HomeMy WebLinkAbout0357.000, ,
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June 14, 1990
THE HONORABLE CITY COUNCIL
Palo Alto r California
Attention: Policy and. Procedures COlDlDlttee
RECYCLED PAPER PBOaJREMEJIT POLICY
Members of the council:
Staff recommends that Council adopt the attached policy governing
the procurement of recycled paper and 9ivinq a 10 percent purchase
prIce preference for recycled paper over virqIn paper products.
Background
The city of Palo Alto has operated award-winning recycling programs
since 1979, 'Whereby recyclable qoods are. collected from residences,.
business and city facilities. council recently bas expressed a
desire to ·close the loop· on recycling by addressing the final
step in the process, utilizing products manufactured from recycled
materials. Council has emphasized that in order for recyclin9 to .
be successful, ~arkets must exist tor the m~terials collected.
Council directed staff to deter-ine the categories of recycled
products which could be utilized by the city and to recollllllend a
procurement preference poliey for recycled products. staff
returned ~itb an informational report (CMR~247:0) describing
current waste reduction efforts~ and demonstrating the importance
staff bas placed on purchasing recycled, recyclable and reusable
prod,ucts. 'l'he report stated that staff would introduce a formal
procurement policy for recycled products. An initial policy 'Was to
be establishe~ for recycled paper items~ followed by a policy for
other recycled commodities. Attacbed Is t.he procurement policy tor
paper products (Attachment A).
CI!R:J57:0
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As large COllSWEla:ra of c:ertain commoditi.s, local qovernments can be
instrumentel in qenerating a demand for r.cycle~ product., and in
,Urectinq the market tOliud production of 'I',ali ty recycled goods.
Governments also can set an example for local businesses and
res1dents by purchasinq recycled: products wherever possible, and by
supporting tbe market for recycled products with a willingness to
pay a greater price for products mar,utactured with reclaimed
materials than for products aade of virgin materials. A specific
procurement policy 9iving a price preference to recycled products
sends a l1e5sag. to the paper industry that a market exists fer
recy~lea paper products.
The City uses several cate9Qries of paper products, all of ~bich
would be covered by this policy~ Major purchases include paper
products for copyinq machines. printing, .tationery~ envelopes~
computer printers, janitorial supplies~ food 6ervice~ boxes end
ne'Wsprint.
The attached recommended procurement policy:
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directs City staff to purcbase recycled paper products
rather t.han virqin paper proa,,,"-cts ,.,henever practicable:
encourage. the use of recyclable products when recycled
products §re not available:
allows a price preference of up to 10 pe.rce.nt for
recycled paper products;
requires ,suppliers to specify the recycled content of
their products:
o informs bidders of the City's interest in procuring
recycled: paper products and allows partial bid submittals
for recycled products;
o requests outside printing contractors to comply as
feasible with this policy;
o ensures that the abillty to utilize recycled paper is an
evaluation criterion for future equipment purchases:
o requires that City publications printed on recycled paper
be labeled as such: and
o
CMR:3S7:0
encourages city departments to cooperate with other
agencies in attempting to stimulate the market for
recycled paper products~
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Many of the components included in this procurement policy are
already the practice of City .taff in their attempts to encourage
recycling and to reduce vaste. Adoption of the attached policy
-yould formalize the Cit.y"s stance of 8upporting t.be \;Ise of recycle~
paper product •• A survey of other cities with procurement policies
.-bows price preferences ranging from S. percent to 1S percent.
Staff bQlieves t.hat a 10 percent price preference is appropriate to
indicate to venders and the public that the City supports the full
concept of recycling. In addition, this Is a level that prObably
will result in the actual purchase of recycled materials without
=ajor budqetary impacts.
stAffing and Budgetary lapacts
No additional staffing is recommended to ehact this recycled paper
procurement policy. However. limited staff availability will
affect testing of new products and monitoring of the program. New
products ~re tested as staff tize allovs. 1he Darket for recycled
paper products Is still volatile# and new prod·ucts are frequently
introdllced or wlthdrawn~ It is difficult to find consistent
supplie.rs of specific prod·uets. and it is time-consuming to
evaluate competitive products. As the market stabilizes. this
should become less of a problem. Staff also will be unable to
monitor compliance of vendors claiming to meet the criteria
established for recycled paper content in their products. Vendor
certification 'ViII have to serve as adequate verification of
compliance.
Budgetary impacts of this policy are uncertain at this time. and
additional costs for recycled paper products will be absorbed by
the departments. staff expects that a 10 percent price pre terence
will not be necessary for most purchases. rhe City spent approxi
'l!\a.te.ly $1.12: ... 000 in t.he past year on 1D.ajo-r paper pu-rcbases. Qf vllich
$28.000 was used to purchase recycled paper for copying, printing
aDd enV'elopes~
Last year the City used recycled paper for 6B percent of its
standard ~hite paper needs, and paid a 3 percent price preference
for the recycled prod·u-ct. Pricing for recycled colored paper and
other paper prod·ucts Is highly volatile as the market develops.
Last year. bids received for recycled Colored paper ~ere ),5 percent
hiqher than t.hose for virgin paper. Oiscussions with vend,ors
indicate that prices bave siqnificantly decreased. Tbl!!: price
differential for other recycled paper products is unknovn at this
time. Again, as the ~arket stabilizes and competition increases.
staff antiCipates that price differentials will diainisb.
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Staff r$COIDDIend.. Coun<:i1 approval of the attached Policy tor
Procurement of .ecycl.~ V.per and R.cycle~ paper Products, which
.tates the city'. lntent to puychaSe recycled and recyclable paper
products and e&tabl1shes a 10 ~rc.nt price preference tor recy"led
paper goods. Staff will then incorporate this pelley into the
City's polley and Procedures Manual.
~ •• pectfully eubsitted,
--liIh-..~ ~~;; r£;
Executive Assiatant
aIR,351,O
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POLICY ST"TP'f'HT
It is the City'-s intent to assist in. esta.blishing. a -market for
recycleQ paper products, and to make this an integral part of the
City's comprehensive solid waste manaqement program. sanitary
landfill space is at a premium, and the CIty practices waste
red·uc:tlon and collects and separat.es recyclable materials. The
City now desires to formally establish a strong program ~or the
purchase of recycled and recyclable product5. This policy
encourages the purchase of recycled paper and paper products and
establishes a prIce preference for recycled paper qoodso
1. The Manager of purchasing and Contract Administration sh~ll
pursue the procurement of recycled paper products inste&a of non ...
r~eycled paper products, wbenever the recycled alternative meets
the City's requirements and specifications for paper products. and
within the constraints of staff time and cost factors. Recycled
paper products qualifying for this policy are define~ in Exhibit I
attached~ Paper products that do not meet the required definItIon
of -recycled product .. , but that do contain some percentage of
recycled material I shall be preferred over virgin products. If a
recycled paper Is not available.. a recyclable paper will be
preferred ov~r non-recyclable paper.
2. Purchasing shall purcbase t.he qualifying recycled paper product
alternative if it Is offered at a price comparable to the llon
recycle~ alternative and if it meets the City's requirements ~nd
specifications for that product.
3. A pric"e prefe:rence of up to 10 percent shall be gIven to
recycled paper and paper products meeting the definition of
-recycled product-~ben they are offered as an alternative to non
recycled produ~ts. and When they meet the City's requirements and
specifications for paper prod,uct.s. The preference percentage shall
be calculated based on the lowest responsible bid or price quoted
by suppliers offering non-recycled paper product.s.
CHR:)S7:0
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4.. '1'0 encourage the use or posteonsumer vaste, contr£.cts shall be
ayarded to the bl4d~r whee. recycle~ paper product contains the
9reater percentage of postconsumer waste if the fitness, ~ality
and pric. are oth.rwl.~ equal and it aeets the City's requirements.
5. When t.he procurement involve. potential recycled product ..
PurchasiDg shall require all .uppliers and bidders to certify in
writiDg to the City whether the material, 90Cd or .upply off.r.~
contains the alnlmum percentaq. of r.cy~led produ~t as specified.
'The supplier ahall atate the .inll1:wll percent.sqe of recycled
saterial in the product, both the postconsumer and secondary waste
content ..
,.. Purchasing shall promote the procurement of recycled paper
pr~ucts by placiDg notices in bId sollcit"Uons and discussing
recycled content at bidders' conferences.
7. PurchasiDg vill add to their list of firms recunng bid
requests tor paper supplies and products those companies that
specialize in recycled paper products. Companies will be allowed
to submit partial bId packages tor rec¥clec:l prod'ucts so as not to
preclude .uppl:l.era who are unable to offer a full spectrum of paper
qoods.
8. outside contractors blMin<J to provIde printing services to the
City shall be asked to comply with the specifications of this
policy to the greatest extent feasible.
9. When purchasing or replacing COPY' machInes or computer
printers, compatibility with recycled paper products will be an
evaluation criterion. New equipment should have warranties that
are not invalidated by the use of recycled paper. Recycled paper
shall be used in all copy machines that viii accept it.
10 .. When recyclecl paper I. used for prlntl1t9 projects, departments
should _ake reasonable efforts to identify the printed items as
those produced with paper containing recyoled materials.
11. The City 'Will cooperate.,. to the qreate.st extent feasible., with
other governments and busInesses in an attempt to develop compre
hensive.,. consistent and effective procurement efforts intended to
stimulate the JDarket for recycled paper prod·ucts.
CMR:357:C
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EXHIBIT I
DEFIIfITIONS l'OR RECYCLED PAPER AND
PAPER PJtOOOCTS
Paper and paper prodQC:ta: Paper and paper product.s. covered. by this
policy include, but are not lisited to, any City purchases of the
followinq:
o All qrades and types of copy machine paper:
o All qrades and types of printinq and writinq paper:
o Stationery, note pads .. envelopes .. business cards, forms a.nd
computer papers;
o paper towels, toilet tissue, facial tissue .. p~per ~apkins,
food plates and food containers:
o Corrugated and fiberboard boxes; and
o Newsprint ...
Recyclable paper: Recyclable paper is paper which is able to be
entered back into the man'Ufacturing process for future paper
p~oducts. For purposes of this policy, recyclable paper is paper
able to be handled by the City's Recycling Program. The paper must
be 'White ... uncoated paper. Paper tha.t is 'Waxed or sbiny is not
recyclable.
The following definitions are adapted frOD the ca1ifornia Public
Contract Coder section .122GO. and viII be adopted for purposes of
thla polley:
Recycled product: All materials, qoods,
5~ percent of the total weiqht of which
postconsumer waste with IlOt 18-5& than
weight. consist.ing of postconsUlI:Ier wast.e.
of secondary and postconsumer waste
availability chanqes.
and supplies ... no less than
consists Qf secondary and
10 percent of its total
Tbese .1niJII'W1i percentaqe.s
may change as industry
Postconsumer waste: A finiShed lIIater-ial which would bave been
disposed of as a solid waster having completed its lite ~ycle as a
consumer itell. This 1iould include old newspapers, maqazines.
boxes, office 'Waste paper, etc.
Secondary waste: Traqments of finished products or finished
products of a .anufacturing process, which has converted a virgin
resource into a commodity of real economic value. This definition
.neo~pas5es paper vaste qenerated after completion of the paper
aalting process. This ,.,ould include paper trimmed. into smaller
rolls ... envelope cuttinqs# waste resulting frOD printing. cuttinq.
rejected stock or obsolete inventories. It does not include excess
virgin resources of the manufacturing process $u~h IS mill broke,
wood chips or sa~dust.
CHR: 357: 0 7
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