HomeMy WebLinkAbout6.A.1. Copier Lease
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CITY OF SHAKOPEE
MEMORANDUM CONSENT
To:
Mayor and City Council
Mark McNeill, City Administrator
From: Travis Karlen, Recreation supe~isor
Brad Eller, Recreation Supervisor
Meeting Date: APri13,20071
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Subject: Copier Lease i
INTRODUCTION
This agenda item seeks a Council action to rescind the motion to enter into a lease
agreement with Metro Sales and authorize an agreeme'nt with Crabtree.
BACKGROUND I
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 wa,s quick to resolve any problems
we had with the copier under their maintenance agreerl!lent.
At the March 20th meeting, staff recommended that the ICity renew a three-year lease
and service agreement with Metro Sales for a Ricoh MI?C4500. This copier is on the
State Master Contract for purchases. I
After that meeting, we received notice that we did not follow the procedure set forth in
the City's IT policy regarding copiers, where IT is to be involved in the process. IT
assisted us with obtaining quotes from the City's preferred copier vendor, Crabtree
Companies, and has selected an equivalent copier to the one proposed by Metro Sales.
Our total lease and maintenance costs for a copier from Metro Sales for three years
would have been $13,070, and it will be $14,100.68 from Crabtree. Although the lease
and service contract amounts are equivalent, in order to keep our business, Metro Sales
was willing to cover March and April lease payments for our current copier ($390.26/mo),
and pay the full return shipping costs for the copier (approximately $250, which reflects
Crabtree's agreement to pick up ~ of the shipping cost). However, having only one
company for service contracts (Crabtree) does create efficiencies for the city as a whole,
and Crabtree's service is reportedly good.
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 either the Ricoh 4500 MPC through Metro Sales or the agreement
for the Gestetner DSc545 would comply with the funds available in the Parks and
Recreation budget.
REQUESTED ACTION
F. Housekeeping Item
RECOMMENDED ACTION I
If City Council concurs, move to rescind the authorizatic:>n to enter into a lease and
maintenance agreement with Metro Sales made at the March 20th Council meeting and
authorize a agreement with Crabtree Companies Inc. fdr a 36 month lease and service
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contract on a Gestetner DSc 545. I