City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: JANUARY 16, 2024 FROM: INNOVATION & TECHNOLOGY DEPARTMENT WARDS: ALL
SUBJECT: FIRST AMENDMENT TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT WITH SHARP ELECTRONICS CORPORATION FOR MANAGED PRINT SERVICES FOR A FIVE-YEAR TERM ENDING DECEMBER 31, 2028, IN THE AMOUNT OF $2,250,000 ISSUE:
Approve the First Amendment to the Professional Consultant Services Agreement with Sharp Electronics Corporation, of New York, for Managed Print Services for a five-year term ending December 31, 2028, in the amount of $2,250,000.
RECOMMENDATIONS:
That the City Council:
Approve the First Amendment to the Professional Consultant Services Agreement with Sharp Electronics Corporation, of New York, for Managed Print Services for a five-year term ending December 31, 2028, in the amount of $2,250,000; and Authorize the City Manager, or his designee, to execute all documents pursuant to the Managed Print Services Agreement, including but not limited to the Agreement, Master Lease Agreement, Customer Care Maintenance Agreements (orders), Master Lease Agreement Schedule and related financing documents, Equipment Delivery Acceptance forms, and making minor non-substantive changes.
BOARD RECOMMENDATION:
On January 8, 2024, the Board of Public Utilities (Board) will hear this item for consideration to recommend to City Council to take actions on the First Amendment to the Professional Consultant Services Agreement with Sharp Electronics Corporation for Managed Print Services for a five-year term ending December 31, 2028, in the amount of $2,250,000.
If the Board approves to forward this to City Council, we respectfully request that the City Council consider the item at the January 16, 2024, City Council meeting.
BACKGROUND:
In 2010, the city created a Managed Print Services (MPS) program that would include value added items to its print and copier needs. The benefits include reducing costs and improving efficiency, improving staff productivity with newer equipment, saving time with more efficient ordering processes and vendor managed services, reducing capital expenditures via cost effective leasing options, and reducing the City' s environmental footprint.
On April 12, 2018, the City issued Request for Proposal (RFP) No. 1817 seeking proposals from qualified vendors for copier equipment (including both standard and optional components), printer equipment, MPS services (including third party network printers), per page rates for black/white and color printing, and optional third-party leasing firm bids. The goal of the RFP was to create a single vendor contract that would consolidate vendors, services, and technology for approximately 742 owned and leased Multi-Function Devices and desktop printers at various City locations. After careful review and evaluation of seven proposals, Sharp Electronics Corporation (Sharp) was deemed the most responsive and qualified vendor to perform the scope of work described in the RFP. On January 15, 2019, the City Council approved the original five-year agreement with Sharp.
Over the past five years, the MPS agreement has saved the city approximately $1.2 million by providing fixed rate pricing, lower per page costs, the inclusion of consumables (e.g., toner, developer, waste toner bottles, staples, etc.) and by providing newer equipment that includes updated technology features and more efficient operation and consumption. The enhanced technology features also provide improved reliability, improved user interfaces, more productive scanning functionalities, secure print options and improved information security. In addition. The MPS agreement included enhanced service level agreements for the replenishment and replacement of supplies, more stringent service and repair expectations, and defined preventative and maintenance schedules.
The Innovation & Technology Department currently manages this agreement and have been satisfied with the level of service and support received from Sharp throughout the term.
DISCUSSION:
City staff worked with Sharp to negotiate an updated pricing schedule for the additional five-year term proposed in the First Amendment to the Agreement. Many of the original printers listed in the pricing schedule have been replaced with newer models as is common in the technology equipment industry. Higher inflation rates and consumer price index (CPI) ratings also contributed to the new pricing schedule. Attachment 4 – Five-Year Agreement Cost Comparison provides a side-by-side view of pricing in the original agreement versus that in the proposed amendment; however, on average:
Per page usage costs increased 7% but continue to provide elevated service and maintenance as well as consumables, and Cash purchase prices increased significantly, but monthly lease payments remained within a $28 range of the original lease payment across all categories (please note this only affects new leases and will not have an impact on existing leases in effect throughout the city).
Actual costs incurred are charged to departments based on usage and requests for equipment. In Fiscal Year 2022-23, there were a total of 244 printers included on usage plans incurring a total of $500,382.66. This includes 149 leases but does not include the price of printers that were purchased outright without any usage plans. The following table provides an estimated breakdown of how costs will be split amongst departments based on Fiscal Year 2022-23 expenses:
Dept
Name
Share of Costs
Estimated 5-Yr Cost
11 City Manager
4.3%
$ 96,750
12 City Clerk
0.8%
$ 18,000
13 City Attorney
2.9%
$ 65,250
21 Human Resources
3.5%
$ 78,750
22 General Services
7.0%
$ 157,500
23 Finance
3.5%
$ 78,750
24 IT
0.7%
$ 15,750
28 CEDD
8.6%
$ 193,500
31 Police
22.3%
$ 501,750
35 Fire
3.1%
$ 69,750
41 Public Works
10.9%
$ 245,250
51 Library
0.7%
$ 15,750
52 Parks & Rec
7.7%
$ 173,250
53 Museum
0.5%
$ 11,250
60 RPU Admin
16.0%
$ 360,000
61 RPU Electric
5.4%
$ 121,500
62 RPU Water
2.1%
$ 47,250
TOTAL
100.0%
$ 2,250,000
Purchasing Resolution 23914 Section 702 (u) states that, “Competitive Procurement through the Informal Procurement and Formal Procurement process shall not be required… (u) When the Procurement is for the renewal of maintenance, license(s), support, or a similar need for existing technology systems, including hardware, and the items are procured from a vendor/reseller that was originally selected based on the City’s procurement standards, provided that 1) the contractor has been used continuously since such selection and 2) if there are not any non-substantive changes to the Procurement and 3) when it is determined by the Manager to be in the best interests of the City to do so.” The Purchasing Manager concurs that the recommended action complies with Purchasing Resolution No. 23914 Section 702 (u).
STRATEGIC PLAN ALIGNMENT:
This item contributes to the following Envision Riverside 2025 City Council Strategic Priority:
Strategic Priority 6, Infrastructure, Mobility & Connectivity Goal 6.2. Maintain, protect and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
The item aligns with each of the five cross-cutting threads as follows:
Community Trust – Utilizing competitively bid services and negotiated pricing complies with the City’s procurement policies and ensure the City and its’ resident’s best interest are at the forefront.
Equity – All City employees benefit from IT making research driven decisions based on industry trends and the City’s specific needs. This benefits Riverside residents and the community who benefit from reliable and available services.
Fiscal Responsibility – This purchase is an extension of a publicly bid contract with terms and pricing that are lower than current increases expected through CPI and inflation.
Innovation – The extension will allow Sharp to continue making equipment recommendations based on a combination of current trends, best practices and city requirements. Providing staff with equipment that has new or current technologies allows them to work more efficiently and provide better service to our residents.
Sustainability & Resiliency –. This purchase is imperative to the ongoing success of the City’s technological infrastructure, which serves the community daily.
FISCAL IMPACT:
The total fiscal impact of the action is $2,250,000 over a five-year term. The estimated cost for the remainder of Fiscal Year 2023/24 is $225,000. All City departments budget print services within their non-personnel budgets, therefore sufficient funds are available in various departmental general office expense or printing expense accounts.
Appropriations for future years will be included in departments’ budget submissions for those fiscal years to be presented to the City Council for approval.
Prepared by: Jessica M. Gordon, Administrative Services Manager Approved by: George Khalil, Chief Innovation Officer
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Edward Enriquez, Assistant City Manager/ Chief Financial Officer/City Treasurer
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
2023 First Amendment to the Professional Consultant Services Agreement 2019 Original Professional Consultant Services Agreement Five-Year Agreement Cost Comparison
Department Cost Comparison
Presentation
Sharp First Amendment ● Page 2