STAFF REPORT
Meeting Date:
September 23, 2025
CONSENT
14 SUBJECT: AGREEMENT FOR AMAZON BUSINESS MARKETPLACE SERVICES RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to enter into an agreement with Amazon Business for an amount not to exceed $220,000 per year, for a five-year term for a cumulative amount of $1,100,000 for online marketplace services for the purchase of business supplies for City Departments, in a form approved by the City Attorney; and
2. Find the action is not a project subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378.
Appropriation: $0 Fund: N/A
Submitted By: Michelle Bannigan Approved: David A Kiff
Michelle Bannigan, Finance
Director
Dave Kiff, City Manager
SUMMARY OF THE MATTER
This report recommends that the City Council authorize the City Manager to execute an agreement with Amazon Business for online marketplace services, leveraging the State of Utah Cooperative Contract No.
LS4679 awarded through Omnia Partners. The agreement will be effective from October 1, 2025, through May 5, 2030, and will not exceed $220,000 annually or $1,100,000 over the five-year term.
The agreement will consolidate existing departmental Amazon accounts into a centralized purchasing platform, streamlining procurement processes, improving administrative oversight, and enhancing expense tracking. Participating departments will benefit from volume-based incentives, including 1–2% annual rebates, free shipping, and discounts on bulk purchases.
The dollar amount referred to - $220,000 annually – is a “not to exceed” amount which is the expected value of business supplies purchased. In other words, the contract cost is not $220K annually, but products purchased under the agreement would be up to $220K.
DISCUSSION
City Departments currently utilize Amazon for the purchase of office supplies and various other operational materials due to its competitive pricing options, fast and free shipping, and an efficient return process. The combined annual Citywide spend through all individual departments is approximately $200,000. This amount reflects the value of purchases made, not an access or participation fee.
AGREEMENT FOR AMAZON BUSINESS MARKETPLACE SERVICES
September 23, 2025
Approval of a formal agreement with Amazon Business will consolidate these purchases under a single City account with department specific subaccounts. This centralized platform will streamline administrative efficiency, maximize savings, and provide greater visibility into purchasing activity. Additional benefits include a designated Amazon Business support representative to assist with account setup, training, and ongoing support.
Departments will retain management over their users, account coding, and approval workflow to ensure accurate expense tracking and timely invoice processing. Because having Amazon sign the City’s template agreement was not feasible, the agreement includes Amazon’s standard business Terms and Conditions, which have been reviewed and approved by the City Attorney. While these Amazon standard terms are of course not as protective of the City, these Terms allow the City to terminate the Agreement at any time without penalty and the savings and other benefits offered by this Amazon service justify the arrangement absent the City’s template agreement.
FINANCIAL ANALYSIS
Funding for the purchase of office and operational supplies through Amazon Business has been included in the adopted Fiscal Year 2025–26 departmental budgets. No additional appropriation is required to implement this agreement.
The total not-to-exceed cost of the agreement is $1,100,000 over five years, or $220,000 annually. While expenditures are distributed across departmental supply budgets, the consolidated purchasing platform is expected to generate cost efficiencies through volume-based rebates (1–2%), free shipping, and access to discounted bulk pricing. There is an annual fee of $799 in order to receive free shipping for the entire year.
Amazon waived this fee for Year 1 of the agreement.
ENVIRONMENTAL ANALYSIS
This action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378, as it does not constitute a “project.” Section 15378 defines a project as an activity that may cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change. The proposed action involves approval of an administrative agreement for procurement services, which does not authorize or result in any physical development or environmental change.
ATTACHMENTS
1. Cooperative Agreement, State of Utah #LS4679 (Pgs. 3-22)
2. Amazon Business Accounts Terms and Conditions (Pgs. 23-29) Report Prepared By: Coordinated With:
Christina Reyes
Procurement Officer (Contract)
Shannon Espinoza, Finance Manager