Proceedings_Authorization of $170,000 General Fund Lease Agreement for Postal Machine_Hearing Copyrighted
September 16, 2019
City of Dubuque Public Hearings # 1.
ITEM TITLE: Proceedings for the Public Hearing on the Authorization of
Not-to-Exceed $170,000 General Fund LeaseAgreement
— Postage Machine
SUMMARY: Proof of publication on notice of public hearing to approve
the suggested proceedings for the public hearing on the
authorization of a general fund lease agreement not-to-
exceed $170,000 to acquire a postal machine for the City
of Dubuque, and the City Manager recommending
approval.
RESOLUTION Instituting proceedings to take additional
action for the authorization of a lease agreement (General
Fund) in the principal amount of not-to-exceed $170,000 to
acquire personal propertyforthe City
SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Adopt
Resolution(s)
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Lease Resolution Resolutions
Dubuque
THE CITY OF �
All-America City
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings for the Public Hearing on the Authorization of Not to Exceed
$170,000 General Fund Lease Agreement— Postage Machine
DATE: September 6, 2019
Director of Finance and Budget Jennifer Larson is recommending City Council approval
of the suggested proceedings for the public hearing on the authorization of a general
fund lease agreement not to exceed $170,000.
The current 60-month operating lease for the postage machine with Pitney Bowes
expires on November 1, 2019. The recommendation is to approve a 60-month operating
lease with Postal Source. The items leased would include a Neopost IS-5000 mail
machine, OMS 500 document processing software, Neoship Software and a DS-95i
folder/inserter system. Over the span of the 60-month agreement the City will save
approximately $12,638 with Neopost.
lowa Code Sections 364.4 and 384.25 require a public hearing to be held before
entering into a lease contract for personal property. This 60-month lease would count
against the City's statutory debt limit.
I concur with the recommendation and respectFully request Mayor and City Council
approval.
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Michael C. Van Milligen
MCVM/jml
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Teri Goodmann, Assistant City Manager
Jennifer Larson, Director of Finance and Budget
Jennifer Raber, Finance Manager
Chris Kohlmann, Information Services Manager
Tony Breitbach, Purchasing and Contracts Coordinator
Dubuque
THE CITY OF �
All-America City
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Maste iece on the MissTssT i zao�•zoiz•zois
YP PP zoi�.zoi9
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Director of Finance and Budget
SUBJECT: Proceedings for the Public Hearing on the Authorization of Not to Exceed
$170,000 General Fund Lease Agreement — Postage Machine
DATE: September 6, 2019
INTRODUCTION
The purpose of this memorandum is to provide suggested proceedings for the public
hearing on the authorization of a general fund lease agreement not to exceed $170,000
for a postage machine.
DISCUSSION
The current 60-month operating lease for the postage machine with Pitney Bowes
expires on November 1, 2019. Joe Pregler, Senior Network/Systems Administrator, Jim
Vosberg, User Tech. Specialist, Alicia Turnis, Information Technology Specialist, Ella
Lahey, Confidential Account Clerk, Connie Mueller, Confidential Account Clerk and
Tony Breitbach, Purchasing and Contracts Coordinator reviewed two proposals, viewed
demos and contacted references.
The recommendation is to approve a 60-month operating lease with Postal Source.
The items leased would include a Neopost IS-5000 mail machine, OMS 500 document
processing software, Neoship Software and a DS-95i folder/inserter system. All cost
from both Neopost and Pitney Bowes include annual maintenance. A proposal was
also received from Pitney Bowes our current provider. The monthly cost submitted for
the proposals are as follows: Postal Source, not including a printer, was $1,639.84 per
month for the first 12 months and the following 48 months $3,053.84 per month for an
average of $2,771.04 per month. Pitney Bowes proposal with no printer was $2,981.68
per month. Over the span of the 60-month agreement the City will save approximately
$12,638.40 with Neopost.
Neopost prides itself on providing unparalleled customer service, support, and the
opportunity to save the City on postage. As indicated in their proposal, potential savings
of over $100,000 could be realized over the duration of the lease with the Neopost
program. They also provide training and information relating to mailing and postage in
which the City feels would help improve the City's mailing processes. This will take
collaboration among all City departments to maximize efficiencies in the mailing
process.
The new 60-month operating lease with Postal Source would begin November 1 , 2019.
lowa Code Sections 364.4 and 384.25 require a public hearing to be held before
entering into a lease contract for personal property.
This 60-month lease would count against the City's statutory debt limit.
The proceedings are prepared to show as a first step the receipt of any oral or written
objections from any resident or property owner to the proposed action of the Council to
authorize the general fund lease agreement. A summary of objections received or
made, if any, should be attached to the proceedings. After all objections have been
received and considered, if the Council decides not to abandon the proposal to
authorize the general fund lease agreement, a form of resolution follows that should be
introduced and adopted, entitled "Resolution Instituting Proceedings to Take Additional
Action for the Authorization of a Lease Agreement (General Fund) in the Principal
Amount Not to Exceed $170,000 to Acquire Personal Property for the City."
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolutions instituting the
proceedings to take additional action.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Teri Goodmann, Assistant City Manager
Jennifer Raber, Finance Manager
Tony Breitbach, Purchasing and Contracts Coordinator
Chris Kohlmann, Information Services Manager
2
ITEMS TO INCLUDE ON AGENDA FOR SEPTEMBER 16, 2019
CITY OF DUBUQUE, IOWA
Not to Exceed $170,000 Lease Agreement (General Fund — Postage machine).
• Public Hearing
Resolution Instituting Proceedings to Take Additional Action
NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE
CHAPTER 21 AND THE LOCAL RULES OF THE CITY.
September 16, 2019
The City Council of the City of Dubuque, Iowa, met in regular session, in the Historic
Federal Building, 350 West 6th Street, Dubuque, Iowa, at 6:00 P.M., on the above date. There
were present Mayor Roy D. Buol, in the chair, and the following named Council Members:
Luis Del Toro, Ric Jones, David Resnick, Jake Rios, Brett Shaw
Absent:
Vacant: Ward 3 Council Seat
1
The Mayor announced that this was the time and place for the public hearing and meeting
on the matter of the authorization of a Lease Agreement in the principal amount of not to exceed
$170,000 to provide funds to pay costs of the acquisition of personal property for the City, and
more specifically, for the lease of a postage machine, and that notice of the proposed action by
the Council to institute proceedings for the authorization of the Lease Agreement, had been
published pursuant to the provisions of Sections 364.4 and 384.25 of the Code of Iowa, as
amended.
The Mayor then asked the Clerk whether any written objections had been filed by any
City resident or property owner to the proposal. The Clerk advised the Mayor and the City
Council that -0- written objections had been filed. The Mayor then called for oral objections to
the proposal and -0- were made. Whereupon, the Mayor declared the time for receiving oral and
written objections to be closed.
(Attach here a summary of objections received or made, if any)
2
The City Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member introduced and delivered to the
Clerk the Resolution hereinafter set out entitled "RESOLUTION INSTITUTING
PROCEEDINGS TO TAKE ADDITIONAL ACTION FOR THE AUTHORIZATION OF A
LEASE AGREEMENT (GENERAL FUND) IN THE PRINCIPAL AMOUNT OF NOT TO
EXCEED $170,000 TO ACQUIRE PERSONAL PROPERTY FOR THE CITY" and moved:
❑ that the Resolution be adopted.
❑ to ADJOURN and defer action on the Resolution and the proposal to institute
proceedings for the issuance of Notes to the meeting to be held at
o'clock .M. on the day of , 2019, at this place.
Council Member seconded the motion. The roll was called and
the vote was,
AYES:
NAYS:
Whereupon, the Mayor declared the measure duly adopted.
RESOLUITON NO. 340-19
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL
ACTION FOR THE AUTHORIZATION OF A LEASE AGREEMENT
(GENERAL FUND) IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED
$170,000 TO ACQUIRE PERSONAL PROPERTY FOR THE CITY
WHEREAS, pursuant to notice published as required by law, this Council has held a
public meeting and hearing upon the proposal to institute proceedings for the authorization of a
Lease Agreement in the principal amount of not to exceed $170,000, for the purpose of paying
costs of the acquisition of personal property for the City, and more specifically, for the lease of a
postage machine, to be secured by the general fund, and has considered the extent of objections
received from residents or property owners as to said proposal and, accordingly the following
action is now considered to be in the best interests of the City and residents thereof:
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That this Council does hereby institute proceedings and take additional action
for the authorization of a Lease Agreement in the principal amount of not to exceed $170,000 to
evidence the obligation thereof for the foregoing purpose.
3
Section 2. The Mayor and Clerk are authorized and directed to proceed on behalf of the
City with the negotiation and finalization of the terms of a Lease Agreement, evidencing the
City's obligations to a principal amount of not to exceed $170,000 and otherwise to take all
action necessary to peimit the execution of a Lease Agreement on a basis favorable to the City.
PASSED AND APPROVED this 16th day of September 2019.
ATTEST:
4
Mayor
G'/_r
CERTIFICATE
STATE OF IOWA
) SS
COUNTY OF DUBUQUE
I, the undersigned City Clerk of the City of Dubuque, Iowa, do hereby certify that
attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this 16th day of
September, 2019.
City vier , City of Du uqu,State of Iowa