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APPROVE MOTION TO ENTER INTO A PIGGYBACK PURCHASING AGREEMENT WITH PACIFIC STORAGE COMPANY, PURSUANT TO COUNTY OF FRESNO AGREEMENT NO. 24-104, FOR ON-SITE AND OFF-SITE CONFIDENTIAL DOCUMENT SHREDDING, AND INFORMATION MEDIA DESTRUCTION SERVICES, FOR THE REMAINDER OF THE ORIGINAL TERM, WITH TWO ONE-YEAR EXTENSIONS, THROUGH MARCH 11, 2029, AND A TOTAL NOT TO EXCEED AMOUNT OF $350,000.00
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve the findings pursuant to Stockton Municipal Code Section 3.68.070 supporting an exception to the competitive bidding requirements to utilize County of Fresno Agreement No. 24-104;
2. Authorize the City Manager to execute a piggyback purchasing agreement with Pacific Storage Company for on-site and off-site confidential document shredding and information media destruction services for the remainder of the original term, with two one-year extensions, through March 11, 2029, in a total not to exceed amount of $350,000.00.
It is further recommended that the City Council authorize the City Manager to take all appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
Each City of Stockton department has established document retention requirements for records containing sensitive information. These records may include financial, historical, administrative, and other records subject to applicable retention requirements. Depending on the type of record, certain documents may be required to be retained for several years.
Failure to retain records in accordance with applicable retention requirements may result in audit findings, reduced transparency, and increased legal and operational risk, particularly if records are later required for public records requests, audits, investigations, litigation, or other official purposes.
DISCUSSION
Background
The City’s departments maintain records retention schedules that establish how long physical and electronic records must be retained before they may be disposed of. Retention requirements vary based on the type of record and may include specific retention periods and disposition requirements.
Examples of records with a five (5)-year retention period include 1099s, 1096s, DE 542 forms, check registers, developer trust account records, and fixed asset auction records. Certain records, including investment records, Finance Action Orders/Budget Adjustments, variance analyses, and bond records, have retention requirements of ten (10) years or more. The Police Department also maintains retention requirements for records such as accident, incident, graffiti, vandalism, and injury reports, which may have a two (2)-year retention period.
The City of Stockton's records retention and disposal practices are governed by applicable federal, state, and local requirements, including California Government Code Section 34090, which addresses the destruction or disposal of certain City records.
Records must be retained in accordance with applicable retention requirements. Premature destruction or disposal of records may create compliance, audit, operational, and legal risks for the City. Depending on the circumstances, the absence of records may also affect the City's ability to respond to public records requests, audits, investigations, litigation, or other official proceedings.
Proper records retention provides a consistent process for preserving records for the required period and supports the City's obligations for accountability, transparency, and legal compliance.
Present Situation
The City of Stockton has utilized document storage services provided by Pacific Storage Company for more than ten years. The City currently has more than 8,500 boxes of records stored at Pacific Storage Company’s warehouses.
City staff estimate that retrieving the approximately 8,500 boxes would cost more than $51,000, based on Pacific Storage Company’s current charge of $6 per box for retrieval from storage. Additional costs may apply for transportation, handling, and storage with another provider.
Due to the volume of records currently in storage, relocating the records to another storage provider would also require significant administrative coordination and tracking to ensure records are properly accounted for and maintained throughout the transition. A large-scale relocation could increase the risk of records being misplaced, damaged, or otherwise becoming difficult to locate, which could affect the City’s ability to comply with applicable records retention requirements and respond to public records requests, audits, litigation, or other official needs.
Continuing to utilize the existing storage arrangement provides the City with continuity of service and avoids the immediate costs and administrative burden associated with relocating the City's existing records inventory.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, the Council may approve findings supporting an exception to the competitive bidding requirements when applicable criteria are met. The following finding supports the proposed use of the County of Fresno Agreement:
1. The County of Fresno Agreement was competitively procured and provides a piggyback purchasing mechanism that allows participating public agencies to obtain goods and services under established terms and conditions.
2. Utilization of the County of Fresno Agreement is in the best interest of the City because the platform provides access to on-site and off-site confidential document shredding, information media destruction, and document storage services without requiring the City to conduct a separate competitive procurement process.
3. The County of Fresno Agreement provides an efficient and cost-effective means of obtaining the required document shredding, information media destruction, and storage services while maintaining continuity of service and avoiding the administrative costs and potential disruption associated with transitioning the City’s existing records inventory to a new service provider.
Based on these findings, the proposed use of the County of Fresno Agreement is consistent with the City's procurement requirements and applicable piggyback purchasing authority.
FINANCIAL SUMMARY
The proposed agreement establishes a total not-to-exceed amount of $350,000.00 over a two-and-one-half (2 1/2)-year term. Expenditures will be based on actual shredding, information media destruction, document retrieval, and storage needs and will be charged to the appropriate department accounts.
Current funding is available within department budgets. Future funding will be requested and appropriated through the City's annual department budget process.
Attachment A - Pacific Storage Piggyback Agreement