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HomeMy WebLinkAboutFIN 2022-08-22 Item 1A - Lease Agreement - City Printers and CopiersCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Governance Committee FROM: Joel Bush, Chief Technology Officer BY: Mike Marcum, Technology Operations Supervisor CC: Mayor Ekberg DATE: 08/12/2022 SUBJECT: Copier Refinance ISSUE Refinance of City copiers and buyout of currently leased printers. BACKGROUND Technology and Innovation Services is seeking Council approval to refinance City copiers coming to term (or have come to term) in 2022 and 2023, for an additional three years. The contract is with Electronic Business Machines, whom the City has partnered with for printer services since 2017. ANALYSIS Over the last two years we have seen a sizeable reduction in printing needs as a result of new financial software, digital processing, and hybrid work environment. Technology and Innovation Services has identified a way to reduce the monetary impacts to the City by reducing the amount of active device leases, while renewing leases for the existing equipment that still has life remaining. FINANCIAL IMPACT The contract is to refinance sixteen copiers over a three-year term for a total cost $107,047.08. Refinancing the fleet of copiers will save the City $25,692.48 over the three-year term. •The current lease payments (excluding FD) are $3,687.21/mo. •The new equipment lease payment (excluding FD) would be $2,973.53/mo. RECOMMENDATION TIS is seeking approval for a new 36-month equipment lease with Electronic Business Machines. The Finance & Governance Committee is being asked to consider the equipment lease at the August 22, 2022 meeting and forward to the City Council Special Meeting Consent Agenda on September 12, 2022 for Council approval. ATTACHMENTS Electronic Business Machines Lease Supplement Schedule A_Equipment List Master Lease Reference 1 2 CUSTOMER INFORMATION FULL LEGAL NAME STREET ADDRESS City of Tukwila 6300 Southcenter Blvd CITY STATE ZIP PHONE FAX Tukwila WA 98188 206-433-1800 BILLING NAME (IF DIFFERENT FROM ABOVE) BILLING STREET ADDRESS CITY STATE ZIP DBA EQUIPMENT ADDED MAKE/MODEL/ACCESSORIES SERIAL NO. 1.Please see attached schedule A 2. 3. 4. 5. 6. 7. 8. See the attached Schedule A EQUIPMENT DELETED MAKE/MODEL/ACCESSORIES SERIAL NO. 1. 2. 3. 4. 5. TERM For either option below, the start date will be set to be on the same day of the month as for the previous Lease Agreement and/or Supplement(s), unl ess Customer makes a request for a different start date. Mos. Termination date of this Supplement will coincide with the termination date set forth in the Lease Agreement and/or previous Supplement(s) (as applicable). 36 Mos. Termination date will not be set to coincide with any other Lease Agreement or Supplement. PAYMENT SCHEDULE Monthly Payment* $ 2,973.53 *plus applicable taxes TERMS AND CONDITIONS You have requested this Supplement to the Lease Agreement (or Supplement) as set forth above. You agree that the Payment on the Supplement is in addition to your original Agreement. Except for the specific provisions set forth above, the original terms and conditions set forth in the Lease Agreement and any personal guar anty(s) shall remain in full force and effect and are incorporated herein by reference. ACCEPTANCE OF DELIVERY You certify that all the Equipment listed above has been furnished, that delivery and installation has been fully completed a nd is satisfactory. Upon you signing below, your promises herein will be irrevocable and unconditional in all respects. You understand that we have purchased the Equipment from the Supplier, and you may contac t the Supplier for a full description of any warranty rights under the supply contract, which we hereby assign to you for the term of this Supplement (or until you default). Your approval as indicated below of our purchase of the Equipment from the Supplier is a condition precedent to the effectiveness of this Supplement. Print Name: Signature:X Customer (as referenced above): Date of Delivery: CUSTOMER ACCEPTANCE This is a Supplement to the Agreement identified above between Lessor and Customer, all the terms and conditions of which are incorporated herein. Upon the execution of this Supplement, Custom er hereby agrees to lease from Lessor the Equipment described above. By signing below, you certify that you have reviewed and do agree to all terms and conditions of the Agreement and this Supplement. The Equipment and terms of this Supplement are in addition to the Equipment and terms stated in the Agreement. Print Name: Signature:X Title: Customer (as referenced above): Dated: LESSOR ACCEPTANCE Print Name: Signature: Lessor: Electronic Business Machines Company Dated: 29347 Rev. 07/03/2013 LEASE AGREEMENT NO. 107152 SUPPLEMENT NO. APPLICATION NO. Lease Supplement 3 SCHEDULE A Agreement Number: Lessee/Customer: This Schedule A is a part of the above-referenced Agreement between Lessee/Customer and Lessor/Owner. Equipment Quantity Make Model Serial Number Location Signatures Lessee/Customer:Lessor/Owner:Electronic Business Machines Authorized Signature Date Authorized Signature Date Authorized Signatory Name Title Authorized Signatory Name Title Authorized Signature Date Authorized Signatory Name Title City of Tukwila 1 Kyocera TASKALFA 3552CI VLQ6901666 1 Kyocera TASKALFA 8052CI VA77200194 PR Golf Maintenance PR015800-545001 AS Clerks AS004300-545001 1 Kyocera TASKALFA 4052CI W2M7402020 AS CS&E AS004201-545001 1 Kyocera VLQ7403438TASKALFA 3552CI PW F&FS PW501650-545001 /PW013300-545001 1 Kyocera W2D6Z01342TASKALFA 6052CI PW Admin PW013100-545001 1 Kyocera W2M7401824TASKALFA 4052CI PR TCC Admin PR007100-545001 1 Kyocera W2H7503838TASKALFA 5052CI Municipal Court MC009100-545001 1 Kyocera W2M7702552TASKALFA 4052CI AS HR AS004012-545001 1 Kyocera TASKALFA 4052CI W2M7702724 DCD Back CD008100-545001 1 Kyocera TASKALFA 6052CI W2D7601852 DCD Front CD008100-545001 1 Kyocera TASKALFA 3552CI VLQ7504061 PD MCU PD010210-545001 1 Canon IPF785 BAAS7190 AS CS&E AS004201-545001 1 Kyocera TASKALFA 4052CI W2M7802830 PW Minkler PW013130-545001 1 Kyocera TASKALFA 6052CI W2D8403520 PD Records PD010230-545001 1 Kyocera TASKALFA 8052CI VA78700801 Finance FN005100-545001 1 Kyocera TASKALFA 5052CI W2H8207319 PR TCC Back PR007200-545001 City of Tukwila 4 5 Technical Operations SupervisorMike Marcum 8/31/21 Mike Marcum 6 7 Technical Operations Supervisor Mike Marcum 8 9