BOARD MEETING DATE: February 3, 2006
AGENDA NO. 18

Execute Lease Contracts for Printing Equipment and Copiers

SYNPOSIS:

On September 9, 2005, the Board approved release of an RFP to solicit lease proposals to replace both print shop equipment and walk-up copiers. This action is to execute five-year lease agreements with Canon Business Solutions for both a high-production black and white printer/copier system for the print shop and walk-up copiers through-out the facility and with Heidelberg USA, Inc., for high-production color equipment for the print shop. The FY 2005-06 cost of these leases, based on past usage and including maintenance service, is estimated to be approximately $63,400, which can be covered within the approved budget. Funding for subsequent years will be requested in future fiscal year budgets.

COMMITTEE:

Administrative, January 13, 2006, Recommended for Approval.

RECOMMENDED ACTIONS:

Authorize the Executive Officer to execute five-year lease agreements with Canon Business Solutions for both a high-production black and white printer/copier system and thirty walk-up floor copiers at an estimated annual cost of $139,040 and $81,021, respectively, and with Heidelberg USA, Inc., for high-production color equipment for the print shop at an estimated annual cost of $118,340. Costs include lease payment, maintenance, and estimated overage charges based on past usage.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD leases high-volume printing equipment for the print shop and has maintenance agreements for thirty AQMD-owned walk-up floor copiers. The print shop equipment lease expires at the end of April 2006. Walk-up copiers, which are seven to fourteen years old, are beyond industry standards for reliability, resulting in significant operational inefficiency. Lease and maintenance costs for the current equipment totals $426,000 per year. Color work is currently handled by outside vendors.

The RFP released in September 2005 solicited both high-production black and white and full color equipment for the print shop, which would provide greater production flexibility and savings in costs and staff time. This action is to obtain new lease agree-ments to replace print shop equipment and walk-up floor copiers and to add color equipment in the print shop.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFQ (RFP) and inviting bids was published in the following publications:

Additionally, potential bidders were notified utilizing the Los Angeles County MTA Di-rectory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724

Bid Evaluation

Fourteen copies of the RFP were mailed out and ten proposals responding to one or more of the three categories included in the RFP were received by close of bidding at 2:00 p.m., October 12, 2005, eight of which were responsive to the RFP. Of the eight responsive proposals, none was a Small Business, Disabled Veteran Business Enterprise or low-emission vehicle business. Attachment A lists responsive proposals and their ratings, which included points for environmentally friendly features of proposed equipment.

Panel Composition

The evaluation panel consisted of a Program Administrator from City of Santa Monica and three staff from AQMD: a Business Services Manager, a Print Shop Supervisor, and a Graphic Arts Illustrator II. Of the four panelists, one is female and three are male; three are Caucasian and one is Hispanic.

Proposal

This action is to execute five-year lease agreements with Canon Business Solutions for both a high-production black and white printer/copier system for the print shop and thirty walk-up copiers throughout the facility and with Heidelberg USA, Inc., for high-production color equipment for the print shop.

Resource Impacts

The annual cost for the print shop’s high-production black and white printer/copier sys-tem is estimated at $139,040, the walk-up floor copiers at $81,021, and the print shop’s high-production color equipment at $118,340, for a total estimated annual cost of $338,401. Costs include lease payment, maintenance, and estimated overage charges based on past usage. Under lease terms, maintenance costs can increase by 5% annually beyond the first year. Sufficient funds are available in the approved FY 2005-06 Budget for estimated lease, maintenance, and overage costs of $63,400 for the remainder of this fiscal year. Funds will be included in subsequent budgets for the five-year terms of the leases.

Attachment
A) Proposal Evaluations

ATTACHMENT A

PROPOSAL EVALUATIONS

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