Agenda Date: 07/16/2019
Subject:
Title
Ordinance 20-2019: Second introduction of an ordinance approving an Equipment Lease Agreement with Wells Fargo through Lewan Technology for print technology, software, and services
Body
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Prepared by: |
Tiffany Hooten, Finance Director and Ashley Bolton, Information Technology Director |
PURPOSE:
Does city council support an Equipment Lease Agreement with Wells Fargo through Lewan Technology, leveraging the Sourcing Alliance cooperative agreement for print technology, software and services?
PRESENTATIONS:
Staff Presenter(s): Tiffany Hooten, Finance Director and Ashley Bolton, IT Director
Additional Presenter(s): N/A
SUMMARY:
Copiers and desktop printers are located throughout city buildings for use by employees. In February 2019, Lewan Technology did an extensive assessment of the copiers, printers, fax machines, scanners and wide format systems spread across all city buildings. Part of the assessment was end-user interviews to understand the challenges and areas of opportunity for optimization and standardization of the technology platform for the City of Littleton. The end goal of this assessment was to provide a three-year roadmap for:
● Device consolidation, optimization, standardization, and efficiencies
● Centralize management of technology across entire city - leverage buying power/economies of scale
● Single source vendor responsible for all print (uptime and supplies) within the city
● Reduce AP/departmental burden with customizable invoice(s) for all service and consumable supplies
● Improved visibility into print trends and costs
● Outsource desktop printer support and toner fulfillment instantly reducing Help Desk calls
● Create a greener workplace with Lewan's Toner Recycling Program
● Secure print environment with "Follow You" print release
● Reduce security threats by eliminating obsolete print devices that no longer accept firmware updates
● Reduce waste and carbon footprint by applying print policies city-wide
● Leverage existing content management investment (Laserfiche) with city-wide user adoption through user experience at Xerox MFP
An Equipment Lease Agreement with Wells Fargo will provide a mechanism to lease multi-function copiers, printers and software across the organization. Many copier/printer leases will expire over the next 24 months and the city does not have a Managed Print Services (MPS) program to centrally manage the service and supply fulfillment for desktop printers. By supporting the fleet of desktop printers through an MPS agreement, Lewan will offload the service, support and supply acquisition from the city for a fixed, cost per impression program. This will help gain visibility and control of document processes and costs, ultimately saving money, automating steps, boosting productivity, and improving document security and environmental sustainability.
The city code requires equipment leases greater than one year be approved by council. Under this Equipment Lease Agreement, departments will have the option of leasing with Wells Fargo through Lewan Technology for future copier needs for a term not to exceed five years. Staff believes this competition will result in lower prices while allowing city work groups more flexibility in choosing copiers that meet their specific needs.
Among other documents attached to this council communication is the Sourcing Alliance Cooperative Agreement (from Cleveland, Ohio). The city’s purchasing policy allows for cooperative purchasing, meaning the city is allowed to “piggy-back” on contract prices obtained by other governments through a competitive bidding process. Lewan Technology has agreed to honor the prices in this agreement.
PRIOR ACTIONS OR DISCUSSIONS:
The ordinance passed on first reading at the regular meeting of the city council on July 2, 2019.
ANALYSIS:
Staff Analysis
The City Manager’s Office, IT and Finance Departments worked cooperatively to develop and support this agreement. It provides an additional option when selecting copier leases, streamlines the lease process saving considerable staff time, and makes better use of city council time by not requiring council approval for every copier lease renewal.
Council Goal, Objective, and/or Guiding Principle
Consolidation and management of print services supports Goal 2 Financial Sustainability by providing efficiencies of resources.
Fiscal Impacts
Through a phased approach, the City of Littleton can centralize its procurement strategy with one single vendor that includes all hardware, software and document output needs, combined with an optimization strategy on a master, pre-negotiated agreement designed to:
▪ Reduce and contain costs by 25% - 45%.
▪ Reduce number of copiers and desktop printers by an estimated 50%.
▪ Create a more environmentally sustainable workplace, reducing energy consumption by an estimated 30% and saving 340 trees over a five-year term.
▪ Streamline and centralize fleet management and administration, resulting in an estimated 42% savings on toner expense alone.
Alternatives
Continuing with multiple agreements, as opposed to moving to a single provider, will perpetuate the overhead required to manage multiple vendors and confusion that can arise over which vendor to use and when. Having an Equipment Lease Agreement will allow:
• coordination of economies of scale for print services and supplies,
• accurate visibility of print expenditures so they can be managed efficiently,
• timely firmware updates to address security concerns, and
• efficiencies in printing documents by establishing print rules.
STAFF RECOMMENDATION:
Staff recommends approval.
PROPOSED MOTION:
Proposed Motion
I move to approve the ordinance on second reading approving an Equipment Lease Agreement with Wells Fargo through Lewan Technology.