1990-0872651L-5/3689
No.
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 shall become effective
immediately upon its passage and approval. /~
PASSED AND APPROVED this the /~day of __, 1990.
BOB 'CASTLEBERRY, MAYO~ ~
/
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
A~PROVED AS TO LEGAL FORM:
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
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
SUMI~ARY: (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-00F-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~ul~y submijtted:
City Manager
Prepared by:
Name: Tom D. Shaw, C.P.M.
Title: Purchasing Agent
031.DOC
CITY OF DENTON, TEXAS
215 E. McKINNEY ST. PURCHASE ORDER DENTON, TX 76201
I P.O. NUMBER I DATE/VENDOR NO. DOCUMENT TYPE
96781 I 6-13-90 C16
PIT49000
VENDOR: SHIP TO:
PITNEY BOWES CREDIT CORP. CENTRAL STORES
700 N. Freeway 901-B Texas St.
Ft. Worth, Texas 76102 Denton, Texas 76201
rEM 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.
TOTAL P.O. $9600.00
he CityofDenton, Texasistaxexempt-House BillNo. 20.
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: ~ Direct All Inquiries TO:
City of Denton, Accounts Payable John J. Marshall, C.P.M. Purchasing Agent
215 E. McKinney St., Denton, TX 76201 Tom D. Shaw, C.P.M. Asst. Purchasing Agent
Phone 817/566-8223 817/566-8311 D/FW Metro 267-0042
The City of Denton is an equal opportunity employer