ADMINISTRATIVE REPORT

RTS No. 04112
CC File No. 1805
Meeting Date: April 20, 2004

TO:

Vancouver City Council

FROM:

City Clerk

SUBJECT:

Renewal of Contract for Corporate Records Storage and Retrieval Services

 

RECOMMENDATION

CITY MANAGER'S COMMENTS

The City Manager RECOMMENDS approval of the above.

COUNCIL POLICY

In 2001 Council approved a three-year contract (with a provision for extension after the 3-year term) with Iron Mountain based on best value to the City.

PURPOSE

The purpose of this report is to seek Council authorization to extend the contract for storage and retrieval of the City's semi-active records with Iron Mountain from May 15, 2004 to May 14, 2009.

BACKGROUND

In 2001 Council approved establishment of a service contract with Iron Mountain for the storage and retrieval of semi-active records of all City departments. This program is managed by City Clerk's Corporate Records and Information program and provides a variety of records centre services [off-site transfer, storage, retrieval, courier transport and delivery, and disposal]. These services are an on-going requirement of City departments.

A three-year contract was awarded as result of a Request for Proposal and competitive bidding. The records were re-located to Iron Mountain's main records centre in Coquitlam and services have been provided since 2001. The contract was approved at $53,500 annually based on volume of records and retrieval frequencies in 2001. Usage rates have grown since then due to expanded use of the services by departments and increases in City operations, such that in 2003 the actual costs were $69,549. The contract expires on May 15, 2004 and has a provision for extension which we now propose to exercise.

DISCUSSION

Provision of storage, retrieval, and associated services is managed by City Clerk's Department and is essential to the Corporate-wide records management program. The service offers cost-effective storage of records that are still required by departments, but not referenced often enough to be retained in high-cost and spaced-limited office areas.

The proposal to renew this contract with Iron Mountain includes these features:

Iron Mountain has responded in a timely and service-oriented fashion during the contract. City use of this service has increased as both storage volume and service frequencies have risen. Since 2001, the amount of records stored has increased 11%, requests and re-files have risen by 30%, and transfers to the City Archives have doubled. These increases have resulted in higher annual contract costs.

Annual Records Centre Contract Costs

Year

Budget

Cost

  

2001

$36,300

$25,812

6 mos. Service in start-up year

2002

$53,500

$61,733

  

2003

$53,500

$69,549

  

This increased use is an indication of the program's success and represents cost and risk avoidance for the City. On-going costs are minimized by batching retrieval requests and delivery actions, transferring records directly from Departments to City Archives whenever possible, and ensuring that all boxes transferred to Iron Mountain have an approved disposal date. Utilization of City duty drivers rather than Iron Mountain couriers, a central delivery point in City Hall [Microfilm Lab], and bulk orders for new storage boxes all help to keep this an economical service.

On the basis of minimal price increases and compliance with the storage and security requirements, it is recommended that the contract with Iron Mountain be extended for a five-year period. Other options, including re-tendering the service, were considered but were discounted because they would involve costs for box removal and transportation, staff time to verify inventory and monitor transfer, and temporary staff to maintain daily retrievals and deliveries during the change-over.

The decision to extend this contract also gives the City time to implement the Corporate Records Standards Project (approved by Council in November 2003) with stable storage and retrieval services, assess continuing service volume requirements, and explore long-term alternatives. Contract performance is closely monitored and the City can remove its boxes if there is non-performance or non-compliance.

PERSONNEL IMPLICATIONS

There are no staff or human resource implications.

FINANCIAL IMPLICATIONS

There have been no price increases during the three years of this contract. A cost-effective proposal for renewal with modest fee increases has been negotiated with the current vendor. The proposed increases are 3% for storage and retrieval and 4% for transportation and courier fees and will not increase again until May 2007. This is equivalent to an annual increase at 1% and 1.3% respectively and is reasonable when compared to the January 2004 consumer price index of 1.2%. There is no significant change to the favourable terms for permanent removal of boxes in case the City terminates the contract.

The proposed increases of 3% for storage and retrieval services and 4% for transportation and courier fees start on the May 15, 2004 renewal date and cover the first three-years [2004-2007]. During that time there are no increases. At the start of the fourth year [May 2007] there is a second stage of increases at the same rate, 3% for storage and retrieval services and 4% for transportation and courier. This second stage covers the last two years of the contract [May 2007 - May 2009].

A typical monthly bill based on current storage and service volumes and retrieval rates illustrates the financial impact:

 

2003-2004

2004-2007

2007-2009

Typical Monthly Bill

$6,000

$6,185

$6,376

Storage

$3,200

$3,296

$3,395

Service

$1,800

$1,854

$1,910

Transportation

$400

$416

$433

Tax

$600

$619

$638

The contract's five-year extension minimizes the financial impact on the City and provides quality services at an economical cost. The source of funds for 2004 will be $53,500 from the City Clerk's Department's 2004 Operating Budget and $22,000 from the Contingency Reserve. From 2004 to mid-2009, the projected annual cost of this contract averages $87,454. Costs of the current year and the estimated annual costs to 2009 are shown here:

Year

Cost

  

2004

$75,500

Rate of growth starts to decrease.

2005

$83,500

Price increases & impact of records inventory.

2006

$88,000

  

2007

$92,000

  

2008

$95,000

  

2009

$47,000

Six months of service.

     

Projected Total

$481,000

  

These increases are due to projected expansions of service usage by departments, increased storage volumes, and destruction costs for records no longer required for operational or legal requirements. Given that these are estimates, actual usage will be reviewed during the annual budget process.

Another factor in these increases is the Corporate Records Standards Project. The City-wide records inventory that is part of this project will identify additional records that should be transferred off-site for interim storage and disposition. However, the rate of increase of service volumes has already started to decline and is projected to flatten by the end of this recommended extension.

CONCLUSION

Extension of this contract will provide the City with storage and retrieval service for its semi-active records. These records are required for a variety of purposes: standard in-house business inquiries, high-profile service transactions for citizens, Freedom of Information requests, litigation, historical research, and post-disaster resumption of business. Adequate security, protection of City records, rapid retrieval and delivery, minimal costs, and continuity and stability of service are the hallmarks of a records centre program.

Extending this current contract with Iron Mountain provides the City with all these services in a cost-effective, stable, and reliable manner.

* * * * *

ag20040420.htm

Comments or questions? Send us e-mail at info@city.vancouver.bc.ca
© 2002 City of Vancouver