CA Review AZ
Meeting Date: May 14, 2024
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Maria Callander, Information Technology Director [email protected], 442-339-2454
Mike Lesh, Senior Program Manager
[email protected], 442-339-5701
Subject: Purchase of Ricoh Multi-Functional Printers from Ricoh USA, Inc.
Districts: All
Recommended Action
Adopt a resolution authorizing the City Manager or designee to execute all necessary documents to procure multi-function printers from Ricoh USA, Inc. in an amount not to exceed $730,939.65.
Executive Summar y
Ricoh USA, Inc. (“Ricoh”) multi-function printers enable city staff to readily print, copy and scan documents at any Ricoh printer at any city facility, wherever they are needed. The city’s 125 printers purchased between 2015 and 2021 are wearing out. While printed documents are still needed for city operations, the demand for them has and will continue to decrease due to the ongoing shift toward digital platforms.
Staff analyzed the city’s past use of printers and developed a plan to provide the same level of productivity and efficiency with 34 fewer printers, which will reduce costs.
The City Council is now being asked to authorize the City Manager or a designee to purchase 86 new multi-function printers from Ricoh USA, Inc. for an amount not to exceed $730,939.65.
The City Council’s approval is required under Carlsbad Municipal Code Section 3.28.050(D)(4), which applies to the procurement of goods, City Council approval is required because the purchase will cost more than $100,000 within a single calendar year.
Explanation & Analysis
Background
The city leased printers from Ricoh in 2015, when the City Council authorized the Mayor to execute a master service agreement with the company (Resolution No. 2015-200). The master service agreement contained a five-year $2,055,781 lease for Ricoh multi-function printers as well as Ricoh’s printer-related services.
May 14, 2024
Item #3 Page 1 of 19
The city extended the agreement on Feb. 23, 2021, with an amendment to the agreement renewing managed print services for two years with an option for a third (Resolution No. 2021- 048). The city made all the required lease payments and executed its option to own the 125 existing printers originally purchased between 2015 and 2021 including any amendments to the original agreement.
The city did not replace any of its printers under the 2021 extended agreement. Due to uncertainty in the market during the pandemic, staff chose to keep operational costs low by not starting a lease for new printers or proposing the city make a large upfront payment to purchase them.
The city’s printers are now showing signs of age and need replacement. While there is no fixed rule, the common industry practice is to replace large multi-function printers every five years to stay up to date with technology and minimize the risk of unexpected breakdowns.
Staff worked with Ricoh to strategically “right-size” the city’s printer inventory by aligning it with actual usage patterns and optimizing the placement in certain city offices. Ricoh’s proposal (Attachment A to Exhibit 1) was developed based on the city's historical use, department business processes and manufacturer recommendations.
Cooperative purchasing agreement
Ricoh USA, Inc. is the vendor through which the city purchased its multi-function printer fleet in 2015. Replacement of the printer fleet from Ricoh would be purchased through a cooperative purchasing agreement, in compliance with Carlsbad Municipal Code Section 3.28.100 – Cooperative Purchasing. Ricoh USA, Inc. is an OMNIA partner for print goods and services under the University of California contract #2021002788.
Carlsbad Municipal Code Section 3.28.100 gives the city’s purchasing officer the authority to join with other public or quasi-public agencies in cooperative purchasing plans or programs for the purchase of goods or services when determined by the purchasing officer to be in the city’s best interest. The purchasing officer may buy directly from a vendor at a price established by another public agency when the other agency has made its purchase in a competitive manner.
Proposed new agreement
The replacement of our multi-function printers is needed to keep the city’s paper dependent processes running smoothly. Staff are recommending the city purchase the new printers rather than leasing them. This purchase provides the following benefits:
• Improved productivity. Our
outdated printers cause significant delays and interruptions with frequent break downs.
• Cost savings. Ope rational costs will be reduced by changing from a flat-fee for service to a usage-based model.
• Enhanced security. New models have the most up-to-date security features and protection against unauthorized access. The city’s printing infrastructure is currently limited to the security features of printers that are nearly ten years old. • Funding. The city has already approved and budgeted for the replacement of its Ricoh multi-functional printer fleet in fiscal year 2023-24.
May 14, 2024
Item #3 Page 2 of 19
After the deployment of the new printers, staff will terminate the existing service agreement and establish a new agreement. The costs will be based on how much the services are used.
This will cost about $32,000 less on average for each year as compared to the current agreement, which includes a fixed base rate plus additional charges if the city exceeds a certain level of service.
The service rates under a new contract will be influenced by the age and model of the printers, so replacing our existing printers is essential to secure the lowest possible rates. This move provides cost savings to the operational budget allocated to printing and improves efficiencies.
This savings will be recognized upon the completed installment of the new printer fleet.
Compared to the 2015 five-year printer lease, which cost $1,591,560, this one-time $730,939.65 purchase will cost $861,167 less (not including services). Upon delivery of the new printers, a new service agreement with Ricoh will be executed with an estimated cost of $301,500 over five years, less than the 2015 five-year services cost of $464,221.
Fiscal Analysis
The Strategic Digital Transformation Investment Program approved during the fiscal year 2023- 24 annual budget process allocated $700,000 from the Technology Investment Capital Fund to address the need to replace our aging multi-function printers. This funding will cover most of the one-time purchase cost of the new printers. Savings from the Information Technology Replacement fund will be used to cover the remaining $30,939.65 of the purchase price.
Printer purchase funding
FY 2023-24 Strategic Digital Transformation Investment Program $700,000.00 Information Technology Replacement fund savings $30,939.65 Total purchase cost $730,939.65
Additional appropriation $0.00
The IT Department will also collect replacement funds through a five-year life cycle to ensure the appropriate funds are collected for future replacement.
Next Steps
With the City Council’s approval, staff will purchase 86 new Ricoh printers for a total of $730,939.65. Included in this cost, Ricoh will provide proper removal, hard drive destruction, and recycle services of the old multi-functional printers. Five Ricoh multi-function printers purchased in 2022 and 2023 will not be replaced, bringing the city’s total to 91 Ricoh multi- function printers.
Following the printer fleet replacement and separate from this purchase with Ricoh, staff will be concluding the current service contract. The city will transition to a new service agreement that features a reduced rate and a usage-based billing model. The proposed contract will be presented to the City Manager for approval. The city’s estimated annual service cost under the new agreement is estimated to be $60,300 annually.
May 14, 2024
Item #3 Page 3 of 19
Environmental Evaluation
This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment.
Exhibits
1. City Council resolution
2. City Purchasing Officer’s memorandum
May 14, 2024
Item #3 Page 4 of 19
RESOLUTION NO. 2024-095
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER OR DESIGN EE TO EXECUTE
ALL NECESSARY DOCUMENTS TO PROCURE MULTI-FUNCTION PRINTERS FROM RICOH USA, INC. IN AN AMOUNT NOT TO EXCEED $730,939.65.
WHEREAS, the City of Carlsbad has historically owned and operated its own multi-vendor, multi model fleet of print related devices; and
WHEREAS, in November 2014 the lnforma�ion Technology Department staff, along with representatives from various other city departments, developed and published a request for proposal for managed print services; and
WHEREAS, on July 28, 2015, City Council adopted Resolution No. 2015-200 authorizing the city manager to execute a master service agreement with Ricoh USA, Inc. for a five-year lease of printers and managed print services; and
WHEREAS, on February 23, 2021, City Council adopted Resolution No. 2021-048 authorizing the City Manager to extend the master service agreement for three years and to complete the purchase of the leased printers; and
WHEREAS, the printers purchased through the master service agreement with Ricoh USA, Inc. are substantially past end-of-life and are in need of replacement; and WHEREAS, Ricoh USA, Inc. is an authorized OMNIA partner for print goods and services under the University of California contract #2021002788 for the purchasing of multi-function printers; and WHEREAS, under Carlsbad Municipal Code Section 3.28.100, the purchasing officer has the authority to join with other public agencies in cooperative purchasing plans for the purchase of goods or services when it is in the city's best interest; and WHEREAS, the purchasing officer has reviewed the purchase and agrees that the use of the cooperative purchase agreement is in the city's best interest; and WHEREAS, the budget to procure the multi-functional printers is available in the Information Technology Department's fiscal year 2023-24 Information Technology Replacement Fund and Strategic Digital Transformation Investment Program; and
WHEREAS, the funding for future annual service and maintenance will be considered in the Information Technology Department's annual budget requests.
Exhibit 1
May 14, 2024 Item #3 Page 5 of 19
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That City Manager, or a designee, is authorized to execute all required documents necessary to procure multi-function printers from Ricoh USA, Inc. in amount not to exceed $730,939.65 as reflected in Attachment A.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 14th day of May, 2024, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
Exhibit 1
I
May 14, 2024 Item #3 Page 6 of 19
City of Carlsbad
Print Services Proposal
Proposal good through 05/31/2024
PREPARED BY:
Bill Wirth
Phone: 760-586-5831
Email: [email protected]
Attachment A
May 14, 2024
Item #3 Page 7 of 19
RICOH
imagine. change.
( city of
Carlsbad
California
Table of contents
Equipment Models:
• Ricoh C8000 Specifications
• Ricoh C6010 Specifications
• Ricoh IM C4510 Specifications
• Ricoh IM C300F
• Ricoh IM 460F
• New Investment/Spend
May 14, 2024
Item #3 Page 8 of 19
I
The Ricoh IM C8000 is a color multifunction product that offers print, copy, scan capabilities in a compact design.
The Ricoh IM C8000 combines economical, high-quality color, advanced scanning capabilities, flexible paper handling and the latest security features.
Advantage Ricoh
✓ #1 in business color global
market share for five consecutive
years – Gartner Group
✓ Award winning products
✓ Recognized industry leader in
sustainability
✓ Only office equipment
manufacturer to be awarded the
Deming Award twice – for quality
control
Ricoh IM C8000
Key Features Included:
◼ 80 PPM in Color and B/W
◼ Copy, print & scan capable
◼ 220 Sheet Single Pass Document Feeder
◼ 3,700 Sheet Paper Capacity
◼ Up to 12” x 18” Media
◼ 100 Sheet By-Pass Tray
◼ 2,000 Sheet Booklet Finisher Stapler
◼ Punch Kit
◼ Multi Fold Unit
◼ 10.1” Smart Operation Panel
◼ Full-color scanning
◼ Up to 300gsm paper through main drawers
and by-pass
◼ Duplexing (up to 256gsm)
◼ Power Filter Included
◼ Note Power requirements: 208V – 240V /
12A, 60Hz
May 14, 2024
Item #3 Page 9 of 19
U!!lll!!!!!!J
" "" "11111
11111
RICOH
imagine. change. Our earth .
Our tomorrow
The Ricoh IM C8000 is a color multifunction product that offers print, copy, scan capabilities in a compact design.
The Ricoh IM C8000 combines economical, high-quality color, advanced scanning capabilities, flexible paper handling and the latest security features.
Advantage Ricoh
✓ #1 in business color global
market share for five consecutive
years – Gartner Group
✓ Award winning products
✓ Recognized industry leader in
sustainability
✓ Only office equipment
manufacturer to be awarded the
Deming Award twice – for quality
control
Ricoh IM C6010
Key Features Included:
◼ 60 PPM in Color and B/W
◼ Copy, print & scan capable
◼ 220 Sheet Single Pass Document Feeder
◼ 3,100 Sheet Paper Capacity
◼ Up to 12” x 18” Media
◼ 100 Sheet By-Pass Tray
◼ Floor Finisher Stapler
◼ 10.1” Smart Operation Panel
◼ Full-color scanning
◼ Power Filter Included
May 14, 2024
Item #3 Page 10 of 19
RICOH
imagine. change. Our earth.
Our tomorrow
The Ricoh IM C4510 is a color multifunction product that offers print, copy, scan capabilities in a compact design.
The Ricoh IM C4510 combines economical, high-quality color, advanced scanning capabilities, flexible paper handling and the latest security features.
Advantage Ricoh
✓ #1 in business color global
market share for five consecutive
years – Gartner Group
✓ Award winning products
✓ Recognized industry leader in
sustainability
✓ Only office equipment
manufacturer to be awarded the
Deming Award twice – for quality
control
Ricoh IMC4510
Key Features Included:
◼ 45 PPM in Color and B/W
◼ Copy, print & scan capable
◼ 220 Sheet Single Pass Document Feeder
◼ 4 X 550 sheet paper drawers
◼ Up to 12” x 18” Media
◼ Floor Finisher/Stapler
◼ 100 Sheet By-Pass Tray
◼ Smart Operation Panel
◼ Full-color scanning
◼ Up to 300gsm paper through main drawers
and by-pass
◼ Duplexing (up to 256gsm)
◼ Power Filter Included
May 14, 2024
Item #3 Page 11 of 19
RICOH
imagine. change. Our earth .
Our tomorrow
The Ricoh IM C300F is a color multifunction product that offers print, copy, scan capabilities in a compact design.
The Ricoh IM C300F combines economical, high-quality color, advanced scanning capabilities, flexible paper handling and the latest security features.
Advantage Ricoh
✓ #1 in business color global
market share for five consecutive
years – Gartner Group
✓ Award winning products
✓ Recognized industry leader in
sustainability
✓ Only office equipment
manufacturer to be awarded the
Deming Award twice – for quality
control
Ricoh IMC 300F
Key Features Included:
◼ 31 PPM in Color and B/W
◼ Copy, print, scan, & fax capable
◼ Dual Scan Automatic Document Feeder
◼ 250 sheet paper drawer
◼ 100 Sheet by-pass paper drawer
◼ Up to 81/2” x 14” Media
◼ 100 Sheet By-Pass Tray
◼ Smart Operation Panel
◼ Full-color scanning
◼ 2 GB Standard memory
◼ Duplexing (up to 256gsm)
◼ Power Filter Included
May 14, 2024
Item #3 Page 12 of 19
RICOH
imagine. change. Our earth.
Our tomorrow
The Ricoh IM 460F is a color multifunction product that offers print, copy, scan and fax capabilities in a compact design. The Ricoh IM 460F combines economical, high-quality color, advanced scanning capabilities, flexible paper handling and the latest security features.
Advantage Ricoh
✓ #1 in business color global
market share for five consecutive
years – Gartner Group
✓ Award winning products
✓ Recognized industry leader in
sustainability
✓ Only office equipment
manufacturer to be awarded the
Deming Award twice – for quality
control
Ricoh IM 460F
Standard Features Include
◼ 10.1" Smart Operation Panel
◼ Mobile Printing
◼ PostScript3 Emulation
◼ 500-Sheet Paper Tray
◼ 100-Sheet Bypass Tray
◼ Integrated Duplex
◼ 320 GB Hard Disk Drive
◼ 2 GB RAM
◼ Print, Copy, Scan and Fax Capabilities
May 14, 2024
Item #3 Page 13 of 19
_j__
RICOH
imagine. change.
Our earth.
Our tomor row
Recommended Equipment:
➢ (5) RICOH IM C8000 Color MFP
✓ Booklet Finisher/Staplers | Hole Punch | Multi Fold units ➢ (3) RICOH IM C6010 Color MFP
✓ 2,000 Sheet Large Capacity Paper Drawer | Two 500 Sheet Paper drawers | Floor Finisher/Staplers
➢ (33) RICOH IM C4510 Color MFP
✓ Four 500 Sheet paper drawers | Floor Finisher/Stapler ➢ (41) RICOH IM C300F Color MFP
➢ (2) IM 430F black/white MFP
➢ (2) Ricoh MICR Printers (includes 5 yr. service plan) Investment Summary
Investment Details
Let us help you build business with world-class technology from Ricoh. When versatility, quality, service and accountability are important, Ricoh is the obvious choice! Recommended New Fleet: - 86 Units
Pricing Includes:
Project management team for Delivery,
Installation and configuration
Network print and scan set-up
Control Suite Deployment and
Implementation
Includes equipment delivery, Installation,
network set-up, configuration and
training.
Service performed by authorized Ricoh
Service Technicians
Supplies (except paper/media)
Access to RICOH educational & learning
resources
Equipment removal, disposal/recycle
Hard Drive Removal and destruction
Block of time (80) hrs. for Professional
Services
Notes:
Ricoh Managed Services Support Center
(RMSSC) invoiced at $8.00 per devise or
$672.00 per month for 84 units.
Service & Supply Program:
➢ Per image investment
✓ $.0425 - Color, $.0069 - B&W
Includes all parts, labor emergency service, preventative maintenance, drums & toner No monthly minimums, usage
only, rates. Excludes paper.
# Model Sub total Total Rebate
5 C8000 + Booklet Finisher + Folding 31,585.40$ 157,927.00$ 7,500.00$ 3 C6010 14,107.14$ 42,321.42$ 3,375.00$
33 C4510 11,063.24$ 365,086.92$ 29,700.00$
41 C300F 4,620.22$ 189,429.02$ -$
2 460F 3,833.26$ 7,666.52$ -$
2 MICR Printers 1,525.00$ 3,050.00$ -$
2 MICR 5 yr Service 1,021.00$ 2,042.00$ -$
Total* 767,522.88$ 40,575.00$
Price Concession: (51,500.00)$
Total: 716,022.88$
Sales Tax (7.75%) 55,491.77$
Total including tax: 771,514.65$
Cash rebate direct from Ricoh: (40,575.00)$
Total New Investment: 730,939.65$
*GPO - OMNIA (PUBLIC SECTOR) - 2021002788
Pricing for equipment/service excludes any taxes that may apply May 14, 2024
Item #3 Page 14 of 19
I
Our Commitment to You
With Ricoh, you have the support of a trusted partner in your corner — one who shares your goals, understands your long-term vision and is focused on helping your store achieve success.
Our dedication to The City of Carlsbad is unwavering, and it shows in the wealth of new technologies we are bringing to market. We are constantly thinking ahead, innovating and devising new ways to provide value and opportunity to you, our customer.
May 14, 2024
Item #3 Page 16 of 19
Ricoh USA, Inc. 300 Eagleview Blvd Ste 200, Exton, PA, 19341 | 1-800-63-RICOH ©2021 Ricoh USA, Inc. All rights reserved. Ricoh® and the Ricoh logo are registered trademarks of Ricoh Company, Ltd. All other trademarks are the property of their respective owners. The content of this document, and the appearance, features and specifications of Ricoh products and services are subject to change from time to time without notice. Products are shown with optional features. While care has been taken to ensure the accuracy of this information, Ricoh makes no representation or warranties about the accuracy, completeness or adequacy of the information contained herein, and shall not be liable for any errors or omissions in these materials. Actual results will vary depending upon use of the products and services, and the conditions and factors affecting performance. The only warranties for Ricoh products and services are as set forth in the express warranty statements accompanying them.
May 14, 2024
Item #3 Page 17 of 19
RICOH
imagine. change.
Exhibit 2
Information Technology Department
1635 Faraday Ave ï Carlsbad, CA 92008 ï 760-602-2450 t
Memorandum
April 16, 2024
To: Roxanne Muhlmeister, Assistant Finance Director/Purchasing Officer From: Mike Lesh, Senior Program Manager
Via: Maria Callander, Information Technology Department Director Re: Request Approval for Cooperative Use of Contract for Ricoh USA The Information Technology Department requests authorization for use of a cooperative contract per Carlsbad Municipal Code Section 3.28.100 (Cooperative Purchasing). This code provides that the purchasing officer shall have the authority to join with other public or quasi- public agencies in cooperative purchasing plans or programs for the purchase of goods and/or services by contract, arrangement or agreement as allowed by law and as determined by the purchasing officer to be in the city’s best interest. The purchasing officer may buy directly from a vendor at a price established by another public agency when the other agency has made their purchase in a competitive manner.
The Information Technology Department would like to cooperatively use the University of California (UC) Contract OMNIA (Public Sector) # 2021002788 for Print Goods and Services with Ricoh USA, Inc to provide for the purchase of a replacement multi-function printer fleet in the amount of $730,939.65 (86 printers).
On July 28, 2015, the City Council approved Resolution 2015-200 authorizing the city manager to execute a master service agreement with Ricoh USA, Inc for the purchase of a multi-function printer fleet. Ricoh was selected after an RFP (request for proposal) process determined that Ricoh USA provided the best value to the city. The Ricoh printers purchased from that contract are now three years past their useful life. The new multi-functional printers will replace the eight-year-old printers currently in use by the city. By continuing to use Ricoh USA printers this will allow for minimal disruptions to staff work activities and continue a working relationship that has been beneficial to the city.
Approval for Cooperative Purchase
____________________________________
Roxanne Muhlmeister,
Assistant Finance Director/Purchasing Officer
May 14, 2024
Item #3 Page 18 of 19
( Cityof
Carlsbad
Muhlmeister
April 16, 2024
CC:
Maria Callander, IT Department Director
Cindie McMahon, City Attorney
Brent Gerber, Senior Management Analyst
Shea Sainz, Senior Contract Administrator
May 14, 2024
Item #3 Page 19 of 19