Agenda Date: 12/03/2024
Subject:
Title
Ordinance 29-2024: An ordinance on second reading approving a five-year lease with Pitney Bowes to provide a postage meter and related services to the city
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Scott Rogers, I.T. Director |
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Presentations: |
Scott Rogers, I.T. Director |
PURPOSE:
Does city council support approval of a five-year lease with Pitney Bowes for a postage meter and related postage services to the city.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
The City of Littleton provides in-house postage services for mail communications for all City of Littleton departments. The United States Postal Service (USPS) is implementing new mailing technology in 2024. Moving from Information Based Indicia (IBI) to Intelligent Mail Indicia (IMI) requires upgrading the current postage meter hardware. The USPS deadline for compliance has been set for December 31st , 2024. The new postage meter lease will bring our hardware into compliance with the USPS mailing standards.
The city code requires equipment leases greater than one year be approved by council. The city’s purchasing policy allows for cooperative purchasing, meaning the city is allowed to “piggy-back” on contracts and prices obtained by other governments through a competitive bidding process. The city will be utilizing lease terms from Pitney Bowes, through a participating addendum with the State of Colorado tied to an Arizona cooperative agreement, for this 5-year lease term. Colorado’s participating addendum allows Littleton’s lease to survive Arizona’s cooperative agreement and Colorado’s participating addendum expirations.
Attached to this council communication is the Arizona Master Cooperative agreement, the participating addendum from the State of Colorado, and the city’s 5-year lease term.
BACKGROUND:
The Information Technology department partnered with the procurement division to utilize a cooperative agreement for this lease. The monthly rate with Pitney Bowes will be $505.71 for the 5-year term.
Prior Actions or Discussions
This ordinance passed on first reading on November 19, 2024.
FISCAL IMPACTS:
Entering into the new 60-month lease will increase the monthly payment to $505.71 from the current rate $466.64 per month and is paid from the postage account from the general operations division in the General Fund.
STAFF RECOMMENDATION:
Staff recommends approval of the proposed five-year lease with Pitney Bowes.
ALTERNATIVES:
1. Approve the lease and maintain current mail/postage services to city departments; or
2. Don’t approve the lease and direct staff to research other postage options.
PROPOSED MOTION:
Proposed Motion
I move to approve Ordinance 29-2024 approving a five-year lease with Pitney Bowes to provide a postage meter and related services to the city on second reading.