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HomeMy WebLinkAboutCLK 06-25Report to Council Report Number: CLK 06-25 Date: December 15, 2025 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Xerox Canada Ltd. Print Shop Equipment Lease Renewal Red X. Technologies Inc. File: A-1440 Recommendation: 1.That Report CLK 06-25 regarding Xerox Canada Ltd. Print Shop Equipment Lease Renewal be received; 2.That Council approve the new lease agreements with Xerox through Red X Technologies Inc. for a period of five and a half years; from May 1, 2026 to October 31, 2031 with the option to extend to October 31, 2033, based on the terms and conditions of collaborative agreement number OECM-2022-411 - Multi-Function Devices and A4 Printer; 3.That the Director, Corporate Services & City Solicitor be authorized to execute the lease agreement for the Xerox Canada Ltd. printers and any related agreements; 4.That the total contract value over the lease term, not to exceed $291,760.29 (net HST), be funded through the approved Current Budgets from 2026 to 2031; and, 5.That the appropriate officials of the City of Pickering be authorized to take the actions necessary to implement the recommendations in this report. Executive Summary: The purpose of this report is to renew the lease for two high- capacity printers located in the Print Shop at City Hall: •Xerox Versant 280 (color printer) •Xerox PrimeLink B9125 (black-and-white printer) The current lease agreement is expiring on April 30, 2026, and a new lease has been negotiated under the terms of the Ontario Education Collaborative Marketplace (OECM) agreement (#OECM-2022-411-11), which the City will join through a Customer-Supplier Agreement (CSA). The new lease includes the replacement of the current two printers with updated models and reflects current market rates and service terms, with maintenance and support provided by Xerox Canada Ltd. (Xerox) under the CSA. In accordance with Section 13 of the Purchasing Policy PUR 010, the City may enter into arrangements with municipalities, local boards and other public bodies on a cooperative or joint venture basis where there are economic advantages and where the best interests of the City would be served. CLK 06-25 December 15, 2025 Page 2 Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Priority of Champion Economic Leadership & Innovation. Financial Implications: The proposed lease is based on semi-annual payments of $26,064.92 (excluding HST), for a 66-month term. The total contract value over the term is approximately $286,714.12 (excluding HST) and the total net cost is $291,760.29 (net HST) over the full lease term. The funding for this lease will be included annually in the Print Shop/Mail Room approved Current Budget for the five and a half year lease period. Discussion: The purpose of this report is to renew the lease agreement with Red X Technologies for two printers located in the Print Shop at City Hall. These devices are essential for producing public notices and other high-volume print jobs. In 2015, Red X Technologies Inc. was awarded a five and a half year contract with the City for the provision of two Xerox printers for the Print Shop/Mailroom. At the expiration of the contract, it was renewed for an additional 63 months, which will end on April 30, 2026. In preparation for renewing the lease for the black-and-white and color printers in the Print Shop, staff have received pricing from Red X Technologies Inc. in accordance with the OECM agreement. Red X Technologies Inc. is the City’s local authorized Xerox distributor, providing competitive pricing and support under the OECM agreement. Xerox is a vendor of record for large volume, print shop photocopiers approved by the OECM, which solicits bids and awards contracts to be used by colleges, universities, school boards and municipalities across Ontario. The new lease agreement is for a term of 66 months and provides for 11 semi-annual payments of $26,064.92 plus applicable taxes. The contract renewal will replace the existing printers with newer machines with more advanced printing capabilities at the same rate provided under the previous agreement. The lease and maintenance agreements are governed by the OECM CSA between the City and Xerox, which aligns with the OECM agreement. Key provisions of the CSA include a term effective from the date of execution, through October 31, 2031, with a potential extension to October 31, 2033. Pricing and services are based on standardized rates and specifications outlined in the OECM agreement. The CSA also includes provisions for termination with notice, including for cause or material changes in municipal requirements. Additionally, Xerox is obligated to provide preventative maintenance, repairs, and supply replenishment under the CSA terms. It should be noted that selecting a new vendor would require replacing the existing Xerox printers with different equipment. This change would involve significant upfront costs for new hardware, installation, and staff training. It could also lead to additional expenses for integration with current systems and potential downtime during the transition. By renewing the lease with Xerox through Red X Technologies Inc., the City avoids these extra costs and ensures continuity of service at competitive rates. CLK 06-25 December 15, 2025 Page 3 Since receiving the pricing from Red X Technologies Inc., the new OECM agreement has introduced an increase in pricing for leased equipment. In order to take advantage of the more favorable rates that were communicated to the City prior to this adjustment, it is necessary to renew the agreement before the end of 2025. Acting within this timeframe will allow the City to secure the previously quoted pricing and avoid the higher costs associated with the updated OECM structure. This proactive approach ensures fiscal responsibility while maintaining continuity of essential print services. Staff are therefore seeking Council’s approval to enter into the new lease agreements with Xerox through Red X Technologies Inc. Attachment: None. Prepared By: Approved/Endorsed By: Rumali Perera Cathy Bazinet Deputy Clerk Manager, Procurement Susan Cassel City Clerk Paul Bigioni Director, Corporate Services & City Solicitor Stan Karwowski Director, Finance & Treasurer SC:rp Original Signed By:Original Signed By: Original Signed By: Original Signed By: Original Signed By: CLK 06-25 December 15, 2025 Page 4 Recommended for the consideration of Pickering City Council Marisa Carpino, M.A. Chief Administrative Officer Original Signed By: