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HomeMy WebLinkAbout1990-08-14 - AGENDA REPORTS - RECYCLED PAPER PRODUCTS (2)� � 4 AGENDA REPORT City Manager Approval Item to be presented by: Ike: D. 0 1 DATE: August 14, 1990 SUBJECT: Purchasing Recycled Paper Products DEPARTMENT: Finance/General Services 0 BACKGROUND Andrea Daroca Councilmember Heidt requested that this item on the acquisition of recycled products be on the agenda. The State Integrated Solid Waste Management Act of 1989 mandates cities to reduce their waste stream to sanitary landfills by 25% in 1995 and 50% in the year 2000. Los Angeles County, the State of California, and the nation generally have reached a crisis situation in the area of solid waste disposal. As a result, recycling efforts -are rapidly expanding locally and regionally. However, the markets for recycled items are decreasing because of gluts resulting from an overabundance of recycled materials. A good example of market glut is in the area of recycling old newspapers (ONP). In June, 1989, the average price paid for ONP was $48 per ton. In June, 1990, the average price paid dropped to $20 per ton and has dropped to $10 per ton in July, 1990. Most recyclers are having a difficult time finding a market for ONP. This situation also applies to recycled glass. The problem is basically a supply and demand issue --there is an abundant supply, but demand has been low. To help alleviate this situation, many organizations including government agencies are establishing policies to purchase recycled paper and other items. Staff has researched local vendors and state contract prices for recycled paper products and found the following results. Both copier paper and office paper supplies are not readily available through the state. The state requires too large an order quantity for the City of Santa Clarita to store. For example, 200 cases of copier paper at a 7% to 11% savings over local suppliers is required. The city uses 192 cases per year. Additionally, the state charges $40 per delivery and takes a minimum of four weeks to process and coordinate the delivery of paper to the agency. A local vendor can provide recycled copier paper at an added 7% to 11% cost over the state's contract price within two days in a quantity which the city can store. Other recycled office paper supplies have inconsistent delivery and costs which are not readily available to local paper suppliers, and they are recommending that the city wait until recycling suppliers are set up to provide the recycled products at a reasonable delivery time and cost. Staff has tested recycled copier paper in existing city copiers and printers and found no problems with this paper being used in these machines. - 2 - RECOMMENDATION That staff be authorized to purchase recycled copier paper. The purchase of recycled copier paper will cost the city an estimated additional 4% or $260 per year in comparison to regular copier paper. Additionally, that staff be directed to purchase recycled office supplies as suppliers can provide needed quantities on a timely basis and at a constant quality and price.