Diff for "CouncilCorrespondence201906Photocopier"

Link to CouncilAgenda20190626 > CouncilMinutes20190626

Replacement of photocopier letter

Hi folks,

In early 2014 the Church commenced a 5 year lease of a photocopier (eStudio 2555c) with Toshiba. The arrangements were a monthly lease payment, via direct debit, of $132.59 and a paper usage charge. This charge covers all maintenance and consumables (toner) and was initially $0.0066 per B/W A4 copy and $0.066 per Colour A4 copy. In addition an A3 copy was charged at A4 price. The total cost of this photocopier has been $7,955.40 lease costs and $17,842.70 (for 4 years usage) with a total of $25798.10. All prices in this document include GST.

As this photocopier is now out of lease we do not have to pay for the lease but we are now liable for toner and parts costs. In addition as this photocopier is 5 years old it was decided to investigate leasing a new photocopier.

The current photocopier functions were decided to be suitable and thus two companies were approached to provide costs for leasing and maintenance cost of a suitable replacement. Whilst the leasing costs for the next 5 years are known the maintenance cost is unknown. Fortunately we have been able to obtain the usage counters (B/W and Colour) for the last 4 years. Interestingly the B/W usage has dropped whilst the Colour has remained fairly constant. Therefore we have used the average usage over the last 4 years as an estimated for the next 5 years.

In April quotes were obtained from 2 vendors to replace the copier. The quotes were from Toshiba (the current supplier) and Ricoh. The quotes were similar.

In late May both vendors were approached to revalidate their quotes. Toshiba indicated that their original quote was still valid. The salesman for Ricoh had moved to another job but provided the contact details for his supervisor. In addition the model originally quoted for has been superseded. However no quote has been provided.

Toshiba quote was for their E3015 copier with a monthly lease charge of $157.80 and a maintenance charge of $0.0055 per B/W A4 copy and $0.055 per Colour A4 copy. This charge is constant for the first 3 years and then increases by 15% for years 4 and 5. Toshiba also quoted for a faster scanner (scans both sides of the paper at the same time for a monthly lease cost $163.58). At this stage this extra functionality is not required. The Office Manager is happy with all current features and functionality.

The total cost of the new Toshiba over 5 years is estimated to be $25,427.30 (lease cost $9,468.00 & copy costs are estimated to be $15,959.30)

Because it is a 5 year lease GWUC (Church Council) can approve the contract as we did in the past and it does not need to go to Synod. Over 5 years requires Synod/Presbytery sign-off. Previously we had the Chair of Church Council sign the lease.

A big thanks to Neil Leister for the detailed analysis he did on the above numbers and recommendation.

I support the recommended replacement as there is effectively no increase to current costs, and more protection for breakdowns etc. Can we proceed??

Warren Greenwood
Property Chairperson.