The URL can be used to link to this page

Home My WebLink About2004 02 09 Regular 503.1 New Stuffer Agenda Item.doc C(]~MMISSION AGENDA ITE1Vl 503.1 Consent Information Public Hearin2 Re2ular X MGR.lZ~Et.~ February 9. 2004 Meeting REQUEST: Finance Department requesting approval to proceed with the purchase of a new envelope stuffing machine. PURPOSE: The Finance Department is recommending the purchase of a new envelope stuffing machine to improve efficiency, increase flexibility and reduce costs. CONSIDERATION: ./ The existing equipment is eight years old and the technology is becoming obsolete so that maintenance costs are increasing. ./ The existing machine does not offer the capability to stuff return envelopes separately. ./ Switching to a machine that offers the capability to stuff a separate return envelope would enable us to change to a standard size form and envelope, reducing form costs by up to $6,000 per year. ./ The commission has requested that supplemental information be included with the utility bill. Due to limitations of the existing equipment, we are not able to include any supplemental information with the bill, without manually stuffing it into the envelope. ./ With the new equipment it would be possible to include newsletter type information with the bill, potentially reducing postage costs by as much as $2,500 per year. FUNDING: The existing machine is paid for and has a maintenance agreement costing $135.41 per month. The machine recommended by the Finance Department would cost $11,286 to purchase or $276 per month for 60 months to lease, with an additional maintenance agreement of $97.50 per month. If we choose to lease the machine the Finance Department can cover the increased costs for the current year with savings in other areas of the budget. If we choose to purchase the machine, a supplemental appropriation is needed. RECOMMENDATIONS: The Finance Department recommends the approval of the purchase of a new envelope stuffing machine at a cost of $11 ,286 with a return on investment in less than two years. ATTACHMENTS: None COMMISSION ACTION: