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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 THE CTTY O� � D R All-America City U L/ L wva:Wtios�i::u� . � � �.� � � ML�ste i�ce on the Mississi i zoo��zolZ•zo13 �P pp �oi�*zo�s 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. �I:/v� �tv�r 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 THE CITY OF � Atl-America Ciiy Du B E �.��:�ti«�, �, � � ���► � � MaSte 1eCe OYl t�le MZSS1S51 I zflo�«zoiz-zai3 �P pp zoi�*zai9 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 rA k.'a_ a s r _ a 9 i 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. K :!M HARUM'�iEL. Rif01h � = MlNf2mfbSr 827�44H*i��w, Ems. PY a 0, 20M �1 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)