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HomeMy WebLinkAboutStaff ReportCITY OF SEBASTIAN CITY COUNCIL STAFF REPORT DATE February 26, 2025 TO Honorable Mayor and City Council THRU Brian Benton, City Manager FROM Jessica Graham, Procurement/Contracts Manager SUBJECT Consideration of a purchase order for $14,720.92 for Konica Minolta Business Solutions to purchase the leased printers and multifunction devices, and consideration of Resolution R-25-05 approving a piggyback of the Konica Minolta Business Solutions Sourcewell Contract (#030321- KON) for maintenance service and supplies. EXECUTIVE SUMMARY In 2019, the City of Sebastian entered into a 63-month lease agreement with Konica Minolta Business Solutions for Citywide Managed Print Services. The lease agreement is set to expire on April 29, 2025. In anticipation of the lease ending, a Request for Information (RFI) 25-07 was released on November 8, 2024. The RFI was issued to identify potential cooperative contr acts the City could utilize for Managed Print Services. We received proposals from seven Firms: (1) Canon Solutions America; (2) Dex Imaging, Inc.; (3) Konica Minolta Business Solutions; (4) Novatech, Inc.; (5) Ricoh USA, Inc.; (6) Sissine’s Business Solutions of Orlando, LLC; and (7) Toshiba America Business Solutions, Inc. After holding virtual meetings with the firms, the city narrowed down the decision to Sissine’s Business Solutions, and the current vendor, Konica Minolta. Sissine’s Business Solutions provided 60-month lease options to either continue with 44 devices to match our current fleet or an approach that would reduce our printer fleet and supply devices based on usage. The managed print program included all services and supplies and an allotment of printers per copier model for a monthly payment. While the monthly fee was set, the City would be charged an overage for each print over the monthly allotment. Konica Minolta Business Solutions (Konica Minolta) proposed the option of purchasing the leased equipment based on our low usage volume. The printers could be bought for $1 each, and the copiers could be purchased for fair market value, for $14,720.92, to purchase 44 devices (27 printers and 17 MFDs). The current service agreement will auto-renew until we cancel. The agreement includes all parts, labor, service calls, and supplies, including the toner. The City is charged a set rate per print under the service agreement. It is estimated to cost around $23,000 per month based on the FY 24 average monthly usage. Due to the price, the service agreement will be purchase under Konica Minolta’s cooperative contract with Sourcewell. In accordance with the State of Florida procurement statutes and the City’s Code of Ordinance Section 2-10(c)(2)(b), the procurement procedures carried out by the awarding agency are equivalent to Sebastian’s procurement process. After reviewing both proposals (see attachment “Printer Comparison—Lease vs Buy”), it is in the City’s best interest to purchase the machines at the end of the lease and continue with the service agreement. While the evaluation is based on FY 24 usage, and the actual yearly numbers will fluctuate, it is cheaper to continue with the leased equipment instead of entering into another 60-month lease. RECOMMENDATION The Procurement Division requests that the City Council approve a purchase order for $14,720.92 for Konica Minolta Business Solutions to purchase the leased printers and multifunction devices, and approve Resolution R-25-05 approving a piggyback of the Konica Minolta Business Solutions Sourcewell Contract (#030321-KON) for maintenance service and supplies. ATTACHMENTS: 1. Resolution R-25-05 2. Procurement Justification 3. Printer Comparison 4. Konica Minolta Piggyback Agreement FUNDING SOURCE: Expenditure Required Amount Budgeted: Funding Source $24,240.97 – Remainder of FY 25 $20,287.50 – Remainder of FY25 General Funds $23,000.00 – FY 26 $23,921 General Funds $23,000.00 – FY 27 $23,921 General Funds $23,000.00 – FY 28 $23,921 General Funds $23,000.00 – FY 29 $23,921 General Funds Additional Funds Needed: approximately $3,953.47 will be needed to cover the lease buyout.