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BACKGROUND: Over five years ago the County purchased two Xerox copy machines to handle all major copy requirements for County Administration which averages approximately 194,000 copies per month One large machine (Model 5100) to handle the bulk of jobs and a smaller machine (Model 5052) to handle small jobs which could also be used when the large machine was inoperative due to maintenance. This concept was the right approach except, due to size, the smaller copier purchased is not capable of handling a proportional share of the work load due to the machine's speed and other incapabilities. With the amount of copies being run, the larger machine would usually last five to six years, depending on maintenance. Based on this, staff has anticipated in replacing the large machine in the 1997/98 budget year. There is a monthly maintenance cost associated with each machine. The larger copier (Model 5100) maintenance is a base of $1,290 per month for 140,000 copies plus an additional $.0080 cents per copy over the base. The average monthly copies is 182,818 which is 42,818 copies over the base or an additional $342.54 per month. This equates to a total monthly maintenance cost on the large machine of $1,632.54. Monthly maintenance cost for the smaller machine (Model 5052) is a base of $100.00 per month plus $.020 per copy. Average use is 11,256 copies which equates to a total monthly maintenance cost of 325.12. In summary, maintenance on the two machines is $1,957.66 per month. - Xerox has a new Marion County Contract on a Model 5365 FIN copier, which is being offered for a sixty month installment purchase of $264.48 plus 272.00 for maintenance and supplies on 55,000 copies. This equates to a total of $536.48 per month. The machine could be paid off at any time if so desired. By replacing the small copier (Model 5052) in the Mail Room, with a new Model 5365 FIN, using it for the maximum benefit of 55,000 copies, and reducing the work load of the large old machine (Model 5100), our copy cost would be reduced by $131.18 per month. Taking advantage of this proposal and using the installment purchase plan would allow us not to purchase a new large copy machine at an approximate cost of $75,000, in the next fiscal year. The large machine could last another four to five years. The following table indicates current expenses, proposed expenses, and savings for the proposed installment/purchase of a new copy machine. Actual Current Expense Xerox 5100 $1,290.00 overage 342.54 Proposed Expense Xerox 5100 $1,290.00 overage In Xerox 5052 100.00 Xerox 5365 264.48 Services & Supplies 225.12 Service & Supplies 272.00 Total per month $1,957.66 Total per month $1,826.48 Net Monthly Savings $131.18 or $1,574.16 annually 1st year savings $1,574.16 2nd year savings 3,148.32 3rd year savings 4,722.48 4th year savings 6,296.64 5th year savings 7,870.80 Note: Calculations are based on present average monthly volume of 194,074 copies. If volume increases savings will also increase. As depicted in the table above, the actual dollars saved in copy cost for the first year is $1,574.16 and would equate to a total savings of $6,296.64 for four years. If the old machine could be used for another year, the total savings would be $7,870.80. 65 February 4, 1997 U, ,9 aOtiK ._ F,�U c)`�c�