R2023-181 Resolution Authorizing Approval to Renew Existing Equipment Rental Agreement and Managed Print Services Contract for Five Years with Watts Copy Systems, Inc.

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Information Technology DATE: 9/5/2023 MEMO: 2023-13 TO: Honorable Mayor and City Council Members FROM: James Edwards, IT Director SUBJECT: Resolution Authorizing Approval to Renew existing Equipment Rental Agreement and Managed Print Services Contract for Five Years with Watts Copy Systems, Inc. SUMMARY RECOMMENDATION: City staff recommends City Council approve the attached resolution authorizing the City Manager to renew the existing Watts Copy Systems Equipment Rental Agreement and Managed Print Services Contract for Five additional years. BACKGROUND: hi 2014 the Information Technology Department conducted an internal study of copy and print services for the City to see if partnering with a third party could reduce overall costs. It was determined that the City of Decatur had the potential of saving up to$24,000 annually by partnering with Watts Copy Systems,Inc. and entered into a five-year agreement which expired on September 24,2020. Watts contract performance has been excellent and has realized savings exceeding the$24,000 estimate. City Staff is pleased with Watts ability to provide reliable equipment and service for our copy and printing needs. The original contract was extended only 3 years through City Council action in July 2020 due to the uncertainty created by the national pandemic and not knowing how the contract would perform during that time. Good news is,it performed well and without incident. The City leases equipment from Watts and makes a monthly payment including the cost of equipment rental and the cost of per copy pages printed or copied. This arrangement includes the cost and provision of all consumable supplies like toner cartridges, rollers,and other consumer replaceable parts. Watts also provides an equipment monitoring service over the internet for consumable parts replacement and equipment troubleshooting. This arrangement remains "state of the art"in management of onsite copy and print services. Being presented to you today is Contract Addendum#3 to the City of Decatur Contract#7410 which will increase the monthly lease fees we pay from$2,120 to$2,230 per month due to many of the units being replaced with newer,more efficient units. As most things post pandemic,this equipment has increased in cost. Nearly two thirds of the units are nearly 8 years old and will begin to create an expense burden to keep them operational. This addendum also stipulates the following: 1. The per copy rates will remain the same as our current contract and will not be increased. 2. The printer/copier whole unit replacements will be new,not used or refurbed units. New,current technology units will give us the efficiency benefits of leveraging the latest technology. 3. Contract allows for unit additions,upgrades,or downgrades as department needs may change. If a unit is added or upgraded,the City will pay an increase in rental fees for the addition or upgrade and will be discounted in accordance with the terms of the contract. If the unit is downgraded,the fees will be reduced per our contract. 4. Contract allows for equipment removal from contract if area using the equipment is consolidated into another area or simply closed for any reason. Contract rental fees will be adjusted accordingly. City Information Technology Staff recommend leveraging the success we have had in the past and execute this five-year contract extension from Watts Copy Systems,Inc. PRIOR COUNCIL ACTION: In August of 2015 City Council approved Resolution R2015-93 authorizing City Manager to execute the original agreement. A copy of the Agreement,Memo,and Resolution is provided in Novus as background material. Also,in June of 2020, City Council approved Resolution R2020-96 authorizing City Manager to execute the first contract extension to the original agreement. A copy of the Agreement,Memo,and Resolution is also provided in Novus as background