HomeMy WebLinkAboutDocumentation_Regular_Tab 7B_6/20/1991 it
VILLAGE OF TEQUESTA
;ft Post Office Box 3273 • 357 Tequesta Drive
�� � e Tequesta. Florida 33469-0273 • (407) 575-6200
l` ° FAX: (407) 575-6203
CA, c000
iviEMO RANI)UM
TO: Village Council
FROM: Thomas G. Bradford, Village Manager 7
DATE: June 14, 1991
SUBJECT: Authorization to Execute Lease Agreement
for Xerox Copiers; Agenda Item
Approximately four and one-half years ago, the Village entered
into two separate five-year Lease Agreements for its two Xerox
copying machines. The primary machine is located in the
Administrative offices, the secondary machine located within the
Water Department offices.
In a nutshell, the Village has exceeded the contractual copy
allowance capacity for its primary Xerox copier. The primary
machine breaks down and requires unscheduled maintenance an
average of once every week. The secondary machine lacks
sufficient automation features causing it to be cumbersome to
utilize.
The total cost of photostatic copying involves purchase/lease
payments and supplies. The attached proposals and recommendations
prepared by Ms. Joann Manganiello indicate that the proposed Lease
Agreement which provides for free supplies and very favorable
financing terms will actually save the Village money versus the
current costs we are experiencing for the primary copier.
Staff recognized this photostatic copying problem one year ago and
requested funding for the same. The Village Council authorized
allocation of funds to upgrade its Xerox machines during this
fiscal year.
It is recommended that the Village Council authorize the Village
Manager to execute the attached Lease Agreement for one ( 1 ) Xerox
copier 5052 in the total amount of $20, 403. 72 per the State
Contract price for the same and the Lease Agreement for one ( 1 )
Xerox copier 5028 in the total amount of $7, 322. 86 pursuant to the
terms of the Dade County Bid No. 91-L-ABC.
TGB/mk
Attachments -
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turning products into productivity:
The 50 Series
Introducing the Xerox 5052 Copier
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•- XEROX Xerox Order Agreement
This Xerox Order Agreement covers transaction(s)checked below and incorporates the General Terms and Conditions attached hereto and
other Terms and Conditions referenced below.
E mebdPurr .: - ❑insffi:ment Purchase ❑Term Lease El Equipment Services ❑Software License
❑Yes Maintenance No❑ ❑Yes Maintenance No❑ El Financed Equipment Configuration Change ❑Maintenance Only
BILL TO CUSTOMER NAME '_ INSTALLED AT CUSTOMER NAME
1 J • 1 i2 1 ? 1 i1 cbt`- T^••�i- I 1 1 1 1 1 i 1 1 ' _ 1/r _a___ 1 1 1 1 1
PAR fJT C MPAN.1fIF ER 1 T1 U NAME OVERFLOW //fir• /7/�/�'
it i t r i 1 1 1 1 1 1 III tilt t 1 1 t �WPM1 I (i A� i• 1 t I t t
I STREET ADD�DR `e FLOOR.ROOM ROUTING�1 �/1 r ���j/( G/inc..,
�� Q
l Y� 7 ) , 1•�t TVA 1 f 1 , 1 AA I ( �� �T i/'� I 1
j BOX NUMBER:Rif—ING STREET ADDRESS
I i STA ZIP CITY STATE ZIP
-C' �iA R _33y( ' _
• I
Equ pment Order Information c'r ti<'�� p 4 05).,,� r . ' ' w�ii15;.�.5,,E—A^a 17, . . w' i'
� •'.1;x f.'t t •2=;3 ? • R$e . t...- - , . f1 i1•'r t t I} .,, t•+ %
Ot� ! Xerc,Win,_•,Se: ••f in place) - List Price Total La:S Less bodes-sons Net Pnoe B. Total Net I ry. - 73
•• To Punch Trade-In Otter Pnce J
Xerox D oZ I8r _— �7 i C. Down _�
la, Inffll J /,j Pn Payment
`*b ■ D. Cash Price (� p
Xerox i -- BBB--C7) a I O p.73
• _-- E.
Charge�
or
I IXerox
aI �'terew % I a.3l Co.
Xerox _-- F. Time Balance / a y L
(D+E)
--- G.Tune Sale
Xerox Price(C+F) 0 c2-3 72
•Xerox _-- _a Monthly Installments
Meters 7 7
1 2 Order-Agreement -� of$ 50 -
_ 7� Total Net Prx:e (Exdlsi a of
l 3 4 a Totals --- "', `� Sales/Use Ta Placerrtent.
y �ta:p? �6 w+w..c-?ipri Fo+,rrcte 407'/_ Term orAgmoment(Check One Ptah) ❑ za Monet 0 3s Month 0 as Monet ❑ so Month 0 Other
.c _ M, .,fi ..
Desatption c Maintenance Component in Total Monthy Lease Payment Total Monthly MinlnUm Lease Payment $
I E otar e al Saes.ae'r.,and P%cement Charges;
Purchase Option Amount: $ Copy Charges will be Bled separately in accordance with the Maintenance Price Lis:Indicated
Copy Nlowarxx Copy Charge Billing Cycle
The interest payable for State/Local Government Installment Purchase or Term Lease subject to this order is S (for Term
Lease this assL--tes the option to purchase is exercised at end of lease period) at a rate of % K-12 Summer Option
r
M" •,&: 3omplete Thts Section Fqr q_uipment Set aces Or KRamntenance, OrSofware 11cc ~ v;- ._ .-�..w arise '. _ W-,4N7.7i,.-,='
Hardware Price Pan Description: ii1QJQkQ \ ' '" I Initial Term: Billing Cycle: Contract Number. 1!Q'?3 Fl7'
Software Price Plan Description: C()1 T!I `.' Initial Term: Billing Cycle: Contract Number.
Gov't.Firm Contract Option❑ Gov't Fiscal Year Option 0 Gov't Fiscal Year Begins: / / K- 12 Summer Option
Existing Equipmem (List Serial Numbers) ` aoteC scores MI be tee°and tarred lc:re"...stoma,Kr rPrtai^ PURCHASE ORDER /CONTRACT INFORMATION:
p n p�` pw[rnE t as desgnaled en the referenced Pnce tea:
I 4/0 7 7 O 7 P a. Does this C.e...,rci„oe prenacted swdes na n+cua•� Billing Purposes Only)
I ❑No❑Yes (Purchase Order References are for
r++e Eeuorten;�urcltase Once'
:...atpmM agrees to accept are gay fa Inv n,s 0 No 0 Yes
arepaued swo'es Customer Requires Purchase Order Number: ❑ No ❑ Yes
honer can reeuest removal or return of Wat.(Yeo cke:scores arc
recer„e run vein ADDITIONAL SUPPLIES Customer Purchase Order Numbers: ,
OTY. REORDER• SUPPLY ITEM UNIT PRICE Equipment
Tax Exempt 0 Nc [ Exerptior)_certificate) Maintenance: '
Placement Charge Appicable LJ Yes U No
To-Whr'anty Waite(Fat RArchase5O1111) _ SuPP :
Tots Prec:ard Months
Xerox Supply Contract•:
Earliest Customer Acceptance Date: - - Master Purchase Agreement•:
CUSTOMER MUST INITIAL TO ACKNOWLEDGE RE • •F XEROX PRICE UST,ALL PAGES AS IDENTIFIED.TERMS AND CONDITIONS AND OTHER DOCUMENTS DESIGNATED BELOW
Dated Dated Initials Dated Initials
Xerox Price List• 6,ThI fir ./ :Intenance Services Terms and Conditions 7/1/90 Other
• ki COO O V -1/ ! Term Lease Terms and Conditions 7/1/90 Other.
Maintenance Price l.iw• - Equipment Services Terms and Conditions 7/1/90
Gov't Contract/Price List s - Software license Terms and Conditions / Financed Contract Number
Xerox Order Agreement Addendum(s) ______ :7/1/ /
Equipment Trade-In Terms and Conditions l- ) 95
t Equipment Purchase'Terms and Condition 7'/1/90 xtended Service(Warranty)Amendment _ Sales rep Emo.• — — — — — —
Installment Purchase;erns and Conditions 7/1/90 Negotiated Contract• VD 3 PO Q) / -
QistUmee r I I
• Sales Rep Order
By(Please Print) Ad rho viedge
Signature %Xerox Corporation,,.. art
_ signature
Title Date �/ Title pate
_ .. _ . . ... — n . n .
. .
To mark 50 years of
turning products into productivity:
The 50 Series
Introducing the Xerox 5028 Copier
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• This Xerox Order Agreement covers transactlon(s)checked below incorporates the General Terms and Conditions attached hereto and
other Terms and Conditions referenced below. __
13JF.quipnleDt.Eurcha. = 1 ['Installment Purchase I Term Lease -_�.�T7_,rvice `1JEtjUIPTitg{it Sertirlpes. ❑Software License
❑Yes Maintenance No❑ CI yes Maintenance No❑ El Financed Equipment Configuration Change ❑Malntenent e'Only.
BILLUSTC/AER NAME ///7. ��_ (�( /l��/ //y� INSTALLED AT,CUSTOMER NAME (/��1f \t I `�1 1 t ( t€ I off 1 ( \ t t 1 1 t t t t 1 1 a l�J 1 1 t 1 1 t 1 1 1
PARENT COMPANY OF ERENT) tr/j o NAME OVERFLOW /�J-J}
1 I 1 t 1 I I I I I _i r I I 1 1 1 1 1 1 I I r 1 W f 1 1 i 1 1 1
STREET ADDRESS
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1 I �V l 1, I I et W� Irl�1 J 1 ,1 l 1 I I 1 1 1 I I I I I I I I I I I I 1 1 1
BOX NUMBER/ROUTI STREET ADDRESS
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C TATE ZIP CITY STATE ZIP
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Equipme t Order Information 1.1 .'.• Equipment;Pu**se or Prepaid Software License 7.r.` .. ,c. tnstalimepf- hese -:i-
Qty. Xerox Product(Ser.#if in place) List Price Total List$ ss lore Net Price a Total Net
Opt To Ruch. Traadede-N Outer Price
Cash Down
1 Xerox 5 ZTp4 _ C.Payment
Xerox i I tZ.Ci\Qh 1(I lA(,1/. D.
(Principal
B-C(
Xerox ( )
E.Finance
Xerox Charge or
Interest
Xerox at %
F. Time Balance
Xerox (D+E)
G.Time Sale
Xerox Rice(C+F)
Xerox Monthly Installments
Meters d
A. Agreement
1 2 Adderxlumle) Of
Total Net Rice (Exclusive of
3 4 B.Totals r- llm Sales/Use re waryPlacement,
Complete this Section For Lease: Term of Agreement(Check One Plan)Pla ❑ 24 Month ILi�B Month 0 48 Month 0 80 Month 0 Other
Total Monthly Minimum Lease Payment $ gilleiL ' I /d•39 Description'of Maintenance Component Included in,h)al Monthly Lease Payment
(Exdrdoe of Sales/Use Tax and Placement Charles) 9 �#1-
JV[ Copy Charges will be billedseparately in accordance with Maintenance Price List Indicated
Purchase Option Amount: $ Copy Allowance a Copy Charge PIA Billing Cycle
The interest payable for State/Local Government Installment Purchase or Term Lease subject to this order is $ q O9 ~l (for Term
Lease this assumes the option to purchase is exercised at end of lease period) at a rate of g) % K-12 Summer Option
Complete This Section For Equipment Services Or Maintenance Or Software License:
Hardware Price Plan Description: initial Term: Billing Cycle: Contract Number. /Os 3 9)30 y
Software Price Plan Description: Initial Term: Billing Cycle: Contract Number.
Gov't.Firm Contract Option❑ Gov't.Fiscal Year Option 0 Gov't.Fiscal Year Begins: / / K- 12 Summer Option
Existing Equipment(List Serial Numbers) Repacked movies will be shipped
and billed to the Customer for canes PURCHASE ORDER/CONTRACT INFORMATION:
equipment as designated m the referenced Pnce list
KID D- 314 la 1( Does this Ceder lichee prepacired emcees not Included 0 No 0 Yes (Purchase Order References are for Billing Purposes Only)
in the Equpnerd Purchase Price?
Customer agrees to accept arid pay fix the Initials- 0 No❑Yes ,--,�
prepaded supplies Customer Requires Purchase Order Number. L7 No 0 Yes
Galarer can request renewal.a rearm of billable prepacked sppies and
revel a full credit ADDITIONAL SUPPLIES Customer Purchase Order Numbers:
� / QTY.- REORDER r SUPPLY ITEM UNIT PRICE Equipment•
Tax Exempt El No C rYes(Attach Exemption,-C,ert'ate) rei
Maintenance:
Placement Charge Applicable_ElYes CTNo• Total,Warranty_-Mpnthe.(Fo Ruh
ce Only) .. &IPPI
Total Prepaid Months Xerox Supply Contract•:
Earliest Customer Acceptance Date: - - Master Purchase Agreement+:
CUSTOMER MUST INITIAL TO ACKNOWLEDGE RECEIPT OF XEROX PRICE UST,ALL PAGES AS IDENTIFIED.TERMS AND CONDITIONS AND OTHER DOCUMENTS DESIGNATED BELOW:
Dated Initials Dated Initials Dated Initials
.-�--.�-max•-.�•„_�,-. .. . ..,--
Xerox Price Ust• 'Matntanence Services`ferrria end CoridlUons 7/1/ her.
• fTerm(ease Terms end Condition. - '7/1/90"_ Other:
Maintenance Price Ust• ,Equipment Services Terms~and Conditions 7/1/90
Gov't Contract/Price List• Software License Terms and Conditions Financed Contract Number
Xerox Order Agreement Addendum(s) 7/1/90 Equipment Trade-In Terms and Conditions 95 — — — — — — —
Equipment Purchase Terms end Conditions. •7J 1490 • Extended Service(Warranty)Amendment,/ Sales Rep Errp.•
Installment Purchase Terms and Conditions 7/1/90 ._r. Negotiated Contract• I�3Q�7
I I
Customer: - Sales Rep Order 1
By(l'lease'Print) Acknowledgement D�`��e,
Xerox Corporation ne
Signature
Q Accepted For non
Title Date 30 ^/ / Xe. Title Date
Delivery Contact Phone Ext. Ste Cleared ❑ Yes ❑ No
4
VILLAGE OF TEQUESTA
46' p; Post Office Box 3273 • 357 Tequesta Drive
` v= Tequesta. Florida 33469-0273 • (407) 575-6200
�,ak� FAX. (407) 575-6203
4e ` •
MEMORANDUM:
TO: Thomas G. Bradford, Village Manager
FROM: Joann M. Manganiello, Administrative Secretary
DATE: June 12, 1991
SUBJECT: Recommendation for Upgrade of Xerox Copier Machines
Per your instructions, I have researched the feasibility and cost
effectiveness of upgrading the two ( 2 ) Xerox Copier Machines; one
for the Administrative Offices and one for the Water Department.
The Xerox Lease Agreements for both copiers are due to expire on
September 30, 1991, the end of the fiscal year. Consequently,
consideration was given to seeking new proposals from the Xerox
Corporation for both copiers and allocating funds for the same in
the FY 1991/92 Budget.
Enclosed, please find the following for your consideration and
review:
Administrative Offices
o Xerox 1050 Copier Brochure (present copier)
o Xerox 5052 Copier Brochure (proposed copier)
o Xerox 5052 Copier Proposal ( dated: May 1991 ) ; State Contract
o Xerox 5052 Copier Proposal (dated: May 1991 ) ; Straight
Contract
o Xerox 5052 Copier Contract
o Comparative Analysis of Xerox 1050 Lease Agreement and the
Proposed Xerox 5052 Finance Agreement
o Comparative Analysis of Xerox 5052 State Contract vs. Xerox
Straight Contract Pricing.
o General Government Budget FY 1990/91; Equipment Leases #4403
o General Government Budget FY 1991/92; Equipment Leases #4403
(Projected)
Pertinent data regarding the proposed Xerox 5052 Copier for the
Administrative Offices is as follows:
o State of Florida Contract #600-380-91-1, Palm Beach County
Bid, 36 month Xerox Equipment Equity Plan financed at 8%
interest ( fixed rate) .
Recycled Paper
Memorandum: Thomas G. Bradford
June 12, 1991
Page - 2
o Finance Agreement through Xerox; no buy-out.
o Proposed Finance Agreement would be effective as of June
1991.
o Monthly payment of $566. 77 is based on termination of present
Lease Agreement after June 1991 payment (payment #57
including Balloon Payment) , balance payment of $1, 965.48, and
full-value trade-in of present Xerox 1050 Copier.
o Monthly payment includes free full-service calls ( all parts
and labor) , free copies, free supplies (except paper and
staples ) and a Total Satisfaction Guarantee ( 3 years from
equipment delivery - replacement without charge ) .
o Savings afforded: Monthly Annually
Meter charges (extra copies ) $45 - $50 $540 - $600
Supplies $90 $1, 055
Total Savings $135 - $140 $1, 595
o Net Purchase Price: $18,086.73
o Interest @ 8% 2,316.99
o Lease Price: $20, 403. 72
Under the terms of the present Xerox 1050 Lease. Agreement, the
monthly payment is $451 . 23 per month, plus an additional meter
charge of $45 - $50 for extra copies (based on 20, 000 copies per
month with a 15, 000 copy allowance @ . 01000 per copy) . In
actuality, the monthly payment is approximately $496. 23 -
$501 . 23. With the cost of supplies averaging $90 per month, the
monthly cost rises to $586. 23 - $591 . 23. If the Village decides to
"purchase" the proposed Xerox 5052 Copier, it will not only
"upgrade" the present copier but also realize a savings of $19.46
- $24.46 per month, $233. 52 - $293. 52 per year, and a total of
$700. 56 - $880. 56 over the term of the Lease.
At present, the average monthly volume on the Xerox 1050 is 20,000
copies/month. The proposed Xerox 5052 Copier has a recommended
volume range of 30, 000 - 50, 000 copies/month. I have been assured
by Ms. Fran Onofrietto, Xerox Account Manager, that the Xerox
5052 can easily handle the volumes produced by the Village
Manager's Office, Finance Department, Police Department and
Building Department. Our average service calls per month is 4,
which is considered high. Ms. Onofrietto attributes this to an
increase in the recommended production per month, and perhaps,
abuse from many operators. The Xerox 5058 features an Electronic
Auditron which monitors the volume of copies produced per
individual and/or department per month. This will be an excellent
"tracking" system.
Memorandum: Thomas G. Bradford
June 12, 1991'
Page - 3
Per your request, I have also made a comparative analysis of the
proposed Xerox 5052 State Contract vs. Xerox Straight Contract
Pricing. To summarize, under a 36 month term lease with a monthly
payment of $503 . 63, plus an additional meter charge of $232 . 00
. (based on 20, 000 copies per month with no copy allowance @ .0116
per copy) , the actual monthly payment would be $735. 63. This
would be $168. 86 more per month than the State Contract. Factor
in an additional $90 per month for supplies, and the average cost
per month totals approximately $825. 63. Also, the Xerox Straight
Contract includes a $2, 200 Purchase Option available at the end of
the Lease term. There is no buy-out under the State Contract.
Water Department
o Xerox 1025 Copier Brochure (present copier)
o Xerox 5028 Copier Brochure (proposed copier)
o Xerox 5028 Proposal (dated: May 1991 )
o Xerox 5028 Copier Contract
o Memorandum regarding 'Copy Machine Upgrade' from Thomas C.
Hall, Water System Manager, dated November 9, 1990, with
original Xerox 5028 Proposal
o Water Department Budget FY 1990/91; Equipment Leases #4403
o Water Department Budget FY 1991/92; Equipment Leases #4403
(Projected)
Data relating to the proposed Xerox 5028 Copier for the Water
Department is noted below.
o Dade County Bid #92-L-2, 36 month term Lease Agreement.
o Includes $825 purchase option available at end of Lease term.
o Proposed Lease Agreement would be effective as of June 1991 .
o Monthly payment of $178.29 (w/Mechanical Auditron option) is
based on termination of present Lease Agreement after June
1991 payment (payment #57 including Balloon Payment) , balance
payment of $474.02, and full-value trade-in of present Xerox
1025 Copier. Note: The Mechanical Auditron is a $415 option
and must be included in the Net Purchase Price.
o Monthly payment includes free full-service calls (all parts
and labor) , free copies and a Total Satisfaction Guarantee (3
years from equipment delivery - replacement without charge) .
o Net Purchase Price: $5,924.02
Mechanical Auditron: 415.00
Net Purchase Price: $6,339.02
Memorandum: Thomas G. Bradford
June 12, 1991
Page - 4
o Lease Price: $6,418.44
Interest @ 8%: 79.42
Buy-out: 825.00
Total Lease Price: $7, 322.86
As noted in a memorandum to you from Thomas C. Hall, Water System
Manager, dated November 9, 1990, funds were allocated in the FY
1990/91 Budget for upgrading the Water Department' s present copier
machine. At that time, Mr. Hall also received a proposal from the
Xerox Corporation for the Xerox 5028 Copier ( see attachments ) .
After further review of Mr. Hall ' s original Xerox 5028 Copier
proposal ( 1990 ) with Ms. Onofrietto, it was determined that the
actual monthly payment for the above referenced Lease Agreement
would be $178. 29 (w/Mechanical Auditron) as opposed to $192 . 86
(w:'out Mechanical Auditron) , as originally stated. Therefore, the
annual expenditure increase of $1, 092. 24, as anticipated by Mr.
Hall, will actually amount to $917 . 04 - realizing an additional
savings of $175. 20 for FY 91/92 and a total of $525. 60 over the-
term of the Lease (which, in fact, will cover the cost of the
Mechanical Auditron option, $468. 36, over the term of the Lease) .
As we discussed, the Mechanical Auditron feature will enable the
Village to keep track of copy volume per individual or department
by means of an access code key. The recommended monthly usage for
the Xerox 5028 Copier is 10, 000 - 15, 000 copies/month. Presently,
the Water Department averages 4, 000 copies/month. It is,
therefore, feasible for the Water Department, Department of
Community Development, and the Department of Public Works and
Recreation to use this copier exclusively. Please note that there
is a $38.00 charge per access key for the Mechanical Auditron
feature and I anticipate the need for 3 keys (Water Department,
Department of Community Development, and Department of Public
Works and Recreation) at a one-time cost of $114.00.
Also note that there will be an increase of approximately $260 -
$300 per fiscal year in the cost of supplies for the proposed
Xerox 5028 Copier due to the fact that this new copier uses
replaceable copy and dry ink cartridges. This additional cost
will, ` however, be offset somewhat in meter charge savings
averaging $130 per year. Under the terms of the present Xerox
1025 Lease Agreement, there is an 18, 000 copy allowance per six
month period @ .0105 per copy. The Water Department averages
24, 000 copies/6mos. which is approximately $130 a year in extra
meter charges. The proposed Xerox 5028 Copier has unlimited
copies.
Memorandum: Thomas G. Bradford
June 12, 1991
Page - 5
The present Xerox 1025 Copier is a manual , low-volume copier
which, while producing satisfactory copies, is limited in today' s
state-of-the-art features. Consequently, by virtue of the time
required for photocopying, employee ' productivity is greatly
reduced. The proposed Xerox 5028 offers many automatic state-of-
the-art features, handles larger volumes, and has a faster copy-
per-minute speed. It would, undoubtedly, require less time for
photocopying and result in greater office productivity. It could
also serve as a back-up copier, if necessary.
Based on and substantiated by the information included herewith, I
find it both feasible and cost effective to upgrade the two Xerox
copiers. The prices and terms, as noted, will remain fixed for the
duration of the Agreements. However, these bid prices will expire
in September 1991, the end of the fiscal year, and are subject to
change.
In light of these circumstances, I see no benefit in waiting until
the present Lease Agreements expire. Apparently, funds were not
allocated for the Xerox 1050 Copier purchase option ($1, 259. 90 ) in
the FY 90/91 Budget. Therefore, an Intrafund Transfer will be
necessary to cover this and remaining expenditures in the General
Fund "Equipment Leases" Budget for FY 90/91 (see attachments ) .
Remaining funds are available in the Water Department "Equipment
Leases" Budget for FY 90/91 to effectuate a new Lease Agreement
immediately. The full-value trade-ins on both copiers more than
cover the balance of the buy-outs. Therefore, I recommend that the
Village terminate its present Xerox Lease Agreements and enter
into new Agreements with the Xerox Corporation for the acquisition
of a Xerox 5052 Copier and a Xerox 5028 Copier, effective June
1991 .
Should you have any questions or need further clarification, I
will be happy to discuss the same with you at your convenience.
Enclosures
cc: Bill C. Kascavelis, Finance Director/Village Clerk, w/attachs.
Thomas C. Hall, Water System Manager, w/attachs.