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HomeMy WebLinkAbout5.2 Motion to Accept Proposal for lease - 18 Multi Functional CopiersBoardDocs® Pro Agenda Item Details Meeting Category Subject Access Type Preferred Date Absolute Date Fiscal Impact Dollar Amount Budgeted Budget Source Recommended Action Public Content Page I of 2 5.2 Motion to accept a 42 month proposal for the lease and maintenance of eighteen (18) multi- function copiers in an amount not to exceed $199,480. Action (Consent) Oct 02, 2018 Oct 02, 2018 Yes W Accept the 42 month proposal for the lease and maintenance of eighteen multi -function copiers in the amount of $199,480. Information The Village began the practice of leasing copiers in 2002 in lieu of making an outright purchase of the equipment. The high a, cost of long-term copier maintenance along with advances in technology make it more cost effective to lease thC equipment while taking advantage of new copier functionality sooner. a, Replacement Copiers - Nine copiers are up for replacement within the various departments of the Village. The Financk" Department requested quotes from two authorized dealers of Canon copiers, Gordon Flesch Company and Marcif, Technologies. The Village has settled on Canon as the standardized equipment for leased copiers based on overall value, reliability and serviceability. Gordon Flesch provided the low quote for the nine replacement copiers. After trade-in credit, the 42 month lease and maintenance cost submitted by Gordon Flesch, including maintenance, is $99,170. This was $14,202 lower than the quote from Marco Technologies. Existing Copiers - In addition to the nine replacement copiers, the Finance Department looked to renegotiate an existing lease and maintenance agreement to place nine other leased copiers on the same replacement schedule. Having all leased copiers on the same schedule will allow the Village to negotiate better pricing and streamline the copier replacement process. Gordon Flesch provided pricing to extend the lease of the existing batch of copiers by thirteen months. The 42 month lease cost for the nine existing copiers, including maintenance, is $100,310. Extending the lease and servicing the Canon equipment through Gordon Flesch will provide $12,,042 in savings over the existing lease. The total 42 month lease and maintenance cost for the eighteen multi -function copiers is $199,480. This solution will provide standardized equipment, reliable Canon copiers, quality service and a streamlined copier replacement process. Funds are included in the operating budgets of the departments to continue the leases and pay the maintenance contract fees. Alternatives 1. Accept the 42 month proposal for the lease and maintenance of eighteen multi -function copiers in the amount of $199,480. 2. Action at discretion of Village Board. https://www.boarddocs.com/il/vomp/Board.nsf/Public 10/2/2018 BoardDocs® Pro Page 2 of 2 Staff Recommendation Staff recommends the Village Board accept the 42 month proposal for the lease and maintenance of eighteen multi- function copiers in the amount of $199,480. Proposal VB 201.8 Memo (002df (4.01. KB) GI: Village of Mt Rrospect.pdf (317 KBxxxxxx ) -it Prospect 8. 15.18 (002).pdf ('724 KB) Marco - Village of Mou�r Administrative Content Executive Content All items under Consent Agenda are considered routine by the Village Board and will be enacted by one motion. There will be no separate discussion of those items unless a Board member or member from the audience so requests, in which the item will be removed from the Consent Agenda and considered in its sequence on the agenda. https://www.boarddocs.com/il/vomp/Board.nsf/Public 10/2/2018 Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: DAVID O. ERB, DIRECTOR OF FINANCE FROM: DEPUTY DIRECTOR OF FINANCE DATE: SEPTEMBER 13, 2018 SUBJECT: COPIER LEASE AND MAINTENANCE AGREEMENT I a 1091 gel.&I I The Finance Department is requesting a waiver of the bid process to lease and maintain 18 copiers. Nine copiers are scheduled for replacement within several Village Departments and nine leased copiers were evaluated to extend the current lease and maintenance agreements for cost savings. 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), Nexus Office Systems, Inc., and Gordon Flesch. 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 Village copiers are leased. In 2017, the Finance Department negotiated lease and maintenance agreements with Gordon Flesch Company, Inc. to provide Canon copiers within the Village. The equipment and service provided by Gordon Flesch Company, Inc. is outstanding, and the departments are very pleased with the reliability of the Canon equipment. Nine copiers are up for replacement within Village Administration and the Finance, Human Services, Police, Fire and Public Works 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 whether or not upgrades were needed. The discussion determined that all 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 a lease and maintenance agreement for new copiers. The goal is to have standardized reliable equipment with the functionality needed and a company that provides excellent service. There are two companies in the Chicagoland area that we feel meet the needs of the Village to provide lease and service for Cannon Copiers: Gordon Flesch Company, Inc. and Marco Technologies. Both companies have excellent references and will provide quality equipment and service. Copier Lease and Maintenance Agreement September 13, 2018 Page 2 Since both companies were comparable, each company was given the opportunity to provide a best and final pricing. Replacement Copiers The recommended solution for the nine replacement copiers includes two Canon imageRunner ADVANCE C5535i and seven Cannon imageRunner ADVANCE C5560 which provide copy, print, scan and fax functionalities. Listed below are the departments and models of the machines for each location: Location: Model: Village Administration — Information Technology Canon C5535 Finance Department—Accounting Canon C5560 Finance Department — Customer Service Canon C5560 Human Services Department Canon C5560 Police Department — Records Canon C5560 Fire Department —Station 12 Canon C5535 Fire Department —Station 14 Canon C5560 Public Works Department —Command Center Canon C5560 Public Works Department—Administration (File Room) Canon C5560 Below is a breakdown of the lease information and the maintenance information. COPIER LEASE AGREEMENT Annual Lease SERVICE AGREEMENT 400,000 black and white images 160,000 color images Total Annual Cost -Lease & Maintenance Total cost over 42 months Less: Trade-in credit Net cost over 42 months Gordon Flesch Marco Technologies Savings $ 20,760 $ 24,072 $ 3,312 1,880 1,600 ( 280) 6,080 6,720 640 $ 28,720 $ 32,392 $ 3,672 $ 100,520 $ 113,372 $ 12,852 (1,350) - 1,350 $ $ $ 99,170 113,372 14,202 The low quote was submitted by Gordon Flesch Company with a 42 month total lease and maintenance cost of $99,170. Copier Lease and Maintenance Agreement September 13, 2018 Page 3 Extended Lease Copiers The current lease agreement with Gordon Flesch Company for nine existing copiers ends February 2021. In an effort to obtain better pricing on the leased copiers, streamline the copier replacement process and procure all Village machines on the same replacement schedule, we are requesting to terminate the current agreement with Gordon Flesch Company and enter into a new 42 month lease and service agreement for the existing nine machines. The Finance Department was able to negotiate better pricing than what was quoted in the original contract. Listed below are the departments and models of the machines for each location: Location: Model: Community Connection Center Canon C5535 Community Development - Planning Canon C5560 Community Development — Building Canon C5560 Fire Station 13 Canon C5560 Village Administration - Human Resources Canon C5560 Police Administration Canon C5535 Police Crime Prevention/Public Services & Patrol Canon C5560 Police Investigations Canon C5560 Village Administration - Village Clerk Canon C5560 Below is a breakdown of the lease information, maintenance information and savings. Extended Existing Gordon Flesch Gordon Flesch Savings COPIER LEASE AGREEMENT Annual Lease $ 18,357 $ 23,340 $ 4,983 SERVICE AGREEMENT 400,000 black and white images 2,703 2,703 160,000 color images 7,600 7,600 Total Annual Cost -Lease & Maintenance $ 28,660 $ 33,643 $ 4,983 Net cost over 42 months $ 100,310 $ 117,751 Net savings over existing lease - 29 months $ 12,042 The service maintenance agreement covers all scheduled preventive maintenance work and includes all parts, supplies, service, labor and guaranteed service response time. Toner is included in the cost of maintenance. Please find the spec sheets and pricing information attached. Copier Lease and Maintenance Agreement September 13, 2018 Page 4 RECOMMENDATION We recommend leasing nine new Canon copiers from Gordon Flesch Company, Inc. The 42 month lease cost for the nine (9) replacement copiers, including maintenance, is $99,170. There are a total of 400,000 black/ white copies and 160,000 color copies included in the maintenance agreement for all machines. Any black/white copies over the 400,000 are paid at a rate of $0.0047 and any color copies over 160,000 are paid at a rate of $0.0380. We also recommend terminating the existing lease with Gordon Flesch which had 29 months remaining and entering into a new 42 month lease and agreement to provide maintenance in support for the machines presently leased with Gordon Flesch Company, Inc. The 42 month lease cost for the nine (9) existing copiers, including maintenance, is $100,310. Extending the lease and servicing the Canon equipment through Gordon Flesch Company, Inc. will provide $12,042 in savings over the 29 months remaining on the existing lease. There are a total of 575,000 black/white copies and 200,000 color copies for the nine machines. Any black/white copies over the 575,000 are paid at a rate of $0.0047 and any color copies over 200,000 are paid at a rate of $0.0380. The total 42 month lease and maintenance cost for the eighteen (18) multi -function copiers is $199,480. This solution will provide standardized equipment, reliable Canon copiers, quality service, and a streamlined copier replacement process to procure all Village machines on the same replacement throughout all departments. Funds are included in the operating budgets of the departments to continue the leases and pay the maintenance contract fees. Lynn M. Jarog Deputy Director of Finance GFC Recommended l ti n (7) Canon Color imageRUNNER Advance C556Oi II Machine Features: • 60 Images Per Minute - Black & White * 60 Irma c: w s po� 11r'i'irgd, k' G fln. . • Energy Star Certified • Quick Startup Mode: 4 seconds • First Out Time: As fast as 2.9 Seconds • (4) 550 Sheet Standard Paper Cassettes • 100 Sheet Stack Bypass • 10.1" TFT LCD WSVGA Color Touch Screen • Up to 12" x 18" Size Paper and 14 Ib. Bond to 110 Ib. Cover 300gsm • 150 Sheet Single Pass Automatic Duplexing Document Feeder • Multi -Sheet Feed Detection • Network Printing - UFR II, PCL, Adobe PS3 • Secure Print Via Mailbox and Print Driver • 100 User Inboxes • Mobile Device Printing • Direct Print via USB Drive • Standard Wireless LAN • Advanced Color Network Scanning Features: • Dual Head Single Pass Scanning • Network Color Scanning to File Folder, E-mail, or FTP • Scan Directly to Word or PowerPoint • 4 GB Standard RAM + 250 GB HDD • 1,200 x 1,200 dpi Resolution • Enhanced Security Features: Hard Drive Disk Erase, HDD Encryption, Initialize & Lock, Mailbox Password Protection • Staple Finisher Y1 • Supports Staple Free Stapling • Staple on Demand • Super G3 Fax Board • Outbound Network Faxing • Inbound Network Fax Routing • 2/3 Hole Punch Al f/ �W GFC Recommended Solution (2) Canon Color imageRUNNER Advance C5535i II Machine Features: • 35 Images Per Minute - Black & White * 31) lrm1 c v s po� l\r''lIY1tl, k' G:rin • Energy Star Certified • Quick Startup Mode: 4 seconds • First Out Time: As fast as 4.9 Seconds • (4) 550 Sheet Standard Paper Cassettes • 100 Sheet Stack Bypass • 10.1" TFT LCD WSVGA Color Touch Screen • Up to 12" x 18" Size Paper and 14 Ib. Bond to 110 Ib. Cover 300gsm • 150 Sheet Single Pass Automatic Duplexing Document Feeder • Multi -Sheet Feed Detection • Network Printing - UFR II, PCL, Adobe PS3 • Secure Print Via Mailbox and Print Driver • 100 User Inboxes • Mobile Device Printing • Direct Print via USB Drive • Standard Wireless LAN • Advanced Color Network Scanning Features: • Dual Head Single Pass Scanning • Network Color Scanning to File Folder, E-mail, or FTP • Scan Directly to Word or PowerPoint • 4 GB Standard RAM + 250 GB HDD • 1,200 x 1,200 dpi Resolution • Enhanced Security Features: Hard Drive Disk Erase, HDD Encryption, Initialize & Lock, Mailbox Password Protection • Internal Staple Finisher • Super G3 Fax Board • Outbound Network Faxing • Inbound Network Fax Routing m1downe • New Equipment CM2 JM -o - ins hm JL,e e 1,576.00 (7) C5560i II - Monthly Lease Investment ($4,728 / Q' 1 ) Location: Police -Records, Public Works -Command Center, Finance -Accounting, Finance - Customer Service, Fire Station 14, Human Services, Public Works - Admin (File Room) (2) C5535i II - Monthly Lease Investment Location: Fire Station 12, Information Technology Division Optional Accessories Booklet Finisher 2/3 Hole Punch (std on C5560i pricing, option on C5535i) High Capacity Cassette Feeding Unit (Std on Police Records) High Capacity Side Paper Deck Existing GFC tease "' Extend current GFC Ilease back out to a 42 monthterm Canon "III"trade-Illin 9 units in total 42 II omint:lhm IILease 42.00 8.00 14.00 35.00 4�2-IlMc)-intIlt--IIL,ea-se-IIExteins-ic)in. 1,529.7 (14,589.311 / Q'TIR) $150.00 trade-iin pear device $1,350.00 total trade-iin value 111"Ihis value cairn be t:akein off of the lease payment so the lease payment (irnrtMy) would decirease by $32.14 for 42 payments. imageCARE Maintenance Agreement • All images to be billed at $0.0047 per image (Black & White) and $0.038 per image (Color). Staples included on(III c� nil �rrrcr�l (it no��rLrLlllrsrwl c�rc��-c1e, Pricing includes toner, parts, labor, travel, technical updates. Also included in onsite preventative maintenance and equipment modernization through GFC's Quality Assurance Program. Network Consultation, Installation and Support Network connected installations include the services of a Digital Support Specialist to manage system integration, training & unlimited access to our Technology and Logistics Center (TLC). Delivery, equipment installation, start-up supplies and training included 9/27/2018 Information herein is proprietary and confidential and shall not be used or disclosed without prior written consent of the Gordon Flesch Co. MANAGED SERVICES CLOUD SERVICES BUSINESS IT SERVICES CARRIER SIERVECFS COPIERS & PRINTERS, mcir-coo marconet.com The Village of Mount Prospect is currently utilizing a Canon print fleet. Marco recommends updated Canon devices for quality replacement and high -functionality in your print environment. RECOMMENDED PRINT SOLUTION 2 Canon Color ImageRUNNER Advance C5535i II Specifications ■ 35 Monochrome Pages Per Minute ■ 35 Color Pages Per Minute ■ 100 Sheet Bypass Tray ■ (2) 500 Sheet Paper Tray ■ 100 Sheet Reversing Single Pass Document Feeder ■ Automatic Duplexing ■ Network Printing ■ Network Scanning ■ Stapling Finisher ■ Fax Board ■ Scan to E-Mail/Network Folder MANAGED LEASE ■ 42 Month Lease........................................................................................................ $145.00/Month o Pricing based on basic configuration listed above ■ Optional Booklet Finisher: $54.00 Month/per unit ■ Optional High -Capacity Paper Deck: $30.00 Month/per unit ■ Optional High -Capacity Paper Drawer: $22.00 Month/per unit DELIVERY, INSTALLATION, INITIAL SUPPLIES AND INITIAL TRAINING Delivery, Installation, Initial Supplies & Initial Training............................................................................... Included © 2018 MARCO. ALL RIGHTS RESERVED. mor -co- MARCONET.COM 12 7 Canon Color ImageRUNNER Advance C5560i II Specifications ■ 60 Monochrome Pages Per Minute ■ 60 Color Pages Per Minute ■ 100 Sheet Bypass Tray ■ (2) 500 Sheet Paper Tray ■ 100 Sheet Reversing Single Pass Document Feeder ■ Automatic Duplexing ■ Network Printing ■ Network Scanning ■ Stapling Finisher ■ Fax Board ■ Scan to E-Mail/Network Folder 01 MANAGED LEASE ■ 42 Month Lease........................................................................................................ $219.00/Month o Pricing based on basic configuration above ■ Optional Booklet Finisher: $54.00 Month/per unit ■ Optional High -Capacity Paper Deck: $30.00 Month/per unit ■ Optional High -Capacity Paper Drawer: $22.00 Month/per unit DELIVERY, INSTALLATION, INITIAL SUPPLIES AND INITIAL TRAINING Delivery, Installation, Initial Supplies & Initial Training............................................................................... Included LEASE PROGRAM ■ 42 Month Lease..................................................................................................... $1,816.00/Month ■ 42 Month Lease.......................................................................................................$21,792.00/Year ■ 42 Month Lease...................................................................................................... $76,272.00/Total DELIVERY, INSTALLATION, INITIAL SUPPLIES AND INITIAL TRAINING Delivery, Installation, Initial Supplies & Initial Training..................................................................................Included © 2018 MARCO. ALL RIGHTS RESERVED. mor -co- MARCONET.COM 13 SERVICE, SUPPLIES AND MAINTENANCE SERVICE, SUPPLIES AND MAINTENACE .............................. ■ Monochrome Prints included per Year: 400,000 ■ Monochrome Print Overages: $0.004 /Print ■ Color Prints included per Year: 160,000 ■ Color Print Overages: $0.039/Print ■ INCLUDES STAPLES .................................................... $7,840.00/Year TOTAL SERVICE, SUPPLIES AND MAINTENACE..................................................................................$27,440.00 LEASE AND MAINTENANCE TOTAL.................................................................................................$103,712.00 Following the initial date of network installation and training, network support is billed at $135.00 per hour. ■ Phone support is billed in % hour increments. ■ On-site support is billed at one-hour minimum plus applicable mileage charges. Time beyond the first hour is billed in % hour increments. Customers may also choose to purchase an Advanced Copier/Printer Support Agreement and future on-site/ phone service. Accepted by: Tne above pricing does not losl'ed"e applicable soles tax. Prices es quoted ore subject to chonge and should be vee~ljleT lseJore plocing your orTei~. Date: By signing this proposal, you are authorizing Marco Technologies LLC to order, install and invoice the above listed equipment. © 2018 MARCO. ALL RIGHTS RESERVED. mor -co- MARCONET.COM 14