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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 10/15/2002 - RESOLUTION 2002-097 APPROVING THE PURCHASE OF SIX t I AGENDA ITEM SUMMARY ITEM NUMBER: 18 DATE: October 15, 2002 FORT COLLINS CITY COUNCIL STAFF: Jim O'Neill SUBJECT: Resolution 2002-097 Approving the Purchase of Six 3M Digital Self Checkout Machines from 3M Corporation as an Exception to the Competitive Purchasing Process. I 1 RECOMMENDATION: Staff recommends adoption of the Resolution. i i FINANCIAL IMPACT: Funds are budgeted for the purchase in the Building Community Choices Library Technology Fund. EXECUTIVE SUMMARY: The Library first purchased 3M self checkout machines in 1995,when two were installed at the Main Library. Two more were purchased in 1996 and 1997. Those units are currently installed at the JHarmony Library. The four machines now in use are at the end of their service lives and are experiencing frequent breakdowns. The self checkout units have been used an average of 80,855 times in each of the last four years. ( Each such session involves the checkout of 4 or 5 items. Approximately 24% of all items borrowed from the libraries each year are checked out using the 3M machines. In addition, the security gates at both libraries are 3M products interfaced with the checkout machines. All books and media have been bar-coded and security stripped to work with the 3M checkout and security system. Each time a self checkout machine is used,the Library saves roughly two minutes of staff time. This translates to more than 1.5 FTE savings per year for salary alone or at least $20,000 saved in each of the last five years. The new checkout machines will have more features, such as allowing customers to retrieve and check out books on hold. The Library estimates that these more capable machines will increase self checkouts to about 40% of total checkouts. DATE: October 15, 2002 2 ITEM NUMBER: 18 The new machines offered by 3M are more upgradeable than previous units,which should allow for longer service lives. 3M has offered six new Digital SelfCheck System machines for$25,345 each, less $6,000 trade credit for the old units, for a total of$117,270 (includes freight). This is a fair price. Comparable systems from other manufacturers use completely different technology and would require considerable additional cost to interface with security gates and for the re-coding of books and media. 3M has provided excellent service and support, and its products are used by libraries all over the country. Customers are comfortable with the technology and the machines integrate well with the City's automated library system. y Section 8-161 of the Code states that any exception to the use of competitive bidding in excess of $100,000 must be approved by the City Council. This Resolution would authorize the purchase of six 3M Digital SelfCheck System self checkout machines as an exception to the use of competitive bid or proposal as provided in Section 8-161(d)(4). . RESOLUTION 2002-097 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE PURCHASE OF SIX 3M DIGITAL SELF CHECKOUT MACHINES FROM 3M CORPORATION AS AN EXCEPTION TO THE COMPETITIVE PURCHASING PROCESS WHEREAS, the Library has four 3M self checkout machines in service and the machines have proven reliable in service since the Library began using them in 1995; and WHEREAS, the Library has received excellent service and support from 3M; and WHEREAS, the machines now in use are at the end of their service lives and require replacement; and WHEREAS, the Purchasing Agent has determined that the purchase of new 3M machines as an exception to the competitive process is in the best interests of the City, due to the customer acceptance of the 3M system and the difficulty and expense involved in changing to any other checkout system; and WHEREAS,funds have been budgeted and appropriated in the Building Community Choices Library Technology Fund and are available; and WHEREAS, Section 8-161(d)(1)(c) of the Code of the City of Fort Collins authorizes the Purchasing Agent to negotiate the purchase of supplies and services without utilizing a competitive bidding process where the Purchasing Agent has determined that a particular material is required to maintain interchangeability or compatibility as part of an existing integrated system; and WHEREAS, the Purchasing Agent has determined that purchase of 3M self checkout machines is necessary to maintain compatibility with existing Library systems; and WHEREAS, the Purchasing Agent has submitted the requisite justification to the City Manager for approval; and WHEREAS, the City Manager has reviewed and concurred in that determination for this acquisition; and WHEREAS, Section 8-161(d)(3) requires approval of this purchasing method by the City Council for items costing more than One Hundred Thousand Dollars($100,000)prior to acquisition. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the purchase of six 3M Digital SelfCheck System machines, in the amount of ONE HUNDRED SEVENTEEN THOUSAND, TWO HUNDRED SEVENTY DOLLARS ($117,270), as an exception to the City's competitive purchasing requirements, is hereby approved. Passed and adopted at a regular meeting of the City Council held this 15th day of October, A.D. 2002. Mayor ATTEST: City Clerk