TITLE
Recommendation to adopt resolution authorizing City Manager to execute a 36-month Lease of Copier Equipment, Consent to Assignment Agreement, Sales Orders, Supply Service Contracts, Cost per Copy Service Agreements, and amendments to extend the contract with Konica Minolta Business Solutions U.S.A., Inc., to provide photocopiers, color printers and copier vending machines. (Citywide)
DISCUSSION
The Department of Library Services has provided self-serve photocopiers and computer printers to the general public at cost through a service contract with various vendors since the 1970s . The most recent service contract has been in place since 1994 . It is anticipated that the public will generate approximately 219,000 copies this fiscal year, for which the Department currently charges $0 .15 per black and white copy and $0 .50 per color copy . Local library agencies charge between $0 .10 - $0.20 per black and white copy and $0 .75 - $1 .00 per color copy . Kinko's, a print service company, charges 0.08 per black and white copy and $.89 per color copy . Photocopy service is an important public service and is critical in helping to preserve library materials from being destroyed by patrons who need information from reference materials that cannot be checked out and are unable to make a copy.
In March 2005, the Department issued a Request for Proposals for vendors to submit proposals to provide and maintain pay-for-use copiers, printers, and microfilm readers for use by Library patrons . Of the three vendors that responded, none was identified as minority or woman owned business . Konica Minolta Business Solutions U .S .A., Inc.,(Konica) was selected as the lowest responsible bidder through this process . Due to delays in contract negotiations, an agreement was not reached until March 2006.
Konica will install new black and white digital photocopier printers at each of the 12 Long Beach Public Library sites that provide print and copier services . At the Main Library, patrons will have access to color printers . Patrons can use the equipment by paying with bills or coins . Konica will be responsible for installing and servicing the equipment. City staff will be responsible for collecting and depositing the cash from the machines . The photocopiers available for public use in the neighborhood libraries are also used for business purposes by Library staff .
With a view to facilitating the servicing of equipment, the Department requested that Konica provide a cost proposal to replace two photocopier machines in Library Administration and the Automated Services Bureau with two multi-functional devices .
The lease for these machines would be for a three year period . Konica currently has a
contract with the County of San Bernardino, which the City can use to receive a
discounted lease rate . The cost of the lease is lower than the City's current vendor .
The length of the lease of equipment and service maintenance with Konica will be for a
term of 3 years with an option to renew for two additional one-year periods . Konica will
require monthly lease payments and maintenance service payments for the equipment .
The Department will be recouping the revenue generated from the machines, whereas
the previous contractor collected all the revenue and charged the Department if a
minimum revenue commitment was not met.
This matter was reviewed by Deputy City Attorney Lisa P . Malmsten on September 8,
2006 and Budget Management Officer David Wodynski on August 11, 2006.
TIMING CONSIDERATIONS
City Council action is requested on September 19, 2006, to authorize the City Manager
to execute purchase orders and supporting documentation for the equipment to be
installed at 12 Long Beach Public Library sites . The equipment will be ordered as soon
as the purchase orders and supporting documents are executed .
FISCAL IMPACT
The purchase order and service agreement costs for the public access photocopier
machines are for an amount not to exceed $90,500 per year . The Library is expected to
generate $38,000 annually in revenue from fees collected . The net impact to the
General Fund (GP 103) to subsidize this service would be $52,500 per year . The
impact under the current contract is approximately $48,000 per year . The purchase
order and service agreement costs for the staff-use photocopier machines are for an
amount not to exceed $15,400 per year . The cost to the General Fund (GP 103) for the
staff-use machines would be $15,400 per year . Current budget exists in the General
Fund (GP 103) and the Department of Library Services (LS) to support this activity .
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ELEANORE SCHMIDT |
APPROVED: |
DIRECTOR OF LIBRARY SERVICES |
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GERALD R. MILLER |
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CITY MANAGER |