HomeMy WebLinkAboutCOM 0744.001 2000-2002 JNZr °F Hqk.
Harry Kim Dennis K. W. Lee
Mayor a~`;::G:E~„µo.~; Director
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Ronald Ueoka
~~rl~~~~ ~ ~ Deputy Director
DEPAI~TMEl01T OF PUDLIC WOIaI~S
Aupuni Center
101 Pauahi Street, Suite 7 • Hilo, Hawaii 96720-4224
(808) 961-8321 • Fax (808) 961-8630
October 8, 2002
Honorable James Arakaki, Chairman
and Members of the County Council
Hawaii County Council
25 Aupuni Street
Hilo, HI 96720
RE: Resolution 244-02 Authorizes payment of funds of a later fiscal year and of
More than one fiscal year for amulti-year lease for a copy machine
Upon the suggestion of Council Member Tyler during the previous Finance
Committee meeting, the attached worksheet explains the comparison to lease a new
copy machine.
If you have any questions or concerns regarding this, please contact Diane Shiro at
961-8321.
/~...Dennis K. W. Lee
Director
Attachment
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Ceparfirnent of Public Worics
a4sJrninistration
Cost ,Analysis for a New Lease Copy Machine
Current Copier (9 years~
Factors:
1. Constant Breakdown:
Due to the age of the existing copier, we have experienced over the past six
months four major breakdowns with the down time of up to 8 working days, and
34 service repair calls over the past two years. Locating the repair parts is
becoming a bigger issue. We are also concerned of the possibility that the copy
machine vendor will discontinue the current maintenance plan. The copier
services two division offices (Public Works Administration and the Engineering
Division), an average of 24 employees use this machine. Though we have not
done any time study for efficiency, it is a factor that having to go to another office
to run copies wastes time. Assuming each employee will do 2 copying jobs per
day and it takes 2 minutes to walk to the machine and back, when normally it
would only take a minute in our office. The copier is down for 5 days in a month.
(24 employees, 2 times a day, 5 days per month, 1 additional minute per job to
walk to another office ~ 4 hours of inefficiency per month or at the average rate
of pay ®$85.60*).
Please note, this does not take into account the impact on the other office of our
use of their copy machine.
2. Obsolete
The copier is obsolete and is a slower machine (28 pages per minute). We
average approximately 13,952 copies per month or almost 500 minutes or 8
hours of copying time. A faster speed copier would reduce copying time by half
(4 hours of inefficiency per month or at the average rate of pay = $85.60*). The
slower copier speed also often results in a backlog of copying job. Part of the
inefficiency is that employees may walk to the machine and see it is being used
and have to walk back to their desk.
Current Copier Summary:
Supply Cost per month (toner) $75.92
Copy usage cost (overage fee) 271.92
Average cost per month $347.84
*Add assumed down time cost/mo. 171.20
Total Monthly 519.04
(Continued: New Lease Copy Machine for the ®epartment of Public Works)
New Lease Copier:
Factors:
1. Funding:
We do not have the funding to purchase a replacement copier. We have
anticipated in our budget a lease fee of $520.00 per month and maintenance fee
of $375.00 per month to be effective January, 2003.
2. New Technology and Efficiency:
Upgrading to a digital copier system with capabilities to be used as a network
printer and fax, will reduce our need to purchase additional toner for our laser
printers and fax machine (current cost is $90.82 per cartridge). The copying
speed is 50 pages per minute. The maintenance fee includes 15,000 copies per
month, parts, labor, and service calls, on-site training, drum & toner('`). The
excess copy charge will be $0.0132 per copy, should we exceed the 15,000
copies per month allowance.
New Lease Copier Summary:
Monthly Lease $375.89
Maintenance Agreement* 180.00
Total monthly cost to lease 555.89
NOTE: It is difficult to put a price on the efficiencies we will realize from this
upgrade.