HomeMy WebLinkAboutItem 2g: Purchase of Six Multi-function Copy Machines from Image IVDATE: August 17, 2010
TO: Mayor and City Council
FROM: Hue Quach, Administrative Services Dir ctor
By: Jan Steese, Purchasing Office
SUBJECT: Approve the purchase of six (6) mulfi- function copy machines
from Image IV
Recommendation: Approve
SUMMARY
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STAFF REPORT
Administrative Services Department
The City currently has six (6) copy machines that are in need of replacement due to
frequent break downs and parts not being readily available due to the age of the
machines. The current machines need to be replaced with up to date machines in order
to continue to produce documents needed in a consistent, efficient manner on a daily
basis. The current machines continually experience a high number of service repairs
and due to the age of the machines has made it much more difficult to obtain parts. In
some cases the machine has been inoperable for a week or more. Image IV has done
a great job performing service on these machines and they have scavenged parts from
other clients surplus machines in order to keep our machines operating.
In May 2010, staff began the process of looking into different manufacturers of multi-
function copy machines that would best fit the needs of each of the departments whose
machines were more than 5 years old. Some of the machines researched utilizing other
agencies contracts, also known as "piggybacking" were Xerox, Konica - Minolta, Sharp,
Ricoh and Oce which were similar to the machines currently in service. Piggybacking
on another agencies bid allows the City to adhere to the purchasing policies while
allowing for maximum buying power and tremendous bulk discounts not normally
afforded smaller public agencies. Staff narrowed the search down to three machines
that they felt best fit the needs of the City, Konica - Minolta, Oce and Sharp. Staff is
recommending that the City Council award a contract for six (6) multi- function Konica -
Minolta copy machines. Konica - Minolta has several manufacturers representatives
throughout the Los Angeles County area. The Konica - Minolta authorized dealer for
areas surrounding Arcadia is Image IV in Burbank California.
Mayor and City Council
August 17, 2010
BACKGROUND
The current machines have been in service since 2004 and have been extended
beyond their useful life expectancy. All of the machines being replaced had a life
expectancy of 3 -5 years. These machines are becoming more and more problematic to
maintain, parts are becoming difficult to obtain and service calls are more frequent
hence increasing maintenance costs. The City's current vendor, Image IV has indicated
that it may not be able to support maintenance on these aging machines much longer
due to the parts being unavailable and /or discontinued. At times, the machines have
broken down and could not be operated due to parts availability. In some cases, Image
IV has used spare parts from surplus machines they have in their warehouse in order to
keep our machines in good working condition. Staff has determined that the City of
Arcadia could obtain the best prices available for the purchase of multi- function copiers
utilizing the Los Angeles Unified School District contract.
DISCUSSION
Staff researched contracts with the State of Nevada, Western States Contracting
Alliance and Los Angeles Unified School District. Known as piggybacking, the City of
Arcadia has the opportunity to cooperatively use another agency's bid for like products
and /or services in order to maximize buying power. In some cases, tremendous bulk
discounts not normally available to smaller public agencies can be utilized.
Consequently, staff feels it is in the best interest of the City of Arcadia to take advantage
of the Los Angeles Unified School District contract.
Based on the needs of the department, it was determined that three different printing
speeds were necessary. Machines that could produce at least 75 prints per minute
(ppm) for City Hall and the Police Department Records area, 60 prints per minute (ppm)
for Police Department Detective Bureau, Finance and Recreation and Community
Services and finally a copier that is capable of producing color prints at 36 prints per
minute (ppm) for Development Services Engineering. Based on the needs of the
individual departments the following is the pricing for noted specifications by
manufacturer of the machines:
• 75 ppm machines: ($13,072.36 x 2 machines = $26,144.72)
Konica - Minolta
$13,072.36 /machine
Oce Shar
$13,445.37 /machine $13,838.56 /machine
• 60 ppm machines: $10,476.48 x 3 machines = $31,429.44)
Konica - Minolta Oce Sharp
$10,476.48 /machine $11,425.18 /machine $13,521.71 /machine
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Mayor and City Council
August 17, 2010
• 36 ppm machines: ($7,128.71 x 1 machine)
Konica - Minolta Oce Sharp
$7,128.71 $9,496.78 $6,036.70
If awarded to Image IV the cost for all the copiers listed above is $64,702.87. However,
Image IV has offered the City of Arcadia a trade -in credit of $4,000.00 total for the
existing machines. Staff researched the City's archived records for the surplus costs
received from the City's auction company for previously owned machines sent to
auction and the maximum amount the City has received for any machine was $350 in
2008.
Staff recommends that City Council award a contract to Image IV for the purchase of six
(6) multi- function copy machines for a total cost of $64,702.87 less the trade -in value.
FISCAL IMPACT
Funds have been appropriated in the Equipment Replacement Fund in the 2010 -2011
budget for the purchase of these copy machines.
RECOMMENDATION
Award a contract to Image IV for the purchase of six (6) multi- function copiers for an
amount not to exceed $64,702.87
APPROVED:
Donald Penman, City Manager
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