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HomeMy WebLinkAboutItem 1k - Purchase of eight (8) Konica-Minolta multi-function copy machines DATE: December 19, 2017 TO: Honorable Mayor and City Council FROM: Hue Quach, Administrative Services Director By: Vanina Rynkiewicz, Buyer SUBJECT: PURCHASE OF EIGHT (8) KONICA-MINOLTA MULTI-FUNCTION COPY MACHINES FROM IMAGE IV SYSTEMS, INC. IN THE AMOUNT OF $38,900 Recommendation: Approve SUMMARY The City currently has eight (8) copy machines that have reached and surpassed the end of their useful life expectancy. The average life span of copiers proposed for replacement is approximately 7 years, with six (6) machines purchased in 2010 and two in 2012. They are all in need of replacement due to the frequent service calls, in addition to difficulty of finding repair parts easily. It is recommended that the City Council authorize the purchase of eight (8) Konica-Minolta multi-function copy machines from Image IV Systems, Inc. totaling $38,900. DISCUSSION The Fiscal Year 2017-18 Equipment Replacement Fund provides for the replacement of eight (8) multi-function copy machines. Multi-function machines are an all-in-one machine that functions as a copier, printer, and scanner with both color and black and white options. The current machines proposed for replacement have exceeded their typical equipment life span, with the average age of 7 years. These machines are located at the Police Department, City Clerk Office, Development Services Engineering Office, Finance Office, Public Works Warehouse, and Fire Administration Office. Service calls for these machines are becoming more frequent and more problematic to service as parts are becoming more difficult to find. The City’s current vendor, Image IV Systems, Inc., has indicated that they may not be able to provide support for these aging machines much longer due to limited availability of parts. Purchase of Eight (8) Multi-Function Copy Machines December 19, 2017 Page 2 of 3 Different purchasing options were explored for purchasing the needed equipment, such as utilizing the California Multiple Award Schedules (“CMAS”), National Intergovernmental Purchasing Alliance (“National IPA”), and other agencies’ contracts, also known as “piggybacking”. The use of these contracts allow Arcadia the maximum buying power and greater bulk discounts not normally afforded to smaller public agencies. The California Government Code authorizes public agencies to participate in cooperative purchasing agreements such as the ones noted, while remaining within the City’s adopted purchasing rules and procedures. By utilizing a cooperative purchasing program, the City is able to streamline the procurement process and purchase the equipment at a lower cost than traditional competitive bidding. To ensure that the City would receive the best price that is available, Staff solicited informal quotes from various vendors and determined that the City could obtain the best price by utilizing the Glendale Unified School District Contract Number P#12/13-14. Staff narrowed the search down to four (4) manufacturers that best fit the needs of the City: Konica-Minolta, Ricoh, Canon, and Sharp. The option of leasing these copiers was also considered. All vendors proposed a five (5) year lease option; however, leasing total costs came out higher by an average of 15% than the outright purchase price of these machines. Due to the significant differences and savings, through purchasing outright, the leasing option is not recommended at this time. Staff’s analysis also took into consideration of the maintenance cost that the City can expect over the next five (5) years based on the historical usage data of those machines. The maintenance cost for the copiers includes all service calls, parts, labor, toners, developers, and staples. A summary including the total purchase price and the average maintenance cost over a five (5) year period are presented in the table below: Vendor Total Purchase Price Average 5 years Maintenance Cost Total Estimated Cost for 5 years Image IV Systems, Inc. $38,810 $34,071 $72,881 Canon Solutions $37,926 $37,145 $75,071 Sharp Business Systems $45,301 $34,086 $79,387 Ricoh USA $53,820 $39,195 $93,015 All the proposals submitted meet the City’s specifications. All vendors proposed to install, network, train, and dispose of the old equipment. Image IV System, Inc. was the only vendor that offered a $50.00 trade-in credit for the old machines. Due to the low Purchase of Eight (8) Multi-Function Copy Machines December 19, 2017 Page 2 of 3 residual value that is offered, these machines will be sent to auction where sales proceeds are expected to yield significantly higher receipts. The proposal submitted by Image IV Systems, Inc. provided the lowest cost option when incorporating the estimated 5-year maintenance cost and Image IV Systems, Inc. has proven to provide excellent service over the years. It is therefore, recommended that the City Council authorize the purchase of multi-function copiers from Image IV Systems, Inc. ENVIRONMENTAL IMPACT The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT The total purchase price of eight (8) multi-function copiers is $38,810. This amount has been budgeted in the FY 2017-18 Equipment Replacement Fund Budget. RECOMMENDATION It is recommended that the City Council approve the purchase of eight (8) Konica- Minolta multi-function copy machines from Image IV Systems, Inc. in the amount of $38,900.