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Home My WebLink About2008/02/12 Item 5 CITY COUNCIL AGENDA STATEMENT ~~~ CITY OF ,,<< ""'~ CHUlA VISTA FEBRUARY 12,2008 Item.5 SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF OFFICE SUPPLIES FROM CORPORATE EXPRESS IN ACCORDANCE WITH TERMS AND CONDITIONS OF COUNTY OF SAN DIEGO CONTRACT #519042 FOR A ONE (1) YEAR PERIOD EFFECTNE JULY 1, 2007 THROUGH JUNE 30, 2008, WITH FOUR (4) ONE YEAR OPTIONS TO EXTEND THROUGH DECE1'fW::R 31, 2012. DIRECTOR OF FIN CE/TREASURER c.f )~ CITY MANAGER 4/5THS VOTE: YES D NO ~ ITEM TITLE: SUMMARY The County of San Diego has awarded a contract to Corporate Express for office supplies. The City of Chu1a Vista was named as a primary agency in the bid and therefore qualifies for all rights and privileges afforded the County. Adoption of the resolution authorizes the City to purchase office supplies from Corporate Express under the same terms as the County of San Diego, which on average has resulted in a 61.5% discount off list price for office supplies. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 (b) (2) of the State CEQA Guidelines; therefore, pursuant to Section 15060 (b )(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council adopt the resolution. 5-1 FEBRUARY 12,2008 Item 5 Page 2 of2 BOARDS/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION Chula Vista Municipal Code Section 2.56.140 (Attachment A) authorizes the purchasing agent to participate in cooperative bids with other government agencies for the purchase of materials of common usage provided that such items are purchased through a competitive process that the purchasing agent determines to be consistent with good purchasing practices. The City has purchased office supplies from Corporate Express for the past ten (10) years through cooperative contracts with the County of San Diego. This agreement has worked well and has eliminated the necessity for Chula Vista to bid out office supplies as a standalone requirement. On average, the City has received a 61.5 % discount off list price for office supplies and roughly 97% of orders placed were guaranteed filled complete and delivered within 24- hours directly to the ordering department. This just in time arrangement has enabled the City to eliminate receiving the orders in Central Receiving and then having to deliver the product to the ordering department. The County of San Diego went out to bid for a new office supply contract and has awarded an agreement to Corporate Express. The estimated armual purchases by the County and other participating public agencies are $20 million. The leverage provided by an agreement of this magnitude has resulted in economy of scale discounts extremely favorable to contract participants. The County of San Diego awarded the contract to Corporate Express effective July 1, 2007. The City of Chula Vista has received contract pricing on all 2007-2008 fiscal year purchase orders. This resolution formalizes the Council's approval to participate in the office supply cooperative bid. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. FISCAL IMPACT There is no direct fiscal impact from approving this resolution in that funds expended will have been approved through the normal budget or appropriation process. ATTACHMENTS City of Chula Vista Municipal Code 2.56.140 Prepared by: Jay Harris, Acting Sr. Procurement Specialist, Finance Department, I Purchasing Division and Suzanne Brooks, Acting Purchasing Agent. 5-2 Chula Vista Municipal Code or trade-in shan be made to the highest responsive and responsible bidder, in accordance with the competitive bid procedures established by the pur- chasing agent. C. Donations. Supplies, materials, and equip- ment, when the estimated value involved is $10,000 or less, may be donated, or sold for less than fair market value, to local civic or social orga- nizations, where it is deemed by the city manager that such a disposition of property would best serve the city's public interests. Such donations or dis- counted sale ofitems valued in excess of $10,000 must be approved by resolution of the city council. D. Worthless Property. In the case of scrap or survey items having no estimated or appraised value and which have not been desired by any civic or social organization, the purchasing agent may dispose of such items in any manner he or she deems appropriate, keeping fun records of such dis- position. E. Special Procedures for Disposition of Li- brary Materials. The city librarian shall submit to the purchasing agent reports showing used, dam- aged, or unneeded library materials and indicating disposition thereof. The librarian may, at his or her discretion, donate such materials to the Friends of the Chula Vista Public Library for such book sales as they may desire, or he or she may offer such ma- terials to any bona fide charitable or nonprofit in- stitutional organizations serving primarily the interests of the city. If at any time the librarian chooses to dispose of such materials other than as provided herein, he or she shan follow the general procedures set forth hereinabove. (Ord. 2899 ~ 1, 2003; Ord. 2766 ~ 1, 1998). 2.56.130 Sale of real property - Procedure. The purchasing agent, with the recommendation of the city manager and approval of the city coun- cil, shall have the power to sen for fair value any real property owned by the city which has been declared by the city council to have no present or future use for public purposes. Notice of such sale shall be published at least once on the city's Inter- net web site, or in a newspaper of general circula- tion in the city, and any other method of advertising that is determined by the purchasing agent to be in the city's best interest. Real property may be sold for less than fair market value upon a determination by the city council that such sale will be in the public interest. (Ord. 2899 ~ 1,2003; Ord. 2766 ~ 1, 1998). "ATTACHMENT A" 2.56.150 a56.140) Cooperative purchasing agreements. No provision of this chapter shall be interpreted or construed to prohibit or prevent the city from purchasing supplies, equipment, and services by contracts, arrangements, and agreements for coop- erative purchasing programs with the state of Cali- fornia, the county of San Diego, the city of San Diego, or any other public agency, school district, or water authority within the United States; pro- vided, that such items are purchased through a competitive process that the purchasing agent determines to be consistent with good purchasing practices. If the contract, agreement, or arrange- ment exceeds $100,000, then city council approval is required. (Ord. 2899 ~ 1, 2003; Ord. 2766 ~ 1, 1998). 2.56.150 Reports to city councl1. The director of finance shall provide the city council with reports regarding city purchasing practices in such form and at such intervals as the city council may direct. (Ord. 2899 ~ 1,2003; Ord. 2766 ~ 1, 1998). 2-89 (Revised 8104) . --,----' _.._-----~._,.. ----. . ~.,------_._----"--- 5-3 RESOLUTION NO. 2008- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE PURCHASE OF OFFICE SUPPLIES FROM CORPORATE EXPRESS IN ACCORDANCE WITH TERMS AND CONDITIONS OF COUNTY OF SAN DIEGO CONTRACT #519042 FOR A ONE (1) YEAR PERIOD EFFECTIVE JULY 1, 2007, THROUGH JUNE 30, 2008, WITH FOUR (4), ONE (1) YEAR OPTIONS TO EXTEND THROUGH DECEMBER 31, 2012 WHEREAS, Chula Vista Municipal Code section 2.56.140 authorizes the purchasing agent to participate in cooperative bids with other government agencies for the purchase of material of cornmon usage; and WHEREAS, the County of San Diego went out to bid a new office supply contract and has awarded an agreement to Corporate Express; and WHEREAS, the City of Chula Vista was named as a primary agency in the bid and therefore qualifies for all rights and privileges afforded the County; and WHEREAS, the City ofChula Vista had a representative from the Purchasing Division as part of the selection team to assist in the selection of the successful vendor; and WHEREAS, the Purchasing Agent has determined that the selection process was consistent with good purchasing practices; and WHEREAS, consequently, the City of Chula Vista has purchased office supplies from Corporate Express for the past ten years through cooperative contracts with the County of San Diego; and WHEREAS, the estimated annual purchases by the County and other participating public agencies are $20 million; and WHEREAS, the leverage provided by an agreement of this magnitude has resulted in economies of scale discounts extremely favorable to contract participants; and WHEREAS, on average, the City has received a 61.5 percent discount oflist prices for office supplies and roughly 97 percent of orders placed were guaranteed filled complete and delivered within 24 hours directly to the ordering department; and WHEREAS, this just-in-time arrangement has enabled the City to eliminate receiving the orders in Central Receiving and then having to deliver the product to the ordering department. J:\Atlamey\RESO\PURCHASE AGMT\Corporate Express_02.12-08.doc 5-4 Resolution No. 2008- Page 2 NOW, THEREFORE, BE IT RESOLVED the City Council of the City ofChula Vista does hereby authorize the purchase' of office supplies from Corporate Express in accordance with terms and conditions of County of San Diego Contract #519042 for a one (1) year period effective July 1, 2007, through June 20, 2008, with four (4), one (1) year options to extend through December 31, 2012. Presented by: Approved as to form by: Maria Kachadoorian Director of Finance J:\AlIomey\RESQlPURCHASE AGM1\Corporate Express_02-12-08.doc 5-5