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HomeMy WebLinkAbout(0042) M&C 21-0307City of Fort Worth, Texas Mayor and Council Communication DATE: 04/20/21 M&C FILE NUMBER: M&C 21-0307 LOG NAME: 84OVERDRIVE AMENDMENT 2021 SUBJECT (ALL) Ratify Expenditures in the Amount Up to $130,500.00 and Authorize Amendment to Sole Source Agreement with OverDrive, Inc. to Increase the Annual Amount by $500,000.00 for a New Annual Spend Amount Up to $1,650,000.00 for Electronic Books, Audiobooks, Magazines, Video, and Related Services for the Library Department RECOMMENDATION: It is recommended that the City Council: 1. Ratify expenditures in the amount up to $130,500.00 incurred by the City of Fort Worth through April 20, 2021 for the purchase of electronic books, audiobooks, magazines, video and related services for the Library Department necessary for service to the public; and 2. Authorize an amendment to the sole source agreement with OverDrive, Inc., to increase the annual amount by $500,000.00 for a new annual spend amount up to $1,650,000.00 for the purchase of electronic books, audiobooks, magazines, video and related services for the Library Department. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to ratify expenditures in the amount up to $130,500.00 and authorize an amendment to the sole source agreement with OverDrive, Inc. to increase the annual amount by $500,000.00 for a new annual spend amount up to $1,650,000.00. On May 7, 2019, M&C C-29113 was approved to increase the annual amount to $1,150,000.00 based on anticipated use of the service at that time. In 2020, the Library Department closed its buildings due to COVID-19 restrictions, resulting in a significant increase in demand for electronic downloadable materials. In response to that demand, the Library increased purchases of materials on this digital platform. In FY2020, Fort Worth residents borrowed over 856,000 e-books, e-audiobooks, and streaming videos. This represents an unprecedented increase of 53% between FY2018 and FY2020. Electronic materials comprised 32% of total FY2020 circulation. Consequently, the current authorized amount for this contract has been depleted faster than anticipated and an increase in spending authority is needed for the Library to keep pace with the increased customer demand for these materials. The additional funds for OverDrive materials will be reallocated from existing appropriated budgets by reducing expenditures on other less -popular formats. Because OverDrive, Inc. is the only e-book vendor that provides the popular Kindle format to libraries, as well as access to other popular titles and series, it is a sole source vendor pursuant to Texas Government Code 252.022(7). A procurement from a vendor that is subject to section 252.022(7) of the Local Government Code is exempt from competitive bidding. PRICE ANALYSIS - The anticipated annual spend for these services are projected to increase based on customer use each year. The annual spending authority requested through this M&C is expected to be sufficient to address increased demand through the end of the current contract in 2022. Actual spending will be made in accordance with the annual budget. No guarantee was made that a specific amount of these products or services would be purchased. The Library Department certifies that the prices are fair and reasonable. M/WBE OFFICE - OverDrive, Inc. is the documented sole source vendor for these services. A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the Business Equity Division, in accordance with the BDE Ordinance, because the MBE/SBE is based on the sole -source information provided to the Business Equity Division by the managing Department's project manager. ADMINISTRATIVE CHANGE ORDER - An administrative change order or increase may be made by the City Manager up to the amount allowed by relevant law and the Fort Worth City Code and does not require specific City Council approval as long as sufficient funds have been appropriated. AGREEMENT TERM - Upon City Council's approval, this amendment will be effective on April 20, 2021 and expire along with the agreement on June 30, 2022. The agreement is in its last two-year renewal term. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that funds are available in the current operating budget, as previously appropriated, in the General Fund to support the approval of the above recommendations and authorization of the amendment. Prior to any expenditure being incurred, the Fort Worth Public Library Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office by. Dana Burghdoff 8018 Originating Business Unit Head: Manya Shorr 7706 Additional Information Contact: Marilyn Marvin 7708 Expedited