Signed Contracts_Printing & Mailing Equipment LeaseTHE CITY OF Dubuque
~T T~ ~ AlWlmedcaCity
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Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Printing and Mailing Equipment Lease
DATE: July 1, 2009
This is to inform you that I have signed an operating lease with Pitney Bowes to provide
equipment used in the printing, inserting and mailing of utility bills, payroll checks,
accounts payable checks and postage.
Mi ael C. Van Milligen
MCVM:Iw
Attachment
cc: Barry Lundahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Ken Tekippe, Finance Director
THE CITY (OF Dubuque
DUB E ~~~~~~~
Masterpiece on the Mississippi
2007
TO: Michael C. Van Milligen, City Manager /~ /,,~
FROM: Ken TeKippe, Finance Director ~ ~~^~- v ~ ~~FT'
SUBJECT: Printing and Mailing Equipment Lease
DATE: June 26, 2009
INTRODUCTION
The purpose of this memorandum is to recommend the City sign an operating lease
with Pitney Bowes to provide equipment used in the printing, inserting and mailing of
utility bills, payroll checks, accounts payable checks and postage.
DISCUSSION
The current 51 month operating lease with Pitney Bowes expires on September 30,
2009. Joe Pregler, Lead Application/Network Analyst, Rick Till, Financial Analyst, Jim
Vosberg, User Tech. Specialist, Rose Hoerner, Utility Billing Coordinator and I have
reviewed three proposals and contacted references.
The recommendation is to approve a 60 month operating lease with Pitney Bowes. The
items leased would include: DM1100 mail machine, HP 9050 high speed printer, PB
FIRST Forms Software, SmartMailer Software and a D1950 folder/inserter system. The
cost would also include the annual maintenance. Proposals were also received from
Advanced Business Systems who quoted Hasler equipment and Bi-State Business
Solutions who quoted Neopost equipment. We believe it is beneficial to utilize one
vendor for all issues relative to mailings. Advanced Business Systems and Bi-State
Business Solutions do not provide a single vendor for the entire process. The lowest
dollar proposal was received from Pitney Bowes and also included higher capacity
equipment than the other proposals. The three monthly lease proposals are as follows:
Pitney Bowes $2,427.34, Advanced Business Systems $2,444.25, Bi-State Business
Solutions $2,487.28. There is also a benefit to continue with the same firm since we
have experience with their service technician.
ACTION REQUESTED
I am requesting approval to proceed with accepting the 60 month operating lease with
Pitney Bowes. The new 5-year lease would begin October 1, 2009.
Thank you for your review and consideration.
KT/jg
Enclosure
cc: Joe Pregler, Lead Application/Network Analyst
Rick Till, Financial Analyst
Jim Vosberg, User Tech. Specialist
Rose Hoerner, Utility Billing Coordinator
Pitney Bowes
~"ng-ineer-rng the f[o~v of eommunicationr~
Product Information and Pricing
For
CITY OF DUBUQUE
Apri12009
Nate Harbin
Pitney Bowes
April 23rd, 2009
CITY OF DUBUQUE
CURRENT SITUATION
• City of Dubuque currently use the following equipment
o DM1000 w/151b Scale
o WOW, w/Shaped Based Rating Kit
o Power Stacker
o PB First Software
o Smartmailer
o Verimove
o DI600 Folder Inserter (Duty rating 62,000 per month)
o HP Printer
• City of Dubuque current lease term is 48 months and expires on 9/30/2009. The
current lease payment is $2,384 per month. This price reflects state of Iowa
government pricing.
• Annual postage spend is around $149,972
• The postage discount that PBFirst/Smartmailer achieves is $2,396 monthly.
• The following list includes the different mailings that run through the mail
machine. Some of these jobs currently use our software to process and presort
mailings.
o W2's
0 1099's
o Payroll
o Accounts Payable
o Utility Bills
o Parking Tickets
o Parking Ramp Bills
o Business Licenses
o City Clerk
o Misc Invoices for Finance
• Jobs listed above have already been created by Pitney Bowes programmers and
paid for by City of Dubuque. All programming of jobs would transfer over with
renewal of contract.
Current Process:
1. Process Mailing through PB First/SmartMailer Software
2. Print Mailing to HP printer
3. Printer stops at tray breaks
4. 1St tray break stack is loaded on inserter
5. Load inserter with envelopes and additional inserts
6. Process mail through Inserter
7. Mail stacked by belt stacker is placed in appropriate trays
8. Step repeated for each tray
9. Tray's are readied for mail machine
10. Different employee runs mail through mail machine and restacks trays
Proposed Process (DI900 w/IDP}:
1. Process Mailing through PB First/SmartMailer Software
2. Load inserter with envelopes and additional inserts
3. Print Mailing to IDP printer, through inserter, and through mail machine
4. Printer/Inserter/Mail Machine stops at tray break
5. Metered Mail is put into appropriate tray
Opportunities:
1. Bottom Address Inverter to perform Z fold and invert address.
2. Take 10 step process down to 5 steps
3. Inserter speed will go from 4,000 to 4,4000 or 5,400 pieces per hour
4. Inserter monthly volume capacity from 62,500-120,000
5. Mail Machine speed 260 to 295 letters per minute (15% faster)
PROPOSED OPTIONS
OPTION 1
• DM1100
• Integrated Printer (IDP)
• DI900 inserter w/table
• PB First (9 documents)
• Inserter to mail machine interface
Inserter & mail machine connected 48-months
State of Iowa special Government Pricing- $2,700.99/month
Inserter with belt stacker 48-months
State of Iowa special Government Pricing- $2,757.19/month
CONFIGURATION BENEFITS
60-months
$2,389.75/month
60-months
$2,437.83/month
Process with inserter and mail machine connected (DI900 w/IDP):
1. Process Mailing through PB First/SmartMailer Software
2. Load inserter with envelopes and additional inserts
3. Print Mailing to IDP printer, through inserter, and through mail machine
4. Printer/Inserter/Mail Machine stops at tray break
5. Metered Mail is put into appropriate tray
Inserter Benefits
1. Printer interfaced directly into inserter.
2. Inserter to perform Z fold enabling documents with bottom page addresses to
appear in a standard window envelope.
3. Inserter to operate at 4,400 pieces per hour
4. Inserter monthly capacity of 120,000 a month
5. Ability to insert into flats
6. Paper path runs left to right based on facing control panel, which will allow
inserter w/mail machine combination to fit in snail room.
7. Interchangeable sheet and inserter feeders
8. Process Verification that all document pages are printed, inserted and sealed.
Mail Machine Benefits
1. Mail Machine interface with inserter.
2. 295 Letters Per Minute
3. Ability to automatically process 12"x15" flats
4. 3/4" Processing
Software Benefits
1. Ability to process monthly mailings including presort and barcoding
2. Currently familiar with set-up and programming of 9 presort jobs.
OPTION 2
• DM1100
• HP printer
• DI950 inserter w/table
• PB First(9 documents)
• Inserter to mail machine interface
Inserter and mail machine connected 48-months 60-months
State of IA special Government Pricing- $2,610.71/month $2,369.96/month
Inserter with belt stacker 48-months 60-months
State of IA special Government Pricing- $2,675.83/month $2,427.34/month
CONFIGURATION BENEFITS
Process with inserter and mail machine connected
1. Process Mailing through PB First/SmartMailer Software
2. Print Mailing to HP printer
3. Printer stops at tray breaks
4. 1St tray break stack is loaded on inserter
5. Load inserter with envelopes and additional inserts
6. Run envelopes through inserter and through mail machine
7. Metered Mail is put into appropriate tray
Inserter Benefits
1. Inserter to perform Z fold enabling documts with bottom page addresses to appear
in a standard window envelope.
2. Inserter does not require reverse flap envelopes for bottom address mailpieces
3. Inserter to operate at 5,400 pieces per hour
4. Inserter monthly capacity of 120,000 a month
5. Ability to insert into flats
6. Paper path runs left to right based on facing control panel, which will allow
inserter w/mail machine combination to fit in mail room.
7. Interchangeable sheet feeders and inserter feeders
Mail Machine Benefits
1. Mail Machine interface with inserter.
2. 295 Letters Per Minute
3. Ability to automatically process 12"x15" flats
4. 3/a" Processing
Software Benefits
1. Ability to process monthly mailings including presort and barcoding
2. Currently familiar with set-up and programming of 9 presort jobs.
ADDITIONAL BENEFITS
Advantages to staying with Pitney Bowes
• City of Dubuque has already paid for programming of presort jobs totaling $7,541 (in
addition to lease payment).
o Moving forward with Pitney Bowes solution, this investment would transfer to
new solution.
o Going with different vendor would require the city to pay for re-programming of
all your jobs from scratch.
o Based on the number of jobs required, this could result in weeks of programming
before getting set-up.
o In addition to costs associated with all new programming from scratch, you
would also have to factor in your own IT department's time involved which
again could be weeks.
• Learning curve with the software and implementation of new system would not be as
intense with Pitney Bowes. This will save on set-up, training, troubleshooting, and
programming testing time. This will help avoid extra time and money in labor.
• Inserter display/interface would be similar to existing inserter helping with learning
curve.
• Our solution is a proven one and you don't have to worry or risk it not working.
• If upgraded and installed with Pitney Bowes prior to June 30°i, City of Dubuque will not
have to pay remaining lease payments. This will result in a savings of $7,152.
• With the reserve account, you are receiving 1 % interest on your daily balance,
which is a Pitney Bowes exclusive.
• We also can supply you with ink, toner and envelopes.
• 100% satisfaction guaranteed!
• Evaluation of other departments mailings for other possible mailing solutions.
• Investigate all permit mail usage within city departments for possible savings.
SUPPLIES COSTS:
HP9050 -Standalone (yield of 30,000)
HP Brand $283.49
PB Brand $205.63
HP4350 -Monochrome Laser Printer that is connected to folder/inserter (yield of 20,000)
HP Brand $235.19
PB Brand $130.94
DM 1100 Mail machine ink cartridge $159.99 for 42,100