That the City Council approve and authorize the City Manager to execute a five-year lease agreement with Konica Minolta Business Solutions (KMBS) for the lease, installation, and maintenance of new copying/scanning equipment.

The City of La Habra Child Development Division utilizes Konica Minolta units for copying and scanning of business documents in their facilities and the units have proven to be durable, reliable, functional, and easy to operate and maintain.  Furthermore, KMBS has provided excellent support and responsiveness when called on for routine maintenance or repairs.

In order to secure competitive pricing for a new five-year lease agreement, staff recommends the City utilize the Sourcewell cooperative purchasing contract (SCPC) to lease Konica Minolta copying/scanning equipment from KMBS, as allowed by the Municipal Code.  Sourcewell is a self-sustaining government organization with over 40 years of experience assisting government, education, and non-profit agencies operate more efficiently through a variety of competitively bid contract purchasing, technology, and regional program and service solutions.  Sourcewell contracts are competitively solicited and awarded in accordance with state and federal guidelines and requirements.

The current five-year copy/scanning machine lease agreement is due to expire this fiscal year.  In order to continue providing necessary equipment to facilitate Child Development operations, staff solicited KMBS for a new five-year proposal to replace all four existing copy/scanning machines with similar or better new Konica Minolta equipment.  Using the Sourcewell competitively bid pricing as an initial framework, and after additional negotiations, staff was able to secure a new proposal that provides updated units with a slightly higher monthly cost to the existing units, and will accommodate the Division's higher usage with faster service.  The increase per month will be $44.33 total for all four machines and will be offset by a speed increase of 33 to 42 pages per minute and an volume increase of 1,000 sheets of paper per machine.

Upon acceptance of this agreement, KMBS will remove and replace the current equipment and remove and return fleet hard drives to the City.

The proposed annual lease, usage, and maintenance for 4 new Konica Minolta Copy/Scanning units provided by KMBS will be approximately $20,118.36, for a total of approximately $100,592 over the next five years.  The estimated usage cost is a projection based on the previous years of actual usage data. All costs of this lease will be assessed to the Child Development Division and will be covered through grants from the California Department of Education and California Department of Social Services.  There will be no impact to the general fund.