Title
Consider a memorandum/resolution authorizing a five-year printer lease for Communications Print Services from Ricoh, in the amount of $55,752.60.
Summary
DATE: October 17, 2023
TO: Kent Cagle, City Manager
FROM: Janell J. Lewis Ford, Executive Director of Communications
SUBJECT: New lease for the Print Shop
BACKGROUND AND FINDINGS:
The City of Killeen operates an internal print shop to create printed materials in support of the organization. Industrial-sized printers are necessary to accommodate the volume of printed products produced. The current black and white printer/copier fulfills approximately 72 black and white only printing/copying only work orders for 401,000 pieces of printed material annually.
The City’s current four-year contract with Konica Minolta will expire October 2, 2023. After four years of printing/copying on the Konica Minolta, staff has experienced that having an office printer/copier is not beneficial based on the number of prints/copies that are produced annually at Printing Services.
Prior to the contract’s expiration, staff explored replacement solutions based on current and anticipated organizational needs. Staff compared products and determined the best solution was a monochrome, high production printer/copier. The switch from an office printer/copier will result in staff’s ability to compete with their consistently increasing demand of prints/copies, increased quality, and offer a faster completion on requested work orders. The proposed printer/copier has high-production features to include multiple, larger capacity paper decks, increased number of paper types that can be printed/copied on, advance finishing options that include booklet stapling, hole punching, and single stapling, and software license that will allow for printing multiple pages per sheet for the cost of a single print.
This printer lease is a 60-month term available through Ricoh’s Texas Association of School Boards, BuyBoard, purchasing cooperative # 713-23, for an annual cost of $11,150.52 and total lease cost of $55,752.60.
The new printer/copier offers standard and preferred options with full warranty, supplies, maintenance, customer training and support for the life of the lease.
THE ALTERNATIVES CONSIDERED:
1. Operate without a lease agreement with no maintenance warranty on an outdated printer/copier.
2. Enter a five-year lease agreement with Ricoh for a new printer/copier.
Which alternative is recommended? Why?
Alternative #2 is recommended as providing the best product and value to meet the needs of Printing Services.
CONFORMITY TO CITY POLICY:
This purchase conforms to City policies and law. Purchases made through a sole source are exempt from the competitive bidding process as stated in Texas Local Government code section 252.022(a)(7)(A), a local government that purchases goods or services under this subchapter satisfies any state law requiring the local government to seek competitive bids for purchases of the goods or services.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The fiscal impact of the printer for each fiscal year is as follows:
FY 2024 - $10,221.31
FY 2025 - $11,150.52
FY 2026 - $11,150.52
FY 2027 - $11,150.52
FY 2028 - $11,150.52
FY 2029 - $929.21
Is this a one-time or recurring expenditure?
Recurring
Is this expenditure budgeted?
Yes, funds are available in the General Fund lease accounts 010-9004-489.71-12 and 010-9004-489.71-13.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
City staff recommends that City Council authorize the City Manager or his designee to approve the Ricoh lease agreement through Texas Association of School Boards, BuyBoard, cooperative for the term of five years in the amount of $55,752.60 and that the City Manager or designee be authorized to execute any change orders as permitted by state and local law.
DEPARTMENTAL CLEARANCES:
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
Digital Agreement
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