December 18, 2014 FROM: MICHAEL LIMA, Controller/Finance Director Finance Department BY: GARY WATAHIRA, Purchasing Manager Finance Department, Purchasing Division SUBJECT ..Title Approve a twelve (12) month interim contract extension, not to exceed $498,000 with Ray Morgan Company ("RMC") of Fresno, California, to continue to provide uninterrupted printing and copying services at City Hall and other City facilities ..Body RECOMMENDATIONS Approve a twelve (12) month interim contract extension, not to exceed $498,000 with RMC of Fresno, California, to continue to provide uninterrupted printing and copying services at City Hall and various City facilities; and authorize the Controller or his designee to sign and execute the standardized contract, approved as to form by the City Attorney's Office, on behalf of the City of Fresno. EXECUTIVE SUMMARY The Purchasing Division of the Finance Department has a current contract with RMC, expiring on December 31, 2014, to provide printing and copying services citywide. RMC was initially selected through a competitive selection process and put under contract to provide printing and copying services for City Hall and various City facilities and has performed satisfactorily under their current contract. An interim contract is necessary to allow RMC to provide uninterrupted printing and copying services at City Hall and various City facilities until a new Request for Proposal ("RFP") can be completed. Currently the monthly payment for City Hall and various other City facilities is approximately $41,500. The total amount for this twelve (12) month interim contract will not exceed $498,000. BACKGROUND RMC was selected for printing and copying services through an RFP and review process conducted in 2007. Three proposals were received at that time and RMC was declared the best overall value to the City of Fresno. A three-year contract was agreed upon with provisions for three 1-year extensions. Exercising the Special Conditions clause, an additional year for the contract was added in November of 2013. Additional time is needed to conduct a comprehensive RFP for a new vendor due to the Windows 7 upgrade, and limited technology staff/resources. Changing vendors at this point is deemed to have negative service impacts resulting in critical interruptions. Therefore, the Finance Department is requesting to extend the contract an additional twelve (12) months, to provide enough time to finish the Windows 7 upgrade and prepare the RFP. The current contract will expire on December 31, 2014, which requires this interim contract is to be executed with RMC to continue uninterrupted printing and copying services. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE RMC maintains a local office. Local preference will also be considered when the new RFP is issued for printing and copying services. FISCAL IMPACT RMC has agreed to extend the contract for an additional year at the existing price, terms and conditions. Appropriations of $500,500 were approved by the Council through the budget process within the General Fund, to fund printing and copying services through the end of FY 2015. Attachments: RMC Contract RMC Extensions