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Exhibit CC 03-20-2012 #14 Single Use Carryout Bag Ordinance c. XHIBIT 3/20/2012 Municipal Regional Stormwater Permit Mandate: Reduce Trash Loads from the Storm Draintir "',T; System: •40%by July 2014 •70% by July 2017 v. •100% by July 2022 � . ,. • ',_ , r C'R,� '�' - , — r s Y 1, ,. k0. ` t _ r r r ''1 Larry Johmann-Guadalupe River 100 to 300 yards downstream of Virginia St.3/20/2010 1 3/20/2012 CUPERTINO City of Cupertino's Trash Load Baseline Category Annual Load(Gal.) Generated Trash Load(based on regional methodology) 25,292 •Baseline(Current)Street Sweeping -12,846 •Baseline(Current)Annual Storm Drain Cleaning -311 Trash Load Baseline 12,135 Must reduce trash load baseline by 40%by 7/1/14 *Credit for load reduction activities prior to the 2009 base year CUPERTINO Control Measures Already Implemented Control Measure Estimated Load Reduction Credit *Existing Enhanced Street Sweeping(Cupertino parking enforcement) .5% CR-1:Single-Use Carryout Plastic Bag Ordinance - 'CR-2:Polystyrene Foam Food Service Ware(City property only) 2% *CR-3:Public Education and Outreach Programs(SCVURPPP) 6% CR-4:Uncovered Loads(Sheriff enforces Vehicle Code&Recology 5% implemented per post-MRP franchise agreement) •CR-5:Anti Littering/Illegal Dumping(Follow-up&enforcement) 2% 'CR-6:Trash Bin Mgmt(Recology assists per post-MRP agreement) 3% OF-1:On-Land Clean-up(Staff&volunteers) 1% - OF-2:Enhanced Street Sweeping(post-MRP) QF-3:Partial Trash Capture Devices OF-4:inlet Maintenance , - •OF•5:Fut Trash Capture Devices(2 at Wilco project) _ 4%s • •QF•OF&C ek:Clean-up. TRASH LOAD REDUCTIONS ALREADY IMPLEMENTED(3,218 gal.) 26.5% •Control Measures already implemented and/or budgeted 2 3/20/2012 Litter Reduction Control Measures Not Yet Selected Control Measures to Select from Approx.Load Estimated Cost to Achieve 40%Litter Reduction Reduction Credit CR-1A:Single-Use Carryout Bag Ban at large grocery 8% $25K EIR CR-1B:Carryout Bag Ban at all retail,except restaurants 12% $5K(public outreach) CR-2:Polystyrene Foam Ban at Food Serving Facilities 6% $25K (EIR&outreach) CR-3:Four Outreach Events w/public feedback(survey) 2% $500 CR-5A:Anti-Litter/Illegal Dumping(signs/fences at > 2% $20K 50%of problem sites) CR-5B:Anti-Litter/Illegal Dumping(surveillance cameras) 2% $100K CR-6A:Trash Bin Mgmt(Strategic Plan more bins and 3% $25K-$50K maintenance in public places,e.g.bus stops) CR-6B:Bin Mgmt(Litter Control at Retail Improvement 1% per Unknown(private Districts)private shopping center owner measures 17 acres property owner actions) QF-1:On-Land Clean-up(staff/volunteer cleanup event) 2% $1K-$2K QF-2:Enhanced Street Sweeping in Retail areas 3.6% $10K-$15K QF-3:Partial Trash Capture Devices(e.g.14 inlet screens) 2% $10K-$20K OF-4:Inlet Maintenance 3.5% $25K Need 13.5% (1%so approx.121 gallons of Utter) Options & Estimated Costs to Achieve 40% Litter Reduction Options Estimated Start-up$ Est.Annual$ Full Bag Ban $5 K $2K—$5K Includes participation in San (public education Mateo County EIR at no cost (public outreach) first 2-3 years) (affirm participation by 3/27/12) Partial Bag Ban • $25K for EIR $25K • $25K for additional annual $50K (inlet maintenance) inlet cleaning No Bag Ban Requires more sweeping in retail areas,inlet $65K-$17OK $50K—$60K maintenance,anti-litter (signs/fences)&partial capture inlet devices 3 3/20/2012 Other Agency Bag Ordinances & Timelines Agency Type Ordinance Implementation City of San Jose Ban covers all retailers in the city, Adopted a ban on Effective Jan.1,2012 exempting restaurants and non-profit single use plastic reuse organizations.For 2 yrs,paper carryout bags in Jan. bags will be sold for 100;after 2 yrs the 2011 min.price per paper bag will be 250. City of Sunnyvale Bans single-use plastic at grocery, December 13,2011 Stores over 10K sq ft convenience&retail over 10K sq ft;a Starting June 20,2012; 100 min.price on paper bags which expands to all retailers by increases to 250 1/1/2014. March 2013 San Mateo County Planning a ban similar to San Jose's. Target date for an Targeting Implementation Atherton,Belmont, San Mateo County hired a consultant to ordinance:as soon as for January 2013 Burlingame,East Palo Alto, conduct EIR;Potential participating the EIR is complete; Foster City,Hillsborough, agencies to be determined in Mar-Apr Estimated EIR Menlo Park,Redwood City, 2012(Cupertino,Los Altos,Mt View, completion October San Carlos,San Mateo&the Milpitas,Campbell,Los Gatos, 2012 County of San Mateo Saratoga). West Valley JPA Waste Mgmt Reps(on 2/2/12) To be decided by cities (Saratoga,Los voted to recommend to their respective and town of Campbell, cities/town adopting a bag ban,leaving Los Gatos,Monte Gatos,Campbell) the details of the ban up to the cities Sereno and Saratoga City of Los Altos City staff submitted a 40%Litter To be eligible for 8% To be eligible for 8%litter reduction plan which(unless changed) litter reduction credit, reduction credit,must includes a ban at large supermarkets city must adopt an have fully implemented Council received staff report 1/10/2012 ordinance before 7/1/14 ban prior to July 1,2014 Santa Cruz County The County Board of Supervisors ban September 13,2011 Effective March 20,2012 single-use plastic bags&requirel00 min.on paper bags 4 6 44- q March 20, 2012 A>ght ca The Honorable Mark Santoro GROCERS GROCC E ER RS S Mayor, City of Cupertino 4;SOCINiION 10300 Torre Avenue Cupertino, CA 95014 RE: Single Use Carryout Bag Ordinance—OPPOSE UNLESS AMENDED Dear Mayor Santoro, On behalf of the California Grocers Association, I write to inform you of our interest to work with Cupertino on a carryout bag ordinance if you choose to pursue an ordinance. We believe it is crucial carryout bag regulations meet their intended environmental goals, respect consumers, and minimize impacts to retailers. Unfortunately, if only "Large Grocery" stores are regulated CGA would be forced to oppose the ordinance due to the financial and operational impacts resulting from not regulating all retail establishments selling packaged food items. The California Grocers Association is a non-profit, statewide trade association representing the food industry since 1898. CGA represents approximately 500 retail member companies operating over 6,000 food stores in California and Nevada, and approximately 300 grocery supplier companies. Retail membership includes chain and independent supermarkets, convenience stores and mass merchandisers. CGA members include a number of grocery companies operating in Cupertino. The model of banning single-use plastic bags and allowing recyclable paper bags for a charge has shown to encourage reusable bag use, provide consumers no-cost and low-cost carryout options, and minimize operational and financial impacts to retailers. Over 40 California jurisdictions that have passed this type of ordinance include the Counties of Los Angeles and Alameda along with the cities of Long Beach, San Francisco, Sunnyvale and San Jose, with dozens more in progress. If Cupertino decides to move forward with a carryout bag regulation we encourage you to use the process being developed as part of the San Mateo County effort, which includes participation by more than 15 jurisdictions. Our experience has shown the draft ordinance developed through this regional effort has proven to benefit the environment while respecting consumers and retailers. It is critical neighboring jurisdictions regulate carryout bags in a similar way in order avoid a patchwork of varying ordinances. If carryout bag regulations vary throughout the region it would likely confuse consumers, as well as create competitive disadvantages for retailers operating near neighboring jurisdictions and for retailers with multiple store locations operating in multiple jurisdictions. If all retail establishments that sell grocery items are not equally regulated both regulated and unregulated stores will be placed at a disadvantage. Industry experience has shown consumers will make purchasing decisions based on price and convenience. When faced with the choice of CALIFORNIA GROCERS ASSOCIATION 1 1215 K Street,Suite 700 I Sacramento,CA 95814-3946 I T:916.448.3545 I F:916.448.2793 I www.cagrocers.com The Honorable Mark Santoro March 20, 2012 Page 2 buying the same products from an unregulated store, where a consumer can receive a no cost single use bag, versus shopping at a regulated, where consumers are asked to bring a reusable bag or pay for a paper bag, consumers will overwhelmingly choose to shop at the unregulated store. It is important to note that unregulated stores will also face consumer pressures to continue to provide single use carryout bags at no cost and incur the financial and operational cost of doing so. The only way to avoid unnecessary financial and operational disadvantages is to regulate all food retailers equally, like the cities of Sunnyvale, San Jose, San Francisco and all 15 jurisdictions in Alameda County have done. Food retailers currently operate on a profit margin of less than 1%, according to data from the Food Marketing Institute. Any additional financial or operational burden resulting from a carryout bag ordinance would jeopardize the profitability, possibly the viability, of a store. The added value to regulating all retailers selling grocery items is creating consistency for consumers and greater environmental gain. Thank you for your consideration and please consider CGA a partner as you encourage reusable bag use. Sincerely, TIMOTHY M. JAMS Manager, Local G• - ment Relations cc: Members, Cupertino City Council Mr. David W. Knapp, City Manager, City of Cupertino Ms. Kim Smith, City Clerk, City of City of Cupertino Ms. Cheri Donnelly, Environmental Programs Manager, City of Cupertino CALIFORNIA GROCERS ASSOCIATION 1 1215 K Street,Suite 700 I Sacramento,CA 95814-3946 I T:916.448.3545 I F:916.448.2793 I www.cagrocers.com 3/20/2012 X14( Municipal Regional Stormwater Permit Mandate: Reduce Trash Loads from the Storm Drain •= System: •40% by July 2014 •70% by July 2017 •100% by July 2022 * .. frit is r ry Larry Johmann-Guadalupe River 100 to 300 y<<rds downstream of Virginia St.3/20/2010 1 3/20/2012 CUPERTINO City of Cupertino's Trash Load Baseline Category Annual Load(Gal.) Generated Trash Load(based on regional methodology) 25,292 *Baseline(Current)Street Sweeping -12,846 *Baseline(Current)Annual Storm Drain Cleaning -311 Trash Load Baseline 12,135 Must reduce trash load baseline by 40%by 7/1/14 *Credit for load reduction activities prior to the 2009 base year CUPERTINO Control Measures Already Implemented Control Measure Estimated Load Reduction Credit *Existing Enhanced Street Sweeping(Cupertino parking enforcement) .5% CR-1:Single-Use Carryout Plastic Bag Ordinance - •CR-2:Polystyrene Foam Food Service Ware(City property only) 2% *CR-3:Public Education and Outreach Programs(SCVURPPP) 6% CR-4:Uncovered Loads(Sheriff enforces Vehicle Code&Recology 5,/0 implemented per post-MRP franchise agreement) CR-5:Anti Littering/Illegal Dumping(Follow-up&enforcement) 2% *CR-6:Trash Bin Mgmt(Recology assists per post-MRP agreement) 3% •QF-1:On-Land Clean-up(Staff&volunteers) 1% OF-2:Enhanced Street Sweeping(post-MRP) - QF-3:Partial Trash Capture Devices - QF-4:Inlet Maintenance *QF-5:Full Trash Capture Devices(2 at Valico project) 4% •QF-6:Creek Olean-up i r 3%' TRASH LOAD REDUCTIONS ALREADY IMPLEMENTED(3,216 gal.) 26.5% Control Measures already implemented and/or bu dgeted I. , :_.z 2 3/20/2012 Litter Reduction Control Measures Not Yet Selected Control Measures to Select from Approx.Load Estimated Cost to Achieve 40%Litter Reduction Reduction Credit CR-1A:Single-Use Carryout Bag Ban at large grocery 8% $25K EIR CR-1 B:Carryout Bag Ban at all retail,except restaurants 12% $5K(public outreach) CR-2:Polystyrene Foam Ban at Food Serving Facilities 6% $25K (EIR&outreach) CR-3:Four Outreach Events w/public feedback(survey) 2% $500 CR-5A:Anti-Litter/Illegal Dumping(signs/fences at > 50%of problem sites) 2% $20K CR-5B:Anti-Litter/Illegal Dumping(surveillance cameras) 2% $100K CR-6A:Trash Bin Mgmt(Strategic Plan more bins and 3% $25K-$50K maintenance in public places,e.g.bus stops) CR-6B:Bin Mgmt(Litter Control at Retail Improvement 1% per Unknown(private Districts)private shopping center owner measures 17 acres property owner actions) QF-1:On-Land Clean-up(staff/volunteer cleanup event) 2% $1 K-$2K QF-2:Enhanced Street Sweeping in Retail areas 3.6% $10K-$15K QF-3:Partial Trash Capture Devices(e.g.14 inlet 2% $10K-$20K screens) QF-4:Inlet Maintenance 3.5% $25K Need 13.5% (1%=approx.121 gallons of litter) Options & Estimated Costs to Achieve 40% Litter Reduction Options Estimated Start-up$ Est.Annual$ Full Bag Ban $2K—$5K Includes participation in San $ $51C (public education Mateo County EIR at no cost (public outreach) first 2-3 years) (affirm participation by 3/27/12) Partial Bag Ban • $25K for EIR $25K • $25K for additional annual $50K (inlet maintenance) inlet cleaning No Bag Ban Requires more sweeping in retail areas,inlet $65K-$170K $50K—$60K maintenance,anti-litter (signs/fences)&partial capture inlet devices 3 3/20/2012 Other Agency Bag Ordinances & Timelines / e • Type Ordinance Implementation City of San Jose Ban vers all retailers in the city, Adopted a ban on Effective Jan.1,2012 `—`— �,axAFnpting restaurants and non-profit single use plastic reuse organizations.For 2 yrs,paper carryout bags in Jan. bags will be sold for 100;after 2 yrs the 2011 min.price per paper bag will be 250. City of Sunnyvale Jans single-use plastic at grocery, December 13,2011 Stores over 10K sq ft -- j n onvenience&retail over 10K sq ft;a Starting June 20,2012; 1 100 min.price on paper bags which expands to all retailers by increases to 250 1/1/2014. March 2013 San Mateo County Planning a ban similar to San Jose's. Target date for an Targeting Implementation Atherton,Belmont, San Mateo County hired a consultant to ordinance:as soon as for January 2013 Burlingame,East Palo Alto, conduct EIR;Potential participating the EIR is complete; Foster City,Hillsborough, agencies to be determined in Mar-Apr Estimated EIR Menlo Park,Redwood City, 2012(Cupertino,Los Altos,Mt View, completion October San Carlos,San Mateo&the Milpitas,Campbell,Los Gatos, 2012 County of San Mateo Saratoga). West Valley JPA Waste Mgmt Reps(on 2/2/12) To be decided by cities (Saratoga,Los voted to recommend to their respective and town of Campbell, cities/town adopting a bag ban,leaving Los Gatos,Monte Gatos Campbell) the details of the ban up to the cities Sereno and Saratoga City of os Altos City staff submitted a 40%Litter To be eligible for 8% To be eligible for 8%litter reduction plan which(unless changed) litter reduction credit, reduction credit,must includes a ban at large supermarkets city must adopt an have fully implemented Council received staff report 1/10/2012 ordinance before 7/1/14 ban prior to July 1,2014 Santa Cruz County The County Board of Supervisors ban September 13,2011 Effective March 20,2012 single-use plastic bags&requirel00 min.on paper bags 3 (id � a� A1 (1- ysi IN A A) -T°\< 4 CL 3/.2o /lz_ Grace Schmidt From: Rod Sinks[rodsinks @gmail.com] Sent: Monday, March 19, 2012 5:41 PM To: Grace Schmidt Cc: David Knapp; Rick Kitson Subject: Supplemental input to 3/20/12 council meeting - Item 14 (litter reduction) - Email 1 of 3 Hi Grace, I've gathered some additional information relevant to the Council discussion tomorrow evening on waste reduction. This is the first of three emails. Would you please forward these to the Council? This email includes a link to the extensive EIR San Jose prepared prior to enacting their plastic bag ban, with a note from Emy Mendoza, who oversaw its preparation. Thanks, Rod Forwarded message From: Mendoza, Emy <Emy.Mendoza@a sanjoseca.gov> Date: Wed, Feb 29, 2012 at 6:24 PM Subject: RE: Question from Cupertino To: Rod Sinks <rodsinks@gmail.com> gmail.com> Cc: Liang Lee <llee@valleywater.org>, rsinks @cupertino.org, Chris Elias <CEliasAvalleywater.org>, Brett Calhoun <JCalhoun @valleywater.org>, "Lacaze, Skip" <Skip.Lacaze @sanjoseca.gov>, "Marshall, Elaine" <Elaine.MarshallAsanj oseca.gov> The FIR can be found in the Environmental Impact Report Library with the City's Planning Department. The direct URL link to the EIR is as follows: http://www.sanjoseca.gov/planning/eir/SingleUseBagBan/SINGLE- USE%20CARRYOUT%20BAG%20ORDINANCE.pdf There are a number of references to trash and plastic bags throughout the document, from local studies and studies done throughout the State. The following are from section 2.0 Project Description: 2.1.2.2 Waste Management 1 According to CalRecycle's 2008 Statewide Waste Characterization Study, approximately 155,848 tons of paper bags and 123,405 tons of plastic grocery and merchandise bags were disposed of in 2008, comprising 0.4 percent and 0.3 percent of all landfilled waste in California, respectively. 2.1.2.3 Litter and Waterways p 18: The preparers of the 2008 Anacostia Watershed Trash Reduction Plan completed by the District of Columbia Department of the Environment discovered that plastic bags made up 21 percent of the trash in the main river and 47 percent of the trash in tributaries to the river. p 20: A study completed for the Santa Clara Valley Urban Runoff Pollution Prevention Program (SCVURPPP) documented items of trash collected during a study for various stretches of creeks and rivers in the San Jose area during 2005. Trash was collected from 19 different stretches of Coyote Creek, Silver Creek, and the Guadalupe River, among other waterways. The study found that plastic bags comprised approximately 10 percent of the total number of trash items collected. The study also completed a focused count at one storm drain outfall on Stevens Creek on three separate dates from October 2008 to February 2009. Of the 849 items of trash collected from this outfall, 198 were plastic bags, comprising roughly 23 percent of the overall sample. In 3.1, Land Use and Aesthetics, there is a section focused on Litter (p. 44) which includes the following references: p 49: The City of Los Angeles did a waste characterization study in 2004 and found that plastic bags made up 25 percent by weight and 19 percent by volume of litter found in 30 storm drain catch basins. p 49: ... a litter management pilot study done by Caltrans from 1998 through 2000 on a freeway in the Los Angeles area found that plastic film (including plastic carryout bags) made up 7 percent by mass and 12 percent by volume of the litter collected. 2 p 49: Recent litter surveys done on land in San Jose found substantial quantities of plastic, including an identifiable number of retail plastic bags (4.88 percent of the "large litter" category) and non-retail plastic bags (2.84 percent of the "large litter" category). 3.3.1.2 Litter and Waterways p 78: The 2008 International Coastal Cleanup (ICC), produced by the Ocean Conservancy, found that plastic bags were the second most common debris item collected worldwide during the annual oneday coastal cleanup event.... Locally, 15,295 items of trash were collected in Santa Clara County, of which 1,580 (10.3 percent) were plastic bags and 371 (2.4 percent) were paper bags.47 In Ireland, where a fee has been levied on plastic bags, out of 10,142 total items collected, 118 (1.2 percent) were paper bag;, and only 67 (0.7 percent) were plastic bags. Regarding costs savings: p 20: The City of San Jose estimates that, without control of litter at the sources, implementation of an expanded liter control program to protect creeks, as required in the new Stormwater Permit, could cost the City up to four million dollars annually. Hope that's all helpful. Let me know if you have more questions. Emy Mendoza Zero Waste Planner City of San Jose Lnvironmental Services Department (ESD) 10th Floor 200 Last Santa Clara Street 3 San Jose, CA 95113-1905 P: 408-975-2554 F: 408-292-6211 Emy.Mendoza a,sanjoseca.gov www.sjrecycles.org 4 Grace Schmidt From: Rod Sinks [rodsinks @gmail.com] Sent: Monday, March 19, 2012 5:44 PM To: Grace Schmidt Cc: David Knapp; Rick Kitson Subject: Supplemental input to 3/20/12 council meeting - Item 14 (litter reduction) - Email 2 of 3 Attachments: Existing Polystyrene Bans-October 2010-Source-Clean Water Action.doc This email contains information on those cities that have worked to limit or eliminate polystyrene. Forwarded message From: Mendoza, Emy <Emy.Mendoza @sanjoseca.gov> Date: Mon, Mar 19, 2012 at 4:37 PM Subject: Links to polystyrene ordinances To: Rod Sinks <rodsinks @gmail.com> Californians Against Waste (CAW), www.cawrecycles.org has a list of all cities with some kind of ordinance. San Jose is on the list because Styrofoam food containers are banned at large city events. Link to CAW polystyrene page: Polystyrene: Local Ordinances I Californians Against Waste Or direct url: http://cawrecycles.org/issues/plastic campaign/polystyrene/local I've attached the word doc from Clean Water Action, even though it's from 2010. Emy Mendoza Zero Waste Planner City of San Jose Environmental Services Department (ESD) 10th Floor 200 East Santa Clara Street 1 San Jose, CA 95113-1905 P: 408-975-2554 F: 408-292-6211 Emy.Mendoza@sanjoseca.gov www.sjrecycles.org 2 COMPILED BY CLEAN WATER ACTION Polystyrene Bans in California • City of Alameda—Enacted January 2008 o Prohibits vendors from providing disposable food service ware made of EPS and requires disposable food service ware to be biodegradable or compostable. o All City facilities are prohibited from using polystyrene foam disposable food service ware and all city departments and agencies will not purchase or acquire polystyrene foam disposable food service ware for use at city facilities. o Food vendors are strongly encouraged to provide reusable food service ware in place of disposable food service ware. In instances where food vendors decide to use a biodegradable or compostable disposable food service ware product that is not affordable, a food vendor may charge al "take out fee"to customers to cover the cost difference (enforced on July 1, 2008). o Link to ordinance • City of Albany—Enacted September 1, 2008 o The ban prohibits the use of polystyrene foam take out food containers at all food service facilities within the City. o Link to ordinance • City of Aliso Viejo—Effective July 1,2005 o All polystyrene products are not allowed to be used by food vendors etc. o Ordinance#2004-060 • City of Berkeley—Adopted January 1990 o Prohibits restaurants and retail food vendors from serving prepared food in EPS products (both on premises and take-out); requires>1= 50%(by volume)of food packaging at restaurants and retail food vendors to be comprised of recyclable or degradable material. It also prohibits the City of Berkeley from purchasing any EPS food packaging, or utilizing such packaging at City-sponsored events and requires>1= 50% (by volume) of the food packaging which the City, or any City-sponsored event to be recyclable or degradable. o Penalty=guilty of an infraction according to Berkeley municipal code; City Attorney may seek legal, injunctive, or other equitable relief as enforcement. o Link to ordinance (Title 11.58 and 11.60) • City of Calabasas,CA—Effective July 1, 2007 o Prohibits sale or distribution of EPS food packaging from restaurants and retail food vendors. Prohibits sale or distribution of EPS food packaging at City facilities or City events. Exemptions due to high cost of alternatives and contractual obligations are allowed if approved by the City Manager. o Penalty: guilty of an infraction according to Calabasas municipal code. City Attorney may seek legal, injunctive, or other equitable relief as enforcement. o Link to ordinance Updated as of October 2010 1 COMPILED BY CLEAN WATER ACTION • City of Capitola,CA—Adopted December 2009 o Prohibits the use of EPS food packaging from restaurants and retail food vendors. Requires use of compostable or recyclable food packaging by restaurants and retail food vendors, as long as it is more affordable. o Penalty: after three months of effective date first=written warning; second violation = fine not to exceed $100;third violation =fine not to exceed $200; fourth and subsequent violations=fine not to exceed $500. o After challenge from the Restaurant Association,the food packaging ordinance was reaffirmed by council in June 2007. o Ordinance#939 became effective 5/23/09 Link to ordinance • City of Carmel,CA—Adopted 1989 o Prohibits food vendors from providing take-out food packaging made from EPS. o Prohibits wholesalers doing business within the city from selling EPS food packaging. o Link to ordinance (Title 8.68) • City of Del Rey Oaks-Adopted December 2009 o Does not apply to single-use plastic straws, cup lids and utensils. o Permits food service operators to sell pre-packaged food that food service operators buy and resell to customers. o Requires food service operators to use biodegradable, compostable or recyclable products. It defines recyclable plastics as plastics coded with resin identification codes of 1-5 and recyclable as any material that is accepted by the city of special district recycling program, including, but not limited to, paper,glass, aluminum, cardboard and plastic bottles,jars and tubs. o Link to ordinance (Page 35) • City of Emeryville,CA—Adopted March 2006 o Prohibits the use of polystyrene foam disposable food service ware o Disposable food service ware must be biodegradable/compostable or recyclable, unless there is no available biodegradable/compostable or recyclable alternative. o Link to ordinance • City of Fairfax,CA—Adopted in 1993 o Prohibits EPS food packaging for all restaurants and food retail vendors. o Link to ordinance (Title 8.16) • City of Fremont,Ca-Effective January 1, 2011 o Prohibits EPS disposable foodware from vendors within the city.Vendors would be required to use recyclable or compostable material instead. o Link to ordinance Updated as of October 2010 2 COMPILED BY CLEAN WATER ACTION • City of Hercules,CA—Adopted May 2008 o Bans all EPS beverage cups,takeout containers and other food service utensils in restaurants and at city facilities. o Penalties: A first offense would result in a written notice of violation; a second, in a $100 fine; and subsequent violations, a $250 fine o Link to ordinance (Sec. 5-3109,Title 5, Chapter 3) • City of Huntington Beach—Adopted January 2005 o Prohibits City from purchasing/acquiring EPS food service products in City buildings and City sponsored events; contracting parties should prevent use of EPS food service products by attendees or vendors. Exempts the City's Senior Nutrition Program. o Link to ordinance Page 12 o http://www.ci.huntington- beach.ca.us/residents/parks facilities/rentals/central park bandstand.cfm • City of Laguna Beach—Adopted December 2007; Effective July 1, 2008. o Prohibits local food establishments from serving customers disposable food service ware made from EPS and non-recyclable plastic, including polystyrene. o This prohibition applies to all restaurants, shops, retail stores,grocery stores, delicatessens, or food coaches located within the City of Laguna Beach. o Prohibits use of single use EPS containers and kitchen ware at city facilities and sponsored events, restaurants, and retail food vendors. o Precludes the use of EPS or non-recyclable plastic at all city facilities and related uses o Enforcement: written notice for first violation, fines of$100, $200, and $500 for subsequent violations. o Link to the ordinance (Title 7.05) • City of Laguna Hills-Adopted April 2008 o EPS prohibited at municipal facilities • City of Laguna Woods—Adopted May 2004 o Prohibits the use of polystyrene food service products within city facilities and at city- sponsored events. o Link to ordinance • City of Los Angeles,CA-Adopted July 22, 2008, o EPS ban at all city facilities and ban on plastic carryout bags. o Link to ordinance Chapter 4 article 13 • County of Los Angeles,CA—June 2008, o EPS ban at all county facilities in phase I and investigating feasibility of expanding ban to all retailers for phase o Link to ordinance Updated as of October 2010 3 COMPILED BY CLEAN WATER ACTION • City of Malibu, CA—Adopted February 2005 o Prohibits all restaurants, retail food vendors and non-profit food providers from serving or packaging food, meat, eggs or bakery products in EPS containers. Does not apply to items packaged outside Malibu, but sold within City boundaries. o Penalty: first violation =written warning; second violation = $100 fine; third violation = $200 fine;third and subsequent violations=$500 fine. o Link to ordinance Title 9.24 o Link to ordinance Letter and Ordinance • County of Marin,CA—Adopted January 1, 2010. o All retail food vendors, restaurants, and county facilities can no longer provide prepared or take-out food in, on or with disposable food packaging that contains polystyrene o Link to ordinance • City of Millbrae, CA—Adopted October 2007 o Prohibits food vendors from providing prepared food to customers in foam or solid polystyrene disposable food service ware. Provisions also apply to individuals or entities using City facilities; purchases by City departments or agencies are also prohibited. Exemptions include food prepared or packaged outside the City, if specific items or types of food service ware do not exist for a specific application or for undue hardship. o Violators will receive a written warning; subsequent violations may include penalties established in the Municipal Code; administrative hearings may be held to adjudicate penalties. o Link to ordinance • County of Monterey,CA—Adopted April 2010; effective November 2010 o Prohibits take out PS foam packaging in unincorporated areas of Monterey County. o Link to ordinance • City of Monterey-Adopted February 2009 o Prohibits food providers from dispensing prepared food to customers made from non- recyclable plastic and expanded polystyrene (EPS). o Prohibits all City facilities,City-managed concessions, and City sponsored and permitted events from non-recyclable plastic and EPS food service containers. o Penalty: set forth in city's administrative fine resolution o Link to ordinance • City of Newport Beach,CA—Adopted October 14, 2008; Effective April 29, 2009 o Bans all polystyrene food packaging containers at all restaurants,food vendors, and all city facilities and city-sponsored events. o Link to ordinance (Title 6 Section 5) • City of Oakland,CA—Adopted June 2006 o Prohibits food vendors from providing prepared food in EPS to customers. Prohibits all City franchises, contracts, and vendors from using EPS food service containers at City facilities or on City projects. Requires all food vendors using any disposable food service ware to use biodegradable or compostable disposable food service ware unless they can Updated as of October 2010 4 COMPILED BY CLEAN WATER ACTION show an affordable biodegradable or compostable product is not available for a specific application. When biodegradable or compostable disposable food service ware is not affordable, a food vendor may charge a "take out fee" to customers to cover the cost difference. Food vendors are further encouraged to reuse food service ware in place of using disposable food service ware.The City will conduct an effectiveness study by 1/1/08. o Penalty: first violation =written warning; second violation = a fine not to exceed $100.00; third warning= a fine not to exceed $200.00;fourth warning= a fine not to exceed $500.00. o Link to ordinance Title 8.07 • County of Orange, CA-Adopted 2006/7 o Bans the possession, sale,or distribution of EPS as disposable food packaging at all county-owned facilities • City of Pacific Grove,CA–Adopted May 2008 o Ban on EPS food packaging and requires food service ware to be biodegradable or compostable. o Link to ordinance • City of Pacifica,CA—As of September November 2009, o Council passed an ordinance banning EPS from restaurants and supermarkets EPS take- out containers. o Link to ordinance • City of Palo Alto, CA-Adopted April 2009; Goes into Effect April 22, 2010 o Ban on EPS and non-recyclable food containers from retail food vendors and city facilities and vendors o Link to Ordinance • City of Pittsburg,CA–Enacted 1991 o Requires restaurants to phase out EPS o Requires at least 50%of food packaging to be made from recyclable material. Link to ordinance Title 8.06.210 • City of Richmond, CA-Adopted October 20, 2009; Effective April 2009 o Bans all disposable foodware, except biodegradable or compostable and aluminum o Strong preference for reusable foodware, especially at city facilities and with city events and vendors o Subject to misdemeanor violation penalties in Richmond Municipal Code Chapter 2.62 o Link to ordinance • City of Riverbank, CA(Stanislaus County)—As of October 2008, o Ban all Styrofoam takeout containers at fast food restaurants. o Any disposable food service ware for food prepared and served in Riverbank must be compostable or recyclable unless there is no suitable product that is within 15 percent Updated as of October 2010 5 COMPILED BY CLEAN WATER ACTION of the cost of noncompostable or nonrecyclable alternatives. (There is no cost exemption for Styrofoam.) o Link to ordinance • City of San Bruno, CA-Adopted January 27, 2009; Goes into effect April 1, 2010 o Prohibits the use of EPS and PS foodware, including lids, straws and utensils o Allows use of biodegradable, compostable, and recyclable foodware o Violations may result in fines according to the Municipal Code: • 1st=warning, 2nd =$100, 3rd =$200,4th =$500. • Enforcement is by the City of San Bruno, not the County Health Inspector o Link to the ordinance • City of San Clemente,CA—Adopted March 2004 o Prohibits City from purchasing/acquiring EPS food service products in City buildings and City sponsored events; contracting parties should prevent use of EPS food service products by attendees or vendors. o Penalty=forfeit of rental contractor's security deposit; decision by City Council on whether or not to terminate concession license; decision by City Council on whether or not to co-sponsor future events with violators. o Link to ordinance • City and County of San Francisco,CA—Adopted November 2006 o Prohibits the use of EPS food service ware and requires the use of biodegradable/compostable or recyclable alternatives by restaurants, retail food vendors, City departments, and City contractors and lessees, unless there is no affordable alternative. o Penalty: first violation—written warning; second violation =fine not to exceed $100; third violation =fine not to exceed $200; all subsequent violations=fine not to exceed $250, with annual violations not to exceed $500. o Link to ordinance • City of San Jose-Adopted November 2009 o Prohibits vendors' use of polystyrene foam at specified public events o Link to Special Events Policy • City of San Juan Capistrano—Adopted April 2004 o Prohibits City from purchasing/acquiring EPS food service products in City buildings and City sponsored events; contracting parties should prevent use of EPS food service products by attendees or vendors. Encourages businesses, NGOs,groups, and other governmental entities to cease purchase of EPS food service products. o Penalty:forfeit of rental contractor's or permittee's security deposit. Link to ordinance: Link to Ordinance Updated as of October 2010 6 COMPILED BY CLEAN WATER ACTION • San Mateo County,CA—Enacted April 22,2008 o Bans EPS and "non-recyclable plastic" disposable food service ware at all county facilities. Requires all county facilities and departments to use compostable or biodegradable food service ware. o Link to ordinance • City of Santa Monica—Adopted February 2007 o Prohibits food providers from dispensing prepared food to customers made from non- recyclable plastic and expanded polystyrene (EPS). o Prohibits all City facilities, City-managed concessions, and City sponsored and permitted events from non-recyclable plastic and EPS food service containers. o Penalty: first violation =written warning; second violation =$100 fine;third and subsequent violations= $250 fine; fines are cumulative and each day that a violation occurs shall constitute a separate violation. o Link to ordinance • City of Santa Cruz—Adopted January 2008 o Prohibits EPS and requires biodegradable, compostable, or recyclable alternatives. o Link to ordinance • County of Santa Cruz,CA—Enacted January 2008 o All food vendors are prohibited from distributing EPS packaging. o Requires that at least 50%of each retailer's food packaging be biodegradable or compostable. o Link to ordinance • City of Scotts Valley,CA—Adopted June 2008; Effective June 17, 2009 o Bans EPS food containers at all retail food venders and requires the use of biodegradable and compostable food container and service ware. o Penalties: first violation ($100); second violation ($200) third violation ($500) and fines for food providers in connection with a commercial or non-commercial special event. o Link to ordinance (Title 8 Section 1) • City of Seaside,CA-Effective 8/4/10 o Doesn't specify what businesses are impacted. o Bans PS foodware, allows biodegradable food packaging. • County of Sonoma, CA—Adopted June 1989 o Prohibits any person from willfully possessing,giving, receiving, lending, offering or exposing for sale, delivering,furnishing,transferring or disposing of polystyrene foam food packaging on county premises. o Penalty: an infraction is punishable by a fine not exceeding$250. o Link to ordinance (Chapter 19 6.1) • City of South San Francisco,CA-Effective October 1,2008 o Green Foods Packaging Ordinance o Applies to food providers, city facilities, projects and events. Updated as of October 2010 7 COMPILED BY CLEAN WATER ACTION o Bans polystyrene foam disposable food service ware. o City Manager issues written warning, 30 days to comply. o Penalties are first violation$100, second violation$200, and third violation$500 o Link to ordinance • County of Ventura,CA—Adopted October 2004 o Prohibits the use of EPS food service products at the County harbor, parks, Government Center, and County-sponsored events by vendors,franchisees, lessees, contractors or other commercial food and beverage purveyors. Encourages businesses, NGOs, groups, and other governmental entities to cease purchase of EPS food service products. o Link to ordinance • City of West Hollywood,CA—Adopted 1990 o Prohibits polystyrene food packaging for all retail food venders and restaurants. o Link to ordinance OUTSIDE CALIFORNIA • Boston, Mass- o City considering ban on polystyrene food take out containers. o Link to ordinance (go to min 10 08) • Chicago, Illinois o Link to ordinance • Freeport, ME—Adopted January 1990 o Prohibits restaurants, retail food vendors, and town vendors from selling or serving prepared food in EPS products, and food packagers from packaging meat, eggs, bakery products or other food in EPS containers.The effective date of the ordinance can be postponed if town-wide recycling program for polystyrene is established. o Penalty:violations of the ordinance shall be punishable by fines not exceeding$250 for the first violation in a 1-yr period, and not exceeding$500 for the second violation and each subsequent violation in a 1-yr period. o Link to ordinance • Issaquah,WA- Effective October 1, 2009 o All food service providers can not use non recyclable material o Link to ordinance • Portland,OR—Adopted January 1990 o Prohibits restaurants and retail food vendors from serving prepared food in EPS products(both on premises and take-out), exempts non-profits. o Link to ordinance • Rahway, New Jersey—Adopted December 1996 o Bans food containers and utensils made from PVC and polystyrene. o Link to ordinance (Chapter 217 Article II) Updated as of October 2010 8 COMPILED BY CLEAN WATER ACTION • Seattle,WA—Effective July 2010 o Ban on all EPS citywide. o Link to ordinance • Suffolk County, NY—Enacted in 1988 o Bans all food containers or other packaging countywide composed of polystyrene or polyvinyl chloride. o Link to ordinance Updated as of October 2010 9 Grace Schmidt From: Rod Sinks [rodsinks @gmail.com] Sent: Monday, March 19, 2012 5:59 PM To: Grace Schmidt Cc: David Knapp; Rick Kitson Subject: Supplemental input to 3/20/12 council meeting - Item 14 (litter reduction) - Email 3 of 3 Attachments: Foodware Cost Comparisons_6-15-2010.pdf This email has information on actions taken or underway in Mountain View and unincorporated Santa Clara County. Sunnyvale's ban will be phased in starting in June 2012; details here: http://sunnyvale.ca.gov/Departments/Environmental Servic es/GarbageRecyclingand WasteReduction/WasteRedu ctionandReuselssues/PlasticBags.aspx The attachment also compares the cost of polystyrene and bio/compostable foodware. Rod Forwarded message From: Allison Chan <alison @savesfbay.org> Date: Mon, Mar 19, 2012 at 5:16 PM Subject: RE: Hi from Cupertino To: Rod Sinks <rodsinks @gmail.com> Councilmember Sinks, We are excited that Cupertino is considering joining in on San Mateo County's single-use bag EIR. The major argument in favor of pursuing a ban that covers all retailers is the fact that San Jose, Sunnyvale, and the unincorporated county have all banned plastic bags at all retail establishments. Maintaining regional consistency on this policy is the most business-friendly approach and will lead to the greatest environmental benefit. Here is some information you may find useful for generating a discussion on polystyrene: o Article on Mountain View moving forward with bag and polystyrene ban: http://www.mercurynews.com/peninsula/ci 19831433?source=rss&cid=dlvr.it o Food ware cost comparisons from San Mateo County Environmental Health (attached) o Santa Clara County is preparing a negative declaration and ordinance for the unincorporated county. They expect to bring a report to their Housing, Land Use, Environment and Transportation Committee on May 8, 2012 and go to the BOS with a negative declaration, CEQA Resolution and ordinance on May 22. 1 Please let me know how Save The Bay can be helpful as Cupertino (hopefully) moves forward with single-use bag and polystyrene food ware policies. Thanks, Allison Allison Chan Policy Associate, Save The Bay allisonsaveSFbay.org 1 510.463.6818 I (saveSFbav Help us plant 30,000 native seedlings this winter! 2 Attachment 2: Product Cost Comparison Product Polystyrene/Plastics Biodegradable Tahoe Green Avg of 2 websites Store 10" 3-Compartment $47 per 500 $67 per 500 $52 per 500 Plate $0.09 per unit $0.13 per unit $0.10 per unit 9" Plate $32 per 500 $47 per 500 $52 per 500 $0.06 per unit $0.09 per unit $0.10 per unit 10x9x3 Clamshell $45 per 200 $63 per 200 $55 per 200 $0.23 per unit $0.32 per unit $0.28 per unit 16 oz Hot/Cold Cup $59 per 1000 $114 per 1000 $110 per 1000 $0.06 per unit $0.11 per unit $0.11 per unit 16 oz Cold Cup $104 per 1000 $116 per 1000 $94 per 1000 $0.10 per unit $0.12 per unit $0.09 per unit Utensils $38 per 1000 $65 per 1000 $48 per 1000 $0.04 per unit $0.07 per unit $0.05 per unit 12 oz. Hot Bowl $23 per 500 $37 per 500 $49 per 500 $0.05 per unit $0.07 per unit $0.10 per unit CostCo Product Poly/Plastics Bio/Compostable 10" 3-Compartment Plate $12 per 175 $14 per 175 $0.07 per unit $0.08 per unit 9" Plate $12 per 175 $14 per 175 $0.07 per unit $0.08 per unit 10x9x3 Clamshell Not available $19 per 100 $0.19 per unit 16 oz Hot/Cold Cups $13 per .500 $9 per 200 $0.03 per unit $0.05 per unit 16 oz Cold Cups $12 per .500 $12 per 500 $0.02 per unit $0.03 per unit Utensils $8 per 500 Not available $0.02 per unit 12 oz Hot Bowl $5 per 125 $6 per 125 $0.04 per unit $0.05 per unit Smart and Final Product Poly/Plastics Bio/Compostable 10" 3-Compartment Plate $10 per 125 $11 per 125 $0.08 per unit $0.09 per unit 9" Plate $10 per 125 $11 per 125 $0.08 per unit $0.09 per unit 10x9x3 Clamshell $9 per 100 Not available $0.09 per unit 16 oz Hot/Cold Cups $7 per 200 $4 per 100 $0.04 per unit $0.04 per unit 16 oz Cold Cups $7 per 200 $4 per 100 $0.04 per unit $0.04 per unit Utensils $4 per 100 Not available $0.04 per unit 12 oz Hot Bowl $2 per 30 $3 per 30 $0.07 per unit $0.10 per unit Qc 3 - z0 - � Z l4 Kirsten Squarcia From: Tim James [tjames @CAGrocers.com] Sent: Tuesday, March 20, 2012 2:11 PM To: Mark Santoro; Orrin Mahoney; Gilbert Wong; Barry Chang; Rod Sinks Cc: City Clerk; Cupertino City Manager's Office; Cheri Donnelly Subject: Single Use Carryout Bag Ordinance - March 20 Agenda Attachments: Cupertino Carryout Bag 3-20-12.pdf Dear Councilmembers, Please accept the attached letter regarding the Single Use Carryout Bag item on the March 20, 2012. Please feel free to contact me with any questions or for additional information. Thank you for your consideration. Tim Timothy James Manager, Local Government Relations 1215 K Street, Suite 700 Sacramento, CA 95814 Phone: 916-448-3545 Cell: 916-832-6149 PRIVILEGED & CONFIDENTIAL: This communication, including attachments, is for the exclusive use of addressee and may contain proprietary, confidential and/or privileged information. If you are not the intended recipient, any use, copying, disclosure, dissemination or distribution is strictly prohibited. If you are not the intended recipient notify the sender immediately by return e-mail, delete this communication and destroy all copies. CC 3 - Lo Kirsten Squarcia From: Allison Chan [allison @savesfbay.org] Sent: Tuesday, March 20, 2012 12:30 PM To: Mark Santoro; Orrin Mahoney; Gilbert Wong; Barry Chang; Rod Sinks Cc: City Clerk Subject: Plastic bags in Cupertino Attachments: STBsupport_Cupertinobags_3-20-12.pdf Dear Mayor Santoro and Council Members, Please accept the attached letter of support from Save The Bay regarding Cupertino's participation in the San Mateo County EIR and a single-use bag ordinance in Cupertino. Thank you for your time. Sincerely, Allison Chan Allison Chan Policy Associate, Save The Bay allison a(�saveSFbay.org 1 510.463.6818 I a,saveSFbay Help us plant 30,000 native seedlings this winter! 1 C1Y 44' 1961 SAVE:BAY March 20, 2012 Cupertino City Council 10300 Torre Avenue Cupertino, CA 95014-3202 RE: Single-use bags in Cupertino Dear Mayor Santoro and Council Members: On behalf of Save The Bay's 25,000 members throughout the Bay Area, including hundreds in Cupertino, we urge the city to join other Santa Clara County jurisdictions in participating in San Mateo County's single-use bag EIR. This is an opportunity that the city should not pass up, as it significantly decreases the resources necessary to pursue a bag ordinance in Cupertino. Plastic bags are ubiquitous pollutants in our Bay and waterways which suffocate our wetlands and threaten fish and wildlife. The draft ordinance developed by San Mateo County Environmental Health is modeled after the ordinance adopted by the City of San Jose—one of the strongest bag bans in the country. The inclusion of all retail establishments in the scope of the ordinance helps to ensure a level playing field for all retailers— both in Cupertino and outside the city's borders—and eliminates thousands of single-use plastic bags currently being used and thrown away in the city. Both Sunnyvale and San Jose passed bag ordinances that apply to all retailers; Cupertino should foster regional consistency by doing the same. Businesses are not the only ones to benefit from a broad approach; this ordinance will also provide the most consistency for Cupertino customers, who can begin to adopt the habit of bringing reusable bags with them regardless of where they shop. Save The Bay commends the City of Cupertino for addressing plastic bag pollution in our Bay and waterways. We respectfully urge your participation in San Mateo County's EIR and the adoption of a single-use bag ban at all retail establishments. Thank you for your consideration. Sincerely, David Lewis Executive Director 1330 Broadway, Suite 1800 Oakland,CA 94612 510.463.6850 saveSFbay.org 3 /20 /1, Karen B. Guerin From: Tim James [tjames @CAGrocers.com] Sent: Tuesday, March 20, 2012 2:11 PM To: Mark Santoro; Orrin Mahoney; Gilbert Wong; Barry Chang; Rod Sinks Cc: City Clerk; Cupertino City Manager's Office; Cheri Donnelly Subject: Single Use Carryout Bag Ordinance- March 20 Agenda Attachments: Cupertino Carryout Bag 3-20-12.pdf Dear Councilmembers, Please accept the attached letter regarding the Single Use Carryout Bag item on the March 20, 2012. Please feel free to contact me with any questions or for additional information. Thank you for your consideration. Tim Timothy James Manager, Local Government Relations 1215 K Street, Suite 700 Sacramento, CA 95814 Phone: 916-448-3545 Cell: 916-832-6149 PRIVILEGED & CONFIDENTIAL: This communication, including attachments, is for the exclusive use of addressee and may contain proprietary, confidential and/or privileged information. If you are not the intended recipient, any use, copying, disclosure, dissemination or distribution is strictly prohibited. If you are not the intended recipient notify the sender immediately by return e-mail, delete this communication and destroy all copies. 1 March 20, 2012 (1 c a The Honorable Mark Santoro C A L I F O R N I A ASSOCIATION Mayor, City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 RE: Single Use Carryout Bag Ordinance—OPPOSE UNLESS AMENDED Dear Mayor Santoro, On behalf of the California Grocers Association, I write to inform you of our interest to work with Cupertino on a carryout bag ordinance if you choose to pursue an ordinance. We believe it is crucial carryout bag regulations meet their intended environmental goals, respect consumers, and minimize impacts to retailers. Unfortunately, i f only "Large Grocery" stores are regulated CGA would be forced to oppose the ordinance due to the financial and operational impacts resulting from not regulating all retail establishments selling packaged food items. The California Grocers Association is a non-profit. statewide trade association representing the food industry since 1898. CGA represents approximately 500 retail member companies operating over 6,000 food stores in California and Nevada, and approximately 300 grocery supplier companies. Retail membership includes chain and independent supermarkets, convenience stores and mass merchandisers. CGA members include a number of grocery companies operating in Cupertino. The model of banning single-use plastic bags and allowing recyclable paper bags for a charge has shown to encourage reusable bag use, provide consumers no-cost and low-cost carryout options, and minimize operational and financial impacts to retailers. Over 40 California jurisdictions that have passed this type of ordinance include the Counties of Los Angeles and Alameda along with the cities of Long Beach, San Francisco, Sunnyvale and San Jose, with dozens more in progress. If Cupertino decides to move forward with a carryout bag regulation we encourage you to use the process being developed as part of the San Mateo County effort, which includes participation by more than 15 jurisdictions. Our experience has shown the draft ordinance developed through this regional effort has proven to benefit the environment while respecting consumers and retailers. It is critical neighboring jurisdictions regulate carryout bags in a similar way in order avoid a patchwork of varying ordinances. If carryout bag regulations vary throughout the region it would likely confuse consumers, as well as create competitive disadvantages for retailers operating near neighboring jurisdictions and for retailers with multiple store locations operating in multiple jurisdictions. If all retail establishments that sell grocery items are not equally regulated both regulated and unregulated stores will be placed at a disadvantage. Industry experience has shown consumers will make purchasing decisions based on price and convenience. When faced with the choice of CALIFORNIA GROCERS ASSOCIATION 1 1215 K Street,Suite 700 1 Sacramento,CA 95814-3946 1 T:916.448.3545 1 F:916.448.2793 1 www.cagrocers.com The Honorable Mark Santoro March 20, 2012 Page 2 buying the same products from an unregulated store, where a consumer can receive a no cost single use bag, versus shopping at a regulated, where consumers are asked to bring a reusable bag or pay for a paper bag, consumers will overwhelmingly choose to shop at the unregulated store. It is important to note that unregulated stores will also face consumer pressures to continue to provide single use carryout bags at no cost and incur the financial and operational cost of doing so. The only way to avoid unnecessary financial and operational disadvantages is to regulate all food retailers equally, like the cities of Sunnyvale, San]ose, San Francisco and all 15 jurisdictions in Alameda County have done. Food retailers currently operate on a profit margin of less than 1%, according to data from the Food Marketing Institute. Any additional financial or operational burden resulting from a carryout bag ordinance would jeopardize the profitability, possibly the viability, of a store. The added value to regulating all retailers selling grocery items is creating consistency for consumers and greater environmental gain. Thank you for your consideration and please consider CGA a partner as you encourage reusable bag use. Sincerely, TIMOTHY M. JAMS Manager, Local Gs ► ment Relations cc: Members, Cupertino City Council Mr. David W. Knapp, City Manager, City of Cupertino Ms. Kim Smith, City Clerk, City of City of Cupertino Ms. Cheri Donnelly, Environmental Programs Manager, City of Cupertino CALIFORNIA GROCERS ASSOCIATION 1 1215 K Street,Suite 700 I Sacramento,CA 95814-3946 I T:916.448.3545 I F:916.448.2793 I www.cagrocers.com