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sr-061212-3zCity Council Meeting: June 12, 2012 Agenda Item: 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 Council award a bid for the purchase of the City's legally required notices for FY2012 -13 to the Santa Monica Daily Press, a California -based company, in the amount of $65,000, 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 FY2012 -13. After reviewing the bid proposal received from the Santa Monica Daily Press, staff recommends that this publication be selected at an approximate annual cost of $65,000, based on expected total expenditures in FY2011 -12. 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 Discussion 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 • Fiscal integrity • Reputation of publication Vendor selection The notice seeking bids was sent to a list of local publications on April 16, 2012 and published in the Santa Monica Daily Press, the City's current newspaper of record, three times between April 17 and April 27, 2012, with bids due May 7, 2012. The City received one bid for legal advertising services from the Santa Monica Daily Press. 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. A summary of the selected vendor's proposal appears below: Publication Rate Circulation Delivery Methods Publication Schedule of w Local News 6 issues $13.00 /col. 17,000 daily 750 box, rack and weekly, Mon — Daily Press inch (no min.) print audited drop locations; online Fri and 75% & paid subscriptions weekend edition' Other local papers, including the Santa Monica Mirror, the Observer Newspaper and the Argonaut; chose not to submit bids this year. The Santa Monica Daily Press is the only adjudicated paper that publishes daily Monday through Saturday (weekend edition), offering the highest weekly circulation number, density and readership. 2 The Daily Press, an adjudicated newspaper of general circulation since 2005, has a daily audited circulation of 17,000 (102,000 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 an established reputation as a paper of record in Santa Monica and has been responsive to staff's requests, offering a dedicated employee to service the City's account. The $13.00 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. As of April 2012 (FY2011 -12), the City has spent $55,570 to publish legal notices in the Santa Monica Daily Press (approximately 4360 column inches). The recommendation to open a $65,000 purchase order for legal advertising is based on the probable purchase of a similar number of column inches in FY2012 -13. 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 online, 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. 3 Financial Impacts and Budget Actions The purchase order to be awarded to the Santa Monica Daily Press is $65,000. Funds are available in the FY 2011 -13 budget in division 211; the purchase order will be charged to account 01211.522520 (Legal Advertising). Prepared by: Joseph Lawrence, Assistant City Attorney roved: / lam, MaJJsha Jo' es Mou i City Attorney 2 Forwarded to Council: Rod Gould City Manager