Background/Historical Context: The current copier contract between New Hanover County School System and Coeco Office Systems expires June 30, 2012.
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- Ashlynn Perkins
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1 APPENDIX X Item: Bids for Copier Contract Dept.: Technology Background/Historical Context: The current copier contract between New Hanover County School System and Coeco Office Systems expires June 30, Recommendation: It is recommended that the Board award the five year contract to CopyPro. Rationale for Recommendation: CopyPro met the required standards requested and the overall cost was less than the opposing bids. Scan and network capabilities were also included in these bids as an additional feature to be included in the total cost. Monthly Cost Tax Total $ 22, $ 1, $ 23, Annual $ 264, $ 18, $ 283, Years $ 1,323, $ 92, $ 1,416, Short and Long Term Impact: The current Coeco Office Systems contract is for $ per copy and contracted for 30,763,032 copies per year. The recommended CopyPro contract is for $ per copy and is for 29,945,745 copies per year with unused copies being carried over to the next year. That is an annual savings of $72, with the new contract versus the current contract. The long term impact will mean more features with the new equipment and less cost. Supporting Documentation: Copier Bid Tab, Contract
2 APPENDIX X Board Action: Recommendation Accepted Recommendation Rejected Tabled for Further Study Other
3 CopyPro Toner Exchange Systel Toshiba Coeco Konica Minolta I. Copier Lease Substitute Bid Strategic Printing Solutions Pinnacle Business Services Cavin's C&W Copier Services Ricoh USA A. Price per copy-shall include quarterly & yearly reads base on 29,945,745 copies per year (unused copies, if any, shall carry over to the next year) B. Cost to move copier during the lease Included Free Free No Add'l N/C No Charge $ $ Included No Charge w/in same bldg $50 between bldgs $ No Charge C. Indicate increase in cost per copy for upgrading copier to the next model after initial install no change FS-1035 MFP/DP to TASKalpha 205 $ FS-1035 MFP/DP to TASKalpha 205 $ No Add'l N/C Mths 1-12 $ No extra charge After 6 mths $ $ Negotiable mths remaining $ N/A TASKalpha 255 to TASKalpha 305 $ TASKalpha 255 to TASKalpha 305 $ Mths $ After 12 mths $ mths remaining $ TASKalpha 305 to TASKalpha 3500i $ TASKalpha 305 to TASKalpha 3500i $ Mths $ After 18 mths $ mths remaining $ TASKalpha 3500i to TASKalpha 4500i $ TASKalpha 3500i to TASKalpha 4500i $ Mths $ After 24 mths $ mths remaining $ TASKalpha 4500i to TASKalpha 5500i $ TASKalpha 4500i to TASKalpha 5500i $ Mths $ After 30 mths TASKalpha 5500i to TASKalpha 8000i $ TASKalpha 5500i to TASKalpha 8000i $ After 36 mths $ After 42 mths $ After 48 mths $
4 After 54 mths $ D. Overage Cost $ $ $ $ $ $ $ $ $ N/A $ $ Yearly Cost $ 264, $ 281, $ 285, $ 289, $ 295, $ 305, $ 289, $ 313, $ 353, $ 388, $ 553, Cost of lease over 5 years (does not include sales) $1,323, $1,406, Alternete not allowed $1,429, $1,449, $1,477, $1,527, $1,449, $1,569, $1,766, $1,942, $2,769,981.41
5 Equipment Lease Agreement Lease Number Dear Customer: We ve written this Equipment Lease in simple and easy-to-read language because we want you to understand its terms. Please read your agreement carefully and feel free to ask us any questions you may have about it. We use the words you and your to mean the Lessee indicated below. The words we, us, and our refer to the Lessor indicated below. Lessee Name Street New Hanover County Board of Education 2814 Carolina Beach Road Wilmington NC County New Hanover Billing address if different than above: County Supplier Name 3103 Landmark Street Greenville NC Lessor Name: PO Box Greenville NC Contact Contact 1. Lease Agreement. We agree to lease to you and you agree to lease from us the equipment listed below. You promise to pay us the lease payments show below show below according to the payment schedule shown below. Equipment to be new unless otherwise noted as: used reconditioned Quantity Description of Equipment Leased Make & Type Model Number Serial Number 2. Terms and Payment Schedule: Number of Months Amount of Lease Payment (per month, not including sales tax) Is Maintenance included in above lease payment? Yes No Are Supplies included in above lease payment? Yes No Payments are due monthly, beginning and continuing on the same day of each month until fully paid. Lease billing will start upon agreement date or delivery date, whichever is later, unless otherwise stated above. Payments will be applied to past due invoices, then to the current amount. Copies/month Excess copy rate (per copy) All inclusive maintenance and supply agreement, includes all maintenance, parts, and supplies, excluding paper and staples. Average supply yields are based on a % b&w fill and % color fill. If fill is determined to be more these averages, Customer may be required to purchase additional toner. Customer to initial in acceptance: Your payments shown above do not include any applicable sales tax. If any taxes are due, you agree to pay the tax in addition to your monthly payments. You also agree to pay at the time you sign this Lease: No Payments in advance First Payment in Advance First & Last Payment in Advance A security deposit of $ which will be refunded upon expiration of the Lease, if you have fulfilled all terms and conditions of the Lease. At the expiration of the terms of this lease agreement, J & M Executive Leasing, LLC retains ownership of this equipment. There is no option to purchase the equipment at the end of the term and the equipment should be returned to See terms and conditions continued on the back of this agreement. You agree to all the terms and conditions shown above and on the reverse side of this Lease, that those terms and conditions are a complete and exclusive statement of our agreement and that they may be modified only by written agreement and not by course of performance. You agree that this Lease cannot be terminated except as provided for in this Lease. You also agree that the equipment will not be used for personal, family or household purposes. You acknowledge receipt of a copy of this Lease. This Lease is not binding on us until we accept it by signing below. You authorize us to record a UCC-1 financing statement, or similar instrument, and appoint us as your attorney-in-fact to execute and deliver such instrument, in order to show or interest in the equipment. Customer to initial in acceptance: This lease may not be terminated early. Customer s Acceptance: Date Accepted: (Lessor) By: Date Accepted: (Lessee) By: Title: GUARANTY In the guaranty, I means the person making the guaranty, and you means the Lessor indicated above. I guarantee that the Lessee/Customer will make all payments and pay all the other charges required under the lease agreement when they are due and will perform all other obligations under the lease agreement fully and promptly. I also agree that you can make other arrangements with the Lessee/Customer and I will still be responsible for those payments and other obligations. You do not have to notify me if the Lessee/Customer is in default. If Lessee/ Customer defaults, I will immediately pay in accordance with the default provisions of the lease agreement. I will reimburse you for all expenses you incur in enforcing any of your rights against the Lessee/Customer or me, including attorney fees. If this is a corporate guaranty, it is authorized by the Board of Directors of the guaranteeing corporation. CORPORATE GUARANTY PERSONAL GUARANTY Name of Corporation Guarantor s signature Signature Date Print Name Date Title Continued on reverse side
6 This is a Master Lease. Each equipment schedule executed referencing this agreement will be a legal and binding document according to the terms and conditions of this agreement. 1. Ownership of System: is the sole owner and title holder to the System. 2. Lease: Monthly payments will begin on the Agreement date or delivery date, whichever is later. New Hanover County Board of Education agrees to pay J & M Executive Leasing, LLC the lease payment when due. If any payment is more than ten days late, New Hanover County Board of Education agrees to pay a penalty of 1% on the overdue amount. New Hanover County Board of Education also agrees to pay $32.00 for each check that the bank returns for insufficient funds or any other reason. 3. Taxes and Fees: This is a net lease. In addition to lease, New Hanover County Board of Education agrees to pay all taxes, fees and filing costs related to the use of the System, even billed after the end of the lease period. will file property tax returns and bill New Hanover County Board of Education as soon as an invoice from the local jurisdiction is received. has the option to estimate any taxes due for the year and bill New Hanover County Board of Education monthly in advance on the basis of that estimate. If is required to pay property tax, New Hanover County Board of Education agrees to reimburse, even if New Hanover County Board of Education is normally exempt from property tax. 4. UCC Filing: New Hanover County Board of Education authorizes to sign any documents in connection with the UCC on New Hanover County Board of Education' behalf. New Hanover County Board of Education authorizes to insert the serial number(s) of the System in this lease agreement (including any schedules) and in any filings. 5. Liability and Insurance: New Hanover County Board of Education shall be responsible for losses or injury to the extent that they are proximately caused by its negligence or intentional misconduct with respect to its operation of the System. New Hanover County Board of Education promises to keep the System fully insured against loss until the Agreement is paid in full and maintain insurance that protects from liability for any damage or injury caused by the System or its use. New Hanover County Board of Education promises to provide us evidence of the insurance.. If New Hanover County Board of Education fails to provide such evidence, New Hanover County Board of Education authorizes to obtain coverage on their behalf. may file claims and endorse insurance checks on New Hanover County Board of Education's behalf. New Hanover County Board of Education must continue to make payments until the Agreement is paid off by the insurance proceeds. Alternatively, J & M Executive Leasing, LLC may choose to self-insure and add an insurance surcharge to New Hanover County Board of Educations lease. 6. Maintenance and Care of 's Equipment: New Hanover County Board of Education agrees to install, use and maintain the System in accordance with the dealer specifications and use only those supplies supplied or approved by CopyPro, Inc. which meet manufacturer specifications. CopyPro, Inc. will deliver and install system as required in RFP page 2 of 9, Delivery/Installation line item. 7. Location of Equipment: New Hanover County Board of Education will keep the System at the location specified in this Agreement. New Hanover County Board of Education must obtain 's written permission to move the System. New Hanover County Board of Education will allow J & M Executive Leasing, LLC or its agents to inspect the System at any reasonable time wherever it is located. 8. Assignment: NEW HANOVER COUNTY BOARD OF EDUCATION HAS NO RIGHT TO SELL, TRANSFER, ENCUMBER, SUBLET OR ASSIGN THE SYSTEM OR THIS AGREEMENT. may sell, transfer or assign this Agreement and if we do, the new owner will have the same rights and benefits has and will not have to perform any of 's obligations. 9. Warranties: J & M EXECUTIVE LEASING, LLC IS RENTING THE SYSTEM "AS IS" TO NEW HANOVER COUNTY BOARD OF EDUCATION. Maintenance and Support is included in the cost of the payment quoted to meet specifications of RFP page 4 of 9, Maintenance and Support line item. 10. Default: If New Hanover County Board of Education does not pay any amount when it is due, New Hanover County Board of Education may be considered in default. If New Hanover County Board of Education defaults, can demand that New Hanover County Board of Education pay the value of any unpaid billed payments, plus a default penalty equal to the value of six payments or the remaining number of payments due, whichever is less. If New Hanover County Board of Education breaks any promise in the Agreement, can use any remedies available to J & M Executive Leasing, LLC under the Uniform Commercial Code or any other applicable law. New Hanover County Board of Education promises to pay reasonable attorney fees and any cost associated with any default action or repossession of the System. 11. Business Agreement and Choice of Law: NEW HANOVER COUNTY BOARD OF EDUCATION AGREES THAT THIS AGREEMENT WILL BE GOVERNED UNDER THE APPLICABLE LAW FOR THE STATE OF NORTH CAROLINA. 12. Option to Purchase: There is no option to purchase this equipment at the end of the terms of this agreement. 13. Renewal: After the Minimum Term or any extension agreed to, this Agreement WILL NOT automatically renew. New Hanover County Board of Education may request an extension of this agreement by notifying in writing. At the end of the Agreement J & M Executive Leasing, LLC will arrange for a delivery service to pick up the equipment and return the equipment to at no additional charge to New Hanover County Board of Education. New Hanover County Board of Education must pay any additional rents due until the System is received in good working condition by 14. Other Rights: New Hanover County Board of Education agrees that 's delay, or failure to exercise any rights, does not prevent J & M Executive Leasing, LLC from exercising them at a later time. If any part of this Agreement is found to be invalid, then it shall not invalidate any of the other parts and the Agreement shall be modified to the minimum extent as permitted by law. 15. Entire Agreement: This lease agreement represents the entire Agreement between and New Hanover County Board of Education. Neither, nor New Hanover County Board of Education, will be bound by any amendment, waiver, or other change, unless agreed to in writing and signed by both parties. Except for identifying the goods, services, or software ordered, the price(s), and the quantity(ies), the terms and conditions of the purchase order, or other ordering documents of New Hanover County Board of Education will not modify or effect this lease agreement, or have any other legal effect whether issued or signed before, on, or after the date of this lease agreement. The provisions of the EEO Clause in CFR and the Affirmative Action Clause at 4CFR and are incorporated in this lease agreement. 16. Service/Copy Charge: There will be no price increases of the maintenance and supply charge during the life of this lease agreement. 17. Return of Equipment: At the end of this Lease's term, New Hanover County Board of Education agrees to immediately return the equipment to J & M Executive Leasing, LLC in a condition as good as received less normal wear and tear to any place designate. will arrange for the removal and return of the equipment. 18. Security Deposit: No security deposit is required on this lease agreement. 19. Non-Appropriation of Funds: The obligation of the New Hanover County Board of Education to make payments under this Agreement for periods of time beyond its fiscal year in which this lease is executed is contingent upon the appropriation and availability of funds from the its governing Board in each such fiscal year. The New Hanover County Board of Education shall exercise reasonable efforts to secure such funds but if sufficient funds are not so appropriated and made available by its governing Board, the obligations for payment by the New Hanover County Board of Education under this Agreement shall be null and void in such subsequent fiscal years and New Hanover County Board of Education shall not be liable to J & M Executive Leasing LLC or its assignees for any damages or sums, except any per copy charges for copies previously used by the New Hanover County Board of Education and not paid for 20. The terms of New Hanover County Board of Education RFP takes precedence over the terms outlined in this agreement. In the event that there is conflict between the terminology in this lease document and the RFP , the terms in the RFP will be the determing factor for resolution.
7 Delivery and Acceptance Certificate Lease Number To: (Lessor s name and address) PO Box 2978 Greenville, NC The undersigned certifies that it has received and accepted all the equipment described in the Equipment Lease Agreement between Executive Leasing (lessor) and the undersigned, dated. The equipment conforms with our requirements and it has been fully installed. There are no side agreements or cancellations clauses given outside the Equipment Lease Agreement. I have reviewed and I understand all of the terms and conditions of the Equipment Lease Agreement. I was not induced to sign this by any assurances of the Lessor or any one else. Date Customer Accepts Equipment: Customer s Name NEW HANOVER COUNTY BOARD OF EDUCATION By Title (If corporation give title. If owner or partner, state which).
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