Title
Consider a memorandum/resolution authorizing a lease agreement with Pitney Bowes for a SendPro, Letter Opener, and Inserting System through the Texas Buyboard Cooperative in the amount of $57,395.28.
Summary
DATE: November 8, 2022
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Interim Executive Director of Finance
SUBJECT: Pitney Bowes Equipment Lease
BACKGROUND AND FINDINGS:
The Finance Utility Collections Office prepares the utility billing for the City of Killeen. There are thirteen billing cycles per month producing approximately 50,000 bills per month. The existing lease equipment from Pitney Bowes is now obsolete and is starting to breakdown. The equipment is necessary for folding, sorting, inserting, postmarking and opening all the utility bills processed through the Utility Collections Office.
Utility Collections had an existing lease with Pitney Bowes which started June 1, 2018 and expired June 30, 2022. This lease consisted of a postage machine, inserter/sorter, and a letter opener.
Utility Collections sought Buy Board quotes for the new pending lease and recommends Pitney Bowes.
Leasing this equipment is more beneficial than outright purchasing the equipment. Staff will have access to modern, up-to-date equipment that is covered under warranty for the duration of the lease. If repairs are needed, parts will be delivered and a technician will repair the equipment on-site. In addition, the lease option allows the financial burden to be distributed over twenty-four (24) months.
THE ALTERNATIVES CONSIDERED:
Option 1 - Decline the lease and find an alternative option for preparing the utility bills for mailing.
Option 2 - Approve the lease and enter into the agreement with Pitney Bowes.
Which alternative is recommended? Why?
Options 2 - To approve the twenty-four (24) month lease with Pitney Bowes for a total cost of $57,395.28.
CONFORMITY TO CITY POLICY:
Pitney Bowes, the vendor, is a member of the Texas Buy Board Pu...
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