City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council approve a three-year contract agreement with
Ricoh Americas Corporation to provide six copiers to the police department.
BACKGROUND:
The Police Department’s current Xerox machines produce about 68,000 black &
white and 8,200 color reproductions monthly. Our five year contract with Xerox will
expire on August 30, 2008. Over the past couple of years, these Xerox machines
have become less reliable, and maintenance support has declined. Many internal
complaints have been received by Police Management about the copiers’
performance. End-users have dealt with frequent delays and minor mechanical
problems that have wasted employees’ time and efficiency. Xerox service response
times have varied from good to unsatisfactory. Court-imposed time restraints, public
records requests, and subpoena compliance, all require timely reports and reliable
document reproduction. Unreliable machines and/or poor service response can
create legal compliance issues for time sensitive materials.
In preparation for our contract’s termination, the Police Department has reviewed
proposals from Ricoh Americas Corporation and Konica Minolta Business Solutions
(KMBS). In an effort to stay current with technological developments, the
department’s focus has been for a three-year contract. It is also believed that these
machines will be more reliable and have fewer major breakdowns with a shorter
contract period.
Meeting Date: August 11, 2008 Item Number: C-4
AGENDA ITEM: Approval of a Three Year Contract with Ricoh Americas
Corporation for Police Department Copy Machines.
Contact Person/Dept.:
Lt. Dean Williams
Phone Number: (310) 253-6104
Fiscal Impact: Yes [x] No [] General Fund: Yes [x] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification: Master E-Mail Notification List ()
Department Approval:
Don Pedersen (07/24/08)
City Attorney Approval:
Carol Schwab (by H. Baker) (08/06/08)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (08/06/08)
City Manager Approval:
Jerry B. Fulwood (08/06/08) City of Culver City, California
City Council Agenda Item Report
Of the two proposals, Ricoh Americas Corporation conducted a more thorough
examination of our needs than KMBS, recommending six machines, rather than four.
Furthermore, KMBS’ proposed machines matched, or barely exceeded the
capabilities of the current Xerox machines. KMBS’ proposal is a lower base price
and ala carte per-copy pricing. Ricoh’s proposal includes many useful features for
which KMBS will charge extra. Both companies’ proposed machines were evaluated
at their respective showrooms, and were judged to provide excellent products that
are superior to our current Xerox machines.
DISCUSSION:
The Police Department’s current printing needs have resulted in numerous stand-
alone printers, scanners, and faxes that could benefit from consolidation. Toner
costs are very high for these separate machines, and stock management as well as
the technical knowledge required to service these devices takes staff time and
direction away from other more productive assignments. Time delays, product
obsolescence, upgrades, and multiple/varied service support providers cause more
inefficiency.
Ricoh’s machines will consolidate many separate processes and enhance our
efficiency, while reducing or eliminating the need for separate devices. Staff will be
able to print reports via the network directly to these machines, which are supported
under the proposed contract. The machines will “call home” and report service
difficulties directly to Ricoh, as well as automatically record billable information.
These machines will automatically e-mail selected staff when toner and supplies are
low.
The key differences between Ricoh’s Pro906EX versus KMBS’ Bizhub 750 are:
Ricoh has higher print speeds and significantly higher duty cycles for our records
section copier; Newer technology (June 08 versus November 05 release dates);
Higher print resolution; Color scanning and their call-home-for-service feature that
staff sees as major advantages. Ricoh includes two additional machines versus
KMBS’ proposal that will consolidate more functions, provide system redundancy,
and minimize employee inefficiency.
Ricoh provided a side-by-side analysis of these “flagship” copiers proposed by both
companies. Ricoh’s comparison is included in the attachments.
Ricoh, under the www.uscommunities.org competitive bid process, was selected by
the cities of Los Angeles and Santa Monica police departments for their
copying/printing needs.
City of Culver City, California
City Council Agenda Item Report
FISCAL ANALYSIS:
Xerox’s current costs including lease payments and printing overages run about
$2,450 per month for four machines, while numerous standalone printers use
approximately $1,100 in consumables (does not include maintenance for these
printers). Monthly toner and maintenance for fax machines have not been
specifically tracked, and are not included. On average, the Police Department
currently spends at least $3,550 per month for our printing needs.
KMBS provided a base lease price of $1,529.20 for four new machines of similar
capability of our current Xerox machines. Printing costs are $0.082 per color
copy/print, and $0.010 per black & white copy/print per month using color capable
machines (three of four), while the remaining black & white machine will have a per
copy/print cost of $0.0063. Pricing includes service and supplies, excluding paper
and taxes.
Ricoh Americas Corporation’s proposal is for six total machines and includes a base
lease price with a printing allowance of 9,000 color pages/month and 75,000 black &
white pages/month. Unused printing allowances can be carried over from month-to-
month within the quarter, minimizing additional printing charges. Pricing includes
service and supplies, excluding paper and taxes.
Both companies provided unlimited training, delivery, and support.
Using the department’s average printing counts per month and estimating that 3/4ths
of all black & white printing will be at the lower printing rate, the Police Department
can expect a minimum month billing from KMBS as follows:
Black & White copies/prints:
68,000 @ 75% * $0.0063 = $321.30
68,000 @ 25% * $0.010 = $170.00
Color copies/prints:
8,200 * $0.082 = $672.40
Monthly lease and minimum printing charges: $1,529.20 + $1,163.70 = $2,692.90
Ricoh’s monthly lease includes our average printing counts, plus additional printing
allowances that “roll over” from month-to-month within each quarter. This cushion
would be helpful when the Police Department has significant events with
correspondingly higher printing counts.
City of Culver City, California
City Council Agenda Item Report
Monthly lease: $3,250
Printing excesses over the monthly allowance and accumulated roll-over prints will
be billed at: Black & White: $.009 per copy/print, and color at $.07 per copy/print.
KMBS’s expected minimum costs could potentially save as much as $850 per month
over our current Xerox contract costs and separate printing systems; However, Staff
recognizes that our printing needs have changed dramatically from month-to-month
and without carry-over printing allowances and ala carte pricing, our monthly billing
could exceed our current printing costs, or result in a savings.
Ricoh’s lease proposal will have a minimum savings of $300 per month over our
current arrangement. Staff feels that this savings is realistic, as the printing
allowances will likely cover the varying changes in our monthly printing needs. Over
the three year contract term, Ricoh’s proposal will very likely result in a $10,800
savings as compared to the department’s current situation.
Comparison of monthly average cost-per-machine:
KMBS’ four machines ($2692.90 / 4) = $673 (estimate)
Ricoh’s six machines ($3250.00 / 6) = $541
Total cost of Ricoh’s contract: 36 months @ $3,250 per month = $117,000
(excludes potential printing costs over cumulative allowances).
ATTACHMENTS:
1. Exhibit A - Ricoh’s side-by-side comparison between Ricoh Pro906EX and
KMBS’ Bizhub 750.
MOTION:
That the City Council:
1) Approve a three-year contract with Ricoh Americas Corporation and;
2) Authorize the City Attorney to review/prepare the necessary documents; and,
3) Authorize the City Manager to execute such documents on behalf of the City.