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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