Spent most of today working on finance and budget issues preparing for the GTPS Finance committee meeting this week. I have most of the information put together to describe the transactions that are needed to take place in order to put the deal together for the new Xerox copiers into use at GTPS. There are several reasons why the new copiers are a good deal but the most compelling is the cost factors and the savings that they represent to the district. After all is said and done the costs to the district will reduce by about $1,000 per month for the life of the new agreement which will run for 60 months. If I were to not renew and restrike the deal this month I would be paying the same lease payments over the next 30 months which is the remainder of the lease agreement in effect at present. That would be an expenditure of over $30,000 that would be a constant cost. I would then have to wait to either put together a new deal with Xerox or Canon at that time. The $30,000 would have been spent on the current agreement instead of $30,000 less which actually results in a $60,000 gain for the district. The rest of the term on this new agreement will net a $30,000 additional savings for the district for a grand total of $90,000 over the course of the new 60 month agreement. However, it is easy to lose track of the real benefit of this new deal and that will be the following two negotiated points: one, unlimited copies for the four larger elementary schools, we made over 3,000,000 copies off the existing units this past 11 months and we have paid over $15,000 in excess copy charges for the right to make those copies. Not any more. In addition, we are going to be able to put a brand new color production system into the central office that will enable us to double our output and significantly increase out level of color output for the many and various school projects that we do during the course of a school year. This is a great deal for us and hopefully with the addtion of all the new Canon copiers as well as the upgrades to the new Xerox units we will have put the copier problem to bed for the next 60 months. At that time both contracts will come due and we will be able to negotiate a combination type of new agreement either between the two vendors or have a sole source for the districts copier compliment. Between Canon and Xerox we will have cut approximately $250,000 off the cost of copiers in the district over the next 60 months and we will have significantly increased our capabilities in this area. The thing I am most excited about is the increase level of color copier and printing production that we will be able to produce for the customer base. We have used the present system to death and it will continue to work but the production quality will be limited. The next piece is to put a better spin on what we will be able to produce for the schools. That will be a project for the spring.
The next few weeks will be spent primarily on the budget. Everything from a video production on the budget to some line by line number crunching till its wrapped up. I will be working on some cross referencing spreadsheets to determine if we have everything covered.
I also have to put together some numbers justifying the switch from the pagers to the new Nextel units. Once the Nextel units are up and operational we will address the actual increase in effciency that we can gain from their use. I will also need to send back the pagers and try to recoup a refund on the $2,800 we had spent on these units. I will work on putting a better explanation on the cost / benefit on the use of the one to one communications. Till next post.
7:49:18 PM 
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