CITY COUNCIL AGENDA ITEM
Memo Date: April 17, 2024
Agenda Date: May 14, 2024
Prepared By: Monica Arsenault, City Clerk
Through: Tammy Gemmati, Administrative Services Director
Requested Action:
title
Approval of a Multi-Year contract with Pitney Bowes for the renewal of the lease of the DM 475 Mailing System, through June 30, 2029 utilizing the State of Florida Department of Management Services contract # 4102100-17-1. Authorize the City Manager to approve a budget transfer to provide the necessary funding in the correct division.
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BACKGROUND:
The City of Cocoa is currently under a lease with Pitney Bowes for the DM 475 Automatic Mail Machine. The current lease expires June 30, 2024. Staff recommends continuing service with Pitney Bowes for a postage machine utilizing the State of Florida Department of Management Services contract # 4102100-17-1. If approved, the new lease would commence immediately and would be effective for five years, expiring June 30, 2029.
Current services will remain the same; although, there has been a rise in postage since the last lease was approved. The City currently pays quarterly, which would result in an increase to the quarterly payment amount. The new amount would be $418.32/month ($1,254.96/quarter) for a 60-month lease, compared to the $276.68/month or $830.04/quarter that is paid now. As noted, below are the options, with several additions, included with this lease/machine:
• USPS Special Services Software
• MailCenter Meter
• Cost Acctg Accounts Level (100)
• 10 lb Integrated Weighing Scale
• SendPro 360 Shipping Feature
• 145/70 LPM Speed
• Basic Cost Acctg for SP MailCenter
• eReturn Receipt Feature
• USPS Special Services Welcome Kit
• Power Guard Service Package
• MailCenter Printer
• MailCenter Weighing Platform
• Wireless Client Kit
• MailCenter 2000
• USPS Tracking Services
• Meter Equipment - Low
• Drop Stacker
• MailCenter 15in Display
• Barcode Scanner
• SoftGuard 2000
• Standard SLA-Equipment Service Agreement (for MailCenter)
Finance staff has reviewed the lease agreement and has determined that GASB87 applies to this lease, therefore, the lease is considered debt. The monthly payments will be recorded as a reduction of the five-year debt and interest expense. Since there is an increase in the cost of the new lease and the lease qualifies under GASB87, a budget transfer will be necessary to move the existing budget that is recorded as a lease payment from the City Clerk’s division to the General Operations division and provide budget for the increase in costs. As a result, staff is requesting authority for the City Manager to approve the necessary transfer. The amounts for interest and expense will included in the adopted budget for future years.
STRATEGIC PLAN CONNECTION:
N/A
BUDGETARY IMPACT:
Budgeted Yes
001-1600-513.71-33 Principal $1102.17
001-1600-513.72-33 Interest 152.79
Total budgetary impact for future years will be as follows:
FY 2023/2024 $1,254.96 (From July-September)
FY 2024/2025 $5,019.84
FY 2025/2026 $5,019.84
FY 2026/2027 $5,019.84
FY 2027/2028 $5,019.84
FY 2028/2029 $3,764.88 (partial year)
PREVIOUS ACTION:
The current lease for Pitney Bowes was approved at the regular City Council meeting held on June 26, 2019.
RECOMMENDED MOTION:
Recommendation
Approval of a Multi-Year contract with Pitney Bowes for the renewal of the lease of the DM 475 Mailing System, through June 30, 2029 utilizing the State of Florida Department of Management Services contract # 4102100-17-1. Authorize the City Manager to approve a budget transfer to provide the necessary funding in the correct division.