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HomeMy WebLinkAboutItem 4.12 EquipReplacmntFnd-830 " - e CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 14, 1994 SUBJECT: Internal Service Fund '830 (Equipment Replacement Fund) Mid-Year Authorizations: (a) Recommended Budget Adjustments ~b) Award of Copier Bid for Police Services Prepared by: Paul S. Rankin, Assistant City Manager/ Administrative Services Director) EXHIBITS ATTACHED: 1. /Budget Change Form. 2. / Snmmary of Bids Received RECOMMENDATION~ 1. \! 2. Authorize additional appropriation for Equipment Replacements Award Copier Bid to AAA Office Systems. Direct Staff to issue appropriate purchase order forms and proceed with the purchase of the copier. FINANCIAL STATEMENT: Base Bid (Copier) $ 9,715.44 (Sufficient Funds have been accumulated in the Internal Service Fund Reserves to replace all of the identified Equipment. A copier service agreement will be obtained once the manufacturer's warranty has lapsed.) DESCRIPTION: Staff is recommending that the City Council adjust the budgeted appropriations for equipment replacements and award a bid for a new copier. Ad;ustment to Appropriations for EQUipment Reolacement As part of the adopted 1993/94 Budget, the City Council approved expendi tures in the Internal Services Fund of $52,000 for machinery and equipment. This was primarily the cost of purchasing and outfitting two marked Police Cars and one unmarked Police Car. The Internal Service Fund charges departments a pro-rated annual expense for equipment purchased with the fund. This builds up a reserve to assure at the end of the useful life there is funding to purchase a replacement. The pro-rated amount works similar to a depreciation schedule. In the most recent year, some of the components within our data processing have failed, primarily on individual work stations which have exceeded their useful life. It became necessary to purchase replacements in order to keep the Department functional. As previously reported to the City Council, the Police copy machine was also becoming unreliable. The following outlines the equipment replacements required, which were not included in the adopted budget: Description Original Purchase ~ Replacement ~ $ 321.19 321.19 1,879.28 9.715.44 $ 12,237.10 (1.176.00) $ 11,061.10 Administrative Services Computer Monitor Police Services Computer Monitor Recreation Laser Printer Police Copy Machine March 1988 Nov. 1988 Nov. 1988 Aug. 1985 Total of Unanticipated Replacement Expenditures Less Revenue from Trade-In Net Appropriation from ISF Reserves ---------------------------------------------------------------------- ITEM NO. COPIES TO: L CITY FILE T I e . The amounts shown are the gross cost of the purchase. Any "Trade-In" value is recorded as a revenue in the Internal Services Fund. A total credit of $1 , 176 was received as Trade-In allowance on the equipment noted above. Staff recommends that the City Council authorize an additional appropriation to the Internal Services Fund Machinery and Equipment account in the amount of $12,240. Adequate reserves plus revenue from the Trade-In Allowances will exist to cover these expenses. Cooier Bid Results The Konica 5003 Copier purchased by the City in 1985 and currently housed at the Dublin Civic Center in Police Services, has exceeded its useful life. This copier is worn out and is requiring frequent repairs. The machine has recorded over 2.9 million copies. AS authorized by the City Council at the meeting of 1/24/94, bid specifications were developed and bid packages were circulated. The bid specifications were modified slightly to accommodate a Konica 41 45, which replaces the model 41 40 identified in the original bid specifications. All bids received were on the same piece of equipment, and none of them exceeded the estimated cost of $13,270 (plus tax) which was noted in the January Staff Report. A summary of the three bids received is presented in Exhibit 1. The low bid was presented by AAA Office Systems, with a bid of $9,715.44 for the equipment. Since the new equipment will have a manufacturer's warranty, it will not be necessary to immediately obtain a service agreement. Staff will evaluate service options and secure the necessary service agreement in the future. Staff recommends that the City Council authorize the additional appropriation and award the copier bid to AAA Office Systems. a: 214cop1er.agenda$14 ADDITIONAL APPROPRIATION PER CITY COUNCIL ACTION 2/14/94. TO BE FUNDED FROM ~F RESERVES (FUND 830) ~ e e CITY Of" DUBLTIl BUDGET CHANGE FORM CHAtlGE FOR,'-l ...1L- new appropriation~ budget transfer IXI bUQgel charwe AcWrt..Nll A"Pcof,r-.oJ-', 0"" increase bbdget account I~INTERNAL SERVICE FUND: laccount II Tl IBO-lOOO - 750 - 070. I n~NTERNAL SERVICE FUND laccount II 12 830- 1000 - 570 - 001 I name Illccount >> 13 I name \account II 14 l~ laccount II 15 I~ laccount II 16 I~ laccollnt II 17 I name laccount II /8 TOTAL BUDGET DEcREASES decrease budget account ~ account It 1 $ name account It 2 $ ~ account It 3 $ ~ . account tl 4 $ name account II 5 :S ~ acr.ount # 6 $ ~ account II 7 :I: ~ ar.r:ount II 8 $ TOTAL BUDGET INCREASES :I: MACHINERY & EQUIPMENT $12,240.00 OTHER REVENUE: SALE OF PROPERTY $ 1,176.00 :I: $ s $ :I: $ $ REASONS, JUSTIFICATION, AND ITElnZED COSTS: AS EXPLAINED IN THE STAFF REPORT PRESENTED 2/14/94, DUE TO EQUIPMENT FAILURES, UNANTICIPATED EXPENDITURES WERE REQUIRED IN FISCAL YEAR 1993/94. ALL OF THE EQUIPMENT BEING REPLACED WAS FULLY DEPRECIATED AND THERE ARE ADEQUATE FUNDS IN THE ISF RESERVE TO ACCOMODATE REPLACEMENT AT THIS TIME. THE INCREASE IN THE REVENUE ACCOUNT REFLECTS REVENUE FROM THE TRADE-IN ALLOWANCE ON EQUIPMENT WHICH WAS REPLACED. CIT'l MAnAGER \ \ date signature CITY comlCIL \ \ date signature . . .j ~ttI:(sI.T .L .' e . EXHIBIT 2 CITY OF DUBLIN POLICE COPIER BID RESULTS Bidder AAA Business Machines Lesher Office Systems Astro Business Products February 7, 1994 Base Bid Trade-In Allowance $ 9,715.44 $ 500.00 10,470.18 ZERO 11,716.94 1,675.00 NET COST $ 9,215.44 10,470.18 10,041. 94