HomeMy WebLinkAbout9/7/2005 - STAFF REPORTS (33) c
°r°nntc°•n3V
City Council Staff Report
(DATE: September 7, 2005 CONSENT CALENDAR
SUBJECT: Approve Modified Copier Lease Program
FROM: David H. Ready, City Manager
BY: Document Management and Procurement & Contracting Divisions
SUMMARY
Staff has identified an opportunity to reduce the cost of copiers utilized in the City's
administrative offices by renegotiating the terms of the program with Canon Business
Solutions. By entering the new 5-year agreement, the City would save approximately
$16,000 over the remaining 27 months of the current term.
RECOMMENDATION:
1. Adopt Minute Order No. , rescinding the current 5-year lease agreement
and approving a new 5-year lease agreement for copiers with Canon Business
Solutions West, Inc., in the amount of $8084.50 per month plus $.006 per copy
for maintenance for a total not to exceed $575,070.
2. Authorizing the City Manager to sign all necessary documents.
STAFF ANALYSIS:
On December 4, 2002 City Council approved a 5-year agreement with Canon Business
Solutions West to provide copiers for most of the City's administrative offices. The term
of the agreement runs until January of 2008.
Twenty-three copiers, along with maintenance service and supplies (excluding paper
and staples) are provided under the existing program. It was anticipated that the
volume of copies made under this contract would be approximately 360,000 per month.
These copier counts have not been reached however, and staff has sought ways to
reduce the overall program costs.
To do so, staff has negotiated with Canon Business Solutions-West to replace the
existing contract with a new 5-year agreement. The new agreement will relieve the City
of it's obligations on the existing contract and replace existing equipment with new
Item No. 2 . V .
City Council Staff Report
September 7, 2005 -- Page 2
Copier Program
equipment, saving the City approximately $16,000 over the remaining 27 months of the
contract's term.
Additional features of the new program include:
• provides copiers that have the same or greater functionality and are more energy
efficient;
• Provides a $1 buyout option for each machine at the end of the 5-year term
compared to the market-value buyout provision (that would cost an estimated
$65,000 to $80,000) of the current contract;
• locks in new maintenance pricing for 33 months beyond the end of the current
contract term at rates that are much less than what would be anticipated if the
City elected the buy-out provision of the current contract;
• replaces two City-owned copiers (not in the current program) at the Police
Department that have experienced heavy use, relieving the Police Department of
administrative responsibility for maintenance and supplies
• includes removal of old equipment and shipping of the new equipment.
Staff recommends that the City enter into this new copier lease agreement with Canon
Business Solutions-West.
FISCAL IMPACT:
Should City Council approve the new agreement, the City will save approximately
$16,000 over the next 27 months.
Funds for the program are provided in the budgets of the Document Management
Division and the Police Department. Under the new program, administration of this
program would be centralized under the Document Management Division.
Frojr^Butzla SO
GG stant City Manager David H. Ready, sty N a er
Attachments:
Minute Order
MINUTE ORDER NO.
RESCINDING THE CURRENT 5-YEAR LEASE
AGREEMENT AND APPROVING A NEW 5-
YEAR LEASE AGREEMENT FOR COPIERS
WITH CANON BUSINESS SOLUTIONS WEST,
INC., IN THE AMOUNT OF $8084.50 PER
MONTH PLUS $.006 PER COPY FOR
MAINTENANCE FOR A TOTAL NOT TO
EXCEED $575,070.
I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this
Minute Order, rescinding the current 5-year lease agreement and approving a new 5-
year lease agreement for copiers with Canon Business Solutions West, Inc., in the
amount of $8084.50 per month plus $.006 per copy for maintenance for a total not to
exceed $575,070, was adopted by the City Council of the City of Palm Springs,
California, in a meeting thereof held on the 7th day of September, 2005.
James Thompson, City Clerk