TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Nicole Tibbet, Community Engagement Manager
DATE: January 8, 2025
SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE 5 YEAR
LEASE WITH COPYFREE FOR SIX PRINTERS/COPIERS
AND TO AMEND THE LEASE TO INCLUDE ALL CITY
COPIERS AND PRINTERS AS ADDITIONAL LEASES
EXPIRE
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government
BACKGROUND
The City of San Marino has been leasing printers and copiers from CopyFree since 2011. In 2011, the Administration Department decided to start leasing from CopyFree for the City Hall upstairs printer. Soon after, all other departments started leases with CopyFree for their printers/copiers in subsequent years.
A city of our size and operation benefits from leasing copiers and printers rather than purchasing them for several reasons. Examples include being able to project out budget impacts from printers over longer terms and not need to make larger capital purchases at unknown intervals to replace printers the City may own. Additionally, leases come with built-in maintenance and toner costs, so the City can also better project out materials and maintenance costs. Leases also enable the City to “right size” the printers/copiers we need for each department and usage without selling and buying new devices that can often cost tens of thousands of dollars each.
Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
From 2011 to this year, all departments managed their own leases with CopyFree. To consolidate oversight of City technology, staff evaluated all of the various leases with CopyFree along with department usage and are working on consolidating the agreement to be overseen by our IT operation and include all of our City devices into one managed agreement. As the City and CopyFree have 12 current leases extending to 2028, staff expects the consolidation to occur over the next four years. This consolidation will allow for better management of the contracts, improved buying power for the City, and more efficient oversight/utilization of the City’s resources.
DISCUSSION
Approve 5 Year Lease for 6 Printer/Copiers
The San Marino Crowell Public Library currently has five printer/copier devices that have expired leases. The San Marino Fire Department has one copier with an expired lease. Staff are seeking approval to execute the lease in Attachment 1 (5-year lease agreement with CopyFree) to install new devices and primary servicing of printing equipment for those two departments.
Authorization of the City Manager to amend the lease to Include additional devices that will be up for renewal in the next four years.
There are an additional 6 printer/copier devices throughout the City, each on their own lease agreement, that will have expired leases over the next four years. Staff are seeking approval from the City Council to authorize the City Manager to roll those new leases into this approved 5-year lease as they come up for renewal. Staff will ensure that the devices are evaluated to make sure that any renewed leases are for the proper sized equipment based on actual department usage.
FISCAL IMPACT & PROCUREMENT REVIEW
Staff has ensured that CopyFree is utilizing the National Association of State Procurement Officials (NASPO) State of California Agreement with Canon to ensure that the pricing offered is the lowest possible price for these devices.
Procurement is in compliance with the City’s municipal code due to a cooperative purchase program utilizing a purchasing agreement received by another public agency.
The fiscal impact for the attached 5-year lease for 6 devices is $13,855.56 annually, for a total contract amount of $69,277.80 over 5 years.
The total annual cost for the remaining 6 leases is $26,168.04. Using a 4% CPI factor to anticipate future increases in pricing, it is estimated that the agreement for the remaining 6 devices will have a not-to-exceed annual cost of $28,000 with all devices rolled into one lease.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the council (1) move to approve the authorization of the City Manager to execute a 5-year lease with CopyFree for six printers/copiers and (2) authorize the City Manager to amend the lease to include all city copiers and printers as additional leases expire.
If the Council agrees, the appropriate motion would be, “I move to authorize City Manager to execute 5-year lease with CopyFree for six printers/copiers for $13,855.56 per year and (2) authorize the City Manager to amend the lease to include all city copiers and printers as additional leases expire in an amount not-to-exceed $28,000 annually.”
ATTACHMENTS
1. 5-Year Lease Agreement with CopyFree
2. NASPO State of California Canon Agreement
5 year Lease- 6 devices
Monthly Lease Amount 741.85
Monthly Equipment Base Rate 412.78
Total Annual Am ount 13,855.56
Total 5-year Am ount 69,277.80