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Item 11 Staff Report Adopt Resolution Supporting Assembly Bill 11 - Purchasing Preferences for Recycled ProductsDATE: TO: FROM: SUBJECT: COUNCIL AGENDA DATE: 4-19-93 ITEM NO. l` TOWN OF LOS GATOS COUNCIL AGENDA REPORT April 8, 1993 MAYOR AND TOWN COUNCIL TOWN MANAGER ADOPT RESOLUTION SUPPORTING ASSEMBLY BILL 11 PURCHASING PREFERENCES FOR RECYCLED PRODUCTS RECOMMENDATION: Adopt resolution urging the passage of Assembly Bill 11. DISCUSSION: Attached is a copy of Assembly Bill 11, as recently introduced into the California State Assembly by Assembly Member Delaine Eastin. This Bill would require the State to use substantially more recycled paper and other recycled products; it would also authorize the Department of General Services to establish price preferences for paper products, and for compost, glass, oil, plastic, solvents and paint, paving materials, and tires. The Town has adopted a policy of preferring to purchase recycled products. Such purchasing requirements should be encouraged because "recycling" is more than collecting materials; it is collecting them and then reusing them again in the State's economy. We need to stimulate the market demand for recycled products to be successful in reusing the materials that we are aggressively collecting and processing. ENVIRONMENTAL ASSESSMENT: AB11 is not a project as defined under CEQA, and no further action is required. FISCAL IMPACT: None. ATTACHMENTS: 1. Resolution. 2. Summary of AB 11. 3. Copy of AB 11. PREPARED BY: Regina A. Falk Community S RAF:dr CSD014:A:CNCLRPTS\ASSEMBLY.BIL Director 4/8/93 2:30 pm File # DISTRIBUTION: Californians Against Waste Foundation, 926 J Street, Suite 606, Sacramento CA 95814 414 Reviewed by Attorney Clerk Finance Treasurer COUNCIL ACTION/ACTION DIRECTED TO: ATTACHMENT 1 RESOLUTION RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS SUPPORTING ASSEMBLY BILL 11 - PURCHASING PREFERENCES FOR RECYCLED PRODUCTS WHEREAS, Assembly Member Delaine Eastin has introduced Assembly Bill 11 into the California State Legislature; and WHEREAS, Assembly Bill 11 will require the State to use substantially more recycled paper and other recycled products, and will specifically authorize the Department of General Services to establish price preferences for paper products, and for compost, glass, oil, plastic, solvents and paint, paving materials, and tires; and WHEREAS, local governments throughout the State are now mandated, by State law, to collect materials for recycling and reuse, and can be successful in carrying out this mandate only if there is a significant market demand for products made of recycled materials; and WHEREAS, the State of California can have a significant and positive effect on the ability of our society to reuse materials and reduce waste, by mandating purchasing preferences for recycled products; and WHEREAS, the enactment of Assembly Bill 11 would be in the best interests of all the citizens and residents of the State of California, and all the citizens and residents of the Town of Los Gatos. CSD08:A:\RESOS\CS041993. ROO -1- NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE AS FOLLOWS: that the Town of Los Gatos urges that Assembly Bill 11 be enacted into law. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 19th day of April, 1993, by the following vote: COUNCIL MEMBERS: AYES: NAYES: ABSENT: ABSTAIN: SIGNED: NI PEST: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CSD08:A:\RESOS \CS041993. ROO -2- ATTACHMENT 2 SUMMARY OF ASSEMBLY BILL 11 THE CALIFORNIA 'BUY RECYCLED' ACT Simply stated, AB 11 by Assembly Member Delaine Eastin would require state agencies to buy more products made from recycled materials in order to strengthen recycling markets and stimulate job creation in California's fledgling recycling industries. AB 11 is nearly identical to AB 2446 which was approved by the Legislature last year but vetoed by Governor Wilson. Specifically, AB 11 would require the State's procuring agency, the Department of General Services to buy at least 50 percent recycled paper by 1996. The state would also have to buy more recycled tires, oil, plastic, paints, glass and other products eventually totaling 50 percent of all purchases by the year 2000. The mandatory purchasing requirements proposed in AB 11 are recognized by recyclers and economists as the surest way to increase purchases of recycled products on a large scale and stimulate market demand for secondary materials. However, unless the mandatory state purchasing requirements have some kind of cost control mechanism, the State could potentially end up paying too much for its recycled products (Although the data below shows significant cost savings result from buying recycled.) Therefore, AB 11 has incorporated an innovative cost savings provision which ensures that the state won't pay any additional money overall for buying recycled products. This provision requires procuring agencies to purchase the stipulated types and amounts of recycled products without exceeding their existing procurement budgets. If a certain recycled product cost more than the same product made with virgin materials, the agency must conserve in other areas such as purchasing fewer products overall or offsetting the higher cost with savings from other recycled product purchases. These mandatory source reduction activities will save additional tax dollars by eliminating government waste and inefficiency while encouraging resource conservation and reducing solid waste. An independent analysis by the Legislative Analyst's office concurs, that with the inclusion of this provision, AB 11 "...would result in no additional costs to the state, if procuring agencies use their existing funds to increase their purchase of recycled products..." AB 11 is strongly supported by environmentalists, recyclers, and many local governments who recognize it as an important tool to strengthen and stabilize California's struggling recycling markets. FACT SHEET FOR ASSEMBLY BILL 11 * Nearly fifty percent of all paper purchases by the State of California are for computer paper, bond paper, envelopes, and textbook stock. However, in 1990, none of these purchases included recycled paper. In at least three of the above categories, the states of Maryland, New Jersey, New York, Oregon, and Delaware were able to purchase recycled paper. • The results of a regional market survey of retail paper suppliers for the months of November, December, and January of 1992-3 show that recycled fine writing bond paper (20 lbs.) was on average 32.4% cheaper than virgin paper. Similarly, other grades of recycled fine writing paper were significandy less expensive than competing virgin grades. Survey results also showed that recycled Xerographic paper is cost competitive with virgin paper grades. • In fiscal year 1990, the city of San Jose surveyed six product categories including laser toner cartridges, plastic trash bags, and general office supplies. The city saved $3,773 by purchasing recycled as opposed to non -recycled products. • The city of Los Angeles has saved $8 million over the last five years by using recycled asphalt pavement. * AB 11 will not cost taxpayers any additional money. The measure directs state agencies to pay no more for recycled products than they currently pay for non - recycled products. If some recycled products cost more than the same products made with virgin materials, the agency will have to purchase fewer products or offset the higher costs from other recycled product purchases. STATE PURCHASES OF RECYCLED PAPER FOR 1991 (PERCENT OF TOTAL PAPER PURCHASED) Maryland New Jersey New York Oregon California ATTACHMENT 3 CALIFORNIA LEGISLATURE- I993-84 REGULAR SESSION ( ASSEMBLY BILL No. 11 Introduced by Assembly Member Eastin December 7, 1992 An act to amend and repeal Sections 12162,12205, and 12310 of, and to repeal Section 12158 of, the Public Contract Code, relating to recycling. LEGISLATIVE COUNSEL'S DIGEST AB 11, as introduced, Eastin.. Recycled products: purchase requirements. (1) Existing law requires the Department of General Services to give a preference to suppliers of recycled paper products, as defined, of up to 5% of the lowest bid or price quoted by suppliers offering nonrecycled paper products. This bill would authorize the department, in consultation Cwith the California Integrated Waste Management Board, to establish price preferences, recycled content disclosure, recycled product only bids, and cooperative purchasing arrangements for paper products and for compost, glass, oil, plastic, solvents and paint, paving materials, and tires. (2) Existing law requires that by January 1, 1994, at least 40%, and by January 1, 1996, at least 50%, of the total dollar amount of paper products purchased or procured by the department and the Legislature be purchased as recycled paper product. 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Qyr -•►. bo RESOLUTION 1993-50 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS SUPPORTING ASSEMBLY BILL 11 - PURCHASING PREFERENCES FOR RECYCLED PRODUCTS WHEREAS, Assembly Member Delaine Eastin has introduced Assembly Bill 11 into the California State Legislature; and WHEREAS, Assembly Bill 11 will require the State to use substantially more recycled paper and other recycled products, and will specifically authorize the Department of General Services to establish price preferences for paper products, and for compost, glass, oil, plastic, solvents and paint, paving materials, and tires; and WHEREAS, local governments throughout the State are now mandated, by State law, to collect materials for recycling and reuse, and can be successful in carrying out this mandate only if there is a significant market demand for products made of recycled materials; and WHEREAS, the State of California can have a significant and positive effect on the ability of our society to reuse materials and reduce waste, by mandating purchasing preferences for recycled products; and WHEREAS, the enactment of Assembly Bill 11 would be in the best interests of all the citizens and residents of the State of California, and all the citizens and residents of the Town of Los Gatos. C S D08: A: \ R E S O S\ C S041993. R50 -1- f NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE AS FOLLOWS: that the Town of Los Gatos urges that Assembly Bill 11 be enacted into law. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 19th day of April, 1993, by the following vote: COUNCIL MEMBERS: AYES: Randy Attaway, Steven Blanton, Linda Lubeck Mayor Joanne Benjamin NAYES: None. ABSENT: Patrick O'Laughlin ABSTAIN: None. SIGNED: ATTEST: /s/ Joanne Benjamin MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA /s/ Marian V. Cosgrove CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA CSD08:A:\RESOS\CS041993.R50 -2- April 19, 1993 Los Gatos, California RECYCLED PRODUCTS/PURCHASING PREFERENCES/ASSEMBLY BILL 11 (11.07) RESOLUTION 1993-50 Motion by Mr. Attaway, seconded by Mr. Blanton, that Council adopt Resolution 1993-50 entitled, RESOLUTION OF THE TOWN OF LOS GATOS SUPPORTING ASSEMBLY BILL 11 - PURCHASING PREFERENCES FOR RECYCLED PRODUCTS. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. GEOGRAPHIC INFORMATION SYSTEM/PERMIT TRACKING SYSTEM SIERRA COMPUTER SYSTEMS/RESOLUTION 1993-51 (12.28) Motion by Mr. Attaway, seconded by Mr. Blanton, that Council adopt Resolution 1993-51 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN MANAGER TO ENTER INTO AN AGREEMENT WITH SIERRA COMPUTER SYSTEMS. INC. FOR PURCHASE OF THE TOWN PERMIT TRACKING SYSTEM/GEOGRAPHIC SYSTEM. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT 1/RESOLUTION 1993-52 (13.04) Motion by Mr. Attaway, seconded by Mr. Blanton, that Council adopt Resolution 1993-52 entitled, RESOLUTION OF THE TOWN OF LOS GATOS OF ITS INTENTION TO ORDER IMPROVEMENTS TO LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 1. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT 2/RESOLUTION 1993-53 (14.04) Motion by Mr. Attaway, seconded by Mr. Blanton, that Council adopt Resolution 1993-53 entitled, RESOLUTION OF THE TOWN OF LOS GATOS OF ITS INTENTION TO ORDER IMPROVEMENTS TO LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 2. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. RETIREMENT PLAN/REPEALING SECTIONS/ORDINANCE 1937 (15.10) Motion by Mr. Attaway, seconded by Mrs. Lubeck, that Council adopt Ordinance 1937 entitled, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING CHAPTER 2, ARTICLE III, DIVISION 5 OF THE TOWN CODE REGULATING TOWN'S RETIREMENT PLAN BY REPEALING SECTIONS 2.30.705. 2.30.715, 2.30.725. 2.30.730, 2.30.735, 2.30.740, 2.30.745, 2.30.750, 2.30.755, 2.30.760, 2.30.765. 2.30.770. 2.30.775. 2.30.780. 2.30.785, 2.30.790. 2.30.795, 2.30.800, 2.30.805, 2.30.810. 2.30.815, AND 2.30.820. AND RENUMBERING SECTION 2.30.710 TO 2.30.705 AND AMENDING AND RENUMBERING SECTION 2.30.720 TO 2.30.710. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. WINCHESTER BLVD 15891/ZONING AMENDMENT/ORDINANCE 1938 (16.09) Motion by Mr. Attaway, seconded by Mr. Blanton, that Council adopt Ordinance 1938 entitled, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING THE ZONING MAP NO. 126 FROM 0-LHP TO R-1:8000-LHP FOR 15891 WINCHESTER BOULEVARD. Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. WINCHESTER BLVD 698-708/UNIVERSITY OAKS CONDOS/ORDINANCE 1939 (17.09) Motion by Mr. Attaway, seconded by Mr. Blanton, that Council adopt Ordinance 1939 entitled, ORDINANCE OF THE TOWN OF LOS GATOS AMENDING THE ZONING MAP NO.126 FORM 0 TO RM:5-12 FOR 698-708 WINCHESTER BOULEVARD (UNIVERSITY OAKS CONDOMINIUMS). Carried by a vote of 4 ayes. Mr. O'Laughlin was absent. TC: 05: M M041993 3