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DATE:
TO:
FROM:
COUNCIL AGENDA REPORT
September 26, 2013
MAYOR AND TOWN COUNCIL
GREG LARSON, TOWN MANAGER
MEETING DATE: 10/07/13
ITEM NO: f-L
SUBJECT: AUTHORIZE THE TOWN MANAGER TO ENTER INTO AN AGREEMENT
WITH MBS BUSINESS SYSTEMS (MBS) TO PROVIDE LEASE AND
MAINTENANCE SERVICES FOR COPIERS AND PRINTERS WITHIN THE
TOWN OF LOS GATOS AND US BANK FOR THE LEASE PURCHASE
AGREEMENT FOR THE EQUIPMENT
RECOMMENDATION:
Authorize the Town Manager to enter into an agreement with MBS Business Systems to provide
lease and maintenance services for copiers and printers within the Town of Los Gatos and US
Bank for the lease purchase agreement for the equipment.
BACKGROUND:
In 2008 the Town entered into its first lease and maintenance agreement for the Town's copiers
and printers. This was a five year agreement, expiring earlier this year. Staff issued a Request
For Proposal (RFP) earlier this year and assembled a group of employees to serve on the
evaluation team to review the proposals, presentations and make a final vendor recommendation
to the Town Manager.
DISCUSSION:
In April 2013 staff issued an RFP requesting proposals for a qualified contractor to provide
printer and copier replacement, maintenance and management services with the following
objectives in mind:
1. Create and implement an optimization and standardization roadmap for the Town's
copiers, printers, faxes and scanners
2. Reduce the Town's total cost of ownership
3. Improve customer service
4. Reduce environmental impact
5. Evaluate and recommend document flow ' ro ements
6. Minimize downtime and maintenance S.
PREPARED BY: Stephen D. Conway, Dir to an Administrative Services
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Reviewed by: Assistant Town Manager
Town Attorney __Finance
N WINANCE \council \council staff reports \Copier and Printers \10-7 Printer Copier Management and Maintenance Staff Report. doex
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: AUTHORIZE THE TOWN MANAGER TO ENTER INTO AN AGREEMENT
WITH MBS BUSINESS SYSTEMS (MBS) TO PROVIDE LEASE AND
MAINTENANCE SERVICES FOR COPIERS AND PRINTERS WITHIN THE
TOWN OF LOS GATOS AND US BANK FOR THE LEASE PURCHASE
AGREEMENT FOR THE EQUIPMENT
September 30, 2013
Seven proposals were received. After a two- tiered evaluation of the proposals three vendors
were asked by the evaluation panel to return for a final review and presentation to the team. In
addition, staff requested that each of the three finalists bring a demo machine on site to Town
Hall for staff to use for a two day period to test the quality, clarity and speed of the proposed
equipment.
MBS was selected based on the following factors:
• Cost in the medium range but still reducing current costs by approximately 20%
• Providing generally faster, more durable, and more problem -free Konica Minolta
printers and color copiers
• Vendor was the most responsive and understanding of our needs. Ranked very high
during interviews.
• Demo copier was quick and produced clear and crisp copiers.
• Mobile printing options
• Excellent references from existing municipal government customers
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 contract with
MBS to replace all networked printers, copiers and multifunctional devices with new Konica
Minolta equipment.
The benefits of this lease agreement are as follows:
• State and Local Government Lease - Purchase Agreement for a 60 -month period. The
maintenance agreement is also for a 60 -month period
• Faster machines with faster output and warm -up time
• Machines that have less downtime and less print quality problems that our existing fleet.
• All machines have a smaller carbon footprint, made from recycled materials, including
the Simitri Toner which uses more plant -based resources thereby reducing the amount of
petroleum -based resources used.
• Low cost printing
• MBS will maintain and provide toner supplies for the entire fleet of copiers and printers
• Customizable reports for meter reading and printing usage
• Mobile printing options to allow users to print from phones and tablets
PAGE
MAYOR AND TOWN COUNCIL
SUBJECT: AUTHORIZE THE TOWN MANAGER TO ENTER INTO AN AGREEMENT
WITH MBS BUSINESS SYSTEMS (MBS) TO PROVIDE LEASE AND
MAINTENANCE SERVICES FOR COPIERS AND PRINTERS WITHIN THE
TOWN OF LOS GATOS AND US BANK FOR THE LEASE PURCHASE
AGREEMENT FOR THE EQUIPMENT
September 30, 2013
The benefits of the State and Local Government Lease - Purchase Agreement, as was previously
done by the Town in 2008, remain as follows:
• Consolidated printer, copiers and faxes
® Tax - exempt lease purchase agreement
• Lower up -front cost to the Town as lease payments are spread -out over the course of the
60 month contract
The contract provides for a flat monthly lease and maintenance fee with a 75,000 copies per
month allowance. In addition, the Town will be charged a flat cost per copy for additional
copies over the 75,000 minimum. The fees are flat and will not change over the course of the
five years. We anticipate the new agreement with MBS to result in a net savings of
approximately $20,000 per year, or over the course of the five year contract approximately
$100,000.
CONCLUSION:
Staff believes that MBS has the experience and capacity to provide lease and maintenance
services for the Town's copiers and printers. Staff therefore recommends that the Town Council
authorize the Town Manager to enter into an agreement with MBS Business Systems to provide
lease and maintenance services for Copiers and printers within the Town of Los Gatos.
FISCAL IMPACT:
The lease and maintenance agreements are paid from the Stores Fund. For Fiscal Year 2013/14,
$85,000 is budgeted for the copiers and printers. There is sufficient money available in this fund
to cover the cost of the new lease for the remainder of the fiscal year. In the out years there will
be no increased fiscal impact resulting from this agreement; to the contrary, staff forecasts a net
savings to the Town of approximately $20,000 per year.
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