SR 06-27-1989 6I
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Council Meeting: June 27, 1989
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JUN 2 7 1989
Santa Monica, California
TO:
Mayor and city council
FROM:
city staff
SUBJECT: Recommendation to Award Bid to Furnish and Deliver
Miscellaneous Duplicating Paper, Bid #2231
INTRODUCTION
This report concerns award of bid to furnish and deliver
miscellaneous duplicating paper for a one-year period at
specif1ed unit prices, plus applicable sales tax.
BACKGROUND
In response to published Notices Inviting Bids (published May 8
and 9, 1989) to furnish and deliver miscellaneous duplicating
paper in accordance with city speciflcations, bids were received
and pUblicly opened and read on May 25 f 1989_
Proposal forms
were malled to nine vendors and notices were advertised in
accordance with City Charter and Municipal Code prov1sions. Four
proposals were received as follows:
Bid #1 - Virgin Pulp Paper: Item Numbers 1 - 13
Kirk Paper $115,701.97
La Salle Paper Company $119,631.02
unisource $177,451.90
These bids are for various sizes, types and colors of paper,
which includes 20# bond, NCR paper, chipboard and card stock.
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JUN 2 7 1389
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Bid #2 - Recycled Paper: 20# White Copier Paper
Conservatree Paper Co.
$31. 70/case
(5,000 sht/case)
Conservatree Paper Co. is the only bidder to bid recycled paper.
They bid only one size - 8 1/2 x 11 white copier paper, estimated
quantity 1,250 cases at $31.70/case or a total of $39,625.00.
Currently, this is the only recycled paper currently available on
the market which can be used by the city.
Pursuant to staff's memo to council, dated April 25, 1989, staff
has continued efforts to obtain recycled printing paper for City
usage. In April, the cost for recycled paper was 28% higher than
virgin pulp paper prices. However, the competitive picture has
changed substantially. By comparing the bid for Conservatree for
8 1/2 x 11 white recycled paper ($31.70/case) with the low bid
from Kirk Paper ($28. 05/caSe) for virgin pulp paper, there is
only a differential of approximately 11%, or a total of $4,562.50
more for 1,250 cases of recycled paper (this represents a
one-year supply).
On March 22, 1989, a pallet of recycled paper was purchased and
stocked in the City's Central Warehouse.
various departments
have successfully utilized this recycled paper for copiers and
miscellaneous printing needs.
In light of the demonstrated usability of recycled paper and the
City'S policy to encourage recycling and conservation,
staff
recommends awarding Bid #1 to Kirk Paper Co. and Bid #2 to
Conservatree Paper Co.
Moreover, due to this recent change in
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market conditions, staff will contact other paper users to
explore if joint purchasing of recycled paper could further
reduce the price differential between recycled and virgin paper.
BUDGETARY/FINANCIAL IMPACT
Fiscal Year 1988/89 appropriation authority for this purchase is
in the maintenance accounts of various departments.
As the
materials are drawn out of inventory/they will be expensed
against available FY 1988/89 appropriation authority.
For the
period July 1, 1989, through June 30, 1990, appropriation
authority will be as set forth in the FY 1989/90 budget.
RECOMMENDATION
It is recommended that the award of Bid #2231 be made to Kirk
Paper Co. for Bid #1 and to Conservatree Paper Co. for Bid #2 at
specified unit prices, plus applicable sales tax, as the lowest
and best bidders.
Prepared By:
E. O. Barnes, Purchasing Agent
f2231cc
06/20/89
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