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HomeMy WebLinkAbout15.C.2. Copier Lease JS:C.2, CITY OF SHAKOPEE COMfF'>c"'~'r . '~ij~tjtlV' MEMORANDUM " . ",.. .. L, " To: Mayor and City Council Mark McNeill, City Administrator From: Mark Themig, Facilities and Recreation Director Meeting Date: March 16,2004 Subject: Copier Lease INTRODUCTION The lease and service agreement for the Parks and Recreation copier expires on March 29th. I am recommending entering into a lease agreement with Metro Sales for a Ricoh Afficio 2238C Color Digital Imaging System. BACKGROUND The City entered into a lease agreement for our current copier in 2000. This copier operated well during the first two years of the lease, but has been plagued with breakdowns as our volume increased over the past two years. In 2003, the vendor rebuilt most of the copier in an attempt to resolve the breakdowns. Although it helped initially, the frequency of breakdowns appears to be increasing. DISCUSSION Barb Potthier, Customer Service Representative, and Judy Techam, Secretary, have been researching copier options and obtaining copier quotes (Attachment A). Weare recommending that the City enter into a three-year lease and service agreement with Metro Sales for a Ricoh Aficio 2238C. This is a monochrome/color networked copier and printer. It has a number of features including multiple paper trays, scan to email or file, document server, and a facsimile module. A key advantage in this unit is new technology that provides a high-volume black and white copying rate, and a low-cost, no minimum color rate. The service agreement being proposed includes 204,000 black and white copies each year (17,OOO/month). Previously, we were billed quarterly for a set number, and usually exceeded this amount during the summer while not utilizing the full amount in the other seasons. By setting the copying volume at an annual amount, our high volume summer copying will be balanced during the winter months. Color copies are at $0.1 O/copy (a significant savings over other color copying services) and can be made available to the entire City. In discussing this option with the City's management team, we see the ability to reproduce color documents in~house at a significant savings an advantage to the City. The networked feature of this unit makes it accessible to other City staff as a color printer too, and we can track users and add restrictions to prohibit making unnecessary color copies. The unit's scanning function will also give us the opportunity to convert paper copies to electronic documents for use in posting information on the web and distributing information electronically. The unit will also serve as our fax machine, which is in need of replacement. Finally, the document server will allow staff to print frequently used forms and documents at the touch of a button. BUDGET IMPACT Based on our copying volume and current service agreement costs, we had included $750/month for copier leasing and service in our 2004 budget. The proposed lease and service agreement for this unit is $536/month for equivalent volume. As I understand, the service costs on copiers has decreased significantly due to new technology. We are recommending continuing with the lease arrangement in order to eliminate a significant one-time budget impact, but reducing the lease term to three years. This will allow us to upgrade more frequently to meet our growing volume. The service agreement includes all copier maintenance and repair, and all color/black and white copying supplies except for paper and staples. All other features are included in the lease. ALTERNATIVES 1. Enter into agreement with Metro Sales for lease and service contract on a Ricoh Aficio 2238C. 2. Do not enter into the proposed lease agreement. 3. Table for additional information. RECOMMENDATION Alternative #1. RECOMMENDED ACTION If City Council concurs, authorize appropriate City officials to enter into agreement with Metro Sales for lease and service of a Ricoh Aficio 2238C Color Digital Imaging System. M~~ Mark Themig Facilities and Recreation Director 2004 COPIERS ............. I::. IVII::. I KU IVII::.IKU IKON BUSINESS BUSINESS SALES SALES IVIlta KIVIl,;;j l;.1U Klcon ~~,jO Savin 4045 Mita 5035 color Ricoh 2045 Color $390 doesn't $798 Price - 36 month lease $498.00 include copies/fax doesn't include copies/fax $495.37 $536.00 Copies per month - B&W not included in lease $153.00 17,000 $272 Copies per month - Color not included in lease 3,000 $270 Fax yes $34 $34 yes yes Scanner yes yes yes ? yes b&w/color Price - service included included included included included B&W 17,000 Copies included in service 17,000 17,000 Color 3,000 17,000 17,000 I::S& W ;.10 Copies per minute 45 50 31 45 Color 28 B&W.0105 .016 B&W Color .10 Overage charge 0.0099 0.009 .09 Color 0.0105 no volume commitment renuired on color Network Printing yes yes yes yes yes Adobe Reader Print Drive yes Automatic Document Feeder yes yes yes yes yes Duplex yes yes yes yes yes Multi Sheet Bypass yes yes yes 50 100 Paper storage 3500 3000 3000 2500 3000 Reduction/Enlargement yes yes yes yes yes Sorting, collating yes yes yes yes yes Staple, 3 hole punch yes yes yes yes yes ~torage Of frequentlY usea documents yes yes yes yes Parts/Labor/Maintenace yes yes yes yes yes T oner/Drums/Rollers yes yes yes yes yes Service Calls 2-6 hours yes yes 0-3 hours 0-3 hours Delivery, Installation, Training included included included yes yes . .. - .. .