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County's ordinance would meet the intent of state law. The ordinance would make it mandatory for businesses, self-haulers, and multi-family residential developments with more than five units to source separate garbage from recyclables or else face a 10% surcharge. The ordinance also states that no Alameda County resident may submit material to any transfer station or landfill in the state unless it meets the guidelines set forth by Stopwaste.org. The ordinance also requires local waste management providers to submit compliance plans indicating how they will meet the overall intent of the ordinance. Property owners and managers would be required to annually inform tenants of the requirements of the ordinance and waste management providers would be subject to certain additional reporting requirements. It allows the Alameda County Waste Management Authority to conduct inspections on residential and commercial properties as well as transfer stations in order to ensure compliance; to grant certain waivers following consultation with and approval by the City; and to create penalties, including fines and misdemeanor offenses, relative to the ordinance itself. The Mandatory Recycling Program would be instituted in two phases, with the first addressing all typical dry material and taking effect July 1, 2012. The second phase, dealing with organic matter, would take effect July 1, 2014. The ordinance does have an opt-out provision allowing municipalities to participate only in certain portions of the ordinance. This pertains primarily to the commercial and residential recycling ordinance as opposed to any information relating to transfer stations. The opt-out deadline for Phase 1 is March 2, 2012 and Phase 2 is January 1, 2014. Once a jurisdiction opts out, it may opt back in at the discretion of the Authority. The Single Use Bag Ordinance is consistent with the Authority's long-range plan and intends to deal with environmental concerns relating to plastic bags in particular. The ordinance stipulates that after January 1, 2013, no store may provide single use carry out bags to customers. Stores may make them available for a charge of 10 cents, to be itemized separately on the customer's bill. This amount increases to 25 cents January 1, 2015, although certain language in the ordinance leaves the increase to the discretion of the Authority. "Store" generally pertains to any packaged food store such as a drug store, pharmacy, supermarket, grocery store or convenience store and does not include restaurants or charitable organizations. There are no restrictions relative to customers bringing in their own bags. Mr. Bocian stated that staff recommends the Council opt out of the Mandatory Commercial Recycling program at this time based on the potential for increased costs. The Authority obtained a consultant to review the ordinance and it was concluded that overall, there may be a reduction in cost but that this may not pertain to each individual city and its rates. Staff is concerned with the potential impact to rates and would like to conclude its own rate review with Pleasanton Garbage Service (PGS) before reaching a decision. Staff does recommend opting in on the Single Use Bag ordinance at this time. Councilmember Thorne asked if staff feels this would result in any loss of local control. Mr. Bocian said the concern was raised, though not necessarily with respect to the Single Use Bag ordinance. Staff feels that there could be issues relating to the Mandatory Commercial Recycling program and would like time to get a better handle on the financial impacts to residents and businesses. Councilmember McGovern questioned and confirmed with Mr. Bocian that the commercial recycling program goes a step further than state guidelines. She wondered if businesses would view the state's guidelines as preferable. She questioned the legality of the Authority's proposal for unannounced visits and other monitoring measures. Mr. Bocian said staff has not explored this from a legal perspective, but the Authority has indicated these measures are not high on its agenda. Councilmember McGovern said PGS had indicated that the cost could be offset by the money raised from selling additional recyclables and said it is critical that the public not be penalized with higher rates if at all possible. She said she had no issue with the bag ordinance but had heard of a group raising legal challenges against similar ordinances. Mr. Bocian said the legal challenges to date have focused City Council Minutes Page 4 of 5 February 21, 2012