The URL can be used to link to this page

Home My WebLink About21 FinanceCITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Barbara Pachon, Finance Subject: Resolution approving and Director adopting the lease financing and purchase of replacement Print Shop Dept: Finance copier and offset printing equipment, A I A and annual maintenance contract for Date: 8/19/99 OR1011JAL Print Shop copier equipment. Synopsis of Previous Council Action: July 6, 1999 Resolution 99 -167 (Approving FY 1999 -2000 Final Budget) adopted Recommended motion: Adopt Resolution. 0-v I, X- r l Signature Contact person: Barbara Pachon, Director of Finance Phone: 5242 Supporting data attached: staff report & supporting contracts Ward: FUNDING REQUIREMENTS: Amount: $80,000 Source: Council Notes: 621 - 123 - 5803 -0000 ($40,000) 621 - 123 - 5172 -0000 ($40,000) (Acct. Description) Central Services, Finance - Print Shop, Lease Payments / Equipment Maintenance Finance Agenda Item No. q/7/fj STAFF REPORT SUBJECT: Replacement and upgrade of Print Shop equipment. Items to be replaced or added include: production copier, color copier, folding/stapling equipment, printing presses and printing plates. Anticipated lease - purchase of equipment was already factored into the FY 1999 -00 Budget. BACKGROUND: Introduction In late 1997, staff began to assess both the condition of Print Shop equipment and the City's printing needs when the contract with Xerox for maintenance of the Print Shop's production copier was up for renewal. At that time, the Purchasing Manager recommended to the Mayor and Council that the renewal of the contract be approved with the understanding that replacement of the Print Shop copier would need to be included in the following year's budget. Staff ultimately assessed the condition of all Print Shop equipment and completed the assessment in FY 1998 -99, determining that besides the Print Shop's ten year old production copier, other equipment would also need to be replaced, including the folding / stapling equipment, and the seventeen year old offset printing press and plate maker. In assessing the City's printing needs, it has also been determined that a color copier is needed in order to offer a complete range of printing services to departments. Due to the wide variety of specifications of each copier manufacturer's available products, and the likelihood that creating detailed specifications for a formal bid procedure would limit available options, staff determined that the greatest benefit to the City would be realized by inviting available copier vendors to propose their best solutions for four basic copier requirements of the Print Shop: speed, limited operator input, continuous form feed and paper capacity. Purchasing and Print Shop staff inspected nine major brands of high- volume copier configurations proposed by local and area merchants, performed hands -on testing, and received price quotes for equipment purchase and maintenance. Although Xerox presented the highest cost of equipment, their available options, which are not all available from other vendors, include a two- machine configuration requiring minimal operator input, free color copier, in -line booklet making, speed, on- screen graphic editing, capacity and continuous form -feed, making Xerox the best value of all the proposed copier equipment. The proposed Xerox copier and booklet- making equipment are available at competitive prices through appropriate advantageous governmental contracts established through other public agencies' bidding procedures as allowed in Municipal Code Title 3, Section 3.04.010 B. titled Exemptions, paragraph 2. Upon researching the availability of small offset printing presses, it was found that there are only two manufacturers who offer printing presses for sale in the United States that offer the small size, capacity and paper handling capability required for efficient Print Shop operations, and who have the stability and reliability to support their equipment in the future. A.B. Dick offers the lower priced press which meets all of the Print Shop's basic requirements, while Hamada offers a similar press at a much higher cost, with extra features that are not needed by the Print Shop. The price, suitability, reliability and minimal training requirements of the A. B. Dick offset printing press make it the best selection. Competitive bids were solicited from distributors of the Mitsubishi plate maker, and the lowest and best bid was submitted by Graphic Systems of Orange, CA. Attempts to identify local dealers for the plate maker were unsuccessful. Copier Equipment At ten years old, the Xerox 5090 Print Shop production copier has surpassed its expected life, is incurring increasing maintenance costs and experiencing frequent down time. The Xerox 5090 averages a monthly output of well over 300,000 impressions per month. Machine down time adversely affects the Print Shop's ability to meet demand for copy services and to produce copies in a timely fashion. Proposed equipment from Xerox includes a two copier configuration, which adequately addresses the down time issue by allowing the copier operator to continue production on one machine while the other is being repaired. Configurations with more than two machines would present a problem of necessary increased operator input and exposure to increased mechanical failure. The need for a color copier has also become apparent due to the increase in requests for color copying and the proliferation of desk -top publishing by City staff, which has increased the availability of color charts, graphs and other visuals that positively enhance the quality and effectiveness of department reports and publications. The folding/stapling equipment currently used to produce booklets is obsolete, experiences excessive down time, operates at an unsafe noise level, and requires uninterrupted operator input. The proposed new booklet maker equipment, available from Xerox with the copier package at a reduced price, is substantially less labor- intensive than the current equipment, has an increased production capacity and operates at a safe noise level. Additionally, the folding / stapling equipment from Xerox operates both in line with the proposed copier and stand alone, an option available: from Xerox that positively increases productivity and reduces labor requirements. The black & white copier configuration, color copier and booklet maker are available as a package deal, with the color copier supplied at no charge, and a substantial trade -in allowance for old copier equipment. Total cost of this package from Xerox is $ 176,335.04 including tax. Xerox is, located at 650 E. Hospitality Lane, San Bernardino, and as such qualifies as a local vendor. Annual maintenance for the Xerox 5090 copier currently costs the City over $50,000 annually. The proposed replacement copier equipment, a Xerox 5800I high speed copier, a Xerox DocuTech 65 digital publishing system, a Xerox 5750 Color Copier, and an automatic in -line folder /stapler will cost approximately $40,000 annually for maintenance. This represents a savings in copier maintenance costs of over $10,000.00 annually, while output capacity and available; copying options will increase dramatically. Offset Printing Equipment In conjunction with the copy equipment needs of the City, the A.B. Dick printing press and plate making equipment used for printing City letterhead, envelopes, and other high volume jobs is over seventeen years old, and has surpassed its useful and expected life. The press is obsolete, and repair parts are no longer available. Total cost of this equipment from A. B. Dick is $32,616.14, including tax. A.B. Dick is the manufacturer of the press, does not offer it for sale through distributors, and is therefore recommended as a preferred vendor. The plate maker, used to produce the master plates for offset printing, no longer produces quality plates needed to operate the printing press, occupies fully half of the Print Shop's imaging room, and parts are obsolete and difficult to locate. Proposed replacement equipment, the Mitsubishi Silvermaster, is a tabletop model and will enable staff to utilize available space in the Print shop for the additional proposed copier configuration. Total cost of this equipment from Graphic Systems is $ 6,788.25, including tax. FINAN('IAL IMPACT: Total cost for replacement copier and printing press equipment is $ 215,739.43, including tax. This purchase will be financed with a Lease Agreement through a competitive rates bid. The Lease term is to be the most advantageous to the City up to 5 years, with semi - annual payments beginning January 15, 2000. One payment will be due in FY 99/00, with said payment expected not to exceed $ 40,000, depending on the quoted lease rate. As stated in the City Administrator's FY 1999 -2000 Preliminary Budget Transmittal to the Mayor and Council, $40,000 for lease payments and $60,000 for equipment maintenance has been included in the FY 1999 -2000 Print Shop budget in anticipation of the replacement, upgrade and maintenance of the Print Shop Equipment. Savings from the deletion of a vacant position in the Print Shop combined with the anticipated reduction in maintenance costs will offset the cost of the lease payment, with the total FY 1999 -2000 Print Shop budget remaining at levels consistent with the previous fiscal year. RECOMMENDED MOTIONS: Adopt Resolution: A) authorizing the Purchasing Manager to issue purchase orders, (upon securing financing) to: Xerox in an amount not to exceed $ 176,335.04, A.B. Dick in an amount not to exceed $32,616.14 and Graphic Systems in an amount not to exceed $ 6,788.25, for replacement of Print Shop Equipment with an aggregate total not to exceed $ 215,739.43. B) authorizing the Purchasing Manager to issue an annual purchase order to Xerox in an amount not to exceed $40,000.00 for maintenance of the replacement Print Shop copiers and folding / stapling equipment. C) authorizing the Purchasing Manager to solicit competitive rate quotes to lease finance replacement Print Shop Equipment, and to award a contract to the lowest and best bidder for a lease purchase agreement for the most advantageous term up to 5 years covering the replacement Print Shop Equipment in an amount not to exceed $ 215,739.43. �l I 10 11 12 13 14 15 16 17 18 1911 20 21 22 23 24 25 26 27 Resolution No. RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING AN ADOPTING THE FINANCING OF REPLACEMENT PRINT SHOP COPIER AN OFFSET PRINTING PRESS EQUIPMENT UNDER A COMPETITIVELY BI LEASE PURCHASE AGREEMENT, THE PURCHASE OF REPLACEMENT PRIN SHOP EQUIPMENT FROM XEROX, A. B. DICK AND GRAPHIC SYSTEMS, AN THE ISSUANCE OF AN ANNUAL PURCHASE ORDER TO XEROX FO MAINTENANCE OF PRINT SHOP COPIER AND FOLDING / STAPLIN EQUIPMENT. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY SAN BERNARDINO AS FOLLOWS: SECTION 1. That the Mayor and Common Council authorize the Purchasing Manager issue purchase orders (upon securing financing) to Xerox in an amount not to $176,335.04, A.B. Dick in an amount not to exceed $32,616.14 and Graphic Systems in amount not to exceed $ 6,788.25, for replacement of Print Shop Equipment with an total not to exceed $ 215,739.43. SECTION 2. That the Mayor and Common Council authorize the Purchasing Manager issue an annual Purchase Order to Xerox in an amount not to exceed $40,000.00 fo maintenance of replacement Print Shop copiers and folding / stapling equipment. SECTION 3. That the Mayor and Common Council authorize the Purchasing Manager solicit competitive rate quotes under a competitively bid lease purchase agreement, and award a contract to the lowest and best bidder for a lease purchase agreement with term up to 5 years covering the replacement Print Shop Equipment in an amount not to $ 215,739.43. Entered into Record at CrEm1611j fnV0evCms Mtg: Dv re U* r €d z Iterri City ClerklCCC Secy City ci Sara Bernardino 0 a 9/7�99 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO APPROVING AND ADOPTINC THE FINANCING OF REPLACEMENT PRINT SHOP COPIER AND OFFSET PRINTING PRESS EQUIPMENT UNDER A COMPETITIVELY BID LEASE PURCHASF AGREEMENT, THE PURCHASE OF REPLACEMENT PRINT SHOP EQUIPMENT FROM XEROX, A. B. DICK AND GRAPHIC SYSTEMS, AND THE ISSUANCE OF A N ANNUAL PURCHASE ORDER TO XEROX FOR MAINTENANCE OF PRINT SHOF COPIER AND FOLDING /STAPLING EQUIPMENT. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor anc Common Council of the City of San Bernardino at a meetin thereof, held on the day of , 1999, by the following vote, to wi COUNCIL MEMBERS: AYES NAYS ABSTAIN ABSENT ESTRADA LIEN MCGINNIS SCHNETZ (VACANT) ANDERSON MILLER CITY CLERK The foregoing Resolution is hereby approved this day of 1999. Approved as to form and legal content: JAMES F. PENMAN, City Attorney 2 JUDITH VALLES, Mayor City of San Bernardino