R-1599 - 11/22/2016 - AGREEMENTS - Resolutions Supporting Documents ITEM 9.B. 1)
BOARD OF TRUSTEES MEETING
VILLAGE of SAMUEL E. DEAN BOARD ROOM
OAK B R K BUTLER GOVERNMENT CENTER
cq1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
November 22, 2016
SUBJECT: Award of Contract—Multi-Function Copiers
am
FROM: Jim Fox, Information Technology Director Y
BUDGET SOURCE/BUDGET IMPACT: 151-91600 and Various Program Line Items
RECOMMENDED MOTION: I move that the Village Board award a 48-month Lease
Agreement and a 48-month Maintenance Agreement, to the company with the best overall
value, Konica Minolta Business Solutions U.S.A., Inc., Downers Grove, Illinois, in the estimated
amount of$105,741.00 (2017 - $26,435.25, 2018 - $26,435.25, 2019 - $26,435.25, and 2020 -
$26,435.25 annually), subject to annual appropriations, for the replacement of 11 multi-function
print copy devices and approve Resolution 2016-IT-PG-EQ-R-1599. Additionally, I move that
the Village Board authorize the purchase of the print management software for the 11 multi-
function print copy devices in the amount of$12,610.00.
HISTORY:
In the past, the Village utilized multiple vendors to provide and maintain 11 copiers throughout
the Village at a total annual cost of approximately $39,000. The copiers were purchased or
leased with varying terms. Currently there are 11 multi-function devices (MFD) in service, either
leased through Ricoh or owned, that perform a range of functions from basic copying to
scanning, printing, and faxing in a networked environment. Several of the machines are at least
five years old which increases downtime and maintenance. One device is 9 years old and has
reached the end of its useful life.
The Village's past practice of contracting with multiple copier suppliers offering numerous
different models creates a decrease in office efficiencies. For example, models were not uniform
across departmental operations, and a variety of copiers made it difficult to manage copier usage,
and it increased copier usage charges. Further, multiple suppliers, copier models, and
1'G
BOT AGENDA Page 1
consumables do not allow the Village to leverage its annual expenditures for this service and
related products and receive the best price.
Currently the total copy/print volume from all Village copiers are in excess of 800,000 copies
annually; 624,000 black&white; 178,000 color. The primary goal of this project is to reduce
overall printing costs by eliminating the need to print or copy. We plan on changing workflow
operations in every Village department to shift from paper products to electronic imaging and
storage.
To address these issues, the Information Technology and Purchasing Divisions developed a
Request for Proposal (RFP) with the following key objectives:
• Reduce overall printing costs by eliminating the need to print or copy.
• Reduce cost through economies of scale by selecting one supplier to support and
maintain the entire copier program.
• Provide purchasing flexibility by specifying copier models which meet the Village's
varied operational requirements.
• Specify machines that perform multiple functions, including copying, network printing,
scanning, emailing, and faxing. This will reduce the need for Departments to replace and
purchase equipment designed for these additional functions.
• Require intuitive interfaces. Fact-finding sessions with Village staff revealed that many
users do not use some features, such as two sided copying, because the interface of
existing equipment is too complex.
• Include environmental friendly options such as requirements for low energy usage;
certification of environmental management systems undertaken by suppliers; use of
recycled content in the manufacture of the equipment, supplies and packaging; machines
capable of using 100%recycled paper; and overall paper reduction through two-sided
copying, emailing, and integration with the Village's document imaging scanning system.
• Provide hardware pricing options to: own the equipment, lease for 48 months, or lease for
60 months.
ANALYSIS:
A Request for Proposal (RFP) was advertised on the Village's website on May 16, 2016. Twelve
proposals were received from the nine vendors listed below dated of June 3, 2016:
• Canon
• COTG(Xerox)
• Cutting Edge (Sharp)
• Gordon Flesch(Canon)
• Imagetec LP (Samsung)
• Konica Minolta
• Ricoh
• Toshiba
BOT AGENDA Page 2
• TTSG(Kyrocera)
A ten member evaluation team was formed with representatives from all Village departments
including; Donna Bettin, Administration; Rania Serences, Finance; Gail Polanek, Development
Services; Kathy Koubek, Police; Rose Douglas, Fire; Diane Ross, Public Works; Claudine
Boettger, Sports Core; Mary Williamson, Oak Brook Public Library; Ejaz Khan, Information
Technology; and Jim Fox, Information Technology.
The initial proposal review—Phase 1 -- consisted of a pass/fail assessment of proposals to
ensure that all minimum qualifications were met and that all proposals were complete. The
initial assessment was used to assess the experience of the proposers and their technical
capability, including the functionality of the proposed hardware and the proposers' ability to
install, maintain, and manage the Village's copier program. As part of the initial evaluation, the
team visited each of the vendor's showroom, offices, and/or warehouses to view recommended
hardware components and to evaluate the vendor's sales and service operations.
Konica Minolta, COTG(Xerox), and Imagetec (Samsung)were selected for further evaluation—
Phase 2 -- including detailed product and software demonstrations. The overall scores and
ranking of the finalists are summarized below. As illustrated, Konica's proposal scored higher in
experience, technical categories, software solution, and overall cost.
Konica COTG Imagetec
(Xerox) (Samsung)
Company 1 2 3
Experience 1 2 3
Technical 1 3 2
Software Solution 1 2 3
Cost 1 2 3
The cost difference between Konica and COTG is approximately $1,000 over the four years
proposed lease. The cost difference between Konica and Imagetec (Samsung) is approximately
$3,078.00 for the same period.
BOT AGENDA Page 3
The proposed agreements with Konica Minolta include a monthly lease fee per machine and a
cost per copy charge. The copier program will include customer consultation with the Konica
Minolta technical team, delivery, installation,training, maintenance, consumables (except
paper), copier moves, and copier removal. All models offered by Konica include the capability
to fax,print, copy, and scan into the Village's document imaging system.
Cost Analysis: Under the Village's existing copier program, the total annual expenditure for FY
2015 was approximately $38,588.33. Under the new program, the estimated annual cost to
operate the same number of machines is estimated to be $26,435.25; for a 32% cost savings or an
estimated savings of$48,612.32 for the four year term of the agreement.
Implementation Plan: After Village Board approval, staff will meet with department
representatives to outline the options available and explain the process and timeframe for
replacement of current copiers with multifunction devices. The full implementation process will
be lead by the Information Technology Division. Initial installations are planned with
departments in the Butler Government Center (BGC)with outlying facilities completed in the
final phase of the project. It is anticipated that the replacement of all copiers Village-wide and
full implementation of all MFD features will be completed by December 31, 2016.
SUMMARY:
Konica, COTG(Xerox), and Imagetec (Samsung) all submitted excellent proposals. However,
the evaluation team concluded that Konica's solution is superior as summarized below:
• Overall cost savings for both hardware and cost per copy printing
• Technical services
• Document imaging integration
RECOMMENDATION:
That the Village Board award a 48- month Lease Agreement and a 48- month Maintenance
Agreement, to the company with the best overall value, Konica Minolta Business Solutions
U.S.A., Inc., Downers Grove, Illinois, in the estimated amount of$105,741.00 (2017 -
$26,435.25, 2018 - $26,435.25, 2019 - $26,435.25, and 2020 - $26,435.25 annually), subject to
annual appropriations, for the replacement of 11 multi-function print copy devices and approve
Resolution 2016-IT-PG-EQ-R-1599. Additionally, I move that the Village Board authorize the
purchase of the print management software for the 11 multi-function print copy devices in the
amount of$12,610.00.
BOT AGENDA Page 4
RESOLUTION 2016-IT-PG-EQ-R-1599
A RESOLUTION APPROVING AND AUTHORIZING
A LEASE AGREEMENT AND MAINTENANCE AGREEMENT
BY AND BETWEEN THE VILLAGE OF OAK BROOK AND
KONICA MINOLTA BUSINESS SOLUTIONS U.S.A., INC.
FOR REPLACEMENT OF MULTI FUNCTION PRINT COPY DEVICES
WHEREAS, the Village of Oak Brook("Village") utilizes eleven print copy devices("Devices") in
its government buildings; and
WHEREAS, these Devices are varying models and ages which decrease office efficiencies; and
WHEREAS, several of the Devices are at least five years old, with one of them being nine years
old and has reached the end of its useful life; and
WHEREAS, Village staff posted a Request for Proposal ("RFP") on May 16, 2016 for the
purchase of replacement Devices; and
WHEREAS, the Village received twelve sealed proposals from nine vendors offering Devices;
and
WHEREAS, after an exhaustive review of the twelve proposals by a ten member evaluation team,
three vendors were selected for comparison; and
WHEREAS, of the three finalists, Konica Minolta Business Solutions U.S.A., Inc. ("Konica")was
recommended because its proposal scored higher in experience, technical categories, software solution
and overall cost, and thus was determined to be the best overall value to the Village; and
WHEREAS, the Village President and Board of Trustees, being fully advised in the premises,
have determined that it is in the best interests of the Village and its residents to authorize a 48-month
lease agreement and a 48-month maintenance agreement with Konica in an estimated amount of
$105,741.00 for the Devices; and to further authorize the one-time purchase cost of print management
software ("Software") in the amount of$12,610.00; and
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part of,
this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Authorization of Lease and Maintenance Agreements for the Devices. The
President and Board of Trustees hereby approve Lease and Maintenance Agreements with Konica for
replacement Devices for a term of 48 months in an estimated amount of$105,741.00.
Section 3: Authorization of Purchase of Software. The President and Board of Trustees
hereby approve the one-time purchase of Software from Konica in the amount of$12,610.00.
Section 4: Approval of Agreements. The President and Board of Trustees hereby approve
the Lease Agreement and the Maintenance Agreement with Konica in substantially the same form, as
attached hereto as Exhibit A ("Lease's and Exhibit B ("Maintenance"), and the purchase agreement
Resolution 2016-IT-PG-EQ-R-1599
Approving the Purchase of
Replacement Multi Function Print Copy Devices
Page 2 of 5
for Software, as attached hereto as Exhibit C, ("Software") and in final forms approved by the Village
Attorney.
Section 5: Execution of the Documents. The Village Manager and Village Clerk shall be,
and hereby are, authorized to execute the documents between the Village and Konica in the final form
approved by the Village Attorney.
Section 6: Effective Date. This Resolution shall be in full force and effect upon passage and
approval in the manner provided by law.
APPROVED THIS 22nd day of November, 2016
Gopal G. Lalmalani
Village President
PASSED THIS 22nd day of November, 2016
Ayes:
Nays:
Absent:
ATTEST:
Charlotte K. Pruss
Village Clerk
Resolution 2016-IT-PG-EQ-R-1599
Approving the Purchase of
Replacement Multi Function Print Copy Devices
Page 3 of 5
EXHIBIT A
LEASE AGREEMENT
Resolution 2016-IT-PG-EQ-R-1599
Approving the Purchase of
Replacement Multi Function Print Copy Devices
Page 4 of 5
EXHIBIT B
MAINTENANCE AGREEMENT
Resolution 2016-IT-PG-EQ-R-1599
Approving the Purchase of
Replacement Multi Function Print Copy Devices
Page 5 of 5
EXHIBIT C
PURCHASE AGREEMENT-SOFTWARE
«
L
REVIEW OF CONTRACTS
Awarding gency: f Contract:
Department: Program/Account Number:
A arded„Contra�t Price* Budgeted Amount:
ib)1D
- , � - t' `
[] Under $20,000 $500,001 - $1,000,000
$20,000 - $500,000 Over $1,000,000
r
`7 ill Dfit•-{' , - ct f Y1 ►A^4 t Q,j
�my e 'Por M tA:4-i
Name: Date: 16 . Z�-. 1�
Date: /
Name: �" o�� • l �
- Date:Ll Nam
Name: Date:
0 Three (3) Originals signed by other party Date/Initials
[] Original provided to staff member for other party Date/Initials i
[] Original provided to Official Files Date/Initials
Village of Oak Brook Approved by Board of Trustees- Date/initials:
Rania Serences
From: Kathy Vonachen
Sent: Friday, November 18, 2016 9:39 AM
To: Rania Serences
Subject: FW:Sign-off Sheet
See below
From: Riccardo F. Ginex
Sent:Thursday, November 17, 2016 4:28 PM
To: Kathy Vonachen
Subject: Fwd: Sign-off Sheet
Thanks,
Rick
Begin forwarded message:
From: "Diamond, Stewart" <SDiamondna ancelRlink.com>
Date: November 17,2016 at 4:17:53 PM CST
To: "Riccardo F. Ginex" <r i nexoak-brook.org>
Subject: Re: Sign-off Sheet
Please add my signature at your end.
Sent from my Whone
On Nov 17, 2016,at 2:41 PM, Riccardo F. Ginex <r ig nexf,oak-brook.org<niailto:r inex@,oak--
brook.org>> wrote:
Stewart,
I understand you're busy but could you please sign off on the Konica Minolta copier contract as we
need to put it in the packet today.
Thanks, ,
Riccardo F. Ginex, ICMA-CM
<image00l Jpg><http lCufwv41.oak-brook.org_h
Riccardo F. Ginex
Village Manager
Village of Oak Brook
1200 Oak Brook Rd., Oak Brook,IL 60523
Phone: 630-368-5020
Fax: 630-368-5021
Email: rginex 'ia,oak-brook.org<mailto:rgineoak-brook org>
Web: www.oak-brook oru