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HomeMy WebLinkAbout11- Finance CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION coo PI) 7 FROM: BARBARA PACHON, Subject: PRINT SHOP: INCREASE DIRECTOR OF FINANCE ANNUAL MAINTENANCE PURCHASE ORDER ON XEROX 5090 COPIER DEPT: FINANCE/PURCHASING DIVISION DATE: OCTOBER 30, 1997 Synopsis of Previous Council action: None NOV 17 1997 Recommended motion: Adopt Resolution. ,S 'gnature Contact person: John P. Murphy, Purchasing Manager Phone: x5086 Supporting data attached: Ward: Funding Requirements: Amount: $20,000.00 Source: 621-123-5172 Finance:' Council Notes: Agenda Item No. / Continued to �i:'Z/�S��'J M 1/�n STAFF REPORT SUBJECT FY 1997-1998 maintenance contract for Print Shop's Xerox 5090 copier. BACKGROUND The lease purchase on the Print Shop's Xerox 5090 Copier was completed in FY 1997. Throughout the duration of the lease purchase, the City was required to have Xerox provide maintenance for the copier per the specifications of the lease purchase agreement. However, the lease purchase is now paid in full and the City is contractually free to work with another maintenance vendor. The only other known vendor is Kodak. However, they have no local experience with this type of machine. Due to Kodak's lack of local experience, and the fact that this machine is seven years old and at the end of its economic life, staff does not recommend experimenting with new sources. Staff has also discussed options with Xerox and as a result, Xerox has proposed a less expensive run length maintenance plan based on the actual number of copies generated in a year. The cost of this maintenance agreement, based on current usage levels, is $40,000 annually. Prior to this maintenance agreement, the cost of a flat maintenance agreement with Xerox was approximately $50,000. While staff explored options with Kodak and Xerox, a purchase order for six months of maintenance was issued to Xerox at the beginning of the fiscal year in the amount of$20,000. Council approval is required to extend the contract to twelve months. This copier is more than seven years old and at the end of its economic life. The maintenance call frequency of newer equipment is 1.5 calls per month; this machine averages three calls per month. Additionally, this is the last machine of its type that Xerox maintains in this area. Next year's Print Shop budget request will include the replacement of this machine. RECOMMENDATION That the Mayor and Council authorize the Purchasing Manager to increase Purchase order 991389 by $20,000, from $20,000 to $40,000 to provide copier maintenance for Print Shop's Xerox 5090 copier. 1 RESOLUTION NO. 2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE INCREASE OF $20, 000 ON PURCHASE ORDER #991389 TO XEROX CORPORATION. 3 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF 4 SAN BERNARDINO AS FOLLOWS: 5 SECTION 1. The Mayor and Common Council of the City of San 6 Bernardino do hereby approve the increase of $20, 000 on Purchase 7 Order #991389. This increase will provide for maintenance on the 8 Print Shop Xerox 5090 copier for the rest of the fiscal year. 9 SECTION 2 . It is hereby found and determined that the Xerox 10 5090 copier will be used by the Print Shop and will therefore 11 require maintenance for the remainder of the fiscal year. The 12 Purchasing Manager is directed to increase subject Purchase Order 13 to facilitate the required annual maintenance. 14 15 I HEREBY CERTIFY that the foregoing resolution was duly 16 adopted by the Mayor and Common Council of the City of San 17 Bernardino at a meeting thereof, held on the 18 day of , 1997, by the 19 following vote, to wit: i 20 21 22 23 24 25 26 27 1 28 1 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE INCREASE OF $20, 000 ON PURCHASE ORDER #991389 TO XEROX CORPORATION. 2 3 COUNCIL MEMBERS AYES NAYS ABSTAIN ABSENT 4 NEGRETE 5 CURLIN 6 ARIAS 7 OBERHELMAN 8 DEVLIN 9 ANDERSON to MILLER 11 12 CITY CLERK 13 The foregoing resolution is hereby approved this day of , 1996. 14 15 16 Tom Minor, Mayor City of San Bernardino 17 Approved as to form 18 and legal content: 19 JAMES F. PENMAN City Attorney 20 1 21 By: 22 23 24 25 26 27 2 28