HomeMy WebLinkAboutAgenda Report - March 1, 1995 (63)� OF
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CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Authorization to Negotiate Purchase of Copy Paper
MEETING DATE: March 1, 1995
PREPARED BY: Finance Director
RECOMMENDED ACTION: That the City Council authorize the Finance Director/Purchasing Officer
to dispense with formal bidding, and negotiate the purchase of copy
paper (xerographic or dual-purpose bond) for use by City Departments,
for the six-month period ending August 31, 1995.
BACKGROUNDINFORMATION: During the past six months, prices of paper products have increased by
about 50%, due to heavy international buying and limitations in mill
capacities. Further, an additional 10% increase in prices is forecast for
the end of March.
In the past, the Purchasing Department has informally bid paper requirements in quantities of 200 cases. This
amount is the minimum mill order (the least expensive method of purchase), and also the maximum number of
cases that can be properly stored in the City's warehouse. Now, with the increase in prices, the cost of a 200 -case
order will be in the $6,000 range, placing the requirement into formal bid territory.
Because of the volatility of prices, staff believes it would currently be in the City's interest to negotiate the best
deals and act swiftly to lock in prices, rather than to proceed with the lengthy formal bid process while prices
increase. Under the Lodi Municipal Code section 3.20.070, the City Council may authorize the dispensation of
the bid process when the alternate method of purchase would be in the best interest of the City.
It is stars further belief that the six-month period during which Purchasing could negotiate prices would allow
the market to stabilize, and that the method of purchasing copy paper could be re-evaluated at that time.
FUNDING: Costs of supplies are included in each department's photocopying
budget.
H. D. Aynn, Finance Director
Prepared by Joel Harris, Purchasing Officer
APPROVED: 4M
THOMAS A. PETERSON recycled paper
City Manager
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