Operations and Maintenance Facility and Reprographics: Yearly

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Operations and Maintenance Facility and Reprographics: Yearly Powered By Docstoc
					TO: Howard Crouse, Members of the Board of Education

FROM: Mike Pedersen

RE: Reprographics Department

CC: Jane Lawnicki

DATE: June 8, 2005

Based on the cost analysis that follows and other potential benefits discussed during their interview, Xerox presents District 204’s best option to
provide future reprographics services. Their proposal shows approximately $208,900 in yearly cost savings over current practice while bringing
teachers, administrators, and clerical staff greater support through increased efficiencies and capabilities.

I recommend District 204 enter negotiations with Xerox Corporation to formalize their proposal. Pending a satisfactory outcome, I expect to bring
a contract recommendation to the Board in August, with the intent to start services in September.

Analysis of Alternatives Regarding Reprographics
My last communication regarding Operations and Maintenance use of the Quincy rental space, and restructuring reprographics, presented the
following conclusions.

    -   The Quincy two-year lease offer was very competitive for the current market.

    -   District 204 does not have enough discretionary space to bring Operations and Maintenance in-house.

    -   Outsourcing reprographics service workers, management and hardware using the 95th Street site, will improve efficiency and cost as
        opposed to: 1.) retaining the current program; 2.) leasing new equipment and retaining/retraining our employees; and 3.) outsourcing
        with an off-site vendor.

    -   The Xerox proposal appeared to best meet the District’s needs of efficiency, capacity and cost.

Following this discussion, the Board requested I solicit another similarly structured proposal to verify the Xerox plan. Thanks to
Bruce Rodman for the contact, I have met with representatives of Canon Business Solutions twice, once to review specifications and once to
receive their proposal.

The four 95th Street reprographics scenarios are summarized below.

    -   current reprographics program
    -   new Canon machines with Canon employees and management

    -   new Konica machines with Imagetec providing training and support for District 204 employees and management

    -   new Xerox machines with Xerox employees and management

                                             Cost Matrix: Alternatives Regarding Reprographics

                                                  (Per Year Cost Shown for Five Year Commitment)

                     option                         current program                Canon               Konica (Imagetec)                 Xerox
     Hardware: Lease, Purchase, Maintain                254,349                  359,280                 214,000 (C)                   282,228
              Hardware: Buy-Out                            n/a                   included                 38,432 (D)                   included
               Salaries, Benefits                     125,000 (A)              included (B)              125,000 (A)                 included (F)
           36,000,000 Plain Copies                      included                 included                   included                   included
             120,000 Color Copies                       included                 included                   included                   included
               Printing Supplies                          7,587                    7,587                    included                     7,587
   (100) 5.5” x 8”, 12 Page, 2 Staple Spine             included                 included                   included                   included
    (100) 8.5” x 11”, 50 Page, Tape Bound               included                 included                   included                   included
 (100) 8.5” x 11”, 1 Page, Tri-Fold Brochure            included                 included                   included                   included
  Current Outsourcing (Reminder Binders)                134,790                   23,030                     23,030                     23,030
                      Total                             521,726                  389,897                 400,462 (E)                   312,845

(A) salaries and benefits for three District #204 employees

(B) Canon staff to include three positions, interviews and first consideration given to current District 204 employees

(C) 214,000/year for five year lease-to-own, after five years maintenance is 168,000/year

(D) to start August 1, one-time buy out of remaining months (August – October) for three Xerox machines, Kodak IS 110, Toshiba color

(E) 400,462 (if starting August 1) for first year; 362,030 (if starting November 1) for first year; 362,030 in years 2 – 5; 316,030 after year 5

(F) Xerox staff to include two split shift positions, shop open 12 hours/day, interviews and first consideration given to current District 204
   employees, Aramark will offer an interview for the third District 204 employee


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