Title
Mail Inserter Equipment Lease (NB)
Staff recommends leasing a remanufactured mail inserter from Pitney Bowes Credit Corporation.
Explanation
The Utility relies upon the use of an 8 Series System Mail Inserter manufactured by Pitney Bowes to process utility bills which includes reading, scanning, folding, stuffing envelopes and applying postage to approximately 88,000 utility bills per month. The existing mail inserter is being leased from Pitney Bowes; however, the current inserter is not capable of meeting the United States Post Office's requirement that all equipment applying postage to bulk mail documents must be upgraded to digital capability by December 31, 2006. The Mail Services staff attended meetings hosted by the U.S. Postal Service which included a trade show of mail processing and inserter equipment. Based on information obtained at these meetings, staff learned there are only two manufacturers that have equipment that offers the features and flexibility required by GRU, which includes adjustable sizing without speed reduction for up to five inserts.
Purchasing solicited written quotations from the two manufacturers of this equipment, Pitney Bowes and Bowe Bell Howell. Pitney Bowes' written quotation includes pricing for a new and remanufactured machine, which are $4450 and $3199 per month, respectively. Bowe Bell Howell was requested to provide pricing for a new and remanufactured machine, but only submitted pricing for a new machine which is $5058 per month. Staff is recommending leasing a remanufactured machine from Pitney Bowes versus a new machine, which will result in a savings of $15,012 per year. The monthly lease amount includes maintenance, supplies and software upgrades. The recommended not to exceed amount includes $3839 for shipping costs.
Recommendations
The City Commission authorize the Interim General Manager or her designee to execute a five (5) year lease for a mail inserter system with Pitney Bowes Credit Corpora...
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