REPORT TO THE CITY COUNCIL FROM: BRYON HORN, Chief Information Officer Information Services Department BY: KIM JACKSON, Administrative Manager Information Services Department RACHEL ARCHER, Senior Management Analyst Information Services Department SUBJECT ..Title Actions Pertaining to the UBEO City Copier Lease Agreement: 1. Approve the First Amendment to the Requirements Contract with UBEO (formerly Ray Morgan Company) to extend citywide copier lease and maintenance services Contract No. 9592 through July 1, 2029, and increase the annual contract amount to $512,600 to include additional equipment and services, for a total contract amount not to exceed $3,209,900. ..Body RECOMMENDATION Staff recommend that the City Council approve a First Amendment to the Requirements contract with UBEO (formerly Ray Morgan Company) to extend citywide copier lease and maintenance services Contract No. 9592 through July 1, 2029. The amendment increases the annual contract amount from $386,500 to $512,600 to support the addition of equipment and services described in Exhibits A and C of the amendment. EXECUTIVE SUMMARY UBEO provides copier lease and maintenance services for the City of Fresno under a competitively awarded contract. The five-year base term began July 1, 2022, following administrative delays in initiating billing after execution in December 2021. Although the current term runs until December 9, 2026, staff recommends exercising an additional extension now, earlier than typical, because the amendment includes an equipment refresh and expanded services at revised pricing. This approach ensures uninterrupted service, secures favorable pricing for the next four years, allowing City departments to add needed equipment to the contract, and supports operational efficiency. The amendment increases the annual contract amount to $512,600, with funding available through the Systems Acquisition and Maintenance (SAM) Fund. Over the life of the contract, including the initial five-year term and two-year extension, the total cost is estimated at $3,209,900. BACKGROUND The City operates a centralized copier lease and maintenance program serving all departments, including Central Printing. The contract covers multifunctional devices (MFDs), production copiers, maintenance, repairs, technical support, and consumables (excluding paper). UBEO, formerly Ray Morgan Company, was selected in 2021 through RFP No. 9592. While the contract was executed on December 9, 2021, equipment deployment and the lease term began July 1, 2022. The contract includes a five-year base term with the option for up to four additional one-year extensions, at the City's discretion and subject to satisfactory vendor performance. The amendment extends the agreement from July 1, 2027, to July 1, 2029, and increases annual compensation beginning in fiscal year 2026 to $512,600 to incorporate new equipment and services detailed in Exhibits A and C. Executing the extension now allows for replacement of aging devices, enhanced service capabilities, and price stability in a changing market ENVIRONMENTAL FINDINGS The approval of this contract amendment is not a project for the purposes of the California Environmental Quality Act. LOCAL PREFERENCE Local preference was taken into consideration for the initial RFP and contract. UBEO is a local business, as defined by the Fresno Municipal Code FISCAL IMPACT Funds for this agreement will come from existing appropriations in the Information Services Department's Systems Acquisition and Maintenance (SAM) Fund Attachments: Service Contract 9592 Notice to Proceed COF Extension Lease - 48 months Schedule A Non-appropriation Agreement Maintenance Amendment