For City Council Meeting [September 10, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Perry Brents, Director of Community Services
Title
Request City Council to Approve Annual Purchase Orders for Fiscal Year (FY) 2019-2020 with the Option to Extend the Purchase Orders on a Year by Year basis for the next Three Years, for Geographics at $20,564, Southwest Offset Printing at $55,028, and for the United States Postal Service at $22,559, for a total of $98,151.
(ACTION)
Body
BACKGROUND
On January 9, 2018, City Council authorized the Release of Request for Proposals No. 18-056 for the design and printing of the Rialto Progress Community Magazine. After review of all proposals (Advantage Business Forms, Geographics, Little Bear Productions, The PM Group, Pat Davis Design Group, The Sauce, and Southwest Offset Printing Co.), vendor interviews, comparative costs, discussion and careful consideration, vendor recommendations the lowest bidders, Geographics and Southwest Offset Printing were approved by City Council on June 6, 2018 for design, printing and mailing of the Rialto Progress Community Magazine for a cost of $112,000.
ANALYSIS/DISCUSSION
Geographics, Southwest Offset Printing and the U.S. Postal service are very valuable partners in providing the Rialto Progress Community Magazine to the City’s residents and businesses. Services provided by each of the three vendors has been Satisfactory and Professional. Cost centers to pay for the magazine are identified in the fiscal year budget in General Fund Advertising Account No. 010-500-0001-2065 ($105,000) and Community Services Account No. 640-500-8150-2065 ($30,000). The Rialto Progress Community Magazine is being designed, printed and distributed three (3) times a year: winter, summer, and fall. Each publication averages 80 pages; all pages are full color.
City Staff continues to develop new ideas to enhance features of the Rialto Progress Community Magazine. This effort has helped to ensure that the magazine continues to be a valued resource for the City and well received by the Rialto Community. There is a noticeable difference in the magazines quality, associated costs for design, printing and distribution. In 2018, the approved budgeted costs of the magazine were $112,000. The City currently spending $98,151 this fiscal year. These costs may increase seasonally based on the need for more graphic designs and with the winter addition of the magazine including the cost of printing and postage to account for the City’s annual Calendar of Events.
Southwest Offset Printing was chosen for printing/prep for USPS mail distribution at an annual cost of $55,028 its scope of work includes the costs for printing, production and saturation distribution, added costs include additional draft preparation and review:
Winter, Spring and Fall Edition: Annual Cost: $45,061.00
$15,020.33 per issue (includes tax)
Annual Calendar: Annual Cost: $ 9,967.00
Total cost for Southwest Offset Printing: $55,028.00
Geographics was chosen to provide professional design services which includes the Coordination and press check, a full layout of guide and three rounds of client revisions using online proofing system (Proof HQ), Prepress/Final Art following at an annual cost of $20,564:
• Winter Edition-64 pages
• Summer and Fall Editions-80 pages each edition
• Annual Calendar-16 pages
The magazine is mailed City-wide using the U.S. postal service. The U.S. Postal service receives approximately 29,000 magazines directly from the printer to distribute city-wide at an annual cost of $22,559.
The print, and design services for the Rialto Progress Community Magazine have been efficient and professional at facilitating the production and distribution of three Issues of the Rialto Progress Community Magazine. Associated costs for the Progress Magazine have been approved with the fiscal year 2019/2020 budget. From time to time there are cost fluctuations. Cost increases on each Purchase Order reflect increased needs for graphic design, and other fluctuations, such as added pages and additional design work and additional drafts to be reviewed. City staff offset costs by selling advertising in the magazine. Whenever advertising sections are added to any issue, there are additional charges for design work and printing.
Staff is recommending extending Purchase Orders with Geographics, Southwest Offset Printing, and the United States Postal Services for the next 3 Fiscal Years on a Year by Year basis for the next Three Years following FY2019-2020, because
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA). A "Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Pursuant to Section 15378 (b)(5) a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report
FINANCIAL IMPACT
Funds are available in General Fund Advertising Account No. 010-500-0001-2065 in the amount of $105,000 and in Community Services Fund Account No. 640-500-8150-2065 in the amount $30,000 in fiscal year 2019/2020 which provides a small contingency to proactively mitigate potential fluctuations, such as added pages and additional design work. When the advertising sections are added any issue, there will be additional charges for design work and printing.
Operating Budget Impact
The cost to print the Progress Magazine for 2019-2020 has been identified in the Annual Budget.
Capital Improvement Budget Impact
This is no impact on the Capital Improvement Budget
Licensing
The vendors are current on City licenses. Where applicable, the listed vendors shall submit a business license application and pay any additional Business License tax at current rates, as well as Administration and State fees.
RECOMMENDATION
Staff recommends that the City Council Approve Annual Purchase Orders for Fiscal Year (FY) 2019-2020 with the Option to Extend the Purchase Orders on a Year by Year basis for the next Three Years, for Geographics at $20,564, Southwest Offset Printing at $55,028, and for the United States Postal Service at $22,559, for a total of $98,151 annually.