HomeMy WebLinkAbout163-03 RESOLUTIONRESOLUTION NO. 163-03
•
A RESOLUTION TO APPROVE THE PURCHASE OR
LEASE OF COPIERS FROM CANON USA AND A
MAINTENANCE AGREEMENT WITH PREFERRED
OFFICE PRODUCTS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby approves the purchase or lease of photocopiers/scanners through the
State of Arkansas Contract with Canon USA and approval of a maintenance
agreement for those machines with Preferred Office Products in the amount of
$.0095 per copy.
Sect -ion 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves utilization of the Master Equipment Lease/Purchase
Agreement with Banc of America Leasing and Capital, LLC for this acquisition of
the photocopiers/scanners.
Section 3. That the City Council of the City of Fayetteville, Arkansas
hereby approves a budget adjustment in the amount of $260,000.00.
a nYEI
PASSED and APPROVED this the 4th day of November, 2003.
1
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•
ATTEST:
By: anztcai ant .)
SONDRA SMITH, City Clerk
APPROV
By
DAN COODY, Mayor
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• City of Fayetteville, Arkansas
Budget Adjustment Form
Budget Ycar
2003
Department:
Division:
Program:
Finance & Internal Services
Purchasing
Sales Tax Capital Improvements
Date Requested
11/4/2003
Adjustment Number
Project or Item Requested:
$260,000 in the Copier Purchase Replacements Capital
Project.
Project or Item Deleted:
None. To recognize $260,000 in additional investment
eamings.
Justification of this Increase:
The funding is needed to purchase replacement copiers
for the City of Fayetteville and the Fayetteville Public
Library.
Justification of this Decrease:
Currently for 2003, the Sales Tax Capital Improvements
fund has collected an additional $389,000 over what was
budgeted for the entire year.
Account Name
Increase Budget (Decrease Revenue)
Account Number Amount Project Number
Fixed assets 4470
Account Name
Interest -investments
9470 5801 00
Decrease Budget (Increase Revenue)
Account Number
4470 0947
260,000 03036 1
Amount Project Number
4708 00 260,000
Approval Signatures
Requested By
Date
Date
Date
Budget Office Use Only
Type: A B
Date of Approval
Posted to General Ledger
Posted to Project Accounting
Entered in Category Log
C
E
Initial Date
Initial Date
Initial Date
Initial Date
NAME OF FILE:
CROSS REFERENCE:
Item #
Date
Resolution No. 163-03
Document
1
11.4.03
Res. 163-03 w/copy of budget adjustment
2
10.9.03
Staff
Review Form w/attachments
memo to mayor & city council
copy of
statistics
copy of Ord. 4505
staff review
form for 11.4.03 mtg
3
11.
-1
.03
memo to Peggy Vice
NOTES:
•
CITY COUNCIL AGENDA MEMO
To: Mayor and City Council
Thru: Hugh Earnest, Chief Administrative Officer
Steve Davis, Finance & Internal Services Director
From: Peggy Vice, Purchasing Manger S
Date: October 16th, 2003
Subj: Resolution approving purchase of copiers from Canon USA and approval
of a maintenance agreement with Preferred Office Products at .0095/copy.
•
Recommendation
Staff recommends approval of the purchase of approximately nineteen copiers. This is to
replace copiers that have reached the end of their lifecycle and need to be replaced. Approval of
:.a budget adjustment:.isrrequested.
Background
This is a follow up to Ordinance #4505 which amended the short term leasing ordinance
that amended the ordinance that authorized the City to enter into lease/purchase
agreements. This Ordinance was amended to specifically allow the purchase of copiers
and other equipment.
Staff has tested and evaluated copiers for this lease/purchase. We are ready to order
machines from the State of Arkansas DIS Contract.
Discussion
These machines will allow staff to:
• Scan documents to email.
o This will eliminate the need of some copies by the ability to send
or copy documents digitally.
o This will cut down on faxes thereby reducing long distance
charges, fax machine supplies, new fax equipment, phone lines,
and mailing costs which includes envelopes, paper, prints and
postage.
• Scan documents to a mail box to pull up and copy later directly from the
copier. This will reduce staff time and storage room by the ability to print
upon demand instead of storing paper copies and possibly ending up with
out of date unused documents.
• Send documents from individual personal computers to a more
centralized printer. This option promises to reduce the use of smaller
more expensive printers over time.
• Greatly increased staff productivity with digital technology and reduced
equipment downtime.
• Savings on paper with more availability for 2 -sided printing. Faster and
fuller range of printing solutions.
• Lower cost for maintenance with City wide maintenance program.
• Ability to scan documents to desktop as pdf documents without having to
purchase Adobe Acrobat. This will save up to $100 per person on
software that would normally have to be purchased for each person that is
responsible for each division's website.
Current Cost versus Proposed Cost
By lease/purchasing these copiers utilizing Amendment 78 Leasing Program, the
estimated lease payment with an estimated 3 percent lease rate and a 4 year term would
be approximately $65,262 annually. The lease payment if leased using the conventional
method of leasing from the copier dealer is estimated to be $74,920. This represents a
cost avoidance in excess of $9,000 annually.
Current maintenance cost is from .0104 to .024 per copy. Proposed maintenance cost is
.0095. Based on copier usage over the last twelve months this savings amounts to
$8,494/annually. To take advantage of this savings, in the next four years, the City must
buy out six copier leases at a cost of approximately $14,895. The predicted savings, after
lease buy outs is $19,081.
When the financing savings and the predicted maintenance savings are combined, the
City should realize a reduction in cost, over the 4 years, of approximately $55,000.
Guiding Principle #4
This purchase is an effort by Staff to accomplish "Guiding Principle #4":
• By selecting the most advantageous leasing cost and equipment available
to the City.
• By selecting equipment that provides a means of savings on supplies and
staff time.
• By combining all copiers together in.a package deal to obtain the best
available pricing in the market.
• By providing top-quality, responsive service through new technology to
the Public by being to able post agendas, budget documents, CIP
• •
RESOLUTION NO.
A RESOLUTION TO APPROVE THE PURCHASE OR
LEASE OF COPIERS FROM CANON USA AND A
MAINTENANCE AGREEMENT WITH PREFERRED
OFFICE PRODULIS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby approves the purchase or lease of photocopiers/scanners through the
State of Arkansas Contract with Canon USA and approval of a maintenance
agreement for those machines with Preferred Office Products in the amount of
10095 per copy.
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves utilization of the Master Equipment Lease/Purchase
Agreement with Banc of America Leasing and Capital, LLC for this acquisition of
the photocopiers/scanners.
PASSED and APPROVED this the 4th day of November, 2003
APPROVED: `c
998
ATTEST•
By:
SONDRA SMITH, City Clerk
By:
DAN COODY, Mayor
ItITY OF FAYETTEVILL$
Location Proposed Unit Monthly Volume
Basement -Admin. 5000i 10,000
1st Floor -Admin. 5000i 15,000
2nd Floor -Admin. 5000i 8,500
3rd Floor -Admin. 8500 40,000
Planning/Engineering 8500 35,000
Parks 3300i 8,500
Fire Prevention 2200g 2,000
Police 1st Floor 5000i 13,000
Police 2nd Floor 5000i 8,000
Water and Sewer 3300i 4,000
Solid Waste 3300i 4,500
Street Division Replaces 3 Machines 9,000
5000i
Building Services Replace with Water and 1,000
Sewer 2200
Animal Services 3300i 8,500
Airport 3300i 4,000
Library Administration 5000i 15,000
Library 1st Floor 3300i 5,000
Library 2nd Floor 2200g 4,000
Genealogy 2200g 3,000
Total 198,000
• •
ORDINANCE NO. 4505
AN ORDINANCE TO AMEND ORDINANCE NO. 4478 TO
ADD AUTHORITY TO USE THE MASTER EQUIPMENT
LEASE/PURCHASE AGREEMENT TO FINANCE THE COST
OF ACQUIRING ALL EQUIPMENT AND OTHER PROPERTY
LEGALLY OBTAINABLE PURSUANT TO AMENDMENT 78
WHEREAS, it will be financially advantageous to the City to use the
Master Equipment Lease/Purchase Agreement dated as of June 25, 2003, with
the Banc of America Leasing and Capital LLC to finance the cost of acquiring not
only the fire apparatus (already authorized), but all types of equipment and
property legally obtainable pursuant to Amendment 78.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas
hereby amends Ordinance 4478 by adding Section 8 as follows:
"Section 8. The City's authority to use the Master Equipment
Lease/Purchase Agreement with Banc of America Leasing and
Capital, LLC extends to all equipment and property legally
obtainable pursuant to the terms of Amendment 78 (and is not
restricted to fire apparatus)."
PASSED and APPROVED this the 19th day of August, 2003.
ATTEST -
APPROVED:
By:
By: 624/446-0--) OACCIVC
Sondra Smith, City Clerk
.1
DAN COODY, Mayor
\r
1 STAFF REVIEW FORM - FINANCIAL OBLIGATION
X AGENDA REQUEST
CONTRACT REVIEW
GRANT REVIEW
For the Fayetteville City Council Meeting of: November 4th, 2003
FROM:
Peggy Vice
Name
Purchasing Division Internal Services
Division Department
ACTION REQUIRED: Approval to purchase copiers from the State of Arkansas Contract with
Canon USA and approve an annual maintenance contract with Proferred Office Products after
warranty period.
COST TO CITY:
$260,703.00
Cost of this request
1010..6600.5500.01
Account Number
Project Number
$ - Capital Lease Expense
Category/Project Budget Program Category / Project Name
Funds Used to Date Program / Project Category Name
$ - General
Remaining Balance Fund Name
BUDGET REVIEW:
Budget Manager
Budgeted Item X Budget Adjustment Attached
/0 -17-dl
Date
CONTRACT/GRANT/LEASE REVIEW:
Accounting Manage
fity Attorney
Date
/6/to/vj
Date
•
.1 dtt-l-tti wit -(103
Internal Auditor
1) cfocite
Purchasing Manager
Date
IDI►l `n3
Date
STAFF RECOMMENDATION: Approval
Division Head
Department D. ector
Fi ance a Internal Services
Date
Chief Admistr.s*ve Offi r
Date
2l
�1.9
Date
Mayor Date
Received in Mayor's Office
/ D/20/0 3
Date poey
Cross Reference:
Previous Ord/Resp:
Orig. Contract Date:
Orig. Contract Number:
New Item: Yes No
FAYETTEVItLE
THE CITY OF TAYTTTEVItLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
1
To: Peggy Vice
Purchasing Division
From: Clarice Buffalohead-Pearman
City Clerk Division
Date: November 7, 2003
Re: Res. No. 163-03
Attached is an executed copy of the above resolution, approved by the City Council on November
4, 2003, approving lease/purchase of a copier from Canon USA and approval of a maintenance
agreement for same Upon receipt of the purchase receipt and maintenance agreement please
see that we a copy to attached to said resolution.
This resolution and attachments will be recorded in the city clerk's office and microfilmed. If
anything else is needed please let the clerk's office know.
/cbp
attachments
cc Nancy, Smith, Internal Auditor
Barbara Fell, Budget & Research