HomeMy WebLinkAbout1983-09-06; City Council; 7486; Duplication Equipment0
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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.