25D - AGMT - MANAGED PRINT SRVS - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 15, 2012 TITLE: AGREEMENT WITH C3 OFFICE SOLUTIONS FOR MANAGED PRINT SERVICES CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 15t Reading ? Ordinance on 2?d Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute a managed print services agreement with C3 Office Solutions, based on the terms set forth in the attached draft agreements, in an annual average amount of $240,000 for a three-year term, with an option for an additional three-year renewal, subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION Through separate contracts, the Finance Department manages copier lease agreements, the purchase of toner cartridges and printer supplies, and on-call copier and printer maintenance service. The City currently operates and maintains a fleet of 39 leased multi-functional copiers, 22 city-owned copiers, and over 500 city-owned printers, located throughout the organization. The combined costs for the purchase of toner cartridges, supplies (not including paper stock), on- call service maintenance, and leased copiers are estimated to total over $381,000 per fiscal year. Over the past few years, the Finance Department evaluated operations to gain efficiencies in the performance of routine processes. It was determined that substantial savings could be realized by utilizing an alternative service delivery model in the area of print management; specifically the concept of Managed Print Services was introduced. Staff solicited several print services vendors to determine potential cost savings. Ultimately, C3 Office Solutions a local Santa Ana business was the only vendor that offered to conduct an assessment at no cost to the City. The assessment highlighted obsolete printers, ineffective use of equipment and noted opportunities to reduce costs. As a result of the assessment, the City agreed to a 12-month pilot program in which 16 city-owned printers were monitored and received toner, supplies and service maintenance on a cost-per-click charge. The pilot program resulted in a 28 percent reduction in toner cartridge and maintenance costs, as well as efficiencies in the ordering of toner cartridges and the scheduling of maintenance service calls. These results indicate that utilizing a per-click charge to fund costs associated with copier and printer leases, supplies, maintenance, and print assessment services is a cost effective and efficient method for delivering printer services to the organization. 2501-1