CITY OF
LONG
Department of Financial Management
411 West Ocean Boulevard, 6th Floor
Long Beach, CA 90802
562 570-6425
May 10, 2022
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
C-6
Adopt a Resolution authorizing the City Manager, or designee, to execute a contract, and any necessary documents including any necessary subsequent amendments, with United Parcel Service, Inc., of Atlanta, GA, for providing ground and overnight express mail services on an as-needed basis, on the same terms and conditions afforded to Sourcewell, a state of Minnesota local government unit and service cooperative, in a total annual amount of $75,000, and authorize a 20 percent contingency in the amount of $15,000, for a total annual contract amount not to exceed $90,000, until the Sourcewell contract expires on November 11, 2025, with the option to renew for as long as the Sourcewell contract is in effect, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with United Parcel Service, Inc. (UPS) for providing ground and overnight express mail services on an as-needed basis for various departments.
The Purchasing Division within the Department of Financial Management researched procurement options for as-needed ground and overnight express mail services and discovered other agencies had completed an open, fair, transparent, and competitive procurement process. The City of Long Beach (City) reviewed the contract options and determined that the contract between Sourcewell and UPS provided the best value to the City.
UPS was selected based on its competitive pricing, service level, and breadth of product offerings. UPS offers a convenient web-based shipping system. UPS services are convenient and flexible to meet the needs of City Departments.
City Charter Section 1802 provides an alternative procurement method by permitting the City to purchase or otherwise obtain services, supplies, materials, equipment, and labor on the same terms as provide to other governmental agencies. This alternative procurement method can save time and reduce costs through economies of scale by purchasing under existing contracts from other government agencies on a voluntary and selective basis, when authorized by a Resolution adopted by the City Council.
HONORABLE MAYOR AND CITY COUNCIL
May 10, 2022
This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on April 11, 2022, Business Services Manager Tara Mortensen on March 31, 2022, and by Revenue Management Officer Geraldine Alejo on April 7, 2022.
TIMING CONSIDERATIONS
City Council action to adopt a Resolution and award a contract concurrently is requested on May 10, 2022, to ensure the contract is in place expeditiously.
FISCAL IMPACT
The total annual contract amount will not exceed $90,000, inclusive of a 20 percent contingency. The contract will be used on an as-needed basis, with the cost budgeted across various fund groups and departments.This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
/<~- 4
KEVIN RIPER
DIRECTOR OF FINANCIAL MANAGEMENT
ATTACHMENT - RESOLUTION
APPROVED:
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THOMAS B. MODICA
CITY MANAGER
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AGREEMENT WITH UNITED
PARCEL SERVICE, INC., FOR PROVIDING GROUND AND
OVERNIGHT EXPRESS MAIL SERVICES ON AN AS -
NEEDED BASIS, ON THE SAME TERMS AND
CONDITIONS AFFORDED TO SOURCEWELL, A STATE OF
MINNESOTA LOCAL GOVERNMENT UNIT AND SERVICE
COOPERATIVE, IN A N ANNUAL AMOUNT OF $75,000,
PLUS A 20% CONTINGENCY IN THE AMOUNT OF $15,000,
FOR A TOTAL ANNUAL CONTRACT AMOUNT NOT TO
EXCEED $90,000, UNTIL THE SOURCEWELL CONTRACT
EXPIRES ON NOVEMBER 11, 2025, WITH THE OPTION TO
RENEW FOR AS LONG AS THE SOURCEWELL
CONTRACT IS IN EFFECT, AT THE DISCRETION OF THE
CITY MANAGER
WHEREAS, the Charter of the City of Long Beach (the “City”), Section 1802, permits the City to purchase services, supplies, materials, equipment and labor with other government agencies by purchasing under their contracts on a voluntary and selective basis when authorized by resolution; and
WHEREAS, the City desires ground and overnight express mail services on an as-needed basis; and
WHEREAS, Sourcewell has a contract with United Parcel Service, Inc. for express courier and ground delivery services, Contract No. 090121-UPS (“Sourcewell Contract”); and
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
WHEREAS, the City’s participation in the Sourcewell Contract will facilitate acquisition of the ground and overnight express mail services as well as provide considerable cost benefits to the City; and
WHEREAS, if t he City had to utilize a formal bid process rather than participate in the Sourcewell Contract considerably more funds would be required; NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:
Section 1. The above recitals are true and correc t and are incorporated herein by this reference.
Section 2. The City Manager of the City is hereby authorized to enter an agreement with United Parcel Service, Inc. to provide ground and overnight express mail services on an as-needed basis, on the same terms and conditions afforded to Sourcewell, a State of Minnesota Local Government Unit and Service Cooperate, in an annual amount of Seventy-Five Thousand Dollars ($75,000), plus a twenty percent (20%) contingency in the amount of Fifteen Thousand Dollars ($15,000), for a total annual contract amount not to exceed Ninety Thousand Dollars ( $90,000), until the Sourcewell contract expires on November 11, 2025, with the option to re new for as long as the Sourcewell contract is in effect, at the discretion of the City Manager.
Section 3. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ///
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of _________________________, 2022, by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
City Clerk