SR-07-24-1979-6Ni
ctnta Monica, California July 2, 1979
TO: Mayor and City Council
FROM: City Staff JUL 2 4 19%§
SUBJECT: Recommendation to authorize lease /purchase of duplicating
machine, �; n
Introduction
This report concerns lease /purchase of the Xerox 9200 duplication machine
with 50 -bin collator currently in use in City Hall. This machine has been
in service since February, 1976, on a yearly lease /rental plan. The total
cost of lease /purchase, over a five -year period, including full maintenance,
sales tax and interest, will be $110,018.00.
Background
Based upon an average production of 127,278 copies per month, the cost of
this machine on the current lease /rental program for five years would be
$124,670.00. This includes an estimated 6 per cent yearly increase:in rates.
The City has a commitment from Santa Monica Bank to finance the total
purchase at 62 per cent interest.
Desirable considerations of this lease /purchase are:
1. Monthly payments for lease /purchase are $1,802,00 in contrast with
$1,843.00 for lease /rental.
2. Cumulative savings of at least $14,653.00 will be realized over a
five year period.
3. Ownership facilitates alternative usages for the machine that are
economically prohibitive under the rental plan.
4. No large capital outlay is required.
5. If machine is still economically feasable at the end of five years,
which is highly probable, much greater subsequent savings will occur.
Recommendation
It is recommended that the lease /purchase of the 9200 Xerox machine with
collator be approved and that the City Manager be authorized to execute
the contract by the adoption of the attached resolution,
2 11
Prepared By: R.N. Aronoff,
Purchasing Agent JUL 2 4 1979