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HomeMy WebLinkAboutCS 54-05PICKERING REPORT TO COUNCIL Report Number: CS 54-05 Date: June 21,2005 Fro m: Gillis A. Paterson Director, Corporate Services & Treasurer Subject: Convenience Photocopiers Proposed Lease Agreement - August 1, 2005 to July 31, 2010 Recommendation: 1. That report CS 54-05 of the Director, Corporate Services & Treasurer be received and that; 2. RFP-6-2005 submitted by Toshiba Canada, to replace fourteen convenience photocopiers and provide one color photocopier be accepted; Council authorize the Director, Corporate Services & Treasurer to execute a lease agreement with Toshiba Canada for the provision of photocopiers as proposed in Recommendation #2 above; Council authorize the Director, Corporate Services & Treasurer to alter terms, conditions and/or suppliers if necessary, to meet, maintain and provide departmental photocopy services for the City; and, 5. Staff at the City be given the authority to give effect thereto. Executive Summary: The City is currently at the end of a 66-month lease agreement with Konica/Minolta to provide a total of 14 convenience copiers within all divisions and facilities at a contracted rate of $0.0173 per copy. This lease agreement expires on June 30, 2005. Supply & Services have completed a Request for Proposal (RFP-6-2005), a summary of the results are attached. The Iow proposal was submitted by Toshiba Canada, at a rate of $0.0202 per copy, for the supply of fourteen (14) non-networked departmental convenience copiers and one (1) color non-networked copier at a rate of $0.2833 per copy. The proposal from Toshiba Canada includes the placement of new copiers, service, parts and toner. In the event there is a need to reduce or add the number of copiers due to need, this can be reviewed by the vendor and adjustment can be made to the lease agreement. This may or may not affect the proposed price per copy. It is the recommendation of Supply & Services to enter into a new 60-month lease agreement with Toshiba Canada. Report CS 54-05 Convenience Copiers Date: June 21,2005 Financial Implications: It is anticipated that with the new lease agreement with Toshiba Canada, the annual overall operating cost for the convenience copiers will increase by approximately $2,400.00 per year. The inclusion of a color photocopier to be installed in the Print/Mailroom will incur an annual cost estimated to be approximately $2,800.00 per year based on a projection of 10,000 color copies per year. Background: The City of Pickering currently requires fourteen (14) departmental convenience copiers of various capacities to fulfil the corporate photocopy requirements. Due to the expiry of the current lease agreement with Konica/Minolta, Supply & Services have solicited the marketplace by issuing a Request for Proposal. Vendors were requested to submit two pricing options: Option I To replace the existing photocopiers with new digital photocopiers with equivalent features and capability of providing photocopy services of the Konica/Minolta models currently in use. Option 2 To replace the existing photocopiers with new digital photocopiers with features of: network printing scanning scan-to-email receive and send fax function and capable of providing photocopy services as the Konica models currently in use, Color photocopier An analysis was undertaken to review the viability of providing a color photocopier. The City's annual expenditure in 2004 to produce approximately 10,000 color photocopies was approximately $11,000.00. Based on the proposed price of $0.2833 per copy, a lease with Toshiba Canada for a color photocopier could realize a 70% annual savings on color photocopies. Report CS 54-05 Convenience Copiers Date: June 21,2005 It is the recommendation of the Manager, Information Technology to enter into an agreement for convenience copiers under the terms of Option 1. Please note the information provided in the proposals may be subject to the Municipal Freedom of Information and Protection of Privacy Act and may be subject to release pursuant to the Act. A proponent has identified their proposal as confidential therefore this summary is being submitted as confidential information to Council. Council Resolution #237/99 provides the Director, Corporate Services and Treasurer the authority to make changes in respect of replacing photocopiers. Also, under Definition 01.04 of the Lease Financing Policy, this lease is not deemed to be a Material Lease, in that there is no material financial impact for the municipality. However, since a new lease term of 60 months would be entered into, this report is submitted for Council's consideration. Attachments: 1. Confidential Memorandum dated June 17, 2005 Prepared By: Vera A. Felger~aCher / Manager, Supply & Services B. ~ / P' rc~har~ii~ng Aj~alyst Approved / Endorsed By: Gillis Paterson Director, Corporate Services & Treasurer Copy: Chief Administrative Officer Recommended for the consideration of Pickering City xCouj:~ The/m~.s j. e¥i,i,i~n, cJ:~e'J Adminis~.ve Officer'