ORDINANCE _________________

AN ORDINANCE related to the City's purchasing programs and procurement of reusable products, recycled content products and recyclable products; amending definitions; clarifying that the City may adopt standards promulgated by Federal and State Agencies; clarifying roles and responsibilities; amending reporting requirements; amending Seattle Municipal Code Chapter 3.04 in connection therewith; and recodifying SMC Ch. 3.04 Subchapter II Purchases and Subchapter III Recycled Content Product Procurement Program as SMC Ch. 20.60.

WHEREAS, in 1992 Resolution 28556 and Ordinance 116270 established policies, procedures and programs to encourage and increase the procurement of recycled content products and recyclable products; adding new sections to SMC Chapter 3.18 and amending SMC Sections 3.18.806 A, 3.18.810 and 3.18.826; and

WHEREAS, unless there is sufficient market demand for recycled content products, recycling collection programs will ultimately fail to achieve the objective of diverting large portions of the waste stream from disposal; and

WHEREAS, the City finds it desirable to continue to implement a procurement policy promoting the purchase and use of reusable products, recycled content products, and recyclable products, thereby helping to develop markets for materials that have been diverted from the solid waste stream; and

WHEREAS, SMC Chapter 3.04 has not been substantially reviewed and updated since 1992; and

WHEREAS, amendments to this ordinance are necessary to clarify the role of the administering Director, update mechanisms to adopt content standards, and clarify reporting requirements; and

WHEREAS, this ordinance articulates policy linkages to the City's Environmental Management Program and Sustainable Purchase Policy; and

WHEREAS, the City's purchasing legislation is currently located in SMC Ch. 3.04 and within the powers and duties of the Department of Executive Administration; and

WHEREAS, Title 20 of the Seattle Municipal Code was set-aside for "Public Works, Improvements and Purchasing" and the purpose of publishing the Code is to allow citizens access to important laws; and

WHEREAS, citizen access to information about the City's purchasing authority would be improved by relocating the Code to Title 20; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Chapter 3.04 Subchapters II & III (SMC 3.04.100 through SMC 3.04.226) of the Seattle Municipal Code is re-designated Chapter 20.60 of the Seattle Municipal Code. The Code Reviser is authorized and directed to make ministerial changes to the Municipal Code, consistent with direction from the Department of Executive Administration, to implement the re-codification of this ordinance and to make reference changes throughout the Municipal Code following and in accordance with the amendments herein.

Section 2. Subsection 3.04.200 C of the Seattle Municipal Code is amended as follows:

3.04.200 Purpose.

The purpose of this program is to:

* * *

C. Provide Adopt content standards for recycled content and recyclable products for use in procurement programs by all departments;

Section 3. Section 3.04.202 of the Seattle Municipal Code is amended as follows:

3.04.202 Definitions.

1. "Building insulation" means a material, primarily designed to resist heat flow, which is installed between the conditioned volume of a building and adjacent unconditioned volumes or the outside. This term includes but is not limited to insulation products such as blanket, board, spray-in-place, and loose-fill insulation that are used as ceiling, floor, foundation, and wall insulation. This term also includes insulation products used to improve the thermal effectiveness of building envelopes, but does not apply to insulation for air-handling units, insulation for acoustic purposes, or coldstorage insulation unless otherwise designated by the Director or his or her predecessor.

2. "Cement" means a powder-like manufactured mineral product, often referred to as "Portland cement," used in the manufacture of cement concrete.

3. "Cement concrete" means concrete which contains cement.

4. "Cement with fly ash" means cement or cement concrete containing amounts of fly ash as determined by USEPA product standards.

51. "City solid waste stream" means any solid waste created or generated within City limits whether residential or nonresidential.

6. "Compost" means the biological and manual conversion of yard wastes, food wastes, cleanwood wastes, woody land-clearing debris and manure, whether source-separated or mixed, into a humus-like material.

72. "Content standards" means standards set or adopted by the Director or his or her predecessor pursuant to SMC 3.04.208 for the purpose of specifying the minimum content of recycled materials, whether post-consumer waste or secondary waste, in a product necessary for the requirements that must be satisfied before a product to qualify as may be deemed a recycled content product or a recyclable product. The Ccontent standards may address categories of products or particular products also specify that a product be made in whole or in part from recyclable materials, and the maximum level of hazardous substances allowable in a product.

83. "Contractor" means persons or companies contracting with the City for the purchase of any supplies, materials, equipment or service. This definition does not include contracts for services in connection with:

a. The acquisition of real property and property rights;

b. Processing of claims; and

c. All litigation of the City or in which the City or any of its departments may be interested.

9. "End use" means an intended final use of a product by a consumer which will not result in additional value being added to the product.

10. "Fly ash" means the finely divided mineral residue which results from the combustion of coal, and which is typically collected from boiler stack gases by electrostatic precipitation or mechanical collection devices.

11. "Food waste" means the organic residues generated by the handling, storage, sale, preparation, cooking and serving of foods.

12. "Hazardous substance" means any hazardous substance listed as a hazardous substance pursuant to Section 313 of Title III of the Superfund Amendments and Reauthorization Act, all ozone-depleting compounds as defined by the Montreal Protocol of October 1987, and such other substances adopted by rule by the Director or his or her predecessor as presenting a threat to human health or the environment.

13 4. "Local recycled content product" means such product or products that are derived from recycled materials recovered from City solid waste, provided the material used in the manufacture of such products can be reasonably traced back to its generation within City limits. Such products must contain a minimum of twenty-five percent (25%) recycled materials except in those cases where the U.S. Environmental Protection Agency has adopted procurement guidelines under the Resource Conservation and Recovery Act of 1976 (Public Law 94-580, 42 U.S.C. Section 6901 et seq.) ("RCRA"). In those cases, the minimum content of recycled material shall not be less than specified in the most current adopted issue of those guidelines.

14. "Lubricating oils" means petroleum based oils for reducing friction in engine parts and other mechanical parts.

15. "Mixed waste paper" means assorted grades of paper that have not been separated into individual grades of paper before being processed for use in the manufacture of new products.

16 5. "Paper and paper products" means all items manufactured from paper or paperboard.

17. "Post-consumer paper" means:

a. Paper, paperboard and fibrous wastes which have passed through their end use as consumer items; including corrugated boxes, newspapers, magazines, mixed waste paper, tabulating cards, and used cordage from places like retail stores, offices buildings and homes; and

b. All paper, paperboard and fibrous wastes that are collected as mixed municipal solid waste and later separated at a processing facility.

c. This definition does not include those paper materials generated from, and commonly reused within, an original manufacturing process such as mill broke or fibrous byproducts of harvesting, extractive or woodcutting processes, or forest residue such as bark.

18 6. "Post-consumer waste" means solid waste, including yard waste, which that has passed through its end use as a consumer item and is suitable as feedstock in product manufacture.

19 7. "Purchase order contract" means any contract or order which is duly authorized and awarded or entered into by the Director or a department for the purchase of tangible goods.

20 8. "Recyclable product" means a product or package made from a material for which curbside or drop-off collection systems are in place for a majority of City residents and/ or businesses, to divert from City solid waste for use as a raw material in the manufacture of another product or the reuse of the same product.

21 9. "Recycled content product" means a product containing a minimum of twenty-five percent (25%) recycled materials except in those cases where the U.S. Environmental Protection Agency has adopted procurement guidelines under the Resource Conservation and Recovery Act of 1976 (Public Law 94-580, 42 U.S.C. Section 6901 et seq.). In those cases, the minimum content of recycled material shall not be less than specified in the most current adopted issue of those guidelines.

22 10. "Recycled materials" means post-consumer waste and/ or secondary waste that has been recovered or diverted from solid waste and that can be utilized in place of a raw or virgin material in manufacturing a product.

23. "Rerefined oils" means used lubricating oils from which the physical and chemical contaminants acquired through previous use have been removed through a refining process. Re-refining may include distillation, hydrotreating or treatment employing acid, caustic, solvent, clay or other chemicals, or other physical treatments than those used in reclaiming.

24. "Retread tire" means a worn automobile, truck, or other motor vehicle tire, excluding airplane tires, whose tread has been replaced.

25 11. "Reusable product" means a product that can be used several times for an intended end use before being discarded, such as a washable food or beverage container or a refillable ballpoint pen.

26 12. "Secondary paper waste" means paper waste generated after the completion of a paper or paper product making process, such as envelope cuttings, bindery trimmings, printing waste, cutting and other converting waste, bud rolls, mill wrappers, and obsolete inventories, rejected unused fibrous waste generated during the manufacturing process such as fibers recovered from waste or trimmings of paper machine rolls (mill broke), or fibrous byproducts of harvesting, extractive or woodcutting processes, or forest residue such as bark.

27 13. "Secondary waste" means waste resulting from a part of a manufacturing process that, unless incorporated as a feedstock in product manufacture, must be disposed of as solid or hazardous waste.

28 14. "Solid waste" means all putrescible and nonputrescible solid and semisolid wastes, except wastes identified in WAC 173-304-015, including but not limited to garbage, rubbish, ashes, industrial wastes, swill, demolition and construction wastes, abandoned vehicles or parts thereof, discarded commodities, sludge from wastewater treatment plants and septage from septic tanks, wood waste, dangerous waste, and problem wastes. This includes all public, private, industrial, commercial, mining and agricultural operations. Unrecovered residue from recycling operations shall be considered solid waste.

29 15. "USEPA product standards" means the product standards of the United States Environmental Protection Agency published in the Code of Federal Regulations, Title 40, Chapters 248 through 253.

30. "Woody land-clearing debris" means tree stumps, trunks, brush, or other vegetation or plant waste generated from the process of clearing land for development.

31. "Yard waste" means vegetative prunings, leaves, grass or branches less than four inches in diameter generated from yards or other landscaped areas.

Section 4. Section 3.04.204 of the Seattle Municipal Code is amended as follows:

3.04.204 Policies.

A. All departments shall use, where practicable, reusable products, recycled content products and recyclable products. The term "practicable" shall mean that the product performs adequately for its intended use and is available at a fair and reasonable price. :

1. The recycled content product meets product specifications established by the Director;

2. The recycled content product is available from at least one vendor in sufficient quantity to meet City needs.

B. The City shall require, whenever practicable, its vendors, contractors and consultants to use recycled content paper on all documents submitted to the City. In addition, the City shall require, whenever practicable, its vendors, contractors, and consultants to use reusable products, recycled-content products and recyclable products. Failure of a vendor, contractor, or consultant to specify how it will comply this requirement may cause the City to determine that a bid is non-responsive.

C. The City shall maintain minimum content standards for the purchase of designated products, as consistent with USEPA and Washington State products and standards. establish the following goals, at a minimum, for the purchase of recycled content paper products, compost products, and rerefined lubricating oil products:

1. Recycled-content paper products as a percentage of the total dollar amount of paper products purchased on an annual basis

: a. At least forty (40) percent by 1993,

b. At least fifty (50) percent by 1994,

c. At least sixty (60) percent by 1995;

2. Compost products as a percentage of the total dollar amount of soils purchased on an annual basis:

a. At least twenty-five (25) percent by 1993,

b. At least fifty (50) percent by 1995,

c. At least sixty (60) percent by 1997;

3. Rerefined lubricating oil for use in all City vehicles, including trucks and heavy equipment, and all hydraulic lifts, as a percentage of the total dollar amount of lubricating oils purchased on an annual basis:

a. At least fifty (50) percent by 1994,

b. At least eighty (80) percent by 1995.

D. The Director shall may use recycled material content as a factor in determining the lowest and best bid in its procurement of goods and materials.

E. The Director shall promote the use of recycled content products and recyclable products to potential vendors to the City by publicizing their availability that the City emphasizes the use of environmentally preferable products by its contractors.

F. The Director, through the procedures set forth in SMC Chapter 3.02, is authorized to establish guidelines and/ or rules to further the intent of this section and ordinance.

G. All terms, conditions and requirements of t This section shall apply equally to the Director and any department when it acts to acquire any aspects of public works for the City.

H. These policies are intended to follow guidelines established by the United States Environmental Protection Agency for preferential procurement of recycled content products be compatible with the strategies and standards of the City's environmental management and sustainable purchasing programs.

I. Existing procurement policies and specifications shall be revised to include recycled content products or recyclable products unless the products do not meet an established performance standard of a department. In such situations, a department must provide the Director with satisfactory evidence that, for technical reasons, and for a particular end use, a product containing such materials will not meet reasonable performance standards.

Section 5. Section 3.04.206 of the Seattle Municipal Code is amended as follows:

3.04.206 Annual report.

A. Beginning March 15, 1994, t The Director shall provide an annual report to the City Council on or before March 15th of each year on the progress of implementation of the Recycled Content Product Program required in Resolution 28556 status of buy recycled activities. This report shall include data on the City's purchases of recycled content products, recyclable products, and reusable products. The Director may require periodic reporting by other departments to the Department of Executive Administration for the purpose of developing this report.

B. The Director shall compile records of purchases by departments for inclusion in the annual report. The report shall include all purchases in excess of One Thousand Dollars ($1,000). At a minimum, the report will include the following components:

1. The percentage of post-consumer and/or secondary waste in any recycled-content products actually purchased;

2. Price information comparing the cost of recycled content products to similar virgin products where applicable;

3. Information identifying the quantity of recycled-content products procured over a fiscal year as well as the percentage of total purchase dollars spent on recycled-content products within a given product category;

4. The availability of recycled content products;

5. The type of performance tests conducted on recycled content products and the nature of test failures, if any;

6. Department experience with the performance of recycled-content products;

7. Recommendations for changes in the Recycled Content Product Procurement Program, including recycled-content standards for additional products;

8. A discussion of potential products or product categories for which recycled content standards might be developed in the future;

9. A comparison of the performance of The City of Seattle's Recycled Content Product Procurement Program with other relevant jurisdictions.

C. Beginning February 1, 1994, each department shall report its actions to comply with the Recycled Content Procurement Program to the Director by February 1st of each year.

Section 6. Section 3.04.208 of the Seattle Municipal Code is amended as follows:

3.04.208 Standards for recycled content.

A. The Director or his predecessor shall set or adopt standards that specify the minimum level of recycled content, recyclability, reusability, or other aspects of environmental preferability, consistent with the U.S. Environmental Protection Agency ("USEPA"), Washington State standard, and any City environmental management plan. In no case shall these standards be less stringent than USEPA standards. In addition, the Department may adopt standards for products that have not been addressed by USEPA or Washington State. The standards shall place primary emphasis upon the percentage of post-consumer waste content and the recyclability of the product. materials, whether postconsumer waste or secondary waste, necessary to qualify a product as a recycled-content product. The standards shall:

1. Be consistent with the USEPA and Washington State recycledcontent standards, unless the Director finds that different standards would significantly increase recycled-content product availability or competition. In no case shall these standards be less stringent than USEPA product standards;

2. Place primary emphasis upon the percentage of post-consumer waste content and the recyclability of the product.

1. Recycled content product. The content standards shall address required amounts of recycled materials. The content standards may break down recycled materials into specified required amounts of postconsumer waste and secondary waste. The required amount of recycled materials shall be:

a. For all products for which the USEPA adopts procurement guidelines under RCRA, the required amount of recycled materials shall be at least that amount as specified in the guidelines and shall change as the guidelines are updated and adopted.

b. For all other products, the amount of recycled materials shall be at least twenty-five percent (25%) of all materials contained in the product.

The content standards may address other items as deemed appropriate by the Director.

B. The recyclability of a material shall be determined by whether or not in-City collection systems are in place to divert the material from City solid waste for use as a raw material in the manufacture of another product or the reuse of the same product. The existence of regional markets and identifiable end uses for a material shall also be taken into consideration when determining the recyclability of a material.

C. The Director shall consult with the appropriate departments regarding technical and performance specifications for products in those situations where a department has specific expertise in the use of the product and/ or the establishment of the product's performance specifications.

D. By December 1, 1992, as part of the Recycled Content Procurement Plan identified in Resolution 28556, the Director or his or her predecessor shall adopt recycled content standards for the following products or product categories:

1. Paper and paper products;

2. Building insulation;

3. Cement with fly ash;

4. Lubricating oils;

5. Latex paint;

6. The following products containing recycled glass: glass-plastic composite (GPC) sewer pipe, terrazzo and ceramic tile;

7. The following products containing recycled plastics: plastic lumber (park benches, picnic tables, piles, caissons, decks, raised walkways, fences and gates, landscape timbers, dimensional lumber and decking materials); traffic products (parking stops, bike racks, speed bumps and wheel chocks); bathroom products (toilet compartments, shower and dressing compartments); carpet and synthetic fiber cushions; and playground equipment.

The Director shall adopt specifications for the following products or product categories:

1. Retread tires;

2. Compost; and

3. Glass cullet including utility bedding, backfill, roadbase mix, landfill cover, and wastewater filtrations mediums.

E. The standards and specifications established pursuant to this section shall guide product purchasing by the Director and all departments. Under no circumstances shall the standards established pursuant to this section be less stringent than USEPA product standards

F E. Standards established pursuant to this section shall be developed for any additional products for which either Washington State or USEPA recycled-content standards are developed in the future. In addition, the Director may, at his or her discretion, adopt content standards for products for which standards have not been established by Washington State or the USEPA.

G. Existing procurement policies and specifications shall be revised to include recycled content products or recyclable products unless a recycled content product or recyclable product does not meet an established performance standard of a department. In such situations, a department must provide the Director with satisfactory evidence that, for technical reasons, and for a particular end use, a product containing such materials will not meet reasonable performance standards. Upon submittal of evidence satisfactory to the Director, a department will be granted a waiver by the Director. Such waiver shall not be granted for more than two (2) years without reissuance of a waiver within guidelines established by the Director.

Section 7. Section 3.04.210 of the Seattle Municipal Code is amended as follows:

3.04.210 Price preference.

A. The Director shall adopt rules for applying a price preference toward the purchase of recycled-content products identified in SMC Section 3.04.208D. The rules shall be applicable to purchases by the Director and all departments for those products identified in SMC Section 3.04.208D this chapter, as well as for other products for which content standards are developed according to SMC Section 3.04.208F. The rules shall include a maximum price preference of ten (10) percent of the lowest and best bid or price quoted by suppliers offering products without recycled content for recycled content products (as defined in SMC Section 3.04.202), unless the Director determines that a different price preference is warranted based upon factors such as the prevailing market price, product availability, and product quality. The rules shall include a price preference of fifteen (15) percent of the lowest and best bid or price quoted by suppliers offering products without recycled content, for local recycledcontent products (as defined in SMC Section 3.04.202 ), unless the Director determines that a different preference is warranted based upon factors such as the prevailing market price, availability and product quality.

B. A price preference shall be applied only to those bids where a nonrecycled content product is determined to have the lowest and best bid and similar products with recycled content have also responded to the bid. Where the Director determines that the purchase of a recycled-content, recyclable or reusable product is practicable as defined in SMC Section 3.04.204, a price preference shall not be applied. Upon determination that the purchase of such a product is practicable, the Director shall require that recycled content, recyclability or reusability be required as specifications in any invitations to bid for that product.

C. Prior to the adoption of rules under subsection A of this section, the departments may provide a maximum ten (10) percent price preference for a product that meets the USEPA product standards.

Section 8. Subsection 3.04.216 C of the Seattle Municipal Code is amended as follows:

3.04.216 Vendor certification of recycled material content

* * *

C. Products which meet certification rules and guidelines adopted by The State of Washington or USEPA shall be deemed to meet the requirements of this section.

Section 9. Subsection 3.04.222 C of the Seattle Municipal Code is amended as follows:

3.04.222 CIP Projects.

* * *

C. All City departments shall change their standard specifications to include recycled-content products and materials listed in adopted pursuant to Subchapter III of this chapter.

Section 10. Section 3.04.224 of the Seattle Municipal Code is amended as follows:

3.04.224 Responsibilities of the Director.

The Director is responsible for:

A. Collecting data on purchases (as a percent of total dollars purchased) by departments of recycled-content products, reusable products, and recyclable products on purchase orders;

B. Maintaining a directory of recycled-content products and recyclable products and vendors who carry these products;

C. Disseminating product information to departments , and creating and maintaining a "recycled-content product sample showroom" that would be accessible for all departments and interested general public ;

D. Developing and establishing rules, guidelines and specifications necessary to carry out these functions.implement and further the intent of this Subchapter III.

Section 11. Section 3.04.201 of the Seattle Municipal Code is deleted in its entirety.

Section 12. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of _________, 2004, and signed by me in open session in authentication of its passage this _____ day of __________, 2004.

_________________________________

President __________of the City Council

Approved by me this ____ day of _________, 2004.

_________________________________

Gregory J. Nickels, Mayor

Filed by me this ____ day of _________, 2004.

____________________________________

City Clerk

(Seal)

Brenda Bauer

Buy Recycled Ordinance

August 18, 2004

version #8a

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