HomeMy WebLinkAboutIR 7269 INFORMAL REPORT TO CIVP**COUNCIL MEMBERS No. 7269
UOXIITIR'd
aifoRr To the Mayor and Members of the City Council April 5, 1988
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Subject: CITY OF FORT WORTH GARBAGE RAG PROGRAM
BACKGROUND
In 1971 the City of Fort Worth changed its waste collection from cans
and alley service to disposable plastic bags and curbside service. In
order to alleviate concerns expressed by many about requiring the use
of plastic bags, the City pledged to citizens that high quality, low
cost bags would be made available. The decision was made to contract
for bags and sell them at the City fire stations and the Municipal
Building.
Currently, the City sells garbage bags at twenty-six fire stations,
seven branch libraries, six multi-purpose centers, and the Municipal
Building. Rolls of fifty bags are sold for $4.50 per roll, including
tax. Since 1981/82, when the sale of plastic garbage bags totaled
300,000 rolls, sales have declined as follows:
YEAR # ROLLS
82/83 289,383
83/84 206,442
84/85 166,877
85/86 150,943
86/87 135,953
87/88 (est.) 111 ,000
In 1986/87 revenues from bag sales were approximately $40,000 greater
than the direct costs to operate the program. The low bid received on
March 17, 1988 for a new bag contract is for $4.37 per roll, a 67%
increase over the current contract price. The total of the increased
cost of the bags ($4.37), the sales tax ($.30), and the direct costs
for storage, delivery, armored car service, etc.. ($.72) will exceed
the current sales price.
PROPOSED OPTIONS
1. Increase the price of bags by $1.00, making the new sales price
$5.50, and continue to market them as is done currently.
Bags of comparable quality and price are now available in virtually
every corner convenience store and supermarket. These stores are able
to make change for purchasers, whereas in the fire stations,
libraries, and multi-purpose centers, exact change or checks are
required. Direct costs for storage, delivery, handling, armored car
service, and repair of safes are high relative to the number of rolls
of bags sold and expected to increase. Departments participating in
bag sales are being required to do more with less relative to their
primary responsibilities and would rather not sell bags, which is
considered a secondary responsibility. In order to enhance
accountability, a new receipting procedure needs to be implemented
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
7269
INFORMAL REPORT TO Cir'COUNCIL MEMBERS No.
- pagA of
,j6p
of Goer To the Mayor and Members of the City Council April 5, 1988
Subject: CITY OF FORT WORTH GARBAGE BAG PROGRAM
which will increase the direct costs associated with bag sales as well
as the amount of time required at the point of sale to sell a roll of
bags.
For the aforementioned reasons, this option is not recommended.
2. Increase the price of bags by $.50, making the new sales price
$5.00, and reduce the number of sales locations to two or three.
Reducing the number of sales locations would reduce the direct costs
of the bag program. It would enable departments currently
participating in bag sales to utilize personnel involved in bag sales
for functions more related to the work of the particular departments.
Although this option will make it less convenient for those citizens
who purchase their garbage bags from the City, it will still enable
them to do so.
3. Discontinue selling garbage bags. Collect current stocks of bags
from outlying locations and continue to sell bags at the Municipal
Building until they are depleted. Do not execute a new contract.
Because bag sales have been steadily decreasing and a necessary price
increase will probably result in further reductions, it would be
fiscally prudent to discontinue bag sales. The availability of
relatively high quality, low cost bags through most convenient stores
and supermarkets makes this option possible. It is not believed that
the implementation of this option will significantly impact garbage
collection in Fort Worth.
It is the City staff's recommendation that the first option not be
implemented and that either the second or the third option at the
direction of the City Council be implemented. Additional information
will be provided upon request.
e�
ouglas Harman
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS