HomeMy WebLinkAboutStaff Report 297-05I', V
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City of Palo Alto
City Manager's Report
TO: HONORABLE CITY COUNCIL 21
FROM: CITY MANAGER DEPARTMENT: LIBRARY
DATE: JUNE 20, 2005 CMR:297:05
SUBJECT: AUTHORIZATION TO RENEW PURCHASE ORDERS WITH BAKER &
TAYLOR FOR THE SECOND AND THIRD YEARS FOR THE
PURCHASE OF LIBRARY BOOKS, AUDIO VISUAL ITEMS, AND
LIBRARY CONTINUATIONS
RECOMMENDATION
Staff recommends that Council:
1. Authorize the City Manager or his designee to exercise the option to renew existing
purchase orders with Baker & Taylor in an amount not to exceed a total of $400,000 for
each of the second and third contract years for books, audio visual items, and library
continuations, provided the City Manager concludes that the contractor has been
responsive to the City's needs, and the quality of the contractor's products and service
has been acceptable during the first year ofthe contract.
2. Authorize the City Manager or his designee to exercise the option to execute one or more
changes to the purchase orders with Baker & Taylor to cover potential future budget
amendments resulting from grant funding, the total value of which shall not exceed
$40,000 in any contract period.
BACKGROUND
The Library Department purchases the vast majority of new items for its collections from
wholesale distributors who maintain large inventories of titles from many publishers and
producers. Obtaining books and media through these suppliers offers many advantages over
purchasing from individual publishers including:
• higher discounts off of the list, or retail, prices
• larger and more varied inventories
• efficiencies in placing orders and processing payments
• greater use of technologies needed to communicate with library databases and systems
• the option to deliver the books and media circulation-ready with physical processing and
cataloging information provided by the supplier.
Every three years, staff issues a Request for Proposal (RFP) to wholesalers who provide these
materials to public libraries. Some vendors specialize in providing different types of materials.
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Therefore, the RFP is structured so a vendor can propose to provide one or more maj or
categories of library materials such as adult books, children's books, audiovisual media, and
library continuations. Continuations are orders for titles, like travel guides and yearbooks, for
which libraries opt to automatically receive each new update. Purchase orders are established
with one or more of the vendors that best meet the selection criteria.
The last RFP process for the provision 'of library materials, completed in April 2004, resulted in
the staff recommendation to select Baker & Taylor as the principal supplier for library books,
audio visual, and library continuations. Eight vendors were invited to submit bids, and seven
responses were received.
As reported in CMR:182:05 sent to Council on March 14,2005, the initial total dollar amount of
the purchase order with Baker & Taylor fell within the limit of the City Manager's approval
authority of $250,000 for goods, including incidental processing services totaling less than three
percent. Based on the actual buying pattern experienced in the 2004-05 fiscal year, staff
determined that the total contract with Baker & Taylor would exceed the $250,000 by end of the
year and returned to Council for authorization to exceed this contract limit.
DISCUSSION
At the May 2,2005 City Council meeting, (CMR:237:05) Council authorized the City Manager
to execute a change order to a purchase order with Baker & Taylor in the amount of $68,000 for
the purchase of library books for FY 2004-05. Due to the upcoming 2005-07 budget
deliberations, the City Council was reluctant to approve the subsequent years of the agreement
and directed staff to return for Council approval for the second and third contract years for book,
audiovisual items, and library continuations with the 2005-07 budget adoption.
Staff is now requesting that Council authorize the City Manager to approve further purchases
with Baker & Taylor in excess of$250,000 for each of the 2005-06 and 2006-07 fiscal years.
RESOURCE IMPACT
Funds for these purchase orders are planned for the 2005-06 and 2006-07 fiscal years.
POLICY IMPLICATIONS
This recommendation does not represent any change to existing City policies.
ENVIRONMENTAL REVIEW
This does not constitute a project under the California Environmental Quality Act. Therefore, no
environmental assessment is needed.
PREPARED BY:
DIAi<rn JENNIN S
Manager, Main Library Services
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DEPARTMENT HEAD:
PAULA SIMPSON
CITY MANAGER APPROVAL: ~i~~
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