CCP 10-29-1990 - Laserfiche WebLink

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. . MEM)RAN])UM --------------------------~~--~._--------------------------------------- DATE: October 26, 1990 . 'ill: Gary R. Berger, Clerk Administrator - FRCM: Catherine J. Iago, Deputy Clerk RE: Request to Lease Mailing System - pitney Bowes --------------------------------------------------------------------------------- A representative of pitney Bowes recently campleted an analysis of the existing m3.iling system, due to the nUlllber of service calls for the current system and to detennine if the m3.iling demands are conducive with the m3.chine capacity. I met with pitney Bowes Sales Consultant Barbara Gehl to review the results of the m3.il system analysis and was advised that our current mailing needs exceed the design capacity of our equipment. She also stated that the replacement parts for the m3.iling system are no longer nanufactured by pitney Bowes and, therefore, m3.intenance costs are higher since the company utilizes outside sources for purchase of replacement parts. Barbara stated the company has two m3.iling systems in use that are becoming obsolete and pitney Bowes is offering incentives to customers to upgrade the older systems. 'Ihe attached infonnation sheet outlines the current costs to the city and the proposed savings by utilizing an Electronic Scale versus the current spring-operated scale. (Approxilnately $52.50 per mo.) You will note the meter . rental fees are slightly lower and the proposed system offers the City the following advantages: - Postage installation by telephone; currently the meter portion of the mailing system must be taken to the post office to install additional postage. - Ease of operation; the new system provides semi-automatic feed, self co=ecting envelope alignment (which will decrease damage to envelopes), and an up:1ated labeling system for W1k packages which require self-stick labels. - Cost savings; replacement parts will be less costly as the company stocks parts for the upgraded system and the old system parts are obsolete and supplies are slightly l~ in cost, as well as easier to install. In addition to the above-mentioned advantages, pitney Bowes is offering a low interest rate, (9.9%) on a 48-month lease to customers currently utilizing the older model m3.iling systems. 'Ihe monthly leasing fee is $88.50 per month, with a buy out at the en::l. of the leasing term at a cost of 10% of the mrket value of the system. Pitney Bowes has stated the city may upgrade the system at anyt:iJne during the term of the lease, if the mail demand increases. Also, additional features m3.y be added to this system which will increase efficiency and save t:iJne for staff, such as: - Automatic accounting of mailing costs to each deparbnent. - Automatic feed of all mailing pieces. - Automatic postmarking of m3.il. . 'Ihe system proposed for lease is the low en::l. of this model series and has been designed to effectively serve small to moderate volume mailers. . I respectfully request your consideration to recommend to Council, lease of the pitney Bowes Semi-Automatic Mailing System, Series #6260, at a cost of $88.50 per month. Please note, since the city owns the current equipment, the monthly lease cost for the mailing system was not included in the 1990 Budget, only the maintenance and meter rental costs.