HomeMy WebLinkAboutAGENDA REPORT 1989 0201 CC REG ITEM 11BELOISE BROWN
Mayor
BERNARDO M. PEREZ
Mayor Pro Tern
CLINT HARPER, Ph. D.
Councilmember
PAUL LAWRASON
Councilmember
SCOTT MONTGOMERY
Councilmember
RICHARD T. HARE
City Treasurer
MOORPARK
M E M O R A N D U M
TO: The Honorable City Council
FROM: Donald P. Reynolds, Jr.
DATE: January 26, 1989
SUBJECT: COPY MACHINE PURCHASE RECOMMENDATION
ITEM I 1 , B.
STEVEN KUENY
City Manager
CHERYL J. KANE
City Attorney
PATRICK RICHARDS, A.I.C.P.
Director of
Community Development
R. DENNIS DELZEIT
City Engineer
JOHN V. GILLESPIE
Chief of Police
The following is a summary of staff research for the purchase of a new
copy machine. The intended primary purpose of the new machine is for
the production of City Council /Commission packets. The research
extended beyond the copy machine market by including a careful analysis
of the procedural steps involved in the actual packet production. As a
result of this study, the revised procedure has already increased the
efficiency of this job. By purchasing an additional machine, staff
will be able to realize a maximum efficiency in these procedures,
cutting the labor involved by more than half.
Backqround
Since August of 1986, staff has been working with a Canon 7550 photo
copy machine. This machine is rated as a medium volume copier which
includes 50 copies per minute, and a monthly recommended volume of
50,000 copies. Last year, the Cannon produced at a higher volume than
the manufacturer recommended. Although the volume varies, the City did
have peak periods of over 90,000 copies per month in 1988. The City had
the Canon rebuilt in June of 1988 . Despite the effort, this machine
has riot functioned adequately after reaching a million copies. Because
the machine is rated lower than the City's volume, the Canon currently
requires service approximately once every two weeks.
The design limitations of the Canon 7550 require the operator to
interrupt the package procedure frequently during the job. Current
manual operations include: color pages produced separate from the job;
manual insertion of colored sheets; manual stapling; frequent stops for
walk up use; and frequent stops for clearing jams and adding paper. As
a result, the production time often requires 6 to 8 hours, and can
occupy the operator for an entire day.
799 Moorpark Avenue Moorpark, Califomia 93021 (805) 529 -6864
XCROXAICHIRUNI .cr
January 26, 1989
page 2
Scone of Research:
Staff has researched mid - volume and high volume machines from
IBM /Kodak, Konica, Xerox, Ricoh, Sharp, Toshiba, Minolta, and Canon.
Time has been taken to witness showroom demonstrations for every
machine. Additionally, when possible, trial machines have been used at
City Hall. Inquiries have been made regarding the cost of
service /supplies, service response times, service reputation, and
referenced user satisfaction. The research focussed on machines that
can make 70 copies per minute from the document feeder, make 2 sided
copies at 20 to 30 copies per minute, will automate stapling, colored
sheet insertion, and paper refill procedures. The ideal machine would
be one with very few frills, high volume capacity, and a sound
engineering structure.
The new machine will be used for packet production and high volume jobs.
It will be located in the copy room, where big jobs can be produced
without interruption. The old machine will remain in the same location
and be used primarily for short runs and for long runs when needed.
The two machines, working together, will allow for quick photo copying
for all staff members.
Future needs of the City have been forecasted to exceed one million
copies a year. In order to meet the future needs of the City, staff
focused research on the companies which produce high volume equipment.
The only companies who manufacture "Stage 5" copy equipment are
IBM /Kodak, Xerox, and Konica. The results of the staff's research has
been summarized on the attached spreadsheet. The categories on the
spreadsheet have been selected to represent the City's needs,
emphasizing reliability and efficiency.
Conclusions:
The research concludes that the IBM /Kodak Series III 85 photo copy
machine appears to suit the City's needs better than the competition.
Because all four machines are capable of automating the current package
production procedures, staff placed emphasis on value and cost. Based
on this criteria, the IBM /Kodak ranks above Xerox and Konica. The
IBM /Kodak is equal with the competition in categories B, F, I and J on
the attached spreadsheet. The IBM /Kodak is the top ranked machine in
categories C, D, E, F and G. Categories C & D represent a significant
savings in supply and service costs when compared to the City's current
costs, (based on one million copies per year, the IBM /Kodak will cost
approximately .068 cents per copy or $4,500.00 less to operate than the
current Canon 7550). Categories B, E and F are indicative of the
machines durability. The simplicity of the engineering design,
combined with heavy duty construction and a vacuum feeder, (rather than
a belt drive document feeder), make this a durable, practical machine
for the City Council /Commission's package production.
XEROXA /CHRONI PJR:DST:CM:crl
January 26, 1989
page 3
Based on several references, (such as Camarillo State Hospital, Sea Bee
Naval Base, and the County of Ventura), the IBM /Kodak has an excellent
reputation for reliability. Some of these agencies have been using the
IBM /Kodak at more than a million per year for three years. The City
will grow into this machine and can expect at least five to seven years
of reliable photo copy production. IBM /Kodak also offers a long
standing quality service reputation and government finance options.
Under the IBM /Kodak "Copier Account Plan Agreement" with the State of
California, Moorpark, as a subdivision of the State, is entitled to
discount pricing. The City could purchase the machine for $34,688.50,
or select from two finance options. One option, the "installment
payment" plan would allow the City to place a $20,000.00 down payment,
which was appropriated in FY 1988/89 ($12,000.00 from fund 01,
$8,000.00 from fund 41), and make two installments of $8,349.00 in July
1989 and July 1990. The second option is an installment lease, where
the City would make monthly payments for 36, 48 or 60 months. Both
finance options are based on a 9% interest rate. Calculations based on
the City's current interest of 8% on investments, indicates that the
actual difference between the purchase and the two finance options is
less than $800.00. The least expensive option for the City is the 36
month installment lease plan which could save the City approximately
$650.00 when compared to purchasing the machine for cash. This plan
provides for a $1.00 buy -out option at the end of the term, and a
"nonappropriation of funds" clause unique to government financing, (the
"nonappropriation" clause allows public agencies to terminate the
lease, with ten days notice, in the event funds are not appropriated
for the remaining lease installments).
The IBM /Kodak has a six month warranty which includes all expenses
except toner and paper. At the end of the warranty period, the City
will need to enter into a service agreement. IBM /Kodak is the only
company currently servicing the Series III 85 because technical
training is not economically feasible for vendors to pursue. IBM /Kodak
offers a three hour response time and a comprehensive service plan
which includes parts and labor. The cost of this agreement is $310.00
per month minimum, or .0064 per copy charge. Service costs are
currently disbursed as 45% Administration, (01- 1117 -622), 45% Community
Development, (41- 1131 -622), and 10% Recreation, (33- 1148 -622).
For budget purposes staff calculates that the City will need to
appropriate $8,328.00 for the IBM service and $3,320.00 for the
existing machine based on 100,000 copies per month, (divided as 60,000
per month for the IBM and 40,000 copies per month for the Canon 7550).
The funding for these costs can be broken down as follows for the
fiscal year 1989/90: 45% to 01- 1117 -6224 for $5,241.60; 45% to
41 -1131 -622 for $5,241.60; 10% to 33- 1148 -622 for $1,164.80. The
existing service agreement for the Canon 7550 will need to be amended
for a lower volume, (from 60,000 copies per month currently to 40,000
copies per month), once the IBM /Kodak is installed.
XEROXA /CHRONI PJR:DST:CM:crl
January 26, 1989
page 4
commendation:
1) That the City Council authorize the Mayor to sign the
installment lease agreement for IBM /Kodak Series III 85 $1,093.73
(which includes sales tax of $61.91 per month) for thirty six (36)
months for a total purchase price of $39,374.28.
2) That the City Council authorize the City Manager to sign the
service agreement of $310.00 per month minimum or .0064 cents per
copy per month after the six month warranty expires.
Attachment: Specification Spreadsheet MOORPA":!:, CA.i.FrDRNIA
City Counc�, :A.r 33,::g
DR /ls
XEROXA /CHRONI PJR:DST:CM:crl
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