Loading...
01-02-1996 - Replacement of the Press for the Print ShopCity of'Wat Covina Memorandum TO: City Council and City Manager AGENDA ITEM NO. J- 2 FROM: Finance; Department DATE January 2, 1996 ®PRINTED ON RECYCLED PAPER SUBJECT: REPLACEMENT OF THE PRESS FOR THE PRINT SHOP SUMMARY: The two Print Shop off -set presses are 14 and 24 years old. They are experiencing excessive downtime, and certain malfunctions are no longer repairable: Staff recommends replacing the two old presses with one new AB Dick. BACKGROUND: Reprographic Services is currently operating with three full-time employees (down from four at June 30, .1995). It is responsible for copying, printing, mail delivery, graphic design and copier related services. In addition, Reprographic Services provides staff support- in other related areas. The Print Shop has contracted with local printers for the printing of film negatives, embossing, computer output, four-color printing, plastic binders, tab cutting, envelopes, newsletters and major bindery operations, as these services can be provided to the City at a lower cost contractually without compromising service to the departments. As a result of continuous evaluation of in-house versus out -sourcing opportunities, the City retains certain printing jobs that can be provided internally at a lower cost and help meet the service needs within the City. Included in these services is one and two color off -set printing. The City currently operates two off -set presses (a one color Multigraphics press and a two-color AB Dick Press). The one color machine is 14, years old, and has well served the City. With the acquisition of the Docutec 90, however, this machine will rarely be used, if at all. The two-color press is. 24 years old and experiencing significant down time due to worn parts. We are no longer able to obtain a service contract that covers parts because of the age of the machine, and replacement parts are difficult to locate. Additionally, replacement parts are costing the City a lot of money each year. Continuing to operate with the current equipment is not a viable option. ANALYSIS: There are two manufacturers of high quality off -set presses that could potentially fit the needs of the C� � , AB Dick and Multigraphics. AB Dick manufactures off -set presses that are easier to use than those manufactured by Multigraphics. The staff in the Print Shop currently uses both AB Dick and Multigraphics equipment, and concur that the AB, Dick equipment to be the easiest, and most efficient equipment .to use. Furthermore, the staff could begin using a new AB Dick press with minimal training. Ease of use, staffs familiarity and satisfaction with equipment, and the reduction of staff in the Print Shop, support the purchase of an AB Dick Off -Set Press. Staff has evaluated the AB Dick Off -Set Presses that are comparable to the current two-color press now used, and found the AB Dick 981OXCS with a T51 color head to best fit our needs. This machine uses a "Super Aquamatic Alcohol Dampening System" of printing (available exclusively on AB Dick equipment) that provides rapid ink drying and sharper colors. The press will produce two color prints twice as fast as the other presses, has a larger paper capacity, and has a larger printing service. t Press for Print Shop Page 2 0 FISCAL BOACT We can purchase a new AB Dick 981OXCS ' with a T51 color head for $31,641.79. The above pricing for the purchase of AB Dick equipment reflects Corona -Norco Unified School District (District) contract bid number 1995/96-01, which AB Dick has agreed to extend to the City. The District's bidding process is at least as stringent as the policy used by the City. Staff feels that it would be impractical and uneconomical to initiate a formal bid process. Staff expects that this equipment will serve the City for at least 151, years. If the cost of the machine were annualized over its expected useful.life, the cost would be $2,109 annually. Purchasing a New AB Dick press will save the City money in service and replacement parts. The City currently is paying $2,122 in service agreements on ' its two off -set presses. These agreements cover quarterly routine maintenance of the presses and labor only on other service calls. The City spent an additional $1,096 in uncovered parts to keep the presses operating over the past. year. The service cost on the new press which covers all labor and materials and increases the frequency of routine maintenance to bi-monthly from quarterly would be $1,204, a savings of $2,014 annually. Funds are available to purchase the AB. 1)ick9810XCS in the current Print Shop budget. CONCLUSION Purchasing of the AB Dick affords the City Ian economical way to replace its two antiquated and often inoperable off -set presses with one new reliable machine that uses the newest technology and will serve the City well into the 21st century. This equipment will make staff more efficient, and enhance the quality of our work products. Thus, it is determined to be the best solution for the City's off-sei press reproduction needs. 1 Staff recommends that council A) Find that the Corona -Norco Unified School Districts bidding process is at least as: stringent as the process used by the City, and the District bid no. 1995/96-01 satisfies the formal bid process per West Covina Municipal Code Section 2-333, and justifies the waiver of the formal bid process (Section 2-330 of the Municipal Code) for purchase of the AB Dick 981OXCS at the District's bid price furnished by AB Dick. B) Approve the purchase of the AB Dick 981OXCS and allow the Finance Director to issue a purchase order. j C) Declare the City's AB Dick 375 and Multigraphics 1218 off -set presses surplus and approve sending the equipment to public auction. Margie Tuc er Accounting Manager REVIEWED AND APPROVED BY: msoffiice\winword\files\staffrpt\press. doc