HomeMy WebLinkAboutAgenda Report - January 20, 1999 E-04CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Contract Award for Printed Envelopes, 1999 Requirements ($11,892.21)
MEETING DATE: January 20, 1999
PREPARED BY: Finance Director
RECOMMENDED ACTION: That the City Council adopt the attached resolution awarding a contract to
produce and deliver printed envelopes, as required by the City during
calendar year 1999, to the 1997-98 contractor, Envelope Products
Company of Vallejo, in the amount of $11,892.21.
BACKGROUND INFORMATION: In March, 1997, the City Council awarded the 1997 envelope contract to
Envelope Products Company (EPC), the low bidder at $16,098.39. The
award has been an excellent one for the City, as Envelope Products
produces a high-quality product while maintaining an excellent service
and reliability rating.
During 1997, the State of California awarded Envelope Products Company a contract under the California Multiple
Awards Schedule (CMAS), and several of the City's envelopes qualified for CMAS pricing. When comparing the
CMAS prices to the City's 1997 contract pricing with EPC, staff found that the City could realize savings on four of
the City's twelve envelopes if purchased under CMAS. In 1998, staff asked EPC for the lowest prices of both
contracts, and the supplier agreed. On January 21, 1998, the City Council adopted Resolution 98-12 authorizing
purchase of four sizes of envelopes from EPC under CMAS, and an extension of the 1997 agreement with EPC for
the other eight envelopes. This action reduced the 1998 total cost of envelopes to the City by about 5% compared
to 1997. Envelope Products has now agreed to extend 1997-98 pricing for eight of the City's envelopes through
calendar year 1999. CMAS pricing will apply for three others. The cost of the #10 Window (City Letterhead) will
increase from $19.29 to $19.91 per thousand, as its volume no longer qualifies for CMAS pricing. This increase
will add $6.20 to the total annual cost for this envelope.
Lodi City Code Section 3.20.070 provides that bidding may be dispensed with when the City Council determines
that the method of purchase would be in the best interest of the City. Considering the continued low cost (still
4.55% below 1997), savings realized by dispensing with the bidding process, and the supplier's track recons for the
past two years, it is staff's recommendation that the City Council approve this award.
Envelopes will be ordered and paid for periodically during the year as needed by various City departments.
Exhibits A and B (attached) show the projected 1999 volumes, delivery schedule, and price comparisons.
FUNDING: Each department budgets annually for printing requirements,
and funding for the purchase of envelopes is included in those budgeted
amounts.
Vicky McAthie, Finance Director
Prepared by Joel Harris, Purchasing Officer
APPROVED: L —Y,
Dixon lynn – City anager
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EXHIBIT B
PRINTED ENVELOPES
VOLUME / PRICE COMPARISONS
1999 vs. 1997
*CMAS Prices
Explanation of volume reductions:
#9 Regular Utility Payment and #10 Window Utility Bill: Average monthly usage
is about 23,000 each. With deliveries of 75,000 each every 3 months,
over a year's time we will accumulate about a month's supply, and can
then defer a delivery by about a month. 1999 deferral will be in March,
resulting in only three deliveries of 75,000 each this year (see Exhibit A).
#10 Regular City Letterhead: Reflects apparent increased usage of e-mail and
FAX transmittals.
1997
1999
Envelope Description
Volume
Price/M
Volume
Price/M
Spec. Window -Bus. Lic. Appl.
5,000
$59.75
5,000
$59.75
#9 Regular, Utility Payment
300,000
$18.80
225,000
$17.08"
#9 Regular, Delinq Utility Payment
25,000
$21.53
25,000
$21.53
#10 Regular, City Letterhead
45,000
$17.55
10,000
$17.55
#10 Regular, Police Letterhead
10,000
$17.55
10,000
$17.55
#10 Regular, Parks & Rec Letterh'd
10,000
$17.55
10,000
$17.55
#10 Window, Utility Bill
300,000
$20.05
225,000
$18.99"
#10 Window, Delinquent Utility Bill
25,000
$23.22
25,000
$23.22
#10 Window, Accounts Payable
10,000 (#9)
$19.91
20,000
$18.99*
#10 Window, City Letterhead
10,000
$22.95
10,000
$19.91
#10 Window, Police Letterhead
5,000
$19.91
10,000
$19.91
#10 Window, Library
10,000
$19.91
10,000
$19.91
Total Annual Volumes
755,000
585,000
(-22.5%)
Total Cost (before tax)
$14,940.50
$11,036.85
(-26.1%)
Average Unit Cost (before tax)
$.0198
$.0189
(-4.55%)
Total Annual Cast
$16,098.39
$11,892.21
(-26.1%)
*CMAS Prices
Explanation of volume reductions:
#9 Regular Utility Payment and #10 Window Utility Bill: Average monthly usage
is about 23,000 each. With deliveries of 75,000 each every 3 months,
over a year's time we will accumulate about a month's supply, and can
then defer a delivery by about a month. 1999 deferral will be in March,
resulting in only three deliveries of 75,000 each this year (see Exhibit A).
#10 Regular City Letterhead: Reflects apparent increased usage of e-mail and
FAX transmittals.
RESOLUTION NO. 99-02
A RESOLUTION OF THE LODI CITY COUNCIL
AWARDING THE BID FOR PRINTED ENVELOPES
WHEREAS, Lodi Municipal Code, §3.20.070, authorizes dispensing with bids for
purchases of supplies, services or equipment when it is in the best interests of the City to
do so; and
WHEREAS, in March 1997, the City Council awarded the 1997 envelope contract
to Envelope Products Company, which is an excellent company that produces a high-
quality product, and their services and reliability ratings have been outstanding; and
WHEREAS, during 1997, the State of California has awarded Envelope Products
Company a contract under the California Multiple Awards Schedule (CMAS) through the
Department of General Services, and several of the City's envelopes now qualify for the
CMAS pricing; and
WHEREAS, the City of Lodi currently orders twelve different envelopes and
Envelope Products Company has agreed to provide CMAS pricing on the four envelopes
where price reduction was available, and an extension through 1998 the 1997 contract
prices for three envelopes not covered by CMAS, and five envelopes on which pricing
favored the City, thus reducing the 1998 average cost of envelopes by approximately five
percent (5%) compared to 1997; and
WHEREAS, Envelope Products has now agreed to extend 1997-98 pricing for
eight of the City's envelopes through calendar year 1999, and CMAS pricing will apply for
three other envelopes, with the cost of the twelfth envelope increasing slightly, adding
$6.20 to the total annual cost for this envelope; and
WHEREAS, staff recommends awarding the contract to produce and deliver
printed envelopes, as required by the City during calendar year 1999 to Envelope
Products Company of Vallejo, California.
NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that the award of
the bid for Printed Envelopes for the 1999 calendar year, be and is hereby awarded to
Envelope Products Company of Vallejo, California in the amount of $11,892.21.
Dated: January 20, 1999
I hereby certify that Resolution No. 99-02 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held January 20, 1999, by the following
vote:
AYES: COUNCIL MEMBERS — Hitchcock, Mann, Nakanishi, Pennino and
Land (Mayor)
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
t ICE �h E1
ALICE M. R MCHE
City Clerk