City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Library
Meeting Date: April 6, 2026
Report #:2601-5832
TITLE
Approval of Contract Amendment Number 2 to Contract Number C21177635B with Ingram Library Services in the amount of $664,000 for Print Materials and Services for a new not-to- exceed (NTE) of $1,119,000 and to extend the contract term to June 30, 2028, Contract Amendment Number 2 to Contract Number C21177635C with Midwest Tape in the amount of $360,000 for Media and Digital Materials and Services for a new NTE of $1,113,000 and to extend the contract term to June 30, 2028, and Contract Amendment Number 1 to Contract Number C25190507 with OverDrive in the amount of $200,000 for Digital Materials and Services for a new NTE of $400,000 and to extend the contract term to June 30, 2028; CEQA Status – Not a Project.
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or designee to execute:
1. Amendment No. 2 to Contract C21177635B with Ingram Library Services (Attachment A), extending the contract term to June 30, 2028 and increasing NTE amount by $664,000, for a new total NTE of $1,119,000, to support the acquisition of print materials and services
2. Amendment No. 2 to Contract C21177635C with Midwest Tape (Attachment B), extending the contract term to June 30, 2028 and increasing the NTE amount by $360,000, for a new total NTE of $1,113,000, to support the acquisition of media and digital materials and services
3. Amendment No. 1 to Contract C25190507 with OverDrive (Attachment C), extending the contract term to June 30, 2028 and increasing the NTE amount by $200,000, for a new total NTE of $400,000, to support the acquisition of digital materials and services
EXECUTIVE SUMMARY
In September 2025, Council approved staff recommendations to amend the City’s contracts with Ingram Library Services and Midwest Tape.1 These amendments reallocated funds from Baker & Taylor – formerly the Library’s primary print materials provider – to Ingram and Midwest Tape, because of significant and ongoing performance issues with Baker & Taylor. In October 2025, Baker & Taylor announced that it would cease operations. A market analysis found that issuing an RFP for print, media and digital material at this time is unlikely to yield a successful result because of the disruption caused by the sudden closure of Baker & Taylor.
Staff recommends extending the contracts with Ingram, Midwest Tape and OverDrive (digital materials provider) for two years. This adjustment ensures the community’s continued access to print, media, and digital materials.
BACKGROUND
In 2020, the Library issued a Request for Proposals (RFP) to identify qualified providers for the acquisition and delivery of print, media, and digital library materials and related services. The RFP resulted in three six-year contracts, approved by City Council on June 22, 2020.2 All three contracts have a six-year term of July 1, 2020 to June 30, 2026. Contract C21177635A – Baker and Taylor
Total NTE for six years = $2,000,000
Contract C21177635B – Ingram Library Services
Total NTE for six years = $200,000
Contract C21177635C – Midwest Tape
Total NTE for six years = $700,000
Following the RFP process, Baker & Taylor was selected as the primary provider for print, media and digital materials and services, with Ingram and Midwest Tape designated as secondary providers.
In 2024, the Library issued an RFP to identify qualified providers for the acquisition and delivery of digital library materials and streaming media and related services. Following the RFP process, OverDrive was selected as the primary provider digital library materials, streaming media and related services. This RFP resulted in Contract C25190507 – OverDrive for the time period of 1 City Council, September 15, 2025, agenda item 5; staff report # 2506-4846, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83590&dbid=0&repo=PaloAlto&searchid=d088b46 7-da7d-4a1c-979f-e8a360db790f
2 City Council, June 22, 2020, agenda item 26, staff report # 11398, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=80844&dbid=0&repo=PaloAlto&searchid=d088b46 7-da7d-4a1c-979f-e8a360db790f
July 1, 2024 to June 30, 2026. The total NTE is $200,000. This contract was approved by Council on June 18, 2024.5
The intent of the digital library materials RFP was to align the end date of contract with the selected provider with the end date of the Ingram, Midwest Tape and Baker & Taylor contracts.
This would make it possible for the Library to issue a single RFP in late winter/early spring 2026 to identify qualified providers for the acquisition and delivery of print materials, physical media, digital materials, streaming media and related services.
Over the course of FY25, Baker & Taylor’s performance declined significantly, with numerous orders delayed or unfulfilled. In March 2025, the provider abruptly canceled over 1,000 back- ordered items without notice, depriving timely access to new and popular materials. In response, staff worked with Ingram and Midwest Tape to replace the canceled items. Both providers fulfilled the replacement orders promptly and reliably.
In September 2025, staff recommended reallocating $308,000 in funds from Baker & Taylor’s contract C21177635A as follows:
• $255,000 to Contract C21177635B – Ingram Library Services • $53,000 to Contract C21177635C – Midwest Tape
Council approved this recommendation.6
In October 2025, Baker & Taylor announced its imminent closure. Staff dramatically accelerated the development of the updated technical services processes and procedures necessary to navigate the complete and sudden elimination rather than the gradual transition that had been planned.
Staff were planning to issue an RFP to identify qualified providers for library materials as the current contracts are set to expire on June 30, 2026. However, a recent analysis of the current public library materials market revealed that an RFP is unlikely to be successful at this time. The remaining providers have taken on thousands of new customers since Baker & Taylor’s closure and are struggling to expand infrastructure and increase staffing to meet demand. Some providers are currently not responding at all to RFPs. This market analysis indicates that the community will be best served by extending the existing print, media, and digital library materials contracts for two years while market conditions stabilize. 5 City Council, June 18, 2024, agenda item 6; staff report # 2405-3034, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82940&dbid=0&repo=PaloAlto&searchid=7fd7725f- 59e0-467f-855e-4a17dfff0de9
6 City Council, September 15, 2025, agenda item 5; staff report # 2506-4846, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83590&dbid=0&repo=PaloAlto&searchid=d088b46 7-da7d-4a1c-979f-e8a360db790f
ANALYSIS
To ensure uninterrupted service to the community and continued access to new and high- demand books and media, staff recommends extending the following contracts for two years with an updated expiration date of June 30, 2028:
• Contract C21177635B – Ingram Library Services
• Contract C21177635C – Midwest Tape
• Contract C25190507 – OverDrive
Additionally, staff recommends reallocating $50,000 in funds allocated to Baker & Taylor’s contract C21177635A in FY26 as follows:
• $41,000 to Contract C21177635B – Ingram Library Services • $9,000 to Contract C21177635C – Midwest Tape
This reallocation and extension ensure continued access to high-demand materials, reflects provider performance and maintains service quality. Staff will initiate a new RFP process in advance of the amended end date of June 30, 2028.
FISCAL/RESOURCE IMPACT
Funding for these contract amendments is available in the Library’s Fiscal Year 2026 Operating Budget and does not require additional appropriations. Future years of the contracts are subject to the annual appropriation of funds. The proposed increase to the NTE amounts for Ingram Library Services and Midwest Tape for FY 2026 represents a reallocation of the $50,000 NTE that was allocated to Baker & Taylor in FY 2026. Contract values reflect a maximum spend; utilization can be adjusted in alignment with available funding levels at any time.
STAKEHOLDER ENGAGEMENT
Library staff worked closely with Ingram, Midwest Tape, and OverDrive as well as the Purchasing Division of Administrative Services Department during the development of this contract amendment.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by the California Environmental Quality Act (CEQA) because approval of this contract amendment—related to the procurement of library materials—is an administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5)).
ATTACHMENTS
Attachment A: Contract with Ingram Library Services, C21177635B, Contract Amendment No. 2 Attachment B: Contract with Midwest Tape, C21177635C, Contract Amendment No. 2 Attachment C: Contract with OverDrive, C25190507, Contract Amendment No. 1 APPROVED BY:
Gayathri Kanth, Library Director