Study Sessiontps�GA�og COUNCIL AGENDA REPORT
DATE: APRIL 29, 2013
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
MEETING DATE: 5/6/13
STUDY SESSION
SUBJECT: DISCUSSION AND DIRECTION ON THE REGULATION OF SINGLE -USE
CARRYOUT BAGS AND EXPANDED POLYSTYRENE
RECOMMENDATION:
1. Authorize staff to draft and present an ordinance for the regulation of single -use carryout bags.
2. Direct staff to schedule consideration of an Expanded Polystyrene (EPS) Ordinance in early
2014.
BACKGROUND:
In July 2012, the Town of Los Gatos adopted a sustainability plan that outlined the Town's existing
greenhouse gas emissions (GHG) inventory, identified GHG reduction targets, and established GHG
reduction measures to be implemented in order to meet those reduction targets. Waste reduction efforts
in the Solid Waste category identified the adoption of an ordinance to ban the use of plastic bags in Los
Gatos (SW -8). The purpose of this study session is to discuss the Council's interest in proceeding with
the adoption of such an ordinance, as well as consideration of a related regulation of Expanded
Polystyrene containers.
DISCUSSION:
The Need for Regulation of Single -Use Plastic Bags
The use of single -use carry out bags contributes to negative environmental impacts on air quality,
biological resources, greenhouse gas emissions and water quality, and contributes to the increase of litter
in storm drains, creeks, the bay and the ocean.
In October 2009, the Santa Clara County Recycling and Waste Reduction Commission (RWRC), a
commission composed of ten elected officials who represent the range of local government solid waste
PREPARED BY: Christina Gilmore, Assistant to the Town Manage
I1n yk
Reviewed by: _E�AAssistant Town Manager _Town Attorney
NA\MGR\AdminWorkPiles\2013 Council Reports \Town Council Report- Plastic Bags.docx
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: REUSABLE BAG AND EPS ORDINANCE
APRIL 29, 2013
system users and perspectives, recommended that all jurisdictions in the County establish a ban on
plastic single -use, carry -out bags and a mandatory charge on paper carry -out bags at retail stores,
excluding restaurants and fast -food establishments. In June 2011, the Santa Clara County Cities
Association supported this recommendation.
Environmental consultants have estimated that 531 plastic bags are used per person annually in Los
Gatos. Adopting a single -use bag ordinance would potentially eliminate nearly 16 million plastic bags
annually, which would assist in meeting the Town's goal for Solid Waste reduction, as outlined within
the Town's Sustainability Plan.
Regional and State Efforts
In September 2011, San Mateo County undertook an Environmental Impact Report (EIR) to examine the
potential impacts of regulating the use of plastic bags and develop a proposed ordinance for regional
adoption. The Town of Los Gatos and 23 cities in both San Mateo and Santa Clara counties, who were
also considering a single use ban ordinance, were invited to participate in a regional approach to the EIR
analysis. Municipalities in Santa Clara County who participated in this EIR process included Los Gatos,
Milpitas, Cupertino, Los Altos, Campbell and Mountain View.
The objectives of the proposed ordinance were:
1. Reduce the amount of single -use bags in trash loads;
2. Reduce the environmental impacts related to single -use plastic carryout bags;
3. Deter the use of paper bags by customers in the respective jurisdictions;
4. Promote a shift toward the use of reusable carryout bags by retail customers in the respective
jurisdictions; and
5. Avoid litter and the associated adverse impacts to the stormwater systems, aesthetics and the
marine environment.
Acting as the lead agency, the County of San Mateo prepared and released an EIR in June 2012, with the
participating municipalities acting as responsible agencies. A Final EIR was released in August 2012
and was certified by the San Mateo County Board of Supervisors in October 2012.
Other cities have also adopted or are considering adopting an ordinance, including Palo Alto, San Jose,
Mountain View, Sunnyvale, Los Altos, Cupertino and Campbell.
Current proposed state legislation regarding single -use carryout bags includes SB 405, authored by
Senator Padilla and AB 158 authored by Assembly Member Levine. Each bill seeks to prohibit stores
that have a specified amount of dollar sales or retail floor space from providing a single -use carryout bag
to a customer. The bills would also require stores to meet other specified requirements regarding
providing recycled paper bags, compostable bags, or reusable grocery bags to customers.
Both AB 158 and SB 405 are currently being heard in Committee, and if passed, would require retail
establishments that meet these criteria to comply with the law as of January 1, 2015, After July 1, 2016,
these prohibitions would additionally be imposed on convenience food stores, foodmarts, and certain
other specified stores.
PAGE 3
MAYOR AND TOWN COUNCIL
SUBJECT: REUSABLE BAG AND EPS ORDINANCE
APRIL 29, 2013
CEQA Findings Environmental Impacts
The Final Program EIR estimates the volume of current plastic bag usage within the Study Area at 546
million bags per year, including Los Gatos at approximately 16 million. With the proposed ordinance in
effect, it is anticipated that 95 percent of that volume would be replaced by a combination of paper (30
percent) and reusable (65 percent) bags, leaving 5 percent or 27.6 million plastic bags still used each
year at retail establishments exempt from the ordinance. The Final EIR identifies and analyzes the
potential environmental impacts of such a shift in bag usage as follows:
Air Quality: (1) A beneficial impact associated with a reduction in emissions due to a reduction in the
total number of plastic bags manufactured; and (2) a less- than - significant impact associated with an
increase in emissions resulting from increased truck trips to deliver recycled paper and reusable carry-
out bags to local retailers.
Biological Resources: A beneficial impact associated with a reduction in the amount of single -use
plastic bags entering the coastal and bay habitat as litter.
Greenhouse Gas (GHG) Emissions: A less- than - significant impact associated with increased GHG
emissions due to an increase in the manufacturing of single -use paper bags.
Hydrology/Water Quality: (1) A beneficial impact associated with a reduction in the amount of litter
and waste entering storm drains; and (2) a less - than - significant impact due to an increase in the use of
chemicals associated with an increase in production of recyclable paper bags.
Utilities and Service Systems: (1) A less- than - significant impact due to increased water usage
resulting from the washing of reusable bags; (2) a less- than - significant impact due to increased
wastewater generation resulting from the washing of reusable bags; and (3) a less - than - significant
impact due to an increase in solid waste generation resulting from increased usage of paper bags.
None of the impacts require mitigation because they are all either beneficial or less than significant.
Ordinance Framework
Los Gatos' proposed ordinance would closely resemble the model regional ordinance. The ordinance
would apply to any commercial establishment that sells perishable or nonperishable goods, including,
but not limited to, clothing, food, and personal items, directly to the customer; and is located with or
doing business within the geographical limits of the Town of Los Gatos. The ordinance would not apply
to any commercial establishments within the unincorporated islands within Los Gatos and would have
the following components:
1. Prohibit the free distribution of single -use carryout paper and plastic bags;
2. Require retail establishments to charge customers for recycled paper bags and reusable bags at
the point of sale. The minimum charge would be ten cents ($0.10) per paper bag until December
31, 2014;
3. Increase the minimum charge to twenty -five cents ($0.25) per paper bag on or after January 1,
2015;
PAGE 4
MAYOR AND TOWN COUNCIL
SUBJECT: REUSABLE BAG AND EPS ORDINANCE
APRIL 29, 2013
4. Exempt customers participating in Supplemental Food Programs from having to pay for carryout
bags;
5. Allow retailers to provide protective plastic bags, without handles, intended to segregate
produce, raw meat and prescription drugs, for their customers at no cost; and
6. Take effect on January 1, 2014.
If the Council would like to alter any of these components, additional EIR analysis may be necessary.
Potential Issues
The Final Program EIR included a public comment period, and comments from the public were included
within the report. The most common issues that were raised in opposition to this proposed ordinance
were concerns related to the $0.10 and $0.25 cost for the purchase of reusable bags posing an undue
economic impact for consumers and retailers; the perceived negative health impacts of reusing reusable
bags (becoming dirty and harboring bacteria such as E.Coli); and the opinion that many people reuse
plastic bags to line their trash bins or use them to pick up dog waste. There is also a plastic bag industry
group called Save the Plastic Bag Coalition whose membership includes companies and individuals
engaged in the manufacture and distribution of plastic carryout bags and polyethylene reusable bags who
oppose reusable bag ordinances.
An additional concern that may be raised by retailers is having to pay a sales tax on the surcharge for
reusable bags. The State Board of Equalization issued a special notice stating that due to the charge
being imposed by the local jurisdiction upon the customer, not the retailer; the charge is not included in
the retailer's gross receipts and would not be subject to a sales tax or use tax.
Given the widespread trend toward restrictions on single -use plastic bags in many counties and
jurisdictions throughout California and proposed legislation that is currently making its way through the
State Legislature, staff is recommending that the Council proceed with a discussion for a proposed
reusable bag ordinance, although some of the above concerns may be voiced during the public process.
Public Outreach
Should the Town Council choose to move ahead with this proposed ordinance, staff proposes a public
outreach plan through the Town's website; the Los Gatos Chamber of Commerce; the Los Gatos
Weekly Times; the Los Gatos Patch, and informational stakeholder meetings with retailers and
residents. A more detailed outreach plan and schedule will be submitted to Council following the
direction to proceed.
Proposed Expanded Polystyrene (EPS) Ordinance
Expanded polystyrene (EPS) foam is a major pollutant in creeks and waterways that flow to the Bay and
beyond. Unlike other items that litter the waterways, polystyrene easily breaks into tiny pieces that can
be mistaken for food and ingested by aquatic animals. EPS comprises 15% of storm drain litter,
according to the California Department of Transportation.
PAGE 5
MAYOR AND TOWN COUNCIL
SUBJECT: REUSABLE BAG AND EPS ORDINANCE
APRIL 29, 2013
Most recently, the topic of appropriate disposal/management of expanded polystyrene has been
examined by the RWRC. In February 2012, the RWRC voted to make the following recommendations
to the Santa Clara County Cities Association:
By July 1, 2013, jurisdictions within Santa Clara County make a decision to adopt an ordinance
which would be implemented by July 1, 2014— banning expanded polystyrene food and
beverage containers at all food vendors in jurisdictions within Santa Clara County and /or
consider adopting an ordinance requiring that all food vendors within the jurisdiction use only
containers that are accepted and processed through the jurisdiction's landfill diversion program
with the understanding that EPS will not be collected for recycling.
m By July 1, 2015 (if this was not undertaken previously) each jurisdiction within Santa Clara
County strongly consider a long term plan (with. their franchise agreements in mind) that would
require all food vendors within the jurisdiction to use only containers that are accepted and
processed through the jurisdiction's landfill diversion program with the understanding that EPS
will not be collected for recycling.
In FY 2013/14, staff will bring forward a recommendation to the Town Council to pursue an EPS
ordinance subsequent to the adoption and implementation of an ordinance for single -use carryout bags.
Other cities have also taken steps to adopt ordinances or implement policies that limit the use of EPS,
including Cupertino, Gilroy, Morgan Hill, Mountain View, Palo Alto, San Jose, and Sunnyvale.
CONCLUSION:
The use of plastic bags contributes to a negative environmental impact on air quality, biological
resources, greenhouse gas emissions, and water quality. Eliminating or significantly reducing the use of
these products will reduce the environmental impacts related to the use of single -use carryout bags, and
would promote a shift toward the use of reusable bags. Staff seeks Council direction to move ahead
with this ordinance and whether future consideration should be given to the regulation of EPS.
ENVIRONMENTAL ASSESSMENT:
The EIR for the regional model ordinance has been completed and would be sufficient for the Los Gatos
ordinance. If the Council would like to alter any of the components put forth within this report,
additional environmental analysis may be necessary.
FISCAL IMPACT:
The public outreach process will have impacts to the general fund; primarily in the marketing and
notification to community stakeholders prior to the ordinance taking effect, but these are anticipated to
be one -time costs estimated at $10,000 to $15,000.
Attachments:
1. Public comments received from April 30, 2013 through 12:00 p.m, on Thursday, May 2, 2013
THIS PAGE
INTENTIONALLY
LEFT BLANK
From: Time Out <ginger @timeoutclothing.com>
Sent: Tuesday, April 30, 2013 5:13 PM
To: Council
Subject: New Bag Ordinance
Hello to all my friends that serve on the Council, and to those of you who don't know me I own Time Out
Clothing located at 108 N. Santa Cruz.
Well, I generally like to lay low, but I feel that it is time for me to pull out my "soap box" again....
I spoke with the Town Manager and Economic Vitality Director, and briefly the Chamber regarding the "Bag
Ordinance" that will be up for discussion
this coming Monday night. As a Merchant in town, I would like to take a couple of minutes to offer some
points that I hope you consider when
discussing this issue. I am hoping to get there this Monday, but I have two other off site requirements next
week, and I hate being'away from my
family too many nights in a row, but I am going to really try to get there...
I understand that the "type" of bag that you are discussing may be very specific, and it may not really apply to
all types of bags used by boutiques
located in Los Gatos. I will only be able to address my concerns and points, but I will list them....
• We use our bags as much as advertising and marketing as we do function.
• We use our bags as our gift wrap also, to cut back on extra boxes and gift wrap.
• If we must charge for bags, how do I account for sales tax and reporting for that?
Is that a separate line item to the state board of equalization?
• I have 3 different size bags, and to say .10 for one and .25 for the other ... I'm thinking all
the customers would then want a big bag, which is very $$$ I prefer to give them small when
possible, but if they are being charged, they may ask for large size?
• I feel like fewer people are asking for bags now, and we have started the re -use reward program with
our customers, and is turning out to be fairly successful.
• I'm at a point now that we need to reorder some bags soon, and I have to buy in large quantity to keep the
cost affordable, and just looking for directions before doing that.
• Most important to me .... SHOPLIFTING! When we see people carrying around bags from other towns, we
are very
suspicious of them .... it makes it very easy to shoplift when carrying large bags, and we have definitely had
more than
our share of shoplifters in town lately...
Happy to discuss further if anyone has any other points or questions.
Thanks again for your time!
Ginger Rowe
Time Out Clothing
108 N. Santa Cruz Ave.
Los Gatos, CA 95030
(408)354 -8653
ginger(a�timeoutclothing.com
ATTACHMENT 1