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HomeMy WebLinkAboutItem 17 - Amend Agreement with MK Printing, Inc. for Offset Printing ServicesFinance and Management Services www.santa-ana.org/finance Item # 17 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 16, 2023 TOPIC: Amend Agreement with MK Printing, Inc. for Offset Printing Services AGENDA TITLE Amend Agreement with Mekong Printing dba MK Printing, Inc. to Increase the Agreement by $60,000 for a New Total Agreement Amount not to Exceed $675,000 and to Extend the Term to June 30, 2024 (General Fund) RECOMMENDED ACTION Authorize the City Manager to execute a second amendment to the agreement with Mekong Printing dba MK Printing Inc. to provide citywide offset printing services, increasing the agreement amount by $60,000 ($30,000 annually for the remaining term) for a new total agreement amount of $675,000 and extending the term from June 3, 2024 to June 30, 2024, subject to non -substantive changes approved by the City Manager and City Attorney. DISCUSSIO On June 4, 2019, the City Council approved a three-year agreement with MK Printing, Inc. for offset printing services for a three-year period, in an annual amount of $80,000, with provisions for two one-year renewals. The total contract amount, including the two one-year term extensions, is $400,000. The existing agreement (A-2019-083) allows the City to outsource offset printing services in a timely manner and meet the needs of various departments citywide. Examples of the orders requested include Census outreach efforts, economic development, neighborhood parking permits, miscellaneous forms related to Police Department administrative activity, and printing of other forms and printing services related to mass mailing services as needed. On August 18, 2020, the City Council approved the first amendment to the agreement to increase the total agreement amount to $615,000. The second amendment request (Exhibit 1) is to increase the total agreement amount by $60,000, which will increase the annual not -to -exceed amount to $145,000 and the total agreement amount to $675,000. The request for the increase is due to a higher - than -anticipated number of printing orders and an increase in costs of paper and services. Furthermore, the request to extend the term an additional 26 days to June 30, Amend Agreement with MK Printing, Inc. for Offset Printing Services May 16, 2023 Page 2 2024, will avoid a gap in services through the Request for Proposal (RFP) process allowing for a new agreement to begin on July 1, 2024. FISCAL IMPACT Funding is available in the FY 2022-23 budget and funding for subsequent fiscal years will be included in the proposed budgets for City Council consideration. Fiscal Accounting Fund Accounting Unit, Increased Amount Year Unit- Description Account Description Account # FY 22-23 Various- General Fund Miscellaneous $30,000 63001 Operating Expenses FY 23-24 Various - General Fund Miscellaneous $30,000 63001 Operating Expenses EXHIBIT(S) 1. Amendment with Mekong Printing, Inc. Submitted By: Kathryn Downs, FMSA Executive Director Approved By: Kristine Ridge, City Manager EXHIBIT 1 SECOND AMENDMENT TO AGREEMENT WITH MK PRINTING TO PROVIDE OFFSET PRINTING SERVICES THIS SECOND AMENDMENT to the above -referenced agreement is entered into on May 16, 2023, by and between Mekong Printing dba MK Printing, Inc. ("Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. On June 4, 2019, the City and the Consultant entered into Agreement #A-2019-083 ("Agreement), to provide printing and packaging services for the City. The term of the Agreement was set for a three (3) year period with an option to extend the term for two (2), one (1) year renewals. B. The parties entered into a First Amendment to the Agreement (#A-2020-172) on August 18, 2020, to increase the overall compensation to the Agreement. C. The parties opted to extend the Agreement for an additional one-year term on June 22, 2022 (#A-2019-083-01). Accordingly, the Agreement now runs through June 3, 2023, with one remaining option to extend the term by one-year. The Agreement is current and in effect. D. The parties wish to further amend the Agreement to increase the overall compensation to cover expenses for unforeseen large volume printing services incurred during the first extension of the Agreement. E. The parties further wish exercise the second and final option to extend the term of the Agreement, as well as to add an additional 26 days to the second and final extension of the Agreement to run through June 30, 2024. The Parties therefore agree: Section 2.a., Compensation, is amended to increase the annual amount established for the first extension period to the Agreement (#A-2019-083-01) by an additional $30,000 to compensate Consultant for unanticipated large volume printing services performed during the first extension period and is further amended to increase the annual amount established for the second extension period to the Agreement by an additional $30,000. The total amount to be expended during the term of this Agreement shall not exceed $675,000. 2. Section 3, Term, is hereby extended for the optional one-year period and is further extended by an additional 26 days through June 30, 2024. The parties understand this is the second and final extension allowed pursuant to Section 3 of the Agreement and that the annual amount of compensation for this second and final one-year period has now been increased by $30,000, pursuant to the above amendment regarding Section 2.a. of the Agreement. 3. Except as modified by this Second Amendment, all terms and conditions of the Agreement, as amended, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Agreement on the date and year first written above. ATTEST Jennifer L. Hall City Clerk APPROVED AS TO FORM SONIA R. CARVALHO, City Attorney J��athan T. Martinez Assistant City Attorney RECOMMENDED FOR APPROVAL k&"... Kathryn Downs (May 2, 202310:46 PDT) Kathryn Downs, CPA Executive Director Finance and Management Services Agency CITY OF SANTA ANA Kristine Ridge City Manager MK PRINTING, INC. Suzanne Ste ens-Truong VP, Sales & Marketing 2nd Amendment - MK Printing signed Final Audit Report 2023-05-02 Created: 2023-05-02 By: Kristin Andrade (kandrade@santa-ana.org) Status: Signed Transaction ID: CBJCHBCAABAAcJWSrb3Au0OXeN8WcvSHhc4U 7fF24cm "2nd Amendment - MK Printing signed" History Document created by Kristin Andrade (kandrade@santa-ana.org) 2023-05-02 - 4:55:31 PM GMT- IP address: 98.153.69.210 Document emailed to Kathryn Downs (kdowns@santa-ana.org) for signature 2023-05-02 - 4:55:49 PM GMT Email viewed by Kathryn Downs (kdowns@santa-ana.org) 2023-05-02 - 5:46:27 PM GMT- IP address: 98.153.69.210 1 Document e-signed by Kathryn Downs (kdowns@santa-ana.org) Signature Date: 2023-05-02 - 5:46:35 PM GMT - Time Source: server- IP address: 98.153.69.210 Agreement completed. 2023-05-02 - 5:46:35 PM GMT Q Adobe Acrobat Sign