Title
Staff Report for a City of San Leandro City Council RESOLUTION to Authorize the City Manager to Execute a Five-Year Lease Agreement with Ray Morgan Company for the Canon Color Copier in Central Services (total amount of $71,940 payable in monthly installments of $1,199)
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council approve a resolution that authorizes the City Manager to approve a five-year lease with the Ray Morgan Company for a Canon color copier that is used by staff in Central Services. Based on pricing, to maintain equipment already in use and superior customer service, staff recommends a sole-source purchase.
BACKGROUND
The City of San Leandro has leased a color copier from the Ray Morgan Company (previously known as New Cal) for 10 years. The Canon color copier is used extensively in Central Services to develop high quality printed materials for City departments.
Analysis
The City of San Leandro maintains a high-quality reproduction color copier that is housed in Central Services, located at City Hall. Staff uses it to print promotional marketing materials such as flyers and brochures for City events, including but not limited to the Cherry Festival, Summer Reading booklets, the Senior Resource Fair, Police Department outreach tri-folds and many other events and programs that reach the entire community.
The City is charged monthly over the course of the five-year lease. The amount of the lease is all inclusive and covers the graphic software that is used to develop and send files to the copier, staff training, toner/ink, parts and labor, maintenance and service calls.
The proposed lease represents a $376 monthly savings over the previous agreement, which would save the City $22,560 over the agreement’s five-year period. In addition to competitive pricing, staff is satisfied with the customer service provided by the Ray Morgan Company, who have never failed to respond to mechanical problems or breakdowns within a four-hour window. Given these factors, staff recommends a sole-source purchase for this agreement.
Fiscal Impacts
The total cost over the five-year lease agreement is $71,940, payable in monthly installments of $1,199 ($14,388 per year).
Budget Authority
The Finance Director has determined there are sufficient funds in Account
688-13-002-5610 for the monthly payments.
Attachment(s) to Staff Report
• Ray Morgan Company Working Proposal
PREPARED BY: Kerry Hocker, Graphics Supervisor and Tony Batalla, Information Technology Manager, City Manager’s Office