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9.f) Staff Report-Copier LeaseSCA\ DIIA Staff Report Date of Meeting: March 17, 2015 To: City Council From: Brenda Eklund, Deputy Clerk Re: Office Copier Equipment Rental Agreement Background: The City/Township has entered into leasing agreements for copier equipment for many years rather than purchasing the equipment outright. The lease covers all service calls, maintenance and toner supplies. A lease offers protection against costly repairs and malfunctions of the copier and gives an opportunity to upgrade to more efficient and modern equipment at the end of the term. Issue: The copier lease agreement which the City has with Loffler Companies will be ending in April 2015 after a 60-month term. The current Konica Minolta bizhub C280 is no longer manufactured and support would not be available if the City were to purchase the equipment outright. Should the City enter into another rental agreement for copier equipment? Proposal Details: Staff has gathered proposals from Loffler Companies and Toshiba Business Solutions. Both companies supply copier equipment using state contract pricing. Each vendor offered various copiers to consider. A cost analysis from both suppliers based on a 60-month rental of the lowest cost model that each recommended is summarized below. A 60-month term offers the lowest base cost. The service cost is based on the number of images produced using a monthly average of the past year's meter counts. Company Proposed Equipment Base Cost Service & Supply Cost Loffler Companies Canon C2225 $70.13/mo $47.39/mo average Toshiba Business Solutions Toshiba 3555c $165.16/mo $38.10/mo average The Canon C2225 model is a multifunction printer that has the features needed to meet office needs. Loffler noted that there is no charge for networking assistance from their IT department, something that was questionable with Toshiba. Consumable supplies such as toner and imaging units, and repair and maintenance of the copier under normal usage are included in the terms of the contract. The City Attorney has reviewed the agreement and suggested changes to language in the terms and conditions of the service agreement. Loffler was agreeable to these changes and amended the terms. Fiscal Impact: Payments for the rental of the copier will be locked at the base rate for the 5- year duration of the agreement, at a total of $4,207.00. The manufacturer's list price for the Canon C2225 is $12,060. The monthly service cost will vary depending on the number of images printed. Loffler's agreement will charge only for the amount of copies made at a rate of $0.0074 for black/white and $0.063 for color copies, rather than for a predetermined number of copies as under previous agreements. Toshiba's rates offered $0.0049 for b/w and $0.051 for color copies. Options: 1) Authorize a new 60-month lease agreement with Loffler Companies for the replacement of the office copier with an updated C2225 model. 2) Continue to research rental or purchase options for replacement of the office copier. 3) Make no decision at this time. Recommendation: Option 1.