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Home My WebLink AboutAGENDA REPORT 1996 0918 CC REG ITEM 10BCITY OF MOORPARK CITY COUNCIL AGENDA REPORT TO: The Honorable City Council FROM: Donald P. Reynolds Jr., Administrative Services Manager DATE: September 11, 1996 SUBJECT: Consider Replacement for the City's High Volume Copier Background 7 . �O ITEM 10* 19.) 3a8 . q_65) CC In October, 1988, the City entered into a 60 month lease /purchase agreement for a high volume copier made by IBM, to accompany the City's Canon NP7550 bought in 1985. The IBM 111 85 ( "IBM ") service and lease were purchased by Kodak, and the City has maintained a dual relationship with Kodak and various Canon copier dealers since this time. The total cost of the IBM was $44,140. Each year, as the IBM ages, the City pays more for fewer copies. In 1993, when the volumes peaked at 682,000 copies, the City paid approximately $300 per month for service. Now, at a volume of 255,900, the City pays approximately $500 per month for service. On July 31, 1996, Kodak discontinued service of the machine, having met their seven year obligation to support this equipment. The original goal of having a high volume copier was to produce the Council agenda. This IBM performed satisfactorily except that it would over -heat when duplexing. The City's decision to out - source the Agenda in 1994/95, coincided well with the aging IBM that would no longer duplex reliably. In 1990, the City bought a small copier (Canon NP2020) to accompany the Canon NP7550 and the IBM. The old Canon was moved into the Annex in 1991. Decreasing reliability of the IBM was part of the factors that led the City to purchase a new mid - volume machine for City Hall in 1993: a Kodak 95s. This was also a 60 month lease /purchase agreement. In 1994/95, three low to medium volume copiers were added to the City's inventory including: Canon NP4835- a low to medium volume machine for the Senior Center; Canon NP3325- a slightly smaller machine for AVCP, and; a rebuilt Canon 6060 for the Annex, moving the old Canon NP7550 to the Public Works Yard. The Canon 6060 and the Kodak 95s are the same medium volume machine, except for a few minor changes made by Kodak to the Canon equipment. Now, the City uses seven copiers, four at City Hall (one low, two medium and one high volume machine), and three off - premise. 0057 Attachment "A" summarizes the City's copy volumes since FY 1993/94. Copy volumes at City Hall decreased by 90,000 in 1994/95 when the Agenda was contracted for reproduction. However, the total copies being made in the City remained stable at between 1.17 to 1.16 million copies per year. The additional programs being managed by the Senior Center and the Arroyo Vista Community Center more than offset the reduction in volume at City Hall. Because the IBM can no longer handle the large projects, the Kodak 95s is functioning at a capacity higher than anticipated when originally purchased. The copiers at AVCP and the Senior Center are also operating at a 30 percent higher rate than anticipated. Attachment "B" illustrates how the copy volumes are being distributed, and shows the disproportionate relationship between the 95s and the IBM. For example, in 1993/94, the IBM was produced 64 percent of the City Hall work load, but only 22 percent last fiscal year. The Kodak 95s however, produced almost twice as much as the IBM (43 percent), and is a much smaller machine. Discussion Equipment Needs In April, 1996, staff estimated the cost of a copier to replace the IBM, using copy volume statistics to arrive at the conclusion that another medium volume machine could replace the IBM (based on the IBM's 1995/96 statistics). The NP6060 was bought in 1995 reconditioned for $10,000, and based on this is the amount, the Council appropriated $11,250, split as follows: Gas Tax Fund- $2,250; Community Development Fund- $3,000 and; the General Fund- $6,000. Since July 1, 1996, staff has evaluated the actual use of City copiers, (Attachments "A" and "B "), and has also looked carefully at specific copy jobs and needs. Staff has concluded from this analysis, that a dependable high volume machine would be more efficient for staff to use at the Senior Center for copying the Senior News letter, and for AVCP when marketing various youth activities. This would cause a shift in volumes from these centers to a high volume machine at City Hall, extending the life of these machines and stabilizing the current disproportionate ratios of use. A reliable high production machine will make more efficient use of staff time, which equates to lower reproduction costs. Even though the City contracts for agenda reproduction, the City Clerk's office requires large attachments to be copied in -house by each department. The two City commissions are scheduled to meet twice a month, and these agendas are also reproduced in- house. Public requests for City reports including the budget, environmental impact reports, and studies pertaining to the City's five specific plans, require frequent one time high volume copy jobs. 2 4jowtib As the City develops its plan to network City Computers, today wh di (will Ink directly equipment will be included. Copy machines are available to PC's in a network environment, and this technology may eventually reduce reliance on work station laser printers and mid - volume copiers: Tali copier. ier. These digital work-groups will include a fax, printer and low to medium volume digital p will then replace machines like the Kodak 95s, and the Canon NP6060, but won't replace the need to have a high volume machine. Based upon an evaluation of the four factors listed above (distribution of copy jobs, cost of staff to make copies, the continuing need to produce large copy jobs, and the development of future technology to reduce the City's reliance upon the current mid- volume machines), staff has concluded that at this time, with a similar machine capable of high volume duplex production. ithout solution equipment will allow the City to continue to expand public outreach programs limitations, reduce the staff and materials costs by du o the digital technology available the life of the existing mid - volume machines and fit into now and in the future. Equipment ptions Attachment "C" is a review of various copy machines comparing lease to purchase and the purchase of rebuilt machines versus the purchase nerl generalization, based upon the capacity of "Capacity" category on the spread sheet i , a g the machine to handle original documents, the speed of the machine, the paper supply, and the sorting abilities. Although mid - volume mac line isl'the NP85 model, rwhich away from this direction. The highest end of the Canon maximizes at the volumes specified for the Sharp, Xerox and Kodak products, and vices would not accommodate City needs over an extended that no cooperatipe are substantially higher than Xerox and Kodak, due to the purchasing options were made available to the City. This narrowed the focus to two vendors. Xerox and Kodak remain the most reliable high volume c d because of their dominance, they are able to secure pricing from the State and Los Angeles County that the City can take advantage of. For example, a new Canon NP6060 machine is $9,000 less from Kodak (Kodak 95s), than it is from a Canon dealer. This arrangement applies to high volume copiers as well. Staff evaluated the Kodak 2085 before buying the Kodak 95s in 1993. Like the IBM, it copies at 85 pages per minute, but will hold 100 pages in the feeder and duplex mode, compared to only 50 in the IBM. The Kodak is more powerful than the IBM, making It a more reliable duplex machine. 3 WOWS In 1993, the Kodak 2085 was priced at $36,700. With the State's Multiple Award Schedule, this cost has been reduced now to only $24,263. Kodak is offering a $2,000 credit for the old machine. The Xerox equipment handles the same volumes, at a higher cost for both the equipment and service, (applying pricing from the Los Angeles County), so Kodak is staffs preference at this time. If the Council concurs with the staffs conclusions, there will be a need to finance the difference between the $11,250 budgeted and the cost of $24,263, which is $13,013. Staff looked at lease options, which add as much as 38 percent to the original purchase prices, use of the Equipment Replacement fund, and the possibility of transferring the savings in service from the IBM, to the capital line item. The lease option has been eliminated because of the funding alternatives available. At an estimated cost of $500 per month, the annual service for the IBM currently included in the budget will cost $6,600. The month of July has been paid, but no additional payments are needed, leaving $6,000 available. The Kodak 2085 will use $1,500 of this savings, reducing this apparent surplus to $4,500. The IBM was scheduled on the Equipment Replacement inventory with a 10 year life in 1988. To date, $37,519 is available to replace this machine. The use of Equipment Replacement reserves appears to be more appropriate than relying on the current appropriation, and at this time, staff recommends using the Equipment Replacement fund to replace the IBM. The current budgeted monies could then be returned to the applicable undesignated fund balance in Gas Tax, Community Development, Redevelopment and General funds. The status of the Equipment Replacement fund is as follows: General Community Gas Tax Redevelopment Total Fund Development ` '2, y�,: ti<:R;yy:�iti �.i� }y�'t'�}}} Y.vi:\'�}}v : }i`.v }\.:.Y�\ Y "h '' T't }h }{:'tvtl•`w qq t ` {ii <' }: :: ,:: •.:,•.: • , r. n:. •ti{tti , w.v.:,v. 'Cn2v vrvvrvx:v. : }• } ^#t ,w.v. n:..:':::: {•: �} �t,' „�i:�x: <:L • •'xrv. ..;,; :t..tt„ •:.t+n:xvn:v,v t•..:•:::::::::......: y. t•:.;:; } ? }•:::•: }�•....:�v:`2:.:::::n� rvw.:vw. :::.:.: tv.::. :v.v.,v., •:.xv....t:.£Yti#ti {# # }Y;.t } }tin :,: v:::. Y#....... .... {.........: }yy }v.:.::n•.,v. •. :4:Y }#j} 7,504 5,380 4,416 37,519 Reserved for 20,219 the IBM Copier }: v, 'ti \. :v:}:Y'{{,•'v:`'' }W;•: { +•::vk :L {:4 }r:• {t {,� : �; 5.•. '' . { -, w,a.:j4y,{ ,: ,Y . \:, :�, >;.\ V. .: ti: 4}•;:.: yY :v }:•:y:.::v:::::•:r'r, }•ry;.,y .......................... . t.y; .�:.,.... h .:: :y..y:;•. ; ..;. '.. :yy::.; {': {;::;:•y }:. {,;.,y . ....:.::::.: ,,{{+,Y:,�y. t•. ?� \t:;,y:4:;,..:.;•.Y:: \:..tiyy: �.::;� +y'}:•} } }:- :y> }:•: � }:. �::: {�:: �' :::•.: �::::•: :..:::::::.::::................ {;:'tY}yx'{Y;. {L•:c•: :. :L}• }:Y:;: ;:::::: }.:y:�•y •y:L {.x;; <;; {. t ii��yyjj�,,.'•iy rv,#: ::. , ..h}. ', : +.:., {h ':Y:'..:h,.. .: .t....:..� :Y }::: {.:.:•. }:.:: ::.:.v . ...:.:.::.... t.- # �'v.,xt ;; ,vtit •'•,tiff..,...:::':: } \v t. :. }; },{' }�Y,•:. ,<::: >` ...... }.•`. .;; ............. ...... ::.:. t:::::.:::.v:..v {..: h• :... .,, {.r,:v.: {v' :tiff. ,v.Kt,:..:.x {v }ii:Y�i:vY_.�} }Y:r';:;:Y:�i' : ............. :.:: :.: :... :}:r t;. yx+ J:•}:.; .: }>:•y:�;.: >xL•:•>::.::::.: -.: v... ..... .::'•:.: .yv ::i: is ii J: {�. }... .. ::••. kkXh•:?.:tti,Y ` ::, \tti•: +..Y.:•rv, h. }},, ,.t#t }{ ;Y ":�tik::•`:•''.•`:`` "ti:Y{::: : {.Zr t`b {+�' ` �titi< � •{ }� } ;'.y,Y;: v:yyi2} }i•� ,#�� '':�'}vfih'tiv ;Y�y:k Ytti�ti}\Y }yYy ,ck}4,t•:•: {,.:ti } {:�.,.:..; „\•.. « {• nYii '� Yt}i:4:;: ,mot t. :7 "Reserve Balances" were established at the Council July 3, 1996, Council meeting. this meeting, the Fund 02 (Vehicle Fines) obligation was consolidated with Gas Ta a At and only 25 percent of the Community Development obligation of $68,220 was x, contributed. mm Despite the reduced copy volumes at City Hall, staff has concluded that a hi copier is still needed. By adding a new high volume copier to the City's invento volume e technology can be introduced as the existing machines reach their capacity. This can Try, new Y be accomplished using reserves in the Equipment Replacement fund freein current appropriation of $11,250 for other uses. 9 the That the City Council appropriate $24,500 from the Equipment Replacement the purchase of a Kodak 2085, (which includes the $2,000 credit for the IBM), fund for declare the IBM 111 85 as surplus equipment to be used a trade -in for the new and machine. Attachments: A) Copy Volumes B) Work Distributions C) Cost Analysis 5 CITY COPY VOLUMES 1993/94 1994/95 1995196 1071862 1176102 1163396 CITY HALL Volumes Since 1993 Purchased 5/1994 Company CANON Model FY NP4835 1993/94 Company - Model 5/1985 CANON 10/1988 KODAK KODAK 3/1990 CANON 12/93 6/95 79,992 FY IBM 111 85 5 NP2020 KODAK CANON 1993/94 95S NP6060 TOTAL 1994/95 57,936 46,188 682 101 333,910 113,484 540 218,341 ------ 0 --______- 1,071,862 1995/96 0 255,857 19, 495, 544,842 99 0 982,480 157 ,872 929,000 PUBLIC WORKS YARD Purchased mvd 6/95 Company CANON Model FY 1995/96 10,404 ARROYO VISTA COMMUNITY CENTER SENIOR CENTER Purchased 5/1994 Company CANON Model FY NP4835 1993/94 - - -_ p 1994/95 132,000 1995/96 144,000 Purchased Company 5/1994 Model FY CANON = = ='= NP3325 1993/94 - - - - -o - 1994/95 61,622 1995/96 79,992 COPY96AN. WK4 O2.0 4 CITY COPY VOLUME DISTRIBUTION FOR 1995/96 Purchased 10/1988 3/1990 12/93 6/95 5/1/ 855 5/1994 5/1994 Company KODAK CANON KODAK CANON CANON CANON CANON Model IBM 111 85 NP2020 95S NP6060 NP7550 NP4835 NP3325 TOTAL ACTUAL PERCENT 22% 2% 43% 14% 1% 12% 7% VOLUME 255,857 19,872 495,399 157;872 10,404 144,000 79,992 1,163,396 PER MONTH 21,321 1,656 41,283 13,156 867 12,000 6,666 96,950 PREFERRED VOLUME - -- RATIOS 55% 1% 15% 15% 1% 8% 5% 1 PREFERRED VOLUME BASED ON 95/96 639,868 11,634 174,509 174,509 11,634 93,072 58,170 1,163,396 PER MONTH 53,322 969 14,542 14,542 969 7,756 4,847 96,950 COPY96AN.WK4 VENDOR MAKE MODEL REBUILT CAPACITY COST SERVICE TOTAL KODAK KODAK 95S NEW MEDIUM 12047 5548 17595 COPIERLINE CANON NP6060 NEW MEDIUM 21016 6400 27416 LAZER COPY CANON NP6060 REBUILT MEDIUM 13406 5760 19166 COPIERLINE CANON NP6060 REBUILT MEDIUM 8146 6400 14546 COPIERLINE CANON NP8530 REBUILT MED /HIGH 9969 6400 16369 ADV. COPY SYS SHARP SD -3075 NEW MED /HIGH 20860 8954 29815 COPIERLINE CANON NP8530 NEW MED /HIGH 24555 6400 30955 ADV.COPY SYS. SHARP SD4085 NEW MED /HIGH 45040 7675 52715 XEROX XEROX XEROX 5385 NEW MED /HIGH 29195 6000 35195 XEROX XEROX XEROX 5680 NEW MED /HIGH 34055 5860 39915 KODAK KODAK KODAK2085AF NEW MED /HIGH 24263 1897 26160 c e COPY96AN.WK4