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Home My WebLink About03/16/2015 Copier Lease & Maintenance AgreementVillage of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: DAVID STRAHL, ACTING VILLAGE MANAGER FROM: FINANCE DIRECTOR DATE MARCH 11, 2015 SUBJECT COPIER LEASE AND MAINTENANCE AGREEMENT CCI L" Attached for your review is a recommendation prepared by Lynn Jarog and Claire Wheatley to lease two (2) copiers as replacements for copiers in the Public Works and Fire Departments, both at the end of their existing lease. The practice of leasing copiers rather than replacing through an outright purchase has been in place since 2002. Since that time, staff has changed the brand of copier and service provider, both shown to have improved the quality of product and our customer satisfaction. Details on the process used to acquire the new copiers along with considerations for the recommendation are included in attached memo. I concur with the recommendation contained within and would like to bring to the Village Board for approval. Please contact me with any questions regarding the copier lease recommendation. David O. Erb Finance Director H:\ACCT\Copiers\2015 Board Proposal\Cover Memo - Proposal VB 2015 Memo.doc lk Mount Prospc Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: DAVID ERB, FINANCE DIRECTOR FROM: DEPUTY FINANCE DIRECTOR DATE: MARCH 11, 2015 SUBJECT: COPIER LEASE AND MAINTENANCE AGREEMENT PRnpnc.Al The Finance Department is requesting a waiver of the bid process to lease and maintain two copiers for use in the Public Works and Fire departments. BACKGROUND The Village began the practice of leasing copiers in 2002. Overall, staff has been very pleased with the leasing arrangement. Through the years, the Village has negotiated leases for copiers from companies such as Imagetech, Chicago Office Technology (COTG), and Nexus Office Systems, Inc. The Finance Department was asked to research new copiers that provide the functionalities needed, to find a reputable service provider for the equipment and to negotiate leases for new copiers. Currently all of the Department copiers are leased. In 2010, 2013 and 2014, the Finance Department negotiated lease and maintenance agreements with Nexus Office Systems, Inc. to provide Canon equipment for all copiers within the Village. The equipment and service provided by Nexus Office Systems, Inc. has been outstanding, and the departments have been very pleased with the reliability of the Canon equipment. Two copiers are up for replacement within the Public Works and Fire departments. The Finance department began discussing the replacement of the copiers with personnel from each department earlier this year. The points of discussion included reliability, speed, functionalities, types of print and copy jobs, print volume, space constraints, and if upgrades were needed. The discussion determined that both departments need copy, print, fax, and scan functionalities and the standardization of the equipment and service provider are a high priority. The Finance Department began to negotiate another lease and maintenance agreement for new copiers. Nexus Office Systems, Inc. is our current vendor for all Canon copier equipment throughout the Village. The goal is to have standardized reliable equipment with the functionality needed and a company that provides excellent service. Nexus has proven to provide good quality equipment and service to the department and division in which the copiers are located. Copier Lease and Maintenance Agreement March 11, 2015 Page 2 The company's mission is to provide the highest quality equipment combined with superior service. Their corporate office is located in Rockford, and the technicians are dispatched from an Elgin office. Nexus provided a proposal with good pricing. The Nexus solution includes one Canon iR C5255 and one iR C5235 which provide copy, print, scan and fax functionalities. Listed below are the departments and models of the machines for each location: Location: Model: Public Works Department Canon iR C5255 Fire Department - Station #12 Canon iR C5235 Below is a breakdown of the lease information and the maintenance information from Nexus. 42 Months Lease Agreement $ 23,472 (1) Canon Image Runner C5255 Color Copiers (1) Canon Image Runner C5235 Color Copier Maintenance Agreement $ 2,276 11,600 Color Copies and prints B/W overages $ 0.0049 Color overages $ 0.0490 As indicated above, pricing was obtained for forty two month lease agreements. Leasing the machines for forty two months will align the term with other Village machines. Aligning the terms of the leases will help improve efficiency for negotiating leases for village copier equipment. Pricing was also obtained for a forty two month agreement to provide maintenance in support of the leased copiers. The equipment will be added to an existing maintenance agreement. The maintenance agreement covers all scheduled preventive maintenance work and includes all part, supplies, service, labor and guaranteed service response time. Toner is included in the cost of maintenance. Please find the spec sheets and pricing information from Nexus Office Systems attached. RECOMMENDATION We recommend leasing the Canon products from Nexus Office Equipment Inc. for the two copiers in need of replacement. The cost of the copiers is a forty two month lease not to exceed $23,472. Additionally, we recommend Nexus Office Equipment Inc. be awarded a forty two month agreement to provide maintenance in support of the leased copiers. The equipment will be added to an existing maintenance agreement. The cost of the maintenance agreement is $2,276. There are a total of 500,000 black & white copies and 51,600 color copies included in the maintenance agreement for all machines. Any black & white copies over the 500,000 are paid at a rate of $0.0049 and any color copies over 51,600 are paid at a rate of $0.0490. Copier Lease and Maintenance Agreement March 11, 2015 Page 3 This provides standardized equipment, reliable Canon copiers and outstanding service throughout the Village departments. Funds are included in the operating budgets of the departments to continue the leases and pay the maintenance contract fees. Lynn Jarog Deputy Finance Director Attachments (3) H:\ACCT\Copiers\2015 Board Proposal\Proposal VB 2015 Memo.doc Confidential Data: Nexus Offices Systems Village of Mount Prospect March 11, 2014 Nexus Office Systems, Inc. Maintenance Aureement ➢ Annual Maintenance Payment: *Add an additional 11,600 single color images •An additional annual fee of $569.00 will be added to Contract 1588-01 • Color overages to be billed at $0.049 per single color image applied to contract #1588-01 • Terminate Contract #1589-01 effective 4-13-2015 *Add 31416 & replacements for 31906 & 31862 to contract 1588-01 Pricing predicated on the acceptance of Nexus maintenance agreement. Allprices subject to applicable sales tax. Confidential Data: Nexus Offices Systems Village of Mount Prospect Nexus Office Systems, Inc. March 11, 2014 Canon Color imageRUNNER C5255 Digital Document Solution with Business Color ➢ Features: • Copy/Print/Scan/Fax Functionality • 55 ppm B&W and 50 ppm Color • Automatic Document Feeder o 150 Sheets • Automatic Duplex • Standard Paper Supply of 2,300 Sheets 0 4 x 550 Cassettes 0 1 x 100 Bypass Tray • 100 Mailboxes • Staple Finisher • Booklet Maker • 2/3 Hole Punch ➢ Print Functionality: • Network Printing o UFR II .AR .a ➢ Scan Funtionality: • SEND (Push) Scanning with Color Universal Send o Scan to File, Desktop, Email ➢ Fax Functionality: • Super G3 Faxboard • LAN (PC) Faxing • Inbound Fax Routing ➢ Pricing: • 42 Month CO Term Lease (Installed by March 31) $319.85 Pricing predicated on the acceptance of Nexus maintenance agreement. All prices subject to applicable sales tax. w---; Confidential Data: Nexus Offices Systems Village of Mount Prospect Nexus Office Systems, Inc. March 11, 2014 Canon Color imageRUNNER C5235 Digital Document Solution with Business Color ➢ Features: • Copy/Print/Scan/Fax Functionality • 35 ppm B&W and 30 ppm Color Mob" • Automatic Document Feeder o 100 Sheets• • Automatic Duplex • ., �, • Standard Paper Supply of 1,200 Sheets o 2 x 550 Cassettes o 1 x 100 Bypass Tray • Cabinet • 100 Mailboxes • Internal Staple Finisher ➢ Print Functionality: • Network Printing • • o UFR II ➢ Scan Funtionality: • SEND (Push) Scanning with Color Universal Send o Scan to File, Desktop, Email ➢ Fax Functionality: • Super G3 Faxboard • LAN (PC) Faxing • Inbound Fax Routing ➢ Pricing: • 42 Month CO Term Lease (Installed by March 31) $239.00 pricing predicated on the acceptance of Nexus maintenance agreement. All prices subject to applicable sales tax.