3.4. SR 04-28-1997'ity of
iver
**ITEM 3.4. **
MEMORANDUM
TO: Mayor and City Council
FROM: Sandra Thackeray, City Clerk f~L
DATE: April 28, 1997
SUBJECT: Copy Machine Lease
The city has currently been leasing its existing Ricoh 7870 copy
machine. This is the large copier in the "copy room" and is used for
duplicating information for meeting packets. The lease for this
copier has expired and the city has the option of either buying the
existing machine or turning the machine back.
The buy out price for the existing machine is $3,133. When the city
leased this machine in 1992, it was the intent to consider a continual
lease program for future copy machines. This decision was made
due to several reasons; those reasons being:
· the city needs a high volume copy machine with many extra
features to carry the work load
· the cost of a high volume copier is extremely high
· copy machines have a low resale value
· the continual change in technology
Staff still concurs that it would be best to lease rather than purchase
a copy machine. There are currently approximately 40,000 copies
per month run on the present machine as opposed to 20,000 when it
was leased in 1992. Currently there have been 1.8 million copies run
from the existing copy machine. A copier begins to show its age
when the number of copies run on the machine exceeds the number
for which it was built. At this point the copy machine begins to wear
and it becomes somewhat inefficient.
Metro Sales has done an excellent job in servicing the existing
copier. The response time for service has been approximately 2
hours and the existing copier has averaged approximately 68,000
copies per service call. Because of the age and number of copies on
our copier, this number of calls has continued to rise. However, due
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 ° Fax: (612) 441-7425
to the excellent service response and service record, staff prefers to
contract with Metro Sales for its next copy machine.
Because staff is proposing to exchange its existing copier for a newer
model and continuing to lease, it is not a requirement to go out for
bids.
The administration budget contains $4,000 for a copy machine under
capital outlay expenses. Listed below is the information on the
copier that staff is requesting to lease.
RICOH 8680
48 MONTH LEASE PROGRAM = $833 per month
(Maintenance and Supplies = .0106 per copy...this would be a city
operating and supplies expense regardless of which model was
leased or purchased)
Following the 48 month lease program, the city has the option of
turning the copier back to Metro or buying it outright.
The cost to purchase this machine outright is $33,845.
ACTION REQUESTED:
Council motion to lease a Ricoh 8680 copy machine from Metro Sales
at $833 per month plus .0106 per copy with the funding for the lease
to come from the Administration Capital Outlay Budget.
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