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Home My WebLink About4.d. Copy Machine Leases ; ' CITY OF ROSEMOIINT EBECUTIVE SIIMMARY FOR ACTION CITY COUNCIL MEETING DATE: APRIL 5, 1994 AGENDA ITEM: COPY MACHINE LEASES AGENDA SECTIONt CONSENT pREpARED BY� ADM NISTRATIVE ASSISTANT AGENDA �� ATTACBMENTB: MEMORANDUM, COST ANALYSIS, APPROVED BY• PRODUCT COMPARISON This is a recommendation for Council to consider approving lease agreements I for copy machines for the main copy room in city hall and for the police I department. I The recommended machines are Sharp copiers and would be leased from D. C. '� Hey in Bloomington, MN. I am proposing that the city enter into a lease program called a 36-month stretch. This means payments are amortized over 42 months, but the city would have the option of purchasing the equipment or upgrading at the end �li of 36 months. The city can also continue leasing until the end of 42 months at which time the city can purchase the machine, return it at no cost or continue leasing. �� The lease payment for the two copy machines is $738 a month. For nine ' months in 1994, the total lease cost is $6642. For 1995 and subsequent years of the lease the total lease cost is $8856. The amount budgeted in the General Government Account is $8,000. My goal was to stay under this ' amount or close to it even with leasing a machine for the police department ', which wasn't in the budget. Also in the General Government Budget is a line item for maintenance and supplies. Maintenance agreements are based on a per copy cost. The maintenance agreement cost on the existing machine is . 0118. The negotiated maintenance agreement cost for the new machine is .0098. Based , upon 40,000 copies a month, the savings per year would be $960. This savings would cover the $856 overage. The only alternative would be to go with a 48-month lease which has a lease cost equivalent to 16.5� interest; where the 36-month stretch lease has a lease cost equivalent to 6.4� interest. The monthly cost for 48 months is $697 or $8, 364 a year. RECOMMENDED ACTION: MOTION TO ENTER INTO LEASE AGREEMENTS AND MAINTENANCE AGREEMENTS WITH D. C. HEY FOR TWO SHARP COPY MACHINES ACCORDING THE TO THE MONTHLY COST AND PER COPY COST DESCRIBED IN THE MEMORANDUM DATED MARCH 31, 1994 FROM THE ADMINISTRATIVE ASSISTANT. ( I , 4��'�', CITY OF ROSEMOU NT Z8�5-`;�t"AeetW�t �', P.O.Box 510 Ever thin 's Comin U ROS2mOUCit�� Rosemount,MN II y 9 9 p 55068-0510 Phone:612-423-4411 Fax:612-423-5203 M E M O TO: Mayor McMenomy Councilmembers Anderson, Wippermann, Staats, Busho , FROM: Susan Walsh, Admin'istrative Assistant � I DATE: March 31, 1994 SUBJ: Leasing of Copy Machines This is a recommendation for Council to consider the leasing of two copy machines. One machine will replace the Pitney Bowes copy machine which is in the copy room for all departments to use, and the second machine will be for the police department. The current machine in the copy room would go to the Community Center. I am proposing that the City enter a lease agreement with D. C. Hey for the follawing: Sharp SD-3062: List Price: $28,500 Purchase Price $18,680 36 Month Stretch Lease $568/mo. Sharp SF-2027 List Price: $ 9,060 Purchase Price $ 5,445 36 Month Stretch Lease 5170,/mo. Total Lease Amount $738/mo-. I have attached for Council review a summary of total cost analysis of the five companies who presented proposals on the larger machine. It was only recently that I learned the maintenance agreement on the police department copy machine was cancelled because of the age of the machine and lack of parts available. This company would only repair the machine on parts and labor at a minimum cost of $90/hour for just the labor, so I felt it was necessary to also look at a machine for the police department. I am recommending that Council consider leasing a new copy machine for the police department since the machine breaks down at least once every two weeks and repair costs would be extremely high. � �. Printedonmcycicdpaper containing 30% . �tconsumermarerials .. � I am also recommending that Council consider a new larger machine because the current machine cannot handle the 50,000+ copies/month; and therefore, there is considerable downtime on the machine. With the old machine going to the Community Center, I'm estimating the two departments will run approximately 20,D00 copies/months; and hopefully will work fine for the Community Center and Parks & Recreation bepartments. Part of this selection process was the demonstration of the Sharp 3062 and a Canon copier from CDP. After demonstrating both, there was a strong consensus by staff to go with the Sharp model. ' Also part of this process was to visit both companies and have ' considerable discussion with representatives from both companies. I was very impressed with the staff and operations of D.C. Hey, and this good impression also enters into my recommendation to go with them. As most of you know, purchasing or leasing a copy machine is only half of the process, the second half is selecting a company that you feel will provide good customer service and fulfill the commitments represented to you by them. I am also attaching a Product Comparison which summarizes the features of the different machines looked at in this process. In addition to agreeing to the monthly cost of leasing the machines, D. C. Hey also agreed on the following: (1) Ninety-day warranty before maintenance agreement costs start; (2) Maintenance and supply agreement for the larger machine, Sharp 3062, at a cost of $.0098 per copy; minimum of 25, 000 copies per month; (3) Maintenance and supply agreement for police department copy machine, the Sharp 2027, at cost of $. 0168 per copy; minimum of 3, 000 copies per month. If you have any questions regarding this matter, please feel free t o contact me. PRODUCT C�MPARISON � � 0 � � ,.:. _ _. � ;. __ _ ... _ _ . ,� S�tarp < Sbsurp., ` Konic� Pitney �awes Xecax Mint�Ra : >3Cerox':: , ; > ; , ,:, ; ;, _.-��$tuCB ;: Sf3-�p62 : $D,3Q75;: ; 5�$�} :7'OSO ;: �365 .. . , J76it) -.: :s�$5 ;; . �' ` . :. . :.. ,. . ... � ,� � Recommended Monthly 150,OOQ 150,000 150,000 150,000 125,000 175,OQ0 150,000 � Volume � First Copy Speed 5 Seconds 7 Seconds 4.5 Seconds 5 Seconds 7.5 Seconds 5 Seconds 13 Seconds °C � First Copy Speed using ADF 5 Seconds 9.5 Seconds 5 Seconds 7.5 Seconds 7.5 Seconds 6 Seconds N/A � � Copy Speed 62 cpm 75 cpm 80 cpm 70 cpm 62 cpm 76 cpm 80 cpm , �` � Copy Speed Using ADF 62 cpm 75 cpm 63 cpm 6o cpm 48 cpm 76 cpm N/A °c On-Line Paper Capacity 4,100 Sheets 3,500 Sheets 4,000 Sheets 3,500 Sheets 2,300 Sheets 2,000 Sheets 4,800 Sheets Auto Paper Selection with Mixed Sizes Yes No Yes Yes No Yes Yes Bypass Capacity 100 Sheets None 50 Sheets Sheet Optional 50 Sheets y Variabis Zoom 50-200°10 64-142% 50-155% 64-141% 64-142% 61-164% 5U-200°l0 � �v Preventive Maintenance �, (mini/fuil) None Set None Set 100,00� None Set None Set Fu11300,000 None Set y � Margin Shift Yes Yes Yes Yes Yes Yes Yes Edge Erase Yes Yes Yes Yes Yes Yes Yes Book Copy Mode Yes Yes Yes Yes Yes Yes Yes Finisher Yes Yes, No, 20-4� No, Yes, No, Yes Off-set Bin Sorter 20-Bin Sorter Off-set 20•Bin Drum Life 250,000 500,000 300,000 280,00� 12Q,000 300,000 250,000 Developer Life 250,000 500,000 100,000 14Q,OQ0 80,000 600,000 N/A Dual Irnage Area No Yes No No No No No � 0 0 � Source: Minnella's, and Buver's Lab, Inc. o 0 N . � LEASE MARCH 7, 1994 Company Term Monthly Payment D.C. Hey 36-Stretch $ 568 . 00 , CDP 42-Months 975 . 00 Xerox 36-Months 866 . 01 Konica 36-Months 1, 035 . 00 Pitney Bowes 36-Months 518 . 60