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Home My WebLink About1990-0872651L-5/3689 AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR PURCHASES OF MATERIALS OR EQUIPMENT WHICH ARE AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PROVISIONS OF STATE LAW EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including: items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the following purchases of materials, equip- ment or supplies, as described in the "Purchase Orders" attached hereto, are hereby approved: PURCHASE ORDER NUMBER VENDOR AMOUNT 96781 Pitney Bowes $ 9,683.00 SECTION II. That the acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION III. That the City Manager is hereby authorized to execute any contracts relating to the items specified in Section I and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION IV. That this ordinance immediately upon its passage and approval. PASSED AND APPROVED this the day ATTEST: JENNIFER WALTERS, CITY SECRETARY A PROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY BY: shall become effective of , 1990. PAGE TWO DATE: JUNE 19, 1990 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: PURCHASE ORDER #96781 - PITNEY BOWES RECOMMENDATION: We recommend the Purchase Order #96781, in the amount of $9,600.00, be approved for payment and also, that the City of Denton enter into a 5-year lease purchase program for postage/mailing equipment. SUMMARY: Pitney Bowes is currently supplying us with a postage mailing system that is nearing 3-years old. The system is a 2-station, low volume inserting/mailing machine utilized to insert utility bills and return envelopes into a primary envelope for mailing to customers. The unit is designed to handle 250,000 items per year. Our current estimated volume is 882,000 items per year. The existing unit is already badly worn and very difficult to keep operating. Any additional mailers to be sent with the utility bill must be inserted by an outside contractor at a price of $18.00 per thousand. By not utilizing the insert mailer, we are missing a very important and inexpensive source of communication with the Citizens of Denton. The new proposed system has a 10 to 12 year life expectancy. It has a five station chassis capable of handling the primary envelope, the primary insert (utility bill) return envelope, and two secondary inserts such as, new phone # listings, utility conservation mailer, miscellaneous information brochures, etc. The proposed system operates at a rate of 6,000 cycles per hour, each cycle could handle up to four inserts and a wide range of envelope sizes. The system consists of the 5-station inserter, the mailer or postage head with sealer, and a stacker. The terms of the lease are as follows: 1) Down Payment of $9,600.00 = $ 9,600.00 2) 5-Annual Payments of $6,738.00 Per Year = $ 33,690.00 3) 1-First Year EMA* $1,958.00 = $ 1,958.00 4) 4-Annual EMA* of $2,611.00 Per Year = $ 10,444.00 5) Trade In = (983.00) TOTAL 5-YEAR EXPENDITURE _ $ 54,709.00 * Equipment Maintenance Agreement The price includes the equipment, delivery, installation, and full maintenance. The Contract does include a non -appropriation funding out clause, which would allow the City of Denton to cancel the remainder of the Contract should funds not be available. Purchase Order #96781 Page 2 of 2 June 19, 1990 SUMMARY: (Continued) This postage system is protected by certain patents and proprietary design features and is therefore exempt from the bid process as defined by State Law. No other manufacturer offers equipment of this style and type. Pricing is taken from GSA Contract No. GS-OOF-06567 for governmental agencies. BACKGROUND: Proposal from Pitney Bowes, drawing of the PCN 32BW System, replacement guarantee. PROGRAMS, DEPARTMENT OR GROUPS AFFECTED: Customer Service Utility Billing and Central Stores mail operation. FISCAL IMPACT: We are able to fund the lease and maintenance of this new postage/mailing equipment by utilizing the funds set aside for the old postage system, and also the funds set aside for the lease/purchase payments of the Xerox 9500 copier. The Xerox 9500 has been paid out as of June, 1990, and the monthly lease is no longer being paid. The combination of the two sources of funding allow us to acquire the badly needed, more efficient postage equipment while remaining under the budget target levels for Lease of Equipment. Account Number 710-043-0582-8509. Respe ully submitted: Lloy V. Harrell City Manager Prepared by: Name: Tom D. Shaw, C.P.M. Title: Purchasing Agent 031.DOC I CITY OF DENTON, TEXAS 215 E. McKINNEY ST. PURCHASE ORDER P. O. NUMBER 96781 VENDOR: PITNEY BOWES CREDIT CORP. 700 N. Freeway Ft. Worth, Texas 76102 DATEIVENDOR NO. 6-13-90 PIT49000 DENTON, TX 76201 DOCUMENT C16 SHIP TO: CENTRAL STORES 901—B Texas St. Denton, Texas 76201 TYPE I-EM ACCOUNT NUMBER UNITS NUMBER DESCRIPTION BID NO. LINE AMOUNT 01 710-043-0582-8509 ea 1 DOWN PAYMENT ON LEASE OF $9600.00 MODEL 3148 CHASSIS, 5655 MAILING MACHINE, 3200 POWER STOCKER. he City of Denton, Texas is tax exempt - House Bill No. 20. TOTAL P.O. eference P.O. Number on all B/L, Shipments and Invoices. hipments are F.O.B. City of Denton, or as indicated. Send Invoices TO: City of Denton, Accounts Payable 215 E. McKinney St., Denton, TX 76201 Phone 817/566-8223 $9600.00 Direct All Inquiries TO: John J. Marshall, C.P.M. Purchasing Agent Tom D. Shaw, C.P.M. Asst. 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