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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 Page 1 of 3 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 Page 2 of 3 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 Page 3 of 3