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CITY OF SAN BERN " RDINO - REQUEST F^R COUNCIL ACTION
From: BARBARA PACHON, Subject: AWARD A LEASE PURCHASE AGREEMENT TO
r- DIRECTOR OF FINANCE BURTRONICS BUSINESS SYSTEMS FOR THE
D LEASE PURCHASE OF LANIER PHOTO COPY
FINANCE/PURCHASING MACHINES
Date: APRIL 27, 1995
Synopsis of Previous Council action:
NONE
T) . FTT nr.j
17 APF
Recommended motion:
ADOPT RESOLUTION
Signature
r
Contact person: JOHN MURPHY, PURCHASING MANAGER Phone: ext. 5085
Supporting data attached: Ward:
FUNDING REQUIREMENTS: Amount: $720642_ 55 f estimated first year cost .
Source: (Acct. No.)
Acct. Description)
Finance:
Coo Votes: r
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1J j5 14J—
75-0262 Re5 Agenda Item No.
CITY OF SAN BERK RDINO - REQUEST � JR COUNCIL ACTION
STAFF REPORT
This resolution is for Council to approve the selection of
Burtronics Business Systems to supply Lanier photo copy machines to
the City of San Bernardino on a lease purchase basis. Burtronics
Business Systems is located in the City of San Bernardino and is a
Minority Business Enterprise.
In July, 1994 Notice Inviting Bids for Specification number F95-08
went out to replace approximately 19 aging photo copy machines
throughout the City. Vendors were asked to bid a variety of ways.
Bids were opened in August, 1994. The Purchasing Agent left the
City before an award was made. In January, the competitive range
was selected. This included the following four vendors: Ikon
Business Systems bidding Toshiba; Advanced Copy Systems bidding
Sharp, Burtronics Business Systems bidding Lanier; and Xerox.
The Purchasing Manager notified the top four final vendors of the
competitive negotiation process and they were all instructed that
this would be a winner take all. Each of the four were given the
opportunity to withdraw. They all chose to remain in the
competition.
A round of best and final offers were received separately, in
person, on April 10 and 11. Cost was a major factor, and the most
advantageous cost was offered by Burtronics. A bid summary is
attached. However, municipal code 3 . 04 . 070I requires that other
factors be considered as well. Training, service, reliability,
trade-in machines and references were also considered. Burtronics
came out on top with all factors considered. Burtronics references
were checked with other public purchasing departments. According
to these references, Burtronics was highly recommended.
i
The intent of the competition for the mass replacement of machines
is to not only replace old equipment but standardize copier service
in the City. Therefore, this award shall serve as the basis for
replacing copiers now and in the future. This applies only to
copiers in this same size and usage range. Specialized copiers,
like the large machine in the Print Shop will be purchased and bid
separately.
Included in this procurement are five machines in the Police
department which had their leases extended until next April.
Rather than waste funds by having to "buy out" these leases, it is
the intention to let the existing leases run till term and then
replace them as part of this award. This is why the lease
agreement does not contain firm figures. The vendor has also
75-0264
suggested some other substitutions that can be a further cost
savings if the departments approve. We stuck to the original
machines in our specifications only to have a firm baseline as the
basis for source selection and award. After five years, a new
procurement will take place again. This concept was also explained
to all four finalists.
Staff recommends that Burtronics be awarded a five year lease
agreement for nineteen copiers. When all copiers are in place, the
annual cost including maintenance and supplies is $72 , 642 . 55. The
total for five years is $363, 212 .75.
BARBARA PACHON, JO MURPHY,
DIRECTOR OF FINANCE CHASING MANAGER
I
CITY OF SAN BERNARDINO
COPIER BID SUMMARRY
LOCATION XEROX LANIER SHARP TOSHIBA
A-FINANCE 3 ,811.20 2 , 295. 99 2 , 266. 02 2, 592 .27
B-PARK & REC 2, 364.84 1, 603 .27 1,738. 08 1, 854 .89
C-RISK MGT 3 , 204 .24 2, 262 . 61 2, 373 . 36 2, 661.26
D-MEZZANINE 2 ,868 .48 1, 976.48 2 , 097 . 72 2, 311. 33
E-PERSONNEL 4 ,401. 24 3 , 020. 14 3 , 354 .24 4 , 149. 34
F-FACILITY MGT 2, 196.96 1, 653 . 04 1, 785. 96 1, 915. 75
G-POL DISPH 1, 035. 00 592 .76 600.48 808.87
H- TELECOMM 1, 199 . 28 630. 34 631. 68 837 .29
I-CENT STORES 1, 692 . 00 696. 08 686. 28 890.54
J-TREASURER 1, 043 . 64 399 . 28 439.92 808 . 87
K-POLICE 8,400. 84 2 , 100. 89 2 , 217 . 60 2 ,421.92
L-PUBLIC WORKS 3 , 031.20 2 , 178.55 2 , 599. 08 3, 079. 54
M-MAYOR/ADMIN 11, 754 .84 6, 895. 89 6, 870. 00 8, 312 . 07
N-ENGINEERING 13 , 257 . 12 6, 883 .48 9, 261. 60 5,462 . 01
O-CITY CLERK 7, 546. 92 5, 697. 35 6, 366.72 6, 983 . 04
P-PARK & REC 6, 550. 68 5, 121. 77 5, 989.20 6, 298. 39
Q-POLICE 8, 116. 20 5, 057. 82 5, 947 . 32 6, 222 . 32
R-POLICE 13 , 393 .44 8, 940. 06 7, 876. 56 10, 137 .81
S-POLICE 18, 861. 12 14 , 636.75 11, 844 .24 *NO BID
Ar
TOTAL 114 ,729. 24 72 , 642 . 55 74, 946. 12
NOTE: LANIER WAS BID BY BURTRONICS
SHARP WAS BID BY ADVANCED COPY SYSTEMS
TOSHIBA WAS BID BY IKON BUSINESS SYSTEMS
*USING AN AVERAGE OF THE THREE OTHER BIDS FOR LOCATION
"S" FOR COMPARISON, IKON BUSINESS SYSTEMS' TOTAL WOULD BE
$82 ,861.55. IKON BUSINESS SYSTEMS PRICES DO NOT INCLUDE
SUPPLIES