Consideration and Approval of Contract:  Enter into a contract with Konica Minolta for a lease purchase of the Bizhub Press C1085 in the amount of $183,185 utilizing a cooperative purchase agreement through Mohave Arizona Cooperative Purchasing. 

The agreement with Xerox of Flagstaff, Inc. to provide copy services to the Customer Service Copy Center (Copy Center) will terminate on June 9, 2017.  Approval of this contract will allow the Copy Center to continue to operate seamlessly during this transition.  The Bizhub Press is a digital high resolution color and black and white printer, which handles the large volume requests made of the Copy Center, while offering a variety of finishing needs, such as direct printing and folding which will reduce the time and manual labor for large mailings.

Cooperative Purchasing Contracts between Mohave Arizona Cooperative Purchasing and its members, like the City, have been established under the Arizona procurement rules and City of Flagstaff Procurement Code Manual.

The total cost of equipment, maintenance and supplies are estimated at $183,183 to be paid over a 60 month period. 

The purchase price, as shown on the Konica Minolta C1085 quote, is $123,917, which includes equipment, maintenance, and training. The finance charge, as shown on the attached KS State Bank proposal, is 4.589% of the purchase price equating to approximately $14,466 over the 60-month term. The City will make monthly lease payments of $2,306.39 for 60 months.
 
In addition to the lease purchase of equipment, the City will also pay a fee based on the number of prints per month.  The City anticipates a monthly volume of 25,000 prints.  With this level of prints, the estimated charges over the 60-month term will be $44,800.   This charge will cover all parts, labor, and supplies (excluding paper), over the 60-month term.

Funds are budgeted in the Copy Center FY 2017 budget and ongoing, 001-09-402-1315-1-4134.

Strategic priority #1: Provide exceptional service

2. Serve the public through quality internal and external customer service.
3. Foster clear and consistent communication.
4. Provide employees tools, training and support.

 

No

1. Approve the cooperative purchasing contract as recommended.
2. Reject the cooperative purchasing contract and consider alternative methods for Copy Center services.

On January 22, 2014, Council approved the Copy Center agreement between Xerographics of Flagstaff, Inc. (Xerox) and the City at an annual cost of approximately $95,000.  As part of the agreement, Xerox supplied two of their own photocopiers within the annual fee.  Over the past three years, the City has worked with Xerox, attempting to improve timeliness of equipment maintenance, services, and staffing issues.  However, services have not met the obligations set forth in the contract.  Therefore, the City provided a formal written letter of intent to terminate the agreement and both parties have agreed. Therefore, the agreement is terminating on June 9, 2017, at which time Xerox will remove their equipment, including both high capacity photocopiers.  Volume indicates only one high speed system is required to replace the two currently in the Copy Center.

The lease purchase through Mohave Educational Services Cooperative offers over a 43% discount, enabling the Copy Center to continue to produce the variety of documents in-house, without the added cost associated with outsourcing.

When considering the lease purchase of the Bizhub Press, the required quality, performance and useful life weighed heavily in the decision to select this model.  It will allow the City to obtain one unit versus two thereby reducing costs without sacrificing quality.  With the termination of the Xerox Agreement and the frequent large volume copy requests, the City must find adequate equipment to meet the needs of the Copy Center.

None

The community will receive documents timely, without the potential for delays due to outsourcing.

Inform