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<br />, <br /> <br />~ <br />~HlLLS <br /> <br />MEMORANDUM <br /> <br />. <br /> <br />DATE: <br /> <br />June 22, 2005 <br /> <br />Agenda Item 6.C <br /> <br />TO: Honorable Mayor and City Council <br /> <br />FROM: Murtuza Siddiqui, Finance Director/Treasurer ">Y1~ <br /> <br />SUBJECT: Proposed Copier Purchase <br /> <br />BACKGROUND: <br />In July, 2002, the City entered into a three year agreement with Ikon Office Solutions to lease a <br />for a Canon Image Runner 7200 copier. The City pays $3,870.06 per quarter, including <br />maintenance. The quarterly minimum charges are for 90,000 images. For most all quarters, our <br />usage has been below the minimum set amount The lease is set to expire on July 26,2005. Ikon . <br />will allow us to lease the copier past the lease expiration timeframe on a monthly basis. The <br />copier has approximately 1,2 million images on it. <br /> <br />The Canon copier has been extremely reliable. Over the past 1 Y, years, the copier required four <br />maintenance calls, with two being for routine cleaning. <br /> <br />DISCUSSION: <br />Since the City had a very positive experience with Canon copier, staff focused its attention on <br />this particular brand. <br /> <br />Last March, the city staff requested Ikon to submit a proposal for a purchase or lease of a new <br />copier. In addition, staff also requested them to provide a buyout price for the existing copier. <br /> <br />Ikon quoted $25,538 (including sales tax) purchase price for Canon Image Runner 7200. <br />Maintenance is quoted at $270 per month with a minimum usage of 30,000 images. Total <br />maintenance costs over a period of3 years will be $9,720 with a minimum usage 000,000 <br />images per month, The proposal also included a 36 month lease option at $740 per month, plus <br />the $270 per month for maintenance, The buyout price for the existing copier is $12,032. <br /> <br />Staff contacted Canon directly to inquire if the City can purchase directly from the manufacturer. <br />Canon does sell directly to the consumers. Staff met with a local representative from Canon and <br />received a proposaL According to Canon, the 7200 has been discontinued, The proposal is for . <br />model series 8070. This model copies eight more pages per minute, In addition to higher speed <br />