2002 AGN NOV 05 I05 - Laserfiche WebLink

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Item #5 CITY OF COLTON AGENDA REPORT For City Council Meeting of November 5, 2002 TO: Honorable Mayor and Members of the City Council FROM: Dilu deAlwis, Finance Director SUBJECT: Award a Five -Year Lease Agreement for Copiers for Finance and Parks, Recreations & Family Services to Minolta Business Solutions for the Annual Lease Amount of $3,288.12 each. Reject all bids for the Lease of a Copier for Human Resources. DATE: October 17. 2002 BACKGROUND Human Resources, Finance and Parks, Recreation & Family Services 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 On September 19, 2002, Purchasing solicited bids for a five-year lease on three copiers. Bid opening was held on October 2, 2002, at 2:30 p.m. Eleven bids were received and evaluated. A Bid Analysis is attached showing the price, lease price and cost per copy for each of these machines. The cost per copy price is underlined for the lowest bidder. Staff is recommending award to Minolta, the low bidder, for the Finance and Parks, Recreation & Family Services copier lease. The lease payment will be $274.01 per month, including maintenance, for each machine. There was some confusion regarding the specifications for the Human Resources copy machine. It is Staffs recommendation that it would be in the best interest of the City to change the specifications on the Human Resources copier and go back out to bid. 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 Finance Department and Parks, Recreation & Family Services equipment rental account numbers 100-6040-6041-2420 and 100-6200-6200-2420 respectively.