City of Culver City, California
Agenda Item Report
Meeting Date: 08/24/09 Item Number: C-8
CITY COUNCIL AGENDA ITEM: Approval of Agreement with Konica Minolta
Business Solutions Inc. (Gardena, CA) for the Lease of Multi-function Copying,
Printing, Scanning, and Fax Machines for a Period of 36 Months.
Contact Person/Dept.: Lloyd Reynolds Phone Number: 310 253-6090
Fiscal Impact: Yes [x] No [] General Fund: Yes [x] No []
Public Hearing: [] Action Item: [] Attachments: [x]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (Phone) Konica Minolta Business Solutions Inc. (08/19/09), (Phone)
SoCal Offices Technology Kyocera (08/19/09), (Phone) Xerox (08/19/09) (Phone) Ricoh
(08/19/09), (Phone) Canon (8/19/09); (E-Mail) Meetings and Agendas – City Council
(08/19/09)
Department Approval:
John Richo (8/13/09)
City Attorney Approval:
Carol Schwab (by R. Miranda (08/19/09)
Chief Financial Officer Approval:
Jeff Muir (08/19/09)
City Manager Approval:
Mark Scott (08/19/09)
RECOMMENDATION:
Staff recommends that the City Council approve an agreement with Konica Minolta
Business Solutions Inc. (Konica) for the lease of multi-function copying printing,
scanning, and fax machines (MFC).
BACKGROUND:
The City has deployed 22 MFC’s at strategic locations in various city buildings.
These machines are utilized by city staff for a variety of administrative functions. The
current lease on the MFC’s expires on September 9, 2009.
DISCUSSION:
Our current MRC’s are on lease from Konica. Our experience has been satisfactory
both with the operation of the MFC’s and maintenance provided by Konica. For this
renewal, the Graphic Services Division obtained bids from six vendors
(ATTACHMENT 1). The bid received from Konica (ATTACHMENT 2) is both the
lowest bid and lower than our existing costs. The newer model MFC’s will also have
enhanced features and technology. The following table includes a summary of the
costs under the current contract and under the proposal from Konica:
Current Monthly cost
(number of units)
$281.77
(17)
$622.70
(2)
$58.26
(3)
Proposed Monthly cost $207.99 $483.38 $53.06 City of Culver City, California
Agenda Item Report
On a monthly payment schedule, the total annual cost would be $55,941.24. If a
single annual payment were made, a discount of $4,864.73 was negotiated (for a
payment of $51,076.51). Additionally Konica has reduced our “click charge” (cost per
copy) from .0067 to .0046. Click charges are the basis for maintenance cost
resulting in an estimated savings of $5,090 annually. In total, the new lease should
save the city almost $10,000 annually over our current lease. The lease term
proposed is 36 months (three years).
Based on our satisfactory experience with the vendor and low bid, staff recommends
the City Council approve an agreement with Konica for leasing of MRC’s. Further, in
order to take advantage of the discount provided for a single annual payment,
should the City Council approve the agreement, staff will make a single annual
payment.
Our competitive quotation process is in accordance with the Municipal Code Section
3.07.070 (B) (7): “The City may award purchase orders and contracts in any amount
for personal or professional services without complying with the provisions of this
Subchapter; provided that, the purchase order or contract shall be based upon
competitive quotations, whenever practical, as determined by the City Manager from
not less than three (3) vendor contractors, for rental of real property or equipment”.
FISCAL ANALYSIS:
Adequate funding is available in account 10126100.605100 – Rental of Equipment
to cover this lease and in account 10126100.600200 – Repair & Maintenance of
Equipment to cover maintenance.
ATTACHMENTS:
1. Summary of Vendor Competitive Bids
2. Konica Proposal
MOTION:
That the City Council:
1. Approve an agreement with Konica for lease of MFC’s not to exceed
$56,142.80 (including tax) annually for a term of 36 months (3 years).
2. Approve an agreement for annual maintenance in the amount of $15,000.
3. Authorize the City Attorney to review/prepare the necessary documents; and,
4. Authorize the City Manager to execute such documents on behalf of the City.
Meeting Date: August 24
th
2009
Agenda Item: Approval of agreement with Konica Minolta Business Solutions
inc. (Gardena, CA) for the lease of multi-function copying, printing, scanning, fax
machines.
Attachments:
1. Vendor competitive bids
2. Konica proposal
1COMPANY SYSTEM Model PPM
Number
of Units
Aggregate
base/year
COPY
CHARGE
Equipment
Maintenance
Equipment
Lease Per Year
Annual
Lease**
Current
Cost
SoCal Office Sharp MX-M363N 36 17 $0.0060 $179.80 $36,679.20
Technologies. Sharp MX-M850 85 2 $0.0060 $483.66 $11,607.84
48 Mo Sharp AR-168S 16 3 $0.0060 $72.47 $2,608.92
2,900,000 $17,400.00 $50,895.96 $63,338.40
36 Mo Kyocera KM-3060 30 17 $0.0055 $164.00 $33,456.00
KYOCERA (1) Kyocera TASKalfa 820 82 2 $0.0055 $306.00 $7,344.00
Kyocera KM-1820 18 3 $0.0055 $82.00 $2,952.00
2,900,000 $15,950.00 $43,752.00 $52,020.00
36 Mo Xerox 5030 30 17 $0.0060 $220.84 $45,051.36
XEROX Xerox 4595 95 2 $0.0060 $716.12 $17,186.88
Xerox 4118 18 3 $0.0060 $43.79 $1,576.44
2,900,000 $17,400.00 $63,814.68 $71,244.60
36 Mo Ricoh MP 4000SPF 40 17 $0.0046 $181.97 $37,121.88
RICOH Ricoh MP 9001P 90 2 $0.0046 $589.95 $14,158.80
Ricoh SP 3200sf 30 3 $0.0046 $29.38 $1,057.68
2,900,000 $13,340.00 $52,338.36 $62,442.00
KONICA Konica Bizhub361 36 17 $0.0046 $207.99 $42,429.96 $281.77
Konica Bizhub Pro 950 92 2 $0.0046 $483.38 $11,601.12 $622.71
Konica Bizhub 161f 16 3 $0.0046 $53.06 $1,910.16 $58.26
2,900,000 $13,340.00 $55,660.44 $51,076.51
$0.0067
Canon 3235i 35 17 $0.0059
CANON Canon 1025IF 23 3 $0.0059
Canon 7095 95 2 $0.0059 $6,014.22
2,900,000 $17,110.00 $72,170.64 $80,322.84
** - does not include sales tax
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