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Home My WebLink AboutCS 10/99 - ,\I~ OF PIC ,,0 1-(<' tu lIo"" 1!. :z; ~~ Z I-- G) t~t REPORT TO COUNCIL FROM: Gillis A. Paterson Director, Corporate Services & Treasurer DATE: December 7,1999 REPORT NUMBER: CS 10/99 SUUJECT: Replacement of Photocopiers RECOMMENDATlON: That Report CS 10/99 of the Director, Corporate Services and Treasurer be received and that 1. the nppropriate staff of the Town of Pickering be authorized to acquire replacement photocopiers on the terms and conditions as set out in this report; 2. the Dircctor, Corporate Serviccs and Treasurer be authorized to executc any agrcements neccssary in this regard; and, .- 3. the Director, Corporate Services and Treasurer be authorizcd to alter tenns, conditions and/or supplier(s) if necessary in order to meet and maintain thc provision of photocopy services in the Town. ORIGIN: Director, Corporate Services & Treasurer AUTllORITY: Municipal Act, R.S.O. 1990, as amended. FINANCIAL IMPLICATIONS: lt is anticipated that if arrangements are concluded prior to Deccmber 17, 1999 that the arulUal operating costs for the convcnience copiers will not change by any significant amount, if at all, due tu the per eupy costnegotialed [or the use ofthe replaccmcnt cquipmcnt. Thc annual operating cost [or the high speed copier in the Print Shop will increase marginally, 2.9 per cent, for the new equipment. However, it is anticipated a renewed effort across the corporation to ulHlcrtake more photocopying on the lowest cost per copy machinc in the Print Shop will offset this slight incrcase. - Any net cost changes will be reflected in the 2000 Current Budget. Due to the need to replace aging equipment, the ability to take advantage of 1999 pricing before increases take effect, and the minimal budgetary effects, these recommendations are being put forth at this time by the Corporate Services Department as a housekeeping operational malter. Subjccl: Rcplaccmcnt of Photocopiers Page 2 EXECUTIVE SUMMARY: - The Corporation will continue to payout an operating cost for our current photocopiers and this operating cost will increasc as the equipment continues to age unless a new methodology of acquiring cquipmcnt is undcrtakcn. A "cost pcr copy" arrangement, will allow the Town to utilizc an opcrating cost to acquire new cquipment for a fixed price a specific tenn. The Supply and Scrvices Section will undertake to acquire replacement photocopiers as set out in this report and upon such terms and conditions acceptable to the Corporation. BACKGROUND: The Town of Pickering acquired the 14 convenience copiers around 1992 through an outright purchase. The high speed copier in the Print Shop was acquired the same way around the same time. While I have found old records, 1 would assume the original total capital cost would have bcen somewhere around $200,000. Since then we have only had to pay for maintenance through a per copy cost. The number of copies being indicative of the use and therefore maintenance required. Each year downtime increases and productivity decreases as the equipment ages. Morcovcr replacement parts arc becoming harder to find as the production of these models ceased some time ago. Consideration has been given to replacement for some time now however funding was always a major consideration. Today however we are able to offer an altemative that is linancially attractive. - The action of soliciting the market place to replace our aging and failing copiers was undeliaken by the Manager of Supply and Services to be proactive in finding a solution without capital outlay and most importantly, at a cost close to our current operating cost. Vendors were invited to an informal meeting to submit proposals for photocopier replacement. The main objective was to do so at the same or less cost than the Town was currently paying out in operating costs. Any vendors enquiring beyond this meeting were apprised accordingly. Vendors included Xerox, Executive Copier (Sharp), Koniea, Pitney Bowes, Danka (Kodak), Canon, Toshiba, Ricoh, Panasonie. The agreement offered by the Provincial Management Board Secretariat was reviewed also. Proposals to replace the copiers including and excluding the Print Shop have been reviewed and the commentary and conclusion below are as provided by the Manager of Supply and Services. The Print Shop Xerox 1090 copier is having increasing difficulty keeping pace with the duplicating requirements of the last three years. This copier is currently running at about twice dcsign capacity thereby increasing wear and downtime for repairs. This puts additional pressure and wear on the convenience copiers. To date, Xerox has given the Town priority service to reduce down-time to keep pace with printing requirements. Although almost completely rebuilt over time, the copier is aging and parts have become increasingly difficult to obtain. Xerox has initiated an End-of-Life Policy on this modcl due to rising costs in maintenance, frequency of service calls, age of equipment and few units in operation. They have decided to stop offering full service maintenance on it as of November 30,1999. Their decision is based on the age of the I ()<)o alld the advent of newer tcchnology, which costs less to own and operate. Due to the specialized nature of such a large model, to keep stride with the Town's growth, and anticipate future requirements, it has been deemed best to view the Print Shop replacement transaction independently as far as the supplier is concerned. ,- Efforts continued to secure a cost per copy at the same or less than currently paid out to replace the neet. Konica has been able to offer a solution to replace the fleet of photocopiers, excluding the Print Shop photocopier. Xerox has been able to offer a solution to replace the large volume photocopier. Proposal by Konica A revised cost per copy price of $ 0.0173 is available for a 5.5 year rental term if accepted and installation can begin no later than December 17, 1999. This cost per copy is the average cost per copy (operating cost) the Town is paying now for service to maintain our aging and failing copiers. Therefore, there is no increase in cost. The rental includes removing existing copiers, Report to Counci I CS 10/99 Date: December 7, 1999 Subject: Replaeemcnt of Photocopiers Page 3 ....... the placement of new copiers, rental, service, parts, and toner. Service is provided directly by Ilead Orlice. In the event there is a need to reduce or add to the number of copiers due to need, this can bc reviewed with the vendor and adjustment made to the rental program. This mayor llIay not arlcct the proposed cost per copy. We have been adviscd installations after December 17 will increase between 5% and 10% for new rentals therefore we wish to conclude our arrangements before this takes effect. This docs not includc the Print Shop photocopier as replacemcnt by Xerox best suits the Town's requiremellts. l'roposal by Xerox - Large Volume Copier 1;:1 The large volume photocopicr has been reviewed independently to ensure the printing needs of the Corporation via the Print Shop are being met. The Town Clerk and respective staff have reviewed and evaluated the mouel proposed by Xerox developed for long run, large volume printing. Xerox has ItJrlllalii'.ed specilic pricing incentives for customers affected by the End of Life I'lOgramto facilitate a smooth transition for appropriate product replacement. The operating cost or the current model (1090) including base charge, service and toncr is approximately $ 0.138 per copy. -- ^ revised cost per copy price $ 0.0 158 (200,000 copies per month) or $ 0.0142 (220,000 copies per month) is available for a 7 year term if installed no later than 31 December 1999. We have been adviscu prices will inercase in the new year but arc unsure of by how much. The agreemcnt includcs [hc tradc in and rCllloval of the Xerox 1090 and Xerox 1075 copiers, the placement ofa ncw gcncration model duplicator, rental, service, parts, and toner. ^ re-edueation of printing requirements shall remind staff to utilize the Print Shop services for anything beyonu convenience copying in order to yielu the savings of the lowest cost per copy produced by the Xerox uuplicator. ArT^ClIMENTS: Not applicable. Prepared I Approved I Endorsed By: ~?~L~ ~Ilis A. Paterson, Director, Corporate Services & Treasurer GAP:vw Copy: T. J. Quinn, Chief Administrative Officer E. l3ulltsma, Dircctor, Operations & Emergency Services N. Carroll, Director, Planning ano Developmcnt V. Felgemacher, Manager, Supply & Services - Recommended for the consideration of Pickering Town Council Thomas J. Quinn, Chief Administrative Officer