Authorization of Not to Exceed $180,000 General Fund Lease Agreement-Postage Machine_Initiate Copyrig hted
April 5, 2021
City of Dubuque Items to be set for Public Hearing # 2.
City Council Meeting
ITEM TITLE: Proceedings to Set a Public Hearing on the Authorization of Not to
Exceed $180,000 General Fund Lease Agreement— Postage Machine
SUMMARY: City Manager recommending a public hearing be setforApril 19, 2021,
on the proposal to authorize a general fund lease agreement not to
exceed $180,000.
RESOLUTION Fixing date for a meeting on the proposition to authorize
a lease agreement (general fund) in the principal amount of not to exceed
$180,000 to acquire personal property for the City, and providing for
publication of notice thereof
SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing forApril 19,
DISPOSITION: 2021Suggested Disposition:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Notice of Public Hearing Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings to Set a Public Hearing on the Authorization of Not to Exceed
$180,000 General Fund Lease Agreement— Postage Machine
DATE: March 24, 2021
Director of Finance and Budget Jennifer Larson recommends that a public hearing be
set for April 19, 2021, on the proposal to authorize a general fund lease agreement not
to exceed $180,000.
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
Jennifer Larson, Director of Finance and Budget
Chris Kohlmann, Information Services Manager
Tony Breitbach, Purchasing and Contracts Coordinator
Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Director of Finance and Budget
SUBJECT: Proceedings to Set a Public Hearing on the Authorization of Not to Exceed
$180,000 General Fund Lease Agreement— Mailing and Inserting
Machine
DATE: March 24, 2021
INTRODUCTION
The purpose of this memorandum is to recommend the setting of a public hearing on
the proposal to authorize a general fund lease agreement not to exceed $180,000 for a
mailing and inserting machine.
BACKGROUND
A public hearing was held in September 2019 to authorize a general fund lease
agreement with Postal Source for a mail machine, document processing software, and a
folder/inserter system. The equipment is used in the printing, inserting, and mailing of
utility bills, payroll checks, accounts payable checks and postage. The lease agreement
with Postal Source began November 1, 2019.
DISCUSSION
The City of Dubuque has been working with Postal Source for over twelve months after
awarding the RFP to them for the inserting and mailing machine. Since installation,
perFormance of the equipment has been well below expectations and standards which
has resulted in financial and tremendous staff time burden.
Staff recommendation is to terminate the current Postal Source lease and approve a 48-
month operating lease with Pitney Bowes after holding the required public hearing on
April 19, 2021. The only other bidder for the printing and mailing equipment in the fall of
2019 was Pitney Bowes. The City utilized Pitney Bowes for printing and mailing
equipment prior to the lease with Postal Source. The transition to Pitney Bowes is the
most logical resolution to continue printing operations. Pitney Bowes carries the state
contract; however, this agreement is not based off the state contract due to significant
cost avoidance. The proposed items to be leased from Pitney Bowes include a mail
machine, document processing software and a folder/inserter system. The monthly cost
submitted by Pitney Bowes for the term of the lease is $3,350.23 and is billed in
quarterly installments of $10,050.69. The proposed Pitney Bowes pricing is $535.74
higher per month than the current pricing with Postal Source. This pricing difference
does not include the additional charges the City has incurred or will incur due to failure
of consumable parts with the Postal Source agreement. Although there is a pricing
difference, the staff recommendation is to terminate the lease agreement with Postal
Source and sign a lease agreement with Pitney Bowes due to the constant equipment
failures experienced with Postal Source and the additional cost of consumable repairs.
The new 48-month operating lease with Pitney Bowes would begin April 20, 2021.
lowa Code Sections 364.4 and 384.25 require a public hearing to be held before
entering a lease contract for personal property.
This 48-month lease would count against the City's statutory debt limit.
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolutions fixing the date of
April 19, 2021 for a public hearing on the proposition of authorizing not to exceed
$180,000 General Fund Lease Agreement for the postage machine and providing
publication of notice.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Tony Breitbach, Purchasing and Contracts Coordinator
Chris Kohlmann, Information Services Manager
2
ITEMS TO INCLUDE ON AGENDA FOR APRIL 5, 2021
CITY OF DUBUQUE, IOWA
Not to Exceed $180,000 Lease Agreement (General Fund—mailing and inserting machine).
• Resolution fixing date of ineeting on the authorization of a Lease Agreement.
NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE
CHAPTER 21 AND THE LOCAL RULES OF THE CITY.
1
April 5, 2021
The City Council of the City of Dubuque, Iowa, met in Regular session, via electronic
means, Council having determined that it is impossible and impractical for all members of the
Council, other City personnel, and members of the public to be physically present at this meeting
due to the COVID-19 pandemic, at 6:30 P.M., on the above date. There were present Mayor
Roy D. Buol, in the chair, and the following named Council Members:
Brad Cavanagh, Susan Farber, Rick Jones, David Resnick,
Laura Roussell, Danny Sprank
Absent: ___________________________________________
Vacant: ___________________________________________
* * * * * * *
2
Council Member Resnick introduced the following Resolution entitled "RESOLUTION
FIXING DATE FOR A MEETING ON THE PROPOSITION TO AUTHORIZE A LEASE
AGREEMENT (GENERAL FUND) IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED
$180,000 TO ACQUIRE PERSONAL PROPERTY FOR THE CITY, AND PROVIDING FOR
PUBLICATION OF NOTICE THEREOF", and moved that the same be adopted. Council
Member Roussell seconded the motion to adopt. The roll was called and the vote was,
AYES: Sprank, Jones, Roussell, Resnick, Farber,
Buol, Cavanagh
NAYS: ___________________________________________
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION FIXING DATE FOR A MEETING ON THE PROPOSITION TO
AUTHORIZE A LEASE AGREEMENT (GENERAL FUND) IN THE
PRINCIPAL AMOUNT OF NOT TO EXCEED $180,000 TO ACQUIRE
PERSONAL PROPERTY FOR THE CITY, AND PROVIDING FOR
PUBLICATION OF NOTICE THEREOF
WHEREAS, it is deemed necessary and advisable that the City of Dubuque, Iowa, should
enter into a lease agreement in the principal amount of not to exceed $180,000 as authorized by
Sections 364.4 and 384.25 of the Code of Iowa, for the purpose of providing funds to pay costs
of carrying out the project as hereinafter described, and more specifically, for the lease of a
mailing and inserting machine; and
WHEREAS, the term of the proposed Lease does not exceed the economic life of the
property to be acquired; and
WHEREAS, the lease agreement shall be payable from the General Fund of the City; and
WHEREAS, before a lease agreement may be authorized, it is necessary to comply with
the provisions of said Code, and to publish a notice of the proposal and of the time and place of
the meeting at which the Council proposes to take action for the authorization of the lease
agreement and to receive oral and/or written objections from any resident or property owner of
said City to such action.
3
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That this Council meet via electronic means at 6:30 o'clock P.M., on the 19th
day of April 2021, for the purpose of taking action on the matter of the authorization of a lease
agreement, in the principal amount of not to exceed $180,000 the proceeds of which will be used
to provide funds to pay costs of the acquisition of personal property for the City.
Section 2. That the Clerk is hereby directed to cause at least one publication to be made
of a notice of said meeting, in a legal newspaper, printed wholly in the English language,
published at least once weekly, and having general circulation in said City, said publication to be
not less than four clear days nor more than twenty days before the date of said public meeting on
the authorization of said lease agreement.
Section 3. The notice of the proposed action to authorize said lease agreement shall be in
substantially the following form:
4
(To be published between March 30, 2021 and April 14, 2021)
NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE,
IOWA, ON THE MATTER OF THE PROPOSED AUTHORIZATION OF A
LEASE AGREEMENT (GENERAL FUND) IN THE PRINCIPAL AMOUNT
OF NOT TO EXCEED $180,000, TO ACQUIRE PERSONAL PROPERTY FOR
THE CITY, AND THE PUBLIC HEARING ON THE AUTHORIZATION
THEREOF
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa,
will hold a public hearing on the 19th day of April 2021, at 6:30 o'clock P.M., at which meeting
the Council proposes to take additional action for the authorization of a lease agreement in the
principal amount of not to exceed $180,000 the proceeds of which will be used in order to
provide funds to pay costs of the acquisition of personal property for the City, and more
specifically, for the lease of a mailing and inserting machine. Aggregate annual payments due
from the general fund of the City on the proposed Lease Agreement and all other lease
agreements in force on the date of authorization will not exceed ten (10) percent of the last
certified general fund budget amount.
Due to public health concerns related to COVID-19, this meeting of the City Council will
be conducted electronically, pursuant to Iowa Code Section 21.8, as holding the meeting in
person is impossible or impractical. Interested persons may attend or participate in the meeting
by the following method:
https://global.gotomeeting.com/join/337661181
You can also dial in using your phone.
United States (Toll Free): 1 877 568 4106
United States: +1 (571) 317-3129
Access Code: 337-661-181
Please check the posted agenda in advance of the meeting for any updates to the manner
in which the public may access the meeting.
At the above meeting the Council shall receive oral or written objections from any
resident or property owner of said City, to the above action. After all objections have been
received and considered, the Council will at this meeting or at any adjournment thereof, take
additional action for the authorization of said lease agreement or will abandon the proposal.
This notice is given by order of the City Council of Dubuque, Iowa, as provided by
Sections 364.4 and 384.25 of the Code of Iowa, as amended.
Dated this 9th day of April 2021.
Adrienne N. Breitfelder
City Clerk of Dubuque, Iowa
(End of Notice)
PASSED AND APPROVED this 5th day of April 2021.
Mayor
ATTEST:
City Clerk
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
I, the undersigned City Clerk of the City of Dubuque, State of 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 day of
r'i I _ , 2021.
City Clerk, City of Dubuque, Iowa
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
I, the undersigned, do hereby certify that I am now and was at the times hereinafter
mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of
Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of the
City, I have caused a
NOTICE OF MEETING
(Lease Agreement — mailing and inserting machine)
of which the clipping annexed to the publisher's affidavit hereto attached is in words and figures
a correct and complete copy, to be published as required by law in the "Telegraph Herald", a
legal newspaper published at least once weekly, printed wholly in the English language,
published regularly and mailed through the post office of current entry for more than two years
and which has had for more than two years a bona fide paid circulation recognized by the postal
laws of the United States, and has a general circulation in the City, and that the Notice was
published in all of the issues thereof published and circulated on the following date:
e, 1 , 2021.
d
WITNESS my official signature at Dubuque, Iowa, this �3 ►^ day of
,2021.
City Clerk, City of Dubuque, Iowa
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01851908,;,1\11ug22 000`
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
04/09/2021
and for which the charge is 37.36
7s"iserw.�,
f- -- - - --
Subscribed to efore me, a Notary Pub is in and for
Dubuque County, Iowa,
this 9th day of April, 2021
Notary Public in and for Dubuque County, Iowa.
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Ad text : NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE, IOWA,
ON THE MATTER OF THE PROPOSED AUTHORIZATION OF A LEASE
AGREEMENT (GENERAL FUND) IN THE PRINCIPAL AMOUNT OF NOT TO
EXCEED $180,000, TO ACQUIRE PERSONAL PROPERTY FOR THE CITY,
AND THE PUBLIC HEARING ON THE AUTHORIZATION THEREOF
PUBLIC NOTICE is hereby given that the City Council of the
City of Dubuque, Iowa, will hold a public hearing on the 19th
day of April 2021, at 6:30 o'clock P.M., at which meeting the
Council proposes to take additional action for the
authorization of a lease agreement in the principal amount of
not to exceed $180,000 the proceeds of which will be used in
order to provide funds to pay costs of the acquisition of
personal property for the City, and more specifically, for the
lease of a mailing and inserting machine. Aggregate annual
payments due from the general fund of the City on the proposed
Lease Agreement and all other lease agreements in force on the
date of authorization will not exceed ten (10) percent of the
last certified general fund budget amount.
Due to public health concerns related to COVID-19, this
meeting of the City Council will be conducted electronically,
pursuant to Iowa Code Section 21.8, as holding the meeting in
person is impossible or impractical. Interested persons may
attend or participate in the meeting by the following method:
https://global . gotomeeting. com/j oin/337661181
You can also dial in using your phone.
United States (Toll Free): 1 877 568 4106
United States: + 1 (571) 317-3129
Access Code: 337-661-181
Please check the posted agenda in advance of the meeting for
any updates to the manner in which the public may access the
meeting.
At the above meeting the Council shall receive oral or
written objections from any resident or property owner of said
City, to the above action. After all objections have been
received and considered, the Council will at this meeting or
at any adjournment thereof, take additional action for the
authorization of said lease agreement or will abandon the
proposal.
This notice is given by order of the City Council ofIVI
Dubuque, Iowa, as provided by Sections 364.4 and 384.25 of the
Code of Iowa, as amended.
Dated this 9th day of April 2021.
Adrienne N. Breitfelder, City Clerk of Dubuque, Iowa
It 4/9
(To be published between March 30, 2021 and April 14, 2021)
NOTICE OF MEETING OF THE COUNCIL OF THE CITY OF DUBUQUE,
IOWA, ON THE MATTER OF THE PROPOSED AUTHORIZATION OF A
LEASE AGREEMENT (GENERAL FUND) IN THE PRINCIPAL AMOUNT
OF NOT TO EXCEED $180,000, TO ACQUIRE PERSONAL PROPERTY FOR
THE CITY, AND THE PUBLIC HEARING ON THE AUTHORIZATION
THEREOF
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, Iowa,
will hold a public hearing on the 19th day of Apri12021, at o'clock .M., at which
meeting the Council proposes to take additional action for the authorization of a lease agreement
in the principal amount of not to exceed$180,000 the proceeds of which will be used in order to
provide funds to pay costs of the acquisition of personal property for the City, and more
specifically, for the lease of a mailing and inserting machine. Aggregate annual payments due
from the general fund of the City on the proposed Lease Agreement and all other lease
agreements in force on the date of authorization will not eXceed ten (10)percent of the last
certified general fund budget amount.
Due to public health concerns related to COVID-19, this meeting of the City Council will
be conducted electronically,pursuant to Iowa Code Section 21.8, as holding the meeting in
person is impossible or impracticaL Interested persons may attend or participate in the meeting
by the following method:
[include access info]
Please check the posted agenda in advance of the meeting for any updates to the manner
in which the public may access the meeting.
At the above meeting the Council shall receive oral or written objections from any
resident or property owner of said City, to the above action. After all objections have been
received and considered, the Council will at this meeting or at any adjournment thereof, take
additional action for the authorization of said lease agreement or will abandon the proposal.
This notice is given by order of the City Council of Dubuque, Iowa, as provided by
Sections 364.4 and 384.25 of the Code of Iowa, as amended.
Dated this day of April 2021.
City Clerk of Dubuque, Iowa
(End of Notice)