The URL can be used to link to this page

Home My WebLink About0488.000• october 4, 1990 THE HONORABLE CITY COUNCIL Palo Alto. California BICYCLED PRODPCTS P~OCUREXrMT PQ£rCy Members of the council: Jtepor~ ia Irief <-~- 8 council had directed staff to develop a policy that ~ould prefer the use of recycled products.. Staff recommends that council adopt the attached: ordinance qoverninq the procurement of recycled ... reusable and recyclable products .. 91virl9 a 5 perce!'!:t purcbase price preference for products made of recycled materials over products made of virgin Zlaterials.. The ordinance. also changes the Palo Alto MUnicipal Code Sections ~ .. 30 .. 150 and 2430.0JO, ~hich qovern the criteria for selecting a low bidder, and establish definitions tor recycled product&. Staff anticipates that adoption of the procurement policy will result in t.he City's increased \lse of recycled prod·ucts,. and viII indicate 'to 'the public and to vendors that the City supports the use of recycled materials. Budqetary illlpacts of the policy are unknow'n at this time. No additional staff are requested, although staffing limitations will restrict the scope of implementation. Bac't:qr9Ull~ council bas expressed a desire for the City to utilize products manufactured from recycled materials and to be willir.q to offer a price preference tor such products. The purchase of recycled products Is the critical final step in the recycling process, establishinq .. market for materi.als collected through recyclinq programs such as those in opera.tion for Palo Alto's residences, businesses and City facilities~ Equally important is a willingness to purchase reusable and recyclable items~ to reduce sources of "aste~ In a June 14 staff report (CMR:357:0J. staff proposed an initial polIcy for the. procurement cf recycled paper products.. "l'he policy vas discussed at tl'le Policy and Procedures Committee on June 19 and approved by Council at the July 23 meeting. The policy and CMR:UB:O • I , I [ ! t ! t \ , .. -)c ,r,~ , • -,.>:., , ; i : ...' I -. . I ,~ .~ ;~r· .-. , I I 1 b····•.······ .. .' .". - o o Procedures Committee directed staft to bring the follow-~p policy for t.he procure:me.nt of all other recycled products directly t.o council. Attached is an ordinance establishing a qeneral procure ment policy ror recycled products and making necessary companion cbanqes to the Palo Alto Municipal Code. procurement poll~ The attached procurement policy covers the direct purchase of all aaterials, goods and supplies for the city. The policy states that the City will pursue the purchase of recycled, reusable and recyclable products vhenever practicable, when they are offered as alternatives tor non-recycled, disposable (non-reusable), or non recyclable products. The ordinance would allow the payment of a 5 percent price preference for the recycled alternative. The types of products that. would be covered by this policy are unlimited. Essentially, any recycled item ~ould be purchased if it meets the City's specifications and requirements,. costs no more than 5 percant hiqher than the non-recycled alternative. can be delivered in a timely manner,. and does not require excessive staff time for testinq. various industries are attempting to redesign products to utilize recycled materials. The federal qovernment has established guidelines for recycled products incl'Oding paper. refined oil. retread tires, insulatIon and cement. and is developing quidelines for construction materials. Other ava.ilable prod,ucts include a variety of recycled plastic items. compost materials and asphalt. Park benches manufactured with recycled scrap metal in their frames vere purchased last year fo~ use on the Civic Center Plaza~ Some government agencies are developir~ prccure~ent policies stating that product specifications must be revised to requi~e the use of recycled materials~ To achieve sucb a policy. staff would need to researCh. test and evaluate all potential recycled products. Research and intervie~s have established that rtO other city is executing a policy to such an extent at this tim~. Staff believes that this kind of policy is i~practical for our purposes and impossible with current staffing levelS.. Rather. it is imperative to ensure that City specifications do not exclude the use of recycled p,roducts. and to notify suppliers of the City's preference for the use of recycled products .. staff is developifl9 administrative policies and procedures to enact the proposed procurement policy. Oepartments will be directed to condUct a review of existing product and service specifications to deteraine "'hether existing specifi.cations either ~equira the use of products manufactured from virgin materials or exclude the use of recycled l reusable or recyclable products~ Product specifications sball be revised as approp~iate to allow tor products vith recycled content. Exceptions to this policy will be allowed only if a CHR:48B,O 2 L • . , \ , -.,.' ....... . -: .... ~ .. I ' .-:--,--" \: , . .. "9 . . . ~ -"-:--~-' -: , - I , i j I" , r:" - o o departsent demonstrat~& to the City Manager that a recycled alterna.t.ive would not achieve. a necessary performance st.andard ... or that the product woul~ negatively affect health, safety or operational efficiency. '. staff believes that a S percent price preference is en appropriate lovel to indicate to venders and the public that the city .~pports tbe fl,l11 concept. of recycll"9. The price preferenee will be calculated as 5 percent of the bid price to a ~aximun preference of $10,000. A survey of other government entities with procurement policies sbows a range from no price preferenee up to a 1S percent price preference. Most pol1c1es bave been recently adopted~ so local qovernments cannot provide. historical data on purcbasinq and bUdgetary impacts of their policies. and ~any have yet to resolve adDinist_rative procedures for handling a preference. Many of the e.ntitles surveyed are purchasing only recycled paper products at this ti~e~ so~e are purchasing a tew recycled products~ and most intend to expand their practices to encompass more recycled products in the future .. Budgetary and statfing raplct. 'The budgetary i:opacts Clf impleme"tinq a recycled prod·act procure aent policy are unknown at this time. The City already practices waste reduction and recycled produ~t support thrOQgb purchasing recycled paper, utilizing recapped tires, recycling Vehicle oil, solvents and anti-freeze. saving and selling scrap metals. extracting qold and silver from 1{aste asb, and reusing Clld furniture. Additional expenditures authorized by a procurement preference cannot be estimated, until the extent to which recycled products meet the city"s product specifications can be determined. .. The proposed procurement policy will be administered with existing City staff. Each department will be responsible for reviewing the specifications for products they require and tor revising them as app-ropriate.. There is no staffing tD oversee or monito.r the program.. Departments will be given a t~elve-month revie~ period; at the end of that time, all purchase requests transmitted to the Purchasing Division .should contain specifications that do not exclode recycled Clptions, except as requirec:J to meet state and federal req·uirements.. Testing of new prod'ucts will be performed as staff time allows, and the vendor will bear the burden Clf proving that a product meets City specification ... Were the City to provide additional st:affing t.o accOlllplish recycle" product procurement, the following areas 'Would ~ emphesized: researching and testing of potential recycled products; actively contactiDC) vendors to encour!llge the use of recycled products; recordkeeplnq of price differentials and bistortcal data Clf recycled product purchases; and, 1J(orkinq with st.ate and federal QIR:U8:0 • \ , , ,-"'- , " . - " o agencies to revise standartis and codes that Ii_it the use of recycled ~aterials. All Ut The proposed policy does not include monitoring for compliance with AS 939. The Public W~rks Department is in the process of perform ing a study to determine ~hat the city must do to ~omply with AS 939... the neW' waste reduction bill signed by the Governor in September 1989. The bill requires cities to divert 2S percent of the waste for landfill disposal by 1995 and 50 percent by 200Q ... and to prepare a waste source reduction and: recyclinq plan.. As part cf that study, the oonsultant will evaluate steps the city must take, including an evaluation of procurement policles~ They also viII be evaluating the staffing impacts of full compliance with AD 9J9. Becotmlenc!atioD staff recommends that Council approve the attached ordinance for the. Procurement of Recycled Products 'Which states the City's policy to purchase recycled .. reusable and recyclable product.s, esta.blishes a 5 percent price preference for recyole~ products.. and modifies Palo Alto XUnicipal Code Seotions 2.30.15.0 and 2.30. 030 which govern the criteria for selectinq a: 10-... bidder, and establish definitions for recycle~ products. Staff will then develop adlainistrative policies and pr-ocedures to implement this ordina.nce. Respectfully submitted, ~~ LIBBY DAME Senior Financial Analyst f-~.,&. ~la.~~· ~~~~r~ ~~t~~e E FLEllING '"f\ sistant City ~~er CMR:357:0 Recycled Faper Procurement Policy CI!R:48S:0 ( • \ , ". , ~ , \ ,~~ \ -. "' ."J<- ~f~, " I I l - o ORDINANCE NO. ORDINANCE OF THE COONCIL OF THE CITY OF PALO ALTO AMENDING 0iAPTE:R 2.30 OF THE PALO ALTO MUNICIPAL CODE RELATING TO CONTRACTS AND PURCHASING PROCEDURES TO ESTABLISH A RECYCLED PRODIJCTS PROCUREMENT POLICY WHEREAS, sanitary landfill space is at a premium and it is becoming increasingly difficult to site new landfills, ar.d WHEREAS, the City of Palo Alto practices waste reduction end collects and separates recyclable materials, thereby reoucing the volume of material entering the 'Waste stream and extend.ing the landfill life expectancy, and WHEREAS, for recycling programs to be effective, markets must be developec:S for products that il'l:COrporate postconsumer recycleQ materials in their manufacture, and WHEREAS, California State Law allows local agencies to adopt purchasing preferences for recycled products, and WHEREAS, California State Lav allows local agencies to adopt purchasing preferences for recycled produ~ts .. and WHEREAS" the city of Palo Alto encourages the purchase of recycled" reusable and recyclable prod,ucts.. and desires to establish a price preference for products containing recycled materials: NOW .. THEREFORE" the Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Tbe City Manager sball establish a policy to procure recycled .. reusable and recyclable prod,ucts instead of non recycled" disposable (non-reu.sable) or non-recyclable products" whenever the recycled alternative meets the cityl's requirements and specifications for that prod\JCt.. and within the constraints of staff time and cost factors. S&qTION 2. section 2.30.150 of the Palo Alto Municipal Code is hereby amended by adding subsection (8) to read as follo~s: r;;.'!"I5o,r.o" •• t ••• pouil:>feBicl!1"t: I;~:j! .«l1!).;'·eolll.,iiarice by the bidder wit:.hth".~it:.Y'sJ>Oii9Y for l"'1;J?lli',~l"9,'~~Yc;e<iP;-<><Ic<>c~S ,,5 specgl"ci~l~f ., !l()J 003 ip 0050021 t~JPiiJn (jeteriltnl"9 the idw .. "~re"'J>OIi~l!,l~'b~~"r ,'liS f>4ll:rcent 'price, preference sba,~l ,be'<J,.1ven<, t<>: r.ecycle.d piPducts. and to reus.able --pr'~ucts ;'ottered iSS .alternatives to -disposable ,'(nori':';'reu,sa,ble). 'products. ~ .. f,_,,_PO re....-ycled prod~t l~ ,a!ai,._a,~l!/_:_:_~.,_~ JlE!rC?~nt 1 • \ \ \ , ~.. ;. , " , , "' • .;~'::' ".,..t., .1 ;~ 1-, l .J j ; , • r \ '" -'--r _. < - --'--~-'-' "-::::: .':----~ . ~~-:r~~.~~~.~~:+~~~~> ! - o SECTION 3. section 2.30~030 of the Pa10 Alto Municipal Code is bereby amended by addinq subsections (5} and (6) to read as follows: ~~~:~~!;f,~~:~j:::( ~f,i,~ltlQ'~ ~;,~.;!f. ,:s_>,lii~::':l(~~~l'~"-,,prOduCt II;' '.pos_tcOri~ume_f',::,!~n;~,~,-~:· ~ :,: lr_$e'~~ , '~'··~_ty:~ste· shall, ~av'f t.i.~':1De'~,nJng~:'~~~_~'J?o~~ in !Section "1220~ of the Cal.1fo"'J: ... ~119.CQnl;ra¢" £?d~~~"",:as ~t:,may be",amend~,~,f . > i~).r-;t~"clable· means a producttl!~t'is'iab+eb>lle .... '. t"e<::~le.s ;,' througl: oneofJhe city, of;Pi!lC>,Alt.o·" f89fdling "progra,ms~' or· .ahoth_8t":: ,readi_ly','::ava,rlable ~oq~.L"el'Yc1i"9 pr<>graJI ~ .• vl"9 p<:>~t.~oth~·. cit»:' SECTION 4.. The Council finds that this ordinance is categori cally exempt from the California Environmental Quality Act, and pursuant to state CEQA Guidelines section 15308. as a regulatory action taken to protect the environment. The council fUrther finds that there are no unusual circumstances -which might create a reasonable probability that the project would have any siqnificant environmental effects. SECTION 5. This ordinance shall become effective upon the commencement of the thIrty-first day after the day of its adoption. .-. I I ( I \ \ \ \ ~... \-. • , . " -----.', .. -'..,.- ,~'- '\ . , I ., ~ 0 INTROOOCED' PASSED: Ans, IIOES: AIISTENTIQNS: AIlSl!NT: ATTEST. city Clerk APPROVED AS TO FOJU(, City Attorney , APPROVED: CIty .Manaqer Director of Finance =-.' ·>L-. ---"--:--,'--. -, . . o Mayor