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5 Minutes <br /> <br />Over the pest two montk~ we ~mve been experiencing nunerous mechanical problems <br />with the City's photo copyin9 equipnent. Therefore, it has become apparent <br />that the ~quitnent currently' used will not continue to meet our needs. In <br />order to provide adequate information about new photo copying equipment, <br />proposals were solicited fro~ each and every fire which a~vertises in the local <br />telephone dire<'~ory and the ~iinneapolis telel~hone directory. <br /> <br />Enclosed is a ~mmary of the proposals which were received. The proposals <br />which meet our needs best were given a higher ranking from 0 to 10. <br />Additionally, the maintenance costs and supplies were estimated for a five year <br />period and added to the sales price of the equipment in order to give fair <br />representation of what the tot~ life costs might be over a period of five <br />years. <br /> <br />The current lease arrangemen~ with the Xerox Corporation is a 60-month lease/ <br />purchase agreement; in other words, a time peyment plan rather than an actual <br />lease. In order for the Cit:! of Ramsey to terminate the "lease", it must pay <br />off the remaining balance and take ownership of the Xerox machine. This <br />machine may in turn be .sold as a trade-in to either Xerox or another fire. <br />buy-out price from Xerox is~ $5,063.92 and the estimated trade-in value is <br />$1,000.00 at N~st. <br /> <br />Virttm!ly all ~.ease programs in the photo copying industry are of the type <br />which the City has entered into with Xerox (i.e., lease/purchase plan rather <br />than an outright lease)~ Therefore, the Council should strongly consider the <br />wisedom of paying 8 to 20% interest as opposed to actually purchasing <br />equipment. It is true that the technology changes frequently with photo <br />copying equitment. However, with a lease/purchase agreement as the c~ly option <br />available to the Cit¥~ we wo~zld be buying the equipment in either case. <br />Further, it is likely that the maintenance cost on the City's existing <br />equipment will exceed the c~3mbined maintenance and purchase price of new <br /> <br />l~c~ndatt.on~ <br /> <br />It is our reo0~tic~ that the City Council authorize the purchase of a <br />Sharp 9550 photo copier fr~ the D C Hey Cx~pany at $8,842.00 and that the City <br />Comcil authorize the ~rmination of the lease with Xerox for the Xerox 1045 <br />photo copier ~ <br /> <br />Council A~-tion: <br /> <br />Motion to~ <br />Authorize the purchase ~f a Sharp 9550 from the D C Hey Company in the <br />amount of $8,842.00.~ <br /> <br /> <br />