Explanation
BACKGROUND:
This legislation authorizes the Director of the Department of Technology to modify, increase and renew a contract, established through purchase orders DL000046 (established in the year of 2000) and EL900834 (established in the year of 1999) with the Xerox Corporation, (1) for annual printer maintenance support services, effective June 1, 2010 through March 31, 2011 and (2) to increase and extend EL009900 for additional funds needed to satisfy unforeseen expenditures incurred prior to June 1, 2010 due to the increase in excess prints. The original contract provides language that allows for contract modifications each year on the contract anniversary date. The services associated with this modification were anticipated at the time of executing the original contracts.
Also, this ordinance requests approval of $13,575.60 for contingency funding within the $80,000.00 for the period June 1, 2010 through March 31, 2011, to be utilized in the event of excess prints, overruns and/or any unforeseen circumstances. These contingency funds will not be utilized if not needed.
The Department of Technology established the above-mentioned contracts in January 2000 and October 1999, respectively, for sixty-month lease/purchase agreements with the Xerox Corporation for two Xerox high-speed 4635MX laser-printing systems operated by the city. Upon the lease expiration for these systems, the Department of Technology exercised the right to purchase both systems. At that time, the two original purchase orders were modified into one contract agreement for the renewal of future maintenance. These systems provide high volume printing support services critical to many city applications such as payroll, wage and tax statements, Auditor's warrants, jury summons, income tax forms and water bills. The cost of this modification was determined through negotiations with the vendor upon receipt of a quote and researched cost analysis.
The Department of Technology also needs to extend the current purchase order EL009900 and encumber additional funds in the amount $8,000 to satisfy costs that were incurred during the contract period June 1, 2009 through May 31, 2010 since the funds were exhausted due to unforeseen excess prints. The additional funds were not foreseen as the number of prints ran varies and only an estimate can be determined at the beginning of the contract period. A bid waiver was utilized as costs were incurred during the coverage period. The cost, terms and conditions were determined in accordance with the original agreement.
This ordinance requests approval to continue services provided by the Xerox Corporation and to waive the competitive bidding provisions of the Columbus City Codes (Section 329) to continue services with the existing company and existing contract.
EMERGENCY DESIGNATION:
Emergency designation is being requested to immediately facilitate prompt payment; to continue with services that are necessary to support daily operations; to ensure no service interruptions.
FISCAL IMPACT:
During fiscal years 2008 and 2009, $99,132.12 and $77,966.88 were expended respectively with the Xerox Corporation for annual maintenance support services associated with both printers. The total cost of this ordinance is $88,000.00, (1) $80,000.00 for the period June 1, 2010 through March 31, 2011 (which includes $13,575.60 contingency funds to be utilized in the event of excess prints, overruns and/or any unforeseen circumstances), representing the maintenance cost for both printer systems and (2) to increase and extend EL009900 for $8,000.00 for additional funds needed to satisfy unforeseen expenditures incurred prior to June 1, 2010 due to the increase in excess prints in the amount of $8,000.00. Funding is budgeted in the Information Services Division Budget, and available within the Information Services Fund. The aggregate contract total, including this modification, through the Department of Technology is $1,411,751.54.
CONTRACT COMPLIANCE NUMBER:
Vendor Name: Xerox Corporation CC #: 16-0468020 Expiration Date: 04/06/2011
Title
To authorize the Director of the Department of Technology to modify, increase and renew a contract with Xerox Corporation for annual printer maintenance support services and additional funds needed to satisfy unforeseen prior expenditures; to waive the competitive bidding provisions of the Columbus City Codes; to authorize the expenditure of $88,000.00 from the Department of Technology, Information Services Fund; and to declare an emergency. ($88,000.00)
Body
WHEREAS, the Department of Technology established contracts for two sixty-month lease/purchase agreements with the Xerox Corporation with the option to renew each year on the anniversary date, and
WHEREAS, upon the lease expiration of these systems, the Department of Technology exercised the right to purchase both systems, these systems provide high volume printing support services that are critical to many city applications such as payroll, wage and tax statements, auditor's warrants, jury summons, income tax forms and water bills, and
WHEREAS, the total cost of this contract modification is $88,000.00, (1) $80,000.00 for the period June 1, 2010 through March 31, 2011 and (2) to increase and extend EL009900 for $8,000.00 for additional funds needed to satisfy unforeseen expenditures incurred prior to June 1, 2010 due to the increase in excess prints in the amount of $8,000.00, with funding budgeted in the Information Services Division budget and available within the Information Services Fund, and
WHEREAS, this ordinance requests approval of $13,575.60 for contingency funding within the $80,000.00 for the period June 1, 2010 through March 31, 2011, to be utilized in the event of excess prints, overruns and/or any unforeseen circumstances. These contingency funds will not be utilized if not needed.
WHEREAS, this ordinance requests approval to continue services provided by the Xerox Corporation, and to waive the competitive bidding provisions of the Columbus City Codes (Section 329); and
WHEREAS, an emergency exists in the usual and daily operations of the Department of Technology in that it is necessary to immediately modify, increase and renew a contract with Xerox Corporation for annual maintenance support services for two printing systems to facilitate prompt contract execution and related payment for services, for the immediate preservation of the public health, peace, property, safety and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1: That the Director of the Department of Technology be and is hereby authorized to modify, increase and renew a contract established under Purchase Order EL900834 and DL000046 with Xerox Corporation for (1) $80,000.00 which represents annual maintenance support services for the city's high-speed high-volume laser printers; with a coverage period of ten months from June 1, 2010 through March 31, 2011and (2) to increase and extend EL009900 for $8,000.00 for additional funds needed to satisfy unforeseen expenditures incurred prior to June 1, 2010 due to the increase in excess prints, with the total cost of this ordinance not to to exceed $88,000.00.
SECTION 2: That for the purpose stated in Section 1, the expenditure of $88,000.00 or so much thereof as may be necessary is hereby authorized to be expended from:
Division: 47-02| Fund: 514 |Subfund: 001| OCA Code: 470202| Obj. Level One: 03 | Obj. Level Three: 3372| Amount: $80,000.00
Division: 47-02| Fund: 514 |Subfund: 001| OCA Code: 470202| Obj. Level One: 03 | Obj. Level Three: 3372| Amount: $8,000.00
SECTION 3: That the City Auditor is authorized to make any accounting changes to revise the funding source associated with this contract modification and expenditure of funds associated with this contract.
SECTION 4: That the request to modify, increase and extend a contract with Xerox Corporation and to waive the competitive bidding provisions of the Columbus City Codes (Section 329) is authorized.
SECTION 5: That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.