Title
Replacement printer leases
History
Over the past few years, most of the multi-function printers were consolidated under a Konica Minolta lease agreement. A number of multi-function printers (MFP) are coming off lease. There are seven (7) Konica leases that are expiring in 2025 that have a buyout cost of $24,479.51. In addition, there would be a 12% increase in operating expenses if these devices were purchased to cover toner and support. The following three options were presented to the Technology Commission to replace the six (6) MFPs that are at the end of the lease.
1. Purchase them with the stated market value cost of $24,479.51 and per click charges of $.041 per page of color and $.0041 per page of black and white.
2. Lease new Konica Minolta MFPs at a monthly lease cost of $21,153.10 for 60 months with a $1 buy out at the end of the lease and per click charges of $.04 per page of color and $.004 per page of black and white.
3. Lease Xerox from Next Day Plus at a monthly lease cost of $1,544.21, with a one-time $135 charge, $1 buy out at the end of the lease, and monthly maintenance cost of $576 for 18000 black and white and 11000 pages of color printer per month and overage charges of $.045 per page of color and $.0045 per page of black and white with a cap increase of 10% on monthly maintenance per year.
The printers were priced two ways; one through a quote not using any cooperative purchasing agreement and one using the Sourcewell cooperative purchasing agreement. The Sourcewell cooperative purchasing agreement saved $161.85 per month or $9,711 over the 60-month life of the contract.
The Technology Commission recommended moving forward with Option 3, leasing new printers from Next Day Plus with a one-time charge of $125, $1 buy out at the end of the lease, and monthly print allotment of $576 for 18000 black and white, and 11000 pages of color printer per month and overage charges of $.045 per page of color, and $.0045 per page of black and white.
Next Day Plus offered different monthly print allotments at various costs. As printing is not consistent month to month it was decided to go with a lower monthly allotment with the remainder of the prints being charged a per click charge to ensure that the number of prints never is below the monthly allotment.
...Financial Impact
Funds designated for these multi-functional leases and maintenance were approved by the Board of Trustees in the FY2025 Budget.
...Financial Impact
Funds designated for these multi-functional leases and maintenance were approved by the Board of Trustees in the FY2025 Budget.
...Recommended Action/Motion
I move to wave the competitive bid process and approve the sixty (60) month lease agreement financed through Great America Financial Services Corporation for seven multi-functional printers for monthly cost of $1,544.20, plus a one-time $125 charge and $1 buyout fee for a total not to exceed amount of $92,778.00 for sixty (60) months;
AND
Move to approve the Next Day Plus monthly maintenance agreement at a base monthly cost of $567.00 plus overage charges as set forth in section IV of the Agreement with an annual increase of 10% for sixty (60) months;
AND
Authorize the Village Manager to execute all related contracts subject to Village Attorney review.