HomeMy WebLinkAboutAgenda Report - March 7, 2007 E-06AGENDA ITEM F"
ink CITY OF LODI
DCII. COMMUNICATION
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AGENDA TITLE: Adopt Resolution Approving Equipment Lease Agreement and Authorizing
City Manager to Execute Agreement with Ray Morgan Company, of StockbDn, for
Large 0ormat Copier ($23,850)
MEETING DATE: March 7, 2007
PREPAIWD $Y: Pubic Works Director
RECOMDEIDED ACTION: Adopt a resolution approving an equipment lease agreement and
authorizing the City Manager to execute the agreement with
Ray Morgan Company for a large format copier.
BACKGI11Ot)114D INFORMATION: The existing large format copier serving the needs of the Public Works
and Community Development Departments has reached the end of its
10 -year useful life and replacements parts have become difficult to
obtain. The machine needs to be replaced.
The existing machine was purchased at a cost of $15,000. The cost for the maintenance agreement, paper and
toner supplies for this machine amount to approximately $171 per month. On average, the machine processes
1,000 square feet of copied material per month.
A replacement machine providing similar utility but improved print speed and paper handling options would cost
in the neighborhood of $21,000 plus tax. A lease option was researched and determined to be a cost-effective
alternative to purchase. Under the terms of the recommended 60 -month lease, the machine would be returned
to the supplier at no cost to the City. At that time, a lease for a new machine could be bid and selected.
Three bids were solicited for the lease of a KIP 3000 series large format copier. The successful low bidder was
Ray Morgan Company, of Stockton, with a bid of $398 per month for a lease period of 60 months. This includes
the lease of the machine and maintenance. The cost of paper and toner is estimated to be $57 per month for
1,000 square feet of copied material per month.
The three informal bids received are summarized below.
Bidder Location Bid
Ray Morgan Company Stockton $398
SWckton Blue Stockton $400
California Survey and hafting Modesto $405
FISCAL WPACT: The estimated cost to purchase a new machine and maintenance agreement is
$23,685 and the cost of the lease which includes maintenance is $23,850. An
advantage of the lease program is that the lease payments are extended over
a 60 -month period.
FUNDING AVAILABLE: Fundinqjor the lease would come from the operating accounts of
Pub' orJC�2�13y} and Community Development (1I3).
Iva r}s; fidget Manager
andy Hatch Steve Mann Richard C. Prima, Jr.
Community Development Director Information Systems Div. Mgr. Public Works Director
Prepared by F. Wally Sandelin, City EngineeriDeputy Public Works director
RCP/FW SlprrN
APPROVED:
Blair Ki ity Manager
K1WPICOUNCIL\071LargeFormatCopier.doc 77731212D07
RESOLUTION NO. 2007-36
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING
THE EQUIPMENT LEASE AGREEMENT FOR REPLACEMENT
OF A LARGE FORMAT COPIER FOR THE PUBLIC WORKS
AND COMMUNITY DEVELOPMENT DEPARTMENTS
WHEREAS, the exiisting large format copier serving the needs of the Public Works and
Community Development Departments has reached the end of its ten-year useful life and
replacements parts have become difficult to obtain; and
WHEREAS, staff researched a lease option and determined it to be a cost-effective
alternative to purchase under the terms of a 60 -month lease, after which time the machine would
be returned to the supplier at no cost to the City; and
WHEREAS, three informal bids were solicited for the lease of a KIP 3000 large format
copier with the successful low bidder being the Ray Morgan Company, of Stockton, with a bid of
$398 per month for a lease period of 60 months. This includes the lease of the machine and
maintenance. The cost of paper and toner is estimated to be $57 per month for 1,000 square
feet of copied material per month; and
WHEREAS, the three informal bids received are summarized below:
Bidgler LOCSOM
Ray Morgan Company Stockton
Stockton Blue Stockton $400
California Survey and Drafting Modesto $405
WHEREAS, staff recommends that the City Council approve an equipment lease
agreement with the Ray Morgan Company for a KIP 3000 large format copier for the Public
Works and Community Development Departments.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council hefeby approves the
equipment lease agreement for a KIP 3000 large format copier, and further authorizes the City
Manager to execute a 60 -month lease agreement on behalf of the City of Lodi with Ray Morgan
Company, of Stockton, CaNfornia, in an amount not to exceed $23,850.
Dated: March 7, 2007
I hereby certify that Resolution No. 2007-36 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held March 7, 2007 by the following vote:
AYES:
COUNCIL MEMBERS — Hansen, Hitchcock, Katzakian, Mounce, and
Mayor Johnson
NOES:
COUNCIL MEMBERS -- None
ABSENT:
COUNCIL MEMBERS — None
ABSTAIN:
COUNCIL MEMBERS — None
JOHL
City Clerk
2007-36