Placentia Cit Council
AGENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DEPUTY CITY ADMINISTRATOR / SUPPORT AND EMERGENCY SERVICES DATE: MARCH 21, 2023
SUBJECT: LEASE AGREEMENT FOR NEW COPIERS AND MANAGED PRINT SERVICES FISCAL
IMPACT: EXPENSE: $14,394 (APRIL — JUNE 2023)
BUDGETED : $14,500 (109595-6175)
SUMMARY:
The City of Placentia (City) solicited proposals to replace multi -function copiers whose lease contracts have expired and to replace, monitor, maintain and provide supplies for thirty-five (35) office printers within the City and add five (5) more. Three quotes have been obtained from different vendors and Centruy Business Services (CBS) submitted the lowest responsive bid.
Currently there are two different copier lease agreements and a separate printer maintenance agreement, all of which expired in 2021 and are currently operating on a month-to-month basis.
The new contract agreement through CBS would replace and upgrade all current copier and printer equipment to the latest models, along with providing standardization of equipment models for better upkeeping and lower maintenance rates.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve the Agreement with Century Business Services (CBS) for Managed Print Services and the replacement of eight (8) copier machines and forty (40) office printers throughout various City locations for a total amount of $57,600 annually, for five years; and
2. Authorize the City Administrator or their designee to execute all necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
There is no specific strategic planning goal or objective associated with this agenda item.
1.i.
March 21, 2023
City Council Agenda
March 21, 2023
DISCUSSION:
The City's current copiers are outdated and under different contract agreements which have expired and are on a month-to-month basis. Following a review of the City's needs and in an effort to consolidate lease agreements, equipment has been identified for replacement, which will provide the same functionality at lower costs, while also streamlining the paperwork associated with multiple lease agreements to ensure efficient processing.
The copier in Police Administration is an older Canon model copier that has reached it's end of life cycle and is currently inoperable. The maintenance agreement has expired and is long overdue for a replacement. The replacement copier would be a current model of Kyocera copiers bringing it in line with our current fleet of copiers throughout City Hall.
There are two additional Canon copiers within the City, that are on a separate month-to-month lease agreement that are also due for an upgrade. One is located in Police Records and the other is within Public Works. Other copier models include various outdated Kyocera and Konica Minolta copiers located at the City Yard, Tow Yard, Whitten Center, and throughout City Hall.
Also, there are thirty-five (35) different types of printers (HP, Lexmark, Konica Minolta) currently on the City network with a request to add five (5) additional printers for the new Fire Department Headquarters and Human Resources. Under the new contract agreement, all printers will be replaced and standardized to one single Kyocera printer brand.
The City contacted vendors to obtain proposals for a total of 40 copiers and desktop printers. The following table provides the proposal amounts received from three companies.
Company
Century Business Services
CBE Office Technologies
Copy Link, Inc.
Proposal Amount
$4,798.50/month
$5,310.39/month
$5,298.74/month
Based on the proposals received, Staff recommends the City Council award a contract to Century Business Services for the amount of $4,798.50 per month for a term of 63 months.
With the consolidation of equipment and agreements, Staff will be able to monitor printing volumes and costs, auto toner and supply replenishment, generate online reports, control inventory, develop an asset replacement strategy, streamline service and maintenance requests and ensure one monthly bill to process, opposed to having three individual bills.
Maintenace and supply agreements are included in the submitted proposals. The maintenance agreement is based upon the monthly usage of the existing copiers taking into account of the new requested equipment. The City has the option of seeking another lease upgrade after sixty-three (63) months.
City Council Agenda
March 21, 2023
FISCAL IMPACT:
Funding for replacement and managed print services was anticipated and included in the current fiscal year's operating budget. The cost of our current copier monthly lease, and managed print services with service agreements averages around $4,567 a month. With the new agreement, the cost to the City would increase to $4,798,50 a month (not including any overage charges the City may take on in the future). The increase in costs factors in the additions of 5 new printers being added, the cost of inflation, and all copier inventory getting replaced with new equipment. In order to get the lowest monthly program payment, the contract agreement would be for 63 months and over the course of the 63 month contract agreement it would cost the City an additional $2,796 annually for a total of $13,980. The increased amount will be accounted for in the budget for the upcoming fiscal year along with future fiscal years.
Prepared by:
Daniel Chang
IT Manager
Reviewed and approved:
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Jen fifer Lampman
Director of Finance
Attachments:
1. Lease Agreement Contract
2. Quote 1 — Century Business Solutions
3. Quote 2 — CBE Office Technologies
4. Quote 3 — Copy Link
Reviewed and approved:
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Rosanna Ramir'ez
Deputy City Admini
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Reviewed and approved:
Damien R. Arrula
City Administrator