CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the Award of Change Order #2 to Contract 15-181, Multi-Functional Copiers - Cost-Per-Copy, for Phase III to Canon Solutions America for an amount not to exceed $256,520.74, plus a 2% contingency and for a five-year term.
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DEPARTMENT: Information Technology
SUBMITTED BY: Jeff Anderson, IT Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Reprographics Division of the Information Technology Department manages the selection and placement of multi-functional copiers, which include copy, print, scan and fax capabilities. Implementing such devices and consolidating multiple single function equipment saves on individual maintenance agreements and non-inclusive supplies, along with reducing power consumption, training, various billing cycles and resources required to manage single function devices.
For the past 15 years, the City has administered a Cost-Per-Copy (CPC) program. The CPC program includes placement of new equipment, maintenance, training, parts and supplies. Similar to a rental program, the City purchases a term of service and not hardware.
The entire CPC program is implemented in four phases every five years. In September 2015, Council approved Contract 15-181 to provide for continuation of the Cost-Per-Copy Program with the award of Phase I and approval of five year terms for Phases II-IV to be awarded as the prior phases under Contract 11-117 expire.
The phases and number of corresponding replacements are as follows:
• Phase I (2015) - Placed 22 black image copiers plus color machines in the Mayor’s Office and Reprographics
• Phase II (2016) - Placed 13 black image copiers
• Phase III (2017) - Requesting 14 copiers; (12 color and 2 additional black image copiers)
• Phase IV (2018) - 9 color copiers anticipated
City Council awarded Phase I on September 15, 2015, and Phase II on April 5, 2016. Based on the acceptable level of performance, staff is returning to Council for approval of Phase III and will return with the final change order request in 2018 for Phase IV.
DISCUSSION:
Criteria for replacement of multi-functional copiers includes: evaluation of current department requirements, age, useful life and technological obsolescence.
An extension to Contract 11-117 - Phase III was approved by Council on April 18, 2017, in order to allow additional time for staff to complete contract modification negotiations and recommend an award for Phase III of Contract 15-181.
Phase III of Contract 15-181 initially consisted of replacing 12 black image machines. An opportunity was identified by staff to reduce the number of stand-alone color printers by adding color capabilities to some multi-functional copiers in Phases III and IV. Although the City will see an increase in costs for Phases III and IV, the changes will result in overall cost reductions in comparison to keeping, maintaining and replacing the single function color devices located throughout City departments. Reduction in costly time and material service, expensive toner/supply requirements and individual machine electrical demands will all be part of the cost consolidation.
To fully meet Phase III replacements, 14 machines will be required. Three unanticipated color machines, including two multi-functional machines in the Records Division of the Police Department and one print-only machine in TED were designated by those departments for replacement this year. All three printers were not previously managed by Reprographics. Staff coordinated with the requesting departments and determined replacing two of the three color devices (one for each department) was adequate, based on usage. The second color machine in the Records Division will be eliminated, along with another 10 stand-alone color devices scheduled for coordinated removal.
Additionally, in order to align with organizational data security and prevention of protected data loss, staff requests removal of hard drives from six replacement machines. There is a cost associated for the surrender of this equipment prior to removal.
The following departments are included in the Phase III color replacement schedule:
• City Clerk
• Public Works (Administration)
• Naperville Settlement (Pre-Emption House)
• Finance (Noise Room)
• City Manager’s Office
• Fire Department (Administration)
• Police Department (Administration, Patrol, Investigations and Records)
• DPU-Water and Wastewater (Water Service Center)
• TED (Second floor)
The two departments requiring small black image machines are:
• DPU-Electric (Electric Service Center/Warehouse)
• Police Department (Animal Control)
Phase III will span five years at a total cost of $256,521. First year costs will total $55,936 and include hard drive surrenders, machine relocations and machine removal. A total of $29,773 will be used from the CY2017 budget to cover expenses between July and December 2017. The remaining $200,584 will be expensed in the following four years at an average cost of $50,146 per year. Staff has requested a 2% contingency to the contract to allow for overages in the number of copies produced. Staff anticipates increases throughout the contract as volumes fluctuate monthly.
The Phase III, contract term for Contract 15-181 will be July 1, 2017 through April 30, 2022. Click here to enter text.
FISCAL IMPACT:
CIP #: N/A
Replacement printer devices are expensed to the Support Services and Technology accounts listed below. A total of $124,998 is budgeted for replacements in CY2017. The requested award is within budget.
|
Account Number |
Fund Description |
Total Budget Amount |
|
010-1612-581.30-29 |
General Fund |
$121,979 |
|
010-4710-431.60-69 |
General Fund |
$29,705 |