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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