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HomeMy WebLinkAbout1983-09-06; City Council; 7486; Duplication Equipment0 ,0 0 r� 0 �H r8 U Z C) 4 Z 0 AID#__-'Z--- TITLE: r RECOMMENDED ACTION: DUPL ICATION EQUIPMENT DEPT. HD. ak,--1 CITY ATTYlta CITY MGR.-e-""" Authorize and direct staff to proceed with replacement of the Xerox 7000 and 4000 copy machines with a Xerox 1075 and 1035; and to purchase two PDC copy control devices to be placed on the new copy machines. ITEM EXPLANATION: The two Administration copy machines (Xerox 4000 and 7000) were originally installed in 1972 on rental. In 1979, the two machines were reconditioned and purchased by the City. In January, 1984, those two machines reach the end of their guaranteed maintenance life. Continuing the operation of those machines will become very costly. In addition, new tech„ology would result in savings by reducing the amount of time currently required by employees to complete a copy job. A thorough analysis was performed on the high volume copy machines currently available and a copy of that analysis is on file in the office of the City Clerk. A brief summary is attached to the agenda bill. Finally, as we continue to strive to provide ways of developing true cost accounting, it is recommended that a copy control device be placed on the two City Hall administration machines. While there are no guarantees that the quantity of copies would reduce, experience has shown in the past that accountability has resulted in savings. FISCAL IMPACT: It is estimated that 4986 hours of staff time is spent each year on the copy machine operation. New equipment would reduce that to 1255 hours. The resultant savings in staff time is estimated at $37,000 annually (assuming staff time at $10 an hour). Current maintenance cost for the 2 machines is $10,500 annually. Annual cost of labor is $49,861.20, for a total cost of $60,361.20. Annual maintenance and lease costs of the new machines would be approximately $26,500. Projected annual cost of labor using new machines is $12,550.80, for a total annual cost of $39,050.80 or a savings of $21,310.40. Funds for maintenance and lease payments are available in the budget. Cost of the copy control. devices is $4,:'56.60. Funds are available in the budget. EXHIBITS: 1. Report Summary dated August 8, 1983. Z. Memorandum dated September 13, 1983. Monthly Lease Monthly Maintenance Total Monthly Base Payment Extra Charge based on 70,000 Average Copy Volume TOTAL € UPLICATING EQUIPMENT STUDY 8-8-83 Summary ANALYSIS SUMMARY OF HIGH VOLUME MACHINE XEROX IBM KODAK 8200 III-60 150 AF $1202.53 $1179.00 $1335.00 rental 401 .00 1603.53 213.12 1,816.65 Tncluded 1179.00 396.00 1,575.00 Included 1335.00 462.80 1,797.80 XEROX 1075 $1,624.83 Included 1,624.83 265.50 1,890.33 While the monthly charges for the IBM III-60 are the least of the four machines, other factors must be considered. One such item is personnel time involved when using the machines. The IBM I11-60 contains sorter bins (similar to those on our 7000). The Xerox 1075 has a finisher. For comparative purposes, an example would be that of duplicating 225 copies of the Council agenda (as we do every week). The process with the IBM would be similar to our current process. We would make 225 copies of each page, carry all copies back to the office, and physically collate and staple each agenda. A great deal of staff time is involved. With the Xerox 1075, the original agenda would be placed in the automatic feeder and the person could leave to do other work. The person could then go back in 20 minutes and pick up the collated, stapled agenda. Based on standards used in the industry and applied to copy volume on our machines, staff time in operating existing machines is estimated to cost $49,861.20 annually. labor costs involved for new machines using the same figures is projected at $12,550.80 annually. Another factor to consider is the per copy cost. Per copy cost on the Xerox 1075 is less. So as copy volume increases, the copy cost on the IBM would go up much more than on the Xerox 1075. This can be seen by the difference in the extra charge shown above based on a 70,000 monthly copy volume. The other two machines (Xerox 8200 and Kodak 150 AF) also have lower prices. The Xerox 8200 had poor copy quality and would not accommodate all the variety of types of copying needs. The Kodak 150 Af was cumbersome to operate and did not seem appropriate in our walk-up environment. The extra features available plus time savings for staff warrants the installation of the Xerox 1075. (Full analysis is in the detailed report.) El Copy Control Devices In conjunction with the two machines recommended for Administration, it is also recommended that a PDC copy control device be installed on each. This would provide the ability to charge departments based on their actual use of the machines. While the company predicts that use of the devices will reduce the number of copies by 209b - 401/6, that should in itself not be used as the total reason for installation. The primary reason should be a desire for accurate cost accounting and, as with the telephone charges, accountability should result in a savings. The cost for two systems would be a total (including tax) of $4,356.60. SEPTEMBER 13, 1983 TO: CITY COUNCIL FROM: Lee Rautenkranz, Central Services Director QUOTES FOR CONTRACTING DUPLICATING WORK At the council meeting of September G, 1983, staff was directed to obtain cost information on contracting the City's duplication work. Two local firms were contacted for quotes on providing duplicating service to the City on a contract basis. The low quote shows that for only duplication work (no stapling or reduction), the cost would be either $ .03, $ .04 or $ .05 per copy, depending on the size of the copies made and number of copies being reproduced. In addition, there would be an additional charge for reduction work (Council minutes), stapling, and possibly collating. In comparison, the new Xerox 1075 per copy cost for duplicating work only is $ .0275 per copy. With the cost of supplies added (which also includes collating and stapling), the cost is $ .0355 per copy. Based on the many factor: involved in duplication work, including costs, it is still recommended that the Council authori=e staff to replace the Xerox 4000 and 7000 with a Xerox 1035 and 1075. LEE RAUTENKRANZ Central Services Director LR:ds REPORT Introduction An unpopular topic, but definitely an area of concern in the City (as with most organizations) is the copy machine(s). Unfortunately, the need to make copies (often real, sometimes imagined) will always be with us. Though we're often tempted to dispose of the machines and go back to carbon paper, that really is not a practical, or cost effective, alternative. Copy machines, like all machinery, get old, wear out, become outdated by new technology, or all three. Such is the case with some of the Xerox machines owned by the City. The emphasis of my report will be on the Xerox 4000 and 7000 located just off the lobby since they fall in my jurisdiction of responsibility, However, I will be addressing all the machines to a degree with some recommendation. The attached Exhibit "A'" shows that the usage of the 4000 and 7000 machines has continued to increase. In conjunction with that, Exhibit "B" shows that the number of service calls has also increased substantially. It's important to note that where the records show a service call, it generally means the machine is inoperative. When a machine becomes inoperative and a service call is placed, the minimum response time for repair is 4 hours. The actual response time has run as high as 16 hours, though 6-8 hours would be an average response time. Therefore, the higher the number of service calls, the greater the amount of machine down time. Exhibit "C" summarizes the contents of Exhibits "A" and "B" . Additional information relevant to this report provides verification that a great deal of problems occur with the existing 7000 due to the fact it is old and worn out. The sorter habitually does not work properly. This is evidenced frequently by Council members either missing pages in their packets or getting 2 or more of a page in an agenda bill. Our last call to Xerox to repair on the sorter received the response that there was nothing they could do to fix the sorter. They said it was simply old and worn out. An unreliable sorter adds to employee inefficiency. To require an employee to physically check each set coming out of the sorter is defeating the purpose of having a sorter. A significant amount of employee time would be wasted. All this results in a substantial loss of employee productivity. Even when both machines are fully operational, it is not unusual to have to wait in line to make a copy. With one machine down, it is easy to see why the line is constant or people are taken away from productive time by hoping to find it free or at least, hoping to find a short waiting line. Add to all this confusion a department tying up the only working machine because they are trying to meet a deadline - such as Council Agenda Packets. While this is certainly a worst case situation - it does happen. There is, however, an additional factor which must be considered not only on the 7000 and 4000, but also on the other Xerox machines which the City owns. Prior to 1979, the City rented six Xerox machines. Rental of equipment was then, and is now, the most expensive way of providing equipment on site. In January, 1979, following an analysis by the Purchasing Officer, Council approved the purchase of three (3) of the machines. Those three were: 7000 - Administration 4000 - Administration 4000 - Police In August, 1979, following an additional study by the Purchasing officer, Council approved the purchase of the other three (3) machines. Those three were: 4000 w/coin-op - Library 3100 w/auditron - Utilities 3100 - Library Administration The analysis showed that expected savings to be realized by purchase of the machines would be a total of $125,0n0 if the machines were kept for five years. The 5-year time period will soon be realized. For the six machines owned by the City, that end date is as follows: 7000 Administration January, 1984 4000 Administration January, 1984 4000 Police January, 1984 3100 Utilities August, 1984 3100 Library August, 1984 4000 Library August, 1984 The significant point of this is the way Xerox views machines which have exceeded the 5-year time period. Because 5 years is felt to be the useful life of these machines, the City will lose the guaranteed service for the purchased machines at the times designated above -- five years from date of purchase. This means that Xerox may (though it is unlikely) refuse to renew the maintenance contracts on the machines. Even if they do renew, it would be on a year-to-year basis and the situation would be evaluated by them each year to determine whether to provide service the next year. Of course, the higher the number of service calls, the more likely it is that service would be discontinued. Should Xerox determine it is too costly for them to continue to provide service via a maintenance contract, they may refuse and the city would then be required to have the machines serviced on a time and material basis, which would be extremely costly based on the number of service calls. Even if Xerox does continue to provide a maintenance contract, each year they will add a 10% charge to the City's monthly bill for service. Example: 1st year - 10% 2nd year - 20% 3rd year - 30% etc. Should the City decide to renovate their current machines, it would be totally at the City's expense, and while the machines are out for renovation, we would either not have a machine, or have to rent one. In any event, even if the machines are renovated, it still does not change in any way the guaranteed maintenance expiration or the additional charges outlined above. Therefore, it's time to address the situation proactively rather than reactively. While purchasing the machines proved to be cost effective, it is now time to consider bringing new machines into operation. Due to the increased maintenance costs which will occur on existing machines, they will cease to be cost effective at the end of the five year period. In addition, new technology has greatly increased the production capability of machines, and would help eliminate personnel waiting time at the machines. Also, since 1979, there has been the addition of three more machines to the 4ity's flock. The Police Department purchased a Xerox 3100 to be placed in their modular unit to save some officers a few steps. A Xerox 4500 is being rented and is located at the Harding Street Center and the Fire Department has purchased a Minolta copier for use at their location. In -House Print Shop My first thought in analyzing the situation was the possibility of establishing an in-house print shop. Development of an in-house reprographic facility requires consideration of many factors. Sufficient information is available to provide either support. or opposition for an in- house facility, depending on individual preferences. Therefore, the following will be an attempt at presenting factual information relative only to the City of Carlsbad's operation. One consideration of an in-house facility is equipment. What equipment is available and what would be needed? Equipment for print shop facilities comes in many forms. Included are copiers, offset duplicators, platemake.rs, typesetting equipment, cameras, a film processor, darkroom, sorters, collators, binders, a drill press, automatic folders, paper cutters, or other forms of finishing equipment. All of that equipment is available at a variety of prices. If an in-house print shop was selected, a minimal amount of equipment should be utilized intially to establish an in-house print shop. The recommended minimum equipment includes a duplicator, an offset press, a paper cutter, and a paper drill. That equipment could be purchased for approximately $25,000, if existing Xerox machines could be used. Since the life of our Xerox machines is relatively short, new duplicators would be required, at an additional cost. A very important consideration is space. Currently, most departments do not have adequate space for existing personnel. Additional equipment would not fit in the existing duplicating room. In addition, it would be necessary to keep a large quantity of supplies available for a more effective operation. Ideally, those supplies should be in close proximity to the print shop. Once again - space is a problem. The closest storage facility is Palomar Airport Business Park. Another factor is staffing of the print shop operation. The success, or failure, of the print shop will very heavily rest on the experience of capability of the operator. Though salaries vary, a projected salary range (not including benefits) is in the range of $11,200 to $15,000. So when looking at equipment costs, the purchase price would be approximately $25,000 plus the cost of new duplicating machines. Annual maintenance costs would start at approximately $1,100 for only the offset press, and salary costs the first year would range between $11,200 and $15,000. Total minimum for start up would be $37,000 plus the cost of new duplicating machines. Also of concern would be problems associated with any job which can be performed by only one employee. If that person were on vacation, or should quit, no printing could take place until the person returned to work or was replaced by a trained offset press operator. Though absences due to vacation could be handled with some difficulty, there would be time to plan for such absences. Unplanned absences, such as sickness, could cause serious difficulties, especially if it occurred during a time when large printing runs were scheduled. So, I foresee the possibility of problems with staffing, and maintaining staffing at a level to meet the needs. Not totally defeated on the in-house pr-int shop idea, the issue was discussed with the school district with the idea of sharing a facility (and costs associated with same). While the school district was agreeable to the idea, they are currently facing similar problems. They do not have space for such an operation and would have difficulty utilizing such an operation should it be located at our new Operations Center. Thus, location of the print shop would be an important consideration, but if it were conveniently located, they expressed a desire to share a facility (and costs) with the City. This alternative, while not currently possible, will be explored further in the future with the school district. A related factor to be considered is the number of forms utilized. A great cost savings could be realized if some forms were eliminated or standardized. A greater cost: savings can be realized by an in-house print shop only if a majority of the work is a high volume of copies from single masters. Low volume runs would not save money. This is not currently the case in the City. There are a multitude of forms in the City, including the variety of letterhead. only by standardization of a large number of forms would it even be possible to consider an in-house print shop. Even then, space and staffing problems would still need to be resolved. Current Status Examining current machine locations and the status of the machines leads me to a few basic conclusions: 1. The City currently owns eight of the nine machines in operation at its various locations. - *I 2. A small machine located at the Fire Department, one at 405 Oak, and one at Harding Center is appropriate due to distance from City Hall administration machines. 3. Two small machines located in the Library is appropriate (one coin -op for the public and one in the office for personnel). 4. One small machine located in the Police Department is appropriate for their copy volume, types of documents, and sometimes immediate need for copies. 5. One high -volume plus one smaller machine for Administration is needed to handle copy needs of all departments. One machine would not suffice due to the number of long runs which take place such as Council packets. 6. Six of the existing nine machines will reach their expected life in 1984 and will then become very costly to maintain. 7. The machine currently being rented, located at Harding is costing too much when viewed in terms of actual usage and features. 8. Administration machines are open to all. There needs to be a method to charge back the user departments based on actual usage. 9. Existing machines which are nearing their 5-year life could be traded only to Xerox for a credit of 20% of their purchase price. a. Purchase Price of 7000, $30,115 -- Credit, $6,023 b. Purchase Price of 4000, $10,528 - Credit, $2,100 c. Purchase Price of Police 4000, $10,165 - Credit, $2,033 10. If machines are not traded, they could possibly be sold on the open market. Optomistically, $5,000 is the maximum which could be realized from a sale of the 7000. Realistically, it may not be possible to sell the old machines. (The City of San Juan Capistrano recently tried to sell their 7000 on the open market. They received one bid in the amount of $200.) 11. It is impossible for me to factually assess the copying needs of the Police Department, but it is possible the new 3100 in the modular is for convenience rather than actual need. Police personnel would, however, need to address that issue for facts on their operation and copying needs. 12. What is done now should consider what will happen when the new Operations Center is actually open. 13. Consideration should be given to Parks and Recreation and whether their location justifies a copy machine. Based on the above observations, facts and figures, I first determined to consider the replacement of the Xerox 7000 -- our high volume copier. ANALYSIS - REPLACEMENT OF 7000 Three major manufacturers of copy machines were chosen for analysis primarily bacause they are the only ones who manufacture copy machines which handle a high volume of copies. All copiers differ in features, so it was necessary to consider City duplicating needs. Current state-of-the-art copiers provide a micro -processor unit which provides self -diagnosis of problems, automatic feed, duplexing (two-sided copying), and stapling., In addition, the technology will continue to change rapidly. On two separate occasions I have viewed a demonstration of the following three duplicating machines: IBM III-60, Kodak 150 AF, and Xerox 8200. The second visit to each facility was accomplished in one day. Samples of our documents were taken to each demonstration with the intent that I would run copies of typical jobs on each machine. Documents which were run on each machine were: 1. An agenda bill with front sheet on blue with mixed letter and legal size originals - run 2-sided. 2. Goldenrod copy of Request for Warrant. 3. Pink copy of Partial Payment Form 4. Blue line map 5. Elections Code Book 6. Small memo form Following is a rundown of the performance of each machine. XEROX 8200 The Xerox 8200 was relatively easy to operate, which is important in a walk-up environment. In addition, it has a finisher which means the end product, in some cases, could be collated and stapled. It also makes excellent quality copies if it is black print on white paper. The finisher contains a standard, heavy-duty stapler, which takes a roll of staples. It staples documents in the upper left-hand corner only. Two-sided copying is easier to accomplish than with our present machines, but it still requires a great deal of operator intervention. The following steps were required to copy an agenda bill: 1. Pull all legal size documents from set. 2. Make reduced copy of legal documents. 3. Insert reduced copies into set in place of legal size documents. 4. Pull page 1. 5. Run copies of page 1 on blue paper. 6. Reverse order of originals. 7. Place originals in feeder. 8. Run required number of copies. 9. Remove copies and place in paper tray. 10. Remove originals. 11. Reverse order of originals. 12. Place originals in feeder. 13. Run required number of copies. 14. After copies are run, place blue face sheet on top of each set. 15. Staple completed sets. On the negative side, the Xerox 8200 produced very poor quality copies of the blue line map, the small memo, the goldenrod RFW and the pink partial payment form. The sales rep did say that adjustments could be made to the machine such as placing certain filters on the lens so these types of documents could be copied regularly. Another factor I have learned recently is the Xerox is offering a new machine, which makes the 8200 out-of-date already. Another important factor regarding the 8200 is that the cover must be closed or the machine won't operate. That means that large, thick, oversize documents such as a page in an assessor's parcel book could not be copied on the machine. `.Co compensate, they wish to place an additional machine at the City, a Xerox 2350. Therefore, it would take two machines to do what should be accomplished by one. ,A KCDAK 150 AP Unlike the Xerox and IBM demonstrations, I was not allowed to operate the machine myself. The sales rep continually took the a� papers out of my hands, inquired what I wanted to do, and then proceeded to do the work. The rep had been informed on three separate occassions that I wanted to operate the machine using samples of items the City duplicates. Therefore, my comments are I based on observations, not hands-on experience. wl ;p The Kodak also has a finisher which would allow, in some cases, collated, stapled, finished sets. Unlike the Xerox 8200, the Kodak finisher contains a spool of wire which is cut as part of the normal operation. Unlike the Xerox 8200, the Kodak finisho r contains a spool of wire which is cut as part of the normal operation. In addition, it allows the choice of either corner or book style stapling. The choices, however, cannot be made by the push of a button. Actual physical adjustments must be made in the finisher by the operator. Copy quality on every document was excellent. Two-sided copying of an agenda bill appeared very cumbersome. The following operator steps were required: 1. Pull all legal size documents from set. 2. make reduced copy of legal documents. 3. Insert reduced copies into set in place of legal size documents. 4. Physically separate all pages of the set into 2 piles --odd page numbers and even page numbers. 5. Pull page 1. 6. Run copies of page 1 on blue paper. 7. Place odd -numbered pages in feeder. 8. Run required number of copies. 9. Remove copies and place in paper tray. 10. Remove odd -numbered pages. 11. Place even -numbered pages in feeder. 12. Run required number of copies. 13. After all copies are run, place blue face sheet on top of each set. 14. Staple sets. This process is similar to that which is currently used except we don't presently have an automatic document feeder. That means there are currently additional steps required on existing equipment because each sheet is placed separately on the glass for copying. Unlike the Xerox 8200, the cover on the Kodak 150 AF does not have to be closed to copy documents. It would, therefore accomodate copying pages from assesor's parcel books. I'm concerned about whether the machine would be appropriate for a walk-up environment as exists in the City since I was not allowed to use it. I'm also concerned about the difficulty in copying two-sided. IBM III-60 Unlike the Kodak or Xerox, the IBM III-60 does not have a finisher. It does not have the capability of producing a stapled document. It does have a bi-directional collater with a "job separate" feature. That feature allows collation capability, 20 sets at a time, and requires operat, rt intervention after each 20 sets. Copy quality on all documents was excellent. The IBM has automatic duplexing which allows automatic 2- sided copying with a minimum operator intervention. The following steps were required to duplicate an agenda bill set: 1. Place exact number of pages of blue paper in paper tray. 2. Place all originals up to the first legal size into feeder. 3. Run required number of copies. 4. Remove originals from feeder. 5. Using semi -automatic feed, make required number of copies of legal size documents (automatic reduction). 6. Place remaining originals in feeder. 7. Run required number of copies. 8. Remove completed sets from collator. 9. Staple completed sets. This was by far the easiest machine to use, which is important in a walk-up copier environment such as exists in the City. An additional aspect is the copy control feature which has been included in the pricing of this machine. it requires operators to key in a user code number to operate the machine. It has the capacity to track 999,999 copies for 100 users. It would allow us to assign a code to each department, thereby providing a method of charging departments based on their actual usage of the machine. Copy control devices, however, can be purchased for any of the machines, and should not be considered as an advantage of only of this machine. The automatic feeder provides the operator with 3 ways of feeding originals onto the glass for copying: 1. Automatically 2. Semi -automatically 3. Manually Xerox and Kodak feeders have 2 ways; automatic or manual. The major concern I have about the IBM Series III, Model 60, is whether it can handle high volumes consistently. On one hand, IBM says it is a high volume machine. On the other hand IBM says its the same basic box as their Models 20 and 40, which are low and mid --volume machines. And, in comparing the specifications of the 60 and the 20 and 40, I can find no difference to qualify the 60 as a high volume machine. The only differences are the additional features (bells and whistles) which are available on the 60 - none of which would affect the machines ability to handle a higher volume. Further inquiries into this has revealed that some changes were made in the manufacturing process. They say they have now developed enough historical data which justifies marketing the series 60 in the 100,000 - 150,000 copy volume range. While volume would not currently be a problem, I have never known volumes to decrease. And, should ours increase significantly in the next 7 years, we need to be sure our equipment can handle the volume. Xerox 1075 The Xerox 1075 is only one of a new series of machines being offered by Xerox. While the machines have been available on the east coast for some time now, they are just now making their debut on the west coast. I believe Xerox has solved a lot of their old problems with their new series of machines. The 1075 is very easy to operate, extremely user friendly, and copy quality is excellent. The 1075 does 2-sided copying automatically and has a finisher which staples in the upper left-hand corner. The following steps wg e required to copy an agenda bill: 1. Pull legal size documents from set. 2. Make reduced copy of legal documents. 3. Insert reduced copies into set in place of legal size documents. 4. Pull page 1. 5. Run page 1 on blue paper. 6. Place remaining originals in feeder. 7. Run required number of copies. 8. Remove set and add blue page 1. 9. Staple completed set. Throughout my analysis of the Xerox 8200, IBM III-60 and Kodak 150 AF, I felt the ideal machine for the City would be to take certain features from each machine and combine them into one. It appears the Xerox 1075 has accomplished that task. It has 1. Automatic feeder - manual option 2 Finisher (rather than sorter) 3. Automatic 2-sided copying (from 1-sided or 2-sided originals) 4. Cartridge toner 5. Diagnostic display 6. User friendly (easy to operate) 7. Excellent copy quality (all colors) 8. One sheet clearing of jams with no guesswork 9. Can be placed within 7 inches of the wall 10. Energy saver feature 11. Not overly sensitive to paper - paper can go in either curl up or curl down An additional benefit is that we would get credit for our 7000 from Xerox. RECOMMENDATION FOR REPLACEMENT OF XEROX 7000 Instal?. a Xerox 1075 and return the Xerox 7000 to Xerox for credit. The 1075 has the features available to provide the City with a very productive copy machine. It is recommended that the City lease the Xerox 1075. Leasing is less costly than renting, but more costly than purchase. The lease would, however, give the City the option of returning the machine to Xerox at the end of the period. At the same time, money is accrued toward the purchase price should the City decide to purchase the machine at the end of the lease period. This is the same plan under which the 7000 was initially installed. Summary The Xerox 8200 could not meet the copying needs of the City. The Kodak 150 AF is not a machine for walk-up environments. The IBM I1I-60 still has the monthly lower cost, but limitations imposed by a 20-bin sorter, has fewer features, and has a higher per cjy cost than the Xerox 1075. The attached Exhibit "D" reflects a summary comparison of features on all 4 machines analyzed. The next portion of the analysis will deal with replacement of the Administration Xerox 4000. EXHIBIT 1eA" Model 7000 Model 4000 Month Volume Volume July 1978 41,345 15,916 August 391964 19,243 September 51,359 17,923 October 53,441 21,288 November 53,337 23,173 December 401997 16,726 January 1979 22,088 14,637 February 67,954 March 72,113 68,998 April 51,238 May 52,916 21,097 June 50,393 24,352 July 60,822 22,734 August September 54,698 22,115 October 62,863 18,540 November 71,418 23,885 December 67,726 22,529 January 1980 65,603 23,773 February 82,931 23,398 March 68,113 25,076 April 52,789 22,058 May 62,083 24,313 June 66,202 25,313 July 61,141 27,854 August 801124 24,993 September 69,397 18,790 October 81,888 24,700 November 65,391 19,733 December 61,586 20,232 January 1981 101,269 26,412 February 73,852 23,318 August 86,408 27,613 September 60,676 18,623 October 94,488 31,663 November 50,829 15,850 December 64,772 24,526 January 1982 February 53,878 23,454 March 69,262 27,349 April 77,324 29,209 May/June 151,919 52,806 July 72,757 '25,987 August 74,012 28,006 September 55,082 25,009 October 59,967 20,392 November 49,298 19,903 December 72,634 23,244 January 1983 69,704 26,345 1972 1975 3-1 1-6 4-27 1-29 6-22 2-26 9-13 2-27 3-14 1973 3-18 1-12 5-19 1-13 7-2 2-7 8-25 2-12 8-27 2-14 9-25 2-19 11-1 7-16 1974 5-� 1 11-18 1976 1-15 3•-17 4-15 5-21 6-25 8-9 12-20 12-28 RECORD OF SERVICE CALLS — XEROX 7000 1977, 1 1979 1981 2-16 3-5 1-5 2-22 3-13 1-6 6-21 3-28 2-3 6-24 6-22 3-4 7-18 7-10 4-29 9-21 7-11 5-13 10 —20 8-14 7-16 11-29 8-16 8-17 12-7 8-17 8-27 12-29 10-31 9-14 11-1 10-5 1978 11-21 10-30 1-5 11-9 4-5 1980 12-8 5-16 1-10 12-16 8-8 1-16 12-22 9-18 2-11 12-30 10-23 3-4 3— 21 5-2 7-1 7-16 10-24 11-17 11-26 EXHIBIT "Bn 1982 1-5 2-10 3-23 4-14 4-19 (7e5 hours) 4-23 4-28 6— 21 6-24 6-29 7-16 7-22 7-29 8-5 8-31 9-27 9-29 SERVICE CALLS - XEROX 7000 1972 4 1973 7 1974 2 1975 12 1976 8 1977 10 1978 6 1979 12 1980 12 1981 17 1982 18 (by Nov. 1) YEAR AVERAGE MONTHLY USAGE 7000 EXHIBIT "C" 4000 1978 46,741 16,732 1979 57,657 21,717 1980 68,103 23,353 1981 76,042 24,001 1982 68,245 25,801 I EXHIBIT "D" Page 1 MACHINE COMPARISON XEROX IBM KODAK XEROX 8200 III-60 150 AF 1075 Monthly Lease $1202.53 $1179.00 $1335.00 rental $1,624.83 Monthly Maintenance 401.00 Included Included Included Total Monthly Base Payment 1603.53 1179.00 1335.00 1,624.83 # Copies Included 41,200 25,000 29,000 25,750 Cost per Copy .0088¢(25k-90k).01480 (29k - 50k) Over Minimum .0074j6@ .0150.0(90k+) .00760 (over 50k) .006,6@ Color Blind to: Blue Yellow Yellow None Rated Speed 70 cpm 70 cpm 70 cpm 70 cpm Reduction 98%-74%-65% 74%-65% 77%-64% 98%-77%-74%-65% plus variable 100% - 65% Automatic 2-side copying No Yes No Yes Copy Control Feature Available Yes Available Available Paper Trays 2500/550 2100/600 1000/1000 1000/500 Toner Pour -in Cartridge Cartridge Cartridge Sorting Unlimited 20 Bin Unlimited Unlimited Bi-directional Stapler Yes No Yes Yes Document Feed Automatic Automatic, Automatic Automatic or Manual Semi -automatic, or Manual or Manual or Manual Size 78"L X 5811W 67"L X 29.5"W 88"L X 3111W 80"L X 35"W X 48.5"H X 47.5"H X 39"H X 4711H Installation Charge $255.00 $266.00 $375.00 $276 EXHIBIT "D" Page 2 Following are sample monthly copy volumes showing the corresponding costs for each machine at those volumes: MACHINE COMPARISON COPIES PER XEROX IBM KODAK XEROX MONTH 8200 IIIm60 150 AF 1075 66,600 $1,791.49 $1,545.08 $1,771.96 $1,869.93 70,000 $1,816.65 $1,575.00 $1,797.80 $1,890.33 90,000 $1,964.65 $1,751.00 $1,949.80 $2,010.33 100,000 $2,038.65 $1,901.00 $2,025.80 $2,070.33 125,000 $2,223.65 $2,276.00 $2,215.80 $2,220.33 ANALYSIS - REPLACEMENT OF XEROX 4000 - ADMINISTRATION The current average monthly volume on the Xerox 4000 is , 24,000. As with the 7000, it needs to be replaced. A historical view of volume on the machine is shown on Exhibit "A" The 4000 was installed to act as a backup machine to the 7000. A backup machine was, and still is a necessity for administration. The advanced technology and extra features on the 1075 will encourage the use of the 1075 for most copying needs. It is estimated that a great deal of copying will be pulled from the back-up machine and tranferred to the main copy machine. if It will still be necessary, however, to have a backup copy machine for the many needs for quick, single copies. Toward that end, many machines were tested. ?:y Recommendation' Install the Xerox 1035 as a backup machine for Administration to replace the 4000. The 1035 is not a high volume machine but has features which will complement those on the 1075 and give total flexibility to users. The machine has 4 reduction rations, 2 enlarging rations, 5 degrees of contrast, job interrupt, plus more. It also makes excellent quality of copies. Monthly cost for the machine is $139.37. It is recommended that the Xerox 3100 in Utilities and the Xerox 4000 in the Police Department be returned to Xerox with the monies credited toward the base of the Xerox 1035. L_ ___ - ml ANALYSIS - REPLACEMENT OF XEROX 4500 - HOUSING There is currently a Xerox 4500 located at Harding Street Community Center. Basically, the Xerox 4500 is a 4000 with a sorter attached. It has 2 paper trays to allow copying on either letter or legal size paper, and provides the ability to do 2-sided copying automatically. The machine is shared and used by 3 departments: Housing, Research/Analysis, and Recreation. The average monthly volume is approximately 7,500 copies. The monthly cost is &. Discussions with the respective department's employees reflect a wide range of copying needs. Research/Analysis expressed need for: sorter., reduction, 2- sided copying cabability, and copy contrast adjustment. Recreation expressed need for: reduction, 2-sided copying capability, and copy contrast adjustment. Housing expressed no need for special features. Machines that offer most, or all, of the features requested include the Ricoh 6200, Ricoh 6600, Xerox 3450, and IBM III-20. A feature comparison of the four machines is shown on the attached Exhibit "E". Recommendation Based on the machine feature comparison and price comparisons, it is recommended that a Ricoh 6600 be installed at Research/Analysis and the Xerox 4500 returned to Xerox. There would be an approximate savings of $135 per month. w EXHIBIT 01E" MACHINE COMPARISON RICOH RICOH XEROX IBM 6200 FR 6600 3450 III-20 Monthly Lease (rent) (rent) (rent) (rent) $397 $395 $362.51 $535 Monthly Maintenance included included included included # copies in- cluded in price 9,000 10,000 9,000 9,000 Rated Speed 30 cpm 35 cpm 30 cpm 75 cpm Reduction 64% 65% & 74% 62% & 72% 65% & 74% Sorter 10 bin 20 bin 15 bin 20 bin Enlarge No 115% No No Automatic 2-sided copying No No No Yes Document Feed Semi- Semi- Semi- Semi - Automatic Automatic Automatic Automatic Paper Trays 250/250 1000/250 1000/100 2100/600 Carrent cost for renting the Xerox 4500 is _ a month. ANALYSIS - REPLACEMENT OF XEROX 4000 - POLICE The Xerox 4000 in the Police Department is also dying. It is also probable that Xerox will refuse a maintenance agreement on this machine. The repair man tried to get Xerox to replace it with another 4000 under the maintenance, and Xerox refused. Current average volume on the 4000 is 15,000 copies monthly. Copying needs do not require a sorter; a desire for reduction capability expressed, with the prime consideration being space and prompt service. Another consideration is the new Xerox 3100 located in the Police modular. The average volume on the 3100 is 2,000 copies monthly. In addition, the 3100 is too small to handle the volume currently carried on the Xerox 4000. Therefore, the 4000 needs to be replaced. Possibly, if the replacement were dependable with good copy quality, the Police might consider transferring their 3100 to another location (such as Parks and Recreation). Analysis of machines and prices indicated a Ricoh 6600 would, at a reasonable cost, provide them with a machine capable of handling the volume experienced on both machines, should they determine the 3100 is not needed. Recommendation Rent a Richol 6600 (wither sorter) to replace the Xerox 4000. Cost of the 6600 would average $415 per month at a volume of 15,000 copies monthly, at a volume of 17,000 copies monthly, cost would average at $453 a month. For disposition of the Xerox 4000, it is recommended that it be returned to Xerox for credit on the lease of the Xerox 1035 recommended for installation for Administration. ANALYISIS - REPLACEMENT OF XEROX 3100 AND 4000 - LIBRARY Bobbie Hoder has traveled with me to test the various machines, and will be completing an analysis and recommendation for replacement of the machines in the Library. - 11 tW COST ACCOUNTING - COPIER CHARGES I have studied and considered three ways to accomplish a cost accounting method for the copy machines currently charged to Administration. First - I considered placing a log book by each machine and r placing employees on the honor system for logging their copies. Experience has taught me that the honor system doesn't work. The honorable get charged --the rest don't. Second - I looked at installing auditrons since both machines are Xerox. An auditron is a cartridge that would be assigned to a department. To make copies, they would need to insert their cartridge, and the cartridge would count the number of copies run. Once again, there is an element of the honor system required. To find the number of copies run each month, it would be necesssary to call each department and ask for a reading of their cartridge. A great deal of time would be required to make this system work, and it still may not result in accurate information. Auditron is available through Xerox. Third - the Polytech device (PDC) was examined. It is available through Transaction Recording Systems in Sherman Oaks. With PDC, a card (or cards) would be assigned to departments. To make a copy the card must be inserted in the Recorder; however, it is the Recorder that tracks the number of copies made, not the card which is carried back to the department. M The system is also very versatile. We will be trained to program the recorder with the following options: 1. What user cards will be accepted. 2. Whether just copies or copies and originals are to be recorded. 3. If average run length per original per user is desired. 4. If department totals are to be recorded. 5. Time copi�r actually in use and time copier was available for use. 6. Run limits. 7. Any total copy limits. The company states that a minimum reduction in copies to be realized with the systems is 2.0%, with some companies realizing a 50% reduction in copies generated. It is difficult to project a specific percentage of reduction; however, experience has shown that accountability results in savings. So, if an accurate system for cost accounting on copy machines is desirable, I highly recommend it. I highly recommend that we purchase and install the system on the two new administration copy machines. Even Xerox recommends the PDC over their auditrons. FISCAL INFO When I first looked at the system in 1982, total cost (including tax) for purchase was $5,607.40. Prices have now gone DOWN --total cost now is $4,356.60.