Laserfiche WebLink
W A T E R E N E R G Y L I F E <br />RIVERSIDE PUBLIC UTILITIES <br />P <br />UB LIC UTILITIES Board Memorandum <br />BOARD OF PUBLIC UTILITIES DATE: JULY 10, 2023 <br />SUBJECT: RATIFICATION OF EMERGENCY PURCHASE ORDER NO. 234433 WITH FPC <br />GRAPHICS AND INCREASE TOTAL PURCHASE ORDER AMOUNT TO <br />$103,422.30 <br />ISSUE: <br />Consider approval of the ratification of emergency Purchase Order No. 234433 in the amount of <br />$24,000 with FPC Graphics and increase the total purchase order amount to $103,422.30. <br />RECOMMENDATION: <br />That the Board of Public Utilities ratify emergency Purchase Order No. 234433 in the amount of <br />$24,000 with FPC Graphics and increase the total purchase order amount to $103,422.30. <br />BACKGROUND: <br />The Billing Division of the Riverside Public Utilities (RPU) Department manages the billing for <br />electric, water, sewer, and solid waste services for RPU customers. Approximately 110,000 <br />accounts are billed each month requiring paper invoices to be mailed out to customers. On a <br />monthly basis RPU processes pre-printed, two-sided billing paper for all billings and past due <br />notices. <br />DISCUSSION: <br />FPC Graphics was the awarded vendor of Bid No. 7796, for a term of five years ending June 30, <br />2025. Purchase Order (PO) No. 231996 in the amount of $79,422.30 was issued for FY 22/23. <br />FPC notified RPU of upcoming price increases due to inflation and the increase of paper stock <br />prices which has driven the price of paper upwards of 40%. The current purchase order does not <br />have sufficient funds for the June billing cycle. To avoid billing delays the short-term solution was <br />to issue an emergency PO of $24,000 to FPC Graphics, the Business Systems Division current <br />vendor. FPC provided RPU with CPI increase of 33% for Fiscal Year 2023/24, which was <br />approved by the Board on June 12, 2023, and they have satisfactorily served the City for the last <br />two years. <br />Per Purchasing Resolution 23914, "Modifications to a Purchase Order shall be made only by <br />Change Order. Unless otherwise specifically authorized by the Awarding Entity, Change Orders <br />which cumulatively exceed the following will require Awarding Entity approval... c) 10% of the <br />