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• <br /> ip <br /> _ Section:nda 11.G <br /> REQUEST FOR COUNCIL CO`+SIDEKATIO,i E,enor:YnT^;er. 94-1216C <br /> F.epor-Date: 6-23-94 <br /> STAFF REPORT courcl Ammon: <br /> C Special Order of Busin es <br /> CITY COUNCIL -TLNG DATE June 27, 1994 <br /> P•ibiic Hearings <br /> C Consent Agenda <br /> t Councii Business <br /> Item Description: Consideration of Approval to Enter Into A Lease Agreement with Pitney <br /> Bowes for a Postal Machine <br /> Administrator's Review/Recommendation: <br /> - No comments to supplement this report Sliadie e <br /> - Comments attached. <br /> ExplanadoniSummar7 (attach supplement sheets :L aecessarj.) <br /> FM/MARY; <br /> The postage machine that the City is currently using is part of a lease <br /> arrangement that was entered into about five years ago. It is a Pitney <br /> Bowes model 5630. It has met the mailing needs of the City but it is worn <br /> and has grown obsolete. The updated version of this postage machine is the <br /> Pitney Bowes U560. It is very similar to the older model, but without some <br /> of the problems that came with it such as the tape sealing mechanism that <br /> at times doesn't work properly, the difficulty in changing the tape and the <br /> noise level that is produced when operating the system. <br /> The City was due to upgrade the postage machine in January of 1995. The <br /> , quarterly payment, which includes the postage machine, the meter rental, <br /> maintenance of the system, and reset charges, would be about $1, 100. On <br /> the old machine, the City currently pays about $900 per quarter. As an <br /> incentive to enter into an agreement earlier, Pitney Bowes offered keeping <br /> the payments the same' for the balance of 1994 and then would increase <br /> beginning in 1995, which is what would have happened had the City upgraded <br /> in 1995. <br /> The length of the lease would be 51 months with an option to buyout the <br /> system for $1. <br /> Other vendors were contacted but none were as competitive with Pitney <br /> Bowe's pricing and quality of equipment. <br /> O'k 44424 <br /> Tim Cruikshank, Asst. to City Admin. <br /> RECOMMENDATION: <br /> Authorize staff to enter into lease agreement with Pitney Bowes for 51 <br /> month lease for postage machine. <br />