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Home My WebLink AboutAGENDA REPORT 1995 0315 CC REG ITEM 08D //q4/4/ ITEM V• 61), CITY OF MOORPARK CITY COUNCIL REPORT MOORPARK. CALIFORNIA City Council Mooring TO: The Honorable City Council of ACTION: FROM: Donald P. Reynolds Jr., Administrative Services Manager BY . . DA February 15, 1995 - SUBJECT: Consider Agreement for Office Supplies The following report will briefly review the City's history in purchasing office supplies, describe the recently completed bid process, and recommend a contractor to provide these services through December 31, 1995. Background Between July 1983, and March 1994, the City used an informal office supply procurement process. A slow incremental growth from the period when the office supplies supported a few employees to the current support of 35 employees, resulted in a need to have better organization and cost controls. During this time, the costs rose to close to $15,000 per year. As the number of employees increased, the need to formalize the office supply procurement process also increased. Purchasing recycled office products was also lacking a formal monitoring system in terms of cost and availability. The process of buying office products was moved from the Finance Department to the Administrative Services Manager in March, 1994. A new vendor was acquired temporarily to consolidate orders and attempt to save funds, while staff established use controls and measurement tools. The new vendor is significantly less expensive than the past vendors, (approximately $5,000 per year), has provided use analysis reports on a monthly basis, and next day deliveries reducing the need for on site inventory. A tracking system identifying cost centers was also established. For almost twelve months, staff has kept a journal of each department's expenses(even though only a few departments have this line item in their budget). The cost accounting system operates parallel to the general overhead distributions, and provides a record for budget purposes which may be used during the 1995/96 budget process. Eventually, the City will abandon the assumption of percentage distributions and be able to adopt an accurate system of tracking costs for each department. This trial was intended to last six months, at which time the City would exercise a formal bid process and enter into a contract. Contract prices are assumed to be more beneficial then the current rates and are typically secured for the term of the contact. 00062T Bid Process Staff used the formal bid process (a Request for Proposals, or RFP) for office supplies because the amount of the contract will be close to the minimum limit established in the Municipal Code of $15,000. The bid process is based in part on the usage reports from the current vendor which provides a nine month inventory and cost of items purchased. Thirty two percent of the items listed are recycled goods and account for forty percent of the total cost. The RFP was distributed to five different vendors and the Oxnard Minority Business Center. One local vendor expressed an interest in the bid package and staff responded to their request for assistance to complete the RFP. Bid Results Four bids were received by the closing date and time of 5:00 P.M., January 31, 1995. One bid was deemed to be non-responsive, presenting prices as "To Be Announced." A analysis of the remaining three bids eliminated two more candidates based on inaccuracies in the submittal. A few minor mistakes were acceptable (less than five percent), but two of the three finalists had entered pricing inaccurately on more than ten percent of the items. The percentage of errors was confirmed after discussing the bids with all three of the finalists. Unfortunately, the local vendor submitted their bid after the closing date and time and could not be considered. After all of the post bid meetings were completed, staffs selection favors the most responsive bidder: Boise Cascade. Recycled Products Analysis The attachment is a cost break-down of a sample of the recycled goods the City uses, illustrating the cost differences between recycled and virgin items. One can see from this comparison that there is a great variety of differences between virgin products and recycled products, and occasionally, recycled is less expensive. Staff is now in a much better position to monitor the activity of the recycled product market now than it has been. Bid Award Staff is requesting a nine month contract so that reconsideration can be made each year at the same time. It is also beneficial to enter into a short term contract at this time, because the cost of paper supplies and the cost of recycled goods is fluctuating weekly. Hopefully, within nine months, these costs will stabilize and the City can take advantage of better prices. As proposed, the term of the contract will cross fiscal years in its third month(out of nine). In the event that sufficient funds are not appropriated for fiscal year 1995/96, the City will have an "out" or be contingent upon funding availability, to allow the City to terminate the agreement in mid- term. 00663- No specific appropriations are necessary for this agreement because the Council has already budgeted funds for office supplies for fiscal year 1994/95. Of the $21,350 budgeted, $14,000 was specifically for these commodities. As of January 5, 1995, $6,156 was spent on this item, (44 percent), leaving $7,844 for the balance of the fiscal year. Recommendation That the City Council authorize the City Manager to execute an agreement with Boise Cascade for the provision of office supplies, not to exceed $10,000, for the remainder of fiscal year 1994/95 and contingent upon the availability of sufficient funds to complete the contract in Fiscal Year 1995/96. Attachment-Recycled Goods Cost Analysis 00064 r CITY OF MOORPARK * OFFICE SUPPLIES BID * BID SUBMISSION FORM DATE REVISED: DECEMBER 27, 1994 Overall, 32% of the items specified are recylced; 40% of the the total cost was for recycled products. The following price comparisons show a sample of items from the bids recently received. These are only the items which are seen as being equal substitutions. BID RESULTS FEBRUARY 14, 1995 Virgin Price Percent PRODUCT NO. ITEM DESCRIPTION MANUFACTURE UNIT QTY PER YR HO SUB Recycled Equivelent Difference Difference A5-ES-1648 * WHITE MULTI-PURPOSE LABELS 1" X 3" LABAVERY BOX/250 20 # 15.20 11.20 4.00 35.71% A5-RFF3-DBE * DARK BLUE LABELS (FILE FOLDERS) AVERY BOX/248 8 # 11.68 4.48 7.20 160.71% A5-RFF3-DRD * DARK RED LABELS (FILE FOLDERS) AVERY BOX/248 8 # 11.68 4.48 7.20 160.71% L2-UT11-10-BK * 1" BLACK BINDER K&M EACH 16 26.56 30.08 3.52 11.70% L2-UT11-10L-BK* 1" BLACK BINDER W/LABEL HOLDER K&M EACH 16 30.24 32.00 1.76 5.50% L2-UT11-20-BK * 2" BLACK BINDER K&M EACH 16 46.40 48.00 1.60 3.33% L2-UT11-20L-BK* 2" BLACK BINDER W/LABEL HOLDER K&M EACH 16 49.76 48.00 -1.76 -3.67% P1-054901 * LETTER 8.5 X11, XEROGRAPHIC PAPER GENERIC RM/500 SHTS 240 720.00 664.80 55.20 8.30% P1-054901-P * 3 HOLE/LETTER 8.5X11, XEROGRAPHIC PAPEGENERIC RM/500 SHTS 60 190.80 177.00 13.80 7.80% P1-054904 * LEGAL 8.5 X14, XEROGRAPHIC PAPER GENERIC RM/500 SHTS 30 114.60 105.90 8.70 8.22% P1-054907 * LEDGER 11X17, BOND PAPER GENERIC RM/500 SHTS 60 360.00 346.20 13.80 3.99% P1-MP-2201-AA * MP BRITES, AQUA GENERIC RM/500 SHTS 8 33.92 25.28 8.64 34.18% P1-MP-2201-ED * MP BRITES, EMERALD GENERIC RM/500 SHTS 8 33.92 25.28 8.64 34.18% P1-MP-2201-HP * MP BRITES, HOT PINK GENERIC RM/500 SHTS 8 33.92 25.28 8.64 34.18% P1-MP-2201-LE * MP BRITES, LIME GENERIC RM/500 SHTS 8 33.92 25.28 8.64 34.18% P1-MP-2201-LN * MP BRITES, LEMON GENERIC RM/500 SHTS 8 33.92 25.28 8.64 34.18% P1-MP-2201-RY * MP BRITES, RUBY GENERIC RM/500 SHTS 8 33.92 25.28 8.64 34.18% P1-MP-2201-TE * MP BRITES, TANGERINE GENERIC RM/500 SHTS 8 33.92 25.28 8.64 34.18% TOTALS 1814.36 1649.10 175.50 AVERAGES 9.75 35.64% O O CP