Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AND SERVICE AGREEMENT WITH VISUAL EDGE IT FOR MULTIFUNCTION PRINTERS.
Brief Description: Staff is requesting to enter into a 5-year lease agreement with Visual Edge IT for the lease of new multifunction equipment in the amount of $43,669.20 over the 5-year period and a 5-year Service Agreement on a per-copy basis. The contract would commence upon the delivery of the new equipment.
Body
Legislative History
Res. No. 16-177 - Entered into Lease with Ricoh for Equipment at Municipal Services Center; passed 11/15/2016.
Res. No. 17-17 - Entered into Lease with Ricoh for Equipment at Public Works Dept.; passed 2/7/2017.
Purpose & Explanation
In 2021 staff bought out the leases for multifunction printers located at various City buildings and entered into a 2-year maintenance agreement with Visual Edge IT (FKA, Graphic Enterprises), which ends on February 6, 2024. The existing copiers, which were acquired in 2017, have now reached the end of their expected lifespan.
A copier team, consisting of Paul Leedham, Susan Chapman, Derek Fertig, Melissa Raber, Krista Roch, and Sheryl Westbrook, initiated a solicitation process, inviting proposals from three different vendors for 5-year lease of multifunction printers, combined with a 5-year service agreement. The proposal consisted of the lease of five (5) brand-new machines for a duration of 60 months, as well as a service agreement covering thirteen (13) machines for a 60-month period. Below, we provide a summary of the quotes received from the three vendors, with a more detailed breakdown included as an attachment.
- Visual Edge IT: $6,669.72 per year, totaling $33,348.60 over 60 months.
- Blue Technologies: $8,148.00 per year, totaling $40,740.00 over 60 months.
- Konica Minolta: $8,757.03 per year, totaling $43,785.13 over 60 months.
In addition to the 5 new leases, the City renegotiated three (3) current leases we have with Visual Edge IT for printers that are at Police. This will allow for a dollar buyout at the end of the leasing term, and will keep all machines on the same replacement rotation. The total annual cost would be $2,064.12, with a total cost of $10,320.60 over the 60-month term. The total lease contract over the 60-month term for all 10 machines would be $43,669.20.
Visual Edge IT has also offered a Service Agreement for a 60-month term, covering not only the 5 new leased machines, negotiation of the 3 police leases, but also the 5 machines that the City currently owns. This Service Agreement is based on a per-copy basis, encompassing both color and black-and-white copies at a rate noted on the attached detailed breakdown.
After careful evaluation of the submitted proposals, the copier team recommends a 60-month lease of five (5) new multifunction printers, renegotiation of the three (3) police printers, along with a 60-month service agreement that includes the five newly leased printers, three police units and five existing printers, all provided by Visual Edge IT. These five new leased machines will be placed at City Hall (3), Public Works (1), and EMS (1). It's worth noting that the lease amount offered by Visual Edge IT is more cost-effective than the state-term price stipulated in contract RS1007281.
Fiscal Impact
X Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends that City Council approve the Resolution authorizing and directing the City Manager to enter into an agreement with Visual Edge IT to provide multifunction equipment for various department for the next 60-months as well as a 60-month service agreement.
Submitted by,
Thomas Sheridan, City Manager
Paul Leedham, CIO - IT Director
Susan Chapman, IT Operation Software Manager
Derek Fertig, Network Systems Administrator
Melissa Raber, Business Operations Manager - Professional Services
Krista Roch, Business Operations Manager
Sheryl Westbrook, Office Manager