TITLE
Recommendation to adopt resolution authorizing City Manager to execute an agreement and supporting documents with Konica Minolta Business Solutions U.S.A. Inc., for the lease and servicing of photocopier equipment, on the same terms and conditions afforded to the County of San Bernardino, in an amount not to exceed $137,500 per year, with a two percent contingency for unforseen expenses for a term of three years with an option to renew for two additional one-year periods. (Citywide)
DISCUSSION
On September 19, 2006, the City Council adopted a resolution authorizing the City Manager to enter a 36-month lease of copier equipment and to process supporting documentation with Konica Minolta Business Solutions U.S.A. Inc., (Konica) to provide photocopiers, color printers and copier vending machines for Long Beach Public Libraries through the contract with the County of San Bernardino. Konica will install new digital photocopier printers at each of the 12 Long Beach Public Library sites that provide print and copier services to the public. In addition, Konica will provide two high volume digital photocopier machines for the Library's Administrative Division and Automated Services Bureau. The length of the lease of equipment and service maintenance will be for a term of three years with an option to renew for two additional one-year periods.
The annual cost that was stated in the September 19, 2006 City Council letter was not correct. The annual cost stated was $105,900 and estimated revenue to be generated was $38,000 annually. The document provided by Konica for the service agreement had a calculation error that provided an incorrect total cost. However, the lease cost per machine and the cost per copy for the service agreement did not change. The actual annual cost for the lease of photocopier equipment and the service agreement will not exceed $137,500. The Library still anticipates generating $38,000 annually in revenue.
This matter was reviewed by Deputy City Attorney Lisa P. Malmsten on January 26, 2007 and Budget Management Officer David Wodynski on January 30,2007.
TIMING CONSIDERATIONS
City Council action is requested on February 13, 2007, to authorize the City Manager to execute an agreement, purchase orders and supporting documentation for photocopier equipment to be installed at 12 Long Beach Public Library sites. The equipment will be ordered as soon as the agreement, purchase orders and supporting documents are executed.
FISCAL IMPACT
The purchase order and service agreement costs for the photocopier equipment are for an amount not to exceed $137,500 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 $99,500 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.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH AUTHORIZING THE CITY MANAGER TO ENTER INTO PHOTOCOPIER LEASE AND SERVICE AGREEMENTS THROUGH THE CONTRACT BETWEEN THE COUNTY OF SAN BERNARDINO, CALIFORNIA AND KONICA MINOL TA BUSINESS SOLUTIONS USA TO PURCHASE PHOTOCOPIER AND COPIER SERVICES FOR THE DEPARTMENT OF LIBRARY SERVICES
Respectfully Submitted,
NAME ELEANORE SCHMIDT |
APPROVED: |
TITLE DIRECTOR OF LIBRARY SERVICES |
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GERALD R. MILLER |
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CITY MANAGER |