TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, Acting City Manager
FROM:
Onyx Jones, Interim Finance Director
Miguel Guardado, Information Technology Director
Julie Bondarchuk, Financial Controller
Mario Hernandez, Purchasing Supervisor
SUBJECT:Title
Consideration of a Resolution Awarding Canon Solutions America, Inc., Approving Five-Year Lease and Maintenance/Support Services Agreements for Multifunction (Copy, Scan, Print, Fax) Machines with an Estimated Value of $155,000 Annually (Interim Finance Director Jones).
A) WAIVE FORMAL BIDDING DUE TO COOPERATIVE PURCHASING
B) ADOPT RESOLUTION NO. 24-0116
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...Recommended Action
RECOMMENDATION:
Staff recommends that the City Council waive formal bidding per Manhattan Beach Municipal Code (MBMC) Section 2.36.150 (cooperative purchasing) and adopt Resolution No. 24-0116 awarding Canon Solutions America, Inc., approving five-year lease and maintenance/support services agreement for multifunction machines with an estimated annual value of $160,000.
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FISCAL IMPLICATIONS:
For the multifunction machines, the total cost for the lease, copy charges, and sales is approximately $160,000 per year based on a five-year term. The new lease encompasses a fixed term with no annual increase in maintenance/supplies. Sufficient funds are available in each department for these charges and will be budgeted for the subsequent budget cycles.
BACKGROUND:
The existing multifunction devices are provided through a lease. There are 28 Multifunction Devices (MFD) at various City locations (City Hall, Police Department, Fire Stations, City Yard, Joslyn Center, Parks & Rec, etc.) for copying, scanning, and printing installed on the City’s network. The current vendor provides services, labor, equipment, consumable materials, maintenance, and repairs necessary for the utilized MFDs. The MFD lease is expiring, and the aging fleet no longer provides the needed copy quality and/or reliability.
DISCUSSION:
By comparing contract terms & conditions, costs, and referring to local City/Government references that utilize Canon MFDs (such as the City of Redondo Beach, the City of Hermosa Beach, the City of Torrance, and Port of Los Angeles), the City can reduce overall operating cost by 36% with a proven experienced and reputable brand, working with the manufacture direct in Canon, along with maintenance and support. In addition, Canon includes output management software for authentication and reporting to improve efficiencies and cost savings.
A cross-departmental team was assembled to attend on-site demonstrations from the two finalists (Kyocera through AIS as incumbent and Canon Solutions America, Inc. represents the manufacturer directly) to compare MFD models over 4 sessions to present and demonstrate the new MFD equipment with each vendor. The Information Technology Department provided a script to each vendor based on the feedback from each participating department to demonstrate key features and capabilities of the MFDs specific to the needs and requirements of each department. There were 30 total users representing the different departments. Demonstration evaluations indicated that 72% of votes were in favor of Canon, and 28% voted in favor of Kyocera. In addition, Canon shared some advantages over the competition, such as a smaller footprint, 30% quieter when operating, higher quality output, built-in Tri-Fold, up to 60% longer parts and toner yields for less downtime, less energy utilized, staple-free stapling and secure watermarks to name a few.
Staff recommends that the City Council waive formal bidding per Manhattan Beach Municipal Code (MBMC) Section 2.36.150 (cooperative purchasing), which allows the City to forego the formal bidding process for purchases of equipment obtained through a cooperative competitive bidding procedure. All of OMNIA’s cooperative purchasing contracts are solicited competitively and publicly awarded by a lead agency based on the respective procurement regulations. Canon Solutions America, Inc. has agreed to extend the contract prices, terms, and conditions under OMNIA Contract #120721-EVS.
Based on this comparison, staff recommends awarding Canon Solutions America, Inc. a five-year lease and maintenance/support agreements, utilizing the OMNIA Partners piggyback contract, for 29 MFDs in the amount of $160,000 annually with fixed term rates, providing an overall cost reduction of 36%. If approved, the new MFD fleet will be scheduled to arrive between 15 and 45 days.
PUBLIC OUTREACH:
After analysis, staff determined that public outreach was not required for this issue.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 24-0116
2. Agreement - Canon Solutions America, Inc.