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17-0321_CERTIFIED RECORDS MANAGEMENT_City Attorney Letter to Storetrieve Indian Wells 09 111& Riverside (760)568-2611 (951)686-1450 Irvine BEST BEST & KRIEGElft Sacramento r (949)263-2600 ATTORNEYS AT LAW (913)325-4000 Los Angeles Walnut Creek (213)617-8100 (925)977-3300 Ontario 655 West Broadway, 15t"Floor,San Diego,CA 92101 Washington,DC (909)989-8584 Phone: (619)525-1300 1 Fax: (619)233-6118 1 www.bbkiaw-com (202)785-0600 Victoria Hester (619)525-1365 victoria.hester@bbklaw,com File No. 61147.00115 March 21, 2017 VIA EMAIL [KWASN0K*ST0RETRIEVE.NET] Keith Wasnok Account Manager Storetrieve, LLC 1150 S. Taylor Ave. Montebello, CA 90640 Re: Records Storage RFP Protest Letter Dear Mr. Wasnok: This firm serves as City Attorney for the City of San Juan Capistrano. The City has received your protest letter dated March 20, 2017, challenging the City's recommended contract award for records storage services to the City's current vendor, Certified Records Management ("CRM"). As you know, the Request for Proposals ("RFP") process provides the City with discretion to select a provider based on several criteria. These include not only pricing and qualifications, but also level of service, future charges, and the provider's length of time providing services. As explained. in the March 21, 2017 City Council Agenda Report recommending the contract award, City staffs recommendation to select CRM is based on CRM's qualifications, experience, and the level of services CRM has provided to the City in the last three years. CRM also happened to be the lowest fee proposer. Your protest letter references Storetrieve's previous offer for the City to utilize Storetrieve's City of Los Angeles piggyback pricing contract. We understand that the prices included in the piggybacking contract were submitted in response to the City's first UP for records storage, issued back in 2015. However, the proposal submitted by Storetrieve in response to the City's 2017 RFP included a different pricing structure. The statements in your letter regarding possible savings to the City are not consistent with your 2017 proposal. Your statement that the City is subject to "hostage fees" for the removal of current records is incorrect. The 2017 RFP expressly states that "[s]hould the City award the proposal to a new Provider, the Provider agrees to relocate all records and miscellaneous items from current off-site facility to new location at no charge. Provider agrees to pay any permanent removal fees from existing storage vendor." (2017 RFP for Records Storage, Retrieval and Destruction 61147.00115\29652385.1 09Ilk BEST BEST & KMEGER ATTORNEYS AT LAW Keith Wasnok March 21, 2017 Page 2 Services, Section A(15).) Therefore, the City would not be subject to permanent removal fees if the City decided to switch vendors. Furthermore, although your letter states that Storetrieve would save the City money by reimbursing the City for its "perm-out obligation," Storetrieve's prices are fixed for only three years, at which point the prices increase subject to the Consumer Price Index ("CPI"), up to 3% per year. The other providers who responded to the City's RFP (including CRM) do not charge this 3% CPI increase. City staff remains confident in its recommendation. You are of course welcome to share your thoughts with Council at the meeting this evening. Sincerely, Victoria Hester for BEST BEST& KRIEGER LLP City Attorney City of San Juan Capistrano 61147.00115\296523&5.1