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TO: Mayor Thomas J. Weisner
FROM: Charles Koch, Assistant Director of Finance
DATE: March 10, 2016
SUBJECT:
Requesting Approval to accept the five (5) Year Lease Proposal from Pitney Bowes for Relay 4000 Inserting System for the Mailroom.
PURPOSE:
To obtain the approval to lease the folding machine under the NJPA State and Local Term Rental, Contract #0403012-PIT.
BACKGROUND:
The lease for the current folding machine expires March 30, 2016. These machines have a life expectance of about five years. At that point, they begin to break down regularly and the repairs become costly. The current machine will be four years old when the lease expires and we want to replace this machine at that time.
The Relay 4000 Inserting System is on the National Joint Powers Alliance (NJPA), Contract #0403012-PIT. Thus the City can forgo the local bidding process. NJPA provides national cooperative contract purchasing solutions for member agencies, which include all government, education and non-profit agencies nationwide.
DISCUSSION:
By leasing a new machine, all of the maintenance issues stay with Pitney Bowes. Because of all the rollers and sensors required to operate this machine, maintenance problems increase the older it gets. The current machine was on a four year lease which started March 30, 2012 and expires on March 30, 2016. The new lease will be for five (5) years for $479.22 per month. Interest of 2.1% is included in the lease payment. Money for this lease is budgeted in 101-2543-415.39-12. We received quotes from Postal Source and Pitney Bowes, which was the lowest quote. Pitney Bowes used the NJPA State and Local Term Rental, Contract #040301012-PIT for their quote.
IMPACT STATEMENT:
By leasing a new machine, we will avoid the costly repairs that occur in an older machine.
RECOMMENDATIONS:
That approval be granted to accept the lease proposal offered by Pitney Bowes.
cc: Alderman O'Connor, Chairman
Alderman Mer...
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