PRESENTER: Presenter
Barbara Coleman, Purchasing Manager
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SUBJECT: Title
Approval of a lease agreement with Ricoh USA for the Citywide rental of multi-function devices.
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DEPARTMENT: Non-Departmental
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COUNCIL DISTRICTS IMPACTED: NA
BACKGROUND INFORMATION:
The City issued a solicitation for a lease of multifunction copier equipment from suppliers with cooperative contract pricing. Six responses were received and evaluated, looking at cost, service and function. Upon evaluation it has been determined that Ricoh USA will provide the best value to the City with proven service and competitive pricing. Staff are recommending a 5-year lease agreement with the incumbent Ricoh USA for the City fleet.
Ricoh USA has provided and serviced the city since 2016 while providing excellent service. Copier usage has declined in transition since 2020 as the city has become more digitally dependent. It has been determined based on the decreased use that some equipment can be downsized without losing functionality. Ricoh is providing cooperative contract pricing through a BuyBoard agreement. The new contract will begin October 1, 2026. A plan is being finalized for the transition of equipment.
The lease agreement will include 39 pieces of equipment with copy, scan and fax functionality. The agreement incorporates copy pools for black/White and color, and auto toner replenishment. The cost of the lease is $95,880 per year with an aggregate of $479,400 for the five-year agreement. This is a savings to the City of $207,978 over a five-year term.
ISSUE:
Maintain fiscal stability of City operations.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☒Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
The new five-year lease for multifunction equipment is estimated to save the city $207,978. The estimated annual cost for all equipment and services is $95,880 per year ($7,990/month). The cost for this equipment is included in each individual department’s budget; therefore, sufficient funds are available to support this agreement.
Recommendation
RECOMMENDATION:
Staff recommend approval of a lease agreement with Ricoh USA for the Citywide rental of multi-function devices.