06 MBS Business Systems Agreement ITEM NO. 6.
IMEETTOWN OF LOS GATOS
ING DATE: 11/19/2024
exii
COUNCIL AGENDA REPORT ITEM NO: 6
DATE: November 5, 2024
TO: Mayor and Town Council
FROM: Chris Constantin,Town Manager
SUBJECT: Authorize the Town Manager to Enter into an Agreement with MBS Business
Systems (MBS)to Provide Multifunctional Printer Purchases, Replacement,
and Maintenance Services for the Town of Los Gatos in an Amount Not to
Exceed $260,540
RECOMMENDATION:
Authorize the Town Manager to enter into an agreement with MBS Business Systems (MBS) to
provide multifunctional printer purchases, replacement, and maintenance services for the
Town of Los Gatos in an amount not to exceed $260,540.
BACKGROUND:
In 2018 the Town entered into a lease and maintenance agreement with MBS for the Town's
copiers and printers. This was a five-year agreement, expiring last year. Staff issued a Request
for Proposal (RFP) last year for multifunctional printer (MFP) lease, replacement, management,
and maintenance services.
Staff determined there was still significant useful life left in many of the fleet of printers and
went back out for quotes to the vendors for maintenance only. MBS was the only vendor that
provided a quote. The maintenance contract expires November 30, 2024. Moving forward, staff
believes we can extend the life of multifunctional printers, and replace units on an as-needed
basis, utilizing the cooperative purchasing agreement NASPO Value Point Contract#189762 per
Section XVII of the Town Purchasing Policy. Staff met with MBS to finalize the equipment list
and discuss terms and conditions. As part of these terms and conditions, staff is requesting
authorization to enter into a five-year agreement with MBS for multifunctional printer
purchase, replacement, management, and maintenance services.
PREPARED BY: Rebecca Colassaco
Systems Administrator
Reviewed by: Town Manager,Assistant Town Manager, Chief Technology Officer,Town Attorney, and
Finance Director
110 E. Main Street Los Gatos,CA 95030• (408)354-6832
Page 59 www.losgatosca.gov
PAGE 2 OF 3 1TEM NO. 6.
SUBJECT: Authorize the Town Manager to Enter into a Five-Year Agreement with MBS to
Provide Multifunctional Printer Purchases, Replacement, Management, and
Maintenance Services
DATE: November 5, 2024
DISCUSSION:
After conducting a thorough review of the current fleet of printers, staff identified units that
require replacement based on factors such as usage, performance issues, and equipment end-
of-life. This approach, which contrasts with the prior method of replacing all printers at once,
aims to extend the life of equipment wherever feasible, ultimately reducing overall printer
costs. The plan also focuses on reducing the Town's total cost of ownership across all
departments by eliminating unused features and replacing units only when necessary, after
careful review with staff. The selected vendor, known for consistently high customer service
ratings and excellent references from other municipal government clients, demonstrated a
strong understanding of the project scope. Their responsiveness to the need for extending
printer life while maintaining equipment under service contracts ensures long-term value.
Additionally, the cooperative purchasing agreement will leverage contract pricing, securing the
best rates for both equipment and maintenance.
The proposed 5-year plan is designed to maximize the lifespan of all printers within the Town's
fleet. The agreement will include monthly maintenance fees for the entire fleet and the cost of
replacing printers as needed, through the cooperative purchasing agreement. All printers will
be replaced within the next three years. Lease options were also reviewed for comparison, and
it was determined that the cost of the equipment for the life of the lease was higher than the
outright purchase price. Additionally, the plan includes a monthly allowance of 50,500 black-
and-white (B/W) copies and 2,500 color copies. Any copies exceeding this allowance will incur a
flat cost per copy. The following is a detailed breakdown of the anticipated costs for each year
of the plan, covering both printer replacements and ongoing maintenance fees.
Year 1 (2024-2025)
Printers to replace 13
Total cost for replacements of$53,112.49
Maintenance fees (entire fleet of printers) $29,068.40
Year 2 (2025-2026)
Printers to replace 10
Total cost of replacement printers $40,874.30
Maintenance fees (entire fleet of printers) $26,302.14
Year 3 (2026-2027)
Printers to replace 13
Total cost of replacement printers $37,469.47
Maintenance fees (entire fleet of printers) $24,227.81
Page 60
PAGE 3 OF 3 1TEM NO. 6.
SUBJECT: Authorize the Town Manager to Enter into a Five-Year Agreement with MBS to
Provide Multifunctional Printer Purchases, Replacement, Management, and
Maintenance Services
DATE: November 5, 2024
Year 4 (2027-2028)
Printers to replace NONE
Maintenance fees only$24,227.81
Year 5 (2028-2029)
Printers to replace NONE
Maintenance fees only$25,257.03
Total not to exceed $260,540.
CONCLUSION:
Staff believes that MBS has the expertise & willingness to work on ways to maximize the life of
equipment and experience to provide multifunctional printer purchases, replacement, and
maintenance services for the Town. In addition, staff anticipates that the new cost structure
will result in annual savings compared to the previous agreement by extending the life of
printers locking in maintenance fees for 5 years. Staff therefore recommends that the Town
Council authorize the Town Manager to enter into an agreement with MBS for these services.
Attachment 1 is a draft agreement.
COORDINATION:
The Finance Department, Town Attorney, Information Technology, and Town Manager's Office
coordinated this report.
FISCAL IMPACT:
There are sufficient funds available to cover the cost of the new agreement for the remainder
of this fiscal year. Future contract years will be incorporated into the Town's proposed Budgets.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Proposed Town MBS Agreement with Exhibit A- MBS Proposal
Page 61
/TEM NO. 6.
AGREEMENT FOR CONSULTANT SERVICES
THIS AGREEMENT is made and entered into on December 1, 2024, by and between the TOWN OF
LOS GATOS, a California municipal corporation, ("Town") and MBS Business Systems (Monterey
Bay Office Products, Inc), ("Consultant"), whose address is 325 Victor Street, Suite A, Salinas, CA
93907. This Agreement is made with reference to the following facts.
I. RECITALS
1.1 The Town desires to engage Consultant to provide multifunctional printer purchase,
replacement, management, and maintenance services.
1.2 The Consultant represents and affirms that it is willing to perform the desired work
pursuant to this Agreement.
1.3 Consultant warrants it possesses the distinct professional skills, qualifications, experience,
and resources necessary to timely perform the services described in this Agreement.
Consultant acknowledges Town has relied upon these warranties to retain Consultant.
II. AGREEMENTS
2.1 Scope of Services. Consultant shall provide services as described in that certain proposal
dated November 6, 2024, which is hereby incorporated by reference and attached as
Exhibit A.
2.2 Term and Time of Performance. This contract will remain in effect from December 1,
2024, to November 30, 2029. Consultant shall perform the services described in this
agreement as follows:
Year 1 (2024-2025)
Printers to replace 13
Total cost for replacements of$53,112.49
Maintenance fees (entire fleet of printers) $29,068.40
Year 2 (2025-2026)
Printers to replace 10
Total cost of replacement printers$40,874.30
Maintenance fees (entire fleet of printers) $26,302.14
Year 3 (2026-2027)
Printers to replace 13
Total cost of replacement printers $37,469.47
Maintenance fees (entire fleet of printers)$24,227.81
Agreement for Services with MBS ATTACHM ENT 1
Page 62 Page 1 of 7
/TEM NO. 6.
Year 4 (2027-2028)
Printers to replace NONE
Maintenance fees only$24,227.81
Year 5 (2028-2029)
Printers to replace NONE
Maintenance fees only$25,257.03
Total not to exceed $260,540
2.3 Compliance with Laws. The Consultant shall comply with all applicable laws, codes,
ordinances, and regulations. Consultant represents and warrants to Town that it has all
licenses, permits, qualifications and approvals of whatsoever nature which are legally
required for Consultant to practice its profession. Consultant shall maintain a Town of Los
Gatos business license pursuant to Chapter 14 of the Code of the Town of Los Gatos.
2.4 Sole Responsibility. Consultant shall be responsible for employing or engaging all persons
necessary to perform the services under this Agreement.
2.5 Information/Report Handling. All documents furnished to Consultant by the Town and all
reports and supportive data prepared by the Consultant under this Agreement are the
Town's property and shall be delivered to the Town upon the completion of Consultant's
services or at the Town's written request. All reports, information, data, and exhibits
prepared or assembled by Consultant in connection with the performance of its services
pursuant to this Agreement are confidential until released by the Town to the public, and
the Consultant shall not make any of these documents or information available to any
individual or organization not employed by the Consultant or the Town without the
written consent of the Town before such release. The Town acknowledges that the reports
to be prepared by the Consultant pursuant to this Agreement are for the purpose of
evaluating a defined project, and Town's use of the information contained in the reports
prepared by the Consultant in connection with other projects shall be solely at Town's risk,
unless Consultant expressly consents to such use in writing. Town further agrees that it will
not appropriate any methodology or technique of Consultant which is and has been
confirmed in writing by Consultant to be a trade secret of Consultant.
2.6 Compensation. Compensation for Consultant's professional services shall not exceed
$260,540.00, inclusive of all costs. Payment shall be based upon Town approval of each
task.
2.7 Billing. Billing shall be monthly by invoice within thirty (30) days of the rendering of the
service and shall be accompanied by a detailed explanation of the work performed by
whom at what rate and on what date. Also, plans, specifications, documents, or other
pertinent materials shall be submitted for Town review, even if only in partial or draft
form.
Agreement for Services with MBS ATTACHM ENT 1
Page 63 Page 2 of 7
/TEM NO. 6.
Payment shall be net thirty (30) days. All invoices and statements to the Town shall be
addressed as follows:
Invoices:
Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655
Los Gatos, CA 95031-0655
2.8 Availability of Records. Consultant shall maintain the records supporting this billing for not
less than three years following completion of the work under this Agreement. Consultant
shall make these records available to authorized personnel of the Town at the Consultant's
offices during business hours upon written request of the Town.
2.9 Assignability and Subcontracting. The services to be performed under this Agreement are
unique and personal to the Consultant. No portion of these services shall be assigned or
subcontracted without the written consent of the Town.
2.10 Independent Contractor. It is understood that the Consultant, in the performance of the
work and services agreed to be performed, shall act as and be an independent contractor
and not an agent or employee of the Town. As an independent contractor, he/she shall not
obtain any rights to retirement benefits or other benefits that accrue to Town
employee(s). With prior written consent,the Consultant may perform some obligations
under this Agreement by subcontracting, but may not delegate ultimate responsibility for
performance or assign or transfer interests under this Agreement. Consultant agrees to
testify in any litigation brought regarding the subject of the work to be performed under
this Agreement. Consultant shall be compensated for its costs and expenses in preparing
for, traveling to, and testifying in such matters at its then current hourly rates of
compensation, unless such litigation is brought by Consultant or is based on allegations of
Consultant's negligent performance or wrongdoing.
2.11 Conflict of Interest. Consultant understands that its professional responsibilities are solely
to the Town. The Consultant has and shall not obtain any holding or interest within the
Town of Los Gatos. Consultant has no business holdings or agreements with any individual
member of the Staff or management of the Town or its representatives nor shall it enter
into any such holdings or agreements. In addition, Consultant warrants that it does not
presently and shall not acquire any direct or indirect interest adverse to those of the Town
in the subject of this Agreement, and it shall immediately disassociate itself from such an
interest, should it discover it has done so and shall, at the Town's sole discretion, divest
itself of such interest. Consultant shall not knowingly and shall take reasonable steps to
ensure that it does not employ a person having such an interest in this performance of this
Agreement. If after employment of a person, Consultant discovers it has employed a
person with a direct or indirect interest that would conflict with its performance of this
Agreement for Services with MBS ATTACHM ENT 1
Page 64 Page 3 of 7
/TEM NO. 6.
Agreement, Consultant shall promptly notify Town of this employment relationship, and
shall, at the Town's sole discretion, sever any such employment relationship.
2.12 Equal Employment Opportunity. Consultant warrants that it is an equal opportunity
employer and shall comply with applicable regulations governing equal employment
opportunity. Neither Consultant nor its subcontractors do and neither shall discriminate
against persons employed or seeking employment with them on the basis of age, sex,
color, race, marital status, sexual orientation, ancestry, physical or mental disability,
national origin, religion, or medical condition, unless based upon a bona fide occupational
qualification pursuant to the California Fair Employment & Housing Act.
III. INSURANCE AND INDEMNIFICATION
3.1 Minimum Scope of Insurance:
Consultant agrees to have and maintain,for the duration of the contract,
General Liability insurance policies insuring him/her and his/her firm to an
amount not less than: two million dollars ($2,000,000) combined single limit
per occurrence for bodily injury, personal injury and property damage.
ii. Consultant agrees to have and maintain for the duration of the contract, an
Automobile Liability insurance policy ensuring him/her and his/her staff to
an amount not less than one million dollars ($1,000,000) combined single
limit per accident for bodily injury and property damage.
iii. Consultant shall provide to the Town all certificates of insurance, with
original endorsements effecting coverage. Consultant agrees that all
certificates and endorsements are to be received and approved by the
Town before work commences.
iv. Consultant agrees to have and maintain,for the duration of the contract,
professional liability insurance in amounts not less than $1,000,000 which is
sufficient to insure Consultant for professional errors or omissions in the
performance of the particular scope of work under this agreement.
General Liability:
The Town, its officers, officials, employees and volunteers are to be covered
as insured as respects: liability arising out of activities performed by or on
behalf of the Consultant; products and completed operations of Consultant,
premises owned or used by the Consultant. This requirement does not
apply to the professional liability insurance required for professional errors
and omissions.
Agreement for Services with MBS ATTACHM ENT 1
Page 65 Page 4 of 7
/TEM NO. 6.
ii. The Consultant's insurance coverage shall be primary insurance as respects
the Town, its officers, officials, employees, and volunteers. Any insurance or
self-insurances maintained by the Town, its officers, officials, employees or
volunteers shall be excess of the Consultant's insurance and shall not
contribute with it.
iii. Any failure to comply with reporting provisions of the policies shall not
affect coverage provided to the Town, its officers, officials, employees or
volunteers.
iv. The Consultant's insurance shall apply separately to each insured against
whom a claim is made or suit is brought, except with respect to the limits of
the insurer's liability.
3.2 All Coverages. Each insurance policy required in this item shall be endorsed to state that
coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except
after thirty (30) days' prior written notice by certified mail, return receipt requested, has
been given to the Town. Current certification of such insurance shall be kept on file at all
times during the term of this agreement with the Town Clerk.
3.3 Workers' Compensation. In addition to these policies, Consultant shall have and maintain
Workers' Compensation insurance as required by California law and shall provide evidence
of such policy to the Town before beginning services under this Agreement. Further,
Consultant shall ensure that all subcontractors employed by Consultant provide the
required Workers' Compensation insurance for their respective employees.
3.4 Indemnification. The Consultant shall save, keep, hold harmless and indemnify and defend
the Town its officers, agent, employees, and volunteers from all damages, liabilities,
penalties, costs, or expenses in law or equity that may at any time arise or be set up
because of damages to property or personal injury received by reason of,or in the course
of performing work which may be occasioned by a willful or negligent act or omissions of
the Consultant, or any of the Consultant's officers, employees, or agents or any
subconsultant.
IV. GENERAL TERMS
4.1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder
shall operate as a waiver of any other right or remedy that party may have hereunder, nor
does waiver of a breach or default under this Agreement constitute a continuing waiver of
a subsequent breach of the same or any other provision of this Agreement.
4.2 Governing Law. This Agreement, regardless of where executed, shall be governed by and
construed to the laws of the State of California. Venue for any action regarding this
Agreement shall be in the Superior Court of the County of Santa Clara.
Agreement for Services with MBS ATTACHM ENT 1
Page 66 Page 5 of 7
/TEM NO. 6.
4.3 Termination of Agreement. The Town and the Consultant shall have the right to terminate
this agreement with or without cause by giving not less than fifteen days (15) written
notice of termination. In the event of termination, the Consultant shall deliver to the Town
all plans, files, documents, reports, performed to date by the Consultant. In the event of
such termination, Town shall pay Consultant an amount that bears the same ratio to the
maximum contract price as the work delivered to the Town bears to completed services
contemplated under this Agreement, unless such termination is made for cause, in which
event, compensation, if any, shall be adjusted in light of the particular facts and
circumstances involved in such termination.
4.4 Amendment. No modification, waiver, mutual termination, or amendment of this
Agreement is effective unless made in writing and signed by the Town and the Consultant.
4.5 Disputes. In any dispute over any aspect of this Agreement,the prevailing party shall be
entitled to reasonable attorney's fees, including costs of appeal.
4.6 Notices. Any notice required to be given shall be deemed to be duly and properly given if
mailed postage prepaid,and addressed to:
Town of Los Gatos MBS Business Systems
Attn: Town Clerk 325 Victor Street, Ste. A
110 E. Main Street Salinas, CA 93907
Los Gatos, CA 95030
or personally delivered to Consultant to such address or such other address as Consultant
designates in writing to Town.
4.7 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the
terms and conditions of this Agreement in respect of the Products or Services and any
attachments to this Agreement, then the terms and conditions of this Agreement shall
prevail over attachments or other writings.
4.8 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and
exclusive statement of the Agreement between the Town and Consultant. No terms,
conditions, understandings or agreements purporting to modify or vary this Agreement,
unless hereafter made in writing and signed by the party to be bound, shall be binding on
either party.
Agreement for Services with MBS ATTACHM ENT 1
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/TEM NO. 6.
IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement.
Town of Los Gatos by: Consultant, by:
Chris Constantin, Town Manager
Recommended by:
Sai Kim, Chief Technology Officer Printed Name and Title
Approved as to Form:
Gabrielle Whelan, Town Attorney
Attest:
Wendy Wood, CMC, Town Clerk
Agreement for Services with MBS ATTACHM ENT 1
Page 68 Page 7 of 7
MBS Business iTEM NO. 6.
rn 171 325 Victor St. Suite A
Salinas, CA 93907
P 831.758.1048/800.848.7575
F 831.758.5984
MBit Managed
M BP/I
S MBit
365 Victor St. Suite A
Salinas, CA 93907
Business Systems Managed IT P 831.975-5102
www.mbsworks.com
Town of Los Gatos
110 Main Street
Los Gatos, CA November 6, 2024
Town of Los Gatos Leadership,
It is with gratitude for the ongoing partnership and collaborative between MBS and the Town that I present the
following proposal for continued service and elevation of your Multi-function and Single-function equipment with
Maintenance and Service.
The history between the Town of Los Gatos and MBS is long, admirable, and respected. With joint commitment to
the best care and support for the community we share, the details outlined in this five-year proposed contract
represent our best advice for sustainable operation efficiency and cost effectiveness.
For the duration the of the next five years, MBS recommends the following, as illustrated in the drilled-down detail
presented:
- The Town will work in partnership with MBS to enhance models, as outlined, over the course of the next
three years. All associated costs are outlined in Attachment A of the Maintenance Contract.
o The Town's multi-function (copy/print/scan) and single-function (print only) equipment has
reached a point where models have become archaic in nature, hence Maintenance Costs
continue to increase.
o These models will all reach end of life during the next three years, and will no longer be
supported by the manufacturer.
o With the age and end of life status of equipment, the Town is gravely missing out an opportunity
to elevate security, lower maintenance costs (the older a machine, the harder it becomes to
support it) and begin a new base-line of up-to-date machinery for many years to come.
- MBS will provide a cost effective, comprehensive Maintenance Agreement for 5 Years, as detailed, to
support all of the Town's equipment and as the three-year enhancement plan is activated.
- NOTE: This proposal illustrates best estimated costs, based on current and historical
volumes/usage and a specific timeline for specifically planned equipment enhancement.
Technology & IT Managed EXHIBIT A
Page 69 print I copy I scan I network I secure I cloud
MBS Business 1TEMN0. &.
325 Victor St. Suite A
Salinas, CA 93907
P 831.758.1048/800.848.7575
F 831.758.5984
MBit Managed
MBS MBit
365 Victor St. Suite A
Salinas, CA 93907
Business Systems Managed IT P 831.975-5102
www.mbsworks.com
MBS extends the following detail of our proposed offer, in alignment with the collaborative NASPO ValuePoint
Contract. The specifics presented are based on a three-year agreement of replacing outdated equipment and a
Maintenance Agreement for five years with the outlined enhancement plan.
- While total volume costs are best estimates and may slightly fluctuate,the Cost per Copy (CPC
Rates), base allotments, and costs of new equipment are binding per this contract.
Respectfully,
Michelle Brill
Major Account Manager
Authorization to move forward with three-year equipment enhancement plan and subsequent five-year
Maintenance Agreement:
/S/
Michelle Brill, Major Account Manager November 6, 2024
For Town of Los Gatos
Printed Name and Title Date
Technology & IT Managed
Page 70 print I copy I scan I network I secure I cloud
Managed Print Services Agreem z. /TEM NO. 6.
Date: November 7, 2024
M BS Con :
P.O. :
www.mbsworks.com
Sales Rep: Michelle Brill
BILL TO EQUIPMENT LOCATION
Town of Lost Gatos See Attachment A
PO Box 655
Los Gatos,CA 95031
Key Operator Phone
Billing Contact Gitta Ungvari Email
Email gungvariPIosgatosca.Rov Meter Contact Preference: Fax Number:
Phone/Fax (408)354-6805 Equip❑ Fleet view ❑ Fax ❑ Email a
MAINTENANC 11 k S:
Contract Start Date:' December 1, 2024 Contract End Date: November 30, 2029
This contract covers the below equipment and includes the following when box is checked:
Labor a Parts a 4 Hour Avg. Response a Drum Units Firmware Upgrades o
Black Toner a Blk. Developep Loaner Unit if Needed a Fuser Unitu IT Support"" o
Color Toner a Clr. Developeia Preventative Maintenance a Transfer Unity' External Fiery Controller** o
Other:
Paper,staples and equipment moves are not included in contract,unless specifically listed above. There will be a nominal shipping fee assessed on contract invoices for
supply delivery fees. MBS guarantees and average 4 hour response time during normal business hours,Monday-Friday,8AM to 5PM,holidays excluded.
Toner usage will be monitored and may be limited to 125%of the manufacturers'guaranteed image yields.
**IT Support and/or External Fiery Controller is included only if Value-Added Support and/or Fiery Support options below are purchased.
- MONTHLY BASE BILLING FEE OVERAGE COST PER IMAGE: Aillim_ I
TYPE Mo. Fee Included TYPE Cost Per Image/Scan
See Attachment A See Attachment A See Attachment A
Base Billed in Advance: ❑ Monthly o Quarterly
ADDITIONAL COVERAGE OPTIONS:
Value-added IT Support(for connected devices): $40.00 per month,billed with BW Base Yes ❑ No a
Value-added IT(VIT)support includes unlimited on-site,as well as telephone help-desk support during normal business hours for IT service relating directly to the device(s)below.VIT support includes
diagnosis and repair of printing and/or scanning issues associated with the device(s)below. VIT also include re-installation of print drivers,addition of new scan users,etc.as needed.VIT support does not
cover IT support for other devices not included on this contract,support for software not purchased from MBS or support required as a result ofchanges to the network or server to which the device is
connected. Customer is responsible for providing software licenses if software purchased from MBS requires re-installation.Minimum VIT agreement term is 1 year and is renewed automatically with the
hardware agreement at MBS then prevailing rate.VIT DOES NOT include network or IT services which are not directly connected to the device(s)listed below.
Controller Support(for Fiery or e-Copy Scan Stations): per month Yes o No a
External&internal controller fee covers repair and/or replacement of the Fiery internal OR external controller hardware and/or e-Copy scan station hardware that is
external to the MFP device. This fee will be billed with the contract base.
EQUIPMENT:
Color Start
Make/Model Serial Number MI. D Number B/W Start Meter Meter
See Attachment A
MAINTENANCE AGREEMENT ACCEPTANCE: Initial Below
I have read and agree to the terms&conditions outlined above and on page two(2)of this maintenance agreement and choose to purchase the
agreement at this time. I understand that this agreement is automatically renewed annually at the end of the contract term at MBS'then prevailing
rates. This contract may be canceled by either party,with 30 days written notice.
I decline this maintenance agreement and understand that all future service calls will be chargeable. Fees will be based upon MBS'current hourly
labor rate plus applicable travel time. Parts and supplies will be available at the manufacturer's suggested retail pricing. Guaranteed priority 4 hour
average service response time is not available for equipment not under maintenance agreement.
CUSTOMER ACCEPTANCE MBS ACCEPTANCE
Authorized Signature Print Name Date Signature Date
Page 71 325 Victor St.Ste.A,Salinas, CA 93907 P 831.758.1048 F 831.758.5984
1700 Wyatt Ave. Suite 3, Santa Clara, CA 95054 P 408.727.4627 F 408.727.4628
MBS Business Systems Terms and Conditions
1.References made to"MBS"shall mean Monterey Bay Systems or MBS Business Systems.Machines sold by MBS are eligible for a service contract /TEM NO. 6.
immediately upon the delivery of the equipment. If service contract is requested at any other time,machine must first be inspected by MBS.Customer st
bear any and all costs necessary to bring machine up to specifications.Machines not sold initially by MBS which are accepted for a service contract after
inspection are not covered for parts the first 60 days.
2.This is an annual contract that will automatically renew yearly after the initial period unless cancelled by customer by written notice at least thirty(30)days
prior to anniversary date.Said automatic renewal is to provide uninterrupted coverage to customer.This contract may increase in cost annually to adjust with
equipment age and/or change in consumable/parts pricing. This Agreement shall not be assignable or transferable by Customerwithout MBS's prior written
consent.MBS may terminate this Agreement if Equipment is sold or transferred to a third party,and upon either event all remaining payments shall become
immediately due and owing. Equipment may not be relocated without the prior written approval of MBS.
3.The pricing of this Agreement is based upon a single sided,8.5"X 11"images and/or a single sided,8.5"X14". 11X17 images and/or 8.5X11 two-sided
images will be counted as two images.In the event of early termination by the Customer,all remaining charges shall become immediately due and owing.
Customer shall pay all applicable sales tax,installation and freight charges.If Customer fails to make any payment when due,Customer agrees to pay MBS
interest at the rate of one and one-half percent(1.5%)per month or the maximum interest rate permitted by law,whichever is less on any such overdue or
outstanding balances. Customer shall pay a$35.00 service charge on any and all returned checks.
4.This Agreement does not cover IT support beyond the specific equipment and included hardware listed on the front of this Agreement,unless the Value-
added IT Support YES box is checked on the front of this document. All network support beyond the initial installation and/or scope of the Value-added IT
Support(if checked)will be chargeable at MBS's standard time and materials rates,unless covered by a separate network support agreement.
5.All required preventive maintenance and emergency service necessary to keep the Equipment in efficient operating order will be performed by MBS
during its regular business hours(8:00 a.m.-5:00 p.m.,Monday through Friday,except holidays).
6.MBS will replace without charge,parts which have been broken or worn through normal use and are necessary to machine servicing and maintenance
adjustments,including consumables (as indicated on front of this agreement)such as toner,developer,drums and fuser rollers within the limits of their
suggested yield.(Paper and Staples are excluded).Additional toner requested beyond 125%of manufacturer's average yield specifications is subject to
additional charges.
7.Customer will be responsible for the daily care and cleaning of the top glass,dusting equipment,replenishing toner,clearing obvious paper jams,and
reporting meter reads. It is the customer's responsibility to provide a key operator who shall be responsible for normal operator functions listed above.In
addition,it is the customer's responsibility to provide MBS with meter readings as needed. If current meter reading is not submitted after repeated requests,
MBS will use an estimated meter reading based on service history for billing period. Customer agrees that MBS will not be held accountable to make
adjustments,repairs or replacements if MBS is not provided reasonable access to the equipment. Service calls for normal operator functions(adding or
changing supplies,removing misfeeds,cleaning glass,etc.)will be subject to a time and material service charge at MBS's then current rate. Additional
chargeable services include but are not limited to:
a)Repairs resulting from causes other than normal use:Customer's willful act;negligence or misuse;Customer's use of suppl ies(including paper)
or spare parts which do not meet published specifications and which cause abnormally frequent service calls or service proble ms;accident,failure
or variances of electrical power;failure to provide air conditioning,heat or humidity control as required;abuse,theft,fi re,water,or any other
damage resulting from uncontrollable causes. MBS will make every effort to inform Customer of potential proplem prior to resorting to a
chargeable service call.
b)Subsequent repairs made when personnel other than those of MBS or its assigned Servicing Dealer perform service.
c)Transportation and relocation-repairs resulting from unauthorized relocation of equipment by anyone other than MBS.
d)Work which Customer requests to be performed outside regular business hours.
8.When in MBS's opinion the Equipment becomes of advanced age or usage exceeds manufacturer's specifications,and cannot be maintained in good
working order through MBS's routine preventive maintenance service,or if work beyond the scope of this Agreement is required,MBS shall submit to
Customer a cost estimate of such work.If Customer declines to authorize the same,MBS shall have the right,on ten(10)days written notice to Customer,to
terminate service under this Agreement as to any or all items of Equipment. Removed parts replaced by MBS shall become property of MBS. MBS shall
have full and free access to the equipment to provide service thereon.Neither MBS nor an assigned Servicing Dealer shall be responsible for any delays in
servicing the Equipment due to the inability or delay in obtaining a necessary part or supply.
9.MBS assumes no liability for operator error or damage caused by customer.
10.MBS's obligations and warranties under this agreement are in lieu of(A)all other warranties,expressed or implied,including implied warranties of
merchantability and fitness for a particular purpose,which are specifically waived and(B)all other obligations or liablities for damages including,but not
limited to:1)personal injury or property damage,or 2)loss of profit or other consequential damages arising out of or in connection with this agreement or the
maintenance service caused directly or indirectly my strikes,accidents,climatic conditions,or reason of similar nature beyond its control. Customer agrees
that if MBS caused any injury or damage to customer or customer's property,which said claim is not otherwise waived herein,customer agrees that the
maximum amount that MBS shall have to pay customer for said injury or damage is an amount equal to the services rendered to the customer that caused
said injury or damage.
11.This Agreement constitutes the entire Agreement between the parties with respect to the furnishing of maintenance service superseding all previous
proposals,oral or written.
12.MBS reserves the right to withhold service and product if Customer fails to make any payment due under the terms and conditions of this Agreement. If
Customer fails to make any payment when due under the terms and conditions of this Agreement as set forth above or otherwise is in default of the terms
and conditions of this Agreement,Customer agrees that all payments due under said Agreement shall be accelerated and Customer shall be liable for all
payments due under the full term of this Agreement that are unpaid or the reasonable cost of all services completed by MBS for the benefit of Customer,
whichever is greater.If Customer breaches any term or condition of this Agreement,Customer agrees to reimburse MBS for all attorney fees and costs MBS
expends to enforce the terms and conditions of this Agreement against Customer. Further,this Agreement shall be interpreted exclusively under the laws of
the State of California.
Page 72 325 Victor St.Ste.A,Salinas, CA 93907 P 831.758.1048 F 831.758.5984
1700 Wyatt Ave. Suite 3, Santa Clara, CA 95054 P 408.727.4627 F 408.727.4628
ITEM NO. 6.
MMI Town of Los Gatos MBS Maintenance Agreement and Equipment Enhancement Contract Overview
MBS MBit
Business Systems Managed IT
Maintenance Maintenance Agreement Net 30 Proposed Proposed Proposed Proposed Equipment Age Proposed Net 30
60-month$1 Out Equipment Equipment Equipment at Equipment
Timeline Agreement Renewal with Proposed Equipment Equipment Price Pre-
Lease Enhancements Enhancements Enhancements Enhancement Enhancements
ONLY Enhancements Expense TOTAL tax
Deparment ID Current Model (Years) New Model
YEAR 1 2024-25 833,349-83 $28,156.82 $48,615.55 $13,196.40 Down Finance 13954 BH4700p 11 BH4701i $895.00
$1,078.73 Salcs Tax $911.58 Sales Tax $4,496.94 Sales Tax CDD Admin. 15543 BH4700p 11 BH4701i $895.00
$34,390.CG $29,068.40 TOTAL $53,112.49 TOTAL Finance AP 15545 BH4700p 11 BH4701i $895.00
Finance Payroll 15546 BH4700p 11 BH4701i $895.00
$5,330.26 Finance Director 15556 BH4700p 11 BH4701i $895.00
Savings from MA ONLY PPW Sign Shop 16597 C3351 2 C3351i $2,495.90
Including Sales Tax PD Emerg.Ops. 17405 C3851 6 BH4701i $895.00
PPW 17408 C308 6 C301i $5,739.90
H.R. 17415 C308 6 C3351i $2,814.65
PD HQ Admin. 17426 C658 6 C551i $10,787.00
CC Back/Plan 17432 C458 6 C551i $9,883.00
Library Admin. 17461 C3100 6 C4000i $1,030.10
PPW 17481 C659 6 C551i $10,495.00
YEAR 22025-26 NIA $25,477.31 $37,413.55 $24,578.52 Civ.Ctr.Down 14503 BH4700p 12 BH4701i $895.00
$824.83 Sales Tax $3,460.75 Sales Tax Down CDD 15544 BH4700p 12 BH4701i $895.00
$26,302.14 TOTAL $40,874.30 TOTAL Down CDD Penn. 15553 BH4700p 12 BH4701i $895.00
PPW Outback 17403 C3851 9 C3351i $2,360.00
$2,766.26 Clerk 17410 C3851 7 C3351i $2,360.00
Savings from Year 1 PD Ops.Reports 17419 C308 7 C301i $4,969.00
Including Sales Tax PD Detectives 17421 C308 7 C301i $5,330.00
$8,096.52 Civ.Ctr.Manager 17429 C458 7 C451i $9,408.00
Savings from MA ONLY Year 1 Library w/Coin Op 17447 C287 7 C3351i $4,445.55
Including Sales Tax Library w/Coin Op 17460 C287 7 C251i $5,856.00
YEAR 32026-27 NIA $23,468.03 $34,297.00 $36,145.32 Civ.Ctr.CDD Hall 15542 BH4700p 13 BH4701i $895.00
$759.78 Sales Tax $3,172.47 Sales Tax PD Sergeant 15548 BH4700p 13 BH4701i $895.00
$24,227.81 TOTAL $37,469.47 TOTAL PD Admin. 15549 BH4700p 13 BH4701i $895.00
PD Evidence 15552 BH4700p 13 BH4701i $895.00
PD Captain 15554 BH4700p 13 BH4701i $895.00
$2,074.33 Civic Center 15775 BH4700p 11 BH4701i $895.00
Savings from Year 2 Civ.Ctr.Attorney 17221 BH 4750 4 BH 4751i $2,411.00
Including Sales Tax PD Downstairs 17411 C308 8 C301i $5,330.00
Library Staff 17417 C308 8 C301i $4,559.00
$10,170.85 Civ.Ctr.Copy Roorr 17435 BH808 8 BH850i $14,062.00
Savings from MA ONLY Year 1 PPW White H ouse 17965 C3300i 6 C4000i $835.00
Including Sales Tax PD HQ 18172 C3300i 6 C4000i $835.00
PD HQ 18340 BH4702p 6 BH4701i $895.00
Total $120,326.10
YEAR 4 2027-28 $23,468.03 $36,145.32 Sales Tax $11,130.16
MA ONLY for Year 4 $759.78 Sales Tax (total by year)
$24,227.81 TOTAL
YEAR 5 2028-29 $24,464.98 $36,145.82
MA ONLY for Year 5 $792.05 Sales Tax
$25,257.03 TOTAL
TOTAL Maintenance Agreement for 5 Years Best Estimate. l TOTAL 5131,456.26
Includes Sales Tax Includes Sales Tax
Standards to Apply When Calculating Maintenance Agreement Rates(CPC's) Example
Equipment Age Years 1-3 No increase New C301i Year 1-3 Year 4 Year 5 Year 6 Year 7
Equipment Age Years 4-5 7%increase annually BIW CPC $0.0058 $0.0062 $0.0067 $0.0079 $0.0093
Equipment Age Years 6-7 15%increase annually Color CPC $0.0450 $0.0484 $0.0520 $0.0612 $0.0720
Equipment Age Years 8+* 30%increase annually
*if still supported by manufacturer Year 8
$0.0133
$0.1029
Page 73
MBS Business iTEMNO. 6.
325 Victor St. Suite A
Salinas, CA 93907
P 831.758.1048/800.848.7575
F 831.758.5984
MBit Managed
M BF'dl
S MBit
365 Victor St. Suite A
Salinas, CA 93907
Business Systems Managed IT P 831.975-5102
www.mbsworks.com
Regular and Preventative Maintenance and Supplies
MBS service contracts include all parts, labor, preventative maintenance services, and consumables(with the exception of
paper and staples). MBS will work directly with the Town to establish a process of Service Report review on a six-month
basis, or as needed pending any unexpected service situations.
Service Requirements
We guarantee an average 4-hour service response time during business hours. MBS commits to providing preventative and
remedial maintenance service during the Town's operating business hours and performing preventative care of equipment
as determined by the manufacturer.Additional, remedial maintenance may be requested by the Town on an as needed
basis. All Service is performed by fully factory trained technicians and adequate inventory of parts is an MBS standard
operating practice for all customers.
Customer Support Services
MBS has a reputation for consistent and excellent customer service. Our recently improved portal on our website allows for
ease in meeting all needs associated with equipment support. Requests for service and supplies, as well as the ability to
pay invoices directly in the service portal elevates ease and productivity. The Town may also request updates on
outstanding service calls through the portal. Additionally, we have a local team of staff that answer calls directly, and our
experienced employees are empowered to work with you to simplify administrative processes as much as possible.
Further,the Town's Account Manager, Michelle Brill, will work closely with the Town's Leadership Team as well as end
users to establish and implement efficiency and effectiveness in daily operations, short-and long-term planning, and
budget/cost analysis. All Town employees may also request training, reviews, or special project assistance and education at
any time from the MBS Customer Support Team.
Loaner
MBS will provide a comparable loaner unit if we are unable to repair a device within 48 hours(two business days). If an
aged device(6 years or older) is unable to be repaired because of obsolete status, MBS will leave the service loaner for 30
days while a decision is made for its replacement. The service loaner will be billed at the same maintenance rate as the
machine it is replacing during this period.
Response Time
MBS is committed to a swift response and solution-oriented outcomes with Service. Our company and employees recognize
the importance of minimizing downtime for the Town of Los Gatos staff.We adhere to our average 4-hour response time
during business hours. MBS will provide service credit at$50.00 per hour should there ever be a failure to respond as
required.
Technology & IT Managed
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