Title
Consider approving Resolution No. 2014-105 authorizing the purchase of the annual supply of residential solid waste refuse sacks from Duro Bag; authorizing the City Manager to exercise option to purchase such sacks in future years, providing an effective date, and take appropriate action.
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BACKGROUND:
The City's Public Works Department delivers eighty-four (84) paper refuse sacks to each single family household once per year at no charge to the resident. Deliveries are typically made in January or February.
DISCUSSION:
Bid requests for the purchase of the annual supply of refuse sacks were mailed to four (4) vendors. The bid requests included paper refuse sack specifications of 50 pound Natural Kraft paper meeting the Technical Association of Pulp and Paper Industry (TAPPI) standards.
Two (2) bids were received and opened on October 28, 2014. The lower bidder meeting specifications and TAPPI standards is Duro Bag at $0.359 per sack for a total of 701,960 sacks. The amount of sacks being purchased has increased to meet the residential and City operation needs. This contract will be for a one-year period with the option for an additional one-year period, if agreeable to both parties.
The total cost based on the bid for the refuse sacks is $252,004. Funds in the amount of $238,700 are budgeted in the Fiscal Year 2014-2015 Public Works operating budget for this annual purchase of refuse sacks. The additional funding ($13,304) will come from the special services and equipment rental accounts within the Solid Waste Division. The budgeted amount is based upon an estimated purchase price of $0.34 per sack. The estimated price was based on historical pricing and an inflationary estimate. This is an 18% price increase from the bid in 2013. The second bid was $0.395 per paper sack, which equates to a 30% price increase.
This item is consistent with Core Value #3 to provide strong, thriving commercial and residential neighborhoods th...
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