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Contract Award for C3 Office Solutions for Managed Print Services and Leases October 20, 2015 Page 4 Staff in conjunction with C3 will re- convene with City Departments to identify the most efficient location to implement the new equipment. A thorough analysis will be completed by C3, prior to the City entering into a lease for the purchase of an additional copier(s), which will identify the potential cost - saving opportunities in obtaining the additional equipment along with detailing the item(s) (copier and /or printer) for which it will be replacing. Leases were entered into by the City during various dates since November 2012 and thus maintain various lease end -dates through June 2018. At the end of the lease term the City will be the owner of leased equipment after payment of a nominal amount ($1- bargain purchase option) to obtain the rights to the said equipment. The consolidation of the City's existing leases will not increase the principal amount owed by extending the term of the leases(s) through October 2018, however the City will gain increased cash flexibility during the upcoming twelve months. For example the proposed amount owed for the period November 2015 through October 2016 totals $233,613. Assuming the City enters into the above - referenced lease obligation in the amount of $470,330 for annual amount of $156,777, positive net cash flow during the period November 2015 through October 2016 in the amount of $76,836 will be realized. Existinq City Lease Obligations Amount Existing Leases payment owed (11/1/15- 10/31/16) $ 233,613 Annual payment after consolidation ($470,330 total amount /3 years) 156,777 Net Positive Cash Flow $ 76,836 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #7 Team Santa Ana, Objective #5 (create a culture of innovation and efficiency within the organization). FISCAL IMPACT Funds in the amount of $687,000 (lease obligations - $470,330 and managed print services - $216,670) are /will be budgeted and available in following account numbers and fiscal year: Account Number: 07110100 -62300 - $216,670 — Payable to C3 Office Solutions, LLC (term ending 10/31/16) 07210102 -62501 - $470,330 — Payable to GE Capital, LLC c/o C3 Office Solutions, LLC Fiscal Year: Fiscal Year FY 2015 -16 FY 2016 -17 FY 2017 -18 FY 2018 -19 Total Managed Print Services Leases 144, 44 8.00 104, 517.78 72,222.00 156,776.67 - 156,776.66 52,258.89 $216,670.00 $470,330.00 251 -4 Total by FY 248,965.78 228,998.67 156,776.66 52,258.89