2003 AGN MAY 06 I19 - Laserfiche WebLink

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Item #19 CITY OF COLTON AGENDA REPORT For City Council Meeting of May 6, 2003 TO: Honorable Mayor and Members of the City Council FROM: Dilu De Alwis, Finance Director r�zr SUBJECT: Award a 36 -Month Lease Rental Agreement for Copiers for the Community Development Department and the Human Resources Division to Minolta Business Solutions, Inc. for an Annual Amount of $6,592.44 DATE: April 24, 2003 BACKGROUND Community Development and Human Resources are currently leasing copiers. These leases have expired and these departments are requesting to upgrade their copiers to take advantage of the new technology that is available today. DISCUSSION/ANALYSIS At the Council meeting of November 5, 2002, the City Council rejected the bids for the replacement of the copier in the Human Resources Division and authorized Purchasing to re- bid for this copier. On October 10, 2002, the County of San Bernardino sent out a Request For Proposal for a copier contract. The contract was awarded on February 11, 2003, by the Board of Supervisors. Section 3.08.100 of the City's Purchasing Ordinance allows the City to enter into agreements with other agencies for the purchase of supplies, services and equipment. In such instances, the procedures of that agency shall satisfy all city requirements for the bid and award of those purchases. The City of Colton can piggyback onto the San Bernardino County RFP #P-7. This will save the City the cost of the formal bid process and allow us to take advantage of the volume discount afforded to San Bernardino County. ALTERNATIVES The City could continue to lease these copiers at the same lease payment or purchase them at fair market value, however, these machines are five years old and the technology has become obsolete. The cost of maintenance on older copiers increases each year, which makes the continued lease or purchase of the existing machines not very cost effective when you can have increased productivity from the new technology at a very similar price. FINANCIAL IMPACT The funds are budgeted in the Community Development and Human Resources equipment rental account numbers 100-6300-6301-2420 and 100-6030-6030-2420 respectively.