To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Contract Amendment No. 2 with J.J.R. Enterprises, Inc., dba Caltronics Business Systems
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Purchasing Agent to execute, on behalf of the County, an amendment to a master leasing agreement with J.R.R. Enterprises, Inc., dba Caltronics Business Systems, effective July 1, 2024, to increase the payment limit from $12,000,000, to $20,000,000, and to update the models and specifications of copiers and multifunction devices that County departments may lease for 36 to 60 months through purchase orders issued between July 1, 2024, and June 30, 2027, as recommended by the Public Works Director, Countywide.
FISCAL IMPACT:
Individual County departments will determine if they will lease copiers and multifunction devices under the agreement, and they will identify the funding source(s). While this action has no fiscal impact, each lease will have a fiscal impact that will be determined on an individual basis. The aggregate total of all leases will not exceed $20,000,000.
BACKGROUND:
On July 23, 2019, the Purchasing Agent was authorized to execute an agreement with J.J.R. Enterprises, Inc., dba Caltronics Business Systems, for copier/multifunction device rentals and managed print services. On June 16, 2020, The Board authorized the Purchasing Agent to execute Amendment No. 1, to the Master Agreement for specifications, functionality, and pricing of models of copiers and multifunction devices changes.
Under the Agreement, as previously amended, County departments could lease copiers and multifunction devices using purchase orders that incorporated the Agreement by reference. The lease term could be between 36 and 60 months. All leasing purchase orders needed to be issued by June 30, 2024.
County departments desire to continue using this leasing program. This Amendment No. 2 will extend, through June 30, 2027, the time by which County departments can lease copiers and multifunction devices under purchase orders. Individual departments will determine the equipment they will lease, and the term - from between 36 and 60 months.
The amendment also will allow County departments to lease public-use copiers and multifunction devices. The amendment requires Caltronics to cooperate with the integration of the public-use payment system and the copier or multifunction device. Currently, only the Library has expressed a need for a public-use copier.
CONSEQUENCE OF NEGATIVE ACTION:
If the amendment is not approved, the County will have limited choices of copiers which will result in paying higher costs.