HomeMy WebLinkAbout4.05 AwardBidKonicaCopier
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: May 8,1995
SUBJECT
Award of Bids For One Konica 2028 Copier and One Konica 6190
($e(Prepared by: Paul S. Rankin, Assistant City Manager)
(1) / Bid Comparison Sheet
(2) / Resolution Declaring Existing Equipment Surplus
(3) / Budget Change Form
EXHIBITS ATTACHED
RECOMMENDATION (1) Award the bid to Astro Business Products (Dublin, California) and
.--J. .. ~ authorize Staff to issue the necessary Purchase Order. (2) Adopt the
/, &V{V resolution declaring the existing equipment surplus and authorize
. Staff to accept the Trade-In Allowance offered by Astro Business
Products. (3) Reject all bids submitted for maintenance and authorize
Staff to secure these services pursuant to the City purchasing
procedures. (4) Adopt the Budget Change Form.
FINANCIAL STATEMENT: The Low Bid received on the model 6190 was $27,214.05 and the low
bid for the Model 2028 with the recommended options was $7,389.15. Sufficient funds are available in
the Internal Service Fund Reserves to replace these copiers. A Budget change is necessary to appropriate
the funds.
DESCRIPTION: At the City Council meeting on April 10, 1995 the City Council authorized the
solicitation of bids for replacement copy machines. Bid packages were provided to seven dealers which
supply Konica copy machines. In addition the notice inviting bids was posted as required by the City
purchasing ordinance. A total of three bids were received by the deadline of 2:00 p.m. on May 1, 1995.
Attached as Exhibit 1 is a summary of the bids received.
MODEL 2028 Bids
Item A requested three alternate bids for a replacement to the City Managerl City Clerk copier located in
the records room. The Alternates requested pricing for machines containing different features on the
same base machine. The Base Bid provided for a 20 bin sorter without a stapler. Option A-I added an
In-Bin Stapler feature and Option A-2 included a 10 Bin sorter without a stapler. In all cases Astro
Business products was the low bidder.
Staff would recommend that the City Council authorize the bid award for the Model 2028 based upon the
Base Bid. The machine which is being replaced only has a 10 Bin sorter. At times this machine is used to
copy brief Agenda Statements, when staff cannot access the larger machine downstairs. Typically the
Agenda preparation involves the production of 20 sets. It is believed that increased availability of a 20
bin sorter would reduce Staff time involved with these occasional copying assignments. The additional
cost for a 20 Bin sorter instead of a 10 Bin sorter is $589.97. Staff does not believe that the stapler
feature included in Bid Alternate A-I, is warranted given the additional 10.5% ($752.53) in cost to obtain
this feature.
Model 6190 Bids
Three bids were also received on the Model 6190, which will replace the main Civic Center Production
copier. In presenting the base bids two bidders Astro Business Products and Caltronics) presented the
exact same price of $27,214.05. As provided for in Dublin Municipal Code Section 2.36.030(1):
If two or more bids received from responsible bidders are for the same total amount or unit price,
quality and service being equal, preference shall be given to the local vendor or the City Council may
accept the lowest bid made by negotiation with the tie bidders and the purchasing agent at the time of
the bid opening.
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ITEMNO..a-. ;
COPIES TO:
CITY CLERK
FILE~
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Astro Business Products was the only firm present at the bid opening and this firm is located in the City
of Dublin. Caltronics has an office in San Leandro and their service technicians are dispatched from
their operations in Sacramento. The City will receive one percent of the total sales tax revenue from any
purchase negotiated with Astro Business Products due to the fact that they are located in the City of
Dublin. In the previous Staff Report on April 10, 1995, Staff had estimated the cost of this machine at
$33,000. The low bids were more than 20 percent less than this original estimate.
Based upon the provisions in the City Purchasing Ordinance Staff recommends that the City Council
award the bid for the Model 6190 to Astro Business Machines.
TRADE - IN ALLOWANCE
All bidders were requested to provide a Trade-In Allowance which would be offered if their bid was
accepted. The application of the allowance offered did not change the firm with the lowest cost bid. The
Model 2028 will replace a Model 2803 originally purchased in August 1987. This model has been out of
production for several years and the manufacturer has indicated that they cannot guarantee the
availability of parts. Therefore, it is recommended that the City dispose of this machine by accepting the
$240.00 Trade-In allowance offered by Astro Business Products as part of their bid.
The Model 6190 will replace a Model 7090 originally purchased by the City in July of 1989. The machine
has produced nearly 3 million copies and the current copy volume has resulted in increased service
requirements. Included with their bid Astro Business Products has offered a Trade-In Allowance of
$850.00. Staff recommends that the City accept the Allowance and dispose of the machine.
MAINTENANCE PROPOSALS
Both machines will have a 90 day manufacturers warranty. Therefore, it is not expected that a service
agreement will need to be in place until after August 1, 1995. The annual service agreement was
presented as a separate "Bid Alternative C". The Bid Specification Form asked whether the
maintenance program offered included the drum, toner, developer, and oil required to maintain the
machine. Space was provided for the bidders to identify any services and/or supplies which were
excluded. All three bidders provided quotations for service agreements which included all supplies.
The all inclusive program included in the three bids, represents a higher level of services than the City
maintains on the six Konica copiers currently owned by the City. Staff has typically purchased toner and
preventative maintenance kits separate from the service agreement. This allows the City to pay a lower
cost for the annual maintenance agreement and the cost of these supplies are absorbed in direct
relationship to the number of copies being produced. These supply costs have typically been allocated as
copier supplies in the individual Department Budgets rather than a "Repair & Maintenance" expense in
the Internal Service Fund.
, Staff believes that it would be advantageous to pursue a service agreement similar to those currently used
by the City, where toner and other supplies are excluded from the annual maintenance agreement. The
annual cost of this level of service is anticipated to be less than $5,000 and would not require another
formal bid process. Staff will also have a minimum of 90 days to negotiate these services with a selected
vendor. Staff recommends that the City Council to formally reject all three Bid Alternative C-
"Maintenance Services" submitted, and authorize Staff to procure the necessary services in accordance
with the City Purchasing procedures.
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CONCLUSION
Staff recommends that the City Council award the bid for the two machines to Astro Business Products
as described in this report, and authorize Staff to issue the necessary Purchase Order. The City Council
should also adopt the Resolution declaring the equipment being replaced as Surplus and authorize Staff
to accept the Trade-In Allowance offered by Astro Business Products. The adopted budget had not
anticipated the replacement of these machines in Fiscal Year 1994/95. Approval of a Budget Change is
necessary to appropriate monies from the Internal Service Fund Equipment Replacement Reserves.
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BIDDER PROPOSAL COMPARISON
For Konica 2028 and 6190 Copier Systems
Bids Submitted May 1, 1995
BIDCOMP.XLS
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RESOLUTION NO. -95
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
DECLARINGSURPLUSPROPERTY:
(photocopiers - Konica Model 2803 and Konica Model 7190)
WHEREAS, the City Council authorized the solicitation of competitive bids for replacement
photocopiers; and
WHEREAS, the Bid Specifications requested that the bidders provide a Trade-In Allowance on
the machines which were slated to be replaced; and
WHEREAS, the lowest responsible bidder was Astro Business Products; and
WHEREAS, the City Manager has determined that the two existing machines are no longer
needed for City purposes; and
WHEREAS, the City is authorized to dispose of personal property pursuant to Government
Code Section 37350.
NOW, THEREFORE, BE IT RESOLVED that the Dublin City Council does hereby declare
that the following equipment is surplus:
1. [Inventory # 525] Model 2803 Konica Copier with stand and 10 Bin Sorter (Purchased August 1987)
2.[Inventory # 839]Model 7090 Konica Copier with 20 Bin Sorter (purchased July 1989)
BE IT FURTHER RESOLVED that the City Council does authorize the Trade-In of the
Equipment stated above to Astro Business Products for a credit as stated in their bid submitted May 1, 1995.
PASSED, APPROVED AND ADOPTED this 8th day of May, 1995.
AYES:
NOES:
ABSENT:
Mayor
ATTEST:
City Clerk
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nUDGET CHANGE FORM
AS PRESENTED TO THE CITY
COUNCIL 5/8/95.
CHANGE FORM #
New Appropriation I xxxxx I Budget Change
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Name: J'llBlf ~O~QBipt~s~E~iS~) I
Account II: Account II: 830-1000-750-070 $ 34,604.00
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Name: Name: (ISF) REVENUE FROM
Account II: RALE ?J EQUIPMENT
ccoun 830-1000-570-001 $ 1,090.00
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Account #: Account #:
REASON FOR BUDGET CHANGE ENTRY: THE ADOPTED 1994/95 BUDGET DID NOT ANTICIPATE THE
REPLACEMENT OF TWO COpy MACHINES. DUE TO THE VOLUME OF USE AND INCREASED MAINTENANCE
FREQUENCIES, IT APPEARED ADVANTAGEOUS TO REPLACE THE MACHINES AT THIS TIME.
THE INTERNAL SERVICE FUND IS USED TO COLLECT DEPARTMENTAL CHARGES OVER THE LIFE OF THE
EQUIPMENT TO PROVIDE A SOURCE OF FUNDING FOR REPLACEMENTS. IT IS PROPOSED THAT THE
REPLACEMENT COME FROM INTERNAL SERVICE FUND RESERVES. THIS BUDGET CHANGE WILL APPROPRI TE
THE FUNDS NECESSARY TO PURCHASE THE REPLACEMENTS BASED UPON BIDS RECEIVED 5/1/95.
THE TRADE-IN ALLOWANCE WILL BE RECOGNIZED AS REVENUE.
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City Manager:
Signature
Date:
Mayor:
GUY S. HOUSTON, MAYOR
Signature
Date: MAY 8, 1995
Posted By:
fonn.lblltlgchllg
Signature
Date:
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