packet - 02/04/2025 - Memorandum from Amy King re Annual Update on Disposable Bag Ordinance Status & InitiativesEnvironmental Services Department 222 Laporte Avenue PO Box 580 Fort Collins, CO 80522 970-221-6600 Page 1 of 3 MEMORANDUM Date: January 28, 2025 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager Jacob Castillo, Chief Sustainability Officer From: Amy King, Environmental Services Director Subject: Annual Update on Disposable Bag Ordinance Status & Initiatives Bottom Line The purpose of this memo is to provide the City Council with an annual update on the status, implementation, compliance and engagement related to the City’s Disposable Bag Ordinance (DBO), with a particular focus on the progress of reporting from the 19 large grocers that are to comply with the ordinance. These efforts are aligned with: • Council Priority 5, Accelerate zero waste infrastructure and policies • Our Climate Future, Big Move 10 Zero Waste Economy: Business, industry, institutions and government collaborate to recirculate resources and eliminate waste The information below summarizes the ongoing efforts to implement DBO, the influence of the State’s Plastic Pollution Reduction Act (PPRA, CO. House Bill 21-1162) and immediate next steps. Background In February of 2021 the City Council passed DBO, which was later affirmed by voters in the April 2021 election. DBO banned plastic bags and placed a 10-cent fee on disposable paper bags at 19 large Fort Collins grocers starting May 1, 2022. In accordance with the City’s local ordinance, grocers are required to remit 60 percent of each disposable paper bag fee ($0.06 per bag) back to the City of Fort Collins and retain the other 40 Docusign Envelope ID: CB45DC53-9344-42C5-85B1-9D02BFC14A3B Page 2 of 3 percent ($0.04 per bag). Remittance occurs on a quarterly basis. Staff actively track remittance and the fee revenue and expenditure plans of the large grocers in the community. As of December 31, 2024, all 19 large grocers in Fort Collins have been 100 percent compliant with remittance each quarter and the submittal of their annual fee revenue and expenditure plans. Upon analysis of the remittances and expenditure reports, it can be determined that: • 9,794,860 disposable paper bags have been purchased by customers from the 19 large grocers in Fort Collins since May 1, 2022, • $587,692 has been remitted back to the City of Fort Collins since May 1, 2022, from the 19 large grocers, and • In 2024, the 19 large grocers remitted $199,284 from the sale of 3,321,407 disposable paper bags, reflecting a decrease compared to trends observed since May of 2022. In 2024, alongside the 19 large grocers, 107 stores, as defined by the PPRA, have also remitted disposable paper bag fees to the City in accordance with PPRA requirements. • $38,336 has been remitted back to the City by the 107 participating stores from the sale of 638,933 disposable paper bags in 2024. The City’s total revenue from disposable paper bag purchases at stores and large grocers, since May of 2022, amounts to $668,304, which is utilized to fund community outreach, education, and implementation of PPRA and DBO. Staff continues to educate and offer support to impacted businesses. The Environmental Services Department (ESD) conducted rounds of postcard mailings and emails, reaching over 500 businesses. The mailers and emails provided essential information about the upcoming changes and compliance requirements related to PPRA. In November 2024, staff from ESD and the Economic Health Office (EHO) collaborated to provide educational and promotional materials at the Business Appreciation Celebration. Educational materials helped the attending businesses determine whether their business would be affected by new PPRA regulations. Staff from both ESD and EHO will continue to work together to support businesses that are affected by regulatory changes. Docusign Envelope ID: CB45DC53-9344-42C5-85B1-9D02BFC14A3B Page 3 of 3 Next Steps In 2025-2026, ESD staff are committed to further understanding the impacts of PPRA to best educate businesses on the requirements for compliance. ESD will be hiring a Specialist to manage operations and improve processes including remittance tracking and working with the Sales Tax division to improve reporting. At the City Council regular meeting on February 4, 2025, code amendments to DBO, in alignment with PPRA requirements, will be proposed to enable local enforcement of all required stores. For more information on staff engagement on plastic pollution reduction, please refer to the 10.17.24 Memorandum to Council, “Update on Plastic Pollution Reduction Initiatives.” Docusign Envelope ID: CB45DC53-9344-42C5-85B1-9D02BFC14A3B