TO: Mayor and Commissioners
FROM: Don Marese, Assistant Information Technology Director
THROUGH: George Gretsas, City Manager
DATE: May 5, 2020
Title
APPROVAL OF RESOLUTION NO. 62-20 TO AWARD AN AGREEMENT WITH CANON SOLUTIONS AMERICA, INC. FOR REPLACEMENT, MAINTENANCE, AND REPAIRS OF MULTIFUNCTION DEVICES; UTILIZING COUNTY OF DUPAGE, IL / OMNIA PARTNERS COOPERATIVE CONTRACT NO. 18-020-LG - $130,000
Body
Recommended Action:
Recommendation
Motion to Approve Resolution No. 62-20 to award an Agreement with Canon Solutions America, Inc., in the estimated amount of $130,000 through September 30, 2020, utilizing the County of DuPage, IL / Omnia Partners Cooperative Contract No. 18-020-LG, and authorize the City Manager to exercise a one-year renewal option, in the amount below, contingent upon appropriation of funds.
Body
Background:
On March 15, 2016, City Commission authorized expenditures with Canon Solutions America, Inc. (Canon) in the amount of $90,000 per year for Fiscal Years (FY) 2016 and 2017 utilizing the State of Florida (State) Contract No. 600-000-11-1. On February 20, 2018, City Commission retroactively approved additional expenditures in the amount of $103,000 for FY 2017, authorized expenditures in the amount not to exceed $200,000 for FY 2018, and authorized the City Manager to exercise any and all renewal options, contingent upon renewal by the State and authorized expenditures in the amount of $200,000 per fiscal year. The State contract expired on February 3, 2020 and the City now requires a new contract vehicle for new equipment leases and maintenance.
The City has identified a cooperative Agreement that will satisfy its requirements. On October 1, 2018, the County of DuPage, IL / Omnia Partners Cooperative awarded a five (5) year Agreement to Canon Solutions America, Inc. for multi-function copier devices and service solutions. Utilizing the contracted pricing for these equipment leases will streamline the purchasing process and increase efficiency of operations. Additionally, a cost savings will also be realized by leveraging the volume discounted pricing offered in the agreement.
The City’s year-to-date estimated costs on current Canon leases are $204,000. Staff expects to add an additional 10% with Canon copier replacements and new lease agreements. We currently have fifty (50) machines under lease with Canon and we will be adding a few additional leases. There are twenty-two (22) machines scheduled to be replaced within the next three (3) to eight (8) months and thirteen (13) machines scheduled for replacement next fiscal year.
The following table represents the annual forecasted cost for each device currently under the existing leases:
The agreement term will start upon full execution of the agreement and will expire on September 30, 2021.
Should the City exercise the renewal options provided in the Agreement, the cumulative Agreement value is provided below. The estimated contract value covers both the new equipment leases moving forward as well as the existing lease payments still valid under the previous state contract.
|
Estimated Contract Value |
|
Contract Term |
Upon full execution - September 30, 2020 |
$130,000 |
|
Renewal Term 1 |
October 1, 2020 - September 30, 2021 |
$224,000 |
|
Total Potential Contract Value: $354,000 |
This motion is in accordance with the Code of Ordinances Chapter 36, Commission Approval Required and Purchasing Policies, Accessing Contracts from Other Government Agencies and Not-for-Profit Organizations.
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source/Fiscal Impact:
Each department has defined an account code to charge the multifunction lease and usage expenses.