BOARD MEETING DATE: April 1, 2005
AGENDA NO. 5

Amend Printing Equipment Lease

SYNOPSIS:

The current lease with Xerox for print shop high-volume copy/printer equipment expires April 30, 2005. This action is to extend the term of the lease for an additional six months to permit staff to pursue opportunities for combining the lease of both print shop equipment and walk-up floor copiers into a single agreement, in an effort both to enhance operational efficiency, by assuring technologically compatible equipment, and to achieve cost savings from "bundled" pricing.

COMMITTEE:

Administrative, March 11, 2005, Recommended for Approval

RECOMMENDED ACTION:

Authorize amending the lease with Xerox for printing equipment to extend the lease for six additional months, including maintenance service and consumable supplies, at a cost not to exceed $200,000.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On October 19, 2001, the Board authorized the use of cooperative federal, state, school, and local government procurement lists to lease printing equipment from Xerox. Use of cooperative government procurement lists allowed AQMD to take advantage of larger jurisdictions’ competitive bid processes and volume-purchase pricing. The lease with Xerox expires April 30, 2005. The current annual expenditure for leasing printing equipment – which includes three Xerox Docutechs, with a total average volume of 12 million impressions per year – is approximately $387,000.

Additionally, in 2001, AQMD assumed ownership, at no additional buy-out cost, of 25 Konica copiers at the end of their three-year lease period. These heavily used copiers, which are now seven years old and require frequent repair, were scheduled for replacement during FY 2005-06. Preliminary inquiry into replacement options for both printing equipment and copiers indicates combining both into a single lease may be the most cost-effective approach.

Proposal

Staff recommends extending the current lease for print shop equipment for an additional six months to permit staff to pursue opportunities to enhance operational efficiency by replacing older copiers that require frequent maintenance with new copiers that are compatible with and can be linked to print shop equipment. It is anticipated that volume-purchase cost savings can be achieved by combining acquisition of both printing equipment and floor copiers into a single lease agreement.

Resource Impacts

Sufficient funds are available in the approved FY 2004-05 Budget for the remainder of this fiscal year. However, extension of this lease will require continuing funds to be included in the FY 2005-06 Budget for the four remaining months of the lease.

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