01-02-1996 - Replacement of the Copier for the Print Shop• City of West Covina
Memorandum
TO:
FROM:
SUBJECT:
City Council and City Manager AGENDA
ITEM NO. J-1
Finance Department
DATE January 2, 1996
® PRINTED ON RECYCLED PAPER
REPLACEMENT OF THE COPIER FOR THE PRINT SHOP
SUMMARY: The print shop copier is 11 years old and is experiencing excessive downtime.
Staff recommends the lease -purchase of a fully networked Xerox Docutech 90
which will increase productivity with the newest technology.
BACKGROUND:
Reprographic Services is currently operating with three full-time employees 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 are large photocopy jobs. The City currently uses an
antiquated Xerox 9900 high speed photocopier to print over 2,000,000 photocopies per year. This
copier is 11 years old and is owned by the City. Because of the age and poor condition of the
copier, the City continually experiences excessive downtime and the quality of the copies is poor.
Xerox can no longer guarantee immediate availability of repair parts. The departments need quick
turnaround and good quality copies to meet the public and organization's . needs.. When the high
speed copier we now use .is down for repairs, large print jobs are being sent to outside companies
and small print jobs are being reproduced on satellite copiers, at nearly double the cost of printing in
the Print Shop. Continuing to operate with the current copier is not a viable option.
ANALYSIS:
Throughout the past year, staff has looked at various options for providing photocopying services to
the City Departments. An extensive analysis was conducted and we have loo1ibsd forward to the
conclusion of this process. We consulted with a special committee, which consisted of
representatives from the departments that use the Print Shop the most. With the input from the
special committee, we considered cost and service levels for each option, as follows:
Facilities Mana eg ment
Under the facilities management concept, a private organization would replace the existing
photocopier with a new Xerox Docutech 90 or a Used Xerox Docutech 135 and provide a trained
technician to operate the machine. We would in turn, lay-off one of the City's employees. and
transfer ownership of the old copier to the management company. Accordingly, we would have no
equity in the machine placed in our Print Shop.
Copier for Print Shop
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We received proposals from two companies
Alco Management Services(used Docutech
arrangement are that the vendor would take
timely basis, regardless of whether the mai
provide coverage for sick and vacation days i
most expensive.
Under this scenario, the vendor would pick u
would photocopy all jobs at their location on
staffing its own Print Shop and for equipmen
seven days per week, 24 hours per day. The
and control over print jobs. The City wo
immediately. We received one proposal for
for the first year of the contract; however, di
replacement equipment, the option became d
immediate turn -around for urgent jobs, it i
increase dramatically.
Lease -Purchase New Or Used Equipment
Xerox Business Services (New Docutech 90), and
135). The benefits of the facilities management
-esponsibility for ensuring jobs were completed on a
tune placed in our Print Shop was operational and
)r the technician. This. option, however, was also the
and deliver photocopy jobs twice a day. The vendor
heir equipment. The vendor would be responsible for
maintenance. Services would be available to the City
ity, however, would lose its current level of flexibility
Id also eliminate the ability to process urgent jobs
ich service from Kinko's. Kinko's bid was very low
to price escalators built into the bid, over the life of
> second most costly. Additionally, due to the lack of
likely that the use of costly satellite copiers would
Replacing equipment * in the Print Shop retains the flexibility 'and service level required by City
Departments to meet their needs. Two companies manufacture high speed copiers that would fit the
Print Shop volume. After defining our needs, however, it was determined that Kodak equipment did
not have the flexibility to meet the City needs. Thus, we turned to Xerox products. We evaluated
the following three Xerox machines: the 53.90, the Docutech 90 and the Docutech 135. Lease
purchasing any of the machines will increase) Print Shop productivity, reduce the volume of costly
satellite copies and improve the quality of printed documents Citywide. The differences between
the machines areas follows:
* SuRPLus oLD EQUIPMENT FOR TRADE-IN AND LEASE PuRCHASINGNEW EQun%mNT OVER six YEARS.
XEROX 5390
The 5390 is a newer version of the high-speed copier we now own. It works on the older "lights and
mirrors" technology to produce copies. Benefits of upgrading to the 5390 are:
• The 5390 copies onto. ledger, legal and letter size paper; providing flexibility;
• The 5390 has anonline binding system;
• The 5390 allows print jobs to be pre progran
• The 5390 has a large paper capacity; and
• The 5390 produces at 135 copies perjminute.
The technology of the 5390, however is not digital. Thus, multiple tasking (running several print
jobs simultaneously), networking with the City's computer system and scanning and correcting
documents in the print shop are not available. ' Additionally, . since' the 5390 uses the older
technology of lights and mirrors, Xerox will not commit to servicing the machine beyond seven
years, although they have indicated that they will likely be able to service it longer.
XEROX DOCUTECH 90
The Xerox Docutech 90 (Doc 90) is a high speed copier that uses new digital and laser technology
that would be integrated into the City's computer network. Benefits of the Doc 90 are:
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a. Copier for Print Shop
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• Print jobs can be sent to the print shop electronically from personal computers in individual
departments, eliminating the need to hand carry jobs to the Print Shop, thereby making
staff more efficient;
• Print jobs can be stored in the machine's computer and printed as needed, freeing up bulk
storage space;
• Print jobs can be scanned and stored for printing as needed;
• Print jobs can be pre-programmed;
• Corrections to jobs stored in the machine's computer can be processed in the Print Shop,
rather than returning jobs to the originating departments for corrections;
• Jobs can be brought to the Print Shop on floppy disk;
• Multiple -tasking allows simultaneous printing, scanning and correcting of different print
jobs with a single operator;
• Flexibility will reduce the use of costly satellite copiers at substantial savings to the
departments (Industry experts project a 10% decline in the use of satellite copiers);
• Digital copies printed with laser technology (600 x 600 DPI) are clearer than traditional
lightsand mirror photostatic copying technology;
• The Doc 90 can be upgraded to a Doc 135 by replacing components over time; and
• Support of the Doc 90 will be guaranteed over the ten-year life of the machine.
On the negative side, the Doc 90 only produces about 90 copies per minute, is not capable of
printing onto ledger size paper, and does not have an on-line binding function.
Attached is information on the Doc 90 provided by Xerox to help you better understand the Doc
90's abilities and how it will benefit the City.
XEROX DOCUTECH 135
The Xerox Docutech 135 combines the high speed and finishing benefits of the 5390 and with the
digital, networking and laser technology benefits of the Doc 90 into one machine, that unfortunately,
is extremely costly.
FISCAL EMPACT
We isolated costs within the print shop that relate to the high-speed copying function. We compared
the costs under each of the scenarios over the first seven of the ten year estimated life of a lease -
purchased machine as follows:
FIRST
AVERAGE
YEAR
7 YEAR
ANNUAL
OPTION
COST
COST
COST
Xerox Facilities
Management
$220,248
$1,674,130
$239,161
Alco Facilities
Management
251,472
2,068,698
295,528
Out Sourcing
187,412
1,688,908
241,273
Lease -Purchase New
Xerox 5390
192,608
1,522,687
217,527
Lease -Purchase New
Xerox Doc 90 (a)
205,941
1;655,088
236,441
Lease -Purchase Used
Xerox Doc 135 (b)
229,931
1,771,632
253,090
(a) 1HE PURCHASE OF A NEW DOC 9U IS CHEAPER THAN A USED DOC 90 BECAUSE THE CITY CAN PIGGY -BACK ON THE COUNTY OF Los ANGEL.ES'
CONTRACT PRICINq THERE IS THREE MONTHS OF FREE SERVICE ON Doc 90S PURCHASED BEFORE DECENMER 31, 1995, AND GOVERNMIiNfAL LEASE
RATES ARE NOT AVAILABLE ON USED EQUIPMENT.
(b) TIE LEASE PURCHASE OF A NEW DOC 135 WOULD INCREASE PAYMENTS APPROKMATELY $28,800 PER YEAR.. There is money
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Copier for Print Shop.
Page 4
i,
available in the current Print Shop budget fc
90, which includes staff training, installa
anticipation. of this decision, the Print Shop
This position covers the cost of the lease pay:
purchase contract the City can "fund out" (car
the lease -purchase of the fully networked Docutech
)n and network modification, as necessary. In
iminated one position at the beginning of the year.
ent. Additionally, under the terms of a Xerox lease -
el) the lease in any year that funds are not available.
The above pricing for the lease -purchase of Xerox equipment reflects Los Angeles County (County)
contract bid number 010580107, which Xerox has agreed to extend. to the City. The County '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. The cost of the fully networked
Docutech 90, after an $18,000 in -trade in allowance is $154,350. In comparison, the cost of the 11
year old Xerox 9900 after trade in allowance was $131,300.
CONCLUSION
Lease purchasing of the Docutech 90 under
an economical way to replace its antiquat
reliable machine that uses the newest techn
This equipment will well serve the City's cc
efficient, and enhance the quality of our
solution for the City's high speed copier net
RECOMAMNDATION
Staff recommends that council:
rox's Governmental Contract Pricing affords the City
and often inoperable high-speed copier with a new
gy and will _ serve the City well into the 21 st century.
ing needs into the foreseeable future, make staff more
rk products. Thus, it is determined to be the .best
A) Find that the Los Angeles County's bidding process is at least as stringent as the process
used by the City, and the County bid no. 010580107 satisfies the formal bid process per West
I.
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 Xerox Docutech 90 at the County
bid price furnished by Xerox.
B) Approve the lease -purchase of the fully networked Docutech 90 and allow the Fiance
Director to negotiate a contract with Xerox for the lease -purchase under a government
contract with Xerox.
C) . Declare the City's Xerox 9900 surph
lease -purchase of a new Docutech 90.
6-k �
Margie Tuc er
Accounting Manager
msoffice\winword\files\general\copier.doc .
and approve its use as trade-in applied toward the
REVIEWED AND APPROVED BY:
6r.Gl
Abrah . Koniarsky
Finan a Director
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