Consideration and Approval of Contract:   Copy Center and Mailroom Services Contract (Amended) and a supplementary Services and Solutions Agreement with Xerox Corporation

Xerographics of Flagstaff requested that the Copy Center and Mailroom Services Contract be assigned to Xerox Corporation, and assignment is legally permissible. Xerox Corporation requested minor amendments and a supplementary Services and Solutions Agreement; which is required as part of the contractual arrangement for Equipment.  It is anticipated that Xerographics of Flagstaff will provide the majority of the services to the City as agent or subcontractor for Xerox Corporation.

City staff currently operates Copy Center and Mailroom Services for the City.  Current funds used for internal operations will be used for the future operations provided by Xerographics of Flagstaff, but under the auspice of Xerox Corporation.  The current annual cost estimate for continuing to provide services in-house is $98,000 per year.  The cost is based on current internal costs plus annualized equipment purchases projected in the next five years.  In addition, current internal cost estimates do not include unknown future cost variables such as wages, pension, and equipment maintenance agreements.  Consent to assignment of the Copy Center and Mailroom Services Agreement (Amended), and the supplementary Services and Solutions Agreement with Xerox Corporation will not change any of the financial impact referenced herein.                                                                         

Effective governance.

Yes.  On January 21, 2014, Council approved the original Copy Center and Mailroom Services Contract with Xerographics of Flagstaff. 

1)  Consent to assignment and approve the Copy Center and Mailroom Services Contract (Amended) and the supplementary Services and Solutions Agreement with Xerox Corporation. The approval of these documents are required to outsource the services to Xerox Corporation/Xerographics of Flagstaff. 2.)  Do not approve this agenda item.  If this agenda item is not approved, then Xerographics of Flagstaff may request termination of the Copy Center and Mailroom Services Contract. The City staff will then continue to provide Copy Center and Mailroom Services until such time as a new competitive bidding process could be completed.  In addition, the City will need to make significant capital outlays to continue the service and the Customer Service Section will continue to cover staffing shortages in the Copy Center and Mailroom, causing a staffing shortage for Customer Service.  

On January 21, 2014, Council approved the City's Service Agreement with Xerographics of Flagstaff to operate and provide on-site Copy Center and Mailroom Services. Subsequently, when the City's Service Agreement was being routed to Xerographics of Flagstaff for signature, two (2)requirements imposed by Xerox Corporation came to light that the City and Xerographics of Flagstaff were unaware of. The first requirement is that Xerox Corporation needs to be referenced as the party to the City's Service Agreement, in lieu of Xerographics of Flagstaff.  The second requirement is a Xerox Corporation supplementary Services and Solutions Contract that Xerox requires as part of the contractual arrangement; which was not included in the staff summary packet approved back on January 21, 2014.

The approval of this consent to assignment and Copy Center and Mailroom Services Contract (Amended) and the supplementary Services and Solutions Agreement with Xerox Corporation, will allow the City to proceed ahead with Xerographics of Flagstaff acting as the local agent/subcontractor, under the auspice of Xerox Corporation.  The City anticipates Xerographix of Flagstaff will provide the quality of Copy Center and Mailroom Services that internal customers expect.  In addition, with the knowledge, experience, and technology Xerographics of Flagstaff brings to this operation, the City may be able to see enhanced Copy Center and Mailroom Services. 

The amendments to the Copy Center and Mailroom Services Contract are minor. The scope of work and monthly service price will remain the same as approved on January 21, 2014.

The supplementary Services and Solutions Agreement  relates to specific equipment that Xerox Corporation will bring on site to perform services. Xerox will continue to own that equipment.  The provision of the equipment is included in the Copy Center and Mailroom Services Contract monthly charge. The City has certain responsibilties related to the equipment.  This agreement also protects Xerox's intellectual property rights.

None.

The consent to assignment and approval of this Copy Center and Mailroom Services Contract (Amended) and supplementary Services and Solutions Agreement with Xerox Corporation, will allow the City to maintain and possibly enhance current services in a cost effective manner.  

Inform
 

None.