1 STAFF REPORT
DATE: February 11, 2025
TO: Justin Hess, City Manager
FROM: Courtney Padgett, Interim Chief Information Officer BY: Garen Essakhanian, Acting Assistant Chief Information Officer DeAnna Tovar, Senior Administrative Analyst
Mark Nastri, Technology Product Manager
SUBJECT: A pproval of a Five- Year Lease Agreement with UBEO Business Services for the Replacement and Maintenance of Multi -Functional Printer Equipment
RECOMMENDATION
Approve a Five -Year Lease Agreement with UBEO Business Services for the replacement and maintenance of multi-functional printer equipment (Attachments 1-10).
BACKGROUND
The City utilizes managed print services to effectively manage the City’s printing infrastructure, including devices, supplies, and workflows. The City partners with a professional printing service provider that monitors print usage, optimizes device placement, and implements cost -saving measures, ultimately aiming to reduce printing expenses and improve operational efficiency.
DISCUSSION
Since 2009, the City has utilized Business Machines Consultants, Incorporated (BMC) to provide its managed print services. The most recent agreement with BMC ended on May 31, 2022. While it reviewed its printing needs and facilitated a competitive r equest for proposals (RFP) process, the City extended the agreement for three one-year periods as follows: from June 1, 2022 to May 31, 2023; from June 1, 2023 to May 31, 2024, and from June 1, 2024 to May 31, 2025.
Burbank Municipal Code ( BMC) §§ 2-2- 102 establishes procedures for executing agreements. In general , the City competitively solicits proposals and then such
INFORMATION
TECHNOLOGY
2 agreement must be approved by Council if it exceeds $100,000. On November 29, 2023, the City issued RFP Number IT-2023-001 for managed print services . The RFP was posted on PlanetBids, a web- based procurement solution utilized by the City and other public agencies to streamline and manage procurement processes. All proposals were due on February 1, 2024. At the close of the solicitation period, the City received 11 proposals, 10 of which were deemed responsive.
An evaluation team comprised of the Chief Information Officer , the Assistant Chief Information Officer, and the Manager of Technology, evaluated each submitted proposal.
The evaluation included reviewing each proposal’s approach to ensure alignment with the project objectives, as well as examining the offered devices and their functionality for suitability with the City’s needs . Each solution's implementation was reviewed to determine its efficiency and scalability, and managed print services were evaluated for integration and support capabilities. Vendor qualifications and experience, as well as the pricing estimate, were reviewed to verify cost -effectiveness and value for the solution offered.
Based on the totality of the evaluation process, the evaluation team recommends selecting and executing the agreement to UBEO Business Services (UBEO) for the provision of managed print services for the City. UBEO submitted a comprehensive proposal, and their staff responded to all questions in a timely and well-informed manner.
In operation for 68 years, UBEO provides print services to over 30,000 c lients, which consist primarily of government jurisdictions, schools, and mid-sized businesses. UBEO’s government customers include the Los Angeles County, City of Paramount, and Santa Clara County.
Included in the RFP process was a requirement to conduct a study of all City departments to determine the best mix of business print and related technologies. The key objectives of this study were to:
• Identify and document accurate information regarding the City’s business print fleet;
• Recommend the appropriate types, configurations, and quantity of devices for each City location;
• Reduce paper, wherever possible; and
• Evaluate workflows.
Based on this study, UBEO provided a comprehensive evaluation of and recommendations for the City’s print services. The recommendations include a reduction in the total number of printers utilized Citywide, reducing from the current fleet of 340 print devices to 176 total devices (a 48% reduction). The new agreement will replace all current print devices with brand new Hewlitt Packard (HP) devices, standardizing the City’s 3 printing to a single platform. The City will utilize nine models of multifunction devices and four models of desktop devices. Devices are recommended based on past and anticipated future volume and type of use necessary in each operational area. Devices can be added and/or removed in the future based on operational needs.
In addition to the print devices, the proposed agreement includes a print management software solution to enhance efficiency, security, and sustainability in the City’s printing operations. The solution integrates with active directory for seamless user management and authentication, allowing staff to log in using badge, personal identification number (PIN), or active directory ( AD) credentials. It supports one- touch scanning to self -email without requiring an address book and enables secure scanning to cloud services such as Microsoft OneDrive and SharePoint. To reduce paper waste, the system includes auto- secure-print-deletion for unprinted jobs. Additionally, robust reporting capabilities provide usage tracking by user, printer, and device, and centralized management interface streamlines administration. The system will also support card reader configuration and testing for enhanced security and ease of access. This implementation aligns with the City's commitment to operational efficiency, security, and environmental sustainability.
UBEO will be responsible for providing all parts, toner, labor, and response to service calls, as well as monitoring and managing automated meter readings and automated toner fulfillment. As part of the new device deployment, all devices will be brought online, enabling comprehensive reporting and HP fleet firmware management. This functionality will enhance operational efficiency, reduce downtime, and ensure proactive maintenance across the City’s print environment.
The initial term of the proposed agreement is for 60 months (5 years), with up to two one- year extensions, and includes the lease of all equipment and associated management services. Should Council approve the proposed agreement, UBEO has a detailed contract implementation plan, including the purchase of hardware, device deployment , and on - going product management. It is anticipated that all new equipment will be deployed by May 2025.
ENVIRONMENTAL REVIEW
The approval of the agreement for managed print services has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and as such, is not a “project” subject to the requirements of the California Environmental Qual ity Act (CEQA) 14 Cal. Code Regs § 15378.
FISCAL IMPACT
4 The total estimated cost for the 60- month term of the agreement is $1,103,596.20 ($220,719.24 per year). The annual expenses include $126,545.28 in equipment lease costs and $94,173.96 in maintenance agreement costs. Estimated costs are based on projected use and billing will vary based on actual usage. Contract costs may vary slightly throughout the term of the agreement should the City determine to add or reduce devices from the printing fleet.
Equipment lease costs for the general City have been budgeted in the Internal Service Fund 537 (Computer Equipment Replacement Fund) , and within Fund 496 (B urbank Water and Power Electric Fund), Fund 497 (Burbank Water and Power Water Utility Fund), and Fund 535 (Burbank Water and Power Communication Equipment Replacement Fund) for Burbank Water and Power’s portion. Maintenance agreement costs are not included in Fund 537, and City departments will be billed directly by UBEO for the use and maintenance of their respective printers, consistent with the current and past print services agreements. These costs are budgeted within each department’s annual recurring approved budget. T here is no fiscal impact with this recommendation, as there are sufficient funds available in the current budget.
CONCLUSION
Implementing the proposed managed print services agreement with UBEO will modernize the City’s printing infrastructure, improve operational efficiency, and enhance security while reducing costs and environmental impact. The streamlined approach to print management will create a more sustainable and user -friendly environment for City employees, ensuring reliable service and long-term savings.
ATTACHMENT
Attachment 1 - Maintenance Agreement
Attachment 2 - Maintenance Agreement Amendment City of Burbank Attachment 3 - UBEO Equipment Rental Agreement
Attachment 4 - UBEO Equipment Rental Agreement Addendum Attachment 5 - Equipment Schedule A
Attachment 6 - EQ Features Amendment
Attachment 7 - Consent to Assignment
Attachment 8 - Certificate of Liability City of Burbank Attachment 9 - Counsel Opinion
Attachment 10 - Municipal Fiscal Funding Addendum