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Agenda Item 23.

City Council Meeting

Meeting Date:	07/16/2019
FROM:	Bill Gallardo

Subject:

Copier Equipment Rentals and Leases

RECOMMENDATION

Authorize the Purchasing Agent to execute the rental, lease, and maintenance agreements with Canon Solutions America, Inc. for a total of $14,816.49 per year based on 60-month rentals and leases of digital printing/copying equipment plus as-needed print charges estimated to be $6,285.26 per year; and to issue annual purchase orders based on available budget appropriations.

BACKGROUND/DISCUSSION

City departments utilize digital printing/copying equipment (equipment) to print an average of 66,487 copies per month or 797,844 per year. This equipment helps departments to meet their immediate needs for lower volume printing and copying. The high-speed/high-volume equipment located in Reprographics provides services for their larger printing and copying requirements. To help align department's needs with the right equipment at the right price, Purchasing reviewed the features and historical volume of each of the existing units, conferred with using departments, consulted with copier vendors, and visited a showroom for product demonstrations. Staff discovered that many units were underutilized, meaning that their capacity far exceeded their monthly volume; some had features that were not used at all or rarely used; while some were underperforming production requirements.

The scenario that best meets Brea’s current copying requirements and provides significant cost savings is to rent and lease all new units from Canon based on the competitively bid Orange County Rental Contract and the National Intergovernmental Purchasing Alliance (NIPA) cooperative purchasing contract. Use of these cooperative purchasing programs is authorized under section 3.24.170 of the Brea City Code.

Based on the historical volume for the current equipment, the cost of the equipment (rent and lease cost) and as-needed print charges, which includes all maintenance and supplies, except for paper is estimated to be $64,124.45 per year. The comparative costs for the new equipment would be about $21,101.74 per year, resulting in projected savings of $43,022.71 per year or $215,113.55 over the five-year agreements. The summary below provides the current costs, projected costs, and projected savings.

Current Annual Costs	Projected Annual Costs	Projected Annual Savings	Projected Five-Year Savings
$64,124.45	$21,101.74	$43,022.71	$215,113.55

Under the terms and conditions of the Orange County Rental Contract and the NIPA contract, the City has the right to terminate should funding or appropriations not be forthcoming.

COMMISSION/COMMITTEE RECOMMENDATION

The Finance Committee reviewed staff's recommendation at their July 9, 2019 meeting and it was recommended for City Council approval.

FISCAL IMPACT/SUMMARY

The Fiscal Year 2019-20 budget has sufficient funding available in the Administrative Services Department's Purchasing Division Account (110-14-1441-4253).

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Neil Groom, Procurement and Contracts Administrator
Concurrence: Cindy Russell, Administrative Services Director

Attachments
Rental Agreements
Lease Agreement