Agenda Packets - 2007/06/25 - Laserfiche WebLink

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Item No. 07G Meeting Date: June 25, 2007 Type of Business: CB City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Desaree Crane, Assistant to the City Administrator Item Title/Subject: Resolution 7079, Approving the Purchase of a New Postage Machine The lease for the City’s postage machine (E595 Pitney Bowes) will expire at the end of June. Due to this lease expiration, Staff researched other postage machine companies to see if there were more efficient postage machines at a lower cost to the City. Staff received three quotes – Minnesota Mailing Solutions (Hasler), Neopost and Pitney Bowes. In 2002, the City leased its current postage machine, and as with any equipment its effectiveness has diminished. Staff is requesting that a replacement postage machine/scale be leased or bought due to diminished effectiveness. In addition, Staff feels that this would be the best time to find other competitive rates since the lease will be expiring. Neopost did submit a proposal, but the postage machines they had did not meet the needs of the City. They were too small for the City’s needs. Therefore, Staff only considered Minnesota Mailing Solutions (Hasler) and Pitney Bowes. Currently the City is paying $262.00 per month to lease its postage equipment from Pitney Bowes and a yearly maintenance agreement for $473.00 a month. Not including the yearly maintenance agreement, the city has paid $15,720 for the current postage machine. That is calculated at $262.00 times 60 months (the city is currently under a 60 month lease with Pitney Bowes). On the May 7, 2007 City Council Work Session it was the consensus of Staff and the City Council to purchase the machine due to the future cost savings. The quotes given to the City Council at the May Work Session have changed. Soon after the May City Council Work Session, the Post Office discontinued the 15 pound scale and only offers machines with a 10 or 30 pound scale. Although the 10 pound scale normally does not meet the needs of the City, a 30-pound scale is very expensive and is available on mostly very high volume machine. Staff then explored other options, and found that the City only mails heavy packages (weighing over 10 pounds) about once a month. Therefore, any packages over 10 pounds could be weighed on any scale and the data could then be inputted in the United States Postal Service Website (www.usps.com). After inputting the data into the website, a postage cost is calculated. Staff can then hand calculate the postage amount in the new postage machine and still mail the package from City Hall without going to the post office. Staff asked Minnesota Mailing Solutions (Hasler) and Pitney Bowes to re-quote the machines with a 10 pound scale. After numerous hours and days of negotiating, here are the final proposals: