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ADOPT RESOLUTION AUTHORIZING CONTRACT AMENDMENT NO. 3 TO CONTRACT NO. 419000674, PURSUANT TO THE SHASTA UNION HIGH SCHOOL DISTRICT COOPERATIVE AGREEMENT, WITH UBEO WEST, LLC, FOR THE CONTINUATION OF A THREE (3) YEAR LEASE, MAINTENANCE, AND SERVICE AGREEMENT FOR CANON COPY MACHINES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a resolution to:
1. Approve the findings pursuant to Stockton Municipal Code Section 3.68.070 supporting an exception to the competitive bidding requirements to utilize the Shasta Union High School District (SUHSD) Master Enabling Agreement;
2. Authorize the City Manager to execute Contract Amendment No. 3 to Contract 419000674 with UBEO West, LLC for the continued lease, maintenance, and service of the City’s Canon copy machines for a term of up to three (3) years, in a total not-to-exceed amount of $489,220.00.
It is further recommended that the City Council authorize the City Manager to take all appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The City currently leases Canon high-speed xerographic equipment used by Document Services to provide imaging, copying, printing, and scanning services that support City operations. The existing agreement with UBEO West, LLC, through the Shasta Union High School District (SUHSD) Master Enabling Agreement, expires on August 30, 2026, and will convert to a month-to-month lease (Attachment A).
Approval of Contract Amendment No. 3 will extend the lease, maintenance, and service agreement for an additional three (3) years, ensuring uninterrupted document production while continuing to utilize competitively procured cooperative pricing. Continuing the existing agreement provides the City with a cost-effective solution that avoids the expense and operational disruption associated with replacing equipment before the end of its useful life (Exhibit 1 to the Resolution).
DISCUSSION
Background
Document Services currently operates under a cooperative agreement with UBEO West, LLC through the SUHSD Master Enabling Agreement for the lease, maintenance, and service of Canon high-speed copy machines. The cooperative purchasing agreement allows public agencies to utilize competitively solicited contracts, reducing procurement time and administrative costs while maintaining compliance with applicable purchasing requirements.
The current agreement expires on August 30, 2026. UBEO West, LLC has agreed to extend the lease, maintenance, and service agreement for an additional three (3) years under the existing cooperative purchasing agreement.
Present Situation
Document Services produces approximately 146,000 copies each month in support of City operations using the Canon high-speed black-and-white and color xerographic systems. These systems are essential to the timely production of a wide variety of official City documents, including:
• City Council agendas and staff reports
• Budget and financial documents
• Annual Comprehensive Financial Reports
• Public safety publications
• Human Resources materials
• Utility billing inserts
• Meeting agendas and supporting documentation for various boards and committees
• Other operational and public information documents
The existing Canon equipment continues to operate reliably and meets the City's production requirements. Extending the current lease and maintenance agreement allows the City to continue receiving comprehensive maintenance, technical support, and equipment servicing while avoiding the higher costs of procuring replacement equipment and entering into a new lease.
Approval of this amendment will ensure uninterrupted document production services while maintaining a cost-effective and operationally efficient solution for the City.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings that support an exception to the competitive bidding process. These findings include:
1. The Shasta Union High School District (SUHSD) Master Enabling Agreement provides a competitively procured cooperative purchasing mechanism that allows participating public agencies to obtain goods and services under competitively established terms and conditions.
2. Utilization of the SUHSD Master Enabling Agreement is in the best interest of the City because it provides access to the required equipment, maintenance, and services without conducting a separate competitive procurement process.
3. The proposed procurement is consistent with the City's procurement requirements and applicable cooperative purchasing authority, and use of the SUHSD Master Enabling Agreement provides an efficient and cost-effective means of obtaining the required equipment and services.
4. The City Council previously reviewed and approved the SUHSD Master Enabling Agreement via Resolution No. 2016-05-24-1209 and 2021-04-27-1203.
FINANCIAL SUMMARY
The proposed amendment provides for an estimated annual cost of $53,333.33, for an estimated total of $160,000.00 over the three-year extension period.
The total not-to-exceed contract amount, inclusive of previous amendments and the proposed extension, will be $489,220.00.
Funding is available in the Office Equipment Internal Service Fund. Future funding will be appropriated through the City's annual budget process.
Attachment A - Shasta Union High School District (SUHSD) Master Enabling Agreement and Addendum A