07-25-2022 City Council Packet - Laserfiche WebLink

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Executive Summary The City of Lino Lakes has been a customer of Quadient for over 16 years. During my meeting with Hannah Lynch, we discussed how the mail volume has decreased because the utility bills are being outsourced. Hannah also presented the current annual maintenance invoice, and it has increased on a yearly basis. Currently the City of Lino Lakes owns their mailing machine and pays for the meter rental and annual maintenance. I also informed Hannah that the current mailing machine will be non -compliant with the USPS within 2 years because of the new IMI barcode required on the meter. I agreed to provide Hannah with pricing and information on a new machine and provide both purchase and leasing options that she could present at the July 25th meeting. Current Mailing Situation • Currently own an IN-700 mailing machine that is now a larger machine than is needed for their current volume. • The annual maintenance continues to increase due to the age and size of the machine. • The USPS is requiring all mailing machines to have the new IMI barcode within the next 2 years so the IN-700 will be non- compliant. • The machine is over 6 years old and starting to show its age. Quadient Recommendations • Quadient recommends right sizing the mailing machine to an iX-5 auto feed which is more appropriate for the volume. • The new iX-5 has the IMI barcode needed to be compliant with the USPS. • Quadient also recommends leasing the new machine to help control costs be locking in the monthly amount for 5 years. New Equipment Impact • The Quadient iX-5 mailing machine is very similar to the current machine so there will be minimal disruption with the installation. • The new iX-5 is already manufactured with the new USPS IMI barcode requirements so there will be no down time when the process is implemented. The proposed lease amount will save money over the life of the lease vs owning the current machine and paying the increased maintenance every year. This document is strictly private, confidential and personal to its recipients and should not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the express written consent of Quadient. quadient