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Item #04 Approval of Purchase of Replacement Folding and Inserting Machine for Bulk Mailing at a Cost of $8,998� � ocoeP Florida AGENDA ITEM COVER SHEET Meeting Date: July 21, 2015 Item # 7 Reviewed By: Contact Name: Al Butler, Support Services Department Director: Contact Number: 407 - 905 -3100, ext. 1543 City Manager: Subject: Purchase of replacement folding and inserting machine for bulk mail' g at a cost of $8,998. Background Summary: The city's existing folding and inserting machine, which is used to reduce labor associated with bulk mailing, has broken and parts /service are no longer available for this unit. Staff sought a replacement and found a suitable unit. Bulk mailing is used by several departments in order to send utility bills, rezoning and public hearing notices, and business tax bills. A folding and inserting machine takes the original printed notices, folds, and then inserts them into envelopes. A review of available low- and medium -duty office products resulted in the recommendation to acquire the Pitney Bowes DI 380 OfficeRight Inserting System, which folds and inserts letters into envelopes. After exploring both purchase and lease options, the cost savings provided by purchasing the replacement machine led to a recommendation to buy rather than lease the new unit. (Total lease cost is $9,504 over 48 months.) Because the cost exceeds $5,000, this acquisition is a capital purchase requiring City Commission approval. Issue: Should the City Commission authorize staff to buy a replacement folding and inserting machine at a cost of $8,998? Recommendations Staff recommends the City Commission authorize the purchase of the Pitney Bowes D1380 3- station unit without Opitcal Mark Reader and with the standard output drop stacker as the most cost effective means of meeting the need for a folding and inserting machine for bulk mailing. The quoted cost is based on State of Florida contract pricing (Contract No. 600 - 760- 00 -1). Other comparable products investigated by staff include: • Formax FD 6204 Advanced 2 - $13,695 from Addrex • Formax FD 6302 Std 3 - $17,195 from abcoffice.com • FPI -2525 - $11,792 from FP Mailing Solutions Attachments: • Proposed sales agreement from Pitney Bowes • Product brochure Financial Impact: Existing budget is available to cover this purchase in Account No. 001 - 516 -00 -5235. These funds will need to be moved to the appropriate Capital account to accommodate the purchase, such as 001 -516- 00 -6411. Maintenance and service is included for the first year following purchase. After the first year, an annual service contract costing $912 will be used to cover maintenance and service needs. This cost will be covered by funds budgeted in Account No. 001 - 516 -00 -4606. Type of Item: (please mark with an 'Y) Public Hearing For Clerk's Dept Use: Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval Discussion & Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by Reviewed by 2 N/A N/A N/A N/A PitneyBOWes SALES AGREEMENT /EQUIPMENT & SOFTWARE MAINTENANCE AGREEMENT Your Business Information 6/23/2015 Client PC # Date Prepared Maintenance Agreement# CITY OF OCOEE Client Name Tax ID # (FEIN/TIN) 150 N LAKESHORE DR OCOEE FL 34761 -2258 Billing Address: Street City State Zip +4 16559992884 Contact Name Contact Phone # Billing ID # 150 N LAKESHORE DR OCOEE FL 34761 -2258 Installation Address (If different than billing address) : Street City State Zip +4 66452940209 Location ID At Your Business Needs Q ty Item Program ID Description Unit Price DiscounDiscount/ Trade -In allowance Net Price Annual Maintenance Cost Equipment' Software 2. 4. 6. Mail Stream Solution - 8 Special Instructions 1 D13H G /`FLESLI4 3 Station D1380 without OMR $8,834.00 $0.00 $8,834.00 $912.00 $0.00 1 F35B G /'FLESLI4 Operator Training for D1380/DI425, 1 hour $164.00 $0.00 $164.00 $0.00 $0.00 equested Installation Date 90 day standard Equipment warranty TOTAL "" $8,998.00 $912.00 $0.00 Plus applicable taxes which will be applied at time of billing Your Service Option(s) X Equipment Maintenance Software Maintenance Tier 1 - Provides repair and maintenance service for equipment ('Standard SLA') Item S/N Tax Exempt () State ( ) County ( ) City ( ) Tax Exempt Certificate Attached ( ) Tax Exempt Certificate Not Required Your Signature Below By signing below, you agree to be bound by all the terms of this Agreement, including those located in the Pitney Bowes Terms (Version 9114), which are available at www.pb.com/terms and are incorporated by reference. You agree to pay the amounts on this Order. Charges payable under this Agreement will be billed: (1) if you qualify for a Purchase Power' account, through that account, subjectto the terms of that account; and (2) if you do notqualify for a Purchase Power account, directly in accordance with the terms of this Agreement. You acknowledge that you have read all of theterms and that you are authorized to sign this Agreement. Client Signature Date Print Name Title Email Address Sales Information Marc Rotenberg 714119 109 Rep Name 1 Rep # District # Rep Name 2 Rep # District # Pick Up Instructions [ ] Demos [ ] Trade Ins Item S/N Item S/N Item S/N Item S/N 1. 3. 5. 7. 2. 4. 6. 8. Special Instructions y,_; t44812a) Page 1 Sales 298 SLA Equtprnenti'Meter Rental Agreement (version 1111d) "J2014 Pitney Bowes Inc. All rights reserved. Pitney Bowes Purchase Power is a trademark of Pitney Bowes Inc or a subsidiary . See Pitney Bowes Tenns for additional I-- and conditions 2 Q 4, DI 380/Dl 425 Inserting Systems When Your Mailstream Is Moving, Your Business Is Moving There's a lot riding on your mailstream. Like your cash flow. And revenue growth. The sooner bills go out, the faster you get paid. Well- targeted direct mail generates new customers. Done right, your bills and statements become monthly opportunities for cross -sell and upsell. Interruptions, however, can slow you down — and can slow down your business. That's why Pitney Bowes technology exists. Our systems keep your business running smoothly by helping keep your mail running smoothly. With the DI 380/DI 425 Inserter Series, you get a seam- less mailing process. Collating, folding and inserting are automated. Bills and statements go out promptly. Optical Mark Recognition (OMR) helps to ensure that customers receive the correct marketing and financial documents. When used with a DM SeriesT" digital mailing system, inserting and mailing are integrated. This pow- erful combination brings benefits that flow through to the rest of your business, giving you uninterrupted time to devel- op new business opportunities. Uninterrupted Flexibility The DI 380/DI 425 Inserter Series can handle the mail assembly of all kinds of organizations. Medical Services. Patient bills and statements, third party billing. Financial Services. Confirmation notices, monthly statements, notices of payment due, coverage statements, explanations of benefits, direct mail programs. Real Estate. "Latest listing" mailings, free valuation offers, brochures. Membership Organizations. News- letters, fundraising letters, donor thank -you letters. Professional Services. Invoices, state- ments, announcements, newsletters. The DI 380/425 Inserter Series has the flexibility to handle multipage statements and other variable - length mailings. You can insert reply envelopes to speed up customer response, add promotional inserts to invoices or send out a news- letter to thousands of customers. Optical Mark The inserter processes sp Recognition cific mailing instructions f (OMR) gives each document by reading you control of OMR marks. each mailing. The marks and scanning capa- 0 bility allow you to group sets of pages automatically and to make sure that the right customers — receive the right number of pages. Uninterrupted Productivity Get More Mail Out, Faster, with Less Effort. Think of the DI 380/1DI 425 Series as the power tools of mail preparation, Inserting Technology that Moves You Ahead Keep crucial communications flowing more quickly and smoothly than you ever imagined possible, with the DI 380/DI 425 Inserter Series. e- or processing up to 3,000/3,500 pieces of mail per hour. High- capacity feeders allow you to set things up ;i and go do something Each high- capacity feeder else while the handles 325 sheets per tray. machine is humming along. You can even reload on the fly, so when one sheet feeder empties, the system automatically switches to the other. And with the option to connect the inserter to your DM Series - mailing system, you avoid having to move pieces between two systems. Count on Reliable Operation. The simple - to- operate user interface lets you load and run up to 20 preprogrammed jobs for greater ease. Uninterrupted Accuracy There's only one thing more important than getting your bills and statements out on time: getting them out correctly. Whether you are concerned about consumer - privacy issues, identity -theft Laws or HIPAA regulations protecting health care data, you want to make cer- tain that the right personal information goes into the right envelope. Ensure the Integrity of Your Mailings and Avoid Costly Mistakes. Scan and control what is inserted into each envelope by combining PB First` ", our robust file importing, reformatting and sorting software, to ensure the correct application of OMR marks. Prevent feeding of multiple sheets with double - document detection. •••• Increased sheet feeder capacity plus easy- loading envelope feeder add up to greater productivity. Create a sample piece with every job to check proper setup. Optional integration with a DM Series'm mailing system allows for mail to be assembled and postage to be applied in one seamless process. If one machine shuts down, so does the other, so there are no pile -ups and far less possibility of processing errors. Uninterrupted Opportunity Increase Revenue with Improved Customer Communications. --"Customize your marketing materials with a level of segmentation that you can't achieve with manual and semi - manual mailing processes. Use these inserting systems with PB First" software to selectively include informational inserts and create variable -page mailings. On- screen instructions and icons guide job setup to help you produce error -free Maximize Return on Every Mailing. Add promotional inserts with statements, invoices, order acknowledgments and other transactional communications. Improve Cash Flow. Include business reply envelopes with statements and invoices to speed payment cycles. Get Time to Work on Your Business. Take advantage of uninterrupted time to focus on what's important to your business. Balanced feeder capacities (sheet, insert and envelope) and output options let you achieve maximum throughout. i Optional interface with a DM Series"' mailing system means your mailings are ready to go in a single operation. The optional OptiFlow" power stacker lets you Load and unload while the machine is running for maximum efficiency. ............•••• Adjustable drop stacker creates a neat stack of finished mail pieces. Imagine a World with Fewer Interruptions 14 lsilaa OfficeRight® Inserting System DI 380 Speed 3,000 pieces per hour Dimensions Length, without stacker 29.3" Length, with stacker 35.4" Depth 20.2" Height 20.67' Weight 120 lbs Configurations • One insert feeder • One sheet feeder and one insert feeder • Two sheet feeders and one insert feeder • Available with or without basic OMR FastPac® Inserting System DI 425 Speed 3,500 pieces per hour Dimensions Length, without stacker 38.58" Length, with stacker 44.68" Depth 20.2" Height 20.67' Weight 143 lbs Configurations • Two sheet feeders and one insert feeder • Available with or without basic OMR DI 380/ DI 425 Options • OptiFLOWTM Power Stacker • Mailing Machine Interface • Advanced OMR How Effective Is Your MaRstream? Manage Create Address Assemble Select Payment Choose Address i Mailpiece > the > the > Option/ > Carrier & Lists Contents Mailpiece Mailpiece Purchase Class, Postage Accounting Put the Power of Pitney Bowes Behind Your Mailings. Material Specifications DI 380/DI 425 Paper Weight Sheet Feeder 16 to 32 l Insert Feeder 19 to 48 l Envelope Feeder 17 to 26 l Paper Dimensions Sheet Feeder 5"x 5" to 9 "x1 Insert Feeder 3 1/5" x 5" to 6" x bs bs bs 6" 9" Envelope Dimension Envelope Feeder 3 112" x 8 2/3" to 6 3/8" x 9 1/2" Finish Move It Track the > Out the > Trace Mailpiece Door Confirm Pitney Bowes has the software, services and hardware for end -to -end mailstream solutions that integrate and optimize the flow of mail, documents and packages across a range of business operations. Pitney Bowes Engineering the flow of communication- World Headquarters Stamford CT 06926 -0700 For more information contact your local Pitney Bowes office or call toll -free: 1- 800 -MR BOWES (800 -672 -6937) www.pb.com The following marks are trademarks or registered trademarks of Pitney Bowes, Inc.: Pitney Bowes, Engineering the flow of communication, the Corporate Design, PB First and OptiFlow. All other trademarks shown are prop- erty of the respective owners. © 2006 Pitney Bowes Inc. All Rights Reserved. An Equal Opportunity Employer. Printed in U.S.A. AD11757 1107