EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: July 26, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Patrick Heisinger, Interim City Manager
BY: Greg Henry, Senior Management Analyst
Bo-Kyoung Kim, Financial Services Manager
Jimmie Tulabing, Senior IT Analyst
SUBJECT: Actions Related to the City's Vendors Responsible for Providing Photo Copier Services
Recommendation
1. Adopt a resolution authorizing the City Manager to increase Ricoh Digital Services contract and purchase order term through June 30, 2022; and
2. Adopt a resolution ratifying the City’s payment to Connection totaling Thirteen Thousand Four Hundred Eighty-Three Dollars and Eighty-Eight Cents ($13,483.88).
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 3: Increase Organizational Effectiveness and Efficiency Priority No. 4: Improve Public Facilities and Infrastructure Ricoh Digital Services
Background
The City of East Palo Alto entered a 3-year (36 months) lease agreement on September 26, 2016, with Ricoh Digital Services (Ricoh) for six copiers throughout City offices. The original lease agreement allowed for a single 2-year extension which then expired on September 26, 2021. On January 18, 2022, staff requested the City Council ratify $17,605.36 in payments.
That request did not include authority for additional service or extend the term.
At the same meeting, staff requested the City Council authorize approval of a new contract with Shamrock Office Solutions for copier service. The new contract did not begin until May 31, 2022. Because of the delay from January 18, 2022, to May 31, 2022, the Ricoh printer service continued. As a result, the City has accumulated additional costs, but with no continued authority to pay.
Analysis
While there are sufficient funds on existing Purchase Orders, the term has expired and was not extended as part of the January request. This request will address this issue and allow for a last payment to Ricoh.
Fiscal Impact
Staff request the City Council authorize the City Manager to increase the term of the existing contract and purchase order to pay the final amounts due Ricoh. There are existing funds available.
Connection
Background
The Information Technology Division (IT) purchased various software and technology supplies such as antivirus program and webcams from Connection since 2003. In FY21-22, the City purchased antivirus software renewal and maintenance renewal program from the vendor; total purchase amount of $13,484.88.
Per City’s Purchasing Limits Guideline, if the accumulated purchasing amount from a vendor is between $10,000 and $27,000 during the fiscal year, staff are required to obtain a minimum of 3 bids and select the lowest responsible bidder. Unfortunately, the Department failed to comply with the procedure because it did not include the first purchasing amount of $2,321.00 and then overlooked the informal bidding procedures for the later purchases.
Since the invoices had been pending, City made a payment on June 28, 2022.
Analysis
The total purchase amount is $13,483.88 with two components,.Please see Table 1 below.
Because staff did not adhere to the City’s purchasing policy, staff now asks to the City Council ratify these purchases.
Fiscal Impact
These expenses were budgeted and paid; there are no additional costs associated with this item.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo Co. Library located at 2415 University Avenue, East Palo Alto.
Environmental
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.
Attachments
1. Resolution for Ricoh Copiers PO
2. Resolution for Connection expense ratification