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File Number: 11 -333 to exclude its service area from Phase 1 of the ordinance prior to March 2, 2012, and prior to January 1, 2014 for Phase 2. Any jurisdiction that chooses to exclude its service area from either Phase 1 or Phase 2, may request to be re- included at a later time. Staff supports Phase 1 of the Mandatory Recycling Ordinance as an effective means of achieving new diversion and complying with forthcoming state requirements, but has concerns with the feasibility and costs associated with implementing Phase 2. Staff recommends supporting the adoption of the ordinance and re- evaluating the feasibility of Phase 2 at a later time. Applicable General Plan Policy Action 27.01 -A: Source Reduction and Recycling Programs. Environmental Review StopWaste.Org has prepared a Draft Environmental Impact Report (EIR) to consider the environmental impacts of the Single Use Bag and Mandatory Recycling ordinances. The EIR was designed to identify environmental impacts in a maximum impact scenario. There were no significant impacts identified with a Single Use Bag Reduction Ordinance. The only significant environmental impact identified for a Mandatory Recycling Ordinance was the potential for increased nitrogen oxide emissions (NOx) in the San Joaquin Valley due to additional organic materials transported into the area for processing. The EIR will be certified by the ACWMA Board on December 14, 2011. Fiscal Impact A Mandatory Recycling Ordinance may result in a revenue shortfall for the City of San Leandro. If staff assumes that the affected front -end loader bin customers will save 10% by reducing garbage service and adding recycling service, preliminary estimates suggest a $20,000 annual loss in the City's franchise fee revenues. Losses in franchise fees from the Oro Loma L -3 area would be less than $20,000, but are impossible to project at this time. Additional losses may be realized if industrial debris box customers migrate from solid waste to recycling service. Potential losses in franchise fee revenues by implementing Phase 2 are unknown at this time, but are assumed to increase substantially if customer rates are not adjusted. Attachments • StopWaste.Org Draft Single Use Bag Reduction Ordinance • StopWaste.Org Draft Mandatory Recycling Ordinance PREPARED BY: Liz Jimenez, Solid Waste & Recycling Specialist, Public Works Department City of San Leandro Page 5 Printed on 11/15/2011