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SR 05-09-2023 5A City Council Report City Council Meeting: May 9, 2023 Agenda Item: 5.A 1 of 4 To: Mayor and City Council From: Joseph Cevetello, Chief Information Officer, Information Services Department Subject: Award Agreement with Konica Minolta Business Solutions for Managed Print Services Recommended Action Staff recommends that the City Council: 1. Adopt a finding of no possibility of significant effect on the environment pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. 2. Authorize the City Manager to negotiate and execute an agreement with Konica Minolta Business Solutions for Managed Print Services (MPS) for the Information Services Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250 (c) and is for a total amount not to exceed $1,105,000 over a five-year period. Summary In recent years, the City has made a concerted effort to modernize City systems and services and has implemented technologies to allow staff to work throughout the City campus. The City’s printing needs have shifted in response to these changes as staff print at multiple printers not only the one closest to their desk, and the amount and type of printing has transformed. The City’s current fleet of printers from a variety of vendors are both leased and owned and many have exceeded their life expectancy. This approach to City printing is inefficient and complicates support and management of printing technology. A Managed Print Services (MPS) program would allow for the assessment, consolidation, and management of the City’s copier and printer needs, while ensuring 5.A Packet Pg. 81 2 of 4 that the devices are serviced, maintained, and/or replaced by a vendor. This will minimize downtime, improve repair response, and ensure consistent technology and tools for staff at a lower annual cost than what the City pays currently. Staff recommends that Konica Minolta Business Solutions (Konica) be awarded a five-year contract not to exceed $1,105,000 to provide managed print services as an exception to the competitive process, pursuant to State of Colorado Solicitation #RFP-NP-18-001 (NASPO Value Point Master Agreement for Copies and Managed Print Services ). Discussion The City currently has a fleet of approximately 290 printing devices from various vendors of which 150 are Konica devices. Of the total, approximately half are under a maintenance agreement. This means that 50% of our printing devices are not covered for repair costs. Given their age, the City is experiencing increased costs for repair that are not covered under any contract. In addition, the current printer fleet is spread across multiple purchase orders, which requires significant staff time to manage. The City currently spends approximately $240,000 annually on Ricoh and Konica printers excluding toner and paper. The City also has approximately 50 HP printers that are not currently supported. Over the next four years, the City plans to replace all non -Konica printers with Konica devices and centralize printing contracts and payments. This moves all devices under one comprehensive contract and includes maintenance and support for all City printers at a lower annual cost than what the City pays currently. In addition, the City will seek to reduce the number of printing devices based on actual printing requirements, potentially reducing the annual printing costs in future years (starting in Year 2 of this contract). A MPS program would consolidate the City’s printer equipment, by implementing a strategy that best suits the City’s printing, scanning, and copying needs, creating a single enterprise agreement for the procurement, support, and management of all City printers. As part of their scope of services, Konica would evaluate existing printers and replace, maintain, or retire equipment. They will provide a plan to transition existing devices into this new comprehensive agreement. Under this contract, the City would be 5.A Packet Pg. 82 3 of 4 consolidating all owned and leased printers (including HP and Ricoh) into the Konica fleet and replace all non-Konica devices within five years. The proposed MPS project will also modernize the City’s printer management capabilities, support printing from mobile devices and allow for more detailed usage and cost reporting. MPS will also significantly improve service response time. Funding for this contract over a 5-year period includes: Year 1 - $195,000 Year 2- $208,000 Year 3- $221,000 Year 4- $234,000 Year 5- $247,000 Staff seeks approval to enter into an agreement with Konica as an exception to the competitive process. Exception to Competitive Bidding Staff recommends Konica Minolta Business Solutions to provide managed print services as an exception to competitive bidding per Municipal Code 2.24.250(c), as defined below. The State of Colorado conducted a competitive process in 2018 through NASPO Value Point, for copiers and managed print services (which resulted in Master Agreement No. 140597). Contract No. 140597 was awarded on August 2019 to Konica Minolta to provide Multi-function Devices (MFD’s), Single-function Printers, Production Equipment, Large/Wide Format Equipment, Scanners, and MPS and software bundles that enable and enhance the productivity and capability of the Devices. The City of Santa Monica will utilize this contract which offers the most competitive pricing for MPS services and best meets the City’s needs. c. When Competitive procedures were followed by a governmental agency, including a federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency consisting of one or more such agencies, that are equivalent to the procedures set forth in this Chapter, and the goods or services are supplied to the City at the same or better price as the price obtained by that agency. Environmental Review The award agreement is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines. The award agreement is covered by the commonsense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a 5.A Packet Pg. 83 4 of 4 significant effect on the environment.” The agreement will provide the City with managed printing services. Therefore, it can be seen with certainty that the proposed agreement would not result in adverse physical impacts on the environment, and as such, is categorically exempt from CEQA. Financial Impacts and Budget Actions Staff seeks authority to approve funding from the Information Technology Replacement and Services Fund to award an agreement with Konica Minolta Business Solutions for managed print services. Funds for this purchase are available in the FY 2022-23 Capital Budget. Various funds will reimburse the Information Technology Replacement and Services Fund based on actual expenditures. Printing software included in this contract will allow the City to document actual usage for billing by Department/Division. Contract Request FY 2022-23 Budget Request Amount Future Budget Requests Department/CIP Account # Total Contract Amount $195,000 $910,000 C7100030.689000 $1,105,000 Prepared By: Margaret Talamantes, Administrative Services Officer Approved Forwarded to Council Attachments: A. Oaks Konica Minolta 2023 5.A Packet Pg. 84 CITY OF SANTA MONICA OAKS INITIATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. DocuSign Envelope ID: F5640921-D7EB-4EC2-8E1F-FA0F136C567F 5.A.a Packet Pg. 85 Attachment: Oaks Konica Minolta 2023 (5190 : Award Managed Print Services Contract) FOR CITY USE ONLY: Bid/PO/Contract #___________________________Permit # CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ___________________________ Title:___________________________ Signature:_______________________________________ Date:__________________ Email:_____________________________________Phone:______________________ 04/20/2023 Assistant SecretaryMyrthaEugene 201-825-4000cbdg@kmbs.konicaminolta.us None Please refer to attached Konica Minolta's Secretary Certificate Konica Minolta Business Solutions U.S.A.,Inc. DocuSign Envelope ID: F5640921-D7EB-4EC2-8E1F-FA0F136C567F 5.A.a Packet Pg. 86 Attachment: Oaks Konica Minolta 2023 (5190 : Award Managed Print Services Contract) 5.A.a Packet Pg. 87 Attachment: Oaks Konica Minolta 2023 (5190 : Award Managed Print Services Contract) 5.A.a Packet Pg. 88 Attachment: Oaks Konica Minolta 2023 (5190 : Award Managed Print Services Contract)