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sr-062210-1c~;tYof City ®uncil Report Santa Monica City Council Meeting: June 22, 2010 Agenda Item: ~ _G To: Mayor and City Council From:. Marsha Jones Moutrie, City Attorney Subject: Awarding Bid to Publish City's Legal Notices Recommended Action Staff recommends that the City Couhcil award a bid in the amount of $60,000 to the Santa Monica Daily Press to publish the City's legal notices for FY2010-11, pursuant to the requirements of Section 609 of the City Charter. Executive Summary State and local law require that legal notices, primarily relating to public bidding and land-use matters, be published in a newspaper of general circulation. Santa Monica City Charter Section 609 sets forth the procedures for annual selection of an official newspaper for publication of legal notices. In accordance with Charter Section 609, the City published a notice inviting bids to publish the City's legal notices during FY2010-11. After reviewing the three bid proposals received, Staff recommends that the Santa Monica Daily Press be selected at an approximate annual cost of $60,000, based on expected total expenditures in FY2009-10. Background The Santa Monica Municipal Code and State law require that legal notices, primarily items relating to public bidding and land use matters, be published in a newspaper of general circulation published- in the City (SMMC Sec. 9.04.20.22.050) or, if there is none, in a paper of general circulation published nearest to the City (Government Code Sec. 6042). Under State law, a paper qualifies for adjudication by either 1) being printed in the City for one year or 2) being published in the City for three years and having a principal office of publication in the City. 1 Staff published a notice inviting bids and selected an official newspaper based on the following criteria: ® Proof of adjudication in the City of Santa Monica • Amount of bid (ad rate, which cannot exceed customary rates) • Circulation (including copies per issue, documented readership) Delivery methods (news racks, home delivery, on-line, other) • Publication schedule (weekly, daily) • Percentage of local news carried Fiscallhtegrity • Reputation of publication The notice seeking bids was sent to a list of local publications on May 4, 2010; and published in the Santa Monica Daily Press, the City's current newspaper of record, three times between May 4 and May 14, 2010, with bids due May 19, 2010. The City received four bids for legal advertising services from the Santa Monica Daily Press, the Santa Monica Mirror, the Argonaut and the Santa Monica Observer. Discussion The Santa Monica Daily Press is being recommended for selection based on the criteria outlined in the notice inviting bids. A summary of the selected vendor's proposal appears below: Publication Rate Circulation Delivery Methods Publication Schedule % of Local News 19,000 daily 6 issues $12.75/col. print audited 750 box, rack and weekly,. Mon - ° Daily Press inch (no min.) & 3,000 drop locations; online Fri and 75 /o online & paid subscriptions weekend edition The other bidders are the Santa Monica Mirror, the Observer Newspaper and the Argonaut. The prices offered by the Mirror and the Argonaut were significantly higher - $14.90 and $14.15 per column inch respectively. Both are published weekly, with the the Mirror's circulation being 20,000 copies and the Argonaut's circulation being 30,000. 2 The Observer Newspaper offered a lower price of $10.00 per column inch; however, circulation is also much lower than the other bidders at 5,000 copies and does not represent a good value for the City Staff is recommending the Santa Monica Daily Press for selection because it meets or exceeds all of the criteria outlined in the request for bids and those offered by the other bidders. The Daily Press' costs per column inch are less, while its circulation is greater. The Daily Press, an adjudicated newspaper of general circulation since 2005, has a daily audited circulation of 19,000 (114,000 weekly). The Daily Press publishes six papers each week, offering citywide exposure and flexibility in its legal advertising. On average, the Daily Press publishes over 50 original local news stories per week and devotes a minimum of 75% of the newspaper to local news, opinion and other commentary. In addition, the Daily Press has a good reputation as a paper of record in the City of Santa Monica and has enjoyed an excellent working relationship with City staff, offering a dedicated employee to service the City's account. The $12.75 per column inch rate offered by the Daily Press is approximately 39% lower than its regular open rate and represents the best value of the bids received. The City typically publishes 4,500-5,000 column inches' worth of legal advertising in a fiscal year and can expect costs up to $60,000 in FY2010-2011. While the City Charter requires the selection of a single adjudicated newspaper for the purpose of publishing legal notices, it should be noted that display advertising to inform residents of City programs and services can and will continue to be placed in other local newspapers, both print and on-line, within approved budget allocations. Also, certain legal noticing, particularly Purchasing Officer bid notices that require dissemination beyond Santa Monica's borders, will continue to be published in the Los Angeles Times or other regional papers in addition to the Santa Monica Daily Press. Financial Impacts and Budget Obligations As of April 2010 (FY2009-10), the City has spent $47,465.09 to publish legal notices in the Santa. Monica Daily Press (3,722.75 column inches). Based on the probable 3 purchase of a similar number of column inches in FY2010-11, the purchase order to be awarded to the Santa Monica Daily Press. is $60,000. Funds are included in the FY2010-11 budget at account number 01211.522520, Records & Election Services. Prepared by: Joseph Lawrence, Assistant City Attorney Approved: d Y~Y~C-~i Ma s a Jon Moutrie City Attorn y Forwarded to Council: Rod Gould City Manager 4