HCPS FL Logo Business
Action Item
DATE: Tuesday, March 3, 2015
TO: School Board Members
FROM: MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS
Approve the Lease Agreements for Copiers and RightFax from Ricoh USA, Inc. (Business Division)
EXECUTIVE SUMMARY
On April 01, 2010, the Board approved the leasing option of copiers from Ricoh utilizing a five-year lease and an extended, reduced rate offer in year six. GE Capital carried the five-year lease for Ricoh and Ricoh would finance year six at the reduced rate.  Copiers have an asset life of seven years and are equipped with scanning and networking options.  Hillsborough County Public Schools (HCPS) is approaching year six and has been in ongoing negotiations with Ricoh regarding copiers and RightFax.

RightFax is an electronic document delivery system that eliminates the need for dedicated fax machines.  RightFax provides timely and secure delivery of information directly from the user’s desktop.  The Procurement Department has been utilizing RightFax since 2007 to send approximately 47,000 scanned purchase orders per year to suppliers; however, the software and technology is eight years old and has no automated alternative backup.

HCPS has over 700 dedicated phone lines in the district at an annual cost of $126,000.  In addition to the line cost, HCPS incurs expenditures for paper, toner, and parts.  Ricoh’s five-year lease proposal has an annual cost of $94,022.  Savings could be realized soon after dedicated fax lines are eliminated.

Executive summary continued on attachment.
STRATEGIC OBJECTIVES
• Align financial resources to support the districts strategic goals • Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  Yes)
HCPS will realize a savings of $396,000 over a five-year lease period for utilizing the new copier lease.  Funds are available in the districtwide budget. The purchase of RightFax will be at no cost to the district the first year and $94,022 for years two through five.  This $94,022 cost will be offset by the elimination of dedicated fax lines in the amount of $126,000, saving a total of $127,912 over four years.  The total savings over five years is estimated to be $523,912.
EVALUATION
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 6.16
Hillsborough County Public Schools (Florida) * Mtg.#20150303_685 (Board Meeting) * Section A Item# 6.16