STAFF REPORT
Meeting Date:
March 10, 2026
CONSENT
9 SUBJECT: SERVICE AGREEMENT WITH C3 TECH FOR CITYWIDE COPIER LEASE AND
MAINTENANCE SERVICES
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to execute a fifty-four (54) month service agreement with C3 Office Solutions LLC dba C3 Tech for Citywide Copier Lease and Maintenance in an amount not to exceed $6,456.59 per month;
2. Authorize the City Manager to approve a contingency amount of up to ten percent (10%) of the total contract amount for additional copiers and related services identified during the term of the contract, for a total not to exceed contract amount of $383,521.45; and
3. Find that the action does not constitute a project under the California Environmental Quality Act pursuant to Guidelines Section 15378(b)(4) and Section 15378(b)(5).
SUMMARY OF THE MATTER
The City relies on multifunction copier equipment to support daily administrative operations across departments. The current copier environment consists of fifteen machines operating under three separate lease agreements with staggered expiration dates, along with additional City owned equipment that is approaching the end of its useful life. This fragmented structure increases administrative oversight, limits cost efficiency, and complicates vendor service coordination.
Staff recommends consolidating the City’s copier fleet under a single service agreement with C3 Tech through the County of Orange Regional Cooperative Contract. The proposed agreement would replace the existing fleet with fourteen modern multifunction devices and establish a monthly service cost of $6,456.59 over a fifty four month term.
The consolidation will reduce the City’s current monthly copier costs from $7,841.80 to $6,456.59, resulting in an estimated monthly savings of $1,385.21. Over the full contract term, the agreement represents a total contract value of approximately $348,655.86, while modernizing equipment, consolidating vendor management, and eliminating the need for near term capital replacement of aging machines.
In addition, C3 Tech will assume all remaining lease obligations associated with the City’s current vendor, MRC (Xerox), and will manage the removal and return of the existing equipment. The proposed agreement provides cost predictability, operational efficiency, and minimal disruption to City operations while reducing overall operating costs.
DISCUSSION
The City currently manages a fragmented copier fleet consisting of fifteen machines, including eleven leased units and four obsolete City owned machines operating under multiple expiring agreements. Aging SERVICE AGREEMENT WITH C3 TECH FOR CITYWIDE COPIER LEASE AND
MAINTENANCE SERVICES
March 10, 2026
equipment and rising maintenance costs prompted staff to evaluate options for modernization and consolidation.
Staff recommends transitioning the City’s copier fleet to a single agreement with C3 Tech through the County of Orange Regional Cooperative Contract. This transition will replace the existing fleet with fourteen modern multifunction devices. Although the number of machines will decrease from fifteen to fourteen, the upgraded equipment provides significantly greater capacity, efficiency, and reliability. Current usage demands will be fully accommodated without disruption to City operations.
Under the proposed agreement, C3 Tech will also assume all remaining lease obligations associated with the City’s current vendor, MRC (Xerox). C3 Tech will take possession of the existing equipment and coordinate its return to the current vendor at the appropriate time.
To evaluate consolidation options, staff requested updated proposals from both MRC and C3 Tech through the County of Orange Regional Cooperative Contract. The cooperative contract option provides the most cost effective solution and simplifies the City’s copier environment under a single vendor and agreement.
Pursuant to Laguna Beach Municipal Code Section 2.30.050, the City may procure goods and services through cooperative purchasing programs competitively bid by other public agencies. The County of Orange competitively solicited and awarded Contract No. RCA-017-23010022 to C3 Office Solutions, doing business as C3 Tech, for digital multifunction copiers, printers, software, accessories, and related services.
Although the City operates a smaller copier fleet, participation in the County’s higher volume cooperative contract provides more favorable pricing and contractual terms than the City could achieve independently.
The City has also utilized C3 Tech services on a trial basis through the Marine Safety Department. Staff found the equipment performance and vendor service to be reliable and responsive.
FINANCIAL ANALYSIS
The proposed agreement with C3 Tech establishes a fifty four month term aligned with the County of Orange Regional Cooperative Contract, expiring September 10, 2030. The agreement is also co termed with the existing Marine Safety copier equipment.
A comparative analysis shows that utilizing the County cooperative contract reduces the City’s current monthly cost from $7,841.80 to $6,456.59, resulting in a monthly savings of $1,385.21.
The proposed agreement also allows the City to modernize a larger portion of its copier fleet. The cooperative contract replaces fourteen machines compared to only six under the alternative proposal, allowing the City to retire obsolete equipment that carries higher maintenance costs.
In addition, C3 Tech will assume all remaining lease obligations from the City’s current vendor, MRC (Xerox). C3 Tech will manage the removal and return of the equipment at the appropriate time, eliminating additional administrative and financial burdens on the City.
SERVICE AGREEMENT WITH C3 TECH FOR CITYWIDE COPIER LEASE AND
MAINTENANCE SERVICES
March 10, 2026
Funding for copier lease and maintenance services is included in the operating budgets of the participating departments and will continue to be budgeted annually. The agreement provides cost predictability throughout the contract term and avoids near-term capital replacement costs for aging equipment.
ENVIRONMENTAL ANALYSIS
This action is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(4) and (b)(5). The contract constitutes funding and administrative activity that will not result in a direct or reasonably foreseeable indirect physical change to the environment.
ATTACHMENTS
1. Pros and Cons Analysis (Pg. 4)
2. Service Agreement with C3 Tech (Pgs. 5-40)
Submitted By:
. Approved: .David A Kiff
Jeremy Frimond, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Jerry Soto, IT Manager Patrick Donegen, Assistant City Attorney Eva Pierce, Procurement Officer
Mandy Low, Project Manager