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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 $0 oo ~'---------------:;.:..;"'1------------------"s"'o "'oo~l --,:-----------------~~~~-----------· r MISCELLANEOUS Other ~ees or Cond1tio~s {frJf\<jpOrtdt;cn t fon~Ji rtJ ~;Ir~t:a.1 O,.,'fl) ! I i so .oo j ns ! 't-<N•$,'Kd 1 ilOnfi\SI'k.Dtrnnoutpj.G.r.t , f !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 j Pr.:-e!o f1tt>tl r01 )h monlh~; CP! J Mo"tll!t SPrv i~r-rNr&f' '(If lnvciclr,E-' , .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 Al A2 Bl 82 Cl C2 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