HomeMy WebLinkAboutC34180 - Xerox - Lease Copier EquipmentContract No. C34180
CITY OF PALM DESERT
FINANCE DEPARTMENT
STAFF REPORT
REQUEST: AUTHORIZE THE LEASING OF COPIER EQUIPMENT FROM XEROX
CORPORATION
SUBMITTED BY: CLAYTON VON HELF, INFORMATION SYSTEMS MANAGER
DATE: FEBRUARY 12, 2015
CONTENTS: EXHIBIT A - XEROX PROPOSAL
Recommendation
By Minute Motion, that the City Council authorize the leasing of copier equipment
from Xerox Corporation in the amount of $2,607.51 (plus usage averaging
$4,539.59) per month for five years.
Background
The City has been purchasing and leasing copier equipment from Xerox for the last 15 years. Our
current five-year lease ended this month, February 2015, and Xerox has proposed a renewal
based on Government contract terms with significant extra savings. Xerox has maintained a local
office here in Palm Desert for at least the last 15 years, which gives us unbeatable customer
service, quick restocking of supplies, and timely repair work on our copier fleet. Staff did not go
out to bid for this contract as the government contract rate that we are using satisfies the City's
purchasing regulations. Xerox is the only copier company with a local presence in the Coachella
Valley; the closest competitor is in San Bernardino. Staff is well trained on the features and
accustomed to the interface on the Xerox devices. The new copiers maintain a consistent user
interface and improve on popular features like network scanning.
The most recent lease was a government lease with the County of Los Angeles. Staff will again
be "piggy backing" on the County of Los Angeles purchase contract. This allows us to benefit from
a larger entity's bargaining power, and meets our purchasing requirements.
For the proposed lease period, staff will be switching the color copiers from a solid ink technology
to traditional toner -based equipment. The lease cost for the traditional toner -based devices is
lower, and the usage is slightly higher. Solid ink technology copiers require a higher volume of
usage to realize a significant cost savings, and our usage over the last five years has not been
high enough to compensate for the higher monthly lease cost. Since the cost is equivalent
between the two technologies, staff looked at print quality and other features. Since the solid ink
technology has some limitations in its applications — cannot write on printed documents, slightly
lower print quality, and heat sensitive prints, staff is recommending moving to the toner based
devices.
Staff Report
Lease Copier Equipment from Xerox
February 12, 2015
Page 2 of 2
Contract No. C34180
Base Lease Cost
Average Usage
Total Monthly
Current Equipment
$3,784.21
$1,792.58
$5,576.79
Toner Equipment
$2,607.51
$1,932.08
$4,539.59
Savings
$1,176.70
$ 139.50
$1,037.20
Base Lease Cost
Average Usage
Total Monthly
Current Equipment
$3,784.21
$1,792.58
$5,576.79
Solid Ink Equipment
$3,195.83
$1,376.99
$4,572.82
Savings
$588.38
$415.59
$1,003.97
Staff is recommending approval of the new leased equipment which has the same current
capabilities to scan, fax, copy, and print on one machine. The City has a total of 11 copiers; four
are color and seven are black and white copiers, with an additional two (one color, and one black
and white) copiers at Desert Willow.
Fiscal Analysis
Staff recommends the lease of copier equipment for City Hall with Xerox Corporation in the total
amount of $4,539.59 per month for five years ($54,475.07 annual - $272,375.33 over life of the
lease). Desert Willow pays and manages their two copiers. Funds for the first year of the lease in
the amount of $54,475.07 are already budgeted within the General fund.
Submitted
ayto e,n-?�o�rmation Systems Manager
Approval:
a &
Paul S. Gibson, Director of Finance
W. Wohlmuth, City Manager
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