HomeMy WebLinkAboutItem 6d. Authorization to execute a Five-Year Lease Agreement with Ubeo for Replacement and Maintenance of Copier Equipment Item 6d
Department: Information Technology
Cost Center: 1101
For Agenda of: 2/20/2024
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Rebecca Cox, Business Analyst
SUBJECT: AUTHORIZATION TO EXECUTE A CONTRACT FOR COPY MACHINES
AND SERVICES WITH UBEO
RECOMMENDATION
1. Authorize the City Manager to execute a five -year lease agreement with Ubeo for
replacement and maintenance of copier equipment; and
2. Waive formal bids and authorize use of Shasta Union High School District R6 – 2020
Master Enabling Agreement to procure this purchase as allowed under 03.24.060E of
the City of San Luis Obispo Municipal Code.
POLICY CONTEXT
Per the Purchasing Policy, purchases greater than $200,000 must come before City
Council for approval. Waiving formal bids and authorizing the use of the Shasta Union
High School District (SUHSD) R6 – 2020 Master Enabling Agreement (Attachment A) to
procure this purchase is consistent with City Purchasing Policy, Section 204: No-Bid
Purchasing, and Municipal Code Section 03.24.060E, which permits staff to dispense with
bidding requirements, “when the purchase will be made cooperatively with one, or more,
other units of government, or from a local dealer within the city limit that can provide the
same brand, model and configuration of item(s) identified in the cooperative purchase
agreement(s) at or below the cooperative purchasing net cost within the same terms and
conditions.”
DISCUSSION
Background
The Cannon ImageRunner 5250 copiers purchased in 201 4 were deemed end-of-life as
of December 1, 2023. After nearly a decade in service the machines will no longer be
able to receive updates, and production for replacement parts will cease. This proposal
will replace the remaining ten Cannon 5200 series copiers and refresh eight additional
aging machines in the fleet. The additional model replacements are scheduled for
replacement parts to be discontinued in June and December of 2024 (Attachment B).
Page 71 of 199
Item 6d
Industry standard lifecycle for a copier is five years, with print volume playing a significant
role in the equation. All copiers slated for replacement in the table below have exceeded
the standard lifecycle.
Number Department Address Acquisition
Date Model Replacement
1 Attorney 990 Palm St 2014 October IR 400IF 529iF
2 City Clerk 990 Palm St 2013 May IR C5250 C3926i
3 Community
Development 919 Palm St 2014 October IR C5250 C3926i
4 Community
Development 919 Palm St 2014 October IR C5235A C3926i
5 Finance and
IT 990 Palm St 2013 July IR C5250 C3926i
6 Parks and
Recreation 1341 Nipomo St 2014 October IR C5250 C5840i
7 Fire Station 1 2160 Santa
Barbara Ave 2015 October IR C5235A C3926i
8 Human
Resources 994 Mill St 2014 October IR C5235A C3926i
9 Police 1042 Walnut St 2014 October IR 400IF 529iF
10 Police 1016 Walnut St 2014 October IR 400IF 529iF
11 Police 1042 Walnut St 2014 October IR 400IF 4935i
12 Police 1042 Walnut St 2014 October IR C5235A C3926i
13 Public Works 25 Prado Rd 2014 October IR C2225B C3926i
14 Public Works 919 Palm St 2014 October IR C5250 C3926i
15 Public Works 25 Prado Rd 2017 March IR C250IF C259iF
16 Utilities 879 Morro St 2014 October IR C5235A C3926i
17 Utilities 108 13th St 2015 October IR C3325I C259iF
18 Utilities 1900 Stenner
Creek Rd 2015 October IR C3325I C3926i
An analysis of the copiers due for replacement was conducted to inform on the copier
needs of the organization moving forward. Print data pulled from the past five years
revealed relatively minimal change in printing activity. A period of lower print deman d
aligned with the onset of COVID-19 in early 2020, with activity levels resuming
incrementally until reaching pre-COVID averages approximately 12 months following the
initial drop. Copier models and features are right sized for each office; the main unit of the
copier dictates print copy speed, print sizes, cassettes, and software features; additional
features such as cassette feeding (adding additional front loading paper supply), staple
finisher, inner finisher, 2/3-hole puncher and G3 fax board are all selected and configured
to the uses of the individual workgroups and location.
Page 72 of 199
Item 6d
Replacing the aging equipment also supports sustainability goals; a combination of fusing
technologies and lower-melting-point toner minimizes power requirements and helps
achieve low energy consumption. The selected models are Energy Star certified, and
rated EPEAT® Gold. EPEAT Gold identifies that products meet a demanding set of
criteria for sustainability leadership in electronics.
Under the Shasta Union High School District Enabling Agreement, Ubeo’s pricing and
services are made available to all local government entities. Staff finds that the terms of
that agreement are acceptable to the City, and “piggybacking” onto that agreement will
result in cost savings to the City for these services.
Previous Council or Advisory Body Action
On September 2, 2014, City Council approved the lease financing proposal for computer
and copier acquisitions and related documents (09/02/2014 – Item C7). At that time, the
lease purchase of 17 copiers was approved; of which, the majority of these copiers have
remained in service for the city and are now due for replacement.
Public Engagement
This item is on the agenda for the February 20, 2024, City Council meeting and will follow
all the required posting and notification. The public may comment on this item at or before
the meeting.
CONCURRENCE
The Finance Department concurs with the recommendations.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended actions in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2023-24
Funding Identified: Yes
Page 73 of 199
Item 6d
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $56,0001 $0 $0 $56,000
State
Federal
Fees
Other:
Total $56,000 $0 $0 $56,000
The city budgets $56,000 annually for print service, maintenance, and replacements,
supporting 30 machines citywide. The projected total expense over the five-year lease
stands at around $240,000, calculated based on the average monthly usage per machine
at the new rates. The total comprises lease payments of approximately $134,000 and an
estimated $106,000 for service and usage charges over the next five years. Through the
process of cost allocation non-general fund programs participate in the overall cost
sharing of the print service and hardware. The cost of leasing the copiers for the
remainder of FY 2023-24 is estimated at $8,000, which is already included in the FY 2023-
24 adopted budget. There will be no significant impacts to the budget from this agreement.
The lease cost is offset from the reduction in copy rates derived from the efficiencies of
the new machines. On average, black, and white copy rates dropped .72%, from a range
of $0.009958 - $0.021864 to $0.009000, and color copies reduced 3.22%, from
$0.086438 - $0.132201 to $0.057000, culminating in an estimated annual savings of
approximately $14,500.
ALTERNATIVES
1. Do not approve the lease of copiers. This is not recommended as the machines are
deemed end of support, and end of life. In the event there is a hardware issue with
end-of-life units, the ability to repair, or feasible cost to repair is not guaranteed.
2. Purchase versus lease copiers. To purchase the copiers requires $110,000 in
capital not currently allocated in the budget. Additional funds would be required
beyond the forecasted service and maintenance costs programmed in the budget.
ATTACHMENTS
A – Shasta Union High School District SUHSD R6 – 2020 Master Enabling Agreement
B – San Luis Obispo City Cannon Copier End of Life Dates
1 23-25 Adopted Financial Plan; $46,000 Finance Support Services, $10,000 Information Technology
Network Services
Page 74 of 199
Page 75 of 199
Page 76 of 199
Page 77 of 199
Page 78 of 199
Page 79 of 199
Page 80 of 199
Page 81 of 199
Page 82 of 199
Page 83 of 199
Page 84 of 199
Page 85 of 199
Page 86 of 199
Page 87 of 199
Page 88 of 199
Page 89 of 199
Page 90 of 199
Page 91 of 199
Page 92 of 199
Equipment ID
Serial
number Make Item model
Equipment IP
Address
Model Parts
Discontinued
Equipment
Install Address
Equipment
Meter Display
91626 LYD10066 Canon IR C2225 172.32.7.12 6/1/2023 10/24/2014 25 Prado Rd 172586
135426 RRB09000 Canon IR C5235 10.1.50.137 12/1/2023 10/24/2014 1042 Walnut St 381493
106309 RRB08987 Canon IR C5235 172.30.7.28 12/1/2023 10/24/2014 994 Mill St 458248
92000 RRB09061 Canon IR C5235 172.30.7.39 12/1/2023 10/24/2014 879 Morro St 459950
106663 RRB22010 Canon IR C5235 172.31.7.3 12/1/2023 10/21/2015 2160 Santa Barbara Ave 485250
106310 RRB08968 Canon IR C5235 172.29.7.20 12/1/2023 10/24/2014 919 Palm St 597293
90712 JMQ05934 Canon IR C5250 172.30.7.35 12/1/2023 7/11/2013 990 Palm St 712145
106312 JMQ16374 Canon IR C5250 172.29.7.5 12/1/2023 10/24/2014 919 Palm St 730197
91898 JMQ14316 Canon IR C5250 172.29.7.4 12/1/2023 10/24/2014 919 Palm St 1000697
90663 JMQ03252 Canon IR C5250 172.30.7.9 12/1/2023 5/8/2013 990 Palm St 1008609
106314 JMQ16376 Canon IR C5250 172.30.7.38 12/1/2023 10/24/2014 1341 Nipomo St 1428779
106664 QTW03354 Canon IR C3325i 192.168.10.199 6/1/2024 10/21/2015 108 13th St 15748
91992 QLA09985 Canon IR 400IF 10.1.50.171 6/1/2024 10/24/2014 1042 Walnut St 69524
91993 QLA09922 Canon IR 400IF 172.30.7.50 6/1/2024 10/24/2014 990 Palm St 73594
91991 QLA09935 Canon IR 400IF 172.31.7.12 6/1/2024 10/24/2014 1042 Walnut St 122947
106665 QTW03352 Canon IR C3325i 172.30.7.29 6/1/2024 10/21/2015 1900 Stenner Creek Rd 215804
91994 QLA09869 Canon IR 400IF 10.1.50.135 6/1/2024 10/24/2014 1042 Walnut St 587655
137580 QNR15192 Canon IR C250 172.32.7.10 12/1/2024 3/30/2017 25 Prado Rd 29459
176264 QTV06080 Canon IR C3330i 172.32.7.32 6/1/2025 11/20/2020 35 Prado Rd 238334
137330 WXF02840 Canon IR C5535i 172.29.7.6 6/1/2026 12/2/2016 919 Palm St 199879
167251 2BP04974 Canon IC MF429 10.1.50.182 3/1/2027 8/28/2019 1042 Walnut St 1096
155433 2BP04519 Canon IC MF429 172.31.7.6 3/1/2027 6/4/2019 1280 Laurel Ln 15611
155431 2BP04521 Canon IC MF429 172.31.7.7 3/1/2027 6/4/2019 1395 Madonna Rd 16709
155432 2BP04525 Canon IC MF429 172.31.7.5 3/1/2027 6/4/2019 126 N Chorro St 18272
176151 28X03259 Canon IR C256IF 10.1.50.154 3/1/2029 8/20/2020 1042 Walnut St 72148
180562 3CE09269 Canon IR C257IF 10.1.50.151 6/1/2030 1/13/2022 1135 Roundhouse 5405
184599 3CE04073 Canon IR C257IF 172.31.7.13 6/1/2030 4/20/2021 900 Southwood Dr 33289
184797 4CD02567 Canon IR C3826i 172.30.7.36 6/1/2030 12/15/2021 1260 Chorro St 34834
184631 2UL05696 Canon IR C357IF 10.1.50.249 12/1/2030 7/15/2021 1042 Walnut St 25328
180527 2XK01347 Canon IR C5860I 10.1.50.150 Not Yet Identified 7/16/2021 1042 Walnut St 265661
Page 93 of 199
Page 94 of 199