| | | | | | | | Agenda Item - 3.j.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Anand Rao
| | Dept.: | City Manager
| Dept.: | Information Technology
| | Subject: | Authorize an increase to the purchase order with MRC, formerly known as SoCal Office Technologies, a Xerox Company for 27 Xerox multifunction copy machines. (Cost: $120,000) (Action Item) | Date: | 3/22/2022 |
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| | | | | | | | OBJECTIVE
To secure City Council authorization to increase a purchase order with MRC, formerly known as SoCal Office Technologies, a Xerox Company, for an additional $120,000 for 12-months for 27 multifunction copy machines with accompanying service and maintenance contract. |
| | | | | | | | BACKGROUND
The City is currently operating under a 60-month lease and maintenance contract for 27 multifunction copy machines for a total of $644,869.55 that the City Council approved on May 23, 2017. The yearly cost is approximately $120,000 which includes the lease payment, maintenance, supplies and support. The lease and maintenance contract will expire on June 1, 2022. If the City does not give a nonrenewal notice to terminate the contract, the City will then enter into a new lease agreement with a 3-month term identical to the current contract. The 3-month term continues to renew until the City gives a 30-day notice of nonrenewal to terminate the contract.
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| | | | | | | | DISCUSSION
The Information Technology department is planning to release a request for proposals for new machines as a result of the expiration of the current contract. Due to the construction of City Hall and the limited accessibility to remove and install new equipment, the City would like to extend the current contract for 3-month periods, up to a 12-month maximum, until construction is completed and a request for proposals can be issued with an exact contract start date and timeline for installation. Construction of City Hall should be completed around October 2022.
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| | | | | | | | FINANCIAL IMPACT
The total cost for this contract will be up to $120,000 and the funds are normal operating expenses adopted as part of the Information Technology annual budget. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
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Authorize the Finance Director to increase a purchase order with MRC, formerly known as SoCal Office Technologies, a Xerox company, for no more than $120,000 for 12-months for 27 multifunction copy machines with accompanying service and maintenance contract.
By: Katrena Schulze, Senior Administrative Analyst
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