1d. Award of Bid, Copiers0
CITY OF
CBANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
7901 Park Place
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
MEMORANDUM
TO: Mayor & City Council
FROM: Greg Sticha, Finance Director 4�15
DATE: April 22, 2013 d ,
SUBJ: Award of Bid, Purchase of City Hall Copiers
91
PROPOSED MOTION:
The City Council awards the bid for the purchase of three copiers from Marco
Sales in the total amount of $ '15,964.68.
Approval requires a simple majority vote of the City Council.
BACKGROUND
In the 2013 -2017 CIP, copier purchases are suggested for each of the next three
years= in administration and the building and engineering departments. 'The
copiers in administration and building are ten and thirteen years old,
respectively. Both machines break down consistently, requiring service calls
and causing staff downtime tbat has led to large periods of inefficiency. ir,
addition. the service company bas indicated that they can no longer find
replacement parts, meaning tbat if a significapt component breaks on either of
these copiers, we would no longer have that collier for use. The engineerin`
copier is eight years old and breaks down as often as the older copiers, whicb
has caused the engineering staff to become greatly inefficient at key times.
Staff believes there is tremendous need for replacement of these three copiers.
In early '%013, staff began the process of defining copying needs and finding
suitable mplacements for all three. The first step in the process was to define ;1c
e:, ,pying needs of each department and tad a product that could meet those.
reeds.
Admirrisrr,tion needs a mid- range, light production copier to create booklets,
flyers, and agenda packets. The cw machine only copies in black and white
and all color oopi.es are printed on a nzor : eypensive laser printor and i:ben hand
collated int > do,(- .:rrm,nts. "she nco-posed machine has color, booklet printing. and
so is fi );ding copabiiiti :s. which will not only increase productivity, but also
allow l'or iobs that arc currently being sent out to be completed in- hOL!.se.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Mayor & City Council
April 22, 2013
Page 2
Both the engineering and building copiers are primarily used to produce copies
for customers conducting business at their respective service counters. The two
copiers are configured identically as the two departments regularly share devices
when one is in use. The engineering department also uses the copier to produce
bid spec books, project files, map books, and plans. The building copier is used
to produce building plans, surveys, and applications. It is also used by law
enforcement staff on a 24 -hour basis.
One of staff's goals was to purchase all three copiers from one service provider
and the same manufacturer. Staff believes this will improve efficiency because
each machine will have the same user interface and service technicians, and
could also lead to more aggressive quotes/bids from service providers.
After visiting multiple service providers and testing multiple copiers, staff
narrowed down their manufacturer choice to Konica. Specifically, staff
identified the Konica C754 for administration and the Konica C454 for building
and engineering. The copier selected for each department was based on current
needs, future needs, and reliability.
Once the product was identified, staff received bids from providers of the
Konica products. Attached are the bids received from three providers, including
Metro Sales, Marco Sales, and the Konica Minolta distributor. All three bidders
included both outright purchase and leasing prices.
Next staff reviewed whether leasing or purchasing was the best option for the
city. After reviewing the bids, it was clear that the low cost provider, whether
purchased or leased, was Marco Sales. Staff reviewed the purchase price from
Marco for each copier type and compared it to the total lease payments over a
five -year term. The cost savings to purchase over leasing was $2,500 for the
C754 and about $1,700 for the C454.
After combining the total purchase cost, plus monthly maintenance costs, the
overall low bidder was Marco Sales. Staff also evaluated all three bidders on
customer service and contacted multiple local government references for each.
For all three providers the reference checks proved relatively fantastic reviews
and little or no distinguishable differences between the providers in terms of
customer service.
Therefore staff recommends accepting the bid from the overall low bidder,
Marco Sales.
COST BENEFIT ANALYSIS
Staff also analyzed the current maintenance costs versus the future maintenance
costs of the newly purchased copiers. Currently the city pays $1,700 /month for
maintenance on the three copiers. The amount of the maintenance costs on each
machine is due to the age of the copiers. The recommended new copiers would
fAgregs \counci1\2013 \award of bid copiers 4- 22.docx
Mayor & City Council
April 22, 2013
Page 3
come with monthly maintenance costs of about $1,000 /month; thus saving
approximately $8,400 /year in maintenance costs. Over the five -year term of the
service contract, a savings of $42,000 would be realized. With the total cost of
purchasing the copiers at $36,000, the maintenance savings will pay for the
purchase of the copiers in 4'/2 years. The $8,400 per year in maintenance cost
savings will result in a reduction in this year's budget of $5,600 and $8,400 in
the general fund for the 2014 budget and beyond.
RECOMMENDATION
Staff recommends that the City Council award the bid for the purchase of three
copiers from Marco Sales in the total amount of $35,964.68.
ATTACHMENTS
1. Cost Comparisons
2. Purchase Agreement with Marco
3. Maintenance Agreement with Marco
f\gregs \counci1\2013 \award of bid copiers 4- 22.docx
4/15/2013
Model
Marco
Metro
Konica
Konica C754
$
18,238.68
$
22,910.00
$
20,379.88
LiUg
Konica C454
$
8,863.00
$
11,621.00
$
8,867.42
En,z
Konica C454
$
8,863.00
$
11,621.00
$
8,867.42
Total Purchase Price
$
35,964.68
$
46,152.00
$
38,114.72
Admin Proj Maint Cost
$
405.00
$
470.00
$
391.00
Eng Proj Maint Cost
$
113.00
$
135.50
$
114.90
Bldg P.roj Maint Cost
$
287.86
$
343.50
$
310.88
Total Montlhy Maint Cost
$
805.86
$
949.00
$
816.78
Total Annual Maint Cost
$
9,670.32
$
11,388.00
$
9,801.36
4/15/2013
Owner:
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Purchase Agreement
CUSTOMER PO
2 Konica Minolta C454 $8,863.00 $17,726.00
-..- - ......... ... . ............................ .. ....... . .. ....... ........... ... ... ...
- 2 DF-701, Single Pass Dual Scan Document Feeder
2 PC -410, Large Capacity Cassette
. ...... ...... ........ . . ... ...................... ................. ......................... ........................ ................................ . . .. . ........ .
- 2 FS-634, Floor Finisher
2 FK-51 1, Fax Kit
Subtotal $35,964,68
Freight
Installation
MN State Tax or Exempt $2,472.59
PURCHASESUMMARY $38,437.27
...... . . .. .............. ........................................ . ... . ............ AM- .. .................
Customer; City Of Chanhassen
Page 1 of 1 DOC: Purchase
Qty Make/Model Price (each) Seil Price
mq
4510 heatherwood road; p.o. box 250
st. cloud mn 56302 -0250
Meter Reading Contact Person
(provide email address and name):
PO NO. CONTRACT NO
Equipment Maintenance Agreement
The words you and your refer to you or the customer. The words we, us and our refer to Marco, Inc. Every attempt has been made to eliminate confusing language
and create a simple, easy -to -read document.
Make /Model /Accessories Serial # Starting Meter - BW Starting Meter - Color
1. Konica Minolta C754
2. Konica Minolta C454
3. Konica Minolta C454
4.
5.
6.
7.
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9.
10.
CUS T OMER • '
•
BILL TO NAME
Minimum # 1 000
STREET ADDRESS
City of Chanhassen
of Prints - Color
7700 Market Boulevard
CITY
STATE
ZIP PHONE FAX
Chanhassen
MN
55317 952 - 227 -1100
EQUIPMENT LOCATION (IF DIFFERENT FROM ABOVE)
ACCT #
SALES PERSON #
CONTACT PERSON
C01120
JA0001
E QUIPMENT
• -,
Make /Model /Accessories Serial # Starting Meter - BW Starting Meter - Color
1. Konica Minolta C754
2. Konica Minolta C454
3. Konica Minolta C454
4.
5.
6.
7.
8.
9.
10.
E QUIPMENT . . AGREEMENT
PA YMENT
Cost Per Payment
OR
Minimum # 1 000
Excess Print $,039
Print - Color* Amount
of Prints - Color
Charge - Color*
Cost Per OR Payment
$670.00 Minimum # 40 ��O
Excess Print $ 007
Print - B &W* Amount
of Prints - B &W
Charge - B &W*
Amounts are monthly unless indicated otherwise.
You acknowledge that the equipment you have may be equipped with a hard drive that may store personal and confidential information ('PCI') and you understand the privacy and information security risks associated with PCI that may be stored on your
Equipment. You agree to be responsible for safeguarding any PCI and you agree to indemnify and hold Marco harmless from an loss, missa ro nation or breach of the PCI that ma be stored on our E ui merit.
X
Page 1 of 2
Term in Years 3 Start Date * plus applicable taxes
SUPPLIES COVERAGE LEVEL Please Check One: 0 All Inclus ❑ B &W Inclusive ❑ No Supplies Included (If not checked, no supplies will be included.)
C ONTRACT 1/ OVERAGE BILLING PERIOD
Please Check One: ® Monthly ❑ Quarterly ❑ Semi Annually ❑ Annually Please Check One ❑Monthly ®Quarterly ❑Semi Annually ❑ Annually
THIS IS A NONCANCELABLE I IRREVOCABLE AGREEMENT, THIS AGREEMENT CANNOT BE CANCELED OR TERMINATED.
by providing a telephone number for a cellular phone or other careless device, you are expressly consenting to receiving communications (for NON - marketing or solicitation purposes) at that number, including, but not limited to, prerecorded or artificial voice
message calls, text messages, and calls made by an automatic telephone dialing system from Owner and its affiliates and agents. This Express Consent applies to each such telephone number that you provide to us now or in the future and permits such
calls. These calls and messages may incur amen fees from your cellular provider. By signing below you acknowledge, accept, and agree to the terms and conditions listed on this page and page two of this Agreement and confirm that you have the authority
to enter into this agreement on behalf of our Customer.
1. AGREEMENT: Marco agrees to provide maintenance on the equipment specified in this Agreement at the address specified. You agree to all of the terms and conditions contained in this
Agreement and any schedule incorporating the terms of this Agreement by reference which together are a complete statement of our Agreement regarding the listed Equipment ( "Agreement "). This
Agreement may be modified only by written agreement and not by course of performance. This Agreement will begin on the start date and will continue from that day for the number of consecutive
years shown. The term will be extended automatically for successive 12 month periods unless you send us written notice, no less than 30 days before the end of any term of your intent to cancel.
Marco may also cancel this agreement at any time subject to a 30 day notice. If any provision of this Agreement is declared unenforceable in any jurisdiction, the other provisions herein shall remain
in full force and effect in that jurisdiction and all others. You agree to provide updated annual and /or quarterly financial statements to us upon request.
2. PAYMENTS: Payments are required to be made based on the frequency indicated on the front of this Agreement and based on the rates currently in effect plus any applicable sales tax, use tax, or
property tax. We will have the right to apply all sums, received from you, to any amounts due and owed to us under the terms of this Agreement. Marco reserves the right to delay or hold service if
your account with us is delinquent. Marco may also cancel this agreement at any time subject to a 30 day notice. If for any reason, your check is returned for nonpayment, a NSF charge will be
assessed.
3. MAINTENANCE AND SUPPLIES: The charges established by this Agreement include payment for maintenance and travel charges during normal business hours (8:00 a.m. — 5:00 p.m. Monday
through Friday); inspection, adjustment, parts replacement (worn or broken through normal use), drums and cleaning material required for the proper operation. All service calls will be responded to
by factory authorized technicians within eight working hours of the time a call is placed. Parts or labor for repairs made necessary by accident, negligence, theft, vandalism, lightning, loss of power or
current fluctuation, fire, water or other casualty, repairs made necessary by service performed by personnel other than those of Marco, are excluded from this agreement. Service performed at the
specific request of the customer which commences outside normal working hours or extends more than one hour past the close of the normal work day will be charged at published rates for labor and
expense but without charge for parts covered by this Agreement. Paper, staples and MICR cartridges must be separately purchased by you. Device network support on connected Equipment is not
included and will be billable at the current hourly rate, at your expense. Changes to your network including but not limited to different or upgraded network operating systems that require reconfiguring
your imager are not included in this agreement. Supplies for units may or may not be included in this Agreement. If necessary, the service and supply portion of this Agreement may be assigned.
This agreement is based on the industry standard and the manufacturer estimated yield for black toner and developer is based on an average per page coverage of 6% and for color toner and
developer is based on an average per page coverage of 20 %. In the event that your black loner and developer exceeds the 6% per page coverage standard and /or your color toner and developer
exceeds the 20% per page coverage, Marco, Inc. in its sole discretion reserves the right to amend this contract in order to adjust for any increased toner and developer usage in excess of the industry
standard. Toner, developer and /or drums for facsimiles are not covered by this agreement. We may charge you a monthly Supply Freight Fee to help offset our costs of delivering supplies to you.
Should any of the equipment included in this Agreement be traded in for a new device from Marco during the life of this Agreement, the unused balance of copies on the old equipment will be prorated
and allocated toward maintenance of the new machine(s).
4. OWNERSHIP OF EQUIPMENT: You are the owner of the Equipment and have sole tifle to the Equipment listed on this agreement.
5. WARRANTIES: WE MAKE NO WARRANTY EXPRESS OR IMPLIED, INCLUDING THAT THE EQUIPMENT IS FIT FOR A PARTICULAR PURPOSE. YOU AGREE THAT YOU HAVE
SELECTED EACH ITEM OF EQUIPMENT BASED UPON YOUR OWN JUDGMENT AND DISCLAIM ANY RELIANCE UPON ANY STATEMENTS OR REPRESENTATIONS MADE BY US. Not
withstanding any other terms and conditions of the Agreement, you agree that as to software only: a) We have not had, do not have, nor will have any title to such software, b) You have executed or
will execute a separate software license agreement and we are not a party to and have no responsibilities whatsoever in regard to such license agreement, c) You have selected such software and
WE MAKE NO WARRANTIES OF MERCHANTABILITY, DATA ACCURACY, SYSTEM INTEGRATION OR FITNESS FOR USE AND TAKE ABSOLUTELY NO RESPONSIBILITY FOR THE
FUNCTION OR NATURE OF SUCH SOFTWARE.
6. LOCATION OF EQUIPMENT: You will keep and use the Equipment the address shown above and you agree to notify us of any movement of equipment covered under this Agreement.
7. INDEMNITY: We are not responsible for any loss or injuries caused by the installation or use of the Equipment. You agree to hold us harmless and reimburse us for loss and to defend us against
any claim for losses or injury caused by the Equipment.
8. LIMITATION OF LIABILITY: In no event shall Marco be liable for any damages caused by the customer's failure to perform customer's responsibilities under this contract. Marco will not be
responsible to customers for any lost profits or consequential damages, even if Marco has been advised of the possibility of such damages. Marco will perform repairs consistent with usual and
customary practices in the industry. In the event the customers established that Marco failed to make repairs consistent with this standard, customer's sole remedy shall be limited to a refund of
amounts paid to Marco for the repairs; in no event shall the amount of any refund exceed the damages actually incurred by the customer. Marco's liability in regards to parts supplied shall be limited
to any warranty expressly agreed to in a purchase agreement for such parts or supplies. There shall be no warranty for parts or supplies unless a purchase agreement is executed in writing and the
purchase agreement explicitly provides such warranty. Marco will not be held responsible for any damage to software or customer information.
9. TAXES AND FEES: You agree to pay when due all taxes (including personal property tax, fines and penalties) and fees relating to this Agreement or the Equipment. If we pay any of the above for
you, you agree to reimburse us and to pay us a processing fee for each payment we make on your behalf. We reserve the right to charge a fee upon termination of this Agreement either by trade -up,
buy -out or default. Any fee charged under this Agreement may include a profit and is subject to applicable taxes.
10. ASSIGNMENT: YOU HAVE NO RIGHT TO SELL, TRANSFER, ASSIGN OR SUBLEASE THE EQUIPMENT OR THIS AGREEMENT. We may sell, assign, or transfer this Agreement without
notice. You agree that if we sell, assign, or transfer this Agreement, the new owner will have the same rights and benefits that we have now and will not have to perform any of our obligations. You
agree that the rights of the new owner will not be subject to any claims, defenses, or set offs that you may have against us.
11. DEFAULT AND REMEDIES: If you do not pay any payment or other sum due to us or any other party in connection with this Agreement when due or if you break any of your promises in the
Agreement or any other Agreement with us, you will be in default. If any part of a payment is late, you agree to pay a late charge of up to 15% of the payment which is late or if less, the maximum
charge allowed by law. If you are ever in default, we can terminate or cancel this Agreement immediately and require that you pay the unpaid balance of this Agreement. We may also use any of the
remedies available to us under the Uniform Commercial Code as enacted in the State of Minnesota or its Assignee or any other law. If we refer this Agreement to an attorney for collection, you agree
to pay our reasonable attorney's fees and actual court costs. YOU AGREE THAT WE WILL NOT BE RESPONSIBLE TO PAY YOU ANY CONSEQUENTIAL OR INCIDENTAL DAMAGES FOR ANY
DEFAULT BY US UNDER THIS AGREEMENT. You agree that any delay or failure to enforce our rights under this Agreement does not prevent us from enforcing any rights at a later time. It is further
agreed that your rights and remedies are governed exclusively by this Agreement and you waive customer's rights under Article 2A (508 -522) of the UCC.
12. CONSENT TO LAW, JURISDICTION, AND VENUE: This Agreement and any schedule or supplement shall be governed by the internal laws for the State of Minnesota. IF THIS AGREEMENT IS
ASSIGNED, YOU AGREE THAT ANY DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT WILL BE ADJUDICATED IN THE FEDERAL OR STATE COURT WHERE THE
ASSIGNEE'S CORPORATE HEADQUARTERS ARE LOCATED AND WILL BE GOVERNED BY THE LAWS OF THAT STATE. YOU HEREBY CONSENT TO PERSONAL JURISDICTION AND
VENUE IN THAT COURT AND WAIVE ANY RIGHT TO TRANSFER VENUE. EACH PARTY WAIVES ANY RIGHT TO A TRIAL BY JURY.
13. OVERAGES AND COST ADJUSTMENTS: You agree to comply with any billing procedures designated by us, including notifying us of the meter reading at the end of overage billing cycle. If we
are unable to gather a meter reading from you using your preferred method of collection after 3 attempts, you will be assessed a $3 fee per device per overage billing cycle to collect your reads. At
the end of the first year of the Agreement, and with each successive period, not to exceed 12 months, we may increase the base usage charge per print and the excess print charge per print by a
maximum of 15% of the existing charge.
14. SUPPLIES LEVEL COVERAGE INFORMATION: All Inclusive is defined as all colors (cyan, magenta, yellow and black) of toners, developers, drums and drums kits are included. B &W Inclusive
is defined as only black toners, black developers, black drums and black drums kits are included. Cyan, magenta and yellow toners, developers, drums and drums kits are not included. No Supplies
Included is defined as all toners, developers, drums and drums kits being excluded.
FOR MUNICIPALITIES ONLY
15-A. CUSTOMER COVENANTS: You covenant and warrant that (1) you have, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the current budget
year to make the payments scheduled to come due and to meet its other obligations under the Agreement and such funds have not been expended for other purposes; and (2) that there is no action,
suit, proceeding or investigation pending, or threatened in any court or other tribunal or Competent jurisdiction, state or federal or before any public board or body, which in any way would (a) restrain
or enjoin the delivery of the Agreement or the ability of you to make its Payments (as set out above); (b) contest or affect the authority for the execution or delivery of, or the validity of, the Agreement;
or (c) contest the existence and powers of you; nor is there any basis for any such action, suit, proceeding or investigation; and (3) That the Equipment will be operated and controlled by you and will
be used for essential government purposes and will to be essential for the term of the Agreement.
(4) You have not previously terminated an agreement for non - appropriation, except as specifically described in a letter appended hereto.
15-B. SIGNATURES: Each signor (two if monthly payment exceeds $1,200) warrants that he /she is fully conversant with the governing relevant legal and regulatory provisions and has full power and
authorization to bind you. Signor(s) for you further warrant(s) its governing body has taken the necessary steps; including any legal bid requirements, under applicable law to arrange for acquisition of
the Equipment; the approval and execution has been in accordance with all applicable open meeting laws; and that a resolution of the governing body of you authorizing execution of the Agreement
has been duly adopted and remains in full force and effect.
15-C. NON APPROPRIATION: In the event you are in default under the Agreement because:
1. Funds are not appropriated for a fiscal period subsequent to the one in which the Agreement was entered into which are sufficient to satisfy all of your obligations under the Agreement during said
fiscal period;
2. Such non - appropriation did not result from any act or failure to act of you;
3. You have exhausted all funds legally available for all payment due under the Agreement; and
4. There is no other legal procedure by which payment can be made to Marco.
Then, provided that (a) you have given Marco written notice of the occurrence of paragraph 1 above thirty (30) days prior to such occurrence; (b) Marco has received a written opinion from your
counsel verifying the same within ten (10) days thereafter. Marco remedies for such default shall be to terminate the Agreement at the end of the fiscal period during which notice is given.
15279 - 07/20/2010 Page 2 of 2