Staff Report
PREPARED BY: STEPHEN CONWAY
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 10/16/2018
ITEM NO: 7
DATE: OCTOBER 11, 2018
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: AUTHORIZE THE TOWN MANAGER TO ENTER INTO AN AGREEMENT WITH
MBS BUSINESS SYSTEMS (MBS) TO PROVIDE MULTIFUNCTIONAL PRINTER
LEASE, REPLACEMENT, MANAGEMENT AND MAINTENANCE SERVICES FOR
THE TOWN OF LOS GATOS AND US BANK EQUIPMENT FINANCE FOR THE
LEASE PURCHASE AGREEMENT FOR THE EQUIPMENT
RECOMMENDATION:
Authorize the Town Manager to enter into an agreement with MBS Business Systems (MBS) to
provide multifunctional printer lease, replacement, management and maintenance services for
the Town of Los Gatos and U.S. Bank Equipment Finance for the lease purchase agreement for
the equipment (Attachment 1).
BACKGROUND:
In 2013 the Town entered into a lease and maintenance agreement with MBS for the Town' s
copiers and printers. This was a five-year agreement, expiring this year. Staff issued a Request
for Proposal (RFP) earlier this year for multifunctional printer (MFP) lease, replacement,
management and maintenance services. Staff subsequently provided a walk-through
opportunity for all interested parties and assembled a group of employees to serve on the
selection panel to review the proposals and make a final recommendation to the Town
Manager.
DISCUSSION:
Staff issued the RFP with the following objectives in mind:
PAGE 2 OF 3
SUBJECT: AUTHORIZE THE TOWN MANAGER TO ENTER INTO AN AGREEMENT WITH MBS
BUSINESS SYSTEMS (MBS) TO PROVIDE LEASE AND MAINTENANCE SERVICES
FOR COPIERS WITHIN THE TOWN OF LOS GATOS
OCTOBER 11, 2018
S:\COUNCIL REPORTS\2018\10-16-18 Closed Session\07 Printer Copier Contract\Staff Report.docx 10/11/2018 3:44 PM
DISCUSSION (continued):
• Create and implement an optimization and standardization roadmap for the Town’s
copiers, printers, faxes, scanners (output fleet)
• Reduce the Town’s total cost of ownership regarding output fleet throughout the
Town Departments
• Improve customer service
• Increase the Town’s “Green Footprint”
• Evaluate and recommend document flow improvements
• Minimize downtime and maintenance calls
Seven proposals were received. After a technical evaluation of the proposals, only four
proposals were evaluated by the selection panel. MBS was selected based on the following
factors:
• Print management software which improves staff productivity by eliminating print
servers and printer setup time, and assists with tracking usage
• Reduction in the total cost of ownership for printers, fax, and MFP fleet
• Generally faster, more durable, and more reliable Konica Minolta
Equipment than other proposals
• Ability to maintain and provide toner supplies for the entire fleet of copiers and printers
• Ease of mobile printing options which allow users to print from phones and tablets
• Responsiveness and clear understanding of project scope
• Excellent references from existing municipal government customers
• Consistently high rankings received from the selection panel
Staff met with MBS to finalize the equipment list and discuss terms and conditions. As part of
these terms and conditions, staff is requesting authorization to enter into a five-year agreement
with MBS for multifunctional printer lease, replacement, management and maintenance
services. The agreement will consist of a flat monthly payment of $702.00 which will include a
monthly allowance of 76,000 copies. In addition, the Town will be charged a flat cost per copy
for any additional copies over the monthly allowance. The equipment lease will be issued by
U.S. Bank Equipment Finance and consist of 60 monthly payments of $2,504.82 for a total of
$150,289.20. The fees will be fixed and will not be subject to increase over the course of the
five-year agreement. Staff anticipates that the new cost structure with MBS will result in a net
savings of approximately $10,000 per year, or approximately $50,000 over the course of the
five-year agreement.
PAGE 3 OF 3
SUBJECT: AUTHORIZE THE TOWN MANAGER TO ENTER INTO AN AGREEMENT WITH MBS
BUSINESS SYSTEMS (MBS) TO PROVIDE LEASE AND MAINTENANCE SERVICES
FOR COPIERS WITHIN THE TOWN OF LOS GATOS
OCTOBER 11, 2018
S:\COUNCIL REPORTS\2018\10-16-18 Closed Session\07 Printer Copier Contract\Staff Report.docx 10/11/2018 3:44 PM
CONCLUSION:
Staff believes that MBS has the expertise and experience to provide multifunctional printer
lease, replacement, management, and maintenance services for the Town. In addition, staff
anticipates that the new cost structure will result in annual savings compared to the previous
agreement. Staff therefore recommends that the Town Council authorize the Town Manager
to enter into an agreement with MBS and Union Bank Equipment Finance for these services.
Attachment 1 is draft agreement.
FISCAL IMPACT:
There are sufficient funds available to cover the cost of the new agreement for the remainder
of this fiscal year. During the remaining four years of the contract, there will not be any
additional budgetary impact as a result of entering into this agreement, based on staffs forecast
of a net savings to the Town of approximately $10,000 per year.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Draft MBS Agreement