PREPARED BY: J. KELLY SESSIONS DATE OF MEETING: 09/04/18
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO RATIFYING THE LEASE AND FULL-SERVICE MAINTENANCE AGREEMENT WITH ECLIPSE OFFICE TECHNOLOGY TO LEASE NINE MULTI-FUNCTION COPIER/PRINTERS AT AN APPROXIMATE 5-YEAR TOTAL COST OF $277,200
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
Replace Xerox Colorcube Multifunction Printers with Move to New City Hall is an adopted policy item under the Infrastructure policy area of the FY 2018-21 City Council Priority Workplan, effective November 1, 2017.
CEQA Compliance Statement
This is not a project as defined by CEQA.
BACKGROUND
The City utilizes Xerox Colorcube Multifunction Printers as the backbone of its printing and copying needs for all network computers and office business. The City’s five-year lease of the Xerox Colorcube Multifunction Printers expired in December 2015, and the City has leasing the printers on a monthly basis ever since.
At over five years old, the printers had reached the end of their useful lives and were slowly declining over time, experiencing significant downtime and requiring repeated servicing. This was particularly true at the Police Department (PD), where printers were the most heavily used and were not reliable on a day to day basis. Initially, the City’s plan was to replace all printers with the move to the new City Hall and leave the old ones behind. Staff determined there was no need to hold PD to this standard since PD was not moving into new City Hall. Therefore, an exception was granted to PD and Information Technology (IT) staff began an informal review of vendors and their copier/printer products in February 2018.
Eight vendors with enterprise-grade units were invited to participate and seven responded positively by bringing their printer to the Police Department for a one-week test run (i.e. Xerox, Lexmark, Sharp, Konica, HP/Samsung, Canon, and Ricoh. Kyocera responded months later that they would like to participate, but by that time, testing was already complete). PD staff tested the seven available units, and HP/Samsung and Sharp ranked highest. A second phase of testing was then added to allow these two units to compete against each other.
The HP/Samsung model was deemed the best for the Police Department’s needs and also happened to be the second-least expensive of the seven units tested. Therefore, HP/Samsung was selected as best value to be the replacement printer and an agreement was reached in June 2018 for two units in the PD building from Eclipse Office Technologies. The cost of just two units was within the City Manager’s spending authority.
In the meantime, all remaining Xerox Colorcube copiers began experiencing a significant downturn in reliability, with calls for service happening on at least a weekly basis. The problem became critical, affecting City operations and jeopardizing staff’s ability to produce documents such as printed agendas for City Council meetings.
The problem became so acute that in early August, the decision was made that the City could not wait any longer for new copier/printers, and indeed could not even wait for formal Council approval in September. Therefore, when an opportunity arose with Eclipse Office Technologies to place an early order to lease nine additional HP/Samsung copier/printers, staff executed the order.
Staff requests Council approval of a five-year lease of nine HP/Samsung MX7600 copier/printers (eight throughout the City complex and one in the Senior Center). Costs are detailed in the Fiscal Impact section.
Pursuant to Purchasing System / Exceptions to Bid Policy (section 3.16.110.F. of the San Pablo Municipal Code), the normal Request for Proposal (RFP) process is waived in the case of leased equipment:
F. Leases and Lease Purchases. The city may contract to lease or lease-purchase materials, vehicles and equipment without calling for bids.
Nonetheless, the City did complete an extensive evaluation and testing process prior to making its decision on which copier/printer to purchase and considered price in that evaluation process.
FISCAL IMPACT
Total estimated five-year cost for nine copier/printers is $277,200 ($55,440 annually), comprised of a lease expense of $195,600 and an estimated copy expense of $81,600. When combined with the cost of the initial two copier/printers already installed in PD, the total value of the contract increases to $320,280. The contract amount is already budgeted and available in the Administrative Services / Multi-departmental Budget (100-1430-43520). No additional appropriations are needed.