17-0321_CERTIFIED RECORDS MANAGEMENT_Correspondnece3/21/2017
March 20, 2017
Hon. Kerry K. Ferguson, Mayor
Han. Sergio Farias, Mayor Pro Tern
Hon. Brian L. Maryott
Han. Pam Patterson, Esq.
Han. Derek Reeve
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Dear Mayor Ferguson and Members of the City Council:
Smart Storage Solutions®
l am writing to protest a recent City contract award for records storage services to the City's
current vendor, Certified Records Management (CRM). CRM was chosen in an RFP process that
included our company, Storetrieve LLC, as well as two other vendors. The decision criteria,
according to the notice received on Thursday March 161
\ were "lowest price" and "level of
service". The monthly cost di fference was $3.50.
I wish to bring to the City Council 's attention all facts and financial impacts to the City which
have not been properly submitted or reported to the City Council and they are as follows:
Storetrieve originally approached the City asking them to piggyback Storetrieve's 10 year plus
agreement with the City of Los Angeles, which had been awarded in 2016 .
Based on the price comparison being submitted to you today, I have attached Exhibit A which
shows the financial impact and savings this piggyback program would have saved the City over
10 years.
NOTE: We were told this program was turned down because the City of San Juan Capistrano had
discovered they would owe their current vendor Certified Records Management a permanent
removal fee of $3.66 per cubic foot, resulting in a hostage fee of $11,251. This "perm out"
charge is applied when a customer decides to switch vendors for better price or service.
Storetrieve LLC, does NOT charge a "perm out" fee because we believe this is an unfair charge
meant only to keep customers hostage by making it prohibitively expensive to change vendors.
Bet:ause of this, Lhe City was not able to piggyback the City of Los Angd<.:s storage progr·am with
Storetrieve where no Pennanenl Re moval charges are allowed on the contract.
1 Storetrieve, LLC 11150 S. Taylor Ave Montebello, CA 90640 110750 7'" SL Rancho Cucamonga, CA 91730 1
1 Tel: 800-541-2480 1 Fax: 323-726-9971 1 www.storetrieve.net 1 A member of the 2-20famity of companies 1
E8
Smart Storage Solutions®
currently has the City at an $11,251 perm-out obligation should they decided to switch
vendors. This obligation will grow each time a box is sent to C RM, eventually accruing an
additional $6,588 in perm out obligation, for a total of $17,839 by year ten.
Nowhere does anybody put in front ofthe City Council the total financial obliga tion to lhe C ity of
thi s pe rman e nt rem o va l charge from CRM. This was not figured into the costs of the vendors and
as such represents an invalid consideration.
To our next point, Storetrieve proposed to reimburse the City for its current $11,251 obligation
and carry that cost for the ten years of the contract until it was reduced to $3 ,152 at the end of the
term, saving the City $8,100 while not accruing any perm-out charges on new boxes added ...
ever. This is the "Non Piggyback" program that we originally proposed and which was rejected.
Exhibit B attached shows what the true savings are to the City utilizing the City of Los Angeles
Storetrieve piggyback pricing program . As you 'll see, the Storetrieve piggyback program costs are
much lower.
Please see Exhibit C which shows the total cost to the City of San Juan Capistrano of using
Storetrieve versus CRM. When taking into account the very punitive perm-out obligation imposed
by CRM, Storetrieve becomes the much more economical vendor.
I wish to speak to the City Council tomorrow, March 21 st, to provide some additional numbers
that outline the true costs to the City for its decision to retain its current vendor.
Regarding our level of service, we would just ask that the City contact some of our customers,
including the City of Los Angeles ( 10 year contract), the City of Cypress , the County of San
Bernardino, tht: Metropolitan Water District, Southern California Edison and hundreds more.
This is not a case of a vendor with "sour grapes". We are an ethical company with no hidden
charges that believes in full disclosure. The City of Los Angeles chose us because of our
presentation uncovering the true c osts of sticking with their current vendor. We wish to present
these same facts to you tomorrow.
Very Truly Yours,
Keith Wasnok I Acc ount lHanag!!r I Storctl'ieve, LLC
Cell : 909-568-77661 Office : 323-889-57611 kwasnok@ t re tr icve.nct I www.s tot·c.tl'ic v e.nct
Smart Storage Solntion s(il,)
1 Storetrieve, LLC 11150 S. Taylor Ave . Montebello, CA 90640110750 7'" St . Rancho Cucamonga, CA 91730 I
1 To I: 800-541 ·2480 1 Fax: 323 726 9971 1 www.storotrievo .nell A member of the 2-20 family of companies I
Smart Storage Solutions®
EXHIBIT A-CITY OF SAN JUAN CAPISTRANO
WITH CITY OF LOS ANGELES PIGGYBACK PRICING
10 YEAR SAVINGS
2017 Requesl. far Ptopoiill' S , 1 Off·Site ~tcords S•or•s Price comp•rl• TORE f.R I '\ E CITY OF
LA P IG llACK
Certified Records PRICING Penn Records
R.OUTINf SfRVIC£: CHARGES Storctriewe ManiiOm(H'\l
~~~~on==•h~t~~B~o~·~~~~w~·~c~•~l5~"~"~"~"~d~>·~···~'-----t~------------~~~~------------~~~bo~·------------$013 ~"'~------------~50~18~1
~~~<1J~·~·,~~~~~~·c~l~•le~S~o~x--------------~~~------------~~~!~------------~~~~------------$150 ~b~o~·-----------.~S~~~~~I
Transportation Handling Per Box $1 SO S:O 'Ci
l.'i"tSu ~)•ltf'f1Wt1' ... (~1
• ..o~b,~"' loth ~~~·
h -l,..lt4.kor""" S1l-j i
~T~up~{.~~~·~·~~·~·N~c~'~'~O~~-------------f~------------~~~~------~~~~~--~~"~P----------~$S_o_o-r~l~np~----------~~~·~·~~•j
Invoice Total Estimate $504 .50 ! $689.10!
OTIIER FEES ,\NO CONDITIONS FOR CONSIDERATION
SERVICE CHARGES i I I l ~g~~==·~~~·'"'~·~n~·~~·=•as~N~•N~Bo=•~~~-----f!'~'--------------~5~1.~7o~l~b=o'~----------~51~.=•o7i~oo~·-----------$000 ~~=~oo~x~============~so~9~S,
I ~366 j 1 $.60 per box ,j $3 3Sj
jbo) ""~~~:., .... ....a~ u. ... ~ ~· r,.l box Sot 6J r bo-includes Retrieval Charge <4) bo..: Pl..,s 9.~1 ,,('_., . .,1 (1\~'1'.~" S ~ i!OI
$10 trio
$119 00 1 ~np
so 251 tube
~M~A~P~S~/O~D~D~S~I ~ZE~D~D~O~C~U~M~E~N~T~S---;----------f----------l~--------------f--------------1
IJnon Map lubes h •ac ~lUO I <ube 0.20 1 tube 0.181
$0 lO I tubt.>
so l6 i ,,
t
; 50 oo : $0.(10, $000, $900,
I so.oo l so .oa! so ool $9 oo! i I so.oo1
INITIAL TRANsFER i 1 1:--------=:.:=r----)0 OOj
SOOO j
5000 ! so 00
sooo!
I
On ,ue hotmln£ o:f"..et ft"H I $0 oo ~'---------------:;.:..;"'1------------------"s"'o "'oo~l --,:-----------------~~~~-----------· r
MISCELLANEOUS
Other ~ees or Cond1tio~s {frJf\<jpOrtdt;cn
t fon~Ji rtJ ~;Ir~t:a.1 O,.,'fl)
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!p~~~~:r~7;s~r:~:~~::~n~te ! S~ 00 rwr ~:n~r~~n 1 )'P.drs of
I at dPpH!'Ctated (OSI dcpoMOms on !
$000t PfldoJtOGU.s.cL f
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, .rKrea~ 1r. amounr not to @:rce~d 1 \l'<ll '<cd fnt y;o~r • $.1! $0 pe· m0>1th '
I 3-)o per~ar I uft.:r! •Hyeo~r ~
Ab~ tO pr0<w1Ct> fl'l~ur<ll\(.t> 011
r~u1rPd Hllhe igrel"ml."nl
! A.o!e ·.o prov<O~ J,m•tk'd insyr:tN.J Abll' 10 pTCii•de 1n1ouran<~· a~ !f.b~e [0 [.ltcv;ce l"~u·an..:~ a~ r4!.quir.:-J
~ covt>~il&€ ! rP.QuH~ nt~.'l&reemef'.f ! n tf\(~ il611tt'rn('~: !
~~~~-·~·~·<~•---------------------"·------------------~ ! I I
lfthe City of San Juan Capistrano had elected to utilize Storetrieve's City ofLos Angeles
piggyback pricing contract, the City would have saved:
$137.80 per month ... $1,653.60 per year ... $16,536 over the ten year contract
And could have paid for the $11,251 . CRM perm-out charge, resulting in net 10 year savings of
$5,285, PLUS wou ld have eliminated perm-o ut charges fo rever
1 Storetrieve, LLC 11150 S Taylor Ave , Montebello, CA 90640 110750 71h St . Rancho Cucamonga, CA 91730 1
1 Tel : 800·541·2480 1 Fax: 323-726-9971 1 www.storetrieve.ilell A member of lhe 2·20 family of companies 1
Smart Storage Solutions®
EXHIBIT B -STORETRIEVE'S CITY OF LOS ANGELES PIGGYBACK CONTRACT
PRICING SCHEDULE
All Consultants must use tl1is schedule 'Ntlen submitting final Proposal. Separately
include pricing for all services available.
Response Code:
C = Currentty providing this service to ott1er Clients .
M = Plan to provide this service to Cit>;/ of San Juan Capistrano. if requested .
D = Unal)le to provide tjlis seNice.
PleJse c1·1eck your calculutions before submitting your Proposal; the City 'Will not be
responsil1le for Consultant's misculculations.
1 Unless otherwise specified, boxes are standard records slorag-. bo):es [I 2 cubic leet)
1 Storelrieve, LLC 11150 S. Taylor Ave. Montebello, CA 90640 110750 71h St. Rancho Cucamonga, CA 91730 1
1 Tel: 800-541-2480 1 Fax: 323-726-9971 1 www.storetrieve.nel 1 A member of the 2-20 family of companies I
ITEM
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Smart Storage Solutions ®
EXHIBIT C-TRUE COSTS FOR THE CITY OF SAN JUAN CAPISTRANO OF USING CRM vs STORETRIEVE
CRM INVOICE TOTAL ESTIMATES
CRM PERM-OUT NO DBLIGA TION
STORETRIEVE INVOICE TOTAL ESTifiMTES (Non Plgayback)-RFP PRICES
STORETRIEVE PERM-OUT NET OBLIGATION
STORETRIEVE INVOICE TOTAL ESTIMATES !Piuyback)· CITY OF L.A. PRICES
STORETRIEVE PERM-OUT NET OBLIGATION
$20,000.00
$18,000.00
$16,000.00
$14,000.00
$12,000 .00
$10,000.00
$8,000.00
$6,000.00
$4,000.00
$2,000.00
$-
2 3
VE.AR 1 VEAR2 YEAR3 VEAR4 YEARS YEAR6
$ 7,707,60 $ 7,707 60 $ 7,70760 $ 7,707 60 $ 7,707~60 $ 7,707.60
$11,25100 $11,909.80 $ 12,568.60 $13,227 40 s 13,886 20 $ 14,545.00
s 7,749.60 $ 7,749 60 7,749 60 7,749 60 7,749.60 7,749.60
$ $
$ 6,054 00 $ 6,054 00 6,051:100 6,054 00 6,054 00 6,054.00
$ $
.--'
4 5 6 7 8 9 10
Total Cost+ Perm Out
VEAR7 YEARS VEAR9 YEAR 10 lOYear Obligation
$ 7,707 60 $ 7,707.60 7,707 60 $ 7,707.60 77,076.00
$ 15,203 80 $ 15,862,60 16,521.40 $ 17,180.20 17,180,20
7,749.60 7,749.60 7,749,60 $ 7,749 60 77,496.00
3,152,00
6,054 00 6,054 00 6,054.00 6,054 00 60,540 00
I
NOTE: The CRM and '>TOHCI RIFV< i! >\i 'i; ~' •N
Pi';' ;'{U,•'• v graph lines overlap since they were only
different by $3.50 per month
--CRM
--CRM PERM OUT OBLIGATION
-··----STORETRIEVE COSTS NON-PIGGYBACK
--STORETRIEVE COSTS PIGGYBACK
94,256.20
80,648 00
60,540 00
1 Slorelrieve, LLC 11150 S~ Taylor Ave Montebello, CA 90640 110750 th St Rancho Cucamonga, CA 91730 1
1 Tel: 800-541-2480 1 Fax: 323-726-9971 1 www .storotriovo.nell A member of the 2-20 ramify of companies I