HomeMy WebLinkAboutAGENDA REPORT 1985 0219 CC REG ITEM 12H +' a
MOORPARK
ALBERT PRIETO STEVEN KUENY
Mayor PPK °, City Manager
JAMES D. WEAK oPV X91 CHERYL J. KANE
Mayor Pro Tern f • City Attorney
THOMAS C. FERGUSON
NIALL FRITZ
Councilmember Director of
DANNY A. WOOLARD n o° Community
o Development
Councilmember 9OOq,T.o ��� " R. DENNIS DELZEIT
LETA YANCY-SUTTON
City Engineer
Councilmember
DORIS D. BANKUS JOHN V. GILLESPIE
Chief of Police
City Clerk
JOHN C. GEDNEY
City Treasurer
M E M O R A N D U M
TO: The Honorable City Council
FROM: Steven Kueny, City Manager
DATE: February 15, 1985
SUBJECT: Up-Grading of Copier
RECOMMENDATION:
I have reviewed the City Clerk' s report and concur with the
12-month lease/purchase proposed for the Canon NP500AF copier
and the annual maintenance agreement with More Copy Systems, Inc . ,
and recommend the three actions as recommended in her report.
attachment
799 Moorpark Avenue Moorpark, California 93021 (805)5 29-6864
MOORPARK
ALBERT PRIETO STEVEN KUENY
Mayor OPPK °gc,to City Manager
JAMES D. WEAK o°P v1
CHERYL J. KANE
Mayor Pro Tern F • City Attorney
THOMAS C. FERGUSON
NIALL FRITZ
Councilmember O Director of
DANNY A. WOOLARD °o : envelopment
Councilmember a
LETA YANCY-SUTTON �Q•*.o ��` w R. DENNIS ELZEIT
Councilmember City Engineer
JOHN V. GILLESPIE
DORIS D. BANKUS Chief of Police
City Clerk
JOHN C. GEDNEY
City Treasurer
M E M O R A N D U M
TO: Steven Kueny, City Manager
FROM: Doris D. Bankus, City Cler
DATE: February 14 , 1985
SUBJECT: Up-Grading of Copier
BACKGROUND:
At the City Council meeting of November 2, 1983, the City entered
into a 12-month rental agreement with More Copy Systems, of Ventura,
for a Canon Copier, Model No. NP300AF, which has continued on a
month-to-month basis. The terms of this agreement are a monthly
charge of $320 for allowance of 7000 copies per month, and in excess
of 7000 copies, $. 012 per copy. As the City has grown, the volume
of paperwork has also expanded, and we are now more than doubling our
copier monthly cost because of the excess charges. Therefore, we
have concluded we are now at the point we should up-grade the copier
capabilities, and obtain greater efficiency with a faster, more
sophisticated copier.
Our experience with the Canon 300 has been very satisfactory, as has
our experience with More Coipy Systems (the lessor) through their
maintenance of the machine. Based on that experience, we arranged
for a Canon Copier NP500AF to be brought in for a trial. We have
had the machine for approximately two weeks as of this date, and
already have run in excess of 16 , 000 copies. This was an exceptionally
heavy period because of the large Council packet for your last meeting.
Our current monthly useage is averaging 15, 000 copies, with a pro-
jection of approximately 20, 000 copies within the next year.
In comparing the two models, we note the following benefits :
799 Moorpark Avenue Moorpark, California 93021 (805)529-6864
Steven Kueny, City Manager
Page 2
February 14, 1985
NP500AF (new one) NP300AF (old one)
50 copies per minute 30 copies per minute
automatic exposure N/A
single sheet by-pass (to allow
easier copying on more exotic
paper) N/A
higher copy allowance (20, 000) 7, 000 copy allowance
2 modes of reduction, 64% & 750 1 mode of reduction, 640
1 mode of enlargement N/A
stand-by mode (cuts power
usage and noise pollution) N/A
color capability (brown and
blue, if desired) N/A
Add to that the ease of daily maintenance by the key operator - the
new copier is much easier to clean and maintain.
The alternative of having more sophisticated equipment would be in
the heavy print-shop type of equipment, however, we have been advised
that if our workload gets to the point where we have a back-log of
work needing to be copied, we should consider a second machine instead
of a commercial copier, and locate it in another area in the City
offices.
In our research we considered a duplexing copier, but feel that the
added cost and inconvenience would not be off-set by the small savings
we would realize in paper costs, for the following reasons:
The only savings would be in the cost of the paper. At the
present time we are paying approximately $. 005 per sheet for
our paper. Assuming our average copying volume is 15, 000
copies per month, and assuming that one-half of our copying
would be duplexed, the monthly savings on paper alone would
be only $75. 00. That savings is more than off-set by other
factors which should be taken into consideration, as follows:
(a) The duplexers on the market today, which fall
within the same category as the Canon 500, cost in the
neighborhood of $12, 000 to $15, 000, depending on the brand.
(b) The service agreement on a duplexer would be
approximately $2000 per year, as compared to $1620 for the
Canon 500.
(c) Duplexing is done at the rate of 312 to 4 copies
per minute per sheet of paper (both sides copied) , as compared
to 50 copies per minute on the Canon 500.
Steven Kueny, City Manager
Page 3
February 14, 1985
(d) When copying from two-sided to two-sided (duplexing)
copy, the operator is required to physically handle each
sheet of original copy twice, which adds considerably to the
copying time.
(e) The holding bin for the copies already made on one
side and waiting to be copied on the other side, has a capacity
of only 50 sheets.
(f) Greater portential for down time because it is a
more sophisticated piece of equipment.
(g) Duplexed documents, once fastened into a file, are
much more difficult to read, because of the awkwardness with
which the file has to be turned and/or handled.
We have discussed other machines with current users, and have compared
costs, and recommend that we purchase the upgraded Canon Copier,
Model NP500AF, and stay with More Copy systems for maintenance under
the standard service agreement, as proposed in the attached quotation.
We have obtained two quotations from More Copy Systems for the Canon
NP500AF copier, one for Lease/Purchase and the other for an interest-
free 12-month lease/payment plan. A copy of the quotations is
attached, and you will note we have received a "Preferred Customer
Discount" , which is $574 less than the government pricing we would
normally enjoy.
We recommend purchase of the equipment rather than lease, for the
reason that, projecting over a 36-month period of time, under the
lease the rental cost of the machine, which includes service, would
be a total of $12, 793. The purchase price in the quote we received
today from More Copy Systems would be $9 , 746 . 70. After the purchase
of the machine is completed, our only cost would be the service
agreement at approximately $1620 annually.
RECOMMENDATION:
1 . Authorize the purchase of Canon Copier Model NP500AF, under the
12-month, interest-free payment plan, as follows:
Preferred customer discount $ 7, 295. 00
15-bin sorter 1, 400. 00
2000 sheet paper deck 300 . 00
Console 200. 00
Total 9 , 195. 00
Sales tax 551 . 70
Service Set-up and Intial
Supplies 52. 50
TOTAL COST OF COPIER $ 9, 799 . 20
Steven Kueny, City Manager
Page 4
February 14, 1985
2. Authorize the execution of annual service agreement, as quoted,
including drum replacement, at . 009G per copy, for the total
of approximately $1620 annually (paid in monthly installments) .
3. Appropriate from the General Fund Reserve Account the amount of
$4, 435. 45, to cover first and last month' s payment, plus three
additional months for the remainder of this fiscal year, with
the balance of $5, 363 . 75 to be budgeted in fiscal year 1985/86.
attachments.
v
more Wsystemone.
February 14 , 1985
City Of Moorpark
733 Moorpark Avenue
Moorpark, CA
ATTN: Doris Bankus
RE : Due year interest free payment
plan on an NP500AFSD Copier
Dear Doris :
In order to prevent the high interest and financing charges
for a short term lease , More Copy Systems have devised a program
that makes it very easy to begin and eliminates an interest or
financing charge or even penalties for early buy--out .
Here ' s how it works :
Canon NP500 Copier with Automatic Document Feeder_ , 15 Bi =
Sorter , 2000 Sheet Deck & Console .
$9 , 195 . 00
6% Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . 551 . 70
Sub-Total . . . . . . . . . . . . . . . . . . . . . . . . $9 , 746 . 70
Service Set-up & Initia_l Supplies 52 . 50
Total Investment . . . . . . . . . . . . . . . . . $'9_, 799 . 20
12 Month Pavrrient. Plan
$9 , 1 5 . 00 t 12 months = $766 . 25 monthly investments .
Deposit Required To Start The Plan
First & Last Pavment - $766 . 25 x 2 = $1 , 532 . 50
Sales Tax. . . . . . . . . . . . . . . . . . . . . . . . . = 551. 70
Service Set—up & Initial.- Supplies . = 52 ._50
Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . $2 , 136 . 70
And then 10 monthly payments of $766 . 25 Each.
!!rz! Canon
Authorized Dealer.
1001 Mark Avenue,Carpinteria,CA 93013(805)684-7721 302 N.Russell Street,Santa Maria,CA 93454(805)922-0407
5574 D Everglades Street,Ventura,CA 93003(805)656-6673 297 C-Santa Rosa Street,San Luis Obispo,CA 93401 (805)544-3038
3475 Old Conelo Road,Suite C-3,Thousand Oaks,CA 91320(805)499-2628
more V11 systems,inc.
NP500AF
Preferred
Retail G. S.A. Customer Discount
NP-500AF. . . . . . . . . . . . . . . . . . $8 , 195 . 00 $7 , 489 . 00 $7 , 295 . 00
Sorter III - 15 Bin . . . . . . . . 1, 500 . 00 1 , 400 . 00 1 , 400 . 00
Deck 2000 Sheet . . . . . . . . . . . . 795 . 00 675 . 00 300 . 00
$10 , 490 . 00 $9 , 569 . 00 $8 , 995 . 00
Please add $200 . 00 in each column for the copier console .
$105 . 00 charge for installation and initial supplies .
Cash purchase 50 % upon delivery. Balance in 30 day or payment in full
upon delivery.
LEASE/PURCHASE: Option
10% deposit to start agre ent .
$1. 00 Buy-out option a he end of terms .
Example:
$8 , 995 . 00 10% deposit of $953 . 47
539 . 70
$9 , 534 . 70
TERMS:
36 mon s - $355 . 64
48 m the - $289 . 17
60 onths - $249 . 81
ith the lease option you are able to conserve cash flow.
SERVICE
Is taylored to your annual generated copy volume and set at
a base of . 0085 per copy.
Example:
15 , 000 copies per month = 180 , 000 copies per year x . 0085 = $1530
for your annual maintenance agreement . Includes all parts and
labor and travel plus preventive maintenance calls at every 20 , 000
copies . To include drum 00
M Canon
Authorized Dealer.
1001 Mark Avenue,Carpinteria,CA 93013 1620 Mesa Verde Street, Suite C,Ventura, CA 93003
(805)684-7721 (805)656-6673
4129 State Street, Suite B, Santa Barbara, CA 93110 3475 Old Conejo Road, Suite C-3,Thousand Oaks,CA 91320
(805)684-7721 (805)499-2628