HomeMy WebLinkAbout4.02 Award of New Mail Processing SystemCITY CLERK
File #
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: MARCH 2, 1999
SUBJECT: Award of new Mail Processing System
QS4t(Report Prepared by: Paul S. Rankin, Assistant City Manager)
EXHIBITS ATTACHED: None
RECOMMENDATION: Award the bid for a new Mail Processing System to Neopost, and
(�)j Authorize Staff to issue a purchase Order based upon the proposal.
FINANCIAL STATEMENT: Funding will be from the Internal Service Fund (ISF) (Equipment
Replacement Reserves). The ISF Budget is presented for
informational purposes only. The 1998/99 informational Budget
estimated the replacement costs at $7,100.
DESCRIPTION: The current Pitney Bowes postage machine is no longer manufactured, which
impacts the ability to service the machine. The machine is approximately eight years old and break downs
have been more frequent in the past two years. In addition, it does not have reporting and weighing
capabilities. The Fiscal Year 1998/99 ISF informational budget included estimated funding to replace the
machine.
Staff has prepared and distributed bid specifications for the purchase of the Mail Processing System. Bid
proposals were structured to include the full cost of providing the equipment, including taxes, shipping
and training. Two bids were received and the basic mail system costs are shown below:
NEOPOST
PITNEY BOWES
Cost of System (Incl. Tax, Delivery, Installation, etc.)
$ 7,252.75
(200.00)
$ 7,052.75
$ 8,353.66
(425.00)
$ 7,928.66
LESS: TRADE — IN ALLOWANCE
NET EQUIPMENT BID
As shown above, the net system cost of the bid submitted by Neopost was lowest responsible bid. The
specifications required of both vendors included a complete Mail Processing System including a
minimum 25 lb. Scale, and a Mail Accounting System allowing the user to track postage to user defined
department codes. The machine proposed by Neopost meets or exceeds the specifications. Staff has also
reviewed references where Neopost has other public agency installations.
In addition to the up -front capital cost the City will also incur on -going maintenance and rental costs
associated with the postage machine. These costs are expensed as operating costs based upon postage
used by each Department. Both vendors offered one —time discounts on these on -going charges.
However, the rental and maintenance charges of the Neopost proposal were still lower.
Staff recommends that the City Council award the bid and authorize Staff to issue a Purchase Order, to
Neopost as the lowest responsible bidder.
COPIES TO:
ITEM NO. �� �]