City of Culver City, California
Agenda Item Report
Meeting Date: 12/10/2012 Item Number: A-1
CITY COUNCIL AGENDA ITEM: Consideration of the Subject of Regulation of
Single-Use Carryout Bags.
Contact Person/Dept.: Helen
Kerstein/PW
Phone Number: (310) 253-5618
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: []
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Agenda and Meetings – City Council (12/07/12); (Mail)
Approx. 75 Potentially Affected Businesses (11/27/12); (Published) Culver City News
(11/29/12; 12/6/12); (Mail) Chamber of Commerce (11/27/12); (Mail) Downtown Business
Association (11/27/12); (Mail) Californians Against Waste (11/27/12); (Mail) Heal the Bay
(11/27/12); (Mail) Seventh Generation Advisors (11/27/12); (Mail) Surfrider Foundation,
West LA/Malibu Chapter (11/27/12); (Mail) Environment California (11/27/12); (Mail)
Clean Water Action/Clean Water Fund (11/27/12); (Mail) American Chemistry Council;
(11/27/12); (Mail) California Grocers Association (11/27/12); (Mail) Command Packaging
(11/27/12); (Mail) Ballona Creek Renaissance (11/27/12); (Mail) Santa Monica
Baykeepers (11/27/12); (E-Mail) Sustainability and Environmental Issues Listserv
(11/27/12).
Department Approval:
Charles D. Herbertson (12/04/12)
City Attorney Approval:
Carol Schwab (by R. Miranda) (12/07/12)
Chief Financial Officer Approval:
Jeff Muir (12/06/12)
City Manager Approval:
John M. Nachbar (12/07/12)
RECOMMENDATION:
Staff recommends the City Council consider the subject of regulating single-use
carryout bags and direct the City Manager as deemed appropriate.
BACKGROUND:
Single-Use Bag Restrictions and Legal Challenges
In recent years, a number of jurisdictions around the world have attempted to
address the impacts associated with single-use bags by limiting their distribution by
retailers. Some jurisdictions have accomplished this by requiring retailers to charge
customers for every single-use bag they use (whether paper or plastic). Other
jurisdictions have required retailers to charge for single-use paper bags, while
banning single-use plastic bags altogether.
Since 2007, jurisdictions in California have been barred from pursuing the former
strategy by AB 2449 (Levine), which prohibits cities, counties, and other public
agencies from requiring retailers to charge fees for single-use plastic bags. Thus, to City of Culver City, California
Agenda Item Report
date, while a number of cities and counties across the California have taken action
on single-use bags, they have taken the approach of requiring retailers to charge for
single-use paper bags and banning single-use plastic bags, rather than requiring
retailers to charge for both types of bags.
As jurisdictions in California have pursued this approach, they have faced legal
challenges over the adequacy of their environmental review processes. Specifically,
the challengers, led by an industry group called the Save the Plastic Bag Coalition,
have argued that by focusing their restrictions on single-use plastic bags, these
jurisdictions have encouraged the use of other bags with even larger environmental
impacts.
LA County Environmental Process
In the face of this legal environment, Los Angeles County (LA County) decided to
develop a comprehensive Environmental Impact Report (EIR) prior to adopting its
Ordinance in November 2010. LA County’s EIR analysis included all 88
incorporated cities as well as the unincorporated areas in Los Angeles County, thus
facilitating the use of this EIR as a foundation for the environmental review
supporting similar ordinances considered by cities within the County. Since LA
County’s adoption of its EIR, several LA County cities have used LA County’s
Ordinance as the basis for their Ordinances, including the cities of Pasadena,
Calabasas, and West Hollywood. While these cities have largely mirrored the
County’s Ordinance, some of them have made adjustments, such as changing the
types of businesses that are covered or the reporting requirements for businesses.
Summary of LA County’s Ordinance
LA County’s Ordinance bans the issuance of plastic single-use carryout bags
(including compostable and bio-degradable bags) and imposes a ten cent charge on
each recyclable paper carryout bag. These charges are retained by the businesses
and can be used to offset costs associated with compliance, including the actual
costs of providing recyclable paper carryout bags, educational materials, and an
educational campaign encouraging the use of reusable bags, if any. Low income
customers participating in either the Special Supplemental Food Program for
Women, Infants, and Children (WIC) or in the CalFresh/Supplemental Nutrition
Assistance Program (SNAP) are exempted from these charges.
The LA County Ordinance covers the following types of stores (approximately 75
stores in Culver City are anticipated to meet these criteria):
1. A full-line, self-service retail store with gross annual sales of two million dollars
($2,000,000), or more, that sells a line of dry grocery, canned goods, or non-food
items and some perishable items; or
2. A store of at least 10,000 square feet of retail space that generates sales or use
tax and that has a pharmacy; or City of Culver City, California
Agenda Item Report
3. A drug store, pharmacy, supermarket, grocery store, convenience food store,
food mart, or other entity engaged in the retail sale of a limited line of goods that
includes milk, bread, soda, and snack foods, including those stores with a license
issued by the Department of Alcoholic Beverage Control.
In order to allow sufficient time for businesses to use up their existing inventory of
bags and to adjust to the requirements of the LA Ordinance, its implementation was
phased-in. Larger stores were given six months to comply with the Ordinance’s
provisions, whereas smaller stores were given twelve months. The LA County
Ordinance also included provisions that related to quarterly reporting requirements
by businesses and enforcement.
Recent Changes in California State Law
AB 2449 (Levine) sunsets on January 1, 2013. Thus, as of the New Year, cities and
counties in California will have the option of implementing an entirely fee-based
approach to discourage single-use carryout bags should they desire to do so.
Culver City City Council and Subcommittee Actions
On July 23, 2012, the City Council voiced support for single-use carryout bag
legislation at the state level, AB 298 (Brownley). AB 298 was subsequently held in
the Senate Appropriations Committee and has not become law.
At meetings in July, September and November 2012, the Sustainability
Subcommittee (Vice Mayor Cooper and Councilmember Sahli-Wells) discussed the
topic of single-use carryout bags. At these meetings, the Subcommittee expressed
support for the concept of an Ordinance to reduce consumption of single-use
carryout bags and asked staff to transmit this concept to the City Council for
consideration. However, there was a difference of opinion on the specifics, with one
Subcommittee Member favoring a ban on single-use plastic bags and one favoring a
charge on those bags (both Members favored a charge on paper bags).
DISCUSSION:
Consistent with the desires of the Sustainability Subcommittee, staff is transmitting
the request to seek direction from the City Council on the topic of single-use carryout
bags. The primary question is whether the City Council wishes to pursue regulation
of single-use carryout bags. If it does, staff would request City Council direction on
which approach is desired.
Should the City Council Determine to Pursue Regulation of Single-Use Bags
City of Culver City, California
Agenda Item Report
Should the City Council determine it wishes to pursue regulation of single-use bags,
staff would suggest an approach which requires retailers to charge for both single-
use plastic and paper bags, rather than requiring retailers to charge just for single-
use paper bags and concurrently banning single-use plastic bags. As mentioned
previously, jurisdictions in California have not yet taken this approach, as they have
been prohibited from doing so under AB 2449. However, Washington, D.C. has
reported success with its single-use plastic and paper bag fee. The advantages of
this approach include greater flexibility for retailers and customers and more
efficiency from an economic perspective. This approach has also received support
from the Culver City Chamber of Commerce’s leadership. The disadvantages of this
approach are that it would make Culver City less consistent with our neighboring
jurisdictions and require a more extensive outreach and environmental review
process. Specifically, this approach may require an Initial Study and, potentially, a
full EIR rather than a Supplemental EIR (which is required if Culver City were to
adopt an ordinance modeled on the LA County Ordinance).
Another option the City Council could consider is mirroring LA County’s Ordinance
and implementing a ban on single-use plastic bags. If the City Council is
comfortable with this approach, it would provide the advantages of consistency with
other jurisdictions in the region, as well as a faster and less expensive environmental
review process.
The City Council could also consider basing Culver City’s Ordinance on LA
County’s, but including relatively minor modifications that could still be
accommodated within a Supplemental EIR. For example, West Hollywood altered
the types of businesses covered, reduced the reporting required of those
businesses, and provided more flexibility in exempting businesses in the case of
hardship. If the City Council would like to follow the LA County model, minor
modifications to the County’s Ordinance such as adjustments to ease reporting
requirements and allowing for exemptions in the case of hardship may be advisable
as they would still maintain the spirit of the LA County policy, while making it less
burdensome to covered businesses.
One additional option for consideration is launching a program to discourage single-
use carryout bags that does not rely on an Ordinance that requires fees or imposes
bans. One suggestion that has been brought up is creating a program that would
include plastic collection at retail stores and the manufacture and sale of branded
reusable bags from that plastic. This type of program could provide some benefits,
but may come with implementation challenges, including the financial viability of it
and finding multiple vendors to recycle the collected bags into new bags for Culver
City. Such a program could potentially be implemented along with, rather than
instead of, the other options. However, given the implementation challenges and the
lack of a clear necessity for the City to be involved in such a program if it were
launched, staff is not recommending it at this time.
City of Culver City, California
Agenda Item Report
Should the City Council wish to move forward with directing staff to draft an
Ordinance, staff not only seeks direction on the nature of the desired Ordinance, but
also direction regarding the desired public input process to pursue prior to the
introduction and adoption of the Ordinance. Staff suggests holding one public
meeting and soliciting additional feedback through notices on the City website, in the
newspaper, and sent to all potentially affected businesses, but the City Council may
desire to weigh in on whether they desire other public outreach. Additionally, staff is
requesting direction on engaging a consultant to prepare the necessary
environmental documents
FISCAL ANALYSIS:
The fiscal impact varies depending on the policy approach that is desired. The main
direct cost to the City of this policy is the cost of retaining a consultant to conduct the
environmental analysis. As mentioned previously, if the City’s Ordinance is modeled
after the LA County Ordinance, a Supplemental EIR is anticipated to be sufficient at
a cost of between $10,000 and $15,000. If an entirely fee-based approach is taken,
the cost is anticipated to be greater, between $15,000 and $20,000 if an Initial
Study/Negative Declaration is conducted or between $30,000 and $35,000 if a full
EIR is determined to be required.
In addition to these direct costs, there will be staff time associated with outreach,
overseeing the environmental process, drafting the Ordinance, and bringing the
Ordinance back for consideration. This work is anticipated to be significant, but can
be accommodated if priorities are adjusted. Should the City Council ultimately adopt
regulation of single-use bags, there will also be staff time associated with
enforcement. Enforcement is anticipated to be undertaken on a complaint basis,
and staff does not anticipate a large amount of non-compliance and associated
complaints. However, in the event that there are a substantial number of complaints,
reconsideration of the impact on workload would be necessary.
In addition to the costs borne by the City to create and implement an Ordinance,
there could potentially be financial impacts to customers and businesses covered by
the Ordinance depending on how it is crafted. Customers may bear some costs
associated with charges for single-use bags that they purchase or for switching to
reusable bags. If customers choose to respond to this Ordinance by shopping in
jurisdictions without such Ordinances in place, there may be some lost business,
which could affect sales and tax revenues. A recent study by the National Center for
Policy Analysis (NCPA), a think tank that advocates for private, free-market
alternatives to government regulation, presented some suggestive evidence that this
may be occurring in LA County. However, this effect is likely to be small in the case
of Culver City since our neighboring jurisdictions have either already passed or are
actively considering their own Ordinances. Another potential impact to covered
businesses suggested by the NCPA is an increase in the use of produce/product
bags and shopping cart theft, but it is unclear how persistent or large this potential City of Culver City, California
Agenda Item Report
cost would be to covered Culver City businesses and whether it would be offset by
lower costs associated with the purchase of fewer bags and the collection of charges
for bags.
Based upon the direction (if any) provided by the City Council this evening to pursue
regulation of single-use bags, staff will include additional fiscal impacts related to the
approach selected by the City Council.
MOTION:
That the City Council:
1. Discuss the recommendation of the Sustainability Subcommittee on the subject
of regulation of single-use bags; and,
2. Determine if the City Council wishes to pursue such regulation; and,
3. Should the City Council determine it wishes to pursue such regulation:
A. Provide direction regarding pursuing one of the following options for
regulating single-use bags:
i. Requiring retailers, as defined, to charge customers for every
single-use paper and plastic bag they use
ii. Requiring retailers, as defined, to charge customers for every
single-use paper bag they use and banning the distribution of
single-use plastic bags; or,
iii. Other approach as deemed appropriate; and,
B. Provide direction regarding any public outreach process the City
Council may desire.