Title
Consider a memorandum/resolution approving a sixty (60) month lease with Pitney Bowes for the Utility Collections Division, in the amount of $111,012.
Body
DATE: October 22, 2024
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Pitney Bowes Lease for Utility Collections
BACKGROUND AND FINDINGS:
The Utility Collections Division under the Finance Department 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 leased machine from Pitney Bowes is being discontinued due to not being in compliance with a new technology standard called Intelligent Mail Indicia (IMI) that the United States Postal Service has adopted. The equipment is necessary for folding, sorting, inserting, postmarking and opening all the utility bills processed through the Utility Collections Office.
Utility Collections' current lease expires December 2024, however, will terminate the next billing cycle after the new lease is signed and the equipment is delivered and installed. The new lease will be sixty (60) months at $1,850.20 monthly rate and billed quarterly.
Leasing this equipment is more beneficial then outright purchasing the equipment due to the nature of use, updates in technology and service needed on the machine annually. 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 a sixty (60) month period.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
Pitney Bowes, the vendor, is a member of the Texas Buy Board Purchasing Cooperative (contract #656-21). Purchases made through a cooperative contract satisfy the state competitive...
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