HomeMy WebLinkAbout2023-10-17 Finance Committee Agenda PacketFINANCE COMMITTEE
Regular Meeting
Tuesday, October 17, 2023
Community Meeting Room & Hybrid
5:30 PM
Finance Committee meetings will be held as “hybrid” meetings with the option to attend by
teleconference/video conference or in person. To maximize public safety while still maintaining
transparency and public access, members of the public can choose to participate from home or
attend in person. Information on how the public may observe and participate in the meeting is
located at the end of the agenda. Masks are strongly encouraged if attending in person. The
m e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o n
YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media
Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/99227307235)
Meeting ID: 992 2730 7235 Phone: 1(669)900‐6833
PUBLIC COMMENTS
Public comments will be accepted both in person and via Zoom for up to three minutes or an
amount of time determined by the Chair. All requests to speak will be taken until 5 minutes
after the staff’s presentation. Written public comments can be submitted in advance to
city.council@CityofPaloAlto.org and will be provided to the Council and available for inspection
on the City’s website. Please clearly indicate which agenda item you are referencing in your
subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,
the Clerk will have them shared at public comment for the specified item. To uphold strong
cybersecurity management practices, USB’s or other physical electronic storage devices are not
accepted.
CALL TO ORDER
PUBLIC COMMENT
Members of the public may speak to any item NOT on the agenda.
ACTION ITEMS
1.Printing Services Review of Alternative Service Delivery (Finance Committee Referral) –
CEQA Status ‐ not a project.
FUTURE MEETINGS AND AGENDAS
Members of the public may not speak to the item(s)
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 992‐2730‐7235 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
1 Regular Meeting October 17, 2023
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org.
FINANCE COMMITTEERegular MeetingTuesday, October 17, 2023Community Meeting Room & Hybrid5:30 PMFinance Committee meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Them e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/99227307235)Meeting ID: 992 2730 7235 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,
the Clerk will have them shared at public comment for the specified item. To uphold strong
cybersecurity management practices, USB’s or other physical electronic storage devices are not
accepted.
CALL TO ORDER
PUBLIC COMMENT
Members of the public may speak to any item NOT on the agenda.
ACTION ITEMS
1.Printing Services Review of Alternative Service Delivery (Finance Committee Referral) –
CEQA Status ‐ not a project.
FUTURE MEETINGS AND AGENDAS
Members of the public may not speak to the item(s)
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 992‐2730‐7235 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
2 Regular Meeting October 17, 2023
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org.
FINANCE COMMITTEERegular MeetingTuesday, October 17, 2023Community Meeting Room & Hybrid5:30 PMFinance Committee meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Them e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/99227307235)Meeting ID: 992 2730 7235 Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.CALL TO ORDERPUBLIC COMMENT Members of the public may speak to any item NOT on the agenda.ACTION ITEMS1.Printing Services Review of Alternative Service Delivery (Finance Committee Referral) –CEQA Status ‐ not a project.FUTURE MEETINGS AND AGENDAS
Members of the public may not speak to the item(s)
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments using a computer or smart phone will be accepted through
the teleconference meeting. To address the Council, click on the link below to access a
Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments using a phone use the telephone number listed below. When
you wish to speak on an agenda item hit *9 on your phone so we know that you wish to
speak. You will be asked to provide your first and last name before addressing the
Council. You will be advised how long you have to speak. When called please limit your
remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 992‐2730‐7235 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
3 Regular Meeting October 17, 2023
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org.
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Finance Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Administrative Services
Meeting Date: October 17, 2023
Report #:2307-1793
TITLE
Printing Services Review of Alternative Service Delivery (Finance Committee Referral) – CEQA
Status - not a project.
RECOMMENDATION
Staff recommends the Finance Committee recommend to the City Council to direct staff to:
1) Maintain print and mail services in-house as adopted in the Fiscal Year (FY) 2024
Adopted Budget; and
2) Report out on the status of the costs and performance of the print shop in 12-18
months.
EXECUTIVE SUMMARY
In 20191, the Finance Committee directed staff to explore the options for delivering printing
services along with possible cost savings and required services levels. Printing services are
provided by City staff to satisfy the myriad printing needs of City departments with fast
turnaround. This review was designed to consider outside providers to satisfy these needs at a
cost savings. After conducting a request for proposal (RFP) process, which included two rounds
of collecting cost information, staff recommends maintaining printing services in-house as the
best way to meet organization needs while keeping costs within the range demonstrated in the
market at this time. Recognizing that market conditions and business need vary over time, staff
will periodically revisit this conclusion.
Guiding staff’s thinking about the formation of the recommendation there were several factors
that rose to the surface. Impacts to customer service, personnel planning, organization-wide
change management, customer experience, and timely delivery of products were taken into
consideration along with cost in developing the recommendation. The recommendation reflects
the balancing of these interests along with financial impacts to strive towards the goal of
achieving a solution that positively affects most of these factors. These impacts are noted
towards the end of the report.
1FY 2020 Budget Referrals Update; https://www.Cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=74171
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BACKGROUND
The City has historically operated an in-house print shop, which is located on Level A of City Hall.
The print shop also serves as the mail room for the City’s inbound and outbound mail and the
staff for these services functions as one team. The print shop is part of the Administrative Services
Department and operates as a separate internal service fund (ISF). As an ISF the costs of the print
shop are allocated to City departments based on their actual usage. Examples of their workload
includes the mail room sending out 271,000 utility bills per year and the print shop producing an
estimated 500 individual Council packets totaling an estimated 200,000 – 500,000 printed pages
over a recent twelve-month period. A hybrid structure serves the print shop where outside
vendors are used for a portion of jobs, roughly 10-to-15 percent, that may need special work
outside the scope of in-house services – examples include poster signage, large format laminate,
and other more specialized requests. Under this structure the bulk of everyday printing, the other
85-to-90 percent, is managed by the print shop. A sampling of the print jobs that the City handles
include:
Table #3: Sample of Jobs and Volume Currently Handled by the Print Shop
(except where noted)
Job Number per Year (est.)
Council Packets 200,000 – 500,000 pages
Calendars 160 copies
Brochures 96,000 pages
Envelopes 48,000 units
Enjoy Catalogue
(may use outside contractors to fulfill but looking to bring in house)
37,000 copies
Nature Trail Guides 250 copies
Park Signs 30 units
Postcards 48,000 units
Rack Cards 3,000
Theater Programs 36,000 units
Posters 150 units
Library Handouts 5,000
Notice Cards 1,000 units
Reports with Binding 300 units
Street and Parking Signs 5,000 units
The City also has 62 copiers, spread across the organization’s many facilities that is provided
under a separate contract with ARC. These machines are primarily for small jobs that
departments can handle quickly. The City’s contract with ARC for the copiers is volume based so
the City only pays for the resources used. Larger and specialized print jobs are sent to the print
shop.
Having an on-site print shop offers flexibility and fast turnaround times for City departments. The
print shop also shares staff with the mail function, which allows for flexibility of resources for
redundancy as well as flexibility to immediately increase resources during high volume. This level
of service meets the dynamic needs of departments in providing up to date and attractive
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information to customers in a variety of printed formats. While the City has made a push to
digitize many internal documents, the need for printed materials remains to adequately
communicate with the public.
During budget discussions over the years, the question of whether print services could be more
efficiently provided by alternative means has come up. Alternative service delivery could mean
using an outside vendor(s), having an in-house vendor to run the print shop, or decentralized
printing with departments handling their own needs. Due to staff turnover and delays, a request
for proposal (RFP) was not released until 2022 with continued engagement with the vendors on
pricing through July 2023.
ANALYSIS
This report summarizes the staff work to evaluate alternative service delivery models including
information from the RFP, neighboring jurisdictions, and service levels. Ultimately, at this time
the recommendation is to accept this report and maintain service delivery methods with a revisit
in the next year (12-18 months) based on the continued monitoring of service need adaptations
post pandemic and in the new hybrid method of service delivery community wide. To summarize,
the recommendation to keep print services in-house resulted from staff’s assessment of key
dimensions of customer service / experience, personnel development, change management,
timely delivery, cost.
Procurement Process
On May 16, 2022, an RFP for the Citywide Printing Services posted on the PlanetBids portal and
sent to 111 vendors. The procurement period was 36 days, and proposals were received from
five proposers on June 21, 2022, as listed in the Summary of RFP Process below.
Table #1: Summary of Request for Proposal
Proposal Description RFP178547, Citywide Printing Services
Proposed Length of Project 3 to 5 years
Number of Vendors Notified 111
Number of Proposal Packages Downloaded 13
Total Days to Respond to Proposal 36
Pre-Proposal Meeting No
Number of Proposals Received 5
Proposal Price Range $403,000 to $3,723,000
Public Link to Solicitation PlanetBids Vendor Portal2
The initial results of the RFP received in 2022 were insufficient to accurately compare costs across
vendors. A review of the costs made clear that vendors had interpreted the RFP instructions
differently. Staff issued an addendum with more precise terms being asked for by the City in June
2 PlanetBids Vendor Portal: https://pbsystem.planetbids.com/portal/25569/bo/bo-detail/94349
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2023, results were received in July 2023. Again, there continued to be areas of inconsistency with
non-comparable results across vendors. As a result of inconclusive RFP results after two rounds
of submissions staff plans to officially reject all proposals and not resolicit as provided for in the
municipal code3.
Although inconclusive in a precise comparison, this information from the service providers in the
industry was informative equipping staff with sufficient market information to determine a
possible range of cost for services, from $403,000 to $3.7 million. The wide range is attributable
to the difference in interpretation of the specifications among the responders. Variability
resulted from different materials, volume, and turnaround time as some of the general and
typical variability of printing job characteristics. A breakdown of the major components of the
services across vendors4 is show in the following table:
Table #2: Breakdown of Major Components of Proposals
Service Provided Vendor 15 Vendor 2 Vendor 3
Cost Range6 $403,000 – $957,000 $915,000 –$3.7M $1.2M –$1.35M
Basic Service Delivery and pickup included
with 3-5 business day
turnaround typical
Copying, printing, and
graphics, monthly
billing consumption
reports, ongoing
training on how to use
portal
Delivery and pickup
included; cloud-based
order placing system
Extra Services Same day requests must be
received prior to 8am, no
guarantee of same day.
Digital, toner-based,
inkjet, latex, offset
Rush charges applied to
expedited jobs
Special Costs Rush charges: Add’l 25% to
unit price; cost with rush
markup ~ $956,725
Rush Services $120/hr
Response Time M-Th: Same day if received
before 8am
Fri: if received before 8am
next business day, weekends
special (if required)
Offers Same Day and
Next Day non-standard
Small jobs can be sent
to current printers
Guaranteed
turnaround: 2-4
business days for digital
printing; 3-5 days for
offset printing
Same day and rush
orders available as
special order
3 2.30.470 Cancellation of solicitations -- Rejections of bids/proposals
https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-62073
4 The three vendors shown represent those that scored highest with a user panel. A total of 5 proposals were
received.
5 Since all bids are being rejected the names of the vendors are not being shown.
6 Staff were required to make certain assumptions to create total costs per vendor. These costs may not represent
verbatim those originally presented in the RFP.
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For comparison, the FY 2024 Adopted budget to run the in-house print & mail shop is
approximately $1.5 million, which includes salary and benefit costs for 2.10 FTE and non-salary
costs. When isolating for print specific resources, cost for service is approximately $1.1 million,
however, as a combined team, this is an estimate given shared resources. The City’s print shop
provides turnaround times of same day or next day approximately 90 percent of the time. Based
on the market information such fast turnaround times were either not available or came with
additional costs as special requests. Most firms offered multiday turnaround times for the
majority of jobs.
Alternative Service Model
The City also provided the option to staff an on-site print shop managed by an outside firm; an
onsite service provider model where the provider assumes all responsibility for equipment, staff,
and management of the print shop at a negotiated fee. No potential service provider bid a
managed onsite solution as a form of service delivery.
In evaluating department needs it was noted that if the in-house print shop was not available
departments might shift more jobs to their department copiers rather than wait for delivery from
an outside vendor. In that scenario the print shop serves as an extra set of hands freeing up
department staff for core department work.
Neighboring Jurisdiction Comparison
To place the City’s costs of providing printing services in context, staff asked several cities to
provide information about their printing services. It’s important to note that depending on the
City they may not have as many utilities, the same frequency of public meetings, number of
recreational and entertainment options, volume of materials disseminated for public meetings
(e.g. printing of full contracts), and libraries as Palo Alto. All of these are factors that drive Palo
Alto’s volume of printed materials and fast turnaround.
Table 4: Contextual Points from Other Cities
Menlo Park • Contracted out to several vendors
• $200,000 - $300,000 estimated Citywide for all vendors
Los Gatos • Decentralized to departments with some outside support for
occasional specialized needs
• No central cost available to compare
San Carlos • A mix of in-house and contracting out for print jobs
• No dedicated print shop
• In the range of $150,000 per year for contracts
Sunnyvale • In-house print shop
• Including mailing services
• Total for both is $625,000
• 1 employee
Mountain View • Mix of in-house and contracting out
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• 1 FTE, < 1 Hourly
• Plus $500,000 for several contracts with vendors
Additional Variables for Consideration of Service Delivery
Staff Development/Succession Planning – This service line provides an opportunity of entry for
employment with the City at an entry level position. This can turn into a path for a full
professional career with the City aiding in department’s succession planning efforts. Over the
years, the Administrative Services, Utilities, and Information Technology Departments along with
the warehouse at the Municipal Service Center have seen several staff move up in the
organization after working in the print shop and remain with the City in many cases. The print
shop is a good setting in which customer service and administrative skills can be developed,
supporting a organization-wide view serving many departments.
Staff Recommendation: Maintain In-House Print & Mail Service Delivery
The recommendation to keep print services in-house resulted from staff’s assessment of key
dimensions of decision making as shown below. Based on the RFP results, comparison to
neighboring jurisdictions, market response to alternative models, and cultural organizational
benefits such as employee development, staff recommend maintaining the print shop in-house
supported by contracts with vendors for specialized work as is currently the practice.
•Customer Service – City departments are the customers of the print shop. Having an
onsite print shop offers streamlined access to in-person collaboration. Dedicated staff are
available to listen to and respond to customer needs in real time. Delivery of print jobs
can also be arranged for locations away from City Hall.
•Customer Experience – Related to customer service is the experience for customers when
submitting and retrieving jobs. Currently submitting jobs can be accomplished via email
and followed up with a quick conversation as needed to determine the specifications of
the job. When retrieving the job a short while later staff can come to A Level of City Hall
and find their product on the shared counter space lined up by department.
•Personnel Development – As noted above the print shop has served as an entry point for
people interested in joining the City. This has served succession planning efforts by
developing staff with core skills needed to take the next step in the organization. To date
staff from the print shop have advanced to the Administrative Services, Information
Technology and Utilities Departments along with the warehouse at the municipal service
yard.
•Change Management – Keeping the in-house print shop offers the least amount of change
for departments when taking into consideration the relative possible cost savings. While
change is necessary at times minimizing change that yields relatively minimal benefit is
desirable in this case. The possible costs savings alone does not warrant instituting a
change to the process that currently operates effectively.
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•Timely Delivery – Among the most important factors for customer departments is the
availability of fast turnaround. Whether it’s meeting the demand of a new program or
public presentations and government meetings departments can reliably count on getting
their product in time.
•Cost – What has been shown from this RFP process, inconsistencies noted, is a snapshot
of marketplace costs for printing services within the magnitude range of the City’s needs.
Placed within this range the City’s cost of $1.1 million is just above the low-end and well
below the high-end. The possible cost savings balanced against the other factors is
outweighed in the end and this is reflected in the recommendation.
Staff believes keeping the print shop in-house offers the best opportunity to meet the mix of
these factors. Staff will monitor the performance of the print shop over the coming one year (12-
18 months) including cost information, tracking performance, and working with customers to
factor in greater turnaround times on their print jobs. Gathering this information will help assess
whether another look at outsourcing might be worthwhile if a combination of flexible turnaround
times and lower costs could be found that would shift the calculation more in the direction of
outsourcing in the future.
An alternative to staff’s recommendation for Finance Committee consideration is to perform an
entirely new RFP process with newly designed cost templates and additional vetting of vendor
responses. This would delay bringing the print shop to full staffing but may produce a more
refined picture of comparable market costs.
FISCAL/RESOURCE IMPACT
The Printing and Mailing Fund has a FY 2024 Adopted Budget of approximately $1.5 million made
up of $263,000 in salary and benefits costs for 2.10 FTE and $1.2 million in non-salary costs. The
expenses include postage costs of $300,000 and other expenses of $265,000. Since these costs
are not related to the printing function, they can be removed from the total to determine the
approximate cost of the printing service even though the two are joined. When this is done the
resulting amount for the print shop is around $1.1 million when also taking into account the
allocation to departments. This will be the ongoing cost of keeping the printing function in house,
which currently includes $30,000 in contract dollars for supplemental printing services for jobs
that are out of scope for the print shop, such as large banners or specialized binding.
It’s important to consider the mailing function and related costs since those are costs that will
remain no matter what’s done with printing, and they share staff. Should the City stop providing
print services in-house, at minimum, one staffing resource would be necessary to retain to
continue mailing functions.
STAKEHOLDER ENGAGEMENT
This project involved the input from City departments that use the print shop. Printing vendors
were contacted to provide proposals and other cities provided information on their own printing
services.
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ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA
Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably
foreseeable indirect physical change in the environment.
APPROVED BY:
Kiely Nose, Assistant City Manager
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