1999 AGN DEC 07 I06 - Laserfiche WebLink

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PARAGON II November 18, 1999 Page 4 of 5 SOLE SOURCE: The Paragon II is a sole source product because of its unique ability to weigh mail on the way (WOW) up to 16 oz up to 90 pieces per minute, without the need to sort by size and shape of mail. Pitney Bowes has offered the City of Colton the opportunity to enter into a California Multiple Award Schedule contract which allows the City to derive the benefits therein and enables the City to "piggy -back" onto an existing State contract. Additionally, Pitney Bowes is a local business that generates substantial sales taxes for the City of Colton. ENVIRONMENTAL IMPACT: None. FISCAL IMPACT: Purchasing the mail machine is not an alternative as it needs to be overhauled. Most importantly, the City could never own the postage meter or postage system because the Post Office will not allow it. The alternative to the proposed Paragon II and ancillary systems is to re-enter a five-year lease for a remanufactured Paragon I, at a total cost of $36,519. This would be a basic package as entered five years ago. The proposed lease will upgrade the City's mail operation tremendously. Yes, the lease will total $98,010; however, it is expected that savings to be realized in postage and man-hours will offset the price. In addition, this lease will include any postage increases (up to six per year) for the life of the lease. This includes bulk rates, library rates and standard rates, realizing about $200-600 in savings per year. In fiscal year 1998-99, there were two postage rate increases, one a library rate and one a standard rate. This fiscal year, there is an anticipated increase in the standard rate that is expected to affect a change in the library rate as well. As additional savings, the system includes six USPS National Address Database upgrades a year to insure accuracy. On written notice from Pitney Bowes, the Paragon II system is Y2K compliant. Adequate budget funds, for Fiscal Year 1999-2000 and 2000-2001, are available for the Paragon II system, with monies to be paid from the Postage Account and Equipment Lease Account, under the City Clerk's Budget, as itemized below: For the remainder of FY1999-2000, payment will issue from Account No. 100-6010-6010-2404 in the amount of $5,156 and from Account No. 100-6010-6010-2420 in the amount of $3,430, representing a total sum of $8,586.00.