TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:February 13, 2024
SUBJECT: Citywide Copier and Reprographics High-Production Digital Equipment Lease and Maintenance Agreement
RECOMMENDATION:
1. Award and authorize the City Manager to execute a piggyback agreement with Canon Solutions America, Inc. of Melville, NY, (CSA) and Canon Financial Services, Inc. (CFS) of Glendale, CA, using the County of DuPage, IL, agreement through OMNIA Partners for a 60-month copier [multi-function device (MFD)] equipment lease and maintenance agreement for the citywide MFD equipment in a not-to-exceed amount of $387,782.
2. Award and authorize the City Manager to execute a piggyback agreement with CSA and CFS using the County of DuPage, IL, agreement through OMNIA Partners for a 60-month copier (MFD) lease and maintenance agreement for high- production reprographics equipment for the City’s Print Shop in a not-to-exceed amount of $189,033.
3. Award and authorize the City Manager to execute a piggyback agreement with CSA and CFS using the County of DuPage, IL, agreement through OMNIA Partners, for a 60-month PRISMA software license lease for the City’s Print Shop in a not-to-exceed amount of $31,568.
4. Authorize expenditure in the amount of $26,000 for FY 2023-24 and $78,000 for FY 2024-25 from various General Fund, Library Fund, Water Fund, Wastewater Fund, Solid Waste Fund, and Theatres Fund accounts for citywide MFD equipment and maintenance.
5. Authorize expenditure in the not-to-exceed amount of $13,000 for FY 2023-24 and $38,000 for FY 2024-25 from A/C #001-3520-612-6410 (General Fund - Rental/Copiers) for reprographics high-production equipment and maintenance.
6. Authorize expenditure in the not-to-exceed amount of $2,104.52 for FY 2023-24 and $6,313.56 for FY 2024-25 from A/C #001-3520-612-6410 (General Fund – Rental/Copiers) for software services.
Citywide Copier and Reprographics High-Production Digital Equipment Lease February 13, 2024
9 0
9 7. Find that this action is not a project as defined under the California Environmental Quality Act.
FINANCIAL IMPACT:
No Additional Funding Requested. $41,104.52 is available in the Adopted FY 2023-24 and $122,313.56 is available in the Adopted FY 2024-25 General Fund, Library Fund, Water Fund, Wastewater Fund, Solid Waste Fund and Theatres Fund Budgets to cover the costs of the equipment and services. The additional funds for the remaining lease and maintenance/supplies contract terms will be requested during the upcoming biennial budget process.
BACKGROUND:
The current MFD and Reprographics equipment are at the end of their five (5) year lease and require more frequent maintenance. As with any new hardware, newer models will provide the same high-quality end products at higher levels of efficiency, while reducing maintenance/repair call-outs. For these reasons, staff determined procuring a new lease and maintenance agreement for existing and new equipment was needed.
In January 2019, following a competitive bid and evaluation process, Canon Solutions American, Inc. of Glendale, CA, was selected to provide both the citywide MFDs, as well as the high-production equipment for the print shop. Their selection was based on the quality, user-friendly interface, and connectivity of their equipment, service, maintenance program, and competitive pricing. The equipment also included enhanced features, such as badge authentication for secure printing, personalized shortcut configurations, scan conversion to Word and PowerPoint formats, and several other time-saving elements. The current lease terms with Canon Solutions American, Inc. of Glendale, CA, expired on January 15, 2024. The contract term for the maintenance and supplies services expired on January 8, 2024. The City is currently being billed a monthly maintenance service fee for the equipment at City sites.
Citywide MFD Equipment:
Currently, MFD equipment is located at City Hall, Municipal Service Center, Hill Canyon Treatment Plant, Teen Center, and the two Libraries. There are 32 devices total. The devices are used by staff for walk-up copying, printing, and scanning. The devices are on the City’s network and therefore accessible from individual staff workstations. The library equipment also includes MFDs for use by the public with integrated software to accept cash payments.
Citywide Copier and Reprographics High-Production Digital Equipment Lease February 13, 2024
9 0
9 Reprographics High-Production Digital Equipment:
The Print Shop located at City Hall provides printing and document processing services to all City departments as well as other governmental agencies. City departments and other governmental agencies such as Conejo Recreation and Park District that use the Print Shop services are charged at cost. Examples of documents produced by the Print Shop include City financial documents (including Operating and Capital Improvement Program budgets and Annual Comprehensive Financial Reports), theatre performance flyers, promotional materials, and various other documents required by staff for conducting City business.
DISCUSSION/ANALYSIS:
Pursuant to Thousand Oaks Municipal Code (TOMC) Section 3-10.203(b), the City may “piggyback” onto, or join, an existing written purchase contract obtained through a competitive bidding process prepared and awarded by another local, state, or federal government agency. In January 2018, County of DuPage, IL issued competitive solicitation #18-020-LG for multi-function copier device and service solutions. In October 2018, County of DuPage, IL, awarded CSA a contract term of five-year as part of the OMNIA Partners purchasing cooperative. As of May 3, 2023, the agreement was amended to extend the contract to March 31, 2024.
With the OMNIA contract, the City can execute another five-year agreement for both the new equipment lease and the maintenance and supplies services agreements. New maintenance and lease agreements can be signed into effect using this contract as a “master contract,” whose terms will be valid through the life of any new agreements signed before the master contract expiration date of March 31, 2024. The cooperative agreement will meet the City’s printing needs at a competitive market value.
The City will replace the 32 existing MFDs with newer models of comparable speed. The existing MFDs will be taken off-site by a third-party affiliate of Canon Solutions America, Inc. at no additional cost to the City. Since the functionalities of the existing models continue to meet Department needs, the newer models will be outfitted to maintain the same outlined specifications to continue to ensure that necessary functionalities and department needs are met.
The City will replace the existing reprographics high-production equipment with newer models with enhanced functionality and quality. Newer units will allow the continued in-house production of high-quality materials.
Citywide Copier and Reprographics High-Production Digital Equipment Lease February 13, 2024
9 0
9 Financial Summary
Citywide MFD (Multi-Function Device) Equipment
Print Quantity Base
Black and White 72,000
Color 40,000
Lease Payment 60 month ($4,247.67 per month) $254,861.00 Reserve for equipment additions/upgrades $ 25,486.00
Lease Total (60 months) $280,347.00
Supplies and Maintenance 60-month ($1,627.80 per
month)
$ 97,668.00
Reserve charges over estimated amounts $ 9,767.00
Supplies and Maintenance Total (60 months) $107,435.00
Grand Total $387,782.00
Reprographics High-production Equipment
Print Quantity Base
Black and White 41,000
Color 13,000
Lease Payment 60-month ($2,270.72 per month) $136,244.00 Reserve for equipment additions/upgrades $ 13,624.00
Lease Total (60 months) $149,868.00
Supplies and Maintenance 60-month ($593.40 per month) $ 35,604.00 Reserve charges over estimated amounts $ 3,561.00
Supplies and Maintenance Total (60 months) $ 39,165.00 Grand Total $189,033.00
Software Services
PRISMA Prepare Software (60 months) ($526.13 per
month)
$ 31,568.00
Total MFD/Reprographic Equipment Program Costs
Citywide Equipment – Lease (including reserve) $387,782.00 Reprographics – Lease (including reserve) $189,033.00
PRISMA Prepare Software $ 31,568.00
Total Program Estimated Costs $608,383.00
Citywide Copier and Reprographics High-Production Digital Equipment Lease February 13, 2024
9 0
9 Summary
The new agreements with Canon Financial Services, Inc. and Canon Solutions America, Inc. will provide new, upgraded equipment for staff usage. Staff recommends authorizing the City Manager to execute the final agreements based on the not-to-exceed amounts and scope of work described herein.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Joshua Koenig-Brown, Facilities Manager
Alexander Wallsten, Assistant Analyst
FIN:201-10\aw\jkb\H:\COMMON\Council\2024\Facilities\02132024 Citywide Copier and Repographics Equipment Lease and Maintenance Agreements.docx