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<br /> <br />Item 07A <br />June 25, 2012, City Council Meeting <br />Page 2 <br /> <br /> <br /> <br />Discussion: <br /> <br />Pitney Bowes and Neopost/Hasler are the only two companies that Staff is aware of that <br />provides commercial postage machines. Staff asked Neopost/Hasler to provide the City a <br />quote for a new postage machine. Attached is the lease agreement provided by <br />Neopost/Hasler. Staff did not obtain a quote/lease agreement from Pitney Bowes because <br />Staff has had very negative dealings with this company in the past. The City used Pitney <br />Bowes in 2002, and at that time Staff had repeated difficulty in getting maintenance <br />technicians to service the machine, poor customer service (sometimes you are on hold for <br />over an hour), and most of the time Pitney Bowes customer service/technicians would <br />promise to call you back on machine issues and never do. Staff would always be the one to <br />follow-up on issues and not Pitney Bowes. It appears that their customer service has not <br />changed because it took Staff over five (5) months to get an answer from Pitney Bowes on a <br />maintenance agreement for the current postage machine. <br /> <br />In 2007, Staff purchased the machine instead of leasing because it was more cost effective. <br />The Finance Director and I reviewed the attached lease agreement provided by <br />Neopost/Hasler, and it was determined that it would be more cost effective for the City to <br />lease the postage equipment. If the City were to purchase the machine, and the machine <br />become obsolete, then the City would be forced to purchase another machine, along with <br />another maintenance agreement, etc. The lease agreement includes the maintenance <br />agreement cost, postage meter, software upgrades (this includes postage rate changes), <br />installation, and training. If the postage machine becomes obsolete during the term of the <br />lease, then Neopost/Hasler will replace the machine with something similar. <br /> <br /> <br />Recommendation: <br /> <br />Staff recommends approval of a lease agreement for a new postage machine (IS-420 <br />w/ISWPS) through Neopost/Hasler for $117.23/month for 63 months. This purchase will <br />come out of budget number 100-4160-5100. <br /> <br /> <br /> <br />Respectfully submitted, <br /> <br /> <br />___________________________ <br />Desaree Crane <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />