HomeMy WebLinkAbout1998 03 23 Consent Item H
COMMISSION AGENDA
ITEM H
REGULAR
CONSENT XXX
INFORMATIONAL
MGR (XEPT ~
Authorization
March 23, 1998
Meeting
REQUEST: Finance Department is requesting City Commission approval to purchase new
mailing equipment consisting of a 2-station folder/inserter and Burster in the amount of $15,800,
to replace current Pitney-Bowes equipment purchased in 1992.
PURPOSE: The purpose of this Board item is to request Commission approval to replace the
current mailing equipment purchased in 1992 with new equipment from Basetec Office Systems
of Orlando II, Inc. in the amount of$15,800.
CONSIDERATIONS:
A. Replace current equipment that requires maintenance before each billing process.
B. The current Pitney-Bowes equipment was purchased in 1992 and is fully
depreciated.
C. The proposed equipment requires less maintenance, is easy to add additional
stations and upgrade.
D. Equipment can be purchased by attaching to a current contract with the Dept. of
Disability Determination, State of Florida.
ISSUE ANALYSIS (if applicable):
A. The equipment is worn out and incurring excessive maintenance costs.
B. By replaceing the existing equipment and add additional stations at a later date
we can expand the capabilities of mailing more information to the citizens.
FUNDING:
A. In Fiscal Year 1997-1998 Budget is $15,000 allocated for the replacement of this
equipment. The proposed equipment is quoted at $15,800. The additional $800
will be funded through a linecode transfer from excess money in Vehicles.
1. Fund Source Account# 1360-56410
2. Time of Expenditure will be within 30 days after delivery.
RECOMMENDATION:
1. Recommended Action is approval to proceed with the acquisition of this
equipment.
2. Recommended Funding will be from the General Fund from the budget of the
Billing Department.
IMPLEMENTATION SCHEDULE:
Immediately upon approval.
ATTACHMENTS:
1. Memo to City Manager from Finance Director.
2. Quotation from Basetec Office Systems of Orlando II, Inc.
COMMISSION ACTION:
CITY OF WINTER SPRINGS, FLORIDA
1126 EAST STATE ROAD 434
WINTER SPRINGS, FLORIDA 32708-2799
Telephone (407) 327-1800
MEMORANDUM
To: Ronald McLemore, City Manager
From: Harry Martin, Finance Director ~
Date: March 13, 1998
Re: Replacement of Mailing Equipment
In October, 1992, prior to becoming part of the Finance Department, the Utility Department
purchased a Burster and Inserter to mail the utility bills. This equipment was purchased from
Pitney-Bowes for $12,450 and currently is carried on the Utility records as a fully depreciated
asset.
For the period October, 1994 through September, 1997 we spent $4,661.36 for maintenance on
this equipment. Since October, 1997 we have spent another $880.50. At this rate we could
expect spend another $750 to $1,000 over the next seven months. We also have to pay $993 per
year for postage meter rental, we spent $1,211 over the past two years for maintenance on the
postage machine. The postage machine is over 15 years old, fully depreciated and is used mainly
as a sealer for the billing envelopes.
We are constantly having problems each time we do the billing. We do not know if the equipment
is going to operate properly when needed. The equipment has been serviced by Evcor, which is a
local company. They do not have the most reliable service. We have contacted various other
companies on service for this equipment and they are not interested. This has been a
tremendous problem ever since the equipment was purchased. This equipment is only capable of
inserting the utility bill and a return envelope into the mailing envelope.
I am proposing that we replace this equipment with a NEOPOST Model 4850 Burster w/cabinet
and a NEOPOST Model SI70 Folder/lnserter. The proposed equipment is a Burster and two (2)
station inserter $15,800. This equipment could be purchased by piggybacking on a current
contract with the Dept. of Disability Determination, State of Florida.
Page Two
March 6, 1998
On Tuesday, March 10th, JP, Barbara and myself traveled to the City of St. Cloud and viewed in
operation, without a salesman present, the same type of equipment except older. They use it for
mailing utility bills similar to ours. The operator said they have had very little downtime in the 5
years they have had their equipment and when it was necessary to call for service a repair person
responded within a few hours.
I am recommending that we purchase this equipment. We have budgeted $15,000 in the Utility
Billing budget for the replacement of this equipment. The additional $800 will be transferred from
Vehicles Iinecode.
MARCH 13, 1998
REVISED PROPOSAL
CITY OF WINTER SPRINGS
NEOPOST ST70FOLDERroNSERTER
INSERTER
FOLDER
TWO STATION TRANSPORT
TWO FEED 5T A TIONS
NEOPOST MODEL 4850 BURSTER
TOTAL PURCHASE PRICE
o Includes delivery & installation
o 90 day warranty
o Operator training included
$ 15,800.00