EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: January 18, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Jaime M. Fontes, City Manager
BY: Azalea Renfield, Community Services Manager
SUBJECT: Approval of a new leasing agreement with Shamrock Office Solutions for Citywide Copy Machines
Recommendation
Authorize the City Manager to enter into a Four-year lease agreement with Shamrock Office Solutions to provide six multi-use copy machines throughout city offices in an amount not to exceed Ninety-Nine Thousand Eight Hundred Fifty-One Dollars and Fifty-Two cents ($99,851.52).
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 3: Increase Organizational Effectiveness and Efficiency Priority No. 4: Improve Public Facilities and Infrastructure Background
The City of East Palo Alto entered into a 3-year (36 months) lease agreement on September 26, 2016, with Ricoh Digital Services for six (6) copiers located throughout City offices. This lease agreement expired on September 26, 2019, and the City has been on a month-to-month lease agreement.
The City's current primary production copiers are Ricoh MP C6004. The copiers are used for approximately 90% of our printing, about 24,000 copies per month. The other 10% is attributed to outsourcing to printing companies when printing in bulk (e.g., community mailers). All six (6) copy machines perform the functions of scanning, faxing, and printing in color and black and white (B&W). Each machine contributes to a combined total printing average of 17,943 color and 7,661 B&W pages per month.
Although our copiers have performed adequately for our City Departments over the years, our machines are becoming worn and require frequent service requests. Within the last 18 months, the copiers have had over 20 service calls. Staff recommends that we pay Ricoh a final payment for the month and enter into a new 4-year agreement with a service provider that can transition new machines into our office without interruption in business.
Analysis
The City has been out of contact since September 26, 2019, and is now on a month-month lease agreement. Earlier this year (2021), an RFP was issued by Administrative Services to solicit proposals from companies that can provide copiers at a competitive rate and quick and reliable responses to service requests. The City received three (3) submissions in response to the RFP from Ricoh Digital Services, Shamrock Office Solutions, and Ray Morgan Company (RMC). RFPs were reviewed by a small committee consisting of the following city staff: Jimmie Tulabing, Senior Information Technology Analyst; Azalea Renfield, Community Services Manager; and Marie McKenzie, Administrative Services Director.
Staff assessed the costs, machine functions, and benefits of each proposal. Due to relatively low production levels across many city offices, staff discovered that most printing occurs at City Hall (2415 University Avenue). Therefore, the need for high-powered printers (Ricoh MP C6004) at every office is not needed, and therefore can be changed to a different model to save on costs.
Below is a Copier Comparison overview of the cost and companies that responded to the RFP.
Overview of 2021 Proposals to Provide Copy Machines
Company Lease Term &
Cost
# of Machines Added
Services/Benefits
Ricoh Digital
Services
(48-months)
Equipment Fixed
Cost. $53,210.88
Service & Printing
Estimated Cost.
$48,233.55 Total
Estimated Cost
$103,893.60
6 (3) Ricoh IMC
C6000 (3) Ricoh
IMC C3500
• Current Service
Provider • Seamless
Integration with mobile
devices. • Information
sharing between Ricoh
devices/platforms.
• Innovative support for
changing customer
environments.
• Proposal doesn’t
include tax.
Shamrock
Office
Solutions
(48-months)
Equipment Fixed
Cost. $55,904.64
Service & Printing
Estimated Cost.
$43,946.83
Total Estimated
Cost:
$99,851.52
6 (1) Ricoh IM
C6000 (1) Ricoh IM
C4500 (4) Ricoh IM
C3500
• Locally owned and
Operated • 10-15
Service Technicians
dedicated to East Palo
Alto Area • Proactive
Preventative
Maintenance Calls
• Account Executive
Dedicated to City of East
Palo Alto for on-going
training during entire
lease. • Service calls are
included free at NO
extra charge.
Ray Morgan
Company
(RMC)
(48-months)
Equipment Fixed
Cost. $50,105.28
Service & Printing
Estimated Cost.
$35,561.73 Total
Estimated Cost
$85,667.02
6 (2) Ricoh IM
C6000 (4) Ricoh IM
C4500
• Pricing reflects the
RMC U-Manage 63
monthly rental program,
which provides flexible
options of upgrades with
no penalty at 36 or 48
months - unlike
traditional lease
contracts. • After-hours
service is $200 per hour,
based on availability.
• The proposal includes
estimated sales tax.
While all proposals in the selection process were competitive, the City ultimately selected Shamrock Office Solutions to be awarded a 48-month contract to provide new copiers and ongoing maintenance. After reviewing the Copier Comparison Chart, the current annual costs for our existing compared to the proposed annual cost of new copiers yield a savings of $906 per year. The total cost is $24,962 per year/$2,080.24 per month. This number is a high estimation that includes sales tax and printing averages.
Shamrock Office Solutions will provide six (6) new copy machines comprised of the following models based on productivity and usage:
City Location Machine and
Model
2415 University Avenue Ricoh IM C6000
Ricoh IM C4500
141 Demeter Street Ricoh IM C3500
1960 Tate Street Ricoh IM C3500
Ricoh IM C3500
150 Tara Road Ricoh IM C3500
Staff requests authorization for the City Manager to enter a 4-year (48 months) lease agreement with Shamrock Office Solutions and replace the existing six (6) Ricoh MP C6004 copiers with six (6) new digital copiers. The buyout for our current leased copiers is $2,694.94, which Shamrock will pay when returning the old printers to Ricoh Digital Services.
Fiscal Impact
Adequate funds have been budgeted for this service in the approved FY21-22 budget.
However, a shortfall of $12,000 is needed for the rest of the fiscal year. Staff request that City Council appropriate $12,000 from the General Fund to cover the shortfall.
Revenues are received monthly through an administrative fee charged to city-wide departments to use printing equipment, including the maintenance and support of the technology systems. The total cost city-wide is $99,851.52 ($24,962.88 per year).
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo Co. Library located at 2415 University Avenue, East Palo Alto.
Environmental
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” pursuant to 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment.
Attachments
1. RESOLUTION for Copiers