HomeMy WebLinkAboutConstituent Letter - Read Before Packet - 8/19/2014 - Letter From Mary Lou Chapman, Rocky Mountain Food Association, Re: Fort Collins Grocery Bag Ordinance -Fee On Customer Disposable Bags1
Date: August 19, 2014
To: Members of Fort Collins City Council
RE: Tonight’s Agenda Item #21, Fee on Disposable Customer Bags.
I want to share some concerns about the proposed ordinance requiring a fee on disposable grocery
bags. I have shared some concerns about the original “Option #1” previously. Option #2 has
some interesting changes, however we only received a copy of it yesterday, so members and I
have had little time to react.
Reading Option #2, and some of the citizen responses around it, we feel that I need to clarify
information regarding retailer costs.
In previous discussions, I had referenced the Boulder Nexus Study, which through their work
found that the average cost to retailers for collecting the fee in their city was 4.4 cents. This was
the figure that they used to calculate the amount of their fee that would be retained by the retailer.
(It made note of the limitations to their study, which would likely have found a higher figure.).
Thus, in my earlier testimony, I stated that if a 10 cent fee was imposed, we asked that the city
allow retailers to keep half and send the other half to the city to help carry out recycling education
programs.
Members, the amount discussed was just that--THE COST FOR IMPLEMENTING THE
COLLECTION OF THE FEE. This cost had no relation to the cost of the bags.
Grocers are/were already providing the bags as a cost of their business, so the cost of any bag was
not included in the amount of the fee, or the amount that retailers retained.
The costs that retailers incur to implement a fee on each bag consists of
Initial implementation and ongoing costs for training of employees and managers, on the
new requirements,
Initial and ongoing education to customers on the fee, both type of bags, etc.,
Technology changes to POS systems to handle the fee and requirements,
Compliance costs for tracking and reporting,
Other ancillary costs such as increased time for transaction completion, packing reusable
bags, checking number of bags, etc. (Slowed down lanes).
In each of the ordinances, the city really needs to take the responsibility for the fee and set the
amount in the ordinance. It should be the same amount for all retailers covered. Having a
portion go back to the city for their education and administrative purposes is common.
The fee needs to be the same for all retailers. Otherwise it
o sets up unfair competition that can’t be addressed by the retailer,
o causes considerable confusion for customers…even greater confusion for visitors
to the city.
o Because of anti-trust concerns, retailers cannot communicate with each other
regarding specific costs and amounts of a fee they would choose.
A fee that is not set by the city causes consumers to erroneously believe that retailers are
somehow getting additional revenue…rather than costing the retailers to implement an
imposed fee.
2
The city needs to provide consistent signage for all locations to avoid customer
confusion. (Additionally, if each retailer provides their own, you may not like the
results!)
We would like to share experience on implementation processes in other cities that have
made the transition work more smoothly.
Another problem with retailers retaining total fee amount:
The current proposals both have retailers keeping the revenue from bag fees. The way
both are stated would logically make each bag a product and subject to taxes paid both
by the retailer and the customer.
We feel that we need the city attorney to weigh in on this concern, so that it is clear for
all.
Finally, I’m wondering how many times I have to share this, as I have shared the
information to city staff several times.
In both proposals there is reference to retailers ascertaining if a customer is a participant
in a state or federal food assistance program. Both state that if retailer has proof they
may give a bag free of charge to that customer.
In all government food assistance programs, it is illegal for any retailer to ask or single
out a recipient for any special treatment. They are mandated to treat these customers
exactly like all other customers. During the Boulder discussions, the State EBT Director
had the question of disposable bag charges specifically addressed by federal officials.
I will attach a copy of the opinion. We will greatly appreciate having that language
removed from your ordinance so that it does not confuse grocers into thinking that the
city has somehow made an exception. They could lose their program licenses for treating
customers differently.
Thank you for your consideration of these specific concerns of our members.
Sincerely yours,
Mary Lou Chapman
President/CEO
Rocky Mountain Food Industry Assn
Serving CO and WY Grocers
P.O. Box 1083
Arvada, CO 80001-1083
303-478-8587, Mobile
303-830-7001, Office
303-424-7114, Fax
marylou@rmfia.org
The RMFIA represents Colorado and Wyoming retail and wholesale grocers and their suppliers. Members include
independent, chain and convenience store operators, their wholesalers, distributors and suppliers. The association
serves as the voice for its members with state, local and federal legislators and regulatory agencies. The mission is to
work to maintain a viable business climate for the food industry throughout Colorado and Wyoming.
3
Reply from USDA Food and Nutrition Service to request from Colorado EBT
Director to clarify the practice of not charging SNAP customers for grocery bags
when other customers are being charged: October, 2012
Message below:
Recently some States have begun charging customers a fee for each
shopping bag (plastic and/or paper) provided by a grocery store. Other
States are considering charging grocery bag fees as well. States’ grocery
bag fees may not be paid for with SNAP benefits. In addition, the Food
and Nutrition Service does not have authority to exempt SNAP clients
from this fee. Therefore, grocery bag fees must be paid for using cash,
credit card, or non-SNAP debit. Stores that give discounts at the point-of-
sale if customers bring their own bags must treat SNAP clients in the same
manner.
If a store wants to give SNAP-only customers a free cloth bag that they can
use when buying groceries, but not provide the free cloth bag to non-SNAP
customers, it would violate the equal treatment requirement in
Section 278.2(b). Only if the store gives them to all of their customers
during a specific period of time would it be allowed for SNAP customers.
R. Scott Barnette
EBT Manager
Colorado Department of Human Services
1575 Sherman Street, #324
Denver, CO 80203
Office: (303) 866-2928 | Cell: (303) 947-6046 | Fax: (303) 866-4403
Email: scott.barnette@state.co.us