1988-06-06 Special Called Meeting

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• CITY OF LA PORTE INTER-OFFICE MEMORANDUM T0: Ro t errera, City Manager DATE: May 31, 1988 FROM: ett, Public Works Director SUBJECT: Purchase of Plastic Garbage Bags Bids were opened on May 24, 1988 for the purchase of plastic garbage bags for the July bag handout. Low bid meeting specifications was submitted by Adams Plastic, our current supplier, in the amount of seventy (70) cents per pound. This is an increase of 18% above the price last paid for bags in April, 1988, and an increase of 84% above the price paid in April, 1987• In order to meet the demand of the July handout, over the counter sales and handouts to new accounts for the remainder of the 87/88 fiscal year, we estimate placing an order for 46,080 pounds at this time. The following table indicates the factors used to arrive at this figure: Needed for July handout 8,500 rolls Needed for August and September 5,000 rolls Over counter and New Accounts (5-25 thru 9-30) 2,250 rolls Total Needed 15,750 rolls less Rolls on hand (5-25-88) 9 990 rolls Total rolls needed 5~ rolls 5760 rolls x 8 lbs/roll= 46,080 lbs needed 46,080 lbs x $.70/lb = $32,256 total cost At the time the 1887-88 budget was prepared, the price of plastic bags had been stable for two (2) years, and an 84% increase was unanticipated. In order to fund the necessary purchase, funds will have to be transferred from the General Fund Contingency. Purchase of the 46,080 pounds of plastic bags will cover operations until October, 1988. It will be necessary to request bids for another order to cover the December handout in late August. The vendor has indicated that, if delivery of the order is not taken prior to June 30, 1988, the price will increase to $.75 per pound, an additional increase of 7~. This request needs to be taken before City Council on June 6 in order to meet this deadline. xc: John Joerns, Assistant City Manager