BOARD MEETING DATE: September 9, 2005
AGENDA NO. 11

Amend Printing Equipment Lease

SYNOPSIS:

In April, the Board extended the lease with Xerox for the print shop’s high-volume copy and printer equipment to permit staff to pursue cost savings by incorporating lease of walk-up floor copiers into a new lease agreement. However, the additional cost for replacing copiers was not included in the budget and the solicitation was revised to include only print shop equipment. Increasing operational inefficiencies caused by copier breakdowns have led staff to reconsider this decision, and staff again recommends replacement of walk-up copiers. As a consequence, this action is to extend the current lease and maintenance agreement for print shop equipment for an additional six months to allow solicitation of bids for a combined print shop equipment and copier lease aimed at enhancing operational efficiency and achieving cost savings from "bundled" pricing. Sufficient funds for extending the current lease have been included in the FY 2005-06 Budget.

COMMITTEE:

Administrative, July 15, 2005, Recommended for Approval

RECOMMENDED ACTION:

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

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At its April meeting, the Board extended to October 31, 2005 the lease with Xerox for AQMD print shop's high-volume copy/printer equipment. This was done to permit staff to pursue cost saving opportunities by combining the lease of both print shop equipment and walk-up floor copiers into a single agreement. However, funds for replacing walk-up floor copiers were not included in the FY 2005-06 Budget and the solicitation proceeded for print shop equipment only. Increasing operational inefficiencies caused by copier breakdowns have led staff to reconsider this decision, and staff again recommends replacement of walk-up copiers.

Proposal

This action is to extend the current lease for print shop equipment for an additional six months so staff can re-solicit bids, this time for print shop equipment and walk-up floor copiers together. This would permit replacing older copiers that require frequent servicing with 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 FY 2005-06 Budget to extend the current print shop equipment lease for an additional six months, at a cost not to exceed $200,000. Funding for replacing copiers will be addressed when staff seeks Board approval to lease new equipment.

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