TITLE
Recommendation to adopt resolution authorizing City Manager to execute a contract with Office Depot, Inc., of Signal Hill, CA, for furnishing and delivering custodial supplies on the same terms and conditions afforded to Region 4 Education Service Center, of Texas, through The Cooperative Purchasing Network, in an annual amount of $1,700,000 with the option to add expenditures up to 10 percent (or $170,000), for a total annual amount not to exceed $1,870,000, for a period of two years, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into an annual contract with Office Depot, Inc., for furnishing and delivering custodial supplies to support the ongoing custodial maintenance needs of various City facilities. The amount represents the combined annual requirements as estimated by various City department users.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment and labor with other governmental agencies by purchasing under their contracts on a voluntary and selective basis when authorized by a Resolution of the City Council.
Office Depot, Inc., offers a wide variety of custodial paper products and janitorial cleaning products that meet industry recognized certified green standards from independent third-party certifications such as EcoLogo and Green Seal. The City uses dilution stations (located at various City facilities) to allow the purchase of janitorial cleaning chemicals in bulk, which are the diluted for expanded use. Office Depot, Inc., will provide all of the dilution station equipment at no cost to the City for the life of the contract.
Office Depot, Inc., provides online ordering with individual roles assigned for users and approvers for greater financial controls. Also, downloadable and exportable usage reports and other reporting features are available to manage the purchase of these items and to provide historical information on past purchases.
The Purchasing Division investigated procurement options for custodial supplies and learned that several agencies/cooperatives had completed a competitive procurement process. The City reviewed five cooperative agreement options for custodial supplies. Although all of the cooperative agreements were good prospects, Office Depot, Inc. (not an MBE, WBE, SBE or Local), was chosen for their competitive pricing, service levels, breadth of product offering and economic impact. Additionally, the existing tax sharing agreement in place allows the City to maximize the capture of the sales tax revenue expended via this contract.
This matter was reviewed Deputy City Attorney Amy R. Webber on October 27, 2015 and by Budget Management Officer Victoria Bell on October 29, 2015.
TIMING CONSIDERATIONS
City Council action to adopt the attached Resolution and award a contract concurrently is requested on November 17, 2015, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total annual contract amount will not to exceed $1,870,000, and is budgeted in various funds and departments. The award of this contract will provide continued support to our local economy by assisting in the preservation of employment for 1,448 employees residing in Long Beach.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO PURCHASE CUSTODIAL SUPPLIES FROM OFFICE DEPOT, INC. ON THE SAME TERMS AND CONDITIONS AFFORDED TO REGION 4 EDUCATION SERVICE CENTER THROUGH THE PURCHASING COOPERATIVE NETWORK
Respectfully Submitted,
JOHN GROSS
DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER