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HomeMy WebLinkAbout5.B.1. Copier Lease S. /3.[ CITY OF SHAKOPEE MEMORANDUM CONSENT To: Mayor and City Council Mark McNeill, City Administrator From: Travis Karlen, Recreation Supervisor Brad Eller, Recreation Supervisor Meeting Date: March 20, 2007 Subject: Copier Lease INTRODUCTION The lease and service agreement for the current Parks and Recreation Ricoh 2238C copier expires on March 30th. We are recommending renewing our 36 month lease with Metro Sales and upgrading to a Ricoh MPC 4500. BACKGROUND The City entered into a lease agreement for our current copier in 2004. This copier has served the recreation department well during the three years of the lease. The copier did have maintenance issues; however Metro Sales was quick to resolve any problems we had with the copier under their maintenance agreement. DISCUSSION We are recommending that the City renew a three-year lease and service agreement with Metro Sales for a Ricoh MPC4500. This copier is on the State Master Contract for purchases. I The current copier we have is a Ricoh Aficio 2238C. The copier fits our needs, but is not built to produce the quantity of copies the Parks and Recreation Department demands. The upgrade to the Ricoh MPC 4500 would allow us to have multiple paper trays, scan to email or file capabilities, document server, and a facsimile module. The upgrade will also be able to handle the workload demand of the department, which will result in a more efficient use and less maintenance issues. Along with the upgraded technology of this unity, we will be provided a high-volume black and white copying rate, and a low-cost, no minimum color rate. The service agreement being proposed includes 60,000 copies per quarter (20,000/month). The previous contract allowed for 51,000 copies per quarter (17,000/month). Color copies are at $0.09/copy with no minimum (a .01 decrease from our previous contract) and can be made available to the entire City. The networked feature of this unit makes it accessible to other City staff as a color printer, and can track users/add restrictions to prohibit making unnecessary color copies. The scanning feature of this unit will help us to convert paper copies into electronic documents to be easily accessible to part time and full time staff. BUDGET IMPACT Based on our copying volume and current service agreement costs, we had included $783/month for copier leasing and service in our 2007 budget. The proposed lease and service agreement for this unit is $687/month for a larger volume annually. We are recommending continuing with the leasing option in order to eliminate a significant one-time budget impact and keeping the lease term at three years. This will allow us to upgrade more frequently to meet our growing volume. The service agreement includes all copier maintenance and repair, and all color/black and white copying supplies except for paper and staples. All other features are included in the lease. RECOMMENDED ACTION If City Council concurs, authorize staff to enter into an agreement with Metro Sales for a 36 month lease and service contract on a Ricoh MPC 4500.