HomeMy WebLinkAbout1990-07-24 - AGENDA REPORTS - RECYCLED PRODUCTS (2)NEW BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
BACKGROUND
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AGENDA REPORT
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City Manager Approvay�y07
Item to be presente✓d'byy::
Andrea Daroca
July 24, 1990
Purchasing Policy: Recycled Products
Finance/General Services 0
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 other cities' procurement with the
following results. Recycled items usually costs between 10 and 30 percent more
than virgin material items. The main impact of this policy will be in the area
of paper procurement. Paper purchases for the City usually range between
$50,000 and $90,000 per year. If the City set a policy to purchase only
recycled paper, it could cost the City an additional $20,000 to $27,000 each
year. Staff is presently -researching the purchase of recycled paper supplies
through the State of California to see if this could provide lower prices and
using the paper to make sure it will work effectively in City copiers, Fax
machines and typewriters.
That staff continue to research other options, experiment with the recycled
products and communicate with the state's recycling store. Staff will report
back on August 14, 1990, with further information on comparative pricing,
quality, effectiveness, and fiscal impacts.
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