CITY OF LAGUNA NIGUEL
CITY COUNCIL AGENDA ITEM
To: Honorable Mayor and Council Members
FROM: Justin J. Martin, Deputy City Manager
DATE: June 6, 2023
SUBJECT: Approval of 60-month Lease and Maintenance Agreement with Canon Solutions America, Inc.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve the 60-month Lease and Maintenance Agreement with Canon Solutions America, Inc.; and,
2. Authorize the City Manager to execute the Agreement and future Amendments to the Agreement, subject to the City Attorney making non-substantive changes.
BACKGROUND
On February 6, 2018, the City Council approved a 60-month Lease and Maintenance Agreement with Canon Solutions America, Inc. (Canon) to lease ten multifunctional copiers as the preferred alternative to purchasing the equipment. The leased equipment supports the print and document management solution needs for the Administration, Finance, Parks and Recreation, Police Services, and Community Development Departments. The original 60-month lease and maintenance agreement expired in April 2023. The agreement term has since transitioned to a month-to-month basis while City staff evaluated viable options that will ensure cost savings while addressing the City's print and document management needs.
Leasing multifunctional copiers supports City Council Goal 2 (Fiscal Sustainability) and Goal 4 (Infrastructure and Technology) of the Strategic Plan Implementation Action Plan.
ANALYSIS
The ability to lease multifunctional copiers will provide the City with a cost-effective and practical solution for improving its printing and document management capabilities.
Moreover, the lease agreement with Canon includes maintenance and support services, freeing up staff time to focus on core business activities rather than equipment maintenance. By leasing multifunctional copiers, the City can also minimize the impact of the highly-technical equipment becoming obsolete. Due to rapid advancements in
technology, equipment can quickly become outdated, leading to decreased efficiency and increased costs. The lease agreement with Canon ensures that the City has access to the latest technology, without the large upfront asset purchase costs and the burden of properly disposing of outdated equipment. Overall, leasing the multifunctional copiers will provide the City with a reliable and efficient solution that meets its printing needs. The Lease and Maintenance Agreement with Canon can be found in Attachment "A".
As part of the proposed new agreement, ten of the City's Canon multifunctional copiers will be replaced with newer, more efficient models and one new copier will be added at the Crown Valley Community Center. The new agreement will not only reduce service costs, it will also result in lower monthly lease payments. The service costs include on- site service calls, replacement parts, labor, and supplies. Overall, it is estimated that the City will save approximately $33,000 over the 60-month (five year) agreement term.
Additionally, Canon will deliver and install the new leased equipment, and will properly dispose of the current equipment, at no cost to the City. Canon will also provide, free of charge, end-user training to City staff within 30 days of system installation, along with a follow-up training session withing 60 days of initial training, if needed.
The City's Purchasing Policy allows staff to use cooperative purchasing agreements pursuant to Laguna Niguel Municipal Code Section 3-6-6 (Use of vendors selected by another agency or through cooperative purchasing agreements). In this case, OMNIA Partners has a current contract (Contract # FI-R0251-18) with Canon for the procurement of multifunctional device equipment, supplies, software and service solutions at a discounted price. All OMNIA Partners contracts have been competitively bid by a lead public agency in accordance with their public purchasing rules and regulations. The City will save time and monetary resources by leasing new multifunctional copiers pursuant to the OMNIA Partners contract, while remaining in compliance with the City's purchasing policy requirements, resulting in further efficiency that is fiscally responsible.
ALTERNATIVES CONSIDERED
The City Council may decide not to approve the agreement with Canon and direct staff to advertise a Request for Proposal (RFP) for the procurement of multifunctional device equipment, supplies, software and service solutions. Staff believes that advertising an RFP will not result in more desirable proposals and may result in increased costs, as well as delays in the procurement of necessary equipment.
FISCAL REVIEW
The estimated annual lease and service costs for eleven new multifunctional copiers from Canon for a lease cycle of 60 months (5 years) is $44,904 per year. It is estimated that the City will save approximately $33,000 over the next five years by entering into this agreement. There is sufficient funding available in the adopted Fiscal Year 2022-23 Budget for the agreement. Funding for this contract has been included in the Fiscal Year 2023-24 Budget and funds will continue to be budgeted in future years.
LEGAL REVIEW
The City Attorney's Office has reviewed the Lease and Maintenance Agreement and has approved it as to form.
CONCLUSION
Staff recommends that the City Council:
1. Approve the 60-month Lease and Maintenance Agreement with Canon Solutions America, Inc.; and
2. Authorize the City Manager to execute the Agreement and future Amendments to the Agreement, subject to the City Attorney making non-substantive changes.
Samass SKetonsean Austin A Matin
Tamara S. Letourneau Justin J. Martin
City Manager Deputy City Manager
Kevin X. Olomon
Favian Bravo Kevin X. O'Connor
Management Analyst Management Assistant
Attachments:
A. Canon Lease and Maintenance Agreement
ATTACHMENT A
Canon Lease and Maintenance Agreement
Lease Schedule ("Schedule") - Itemized (SER-700) Page 1 of 5 Canon
Customer: CITY OF LAGUNA NIGUEL CFS App #: 1938955 Salesperson: Charles G Arnold Canon Solutions America, Inc. ("CSA") Agreement #: MA12160 Transaction #: S21006369 Order Date: 05/30/23 One Canon Park, Melville, NY 11747 Payment Information Equipment Maintenance Information (800)-613-2228 Listed Items Lease Term # of Lease Payments Maintenance included for all Equipment
Billing Information Customer Account: 2142855 60 Maint Base charge invoiced Quarterly by CSA Company: CITY OF LAGUNA NIGUEL - Months 60
Excess Per Image Charge invoiced Quarterly by CSA
DBA: Payment Summary* (*Plus Applicable Taxes) Per Unit Coverage Plan Fixed Price Plan Address: 30111 CROWN VALLEY PKWY CITY OF LAGUNA NIGUEL Lease Payment $2,330.51 Invoiced by CFS Other Transaction Details Address 2: Total Maintenance Lease Payment shall be invoiced Monthly City: LAGUNA NIGUEL County: ORANGE Base Charge $0.00 Invoiced by CSA Purchase Option: Fair Market Value State: CA Zip: 92677-2001 Phone #: 949-362-4300 Due at Signing Contact: ACCOUNTS PAYABLE Fax#: # of Payments in Advance Total Due at Signing Maint Base Charge Section A Covered Images Included in Maint Base Charge Excess Per Image Charge(s) Production) Included
B&W: 00 B&W: $0.00770
Item Code Listed Items Description Qty| Unit Pmt Total Ship To & Maintenance Billing Information 5970C002 IMAGERUNNER ADVANCE DX 49451 Included| Included Shipping: 30111 CROWN VALLEY PKWY CITY OF LAGUNA NI Delivery Date: 05/26/23 4917C002 CASSETTE FEEDING UNIT-AW1 Included Included Address 2:
4921C001 STAPLE FINISHER-AE1 included Included City: LAGUNA NIGUEL County: ORANGE State: CA Zip: 92677-2001 236BV120 MID VOLUME CONNECTIVTY 30+PPM UP TO 79PPM Included Included Primary Customer Contact: KEVIN O'CONNOR 1972V064 ESP NEXT GEN PCS POWER FILTER 120VOLTS 15 AMP XG-PCS-1SD Included Included Phone #: 949-362-4384 Email: [email protected] 4282V202 IMAGERUNNER ADVANCE DX 4945l/ 4935V 4925I INSTALL PAK 1 Included Included Meter Contact:
Phone #: Email:
IT Contact: FAVIAN BRAVO
Phone #: 949-362-4300 Email: [email protected] Billing:
Address 2:
City: County: State: Zip:
Billing Contact:
Phone #: Email:
Elevator: No Loading Dock: No # of Steps: 0 Hrs of Operation: 9-5 Additional Requirements: Consumables: Toner, Staples Inclusive Auto-Toner Fulfllment** Meter Method: Remote Reporting Agent Corporate Advantage For CSA USE ONLY:
OC: COUNTY OF DUPAGE CONTRACT FI-R-0251-18
COES SCENT NORES THE TERMS OF. THE MASTER SALES AND SERVICES AGREEMENT REFERENCED AS A 4693MENT # ABOVE (AGREEMENT), INCLUDING THE MASTER LEASE TERMS SET FORTH AS STOMER UPON SIGNING BY CUSTOMER, AND IS BINDING ON SA AND LESSOR AS PROVIDED IN THE LEASE TERMS. THIS SCHEDULE IS NON-CANCELABLE BY CUSTOMER. CUSTOMER REPRESENTS THATEXECUTION OF THIS SCHEDULE HAS BEEN DL THORIZED. BY YOUR SIGNATURE, CUSTOMER AGREES TO LEASE THE LISTED ITEMS AND, IF SELECTED, TO PURCHASE THE MAINTENANCE SERVICES DESCRIBED HEREIN. YOU ACKNOWLEDGE RECEIPT OF A COPY OF THIS SCHEDU Customer Authorized Signature: Printed Name: Title: Date:
ACCEPTANCE CERTIFICATE
Authorized Signature: Printed Name: Date:
Title:
For Internal Purposes Only:
CFS Authorized Signature: Printed Name: Title: Date:
SER-700 Itemized Lease March 2020 **Requires ImageWARE Remote Additional Equipment List to: S21006369 (SER-701) Page 2 of 5 Canon
Customer: CITY OF LAGUNA NIGUEL Agreement #: MA12160 Order Date: 05/30/23 Salesperson: Charles G Arnold Rider A applies (Office Equip/Cut Sheet Maint Base Charge Section B Covered Images Included in Maint Base Charge Excess Per Image Charge(s) Production)
Included B&W: 00 Color: 00 B&W: $0.00640 Color: $0.03900 Item Code Listed Items Description Qty Unit Pmt Total Ship To & Maintenance Billing Information 3824C002 IMAGERUNNER ADVANCE OX C5870 Included Included Shipping: 30111 CROWN VALLEY PKUY CITY OF LAGUNA NIGUEL Delivery Date: 05/26/23 0607C002 PAPER DECK UNIT-F1 N N Included
Included Address 2:
0126C001 2/3 HOLE PUNCHER UNIT-AI 2 Included Included City: LAGUNA NIGUEL County: ORANGE State: CA Zip: 92677-2001 4030C002 CASSETTE FEEDING UNIT-AQ1 Included Included Contact: KEVIN O'CONNOR Ph#: 949-362-4384 Email: [email protected] 5546C002 BUFFER PASS UNIT.P2 Included Included Mtr Contact: Ph#: Email:
5547C002 STAPLE FINISHER-AB2 Included Included IT Contact: FAVIAN BRAVO _Ph#: 949-362-4300 Email: FBRAVO@CITYOFLAGUNANIGUEL 3998C001 SUPER G3 FAX BOARD-AX 1 Included Included Billing:
1972V064 ESP NEXT GEN PCS POWER FILTER 120VOLTS 15 AMP XG-PCS-15D Included Included Address 2:
2368V120 MID VOLUME CONNECTIVITY 30+PPM UP TO 79PPM Included Included City: County: State: Zip:
3923V843 INSTALL PAK DX C5870I/C5860/C5850/C58401 Included Included Contact: Ph#: Email:
Elevator: No Loading Dock: No #of Steps: 0 Hrs of Operation: 9-5 Consumables: Toner, Staples Inclusive Auto-Toner Fulfillment* Meter Method: Remote Reporting Agent Corporate Advantage For CSA USE ONLY:
Config: B| 56993352
Rider A applies (Office Equip/Cut Sheet Maint Base Charge Section C Covered Images Included in Maint Base Charge Excess Per Image Charge(s) Production)
Included B&W: 00 Color: 00 B&W: $0.00640 Color: $0.03900 Item Code Listed Items Description Qty Unit Pmt Total Ship To & Maintenance Billing Information 3824C002 IMAGERUNNER ADVANCE DX C5870 Included Included Shipping: 30111 CROWN VALLEY PKWY CITY OF LAGUNA NIGUEL Delivery Date: 05/26/23 0607C002 PAPER DECK UNIT-F1 Included Included Address 2:
0126C001 2/3 HOLE PUNCHER UNIT-AT Included Included City: LAGUNA NIGUEL County: ORANGE State: CA Zip: 92677-2001 4030C002 CASSETTE FEEDING UNIT-AQ1 2 Included Included Contact: KEVIN O'CONNOR Ph#: 949-362-4384 Email: [email protected] 5546C002 BUFFER PASS UNIT-P2 2 Included Included Mtr Contact: Ph#: Email:
5547C002 STAPLE FINISHER-4B2 Included Included IT Contact: FAVIAN BRAVO Ph#: 949-362-4300 Email: BRAVO@CITYOFLAGUNANIGUEL 1972V064 ESP NEXT GEN PCS POWER FILTER 120VOLTS 15 AMP XG-PCS-15D Included Included Billing:
2368V120 MID VOLUME CONNECTIVITY 30+PPM UP TO 79PPM 2 Included Included Address 2:
3923V343 INSTALL PAK DX C5870IC58S0/C58501/C58401 Included Included City: County: State: Zip:
Contact: Ph#: Email:
Elevator: No Loading Dock: No # of Steps: Hrs of Operation: 9-5 Consumables: Toner, Staples Inclusive Auto-Toner Fulfillment** Meter Method: Remote Reporting Agent Corporate Advantage For CSA USE ONLY:
Config: C | 56993356
SER-701 Itemized Lease March 2020 **Requires imageWARE Remote Additional Equipment List to: S21006369 (SER-701) Page 3 of 5 Canon
Customer: CITY OF LAGUNA NIGUEL Agreement#: MA12160 Order Date: 05/30/23 Salesperson: Charles G Anold Rider A applies (Office Equip/Cut Sheet Maint Base Charge Section D Covered Images included in Maint Base Charge Excess Per Image Charge(s) Production)
Included B&W: 00 Color: 00 B&W: $0.00640 Color: $0.03900 Item Code Listed Items Description Qty Unit Pmt Total Ship To & Maintenance Billing Information 3824C002 IMAGERUNNER ADVANCE DX C5870 Included Included Shipping: 24602 ALISO CREEK RD SENIOR CENTER Delivery Date: 05/26/23 0607C002 PAPER DECK UNIT-F1 - - - Included Included Address 2:
0126C001 213 HOLE PUNCHER UNIT-A1 Included Included City: LAGUNA NIGUEL County: ORANGE State: CA Zip: 92677-3717 4030C002 CASSETTE FEEDING UNIT-AQ1 1 Included Included Contact: Kaori Garcia Ph#: 949-425-5101 Email: [email protected] 5546C002 BUFFER PASS UNIT-P2 1 Included Included Mtr Contact:
Ph #: Email:
5548C002 BOOKLET FINISHER-A1 WITH TRI-FOLD - Included Included IT Contact: FAVIAN BRAVO _Ph#: 949-362-4300 Email: FBRAVO@CITYOFLAGUNANIGUEL 1972V064 ESP NEXT GEN PCS POWER FILTER 120VOLTS 15 AMP XG-PCS-15D - Included Included Billing:
2368V120 MID VOLUME CONNECIVITY 30+PPM UP TO 79PPM 1 Included Included Address 2:
3923V843 INSTALL PAK DX C5870VC5860/C58501/C58401 Included Included City: County: State: Zip:
Contact: Ph #: Email:
Elevator: No Loading Dock: No # of Steps: 0 Hrs of Operation: 9-5 Consumables: Toner, Staples Inclusive Auto-Toner Fulfillment* Meter Method: Remote Reporting Agent Corporate Advantage For CSA USE ONLY:
Config: D | 56993364
Rider A applies (Office Equip/Cut Sheet Maint Base Charge Section D Covered Images Included in Maint Base Charge Excess Per Image Charge(s) Production)
Included B&W: 00 Color: 00 B&W: $0.00640 Color: $0.03900 Item Code Listed Items Description Qty Unit Pmt Total Ship To & Maintenance Billing Information 3824C002 IMAGERUNNER ADVANCE DX C5870 Included Included Shipping: 29751 CROWN VALLEY PKUY CROWN VALLEY PARK Delivery Date: 05/26/23
0607C002 PAPER DECK UNIT-F1 Included Included Address 2:
0126C001 2/3 HOLE PUNCHER UNIT.A1 Included Included City: LAGUNA NIGUEL County: ORANGE State: CA Zip: 92677-1953 4030C002 CASSETTE FEEDING UNIT-AQ1 1 Included Included Contact: CHRISTINE MUSIAL Ph#: 949-362-5157 Email: [email protected] 5546C002 BUFFER PASS UNIT-P2 Included Included Mtr Contact: Ph#: Email:
5548C002 BOOKLET FINISHER-A1 WITH TRIFOLD 1 Included Included IT Contact: FAVIAN BRAVO Ph #: 949-362-4300 Email: BRAVO @CITYOFLAGUNANIGUEL 1972V064 ESP NEXT GEN PCS POWER FILTER 120VOLTS 15 AMP XG-PCS-15D Included Included Billing:
2368V120 MID VOLUME CONNECTIVITY 30+PPM UP TO 79PPM Included Included Address 2:
3923V843 INSTALL PAK DX C5870IC5860I/C5850IC5B401 Included Included City: County: State: Zip:
Contact: Ph#: Email:
Elevator: No Loading Dock: No #of Steps: O Hrs of Operation: 9-5 Consumables: Toner, Staples Inclusive Auto-Toner Fulfillment** Meter Method: Remote Reporting Agent Corporate Advantage For CSA USE ONLY:
Config: D | 56993364
SER-701 Itemized Lease March 2020 **Requires imageWARE Remote Additional Equipment List to: S21006369 (SER-701) Page 4 of 5 Canon
Customer: CITY OF LAGUNA NIGUEL Agreement #: MA12160 Order Date: 05/30/23 Salesperson: Charles G Arnold Rider A applies (Office Equip/Cut Sheet Maint Base Charge Section E Covered Images Included in Maint Base Charge Excess Per Image Charges) Production)
Included B&W: 00 Color: 00 B&W: $0.01080 Color: $0.07500 Item Code Listed Items Description Qty Unit Pmt Total Ship To & Maintenance Billing Information 3881C003 IMAGERUNNER ADVANCE DX C357IF Included Included Shipping: 27745 ALICIA PKUY SKATE PARK Delivery Date: 05/26/23
1409C002 CASSETTE MODULE-AE1 Included Included Address 2:
1972V064 ESP NEXT GEN PCS POWER FILTER 120VOLTS 15 AMP XG-PCS-15D Included Included City: LAGUNA NIGUEL County: ORANGE State: CA Zip: 92677-3423 2368V120 MID VOLUME CONNECTIVITY 30+PPM UP TO 79PPM Included Included Contact: Jeannette DeMeneces Ph#: 949-916-7755 Email: [email protected] 3826V922 INSTALL PAK IRA DX C357/F/2571F Included Included Mtr Contact: Ph#:
Email:
IT Contact: FAVIAN BRAVO Ph #: 949-362-4300 Email: FBRAVO@CITYOFLAGUNANIGUEL Billing:
Address 2:
City: County: State: Zip:
Contact: Ph#: Email:
Elevator: No Loading Dock: No #of Steps: 0 Hrs of Operation: 9-5 Consumables: Toner, Staples Inclusive Auto-Toner Fulfillment* Meter Method: Remote Reporting Agent Corporate Advantage For CSA USE ONLY:
Config: E | 56993368
Rider A applies (Office Equip/Cut Sheet Maint Base Charge Section E Covered Images Included in Maint Base Charge Excess Per Image Charge(s) Production)
Included B&W: 00 Color: 00 B&W: $0.01080 Color: $0.07500 Item Code Listed Items Description Qty Unit Pmt Total Ship To & Maintenance Billing Information 3881C003 IMAGERUNNER ADVANCE DX C357IF Included Included Shipping: 29751 CROWN VALLEY PKWY CROWN VALLEY PARK Delivery Date: 05/26/23 1409C002 CASSETTE MODULE-AE1 Included Included Address 2:
1972V064 ESP NEXT GEN PCS POWER FILTER 120VOLTS 15 AMP XG-PCS-15D 2 Included Included City: LAGUNA NIGUEL County: ORANGE State: CA Zip: 92677-1953 2368V120 MID VOLUME CONNECTIVITY 30+PPM UP TO 79PPM 2 Included Included Contact: CHRISTINE MUSIAL Ph#: 949-362-5157 Email: [email protected] 3826V922 INSTALL PAK IRA DX 357IF / C2571F 2 Included Included Mtr Contact: Ph#: Email:
IT Contact: FAVIAN BRAVO Ph#: 949-362-4300 Email: FBRAVO@CITYOFLAGUNANIGUEL Billing:
Address 2:
City: County: State: Zip:
Contact: Ph#: Email:
Elevator: No Loading Dock: No #of Steps: O Hrs of Operation: 9-5 Consumables: Toner, Staples Inclusive Auto-Toner Fulfillment** Meter Method: Remote Reporting Agent Corporate Advantage For CSA USE ONLY:
Config: E| 56993368
SER-701 Itemized Lease March 2020 *Requires imageWARE Remote Additional Equipment List to: S21006369 (SER-701) Page 5 of 5 Canon
Customer: CITY OF LAGUNA NIGUEL Agreement #: MA12160 Order Date: 05/30/23 Salesperson: Chartes G Arnold Rider A applies (Office Equip/Cut Sheet Maint Base Charge Section F Covered Images Included in Maint Base Charge Excess Per Image Charge(s) Production)
Included BaW: 00 Color: 00 B&W: $0.01080 Color: $0.07500 Item Code Listed Items Description Qty Unit Pmt Total Ship To & Maintenance Billing Information 3881C003 IMAGERUNNER ADVANCE DX C357IF Included Included Shipping: 30111 CROWN VALLEY PKIY CITY OF LAGUNA NIGUEL Delivery Date: 05/26/23 9580B003 CASSETTE FEEDING UNIT-AK1 Included Included Address 2:
1972V064 ESP NEXT GEN PCS POWER FILTER 120VOLTS 15 AMP XG-PCS-15D Included Included City: LAGUNA NIGUEL County: ORANGE State: CA Zip: 92677-2001 2368V120 MID VOLUME CONNECTIVITY 30+PPM UP TO 79PPM Included Included Contact: KEVIN O'CONNOR Ph#: 949-362-4384 Email: [email protected] 3826V922 INSTALL PAK IRA DX C357IF / C257IF Included Included Mtr Contact: Ph#: Email:
IT Contact: FAVIAN BRAVO _Ph #: 949-362-4300 Email: FBRAVO@CITYOFLAGUNANIGUEL Billing:
Address 2:
City: County: State: Zip:
Contact: Ph#: Email:
Elevator: No Loading Dock: No # of Steps: 0 Hrs of Operation: 9-5 Consumables: Toner, Staples Inclusive Auto-Toner Fulfillment** Meter Method: Remote Reporting Agent Corporate Advantage For CSA USE ONLY:
Config: F | 56993369
Maint Base Charge Section Covered Images Included in Maint Base Charge Excess Per Image Charge(s) Item Code Listed Items Description Qty Unit Pmt Total Ship To & Maintenance Billing Information Shipping: Delivery Date:
Address 2:
City: County: State: Zip:
Contact: Ph#: Email:
Mtr Contact: Ph#: Email:
IT Contact: Ph#: Email:
Billing:
Address 2:
City: County: State: Zip:
Contact: Ph #: Email:
Elevator: Loading Dock: # of Steps: Hrs of Operation:
For CSA USE ONLY:
SER-701 Itemized Lease March 2020 **Requires imageWARE Remote