Agenda Item No: J.1
AGENDA REPORT
DATE: August 5, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-158 IT Approving Expenditure for Lease Agreement with Canon Financial Services
Approving Expenditure for Lease Agreement of Multifunction Copiers, Plotters, and Print Services with Canon Financial Services
Funding Source: $230,000; Computer fund
Contact: Shawn Smith, (707) 428-7542
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
City Council approved a lease agreement with Canon Financial Services (C anon) on March 1, 2022, via Resolution 2022-35 to lease multifunction copy machines citywide and provide ongoing maintenance and service. Since the agreement’s inception, t he City has added equipment and related services under the existing lease terms. As a result, staff now seek to increase the spending authority granted in the original resolution.
DISCUSSION
The City’s existing lease agreement with Canon is for 60 months with defined monthly lease costs plus printing costs. Monthly printing amounts fluctuate based on usage volume, print type (e.g. color versus black/white) and the number of machines covered. When the original lease was created, staff estimated the financial costs over the life of the lease and requested and received council spending authority for $500,000 to cover 41 machines.
Since that time , the City’s usage and staffing has grown, requiring the addition of four multifunction copiers to replace 16 aging desktop printers, and incorporated two Canon large format p lotters that were formerly maintained by other vendor s. This consolidation has improved operational efficiency and reduced the City’s reliance on third -party vendors for
maintenance and printing services. However, these additions have increased the monthly charges under the Canon lease.
A recent budget review identified that current expenditures are approaching the original council- approved spending limit. To ensure continued service throughout the remainder of the lease term, staff recommend increasing the spending authority by $230,000 to accommodate projected costs through March 2027.
FINANCIAL IMPACT
The Canon agreement is based upon cooperatively negotiated pricing from the Omnia University of California contract #20200002755 and provides the City with the best pricing and services for the machines in use until March 6, 2027. The initial agreement with Canon was for $500,000 and with the proposed $230,000 expenditure, the total amount is not to exceed $730,000. The current agreement is beneficial to the City and does not require any changes for the remaining months of the term. The planned costs are included in the current two-year budget cycle. Council approval of this resolution will enable the City to maintain the current level of equipment and services without disruption. Sufficient funds are available in Computer Fund 522.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
Council may choose not to approve the proposed expenditure . Without council approval to increase spending authority, current use of the Canon copy and plotter machines will not be feasible. Staff would either have to drastically decrease the use of leased machines or significantly increase the use of more costly copiers. Based on the current pricing model, reducing the number of machines will not likely reduce the City’s cost or monthly printing volume; instead, it will increase wear, stress, and availability issues for the remainin g copiers without lowering costs.
COORDINATED WITH
Finance Department
STAFF CONTACT
Shawn Smith, Management Analyst Senior
(707) 428-7542
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Resolution 2022-35, Original Canon Lease Agreement