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Home My WebLink About01-75 SPEED MESSAGE TO FROM SUBJECT DATE Vl k,� j/It" _C _4f d O O ZeO A oz" 6, ta� SIGNED— 4 misoniones® WHITE—ORIGINAL CANARY—DUPLICATE 44-900-Duplicate Resolution No. 01-75 RESOLUTION AUTHORIZING EXECUTION OF A LEASE AGREEMENT WITH CANON FINANCIAL SERVICES, INC . FOR COPIERS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, be and is hereby authorized and directed to execute a Lease Agreement on behalf of the City of Elgin with Canon Financial Services, Inc . for the lease of nine copiers, a copy of which is attached hereto and made a art hereof by reference . s/ John Walters John Walters, Mayor Pro Tem Presented: March 28 , 2001 Adopted: March 28 , 2001 Omnibus Vote : Yeas 5 Nays : 0 Attest : s/ Suellyn Losch Suellyn Losch, Deputy City Clerk Agenda Item No. City of Elgin February 8, 2001 TO : Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT : RFP #00-119, Digital Black and White Copiers PURPOSE The purpose of this memorandum is to provide the Mayor and the members of the City Council with information to award a contract for the lease and maintenance of ten digital black and white copiers . BACKGROUND The City currently leases nine Ricoh copiers from IKON. Copiers are located on the second floor of City Hall, in Fiscal Services, Engineering, Code, Police, Hemmens, Fire Station 1, Parks and Recreation and the Water Department . The lease with IKON began in 1996 and shall expire on March 31, 2001 . A selection committee consisting of representatives from all user departments was convened in July 2000 . The committee visited six different copier companies to gather information on current copier technology. The standard copier technology is now digital, rather than analog, meaning that a digital image is made of the document being copied. Copies are made from the digital image resulting in no degradation as multiple copies are made . The digital image can be saved and/or adjusted. The copiers can be hooked up to the City' s computer network, enabling employees to send copy jobs from their PC to the copier. The selection committee drafted a Request for Proposals to replace the nine existing Ricohs and a new copier for Slade Avenue Meter Shop. The RFP was advertised in the Courier News on October 20, 2000 and sent to 20 companies . Proposals were received from nine companies on November 6, from Konica, Nexus Office Systems (Ricoh copiers) , Wagner Office Solutions (Panasonic copiers) , Distinctive Business Products (Konica and Toshiba copiers) , Ambassador (Canon copiers) , Gordon Flesch Company (Canon and Sharp copiers) , Stan' s Office Technologies (Minolta copiers) , Xerox and IKON (Ricoh and Canon copiers) . Digital Copiers February 8 , 2001 Page 2 Selection committee members eac : reviewed and evaluated all proposals and were assigned references to call . Three proposals were selected for demonstrations of their products : Wagner' s Office Solutions, Stan' s Office Technologies and Ambassador . The proposal evaluations in summary: Stan ' s Office Technologies : Stan' s submitted a detailed proposal that addressed all the requirements of the RFP . They submitted many references; five references chosen at random were overwhelmingly positive and stressed Stan' s excellent service . Stan' s was selected for a demonstration of its Minolta machines . Wagner Office Solutions : Wagner submitted a detailed proposal that addressed all the requirements of the RFP . The Panasonic facility that would provide and support the copiers is located in Elgin . Based on the proposal, its positive references and impressive support facility, Wagner was selected for a demonstration. Ambassador : Ambassador submitted a detailed proposal that addressed all the requirements of the RFP. References were positive and the Committee was impressed by the Canon reputation. Based on its proposal, its positive references and its subsidiary relationship with the Canon Company, the manufacturer, Ambassador was chosen for a demonstration . Gordon Flesch Company: Gordon Flesch provided a fairly generic proposal that did not address the RFP in great detail . They received positive references and offered the Canon product line which was attractive to the Selection Committee . However, since the pricing from Ambassador Canon was fairly close to that of Flesch, it was preferred to shortlist a subsidiary of the Canon company rather than an authorized dealer . Konica : Konica proposed an attractive product, however the company refused to accept the RFP' s penalty for late maintenance service . Since service was a main concern and focus of the Committee, this proposal was deemed non-responsive . Nexus Office Systems : Nexus submitted an incomplete proposal that did not address the requirements of the RFP . Distinctive Business Products : Distinctive proposed Konica and Toshiba machines which were attractive to the committee, however it received lukewarm references in regard to service . Since service was a main concern and focus of the Committee, Distinctive was not shortlisted. Digital Copiers February 8 , 2001 Page 3 Xerox : Xerox did not provide a proposal that followed the format of the RFD . The proposal relied heavily on brochures and canned literature that did not address the RFP' s questions . Xerox' s prices were deemed too high to consider. IKON : IKON provided a responsive proposal with competitive pricing and good references . The City' s experience with IKON service however, has been negative, and IKON was not selected as a finalist . The demonstration process : Each of the finalists installed a demonstration machine in the Central Services office in City Hall for a week. The demo machines were available for all staff to use and were connected to the network so staff could try sending copy jobs through their pc' s . Evaluation sheets were provided for employees to rate the machines' performance and user friendliness . The first machine demonstrated was a Minolta DI620 from Stan' s . Written and verbal feedback rated this machine from very good to excellent . Users were impressed by the speed and quiet of the machine . Linking the machine to the computer network was cumbersome and rec_ruired assistance from Minolta technical support, but that may have been due to the fact this was the first digital copier being installed on the network. The second machine demonstrated was a Panasonic FP 605 from Wagner . This product had not been proposed in Wagner' s original proposal but had been released after proposals were due . The committee permitted Wagner' s to demonstrate this machine since it had desired functionality and the pricing was lower than that originally proposed. Wagner' s also provided revised pricing for other machines that were proposed. The alternate pricing would not be considered until contract negotiations, if any. The response to the Panasonic machine was very negative . Comments included that the machine was not user friendly, that the machine was noisy, duplexing cumbersome compared to the Minolta. The connection to the system, however, was very easy and Panasonic was extremely supportive during the process . The third machine demonstrated was a Canon 600 from Ambassador . The network connection was very smooth. Users complimented the machine on its user friendliness and quality of copies . After the demonstrations, the committee met several times to discuss the three finalists and select a vendor . Ambassador was selected by majority vote. Digital Copiers February 8 , 2001 Page 4 During contract negotiations, Ambassador lowered the price of its maintenance from $ . 0072/copy to $ . 007/copy, offered an additional high speed copier (55 copies per minute) and lowered the pricing of the four networked 50 copy per minute machines by a total of $3, 641 . 76 a year . GROUPS/INTERESTED PERSONS CONTACTED None . r FINANCIAL IMPACT There are sufficient funds available in the "photocopy reproduction" 15-06 accounts detailed in the attachment . The estimated annual lease and maintenance price for ten digital copiers is slightly lower than the current lease and maintenance charges for our nine analog Ricoh machines . In 2001, three months of lease payments out of the 15-06 accounts will be made for the IKON lease and maintenance agreement . The first three months of the new lease will have no maintenance charges due to the three month warranty period. It is also expected that outsourced copy jobs formally charged to the 15-06 account will drop dramatically due to the expanded functionality of the new digital copiers . Nonetheless, the 15-06 accounts were not increased from 2000 to 2001, so they are currently funded assuming 1996 analog copier leasing prices . It may be necessary to reallocate costs among departments in 2002 based upon departments' usage history. LEGAL IMPACT None . ALTERNATIVES None . Digital Copiers February 8, 2001 Page 5 RE COMTIENDAT I ON S It is recommended that the City agreement with Ambassador Business Cou"iC' l approve a three and maintenance ten Solutions year of �en digital black and white for the lease estimated cost of $08, 378 . 20 Per year and white copiers at a total Of the lease . $205, 134 . 60 for the life Res ectfully s,,' mit \jo-ice A. Parker City Manager GAC Attachments City Hall Account Est. 2001 Expense 2nd Floor $9, 325 . 86 Legal 010-050_- 7 "13. 15-06 $1, 865 . 1 15-06 2urc"asimg Risk management 010-2202-718 . 15-36 City Clerk 010-02,32-702 . 15-06 $1, 865 . _ Manning 010-150 - , _5 . _5-06 $ , 365 . _ HUm Resources 010-0602-714 .15-06 $C . 0 Human. Resources 010-0601-7/1-4 . 15-06 $1, 865 • Engineering Ci0-331"i-752 . 15-C6 $5, 543. 5., Code 010-16,34-717 . -06 010-6902-719. 32-08 Ist Floor $5, 563 . 14 Finance 010-2005-718 . 15-06 $900. 00 Finance 010-2001-718 . 15-06 $900 . 00 Finance 010-2003-718 . 15-06 $700 . 00 City Manager 010-0301-711. 15-06 $2, 000 . 00 City Manager 010-0302-711 . 15-06 $1, 000 . 00 City Manager 010-0303-711 . 15-06 $63. 14 Hemmens 010-0304-711.15-06 $2, 612 . 07 Police 010-2301-731. 15-06 $5, 426. 82 Slade 401-4004-771 . 15-06 $2, 612 . 07 Water 401-4002-771 . 15-06 $2, 612 . - Parks and Rec $5, 563. 14 550-6001-776. 15-06 $600.00 010-5031-764 . 15-06 $25.00 010-5011-762. 15-06 $900 . 00 010-5012-762 . 15-08 $0 .00 010-500'_-761 . 15-06 $4, 038 . 14 Fire 010-2801-735. 15-06 $10, 112 . 94 Grand Total 2001 $54, 934 .74 FY 2002 Expense by machine Fiscal Services $6, 901 . 68 City Hall 2-'-- Floor $10, 190 . 88 Engineering $6, 882 . 04 Code $6, 901 . 68 He=ens $3, 914 . 76 Slade $3, 914 . 76 Police $6, 731 . 52 Water $3, 914 . 76 Parks and Rec $6, 901 . 68 Fire $12 , 124 . 44 Grand Total 2002 $68 , 378 . 20 CPM Base Price Base Price Base Price Basic Basic O do Basic Networked Networked Networked City of Elgin IL RFP 00-119 er month 12 months 36 months options 12 months 36 months per month 12 months 36 months WAGNER OFFICE SOLUTI Panasonic FP-D250 28 $150.85 $1,810.20 $5,430.60 $196.65 $2,359.80 $7,079.40 $235.83 $2,8E$22.536.00 88 Panasonic FP-D350 35 $163.96 $1,967.52 $5,902.56 $209.76 $2,517.12 $_7,551.36 $248.94 $2,9 .84 Panasonic FP-D450 45 $187.33 $2,247.96 $6,743.88 $248.48 $2,981.76 $8,945.28 $287.66 $3,4 .76 Panasonic FP-D605 60 $212.21 $2,546.52 $7,639.56 $273.36 $3,280.32 _$9,840.96 $355.67 $4,2 .12 Panasonic FP D620 62 $415.86, $4,990.32 $14,970.96 $478.08 $5,736.96 $17,210.88 $626.00 $7,5 .00 AMBASSADOR Canon Image Runner 330 33 $133.50 $1,602.00 $4,806.00 $218.23 $2,618.76 $7,856.28 $394.95 $4,739.40 q Canon Image Runner 500 50 $287.94 $3,455.28 $10,365.84 $384.90 $4,618.80 $13,856.40 $523.13 $6,277.56 Canon Image Runner 550 55 $343.57 $4,122.84 $12,368.52 $663.74 $7,964.88 Canon Image Runner 600 60 $402.20 $4,826.40 $14,479.20 $516.51 $6,198.12 $18,594.36 $1,008.92 $12,107.04 STAN'S OFFICE TECHNO Minolta Di350 35 $148.82 $1,785.84 $5,357.52 $207.35 $2,488.20 $7,464.60 $266.14 $3,193.68 $9,581.04 Minolta Di550 55 $207.89 $2,494.68 $7,484.04 $259.45 $3,113.40 $9,340.20 $409.71 $4,916.52 $14,749.56 Minolta Di620 62 $319.81 $3,837.72 $11,513.16 $371.80 $4,461.60 $13,384.80 $533.38 $6,400.56 $19,201.68 MAINTENANCE CHARGES CPM MainI. Maintenance Maintenance per copy 12 months 36 months WAGNER OFFICE SOLUTI Panasonic FP-D250 28 $0.0090 $1,620.00 $4,860.00 Panasonic FP-D350 35 $0.0090 $1,620.00 $4,860.00 Panasonic FP-D450 45 $0.0090 $3,240.00 $9,720.00 Panasonic FP-D605 60 $0.0090 $4,320.00 $12,960.00 Panasonic FP-D620S 62 $0.0090 $4,320.00 $12,960.00 AMBASSADOR Canon Image Runner 330 33 $0.0070 $1,260.00 $3,780.00 Canon Image Runner 500 50 $0.0070 $2,520.00 $7,560.00 Canon Image Runner 550 55 $0.0070 $2,940.00 Canon Image Runner 600 60 $0.0070 $3,360.00 $10,080.00 STAN'S OFFICE TECHNOLMinolta Di350 35 $0.0070 $1,260.00 $3,780.00 Minolta Di550 55 $0.0070 $2,520.00 $7,560.00 Minolta Di620 62 $0.0070 $3,360.00 $10,080.00 Base Price = a copier that is not networked and has no optional attachments Basic Options = a copier that is not networked with basic options including large capacity tray and finisher Networked = a copier that includes all the basic options, extra finishing options and is networked