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HomeMy WebLinkAboutResolution No. 2011-42At (liy elf KE Al. ALASKA Suggested by: Administration CITY OF KENAI RESOLUTION NO. 2011 -42 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A BUDGET TRANSFER WITHIN THE GENERAL FUND, NON - DEPARTMENTAL FOR THE PURCHASE OF A NEW MULTI - FUNCTION COPIER FOR CITY HALL. WHEREAS, the City's FY11 insurance expenditures are budgeted; and, 21,500 less than previously WHEREAS, 57,500 of this savings was redirected via Resolution 2011 -36 leaving $14,000 available for redirection to other needs; and, WHEREAS, there is a growing need for color scanning capabilities for City staff that the current flat bed scanner has been unable to meet ; and, WHEREAS, the demand for printing of color documents has increased resulting in City Hall Departments spending nearly 54,000 annually for printer toner; and, WHEREAS, purchase of a new copier with color capabilities will produce and estimated savings of $9,1.00 over a five year period. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the following budget transfers be made: From: General Fund - Non - Departmental Insurance To: General Fund - Non - Departmental Machinery & Equipment 1 1, 500 $11,500 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this first day of June, 1 l 2011. 2 ATTEST: Carol L. Freas, " ity Cler Approved by Finance: 4 40ite PAT PORTER, MAYOR tiu cily a KENAI, ALASKA v/ "Village with a Past, Ci y with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 To: Rick Koch, City Manager From: Terry Eubank, Finance Director Date: May 17, 2011 Re: Resolutions 2011 -42 and 2011 -43 for the purchase of a multi- function copier. The purpose of this memo is to recommend the replacement on the City Hall, upstairs copier with a new multi - function copier with color capabilities. The replacement would also facilitate elimination of two color laser printers currently in service. The upstairs copier at City Hall serves the Manager, Legal, Public Works, Planning, and Finance Departments of the City. The copier was installed in January 2007 and lacks the capability of color scanning and color printing. The demand for color printing capabilities increases each year. Currently departments in City Hall spend nearly $4,000 operating two separate color printers. Purchasing a multi- function copier with color capabilities would significantly reduce the cost of color printing by City departments. Below is a five year cost comparison between continued operating of the current copier and two color laser printers versus operating a single multi- function color copier: Current Copier and Laser Printers Year 1 Year 2 Year 3 Year 4 Year 5 Total Copier Purchase -0- -0- -0- -0- -0- -0- Copier Maintenance (Based on monthly charge of $238.58 and a maximum of 240,000 copies)* $2,863 $2,863 $2,863 $2,863 $2,863 $14,315 Laser Printer Purchase $3,000 -0- -0- -0- -0- $3,000 Color Printer Toner $4,000 $4,000 $4 000 $4 000 $4 000 $20,000 Total $9,863 $6,863 A,863 $6 863 6 a3 $31,315_ * Copies over maximum at $0.00975 per copy. New Copier Year t Year 2 Year 3 Year 4 Year 5 Total Copier Purchase $11,439 0- 0- 0- 0- $11,439 Copier Maintenance: Black Sr. White Copies (Based on 240,000 copies @ $0.0061 per copy) ** $1,464 $1,464 $1,464 $1,464 $1,464 57,320 Color Copies (Based on 42,000 copies @ $0.0450 per copy) ** $1 890 $1.890 $1 890 $1.890 $1.890 59,450 Total $11,793 $3354 13,354 $3,354 53 354 $28 ** Copies over maximum at same per copy rate. Difference (54,930) 53,509 $3,509 53,509 53,509 59,106 In addition to the cost savings City staff will gain access to quality and timely color scanning capabilities that currently do not exist. Scanning of color documents is currently accomplished via flat bed scanner. The speed and ease of operating the flat bed scanner makes it's a seldom used resource by City staff. A new multi- function copier would enhance color scanning capabilities for all City departments. Purchasing of the new copier will be accomplished utilizing a Kenai Peninsula Borough contract and was the result of a competitive request for proposal in which Konica Minolta Business Solutions received the highest ranking. Pricing achieved by the Borough during this process yielded lower rates than that offered through State of Alaska cooperative purchasing and Western States Contracting Alliance (WSCA). Allowing for a 5% local preference authorized by KMC 7.15.045 did not alter the results of the Borough's process. Attached is a copy of the May 3, 2011 Borough award letter.