Title
AN ORDINANCE APPROVING MODIFICATION NO. 5 TO AGREEMENT NO. 2012-002 WITH TOSHIBA BUSINESS SOLUTIONS TO EXTEND THE TERM OF THE AGREEMENT AN ADDITIONAL TWO (2) YEARS AND TO REDUCE THE TOTAL MONTHLY LEASE RATE PAYABLE BY THE CITY OF LEE’S SUMMIT AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAME BY AND ON BEHALF OF THE CITY. (F&BC 8-29-16)
Body
Issue/Request:
AN ORDINANCE APPROVING MODIFICATION NO. 5 TO AGREEMENT NO. 2012-002 WITH TOSHIBA BUSINESS SOLUTIONS TO EXTEND THE TERM OF THE AGREEMENT AN ADDITIONAL TWO (2) YEARS AND TO REDUCE THE TOTAL MONTHLY LEASE RATE PAYABLE BY THE CITY OF LEE’S SUMMIT AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAME BY AND ON BEHALF OF THE CITY.
Key Issues:
Modification No. 5 to agreement 2012-002 with Toshiba Business Solutions is to modify the current agreement term expiration date from July, 2 2017 to July 2, 2019 at a reduced overall monthly rate. The modified agreement term shall be in effect from October, 2016 through July 2, 2019 (34 months). The modification will also modify Exhibit A-2 (Monthly Lease Cost Breakout) of the agreement from the current Exhibit A-2 Revised 6-16-2016 to Exhibit A-2 Revised 8-12-2016.
The current monthly rate for the City's print devices is $7,359.07/mo. There is an additional $909.97/mo that represents the City's average monthly overages. The overall current total montly rate is $8,269.04. If approved, the modified 34 month lease term will be at the monthly rate of $6,439.48 which equates to a savings of $1,829.56/mo and an overall savings over the 34 month lease term of $62,205.04. The savings represents potential elimination of the average monthly overages costs by increasing the number of designated black & white and color clicks (prints) per machine. There is also an additional estimated savings of $13,000+ for not having to pay to ship equipment back to Toshiba at the end of the modified lease term. This makes a total estimated savings of $75,205.04+ over the modified lease te...
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