HCPS FL Logo Business
Action Item
DATE: Tuesday, February 11, 2014
TO: School Board Members
FROM: MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS
Approve the Refinance Leases for Copiers from RICOH Americas Corporation, a RICOH USA Company (Business Division)
EXECUTIVE SUMMARY
On April 1, 2010, the Board approved a lease-copier plan that replaced our past practice of purchasing copiers and refreshing every six years.  The six-year lease plan offered by Ricoh was backed by GE Capital with a five-year lease.  Year six was a reduced rate, payable directly to Ricoh.  Although the predicted savings have been realized, we continue to face the dilemma of limited funding and began to seek alternatives.

This agenda seeks approval to refinance the first group of 100 copiers and make individual decisions at each lease renewal.  These copiers have a current expiration date of March 29, 2015.  The remaining GE Capital lease is for 13 months.  GE Capital has worked with our local Ricoh representatives to refinance the existing 13 months and extend to a total of 37 months, essentially adding two years to the lease and extending the original lease plan one year to a total of seven years; the average industry life of a copier is seven years.
STRATEGIC OBJECTIVES
• Align financial resources to support the district’s strategic goals • Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  Yes)
Hillsborough County Public Schools (HCPS) will realize savings of $132,900 over three years.
EVALUATION
At each lease renewal the Superintendent will determine whether to enter into a new lease or refinance the existing lease based on HCPS economic circumstances.
SUBMITTED BY:  Kate Rouse, Senior Procurement Officer, Procurement Department
Jean Bowman   Gretchen Saunders
General Manager, Procurement Department
(813) 272-4374		   Chief Business Officer
(813) 272-4270
    A 6.10
Hillsborough County Public Schools (Florida) * Mtg.#20140211_625 (Board Meeting) * Section A Item# 6.10