REPORT TO THE CITY COUNCIL December 10, 2015 FROM: MICHAEL LIMA, Controller/Finance Director Finance Department BY: GARY WATAHIRA, Purchasing Manager Finance Department SUBJECT ..Title Award a contract to Ray Morgan Company in the amount of $319,494, per year to provide copier leasing services for three (3) years with an option to renew for an additional two (2) years. ..Body CONCLUSION and RECOMMENDATION Staff recommends that the City Council award a contract to Ray Morgan Company and authorize the Finance Director or his designee to execute the contract in the amount of $319,494 per year, to provide leased copiers for three years, with an option to renew for two additional years, substantially in the form included with the Request for Proposal (RFP). EXECUTIVE SUMMARY An RFP to provide copier leasing services was issued on July 1, 2015. On September 22, 2015, four proposals were received. The proposers included Ray Morgan Company, American Business Machines, Ricoh USA and Caltronics. All four proposers have the experience and resources to meet the diverse needs of the City, which has a current inventory of 135 copiers; including three production copiers in the Central Printing Division. Staff recommends awarding the copier lease contract to the incumbent service provider, Ray Morgan Company, based on their proposed service program and their cost proposal (which was the lowest of the four respondents),. BACKGROUND The City has a citywide fleet of 135 copiers, including three production copiers in the Central Printing Division. The RFP addressed hard drive security, document management and mobile device capabilities. These functionalities were in addition to administrative features to track prints and manage costs. Staff also required respondents to address technical support for maintenance, repairs and replacements. Additionally, the RFP proposals were required to contain pricing that was based on a price per copy with no minimum volume guarantee. On September 22, 2015, the following proposals were received that projected costs based on historical volumes: * Ray Morgan Company $319,494 * American Business Machines $326,000 * Ricoh USA $399,340 * Caltronics $455,015 All four proposers demonstrated the ability to meet the copier needs of the City. The proposals were reviewed by a committee of City staff members from the Information Services Department, Finance Department and the City Clerk's Office, as well as a staff member from Fresno Unified School District who has experience administering the school district's copier program. The committee reviewed the proposals and determined all proposers should be interviewed. Interviews were held between October 7th and October 9th, 2015. The incumbent Ray Morgan Company was chosen based on their proposed service program and their proposed pricing structure, which included an option for fixed price billing based on previous year's volume which advances financial management and planning. Staff requests approval of the contract substantially in the form presented with the RFP, subject to final approval as to form by the City Attorney's Office. ENVIRONMENTAL FINDING This item is not a "project" for the purposes of the California Environmental Quality Act. LOCAL PREFERENCE Local preference was not implemented because all proposers were local business and staff selected the proposer who submitted the lowest price per year for copier leasing services. FISCAL IMPACT An appropriation for copier lease services is budgeted in Central Printing and also allocated to City Departments through the cost allocation. The proposed pricing is approximately 30 percent lower than prices incurred under the previous contract. This is due to lower per copy costs and scanning functionality being included at no additional cost. Total dollar savings realized is dependent upon number of copies produced. Attachments: Request for Proposals List of Proposers Evaluation and Committee Report Proposal from Ray Morgan Company