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HomeMy WebLinkAbout2010-04-13 City Council Item No. 5CITY OF i~ LADE LSIIYOIZE DREAM EXTREMEn REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY CITY MANAGER DATE: APRIL 13, 2010 SUBJECT: REPLACEMENT COPIER AND LEASE AGREEMENT WITH INNOVATIVE DOCUMENT SOLUTIONS INC., FOR CITY MANAGER'S DEPARTMENT Background Consider Municipal Lease and Service Agreement for a replacement digital copier to be placed in the City Manager's Department. Discussion The City has three five-year Canon copier leases with Innovative Document Solutions Inc. (IDS) that expire in April 2010. The three copiers and locations are: • iR2870 (ID#2474)-B&W, City Manager's Office • iR2270 (ID#2475)-B&W, Senior Center • iR6800 (ID#2473)-Color, former mailroom copier now in Code Enforcement. Upon approval of a new five-year lease to replace the copier in the City Manager's office, the iR2870 copier will be relocated to the Senior Center and kept in service under a basic maintenance agreement. The iR2270 copier will be relocated from the Senior Center to the EOC at Rosetta Canyon Facility and kept under a basic maintenance agreement. As a cost saving measure to more than offset the new lease, the iR6800 will not be replaced. Instead, it will be returned to IDS. (Attachment A shows the City's copier inventory, with lease information and department locations.) Approval of a new five year replacement copier lease for the City Manager's Office is consistent with the City's purchasing policy guidelines regarding the use of CMAS (California Multiple Awards Schedule) pricing for digital copiers and information technology. Under CMAS, vendors and manufacturers have agreed to sell to government agencies at GSA pricing, in lieu of a formal bid process. AGENDA ITEM NO.5 Page 1 of 7 Digital Copier Lease April 13, 2010 Page 2 Fiscal Impact As shown in the table below, a net annual savings of $18,120 is the result of iR6800 disposition, retention of the remaining "off-lease" copiers under basic maintenance agreements and leasing a comparable new model for the City Manager's Office. In addition to the savings above, the relocated EOC and Senior Center copiers are well suited to their extended duty because of the extra features they provide over the copiers they replace (e.g., faxing, scanning, e-mail). Copier Current :New" Net sly Modet LeaseiMaipt.lYr, teasel Maint Savm s , iR6800 $14,652.00 $14,652.00 iR2270 $4,800.00 $600.00 $4,200.00 iR2870 $4,584.00 $1,200.00 $3,384.00 iR3225 $4,116.00 $4,116.00 Total Annual Saving s $18,120.00 Lease, maintenance and total cost of ownership calculations are attached in Attachment B. Sufficient budgeted funds are projected to service the Canon iR3225 lease through the 60 month term, ending in year 2015. Recommendation Approve Innovative Document Solutions, Inc. Canon iR3225 digital copier lease agreement (Attachment C) and designate and authorize the City Manager to execute the 60 month Municipal Lease agreement with Canon Financial Services, Inc. Approve service proposal by Innovative Document Solutions, Inc. (Attachment D) based on monthly CMAS Service Agreement #GS-25F-0023M and designate and authorize the City Manager to execute the Service Agreement with Innovative Document Solutions, Inc. Prepared by: Mark Dennis ~49_ Information/Communications Manager Approved by: Robert A. Brady City Manager Page 2 of 7 FY 2009-2010 Lake Elsinore Leased Copiers Matrix April 13, 2010 4RlelAtF 2474 ss aS e > R~)?TYP IR2870 ~ 5, t z .C i~ r 9 Ytt~paf41 City Manager's Office va fi ~ J;~ie 1 . ot4 _Ea; Senior Center 'Scm a?;~a,7 k er,r Exp 4/2010 2475 IR2270 Senior Center EOC (Rosetta Canyon) Exp 4/2010 3066 IR2270 Engineering Department Stay Exp 10/2011 3242 1R6870 Mail Room Stay Exp 3/2012 2473 1R6800 Code Enforcement Division Removed Exp 4/2010 3416 IR7105 Mail Room Stay Exp 8/2012 3415 IR3025 Public Works Stay Exp 8/2012 3603 IR2022i Fire Station Stay Exp 7/2014 3604 IR2022i Fire Station Stay Exp 7/2014 3607 IR2022i Fire Station Stay Exp 7/2014 3689 1R3045 Finance Stay Exp 5/2013 Copier Matrix Attachment A Attachment A Page 3 of 7 FY 2009-2010 Copier Lease Analysis April 13, 2010 CANON IR3225 (1) Maintenance Cost/Copy after 6,000 $ 0.01210 Est. Monthly Volume after 6,000 incl. 500 Month 10 11 12 Sub TOTAL Mo. Base ST 7.75% Image Fee ST 3.88% $ 72.60 $ 5.63 $ 6.05 $ 023 $ 72.60 $ 5.63 $ 6.05 $ 0.23 $ 72.60 $ 5.63 $ 6.05 $ 0.23 $ 72.60 $ 5.63 $ 6.05 $ 0.23 $ 72.60 $ 5.63 $ 6.05 $ 0.23 $ 72.60 $ 5.63 $ 6.05 $ 0.23 $ 72.60 $ 5.63 $ 6.05 $ 0.23 $ 72.60 $ 5.63 $ 6.05 $ 0.23 $ 72.60 $ 5.63 $ 6.05 $ 0.23 $ 72.60 $ 5.63 $ 6.05 $ 0.23 $ 72.60 $ 5.63 $ 6.05 $ 0.23 $ 72.60 $ 5.63 $ 6.05 $ 0.23 $ 871,201 67.52 $ 72.60 $ 2.82 TOTAL ANNUAL MAINTENANCE $ 1,014.13 MONTHLY MAINTENANCE AVERAGE $ 84.51 MONTHLY LEASE+MAINTENANCE COST $ 346.34 1) Equipped with feeder, network board, print/scan, fax, punch bundle LEASE TERMS Month Lease Pmt ST @ 7.75% TOTAL $ PER YEAR 1 $ 243.00 $ 18.83 $ 261.83 2 $ 243.00 $ 18.83 $ 261.83 3 $ 243.00 $ 18.83 $ 261.83 4 $ 243.00 $ 18.83 $ 261.83 5 $ 243.00 $ 18.83 $ 261.83 6 $ 243.00 $ 18.83 $ 261.83 7 $ 243.00 $ 18.83 $ 261.83 8 $ 243.00 $ 18.83 $ 261.83 9 $ 243.00 $ 18.83 $ 261.83 10 $ 243.00 $ 18.83 $ 261.83 11 $ 243.00 $ 18.83 $ 261.83 12 $ 243.00 $ 18.83 $ 261.83 $ 3,141.99 13 $ 243.00 $ 18.83 $ 261.83 14 $ 243.00 $ 18.83 $ 261.83 15 $ 243.00 $ 18.83 $ 261.83 16 $ 243.00 $ 18.83 $ 261.83 CopierLease100413 Attachment B Attachment B Page 4 of 7 FY 2009-2010 Copier Lease Analysis April 13, 2010 Month Lease Pmt ST @ 7.75% TOTAL $ PER YEAR 17 $ 243.00 $ 18.83 $ 261.83 18 $ 243.00 $ 18.83 $ 261.83 19 $ 243.00 $ 18.83 $ 261.83 20 $ 243.00 $ 18.83 $ 261.83 21 $ 243.00 $ 18.83 $ 261.83 22 $ 243.00 $ 18.83 $ 261.83 23 $ 243.00 $ 18.83 $ 261.83 24 $ 243.00 $ 18.83 $ 261.83 $ 3,141.99 25 $ 243.00 $ 18.83 $ 261.83 26 $ 243.00 $ 18.83 $ 261.83 27 $ 243.00 $ 18.83 $ 261.83 28 $ 243.00 $ 18.83 $ 261.83 29 $ 243.00 $ 18.83 $ 261.83 30 $ 243.00 $ 18.83 $ 261.83 31 $ 243.00 $ 18.83 $ 261.83 32 $ 243.00 $ 18.83 $ 261.83 33 $ 243.00 $ 18.83 $ 261.83 34 $ 243.00 $ 18.83 $ 261.83 35 $ 243.00 $ 18.83 $ 261.83 36 $ 243.00 $ 18.83 $ 261.83 $ 3,141.99 37 $ 243.00 $ 18.83 $ 261.83 38 $ 243.00 $ 18.83 $ 261.83 39 $ 243.00 $ 18.83 $ 261.83 40 $ 243.00 $ 18.83 $ 261.83 41 $ 243.00 $ 18.83 $ 261.83 42 $ 243.00 $ 18.83 $ 261.83 43 $ 243.00 $ 18.83 $ 261.83 44 $ 243.00 $ 18.83 $ 261.83 45 $ 243.00 $ 18.83 $ 261.83 46 $ 243.00 $ 18.83 $ 261.83 47 $ 243.00 $ 18.83 $ 261.83 48 $ 243.00 $ 18.83 $ 261.83 $ 3,141.99 49 $ 243.00 $ 18.83 $ 261.83 50 $ 243.00 $ 18.83 $ 261.83 51 $ 243.00 $ 18.83 $ 261.83 52 $ 243.00 $ 18.83 $ 261.83 53 $ 243.00 $ 18.83 $ 261.83 54 $ 243.00 $ 18.83 $ 261.83 55 $ 243.00 $ 18.83 $ 261.83 56 $ 243.00 $ 18.83 $ 261.83 57 $ 243.00 $ 18.83 $ 261.83 58 $ 243.00 $ 18.83 $ 261.83 59 $ 243.00 $ 18.83 $ 261.83 60 $ 243.00 $ 18.83 $ 261.83 $ 3,141.99 TOTAL $ 14,580.00 $ 1,129.95 $ 15,709.95 $ 15,709.95 Copierl-ease100413 Attachment B Attachment B 2 Page 5 of 7 CUSTOMER ORDER Innovative Document Solutions, Inc Riverside. Los Anaeles. San Dieao & Oranae Counties Canon Financial Services, Inc. ~ ~ City of Lake Elsinore Attention Address City, St, Zip Phone Fax Email Order Date Ship Representative 3/9/10 Jana Priest Attention Toby Soto Address 130 South Main Street City, St, Zip Lake Elsinore, CA 92530 Phone (951) 674-3124 Fax Email no Qty. PC/UA Model/De scription Lease/Purchase Unit Price Am ount 1 CanoniR3225 leased 1 DADF 1 Color U-Send 1 Finisher-S1 1 Punch Unit-R1 1 Cassette Feeding Unit 1 Fax Board-AC1 Sub-Total • . TERM: 60 mos PAYMENT: $243.00 Tax (Plus Applicable Taxes) Delivery • MI N 7-9 IN, N Professi onal Svcs TOTAL ' ~ B&W Cqtor B&W Color Excess Excess dyesrd a ` Model Description Type of MA ase Bllling B 6a~a BdSe Copies Copies B&W Color 3 Bllltng < Contract - Frgquenpy Char a 'z; ,-Charge i" Included Included Charge Charge :Biequency n n iR3225 C All I l = ~t th! i / $0 0121 / =:;N thl a o nc usive ~ on no m n. n a . n a lon , fi z3 3 I 9 ~ S' i > f l l.. r., , .,2 1 I +S `3 F S(- 2 1$ X v p i~ u 1 '1 &IMIll Add to current aggregate maintenance agreement. Keep Canon 1132870 on maintenance agreement and move equipment to Senior Center. The customer acknowledges the receipt of a true copy of this Customer Order & Security Agreement and that he/she has read this agreement and understands and agrees to be bound by the terms and conditions here and on the reverse side. The customer further agrees that it is the complete and exclusive statement of the agreement between the parties which supersedes all proposals, oral or written, and all other communications and prior agreements between the parties relating to the subject matter of this agreement. Once accepted by the customer and an officer of Innovative Document Solutions Inc., the terms of this agreement may not be amended, modified or rescinded except by a written instrument signed by both parties. 'Signature Printed Name Title Date Accepted by Innovative Document Solutions Inc. Company Officer Officer Signature Title Date Attachment C Page 6 of 7 Cana" CANON FINANCIAL SERVICES, INC. ("CFS") REMITTANCE ADDRESS: 14904 Collections Center Dr, MUNICIPAL LEASE AGREEMENT Chicago, Illinois 60693 (800) 2200200 CFS-1045 (02108) AGREEMENT CUSTOMER (FULL LEGAL NAME) DBA Lake Elsinore City Of ('Customer') PHONE g51-674-3124 BILLING ADDRESS CITY COUNTY STATE ZIP 130 South Main Street Lake Elsinore CA 92530 EQUIPMENT ADDRESS CITY COUNTY STATE ZIP EQUIPMENT INFORMATION NUMBER AND AMOUNT OF PAYMENTS Quantity Serial Number MakelModellDescri lion Number of Payments Total Payment - 1 Canon IR3225 Copier System 60 243.00 Term (in months) 60 Plus Applicable Taxes Payment Frequency © Monthly ❑ Quarterly Other: THIS AGREEMENT IS EFFECTIVE ONLY UPON SIGNING BY BOTH PARTIES. THIS AGREEMENT IS NON-CANCELABLE BY CUSTOMER EXCEPT AS DESCRIBED IN THE FISCAL FUNDING PROVISION HEREIN. CUSTOMER REPRESENTS THAT ALL ACTION REQUIRED TO AUTHORIZE THE EXECUTION OF THIS AGREEMENT ON BEHALF OF THE CUSTOMER BY THE FOLLOWING SIGNATORIES HAS BEEN TAKEN. ACCEPTED AUTHORIZED CUSTOMER SIGNATURE - CANON FINANCIAL SERVICES, INC. By. X Tide: By: Title: Date: Printed Name: BY X Printed Name: To: Canon Financial Services, Inc. ("CFS") ACCEPTANCE CERTIFICATE Tim Customer conifies that (a) the Equipment referred to in the above Agreement has been received, (b) installation has been completed. (c) the Equipment has been examined byy Customer and is in good operating order and condition and is, In all respects, satisfactory to the Customer. and (d) the Equipment is irrevocably accepted by the Customer for alt purposes under me Agreemem. Accordingly, Customer hereby authorizes billing under this Agreement. Signature: X Printed umu or any): Date: TERMS AND CONDITIONS 1. AGREEMENT: CFS leases to Customer, a (state name or political subdivision or agency) of [State name) Will its chief executive office at , and Customer teases from CFS, with its place of business at 158 Gaither Drive, Suite 200, Mount Laurel, New Jersey 08054, all the equipment described above, together with all replacement pans and substitutions for and additions to all such equipment (the "Equipment"), upon the terms and conditions set forth in this Lease Agreement ("Agreement'). The amount of each Payment is based on the suppliers best estimate of the cost of the Equipment. Such Payments will be adjusted upward or downward if the actual total cost of the Equipment including any safes or use tax, is more a less than the estimate and, to that event Customer authorizes CFS to adjust such Payments by up to fifteen percent (15%). 2. AGREEMENT PAYMENTS: Customer agrees to pay to CFS, as invoiced, during the term of this Agreement, (a) the Payments specified under "Number and Amount of Payments" above, and (b) such other amounts permitted hereunder as invoiced by CFS ("Payments') and (c) on Schedule I attached hereto. Such Payments are comprised of the principal and interest thereon. 3. APPLICATION OF PAYMENTS: All Payments received by CFS from Customer Under this Agreement will be applied to amounts due and payable hereunder chommogically, based on the date of CFS's charge shown on the Invoza for each such amount and among amounts having the same date in such order as CFS, in its discretion, may delemtine. 4. TERM OF AGREEMENT: The term of this Agreement shall commence on the date the Equipment is delivered to Customer, provided Customer executes CFS' Accept Equipment as specified in this Agreement. The term of this Agreement shall and, unless sooner terminated by CFS after an event of default or under the Fiscal Funding IF by Customer under this Agreement have been paid as provided. Except as set forth herein, Customer has no Peru to return the EeuiDment to CFS. 5. NO CFS WARRANTIES: CUSTOMER ACKNOWLEDGES THAT CFS IS NOT A MANUFACTURER, DEALER, OR SUPPLIER OF THE EQUIPMENT. CUSTOMER A "AS IS" AND IS OF A SIZE, DESIGN AND CAPACITY SELECTED BY CUSTOMER. CFS HAS MADE NO REPRESENTATION OR WARRANTY WIIH RESPECT 10 T EQUIPMENT, I HE ABSENCE OF ANY CLAIM OF INFRINGEMENT' OR THE LIKE, OR ANY OTHER REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, V INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCI IANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Any warranty with PSIR dealer, or manufacturer is separate from, and is not a pan of, this Agreement and shall be for the benefit of CFS, Customer, and CFS's purchaser or assignee, it any. So of this Agreement, CFS assigns to Customer, solely for the purposes of makin and pKroseculinDg agsuch claim, the r'pHhts if anyT, which CTS m7 have ag0ainslthestii warrablor other HERTHESUP ANY TERM OF THIS AGREEMENT. OR M2 ANY REPRESENTATION OR WARRANTY WITH R RESPECT TO THIS AGREIEMENT OR THE EQUIPMENT ON BEHAI 6. FISCAL FUNDING: The Customer warrants that it has funds available to pay Payments payable pursuant to Ibis Agreement until the end of its current appropriation pr make Payments in each appropriation period from now until the and of this Agreement. I he officer of the Customer responsible for preparation of Customer's annual hud Payments to CFS due thereafter, provided: (1) the Equipment is re appropriate the necessary funds as the reason for cancellation; an pursuant to the terms of this Agreement, CFS shall retain all sums Fiscal year, and shall not constitute indebtedness Ora multiple fsc+ pledge by Customer of any taxes or other monies, ather than as at 7. ACCEPTANCE; DELIVERY: Customer's execution of the Acce the Equipment has been delivered to and accepted by Customer 6 after delivery of the Equipment, delivered to CFS written notice of have Irrevocably accepted the Equipment. CFS is the lessor and he paid to GFS for the Equipment Customer ma 9, upon prior wf111CR ounce to CIS, one at Customer's expanse and in accordance with this Agroomed, and (heron 0, Custom as provided for in the Agreemem; (2) the above described notice states the failure of the ;e is accompanied by payment of all amounts then due to CFS under this Agreement. In nor. Cusomer's Payment obligations under this Agreement in any fiscal year shall cons Toot Qustomstood or DBstomer's state constitution, slate law orlmme rate charter. Nail a specific fiscal year for this Agreement and the Equipment. no, or Customer's provision to CFS of other written confirmation of its acceptance of the of this Agreement and Customer may not for any reason revoke that acceptance; from% ante of the Equipment Specifying the reasons therefore and specifically referencing Ihil lessee of the Equipment under Ihts cement. As between CPS and Customer Doty, th nmance of this oreemem and to hold CFS harmless from damanes if for any reason Ih cc Certificate or otherwise accepts the nsion, when all amounts required to be paid :EES THAT THE EQUIPMENT IS LEASED SUITABILITY OR DURABILITY OF IN IE H RESPECT TO THE EQUIPMENT to the Equipment made by the supplier, Ig as Customer is not in breach or default dealer, or manufacturer for breach of S AUTHORIZED TO WAIVE OR ALTER OF CFS. it and warrants that it Wesenlly intends to shall request from its legislative body in with the exercise of reasonable care and ve upon the exhaustion of the funding Shall be released of its obliggation to make gislative body or lending aullnuily to t event Customer returns the. Equipment le a current expense of Customer for such 1 in this Agreement shall constitute a oiPment shall conclusively establish that i( Customer has not, within ten H0) days groaners, Customer shall be deemed to Agreement strait suppersede any Customer !quipment is not delvered as ordered, if the u. LVUA r wrv; Ll twe; IVAmtb: VFHCES: customer shad not move the Equlpmem from the location specified herein except with the prior written consent of CFS. Customer agrees that h will keep the Equipment free and clear of all claims and limn other than those created as aresull of this Agreement. Customer's legal name (as set lonh in its constituent documents filed with the appropriate governmental office or agency) is set loan herein. Upon request, Customer will deliver to CFS certified constituent documents. The chief executive office of Customer is foaled at the address set forth herein. Customer will not change its named the location of its chief executive office unless CFS has been given at least 30 days prig written notice thereof and Customer has executed and delivered to CFS such financing statements and other insmumen6 required or appropriate. 9. USE; FINANCING STATEMENTS: Customer shall comply with all laws or regulations relating to the use or maintenance of the Equipment. Customer shall put lire Equipment only to the use contemplated by the manufacturer of such Equipment. Customer authorizes CFS (and amp third party filing service designated by CFS) to execute and file, (a) financing statements evidencing the interest of CFS in Alm Equipment, (b) continuation statements in respect thereof, and (c) amendments (including forms containing a broader description of the Equipment than the description set lath herein) and Customer irrevocably waives any tight to notice thereof. GFS-1045(02108) SEE REVERSE SIDE FOR ADDITIONAL TERMS AND CONDITIONS. INITIAL Page 7 of 7 Attachment D