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Home My WebLink About12/4/2002 - STAFF REPORTS (8) To: City Council From: Director of Procurement & Contracting Date: December 4, 2002 APPROVE PARTICIPATION IN RIVERSIDE COUNTY AGREEMENT FOR COST-PER-COPY PHOTOCOPY AND IMAGING RELATED SERVICES RECOMMENDATION: That City Council approve participation in Riverside County Contract # RIVCO 60046-006-003 WITH Canon Business Solutions -West for providing city-wide "cost-per-copy" service at the unit cost of $.0248 per copy, including provision of all digital copy equipment, all required supplies, excluding paper and staples, term of the agreement to be five years beginning 01-02-03 with annual pricing adjustment indexed to the Producer's Price Index. SUMMARY: The five year competitively bid cost per copy agreement with Canon Business Solutions - West expired in April of 2002. The services have continued on a month-to-month basis at the original unit cost of $.0242 per copy. It was believed the results of the November election could dramatically impact the volume of services required because of the potential impact of the election on service and staff levels. Canon has done an outstanding job providing and supporting their equipment over the past five years. Staff recommends a new five year commitment to Canon in return for which they will replace all existing analog equipment with digital equipment capable of providing additional value-added services for the City at a cost per copy of$.0248, which includes all equipment, maintenance, and supply costs. Paper and staples were not included in this price. BACKGROUND In April 1997,City Council approved a competitively bid "cost-per-copy" agreement with Canon Business Solutions -West to provide the City with copiers throughout the organization on a cost- per-copy basis. Large analog copiers were placed in workgroup locations, plus smaller "convenience" copiers were placed where needed. On a monthly cycle, copy counts were accumulated and billed at a rate of$.0242 per copy.All service and supplies were included, except for paper and staples. H:\USERS\WPPUBLIC\STAFF REPORTS\CANON CONTRACT.wpd 64 Advantages of the "cost-per-copy" approach include: • City does not have to own any of the equipment. Costs reflect actual needs and usage with no capital investment. • Flexibilityto move equipment in between departments as requirements such as volume and required features change. Central control means individual departments do not have a vested interest in a specific piece of equipment and can adjust quickly as needs evolve. • Single point of contact for maintenance and supplies. Five year contract term at fixed unit cost provides predictability in accuracy in budget forecasting and control • Dealing direct with manufacturer provides first line support. • Manufacturer's technicians are the first trained in new repair and preventative measures. During the term of the contract, the Canon copiers have been reliable and relatively trouble-free. Service calls have been prompt and repairs, when needed, have been efficiently performed. Our current contract expired in April of 2002, but has been extended month-to-month by mutual agreement of Canon and the City while an extensive organization-wide study was conducted.This study included both copier and printer audits as well as time and motion studies in an effort to increase workgroup and individual efficiencies. The current proposal reflects the results of that study. The original proposal called for the removal of most laser and inkjet printers as the new digital copiers would produce copies at ''/2 the cost, at greater speeds and offer larger sheet options and bindery features. Cost savings were projected to be in the $8,000 to $10,000 range per year. In the current proposal, staff recommends leaving the laser & inkjet printers in place in the belief that a natural migration of print jobs to the new units will occur as users become aware of their increased capabilities. The savings will occur over time without alienating users who have ownership issues with their small desktop printers. The proposed Cost per Copy Copier Agreement Contract provides for replacement of all analog copiers with digital multi-function machines offering walk up copying as well as digital printing direct from the user's desktop. The new units will occupy the same footprints as existing units. In each workgroup, users will have a secondary print driver installed for the next closest unit as a backup in the event of their default copier's downtime. All three models proposed have a common user interface so that users who are trained in one model are trained in all. The only difference in models is speed of output and minor features such as an auxiliary side paper deck available on the higher use units. All units meet or exceed existing analog units for speed of output. H:\USERS\WPPUBLIC\STAFF REPORTS\CANON CONTRACT.wpd /�� The proposed new digital Canon copiers are multi-function machines .which feature the following: 1. Combine and print documents created in different programs as a single document 2. Combine scanned copy with digital files into one document 3. Scan single or duplex hard-copy in sizes up to 11x17 4. Secured Print function prints only upon user's password (for confidential documents) 5. 100 virtual mailboxes per machine for storage and later printing of electronic or scanned files. Mailboxes can be password protected and accessed either at the machine or from the user's desktop. 6. Send scanned documents as E-mail attachments 7. Send documents via Internet Fax 8. Send to a database 9. Save and index scanned images and faxes to the City's document managing system The proposed Canon digital copiers will interface both as input and output devices for the City's document imaging system from OTG/Canon, completing the system architecture and creating a digital workflow capability where documentsfrom manysources can be organized and re-purposed as desired in a seamless manner. The Cost per Copy Contract includes training of users .plus software and firmware upgrades as they become available. Toner and service is also inclusive. Paper and staples are excluded. The pricing for the proposed equipment, service and supplies is "piggybacked"from the County of Riverside Contract: [RIVCO-60046-006-003.12/021. Total cost per copy is .0248 cents. This is an increase over our current expired contract of less than 2.5%. Canon could extend the contract with the existing machines, but the cost would be over .03 per copy as they are past their service life and increasingly difficult to maintain. Staff recommends participation in the County of Riverside cost per copy agreement with Canon to achieve a smooth transition to additional value added digital copier technology at a very reasonable cost leveraging the combined volume of the county and city. Funds have been budgeted for this purpose and are available in the following accounts: 001-1261-4299[0 - Copier Equipment Maintenance and a variety of other accounts Harold E. Good, CPPO Director of Procurement & Contracting APPROVED-� �— %'rE City Manager Attachment: Minute Order REVIEWED BY DEPT.OF FINANCE E H:\USERS\WPPUBLIC\STAFF REPORTS\CANON CONTRACT.wpd //f MINUTE ORDER NO. APPROVING PARTICIPATION IN RIVERSIDE COUNTY CONTRACT # RIVCO 60046-006-003 WITH CANON BUSINESS SOLUTIONS FOR CITYWIDE "COST-PER-COPY" SERVICE AT $.0248 PER COPY, WITH A TERM OF 5 YEARS, COMMENCING 01-02-03. ------------------ I HEREBY CERTIFY that this Minute Order, approving participation in Riverside County Contract # RIVCO 60046-006-003 with Canon Business Solutions for citywide "Cost-Per-Copy" service at $.0248 per copy, with a term of 5 years, commencing 01-02-03, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 4`h day of December, 2002. PATRICIA A. SANDERS City Clerk