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CC - (1) Approval of an Agreement with Konica Minolta for Citywide Multifunction Device Managed Print Services in an Amount Not-to-Exceed $60,000 for a Term from July 2019 to June 2020; and (2) Authorize the City Manager to Approve Four One-Year Renewals for Amounts Not-To-Exceed the Prior Year’s Cost by More than 15%, Subject to Subsequent Year Budget Approvals.
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Meeting Date: July 8, 2019
Contact Person/Dept: Michele Williams/Information Technology Department
Phone Number: (310) 253-5950
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (07/02/19);
Department Approval: Michele Williams, Chief Information Officer (06/28/19)
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RECOMMENDATION
Staff recommends the City Council (1) approve an agreement with Konica Minolta for citywide multifunction device managed print services in an amount not-to-exceed $60,000 for a term from July 2019 to June 2020; and (2) authorize the City Manager to approve four one-year renewals for amounts not-to-exceed the prior year’s cost by more than 15%, subject to subsequent year budget approvals.
BACKGROUND/DISCUSSION
The City utilizes multi-function devices providing copier, fax and scanning services for business operations throughout various departments. The Information Technology Department has included in its Fiscal Year 2019/2020 budget to initiate a project to replace the City’s fleet of bizhub® devices as the current fleet is over ten years old and has reached the end of its useful life. Many units require frequent repair with some out of order entirely, resulting in lost staff time and increased cost of operation for machine use.
Staff has evaluated lease versus purchase options and has determined the managed print services (MPS) offered by Konica Minolta to be the most cost-efficient solution. Konica Minolta’s proposed solution includes initially replacing the City’s current 42 multifunction devices along with providing ongoing toner, equipment repair, supplies (excluding paper), preventative maintenance and parts, on-site proactive service and support with guaranteed service level response times, detailed account usage and a simplified billing process over the term of the agreement. Staff will continue to evaluate the need for additional units to meet business operational needs through the City, which may result added costs in subsequent years. The Konica Minolta MPS solution additionally includes a $1 buyout program per device at the conclusion of the five-year agreement.
Culver City Municipal Code Section 3.07.055.G exempts bidding requirements where competitive bid procedures have already been utilized by the City, public agency or joint power agency and the goods or supplies are supplied to the City at the same or better price. Because multifunction devices as supplied by Konica Minolta have previously undergone competitive solicitation procedures with the County of San Bernardino and Konica Minolta will supply the same services at the same or better rate, this procurement meets this requirement.
Staff is recommending the City Council approve an agreement with Konica Minolta in an amount not-to-exceed $60,000 for a term from July 2019 to June 2020 with four one-year extensions for amounts not-to-exceed the prior year’s cost by more than 15%, subject to subsequent year budget approvals.
FISCAL ANALYSIS
The City Council Adopted Budget for Fiscal Year 2019/2020 includes an approved enhancement of $50,000 for the Citywide bizhub® copy/fax/scan replacement program (10124200.619800). There is additionally approved funding in the IT Department Equipment Repairs & Maintenance budget (10124200.600200) for ongoing printer repair services, which will instead be used for this full-service managed printer services agreement. Service costs not to exceed 15% of prior year costs will be incorporated into future budgets.
ATTACHMENTS
None.
MOTION
That the City Council:
1. Approve of an agreement with Konica Minolta for citywide multifunction device managed print services in an amount not-to-exceed $60,000 for a term from July 2019 to June 2020;
2. Authorize the City Manager to approve four one-year renewals for amounts not-to-exceed the prior year’s cost by more than 15%, subject to subsequent year budget approvals;
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.