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ADOPT RESOLUTION APPROVING FINDINGS AND AUTHORIZING THE CITY MANAGER TO EXECUTE A COOPERATIVE PURCHASE AGREEMENT FOR LEASE OF A CANON HIGH SPEED XEROGRAPHIC SYSTEM FOR 60 MONTHS WITH RAY MORGAN COMPANY OF ROSEVILLE THROUGH THE SHASTA UNION HIGH SCHOOL DISTRICT MASTER ENABLING AGREEMENT
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve and authorize the City Manager to execute a Cooperative Purchase Agreement for lease of a Canon high speed xerographic system; and
2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process to utilize Shasta Union High School District (SUHSD) Master Enabling Agreement; and
3. Approve a five (5) year agreement with Ray Morgan Company of Roseville for an annual estimated amount of $53,844 and estimated agreement total of $269,220.
4. Authorize the City Manager to exercise up to five (5) one-year extensions if necessary. Options to extend shall be contingent on the extension of the cooperative contract by SUHSD Master Enabling Agreement.
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the Resolution.
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Summary
A new Canon high speed xerographic system is needed to continue providing dependable citywide services by Document Services. This equipment will provide imaging, copying, printing, and scanning capabilities for a wide variety of documents to support the City’s operations. The City Council authorized the existing equipment lease as an exception to the competitive bidding process through the SUHSD Master Enabling Agreement with service provider Ray Morgan Company.
DISCUSSION
Background
Document Services currently has a 5-year lease for equipment with Ray Morgan Company, through the SUHSD Master Enabling Agreement, which expires in May 2021. This cooperative agreement permits state and local governments to take advantage of existing competitively solicited purchasing contracts without incurring the expenses and time associated with the bid process.
Present Situation
Currently, Document Services annually produces an estimated 142,000 copies per month utilizing a Canon, high-speed black/white and color xerographic system. Printing projects dependent on the xerographic system include:
- Council agendas
- Staff reports
- Budget documents
- Year-end consolidated financial reports
- Public safety publications
- Schedules of events
- Requests for proposals
- Human Resources bulletins and related documents
- Utility billing inserts
- San Joaquin and Flood Control Agency agendas
- Environmental Impact Reports
During the last few months, Document Services staff has solicited information from several vendors of high-speed xerographic systems meeting or exceeding the specifications of the City’s current system. Staff has determined that the upgraded models of our existing systems were the best selection. Both Canon systems have features that meet production needs with faster production times and updated printing features, including user-friendly software and excellent print quality.
The new models of Canon high speed xerographic systems were determined to be the best value for meeting the City's needs of improved functionality at a reasonable cost. The new system will simultaneously scan documents, accept electronic files, program jobs, and print documents. Document Services will continue to be able to:
1. Serve as a department resource to run large, complex jobs;
2. Minimize setup time in handling print jobs; and
3. Enable staff to scan documents and simultaneously print other documents for quicker turn around and less hold times for requests.
In addition, Document Services will benefit from new technology:
1. Increased reliability: Our system is outdated.
2. Better image resolution: Our current system is 1200 dpi the new system is 2400 dpi.
3. Consistent image quality: New system is much more consistent in its color schemes from job to job.
4. GBC punching units: Streamlines effort to produce comb bound documents.
VENDOR Equipment Lease (60 months)
Ray Morgan Company $167,340.00
Pacific Office Automation $186,712.80
Signa Digital Solutions $230,940.00
The Ray Morgan Company submitted a Proposal (Attachment A) to the City and will provide a new Canon high speed xerographic system with a VarioPrint DP-140 for black and white copies and an ImagePress C910, advanced for color copies. In addition to the 60-month equipment lease, the proposal includes maintenance services and supplies for a total rate of $4,487 per month plus tax. The projected monthly costs include the lease of equipment, standard maintenance, and estimated overage rates as listed below.
Equipment Standard Overage Monthly
Lease Maintenance Estimate Total
$2,789 $1,471 $206 $4,487
Estimated savings through the new Cooperative Purchase Agreement with Ray Morgan Company compared to the existing agreement are shown below.
Annual Cost Annual Cost
Current Canon New Canon Total Savings 60 Month Term
Xerographic System Xerographic System Annual Savings Savings $70,656 $53,844 $16,812 $84,060
Findings
Stockton Municipal Code section 3.68.070 provides for an exception to the competitive bidding requirement for purchases in cases where the City Council has approved findings that support and justify the exception. Cooperative purchasing agreements authorized by the City Council for the purchase of supplies or services through other governmental jurisdictions or public agencies is one such exception. The findings to support entering into this Cooperative Purchase Agreement are as follows:
1. The SUHSD established a cooperative purchasing agreement for the lease of technology equipment, software, and supplies on behalf of schools, agencies, and libraries after undergoing a formal competitive bidding process that sought and awarded bids.
2. The bid specifications used by the SUHSD Master Enabling Agreement were assessed against Document Services’ standards of quality and efficiency. Ray Morgan Company was selected by SUHSD as the supplier for Canon equipment.
3. The SUHSD Master Enabling Agreement is bidding primarily on behalf of educational agencies; however, the program extends the bid protections and price discounts to governments, municipalities, related county/municipal authorities, and other non-profit organizations.
It is recommended that the City continues to participate in the SUHSD Master Enabling Agreement with the Ray Morgan Company to realize the savings achieved by entering into the proposed agreement, to save time and costs of a local bidding process, and to gain advancements in Document Services technology.
FINANCIAL SUMMARY
Document Services currently has (2) Canon Printers that are on a 60-month lease with Ray Morgan Company that expires in May 2021. We are currently spending $70,656 per year. This new proposal will reduce our cost to $53,844 per year. The City savings is estimated to be $16,812 per year, or $1,401 per month, and $84,060 over the 5-year term.
The estimated annual lease for equipment and maintenance with Ray Morgan Company under the SUHSD Master Enabling Agreement for the Canon high speed xerographic system cost is estimated to be $53,844. Sufficient funds are available in the Office Equipment Internal Service Fund Account Number 2050-010-630013-570-000-00-20. In subsequent years, the funding will be appropriated through the annual budget process.
Attachment A - Ray Morgan Proposal