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HomeMy WebLinkAboutAgenda Statement 1979/01/02 Item 16CITY OF CHULA VISTA COUNCIL AGENDA STATEMENT Item No. 16 For meeting of 1-2-79 ITEM TITLE Resolution ~7"TG~- Approving lease/option agreement for IBM Series III Copier and appropriating funds therefor SUBMITTED BY City Manager C~~ ITEM EXPLANATION (4/5TH'S VOTE REQUIRED YES X NO ) On December 19, 1978, the City Council approved the purchase of one IBM Series III Copier which is currently located in City Hall. In the report which led to this action, it was stated that staff would be requesting a change in copy machine arrangements which would result in the requested lease of another IBM Series III Copier. Attached to this agenda statement is a report which addresses this subject and includes a discussion of the reasons for the number of copies being run by our various departments. This latter issue was raised by members of the City Council at the above-cited meeting. We wish to emphasize that leasing a second IBM Series III Copier is a separate but related issue to the installment purchase of the existing central copier. If the Council de- cides not to approve staff's recommendation to replace two (2) low capacity copiers with the IBM Series III, no new appropriation will be required. However, such an action could result in other costs and/or inefficiencies as indicated in the staff report. If the staff recommendation is approved, ongoing annual copier costs will increase by $960.over current budget based upon projected volume. This compares very favorably with the some $5,900 in lost time due to clerical personnel transiting to and from one copier or the some $8,000 per year required to employ a courier at the Clerk I level. A special appropriation of $2,068 will be required to obtain the second IBM Series III Copier for 5 months of the current fiscal year. This amount results from a combination of the normal departmental billings, down payment and interest charges on the purchased machine and the departmental billings and destination charges involved with the new leased machine. After this initial set-up expense, the original increase of $960 annually should hold. Continued on next page tXI11~S1 l5 Agreement Resolution~C Ordinance Plat Notification List Other X-Report ENVIRONMENTAL DOCUMENT: Attached Submitted on FINANCIAL IMPACT Appropriate $2,06$ from the unappropriated reserve of the General Fund and place in Account 100-0730-5212 STAFF RECOMMENDATION Adopt resolution BOARD/COMMISSION RECOMMENDATION COUNCIL ACTION ` t ~; ~A i f~ 1 ..,~ ~ - ~p ~~~ Supplemental Page two ILLUSTRATION Budgeted_Copier Expense/Last six months of FY 78-79 Central IBM Copier III @ 1297/mo. _ $7,782 Personnel Xerox 660 Copier @ 140/mo. = 840 Parks & Recreation 3M Copier @ 50/mo. = 300 TOTAL $8,922 Cost for Existing and Replacement Copiers/Last six months of FY78-79 Public Service Building "purchased" IBM Copier III A. January Billing $ 435 B. February-July Billings @ $310/mo. 1,550 C. Down .Payment 4,300 D. Interest Charge 450 SUB-TOTAL $6,735 Administration "leased" IBM Copier III A. February-July Billings @ $817/mo. 4,085 B. Destination Charge 170 SUB-TOTAL $4,255 GRAND TOTAL $10,990 Required Appropriation $2,068 Item No. 16 Agenda 1-2-79 -. ., .. ; . .. ,. _ - ... „r,,~ ~. q~ly6 -., ;~ .~ - - - .~ December-27, 1978 T0: Lane F. Cole, City Manager VIA; L. J. Wittenberg, Deputy City Manager -~ FROM: Debbie Swartfager, Administrative Analyst SUBJECT: Lease of IBM Series III RA('K~R(li INn In January, the new Public Service Building will be completed. At that time, many of the departments currently using the IBM Series III Copier (located in the Administration Building) will no longer have convenient access. This will occur if the copier remains in its present location or is relocated to the new building. At the December 19th meeting, the City Council approved the purchase of our present leased IBM Series III, as this will avoid higher lease expenditures over the next three years. Staff emphasized, however, that the City's total copying costs will not decrease during this period due to the necessity to replace two smaller leased copiers with the lease of an IBM Series III. Finally, Council expressed concern over the continual growth in the volume of copies. Discussion centered on the need to control the number of copies produced each month. This report will identify why the City departments make the copies they do and provide information projecting the monthly volume of copies each department will produce in their new location. in addition, rationale is included for the palcement of copiers in both the Public Service and Administrative Buildings. Finally, a cost comparison is made between our current operation and the proposed situation. RECOMh1ENDATION Lease an IBM Series.III to replace the Xerox 660 in Personnel and the 3M copier in Parks and Recreation. This will result in approximately $80 in a;a- ditional monthly costs over our current arrangements (See Attachment II). DISUCSSION The City produces approximately 55,000 copies per month on the current IBM Series III. A survey was conducted between October 9 and October 13, 1978 to determine the volume and kind of usage by department (See Attachment I). Some interesting trends emerge. Of significant note is that the following departments are the four highest users: ~~ -2- Department % of Total Copies Public Works 27% Planning 22% City Clerk 21% Boards & Commissions 11% Total 81% The major reasons these departments produce a high volume of copies can be easily identified. Public Works, for example, has an average of ten items per week on the Council agenda. Each of these items requires 17 copies for the City Clerk's office. Their other major copying tasks include grant reporting (Block, Revenue Sharing, UMTA, etc.) and contract bids and specifications for traffic signals, storm drains, etc. The budget and CIP also require extensive copying. In addition, because the Public Works De- partment has a large work force, the requirement for internal information distribution increases the copy volume as well. As the second largest user, the Planning Department prepares information for the Planning Commission, and notifies interested departments of items. Eight complete packets are prepared of the staff reports and all follow-up material. An additional seventeen sets of the staff reports are also reproduced. In addition, information is copied for several committees, including Design and Environmental Review. A significant number of copies is run for individuals at the counter (these are purchased and the revenue is deposited in the General Fund). The Planning staff also has items on the Council agenda each week. The City Clerk copies all agenda items for twenty-nine packets to be delivered to Council, the Chamber of Commerce, newspapers, library, department heads, etc. The Wednesday following City Council meetings, the Clerk copies the resolutions and ordinances for up to 50 recipients. Public Hearing notices are sometimes copied as well. The Boards and Commissions Secretary copies agenda for 11 commissions, totaling over 70 members. The average package is about 15 pages. After the meetings, the minutes are then reproduced for each member. The remaining departments using the copier fall into the following order by percentage: Department City Attorney Administration Community Development Fire Department Finance *Personnel City Council *Parks & Recreation Building & Housing Garage *Police Purchasing Library -3- '. of Total Copies 7% 3% 3% 1.2% 1% .9% .8% .7% .6% .5% .3% .2% .94% Total 19.24% The current IBM Series III does have a high volume usage. There are also three other copiers in use by City departments. The Personnel Department leases a Xerox 660 for their primary use (average volume of 1,300 copies/month). Parks & Recreation leases a 3M copier that is located in Rohr Park (average volume of 1,000 copies/month). The Police Department also leases a Xerox 4000 copier for their 24-hour use, located in the Police Business Office (average volume of 27,000 copies/month). Based on current usage, the survey projected the departments located in the Public Service Building would make approximately 31,000 copies per month. The Administration Building is estimated to make approximately 27,000 copies per month. This estimate includes 2,300 copies currently produced on the two smaller machines in Personnel and Parks & Recreation. Attachment I reflects the usage by department in two of the Civic Center buildings. *Has an in-house copier which produces copies over and above those made on the central machine. yb -4- The City has become very dependent on its copiers over the last few years. However, this does not mean that the volume of copies produced is too large for an operation our size. Copies have an important record and information function. They have essentially replaced carbon paper. In this manner, the files contain documents that are much clearer and more durable. Copies have proven to be more efficient for the clerical staff. If carbons are used, the typist is inclined to use additional time correcting all carbon copies. This is particularly true if the carbon is to be used as a file copy. Duplexed (two-sided) copies also save file space by using half the area required by carbon paper. Although copies have an important function, an obvious question might be, "Why is a copier needed in both the Administration and Public Service Buildings?" Once the renovation is completed, it would be inefficient to have a copier in only one of these locations. Although it is costly to lease copiers, lost staff time is much more expensive when the copiers are not subject to convenient access. The travel time alone between the two buildings would be excessive. For example, most items are copied by Clerk II's ($4.00/hour). In our present building, it takes a Clerk II approximately 5 minutes to leave the work area, make the copies and return. If the copier were located in the Public Service Building, those departments in the Administration Building would have to walk to the copier's new location. On the average, this walk would take about five minutes each way, with five minutes allowed to make the copies. The time necessary to make the copies has increased by ten minutes. This does not in- clude a time factor for visiting and other distractions along the way; therefore, the estimate is conservative. The cost of staff time can be calculated as follows: 10 minutes x 4 times per day = 40 minutes $4.00 per hour = $2.80 $2.80 x 8 depts. in Admin. Bldg. _ $22.40 per day x 22 work days = $493 per month Secondly, the more departments using a particular copy machine, the more "dead time" experienced (waiting in line to make copies). This can also increase staff costs. The more departments using a copier also reduces the reliability of a machine, as a higher copy volume requires more machine servicing. When the copier is down, staff is hindered and citizens are inconvenienced. If a copier is leased for only one of the buildings, a courier service could be instituted between the locations. This process is unrealistic for several reasons. If a land plat or building plan is copied, usually only parts of the whole drawing are extracted. Explaining directions and verifying the correct- ness of copies might often take longer than if the original employee made the copies. Secondly, many copies are for the purpose of cutting and pasting while writing and editing reports. It is much less time consuming to make the copy personally than to wait for it to be copied and returned. ''6 -5- The final consideration is the cost of a courier service. Who would provide this function? No one in our current work force has the time to take on this responsibility. If a new position was created at the Clerk I level, the cost would be approximately $8,000 per year. Although a CETA position could be used for the task, the turnover is so great that training and orientation would be very disruptive to the rest of the organization. Staff feels strongly there is a need to lease a copier for the current and renovated Civic Center buildings. The cost of leasing a larger machine is reduced significantly by replacing two smaller copiers which will no longer be needed. Attachment II lists our current copiers and their cost, as well as the recommended operation and its cost. The net increase is approximately $80 per month. Council has specifically stressed their concern over the large volume of copies the City makes each month on our dry copy machines. Staff shares Council's concern. Departments periodically assess the need for copies and reduce them when feasible. In addition, increased effort will be made to have departments use the Print Shop total copy system for runs of ten (10) copies or more. It is anticipated this will occur more frequently when the Print Shop is moved to a more central location. CONCLUSION An IBM Series III is recommended to replace the Xerox 660 used by Personnel and the 3M used by Parks & Recreation. This is suggested to offset the hidden costs associated with locating copiers in only one of the two main Civic Center buildings. LJW/DAS:mab Attachments cc: Assistant City Manager J6 ATTACHP~IENT I PROJECTED COPIER USAGE PUBLIC SERVICE BUILDING ADMINISTRATIVE BUILDING Dept• Current Avg Copies per Month IBM Copier Usag % Total Copies e Bldg & Hsg 531 2.0 Comm. Dev. 4,345 14.0 Finance 2,096 7.0 Public Works 13,196 42.0 Purchasing 272 .9 Planning 8,343 27.0 Police 80 .3 Fire 953 3.0 Library 123 .3 Sub-To tal 29,939 96.5 Current Personnel Dept. Xerox 660 Usage *Bldg. & Hsg. 712 2.0 *Comm. Dev. 164 .5 *Public Works 73 .2 *Finance 268 .8 Sub-T otal 1,217 3.5 TO TAL 31,156 100.0 *Used only when IBM is not available Avg Copies % Total Dept• per Month Copies Current IBM Copier Usag e Admin. 4,620 17 City Attorney 3,872 14 City Clerk 6,700 25 Parks & Rec. 1,182 4 Personnel 553 2 Bds. & Comms. 7,049 26 Council 654 3 Sub-Total 24,630 91 Current Personnel Dept. Xerox 660 Usage Personnel 1,287 5 Current Parks & Recreation 3M Usage Parks & Rec. 1,000 4 TOTAL 26,917 100 '6 ATTACHMENT II CURRENT Civic Center Leased IBM Series III with Reduction* MONTHLY COPIER COSTS Personnel** Police*** Parks & Rec. 3M**** TOTAL Basic Charges Series III $ 632.07 Collator 104.21 Meter Rec. 13.50 749.78 Copies $140.00 $750.00 $50.00 First 15,000 -0- 15-30,000 (86.50 x 3) 259.50 30-55,000 (57.50 x 5) 287.50 547.00 TOTAL $1,296.78 $140.00 $750.00 $50.00 $2,240.00 **Includes ***Includes **** *Includes 55,000 copies ----------------------------- 1300 copies ----------------- 27,000 copies ---------------- Flat Rate ------------------------- NEW Civic Center Leased IBM Civic Center Purchased Series III w/o Reduction* IBM Series III** Police*** TOTAL Basic Charges Basic Charges Series III $535.57 Installment Collator 104.21 payment $441.00 Meter Rec. 13.50 $653.28 Copies First 15,000 -0- 15-25,000 (82.00 x 2) 164.00 $164.00 TOTAL $817.00 *Includes 25,000 copies Co ies First 20,000 $260.00 20-30,000 (25.00 x 2) 50.00 310.00 $751.00 **Includes 30,000 copies $750.00 $2,320.00 ***Includes 27,000 copies ----------------------------------------=-------------------------------------------------- NET INCREASE $80.00/month i~ Form No. F-229 12/73 CERTIFICATE OF CITY/DIRECTOR OF FINANCE Certification of Unappropriated Balance I HEREBY CERTIFY that the money required for the appropriation of funds for the purpose set forth in the attached resolution is available in the Treasury, or is anticipated to come into the Treasury, and is otherwise unappropriated. Amount $ 2,068.00 Fund General Purpose Lease/Option Agreement for IBM Copier Bidder N/A . `~~%~ 0730 5212 ~ ~! Director of Finance The City of Chula Vista Date 1/2/79 By Certification of Unencumbered Balance I HEREBY CERTIFY that the indebtedness and obligation to be incurred by the contract or agreement authorized by the attached resolution can be incurred without the violation of any of the provisions of the Charter of the City of Chula Vista, or the Constitution or the laws of the State of California, that sufficient monies have been appropriated for the purpose of said contract, that sufficient monies to meet the obligations of the contract are actually in the Treasury, or are anticipated to come into the Treasury to the credit of the appropriation from which the same are to be drawn, and that said monies now actually in the Treasury, together with the monies anticipated to come into the Treasury, to the credit of said appropriation are otherwise unencumbered. Amount Not to Exceed $ Director of Finance The City of Chula Vista Date By Fund Dept./Activity Purpose Bidder Certificate No. _~p '6