Authorization of Not to Exceed $180,000 General Fund Lease Agreement - Mailing and Inserting Machine_Hearing Copyrighted
April 19, 2021
City of Dubuque Public Hearings # 5.
City Council Meeting
ITEM TITLE: Proceedings forthe Public Hearing on the Authorization of Not to
Exceed $180,000 General Fund Lease Agreement— Mailing and
I nserting Machine
SUM MARY: Proof of publication on notice of public hearing to consider City Council
approval of the suggested proceedings for the public hearing on the
authorization of a general fund lease agreement not to exceed $180,000,
and 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 $180,000 to acquire personal property for the
C ity
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Resolutions
Dubuque
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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
$180,000 General Fund Lease Agreement— Mailing and Inserting
Machine
DATE: April 13, 2021
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 $180,000.
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. Staff has been working with Postal
Source for over twelve months. Since installation, performance of the equipment has
been well below expectations and standards which has resulted in tremendous staff
time and financial burden.
Staff are currently investigating the possibility of outsourcing mailing and inserting
services instead of leasing the equipment. If the outsourcing of mailing and inserting
services is not a financially feasible option, staff would recommend termination of the
current Postal Source lease and approval of a 48-month operating lease with Pitney
Bowes.
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 48-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
Jennifer Larson, Director of Finance and Budget
Cassie Ross, Assistant Director of Finance
Chris Kohlmann, Information Services Manager
Tony Breitbach, Purchasing and Contracts Coordinator
2
Dubuque
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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
$180,000 General Fund Lease Agreement— Mailing and Inserting
Machine
DATE: April 13, 2021
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 $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 are currently investigating the possibility of outsourcing mailing and inserting
services instead of leasing the equipment. If the outsourcing of mailing and inserting
services is not a financially feasible option, staff would recommend termination of the
current Postal Source lease and approval of a 48-month operating lease with Pitney
Bowes.
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 mailing and inserting operations should outsourcing not be a
financially feasible alternative. Pitney Bowes carries the state contract for this type of
equipment; 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. If outsourcing mailings is not an
option, the staff recommendation would be 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.
lowa Code Sections 364.4 and 384.25 require a public hearing to be held before
entering a lease contract for personal property.
A 48-month lease would count against the City's statutory debt limit.
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolution instituting the
proceedings to take additional action should the outsourcing of services not be a
financially feasible alternative.
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 19, 2021
CITY OF DUBUQUE, IOWA
Not to Exceed $180,000 Lease Agreement (General Fund – Mailing and inserting 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.
1
April 19, 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:
Cavanagh, Farber, Jones, Resnick, Roussell, Sprank
Absent: ___________________________________________
Vacant: ___________________________________________
* * * * * * *
2
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
$180,000 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, 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 zero written objections had been filed. The Mayor then called for oral objections to
the proposal and zero were made. Whereupon, the Mayor declared the time for receiving oral
and written objections to be closed.
3
The City Council then considered the proposed action and the extent of objections
thereto.
Whereupon, Council Member Jones 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 $180,000 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 _______________, 2021, at this place.
Council Member Roussell seconded the motion. The roll was called and the vote was,
AYES: Farber, Cavanagh, Sprank, Buol, Resnick, Jones, Roussell
___________________________________________
NAYS: ___________________________________________
Whereupon, the Mayor declared the measure duly adopted.
RESOLUTION INSTITUTING PROCEEDINGS TO TAKE ADDITIONAL
ACTION FOR THE AUTHORIZATION OF A LEASE AGREEMENT
(GENERAL FUND) IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED
$180,000 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 $180,000, for the purpose of paying
costs of the acquisition of personal property for the City, and more specifically, for the lease of a
mailing and inserting 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 $180,000 to
evidence the obligation thereof for the foregoing purpose.
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 $180,000 and otherwise to take all
action necessary to permit the execution of a Lease Agreement on a basis favorable to the City.
PASSED AND APPROVED this 19th day of April 2021.
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Mayor
ATTEST:
City Clerk G`
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CERTIFICATE
STATE OF IOWA )
COUNTY OF DUBUQUE SS
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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.
W rN
ESS my hand and the seal of the Council hereto affixed this � day of
2021.
City Clerk, City of Dubuque, State of Iowa
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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.�,
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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