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This would be under a Hennepin County Cooperative Purchasing contract, which <br />represents massed buying power that the City of Mounds View wouldn’t have on its <br />own. Savin happens to hold the Hennepin County contract for copier machines. <br />This constitutes a sealed bid even though one isn’t required in this case. <br /> <br />The City leased three Savin copiers this way last year with good results. We are <br />just entering the second year on these machines and Savin is providing <br />maintenance at no increase over the first year. <br /> <br />The base lease would be $168.00 per month or $2,016.00 per year. The <br />maintenance contract would include toner supplies and cost $511.20 per year, <br />which includes the first 72,000 copies per year. Additional copies would be billed <br />at 0.71 cents per copy. Copier volumes in the past have been between 52,000 and <br />72,000 per year. <br /> <br />Another factor will be that the new copier will be connected to the computer <br />network. Some computer output that is now printed on a LaserJet printer will be <br />shifted to the copy machine. The incremental cost of this shift on the copier side <br />will be 0.71 cents per copy, but only if the total volume exceeds 72,000 per year. <br />Savings on the LaserJet side are difficult to quantify, but LaserJets are reported to <br />have costs of several cents per copy. <br /> <br />Costs to the City will include: lease payments of $168.00 per month over 60 <br />months, maintenance costs of $511.20 per year for the first 72,000 copies, plus <br />0.71 cents per copy over 72,000. The City purchases paper and staples. Savin <br />provides toner, labor, parts and other supplies. <br /> <br />Stringer Business Systems also submitted a proposal for a similar machine. <br />Stringer’s first year cost for lease and maintenance is higher than Savin’s and <br />would probably increase in future years. <br /> <br />If approved, the new copier will be installed in the Community on about June 30th. <br /> <br />Savin will also remove and properly dispose of the old copy machine and <br />duplicator, including any hazardous materials in them. <br /> <br />The attached resolution authorizes the lease for 60 months of the copier from <br />Savin Credit Corporation and the disposal of the Stringer 7320 copier and the <br />RA4200 duplicator. <br /> <br /> <br />Respectfully Submitted, <br /> <br /> <br />____________________ <br />Charles Hansen