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HomeMy WebLinkAboutStaff Report 2503-4412CITY OF PALO ALTO CITY COUNCIL Monday, June 09, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     D.Print Shop Status Report - 18-Month Update; CEQA Status – Not a Project City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Administrative Services Meeting Date: June 9, 2025 Report #:2503-4412 TITLE Print Shop Status Report - 18-Month Update; CEQA Status – Not a Project RECOMMENDATION This is an informational report and no action is required. BACKGROUND On November 13, 2023, Council approved to keep the Print Shop operations in house and maintain current service levels1. The recommendation also included providing Council with a status update within 18 months, which is the purpose of this report. The review in 2023 included a request for proposal (RFP) process that provided important information to inform the recommendation to keep print shop services in-house. The factors contributing to the recommendation included customer service, customer experience, personnel development, change management, timely delivery, and cost. Having an in-house print shop offers city departments personalized customer service and fast delivery of same day print jobs. While the inhouse print shop was not the least costly option reviewed in the RFP it offered the best turnaround times and customer experience at a reasonable cost that was considerably below the highest bid. Over the past year and a half, it has been shown that meeting customer needs for quick turn around and customer service overall has served the city well. At the same time certain changes are expected that will impact the future ongoing service provision of the print shop. Chief among these is the planned outsourcing of utility bill printing. This change will reduce the workload in the print shop by roughly 12% before the possibility of 1 Finance Committee, November 13, 2023 Recommendation to Maintain Current Service Delivery Model for Print and Mail Services https://cityofpaloalto.primegov.com/api/compilemeetingattachmenthistory/historyattachment/?historyId=c4209 b4b-60da-4bae-b477-32db6dfef76d increasing the workload with new opportunities after utility bill printing is fully outsourced. This is expected by late 2025. New opportunities may include keeping overflow jobs in-house rather than being sent out to vendors, and potentially expanded services such as printing posters, which would require financial investment in new machine(s). ANALYSIS Table #1 Printing Jobs Print Jobs by Department (6 Months Ending April 2025) Department # Jobs Planning 181 Children's Theatre 88 Public Works 74 Community Services 66 Development Services 30 City Manager's Office 27 Utilities 25 Art Center 22 Revenue Collections 22 Police 18 Table #1 Printing Jobs Print Jobs by Department (6 Months Ending April 2025) Department # Jobs Office of Transportation 16 Library 13 Mitchell Park Community Center 9 Customer Service 8 Office of Emergency Services 8 Animal Control 4 City Clerk's Office (does not include Council packets)4 Office of Sustainability 4 Human Resources 3 ASD 2 Junior Museum 2 Airport 1 Facilities 1 Total 628 Table #2 Printing and Mailing Jobs Work Performed (6 months ending April 2025) Type # Jobs Items Mailed 88,069 Utility Bills Mailed 120,204 Print Jobs - In House 653 Print Jobs Sent Out (external vendor)66 Council Packets 292 Staff plans to begin promoting the services the print shop can do in-house to City Staff. We will also investigate what jobs the departments are currently outsourcing and how we can bring them back in-house. This could open an opportunity to expand print shop services to other areas such as poster printing and envelopes, which require additional financial investments in equipment or machine(s). FISCAL/RESOURCE IMPACT This is an information report and does not have a fiscal impact. The Print Shop budget of approximately $1.7 million for the FY2025 Adopted Budget and FY 2026 Proposed Budget are summarized in table 3 below. Table #3 Printing and Mailing Expenses and Revenues FY 2025 Adopted FY 2026 Proposed Expenses /Expenditures $1,679,209 $1,660,237 Salary and Benefits $298,047 $268,155 Allocated Charges $364,962 $361,582 Contract Services $356,000 $366,800 General Expenses $252,900 $252,900 Rents and Leases $232,300 $235,800 Supplies and Materials $175,000 $175,000 Revenues / Funding Source $1,659,000 $1,543,440 Charges to Other Funds $1,654,000 $1,528,550 Operating Transfers-In $10,000 Return on Investments $5,100 $4,890 Print shop staff work closely with staff in city departments to receive and process print job requests. City staff have a new opportunity to provide feedback via a survey at the completion of print jobs. The responses received since the survey was implemented have been positive. Feedback has been received from the Community Services Department, Administrative Service Department, Development Center and the City Manager’s Office. This is item is not a project as defined by the California Environmental Quality Act (CEQA) because the report is for informational purposes only with no action required by the Council. None. : Lauren Lai, Administrative Services Director