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Home My WebLink About09/16/2014 Copier Lease & Maintenance AgreementVillage of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: FINANCE DIRECTOR DATE. SEPTEMBER 11, 2014 SUBJECT: COPIER LEASE AND MAINTENANCE AGREEMENT N io n i nt Prospcct Attached is a memo dated September 8, 2014 prepared by Lynn Jarog, Deputy Finance Director, recommending the lease of seven replacement copiers from Nexus Office Equipment. A thorough review of vendors and machine options was done concluding with her recommendation. The cost of the four-year lease of the seven copiers is a not to exceed $103,152. Additionally, staff is recommending Nexus be awarded a Four-year agreement to provide maintenance in support of the leased copiers. The cost of the maintenance agreement for the four-year period is $16,520. The 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. Included under the Village Manager's Report is a motion to approve an agreement with Nexus Office Systems to lease seven copiers for a four-year period in an amount not to exceed $103,152. There is a second motion to approve a four-year maintenance agreement with Nexus Office Equipment for a base amount of $13,140. Any black & white copies over 500,000 annually are paid at a rate of $0.0049. Color copies over 40,000 annually are paid at a rate of $0.042. Details on the background of the copier lease program and selection process are included in the memo. There are sufficient funds included in the budget to support the cost of the copier lease and maintenance agreements. Please review the information and let me know if you have any questions. David O. Erb Finance Director H:\ACCT\Copiers\2014 Board Proposal\Supplemental Copier Memo-2014.docx lk Mount Prospc Village of Mount Prospect Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: DAVID ERB, FINANCE DIRECTOR FROM: DEPUTY FINANCE DIRECTOR DATE: SEPTEMBER 8, 2014 SUBJECT: COPIER LEASE AND MAINTENANCE AGREEMENT PROPOSAL The Finance Department is requesting a waiver of the bid process to lease and maintain seven copiers for use in various village departments. RACICr;Rni min 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. Currently all of the Department copiers are leased. The Village leased Toshiba and Xerox equipment from Imagetech and COTG. Feedback for the Toshiba and Xerox equipment regarding its reliability and the service received from the vendors was less than desirable. 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. In 2010 and 2013, 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. The copier lease agreements are up for seven copiers within the Finance, Public Works, Human Services, Fire, Information Technology and Police 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, upgrades needed and all other comments and concerns. The discussion determined that all departments need copy, print, fax, and scan functionalities and the standardization of the equipment and service provider remain high priority. The Finance Department began to research new copiers and to negotiate another lease and maintenance agreement for new copiers. We contacted five copier companies in the area. Nexus Office Systems, Inc. and Gordon Flesch Company are the two that lease Canon copiers. 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 September 8, 2014 Page 2 Nexus provided a proposal with good pricing. Nexus is a small company founded in 1982 with service in mind. 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. The Nexus solution includes five Canon iR C5255, one iR C5235 and one iR6255 which provide copy, print, scan and fax functionalities. The Gordon Flesch Company is a larger company with the corporate office located in Geneva and six branch offices in the area. The Gordon Flesch solution is also the same as above. Model iR C5255 is a 55/50 page per minute (PPM) color copier, Model iR C5235 is a 35/30 PPM color copier and Model iR 6255 is a 55 PPM black and white copier. Listed below are the departments and models of the machines for each location: Location: Model: Finance Department - Customer Service Canon iR C5255 Finance Department —Accounting Canon iR C5255 Public Works Department—Administration Canon iR C5255 Human Services Department Canon iR C5255 Fire Department - Station #14 Canon iR C5255 Village Administration — Inf. Technology Canon iR C5235 Police Department— Records Canon iR 6255 Below is a breakdown of the quotes that came in from Nexus and Gordon Flesch. 4 -Year Nexus Gordon Flesch Lease Agreement $ 103,152 $ 103,777 (5) Canon Image Runner C5255 Color Copiers (1) Canon Image Runner C5235 Color Copier (1) Canon Image Runner 6255 Copier Maintenance Agreement $ 16,520 $ 16,520 500,000 B/W copies & prints 40,000 Color Copies and prints B/W overages $ 0.0049 $ 0.0049 Color overages $ 0.0420 $ 0.0420 As indicated above, pricing was obtained for four-year lease agreements. Please find the spec sheets and pricing information from Nexus Office Systems and Gordon Flesch. Copier Lease and Maintenance Agreement September 8, 2014 Page 3 RECOMMENDATION We recommend leasing the Canon products from Nexus Office Equipment Inc. for the seven copiers in need of replacement. This provides standardized equipment and service throughout the Village departments. Nexus has provided outstanding service during the four year period and the Canon copiers have proven to be reliable. Funds are included in the operating budgets of the six departments to continue the leases and pay the service contract fees. It is recommended that we enter into a 48 month lease agreement and a 4 year annual maintenance contract with Nexus for the seven Canon replacement copiers. The 48 month lease is not to exceed $103,152. The four year maintenance agreement is $16,520. Any black and white copies over the 500,000 annually to be paid at a rate of $0.0049 and any color copies over 40,000 annually to be paid at a rate of $0.042. Lynn Jarog Deputy Finance Director Attachments (4) H:\ACCT\Copiers\2014 Board Proposal\Proposal VB 2014 Memo.doc Village of ,Mount Prospect: Nexus Office Systems, Inc. Nexus Total Solution Summ ➢ 48- Month Municipal Lease with Fiscal Funding Addendum $2,149.00 / month (5) Canon it C 5255 (1) Canon it C 5235 (1) Canon it 6255 ➢ Annual Maintenance Payment $4,130.00 / year • Includes 500,000 B/W copies and prints • B/W overages $.0049 each • Includes 40,000 Color copies and prints • Color overages $.042 each Confidential Data: Nexus Office Systems, Inc. Village of Mount Prospect. Canon ImageRunner ADVANCE Color it C 5235 Nexus Office Systems, Inc. I>igiiall�ocumeni. S'oluiion ➢ Features: • Copy/ Scan / Print Functionality • (35) Prints per Minute, Black and White, and (30) Full Color • Document Feeder -100 Sheets • 2,300 Sheets Standard Paper Supply 0 4 Trays x 550 Sheets Cassettes, 1 x 100 Sheets Bypass o Stapler Finisher o Hole Puncher ➢ Color Scan Functionality: • Scan to File, Desktop, Email ➢ Print Functionality: • Network Printing ➢ Maintenance: • Parts and Labor (for all equipment functions) • Labor, Drum, Preventative Maintenance, Toner *Pricing includes delivery, installation, and training. Electrical Requirement: 120V AC, 60Hz, 15A, NEMA 5-15P Confidential Data: ,Ncwns Office Systems. Village of Mount Prospect Finance/Public Works/Human Services Canon IrnageRunner C5255 Digital Document Solution - Canon Features: • 55 PPM B/W and 50 PPM Color • 150- Sheet Single Pass Duplexing Feeder • Output Sizes up to 12"xl $" • 5,000 Sheet Paper Supply 0 4 x 550 Sheet Paper Cassettes o Paper Deck -- 2,700 Sheets 0 1 x 100 Sheet Bypass • 8.4" WVGA lull Color Tiltable TFT Screen • 1200 x 1200 dpi Resolution • 160GB HDD with Erase Kit • 2 Collating/Sorting Output Trays • Staple Finisher with 2/3 Hole Punch • Super G3 Faxboard Sao �= Network Color Printing and Color Scanning: • Canon UFR II Printer Kit (PC and MAC) • Color Scan to E -Mail, I -Fax, Filer Server/Folder and USB Flash Media o TIFF, JPEG and PDF (OCR, .docx and .pptx) Pricing: 48 Month Muni Lease = $315 / Month each Full Service Maintenance with Supplies: • All OEM Toner and Supplies • All OEM Parts and Labor • Preventative Maintenance • Remote Services: Supplies fulfillment, service notifications and meter reads *Pricing includes freight, installation, delivery, setup, networking and training, **Pricing is based up acceptance on Nexus maintenance contract r��7NiIrNb/E1111 �'� Village of Mount Prospect Records Department Canon ImageRunner 6255 Digital Document Solution > Canon Image Runner Features: • Canon Advance IR 6255 — 55 Pages Per Minute • Document Feeder— 300 Pages • 4,200 Sheet Standard Paper Supply 0 2 x 1500 Front Loading Trays 0 2 x 550 Paper Cassettes 0 1 x 100 Bypass • Memory Standard 1.5GB RAM + 8OGB HDD ➢ SWricfac d SecLirity I hird Drive C rase Kit • SINGLE -PASS Automatic Document Feeder • Super G3 Faxboard > Staple Finisher — (Corner and Double staple up to 50 Sheets) • 2/3 Hole Punch )0, Standard Network Printing & Scanning Functionality: • SCS X115 FULL COLOR & BW n Scan to Email, Folder, URL Pricing: • 48 Month Muni Lease - $295 / Month ➢ Maintetiance: • Parts and Labor (for all equipment functions) • Toner & Drums and Preventative Maintenance • Remote Services "Priche,g bnchda fiery, bull ladon,11wur of netwark ani tratnixg. * * l'rieft 6 i on acceptance o,,fNatw AWntenamv Cone Proposed Investment Information This proposal includes the following equipment and configurations from Canon: (1) Canon Image Runner Advance 6255 a. 3 -Tray, 4,000 Sheet Booklet Finisher with 2/3 hole punch capabilities b. 300 Sheet Single Pass Duplexing Automatic Document Feeder c. 8.4" SVGA Full Color LCD Screen d. 1.5GB RAM, 160GB Hard Drive e. USB 2.0 Port f. Dual 1,500 Sheet Paper Drawers g. Dual 550 Sheet Paper Cassettes h. 100 -Sheet Stack Bypass i. Monthly Lease is $247.81/month/48 () Canon Image Runner Advance C5255 a. 2 -Tray, 3,000 Sheet Booklet Finisher with 2/3 hole punch capabilities b. 100 Sheet Single Pass Duplexing Automatic Document Feeder c. 8.4" SVGA Full Color LCD Screen d. 2GB RAM, 160GB Hard Drive e. USB 2.0 Port f. 4 x 550 Sheet Paper Drawers g. 100 -Sheet Stack Bypass h. Canon Paper Deck Unit i. Monthly Lease is $357.87/month/48 (4) Canon Image Runner Advance C5255 a. 2 -Tray, 3,000 Sheet Booklet Finisher with 2/3 hole punch capabilities b. 100 Sheet Single Pass Duplexing Automatic Document Feeder c. 8.4" SVGA Full Color LCD Screen d. 2GB RAM, 160GB Hard Drive e. USB 2.0 Port f. 4 x 550 Sheet Paper Drawers g. 100 -Sheet Stack Bypass i. Monthly Lease is $326.15/each/month/48 (1) Canon Image Runner Advance C5235 a. 2 -Tray, 3,000 Sheet Booklet Finisher with 2/3 hole punch capabilities b. 100 Sheet Single Pass Duplexing Automatic Document Feeder c. 8.4" SVGA Full Color LCD Screen d. 2GB RAM, 160GB Hard Drive e. USB 2.0 Port f. 4 x 550 Sheet Paper Drawers g. 100 -Sheet Stack Bypass i. Monthly Lease is $251.74/month/48 C 1 '�t J'ff COMMITTED TO HELPING BUSINESS RUN SMOOTHLY CONFIDENTIAL P a GORDON FLESCr C p M P A N Y I N C Service includes all parts, labor, toner, staples~ supplies, technical support, delivery, installation and training. Agreement does not include paper. Annual service contract is for 500,000 black and white images and 40,000 color images. Images charges are $0.0049 for black and white and $0.042 for color. Agreement will be billed annually. 48 -Month Fair Market Value Lease: $2,162.00 per month Annual Service Contract for images: $4,130.00 COMMITTED TO HELPING BUSINESS RUN SMOOTHLY CONFIDENTIAL P a