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HomeMy WebLinkAboutContract No. 2014-25942014 2594 CITY OF COLUMBIA HEIGHTS 60 MONTH EQUIPMENT LEASE CONTRACT VENDOR: NEOPOST EQUIPMENT: MODEL # DS65 FOLDERANSERTER EXPLANATION: This Neopost equipment is leased by the City, under the terms of the MN Cooperative Purchasing Venture contract release M- 499(5). Note however, that MN state contract M -4995 is actually pursuant to an addendum signed by the State of MN to the Western States Contracting Alliance (WSCA) contract #ADSP9011- 00000411 -4. For this reason, the established pricing is published within the WSCA website, and referenced by link to the MN CPV contract and website. Within the WSCA master contract, the State of Arizona serves as the lead WSCA member. As shown on the enclosed attachments, to obtain the benefits of the MN Cooperative Purchasing Venture in this case, contract M- 499(5) prohibits the City from signing any vendor document containing contract terms for this leased equipment. M- 499(5) instead dictates that the City issue the vendor a purchase order to initiate the lease of the equipment under the state /WSCA contract. For this reason, nothing resembling a traditional contract or lease agreement between the City and Neopost is included in this contract file. CONTENTS: 1. City Purchase Order 2. Receiving Documents 3. Applicable pages from MN Cooperative Purchasing Venture contract release M- 499(5) 4. City Purchase Requisition, and support to vendor address change 5. City - Prepared Procurement Analysis 6. City- Prepared Analysis of Imputed -Lease Costs 7. WSCA Contract Pricing Applicable if the Equipment were Purchased instead of Leased. 8. Proposal information supplied by Vendor selected ( Neopost) 9. Proposal information supplied by Vendor not selected (Pitney Bowes) Joseph Kloiber, Finance Director September 15, 2014 MailingEquipmentReplacement Postagemeter080114.docx ORIGINAL CITY OF COLUMBIA HEIGHTS 590 40TH AVE NE COLUMBIA HEIGHTS, MN 55421 PHONE: 763 - 706 -3600 THE CITY IS EXEMPT FROM PAYMENT OF FEDERAL EXCISE TAXES VENDOR: 099197 NEOPOST INC 478 WHEELERS FARM RD MILFORD CT 06461 P\rF,re6Vcr WSCA 056842 PAGE 1 OF 1 P.O.DATE 08 19 2014 SHIP TO: 000001 CITY OF COLUMBIA HEIGHTS CITY HALL 590 40TH AVENUE NE COLUMBIA HEIGHTS MN 55421 01 60.00 MO LEASE FOLDER /INSERTER 38.33 N 2,299.80 601.49440.4000 02 60.00 MO LEASE FOLDER /INSERTER 43.33 N 2,599.80 601.49440.4100 03 60.00 MO LEASE FOLDER /INSERTER 38.33 N 2,299.80 602.49490.4000 04 60.00 MO LEASE FOLDER /INSERTER 43.33 N 2,599.80 602.49490.4100 05 60.00 MO LEASE FOLDER /INSERTER 19.17 N 1,150.20 603.49520.4000 06 60.00 MO LEASE FOLDER /INSERTER 21.67 N 1,300.20 603.49520.4100 07 60.00 MO LEASE FOLDER /INSERTER 19.17 N 1,150.20 603.49530.4000 08 60.00 MO LEASE FOLDER /INSERTER 21.67 N 1,300.20 603.49530.4100 09 60.00 MO LEASE FOLDER /INSERTER 25.00 N 1,500.00 101.41940.4000 10 60.00 MO LEASE FOLDER /INSERTER 31.93 N 1,915.80 101.41940.4100 11 0.00 EA PART #DS -65 .00 N .00 101.41940.4100 ,f Ep- /n c) DATE DEPT REQUESTED BY PHONE SUBTOTAL 08/19/2014 *MULT J KLOIBER (763)706 -3600 SALES TAX s MAYOR WALTER R FEHST CITY MANAGER REQUISITION AUTHORIZATION 18,115.80 0.00 18,115.80 MailFinance A Neopost USA Company Lease Number: Full Customer Name: Li � C5-� ��� '\z"- Billing' Address: S Lease Confirmation, Delivery and Acceptance Form So # l LAo < -s Ce V oust# Phone: Pi& 3 — '10 ('-) ' 3400 City: State: Zip: Contact Name: l Equipment Location (If different from billing address) Installation Address: City: Equipment Installed State: Zip: Quantity Model Number Serial Description J�N ac • �z \ U a Sti 0, C) 5 � s t oo e�e e C l ll W o D As evidenced by this Lease Confirmation, Delivery, and Acceptance Form, Lessee acknowledges receipt, in good condition and satisfactory installation of all of the items described in the above referenced Lease and certify that the Lessor has fully and satisfactorily performed each, every and all covenants and conditions to be performed by it under the Lease between Lessor and Lessee. By signing below Lessee acknowledges and agrees that the equipment that was delivered is what the Lessee ordered from Neopost USA and the equipment was satisfactorily installed. By signature below Lessee accepts the equipment and agrees to the terms as outlined in the Lease Agreement. y Lessee: (Print Full Company Name) C Co �. ii��'S Signat� Installation Date: 9 -i60 - /Z Print Name: Title: Delivery Date: MailFinance 1 478 WHEELERS FARMS ROAD I MILFORD, CT 06461 I TEL: 866.448.0045 I FAX: 866.644.6327 MF- DNA - 20100201 � p a N a H Ln x N Ln O 34 00 y � FHUlw LO MCC) dWoWrn QoLnZ a kor4z yzvZF d' w X z z CD O M m co ,n � H W W m1 W h� O c 0 V W i i LL X LU a Q LL F 4 z Ln w w o 0 A O ryl 04 Q 0 H x w w m F w z aqQq o° H Pai W HFHHH aln H QghWUw Ua a O wCw-F rH- 4U)ia xcxn way n AHwm Hz oOH HW OR'w ZH{F -lox\ a mpwa O wPiHHUH zaHawfl, zxa r) a HW r.�p7ry' am wz- qn w0,-lU pxxGz,Xo z�wHza w P4 �o h Hp;HH w �wfxoHo wE-H3PYm C:) c7) O �C0 wmmH, -l0EHa I U Q c7 am oaxxow m a H0gZ04W H w wWWWO(gWH 44�,OQ C Hzaxwwo O � w a a3zc0 -DH co � a N IN m N N a °6 a 0 O = U N IL Y� m Q Yk o, Y (D m � C Q O L7 N E ry O co O - LD -0 o Y m O d. j N p Q U O u 6 co xfi ran �0 ❑ M � O co N O (O cc N O f` Oa v co E z xo p �o m° U) �? X O r- r1 rn O Q d C) I- rn a = -a CD Ln CD U) C) 0 r 0 o a+ C) E :3 d z H rf1 CD Ln N o m E E N - o z U o CD m � w o f I I I I F 4 z Ln w w o 0 A O ryl 04 Q 0 H x w w m F w z aqQq o° H Pai W HFHHH aln H QghWUw Ua a O wCw-F rH- 4U)ia xcxn way n AHwm Hz oOH HW OR'w ZH{F -lox\ a mpwa O wPiHHUH zaHawfl, zxa r) a HW r.�p7ry' am wz- qn w0,-lU pxxGz,Xo z�wHza w P4 �o h Hp;HH w �wfxoHo wE-H3PYm C:) c7) O �C0 wmmH, -l0EHa I U Q c7 am oaxxow m a H0gZ04W H w wWWWO(gWH 44�,OQ C Hzaxwwo O � w a a3zc0 -DH co � a N IN m N N a °6 a 0 O = U N IL Y� m Q Yk o, Y m � C Q Q 0 (p O N E ry El -0 o Y m > E> L j N p Q U O u xfi ran �0 ❑ r-I O N N N O H N N G P4 a W O z L W V) AMD 0 ICL 0 CU c Y i N N H O 2 H C7 = O 2 U N W CY) Q = LLJ Q y Z m -a -j OC > j 0 a ma0 O0 CN W O 9T Q z UIntmc»2D LLJ O tt °o � w m O W M N 3 Z ) d J O CO) Z 0 O m` > a. = a y C M o cn Ln a° [ c c om E Ln cm U E d m c t o O E E'a (D a=> w CL a CL o H m c :E :c s O o cn ii U 0) V) N 5 Z U) c m _ v 0 U L O 3 O W Q m J M M n 00 T- s O 3 O H N H O 2 H C7 = 2 U W Q = LLJ Q y Z m -a -j OC > j 0 a ma0 O0 CN W O 9T Q z UIntmc»2D m J M M n 00 T- s O 3 O H Admin Minnesota Materials Management Division Room 112 Administration Bldg., 50 Sherburne Ave., St. Paul, MN 55155; Phone: 651.296.2600, Fax: 651.297.3996 Persons with a hearing or speech disability can contact us through the Minnesota Relay Service by dialing 711 or 1.800.627.3529. DATE: JULY 9, 2014 CONTRACT RELEASE: M- 499(5) PRODUCT /SERVICE: MAILING EQUIPMENT, MAINTENANCE AND POSTAGE CONTRACT PERIOD: DATE OF INDIVIDUAL CONTRACT EXECUTION, THROUGH OCTOBER 12, 2014 EXTENSION OPTIONS: UP TO 24 MONTHS ACQUISITION MANAGEMENT SPECIALIST: BONNIE LUNDGREN PHONE: 651.201.2433 E -MAIL: bonnie.lundgren(a)state.mn.us WEB SITE: www.mmd.admin.state.mn.us CONTRACT VENDOR CONTRACT NO. TERMS DELIVERY VARIOUS VARIOUS VARIOUS VARIOUS CONTRACT USERS. This Contract is available to State agencies and to members of the State's Cooperative Purchasing Venture (CPV) program at the same prices, terms, and conditions. COOPERATIVE PURCHASING VENTURE MEMBERS. This contract is available for use by CPV members. If these commodities or service can be better structured to help you with your business needs, let us know. We solicit your comments and suggestions to improve all of our contracts so that they may better serve your business needs. If you have a need for which no contract currently exists, or you would like to be able to use an existing state contract that is not available to CPVs, please contact us. If you have specific comments or suggestions about an individual contract you can submit those via the Contract Feedback Form. STATE AGENCY CONTRACT USE. This Contract must be used by State agencies unless a specific exception is granted by the Acquisition Management Specialist listed above. We solicit your comments and suggestions to improve all of our contracts so that they may better serve your business needs. If you have a need for which no contract currently exists, or you would like to be able to use an existing state contract that is not available to your agency, please contact us. If you have specific comments or suggestions about an individual contract you can submit those via the Contract Feedback Form. AGENCY ORDERING INSTRUCTIONS. Orders are to be placed directly with the Contract Vendor. State agencies should use a Contract release order (CRO) or a blanket purchase order (BPC). The person ordering should include his or her name and phone number. Orders may be submitted via fax. END OF LEASE RESPONSIBILITIS. Lease holders should be aware of the lease end dates so options can be discussed with the Contract Vendors and decisions can be made prior to the end date. Options include but are not limited to returning the equipment and entering into a new lease under the terms and conditions of this Contract. Current leases may be automatically extended by the Contract Vendor on a month to month basis if notification is not given to the Contract Vendor prior to the end of the lease period. SERVICE CERTIFICATION FORM REQUIREMENTS. Pursuant to Minn. Stat. § 16C.09, agencies must complete a "Service Contract Certification Form" prior to issuing an order for services offered from this Contract. Contract Release 14 (09/12) Page 1 of 10 Contract Release: M- 499(5) SPECIAL TERMS AND CONDITIONS SCOPE OF WORK. The State has signed Participating Addendums (PA) to the Western States Contracting Alliance (WSCA) Master Price Agreement (MPA) ADSP011- 00000411 to provide a full range of mailing equipment, maintenance and postage for purchase, rental, and /or leasing. Lease to own options are not part of this Contract. PRICES. All prices shall be FOB Destination, freight prepaid and allowed (with freight included in the price), to the ordering agency's receiving dock or warehouse. In those situations in which the "deliver -to" address has no receiving dock or agents, the Contract Vendor must be able to deliver to the person specified on the PO. Price increases are allowed. NOTE: At no time should the ordering entity pay more than the Contract price. Agencies must contact the AMS immediately and fill out a Vendor Performance Report if there is a discrepancy between the price on the invoice and the Contract price. RENTAL /LEASE AGREEMENTS. Agencies will not sign any Contract Vendor documents, including but not limited to software agreements or any documents to begin, change, or renew rental /lease agreements. Agency purchase orders will serve as the purchase and /or rental /lease agreement contract. Any Contract Vendor found to be in violation of this Contractual requirement, may be held in default of their Contract and appropriate action may be taken. Agreements cannot be assigned to another party without the prior written consent of the Acquisition Management Specialist. IT ACCESSIBILITY. When agencies are making purchasing decisions, the purchasing entities are responsible for evaluating the accessibility of IT products in accordance with the State of MN IT Accessibility standards that incorporate both Section 508 standards and Web Content Accessibility Guidelines 2.0 level 'AA' standards. This contract requires vendors to provide accessibility information, known as VPATs, for the products available through this contract. It is the purchasing agency's responsibility to request, collect, evaluate, and make a purchasing decision in compliance with these state laws. EXCESSIVE SERVICE. Equipment that develops a trend of requiring excessive service calls shall be reported to the Contract Vendor and AMS by the agency as the situation warrants. Should the equipment, any accessories, or software become inoperable for a period of twenty four (24) consecutive working hours, the Contractor shall, at the agency's option provide at no charge a loaner or accessory of equal capability of the non performing piece of equipment while repairs are being completed. PRODUCTS, SERVICES AND SUPPORT INCLUDING MINIMUM SPECIFICATIONS Postage Meter Rental • Digital postage meter must have display that provides date, piece- count, postage used, and postage unused. • Must be refillable by phone that may be placed on a master account. • Must imprint postage from $0.01 to $99.99. • No administrative fees for postage meter refills • Available to renew annually • No penalties for early rental termination Mailing Systems, Ultra Low Volume • Digital or IBI Operation to conform with USPS Postal Bulletin #22131 • Manual Feed • Must meter, date envelopes • Handles standard mail envelopes from 3" x 5" to 9" x 12" • Interfaces with postage scales • Must include locking key or security feature • Must imprint postage from $0.01 to $99.99 • Must have replaceable ink cartridge • Must have tape system for oversize packages (specify wet or dry tape — wet is preferred) Contract Release 14 (9/12) Page 2 of 10 Contract Release: M- 499(5) Letter Openers, Low Volume • Includes Feeder and Stacker, Variable Trim Control • Processing speed up to 25,000 pieces per hour Minimum. • Self- Sharpening trim blade adjusts to allow for narrow or wide cut. • Includes Tray that collects opened envelopes and trimmings. Letter Openers, High Volume • Includes Feeder and Stacker, Variable Trim Control • Processing speed over 25,000 pieces per hour Minimum. • Self- Sharpening trim blade adjusts to allow for narrow or wide cut. • Includes Tray that collects opened envelopes and trimmings. Letter Folders, Low Volume • Automatic • Folds up to 15,000 sheets per hour minimum. • Completes Standard or Custom folds. • Handles at a minimum paper from 3 -1/8" x 4" x 9 -1/2" x 14 ". Letter Folders, High Volume • Automatic • Folds more than 25,000 sheets per hour minimum. • Completes Standard or Custom folds. • Handles at a minimum paper from 3 -1/8" x 4" x 9 -1/2" x 14 ". • Able to process Multiple Folds Inserters • Processes up to 5,500 sheets per hour minimum. • Feeds, collates, folds, and, inserts material into envelopes. • Jobs can be pre - programmed. Folder /Inserters, Low volume • Automatic • Completes Standard or Custom folds. • Handles paper from 3 -1/8" x 4" x 9 -1/2" x 14 • Processes up to 1,500 sheets per hour minimum. • Feeds, collates, folds, and, inserts material into envelopes. • Jobs can be pre - programmed. Folders /Inserters, Medium Volume • Automatic • Completes Standard or Custom folds. • Handles paper from 3 -1/8" x 4" x 9 -1/2 x 14 ". • Processes up from 1501 — 4,999 sheets per hour minimum. • Feeds, collates, folds, and, inserts material into envelopes. • Jobs can be pre - programmed. Folders /Inserters, High Volume • Automatic • Completes Standard or Custom folds. • Handles paper from 3 -1/8" x 4" x 9 -1/2" x 14 ". • Processes up to 5,000 — 9,999 sheets per hour minimum. • Feeds, collates, folds, and, inserts material into envelopes. • Jobs can be pre - programmed. Contract Release 14 (9/12) Page 4 of 10 Contract Release: M- 499(5) CONTRACT VENDOR NEOPOST USA INC, DBA HASLER, INC 701 Xenia Avenue South, Ste, 170 Minneapolis, MN 55416 VENDOR NO.: 0000205589 Neopost CONTRACT NO. TERMS DELIVERY WSCA ADSP011- 00000411 -4 NET 30 AS REQUESTED STATE 0000000000000000000048837 CONTACT: Frank Ambrose PHONE: 763.452.3520 x1106 Sr. Territory Manager FAX: 763.452.3740 E -MAIL: F.Am brose(a-) neo post, corn CONTRACT EXECUTION DATE: December 3, 2012 VENDOR NO.: 0000208415 Mail Finance for leasing equipment Pricing can be found at: http:// www. aboutwsca .org /content.cfm /id /neopost EVALUATION PERIOD. Agencies shall have the option to evaluate the performance of equipment for either the initial thirty (30) or sixty (60) days after installation (an "Evaluation Period "). In order to exercise the option for an Evaluation Period, the purchase order that is issued to procure the equipment must specifically state that (i) there shall be an Evaluation Period in connection with the order; and (ii) the duration of the Evaluation Period which, at the agencies option, will be for the initial thirty (30) or sixty (60) days after installation. If during the Evaluation Period, the agency notifies the Contract Vendor in writing that the equipment performance is either unacceptable to the agency or not capable of handling the volume specified, the Contract Vendor agrees to replace the equipment with other contract equipment to meet the agency's needs (an "Equipment Replacement "). If an agency selected a thirty (30) Evaluation Period and requires an Equipment Replacement, then the Contract Vendor shall make the Equipment Replacement without charge to the agency. AWARDED CATEGORIES: Postage Meter Rental, Ultra Low Volume Mailing Systems, Low Volume Mailing Systems, Medium Volume Mailing Systems, High Volume Mailing Systems, Production Volume Mailing Systems, Integrated Postal Scales, Low Volume Letter Openers, High Volume Letter Openers, Low Volume Letter Folders, High Volume Letter Folders, Inserters Production, Folders /Inserters, Low Volume, Folders /Inserters, Medium Volume, Folders /Inserters, High Volume Folders /Inserters, Production Folders /Inserters, Envelope Addressing System Ink Jet, Low Volume, Envelope Addressing System Ink Jet, Medium Volume, Envelope Addressing System Ink Jet, High Volume, Envelope Addressing System Ink Jet Production, Tabbers, Low Volume, Tabbers, Medium Volume, Tabbers, High Volume, Mail Room Specific Furniture, Software, License and Subscription. POSTAGE IS NOT PART OF THIS CONTRACT. CONTRACTVENDOR, CONTRACT NO. STAMP . , WSCA ADSP011- 00000411 -8 1990 E. Grand Ave. STATE 0000000000000000000048450 El Segundo, CA 90245 VENDOR NO.: 0000387495 CONT Eric Stout E -MAIL: estout stam . m CONTRACT EXECUTION DATE: December 21, 2012 TERMS DELIVERY NET 30 AS REQUESTED PHONE: 310.482.5874 FAX: 888.711.1183 TOLL FREE: 877.782.6785 Pricing can be found at: http: / /www.stamps.com/ enterprise /government /state - local /minnesota AWARDED CATEGORIES: Online PC postage software for mailing and shipping. Prints exact postage fore el and packages using existing PC and printer. All USPS mail classes are available. Detailed mailing and shipping Tracking and reporting tools. Financial controls and administrative oversight. Software License and Subscription. Contract Release 14 (9/12) Page 9 of 10 c City of Columbia Heights Purchase Requisition Date: 08/12/2014 Purchase NEOPOST INC PurchReq ID: 14961 Dept: Finance from: aS^ "rngpi AC F �.:- p PO #: ®S ZO 0 �� 9� tv e- � t 9 d7 4i 6 ' Req'd By: JKloiberjt 2/� G'T 6 �K) Inv #: Purpose: Replace Obsolete Equip _. _ ��T 4c; o 58 Vendor code: 099197 Qty Unit Description Unit Cost Amount Fund Dept Obj Amount 60 mo Lease Folder /Inserter 301.93 18,115.80 601 49440 4000 2,300.00 . 1 ea Part #DS -65 0.00 0.00 601 49440 4100 2,600.00 SUBTOTAL: $18,115.80 602 49490 4000 2,300.00 602 49490 4100 2,600.00 603 49520 4000 1,150.00 603 49520 4100 1,300.00 603 49530 4000 1,150.00 603 49530 4100 1,300.00 101 49140 4000 1,500.00 101 41940 4100 1,915.80 TOTAL: $18,115.80 TAX RATE: 0% SALES TAX: $0.00 Notes: Reference WSCA contract #ADSP9011- 00000411 -4 TOTAL: $18,115.80 ---------------------------------------------- Five yr lease of Folder /Inserter: (A)Equipment $8,959 (B)Maint.agreemt $8,400 (C)Imputed interest $757 FOR FINANCE DEPT USE ONLY APPROVALS Approval Code: F I FINANCE: COUNCIL (if req'd): Department Code: i Line Item Balance: Date approved: Div. /Dept.Head: Date: City Manager:��� Joseph Kloiber From: Devin Long <D.Long @neopost.com> Sent: Monday, August 04, 2014 10:36 AM To: Joseph Kloiber; Scott Ling Cc: Jill Haley Subject: RE: folder inerter / postage system proposal Joe, We are excited to hear that you are going to stay with us for the folder inserter and add us for the mailing equipment. For the WSCA agreement you will cut the PO to Neopost Inc �° FEIN 94- 2388882 478 Wheelers Farm Road '- f � ,/ �✓ ` ��� ��-- �Milford, CT 06461 Plea eference the WSCA contract # ADSP011- 00000411 -4 and make the PO reflect the park ��umb rs�n ire- 6Tiiron h Ie -1 don't-cr°rovv tl� -in r- icaci�s�f -hoer the agreement was negotiated but this is the process that is followed. It would be easier just to sign the lease agreement but I guess that is above my pay grade. Let me know when you get approval and if you have any additional questions. We look forward to working with you for a long time to come. .11 euill ,Gam Neopost Great Plains District 701 Xenia Avenue South, Suite 170 Minneapolis, MN 55416 Document Systems Specialist d. long a.neopost.corn 763- 452 -3520 office 612 - 723 -5034 cell From: Joseph Kloiber [ mailto :Joseph.Kloiber(aOci.columbia- heights.mn.us] Sent: Friday, August 01, 2014 6:41 PM To: Scott Ling Cc: Devin Long; Jill Haley Subject: RE: folder inerter / postage system proposal Scott; 1 CITY OF COLUMBIA HEIGHTS August 1, 2014 Procurement Analysis Supporting Purchase Requisition for Mailing Equipment (Folder/Inserter) at City Hall By: Joseph Kloiber, Finance Director urpose: To replace the existing Neopost folder /inserter — model SI -62 (i.e., "envelope stuffer' ). Background: The current folder /inserter is used primarily for utility billing, payroll, abatement billing, special assessment notices, and some other mass notifications to property owners. The machine is approximately 7 -8 years old. The manufacturer stopped making parts for these models within the last 1 -2 years. The current annual maintenance agreement costs for such discontinued models are prohibitive. The vendor has stated they will not renew maintenance agreements on these machines, when the existing agreements expire. Neopost and Pitney Bowes are the only two companies that lease U.S. postage meters. They are also the only two major vendors of folding/inserting machines in the world. Pitney Bowes does not have an office in Minnesota. All the models they offer, that would be under consideration here, are offered at the pricing established within the state purchasing contract (CPV — WSCA). The folder /inserter can be leased or purchased. Given the number of moving parts involved however, I estimate they are not practical to own beyond the 5 year lease period available. After 5 years, the annual maintenance agreements spike in price, and within one to two years following that, parts are discontinued. In addition, the City expects to have completely migrated to new software for billing and payroll within those 5 years. Leasing provides an earlier point (relative to the payback period of owning), at which to re- evaluate whether the City wants to continue printing and mailing such items in -house or to outsource bill printing and mailing. Analysis: Locating the right Pitney contact, at the right time, for the right thing, proved to be problematic when assembling this analysis. Whereas, Neopost has an office in Plymouth MN, and they have been clearly easier to work with for this analysis. It appears that to offset the higher lease costs of their new style of postage meter in separate but concurrent procurement, Pitney Bowes proposed a lower capacity folder /inserter than Neopost proposed. The model proposed by Neopost is higher priced, but is similar in capacity to the current City machine. Whereas the lower capacity model proposed by Pitney Bowes barely meets the bare minimum specification. I cannot go so far as to say that Pitney didn't follow spec, but I have very significant concerns about it: • Although the monthly duty cycle meets our total monthly expected volume, we fold most of that monthly volume in 2 days each month. For this reason we need a machine with a higher monthly duty cycle than our monthly output. MailingEquipmentReplacement Folder080114.docx August 1, 2014 Procurement Analysis: Mailing Equipment (Folder/Inserter) at City Hall Page 2 • The Pitney machine operates at half the speed of the Neopost machine. This is also a problem during our peak 2 days per month. • The Pitney machine folds each sheet separately, and then stuffs them one at time into the envelope. Whereas Neopost folds all pieces together and inserts them as a unit into the envelope, avoiding many mechanical problems. • The Neopost folder /inserter has much more ability to handle a variety of materials. Pitney is limited to #20424 pound paper and it only makes one type of fold (C fold). • If the Neopost folder /inserter were downgraded to the equivalent proposed by Pitney, the price for each is approximately the same also. Conclusion: Enter into a 5 year lease with Neopost for the folder /inserter, at state contract prices. Mail ingEquipmentRep lacement_Folder080114.docx City of Columbia Heights lease /buy analysis NEOPOSTFOLDER /INSERTER DS65 imputed rate 3.237725 Month Payment maintenance Interest Principal Balance 0 8,959.00 Note (A) 1 301.93 140.00 24.17 137.76 8,821.24 2 301.93 140.00 23.80 138.13 8,683.11 3 301.93 140.00 23.43 138.50 8,544.61 4 301.93 140.00 23.05 138.88 8,405.73 5 301.93 140.00 22.68 139.25 8,266.48 6 301.93 140.00 22.30 139.63 8,126.85 7 301.93 140.00 21.93 140.00 7,986.85 8 301.93 140.00 21.55 140.38 7,846.47 9 301.93 140.00 21.17 140.76 7,705.71 10 301.93 140.00 20.79 141.14 7,564.57 11 301.93 140.00 20.41 141.52 7,423.05 12 301.93 140.00 20.03 141.90 7,281.15 13 301.93 140.00 19.65 142.28 7,138.87 14 301.93 140.00 19.26 142.67 6,996.20 15 301.93 140.00 18.88 143.05 6,853.15 16 301.93 140.00 18.49 143.44 6,709.71 17 301.93 140.00 18.10 143.83 6,565.88 18 301.93 140.00 17.72 144.21 6,421.67 19 301.93 140.00 17.33 144.60 6,277.07 20 301.93 140.00 16.94 144.99 6,132.08 21 301.93 140.00 16.54 145.39 5,986.69 22 301.93 140.00 16.15 145.78 5,840.91 23 301.93 140.00 15.76 146.17 5,694.74 24 301.93 140.00 15.37 146.56 5,548.18 25 301.93 140.00 14.97 146.96 5,401.22 26 301.93 140.00 14.57 147.36 5,253.86 27 301.93 140.00 14.18 147.75 5,106.11 28 301.93 140.00 13.78 148.15 4,957.96 29 301.93 140.00 13.38 148.55 4,809.41 30 301.93 140.00 12.98 148.95 4,660.46 31 301.93 140.00 12.57 149.36 4,511.10 32 301.93 140.00 12.17 149.76 4,361.34 33 301.93 140.00 11.77 150.16 4,211.18 34 301.93 140.00 11.36 150.57 4,060.61 35 301.93 140.00 10.96 150.97 3,909.64 36 301.93 140.00 10.55 151.38 3,758.26 37 301.93 140.00 10.14 151.79 3,606.47 38 301.93 140.00 9.73 152.20 3,454.27 39 301.93 140.00 9.32 152.61 3,301.66 40 301.93 140.00 8.91 153.02 3,148.64 41 301.93 140.00 8.50 153.43 2,995.21 42 301.93 140.00 8.08 153.85 2,841.36 43 301.93 140.00 7.67 154.26 2,687.10 44 301.93 140.00 7.25 154.68 2,532.42 45 301.93 140.00 6.83 155.10 2,377.32 46 301.93 140.00 6.41 155.52 2,221.80 47 301.93 140.00 5.99 155.94 2,065.86 48 301.93 140.00 5.57 156.36 1,909.50 49 301.93 140.00 5.15 156.78 1,752.72 50 301.93 140.00 4.73 157.20 1,595.52 51 301.93 140.00 4.30 157.63 1,437.89 52 301.93 140.00 3.88 158.05 1,279.84 53 301.93 140.00 3.45 158.48 1,121.36 54 301.93 140.00 3.03 158.90 962.46 55 301.93 140.00 2.60 159.33 803.13 56 301.93 140.00 2.17 159.76 643.37 57 301.93 140.00 1.74 160.19 483.18 58 301.93 140.00 1.30 160.63 322.55 59 301.93 140.00 0.87 161.06 161.49 60 301.93 140.00 0.44 161.49 0.00 18,115.80 8,400.00 756.80 8,959.00 0.00 Note (A) = Cash purchase price per MN CPV contract link to WSCA pricing Mailing Equip_WSCApricing20l4.xlsx C 2 » 3 0) .\ \ U U) .ƒ w E k c k / § . ± V) S / � / f k j \ 0 / c c .0 m � ƒ CL C <. < Q (A V)- y ± ƒz \ / 0 @ C) ® \ \ E . 2 $ + ƒ 2 a (v E { i ° $ 2 = LL u § ƒ 2 e e 2 ± i 7 � c # cr- � t 2 C E R f R ? u / -0 0) 0 CO / 2 . R E t / 7 [ 0 2 2 }) �°2/ u > f 0 � §\ �C) 2 � u ƒ 2 d) /q e %m &8 % - u n 2 » 3 0) .\ \ U U) .ƒ w E k NEOPOST IS COMMITTED TO EXCEEDING CUSTOMER EXPECTATIONS AND STANDS FIRMLY BEHIND THE MAILING AND SHIPPING SOLUTIONS WE MANUFACTURE AND DISTRIBUTE. WE STRIVE TO DELIVER PRODUCTS AND SERVICES THAT OUR VALUED CUSTOMERS CAN DEPEND UPON THROUGHOUT THE TIME OF OWNERSHIP. EQUIPMENT RELIABILITY GUARANTEE For all new products covered by a Neopost Maintenance Agreement, we unconditionally guarantee that our equipment will perform to specification. Neopost Online Services provides remote diagnostics and software upgrade capabilities for your mailing system, eliminating the need for some on -site visits by service technicians. If for any reason our products do not perform up to our published specifications and we cannot repair it, we will replace it with a comparable product. We will honor this commitment for five years for products with a non - disrupted maintenance contract from an authorized dealer or branch. RATE CHANGE PROTECTION GUARANTEE Under our Rate Change Protection Program provided with Neopost Online Services, Neopost guarantees that you will never again have to pay for an unscheduled rate change. You are allowed USPS® rate changes for a fixed annual fee, excluding carrier services, which are guaranteed for up to five years. In addition, if the USPS mandates a Rate Change within 90 days after you place an equipment order, you will receive the rate update absolutely free. EQUIPMENT REPLACEMENT OPTION GUARANTEE Neopost guarantees that when leasing a new product through Neopost Leasing, special upgrade options will always be available. The flexibility offered through leasing allows you to take advantage of all the Neopost driven technological changes that take place. Additionally, this allows you to always have state -of- the -art equipment as well as products that will meet ever - changing needs. FIXED PRICE GUARANTEE Neopost Leasing guarantees a unique All -In -One Lease. This program offers a fixed payment term custom tailored to your needs, which can include equipment, maintenance, meter rentals, and Neopost Online Services. Therefore, your first payment through your last payment will remain exactly the same *. `Some special leasing promotions may provide payment changes during lease term, but these are not required. POSTAGE GUARANTEE Neopost guarantees postage advances to all credit approved customers using a neoFundsTm account. This ensures that you never run out of postage again - 24 hours a day, 7 days a week. With a neoFundsTm account you have the flexibility of having the postage you need now, without any payment delivery delays. Neopost works hard to earn your business and promises to work even harder to keep you a satisfied customer. As a leading global provider of mailing and shipping solutions, we listen to our customers and work hard to turn their mailing operation into a streamlined profit engine. As a company, we continue to grow and evolve while maintaining our commitment to customer service and providing quality products and services. If you have any questions or needs, please do not hesitate to contact us at 1- 800- NEOPOST. Your satisfaction is the key to our success. Regards, Christopher M. O'Brien Executive Vice President - Field, Sales & Service product design award 2012 E -- City of Columbia Heights DS -65 FOLDER/INSERTER ■ Color touch - screen controls with graphical user guidance and wizard -based programming ■ Versatile flexFeeders can process document sizes from full sheets down to 1/3 inserts ■ load'n Go® allows DS -65 to program itself based on the materials you place in the trays ■ Maximum productivity from perfectly- matched capacity on each feeder & the built -in stacker ■ With powerFold® DS -65 can tri -fold up to 8 pages together, neatly and silently ■ Ensures accurate mail piece contents with exclusive secure'n Feed® technology SYSTEM CONFIGURATION ■ 2.5 Stations ■ 250 Finished Envelope Stacker INVESTMENT DETAILS AII- Inclusive Lease* Normal Price WSCA Savings Your Price Scott Ling Account Executive 763 - 639 -0557 s.ling2 @neopost.com 48 Month Term $459.15 /month $127.49 ($6,119.52 savings) $331.66 /month 60 Month Term $408.76 /month $106.83 ($6,409.80 savings) $301.93 /month V id Until: c'r ( .� f Cc; L DS -62 DS -65 Enhancements Vastly improved user interface Increased BRE and envelope feeder capacity High- capacity vertical stacker Matching input /output Dedicated daily mail feeder Semi - automatic envelope separator Automatic envelope sealing Automatic water level detection Enhanced folding capacity Smaller but faster Field upgradeable BCR -ready with CIS scanner Ci !1 _.._ DS -6y 5 Customer Benefits Color touchscreen with wizard -based guidance, visual instructions and enhanced pictograms. Less menu items and buttons for quicker access to job lists and other key system functions. Five additional job presets also available Insert feeder loading capacity increased by 200 BREs. Envelope feeder capacity increased by 100 envelopes. Built -in vertical envelope stacker holds 150 more filled envelopes, provides much more ergonomic unloading, preserves printing order, and reduces the system's footprint. All feeders and the envelope stacker have a capacity of 250. This perfect balance minimizes breaks in production to reload and represents a major gain in productivity. Hand - feeding sets of stapled or loose documents is easier and more efficient than ever using a dedicated feeder that's fully optimized for this task. New "load and lock" envelope hopper eliminates manually "dialing in" envelope thickness when switching envelope types. Ensures smooth insertion and simplifies envelope changeover. Envelope sealing is now controlled from the touchscreen. Save your sealing preferences when programming jobs, and the DS -65 will turn sealing on and off automatically. No more manual switch! Users no longer need to visually monitor water levels. Sensor -based detection notifies operators when sealing fluid is low, preventing unsealed envelopes. The maximum number of sheets folded together (half fold) is now 8 instead of 5. System length was reduced by over 2 feet. DS -65 is nearly 10% faster, with production speeds reaching 2,400 finished envelopes /hr. A DS -65 without an insert /BRE feeder or with less than 2 document feeders can be upgraded at any time to add them. Supports enhanced document security with barcode reading. Employs full page document scanning that eliminates the need to adjust the reading head when the location of OMR marks /barcodes varies by job. Joseph Kloiber From: Joseph Ruseski <joseph.ruseski @pb.com> Sent: Thursday, July 31, 2014 10:49 AM To: Joseph Kloiber Subject: DI200 COMBINATION DOCUMENT FOLDER & ENVELPOE INSERTER - PITNEY BOWES Attachments: DI200 BROCHURE.pdf; DI200 SPECS.pdf; Lease - WSCA OPTION C.pdf; Purchase Agreement_WSCANASPO.pdf Pitnimely, Bowes 71 7rr- Engineerinq the flow of communication- July 31, 2014 Mr. Joe Kloiber CITY OF COLUMBIA HEIGHTS CAN: 19585930209 Dear Joe, Thanks for the opportunity to provide information on our Pitney Bowes equipment. Pricing is based on the Minnesota State WSCA /NASPO & Pitney Bowes contract agreement. Attached is a brochure with lease & purchase quotes for our D1200 document folder & inserter for your review. Y Pitney Bowes D1200 Office Right Folder /inserter `y. Overview The D1200 OfficeRightT"^ Mailer is a compact, easy -to -use system that automatically folds, inserts, and seals business and promotional mail at 15 letters per minute. It is ideal for smaller organizations or corporate departments that routinely create invoices, checks, newsletters, or direct mail pieces. Promotional inserts or reply envelopes can be added to mailings with the touch of a button to help you grow your business & is designed to fold 4,000 pieces a month or less. Benefits • Professionally installed by a Pitney Bowes technician • Easy to use - "Press and Go" • Loads on the fly • No operator adjustments • Portable • Fits perfectly in office environment • Security - trial piece required • Mailings up to 4,000 per month • Produces more professional looking mailing • Speeds cash flow - An invoice that gets out faster brings payments back sooner • Reduces labor -up to six times faster than manual preparation Product Specifications Folding Options C fold for 8.5" x 11" material, Double Parallel fold for 8.5 x 14" Height 14.4" Length 17.3" Paper Size Letter 8.5 x 11 ", Legal 8.5 x 14" Envelope Size #10 only Paper Weight 20 - 24 Ibs Power 110 Vac: 60 Hz, UL Approved Weight 38 Ibs Width 20,9" Speed Maximum of 900 cycles /hour Once you're ready to proceed, completed agreement may be e- mailed or faxed to me at (203) 546 -2742. Thank you & please let me know when you're available to review in further detail. Joseph Ruseski Strategic & Government Account Manager Pitney Bowes, U.S. Mailing Solutions, Inside Sales East 27 Waterview Drive Shelton, CT 06484 USA Office: 800- 203 -2581 x6672 Fax: 203- 546 -2742 ioseph.ruseskiCa pb.com Please contact me for information on additional PB products: Postal Discount Software Address Printers Folders /Inserters Website Design Shipping Software Document Shredders Permit & Bulk Mail Visitor Tracking Systems Driving performance Flexible processing - Invoices, statements, letters, promotions and other correspondence is folded, inserted and securely sealed in an envelope ready for mailing Versatile - Automatically folds and inserts up to two letter or legal sized sheets into a #10 envelope Drive sales - Add promotional insert or reply envelope to your communications to help grow your business Saves time /reduce labor - System processes 15 pieces per minute and is 6 times faster than manual processing so labor is reduced Speed cash flow - Invoices get out faster and your payments come back to you sooner Easy to use - All the controls are right at your fingertips with prompts in English or Spanish clearly displayed on the control panel Out of the box operation - Plug it in, load your materials and your ready to go Marketing machine Imagine sending home buyers weekly listings, sending customers service reminders, reminding patients or customers of appointments, informing customers and prospects about new products, and more. Whatever your business, this system opens up so many opportunities that it pays for itself. Ideal for: • Corporate departments • Lawyers • Auto Dealerships • Accountants • Medical Offices • Municipalities • Education • Insurance Offices • Banks • Real Estate Agencies a' Automatically folds and inserts up to two letter or legal sized sheets into a #10 envelope n 7F Pitney Bowes t' 0 , 7 I'M 5 „r; 1 F <sl -t t ,ark: Specifications Functional Specifications Insert /fold setting Programmable for fold /insert or fold only modes Convenience sheet feeder Up to 3 sheets of 20 lb. Paper (even stapled sheets) can be hand fed from this feeder Envelope feeder Envelopes can be loaded while machine is running Fold capabilities "C" fold for 8.5" X 11" material, and double- parallel fold for 8.5" X 14" Sealing Selectable seal or no seal modes Double document detection Resettable mail piece counter Prompts in English and Spanish Technical Specifications Physical dimensions Width: 17.3 in., Depth: 20.9 in., Height: 14.4 in. Height including second sheet feeder: 17.3 in., Weight: 38 lbs. Cycle speed Up to 15 pieces per minute Electrical 110 Vac: 60 hz: ULApproved Material specifications Paper Weight: 20 -24 lb. Paper Size: Letter: 8.5" x 11 Legal: 8.5" x 14" Envelope Size: #10 only For more information call 1 800 322 8000 or visit us online: www.pb.com World Headquarters 1 Elmcroft Road Stamford, CT 06926 -0700 02002 Pitney Bowes Inc. All Rights Reserved An Equal Opportunity Employer. Printed in U.S.A. AD11500 R1009 RECYCLE X•dsour� PLEASED «.ao vsc ...,,......,.. Pitney Bowes DI200TM Mailer Application Agreement Thank you for your interest in the Pitney Bowes D1200 Mailer. By automating the folding, inserting, and sealing of your mail pieces, the D1200 Mailer provides a convenient alternative to manual mail processing that can save time, lower costs, and allow you to use mailings more effectively. To help ensure your complete satisfaction, please take a few moments to review the following information about the D1200 Mailer: J##*SAN A, Envelopes: The D1200 Mailer inserts mail into standard V10" envelopes. These envelopes are widely available, but must meet the following specifications: Width: 9 V (241 mm) Height: 4 1 /s" (105mm) Flap Length: 1 %" (32mm) Minimum 1 13/16" (46mm) Maximum (Parallel Flap) 2 %" (57.2mm) Maximum (Executive Flap) Please note that self - sealing and other non - standard envelopes are not compatible with the system. Paper: The D1200TM Mailer will fold and insert the most common paper sizes and weights: Sizes: 8 %" x 11" (Letter) or 8 V x 14" (Legal) Only Weight: 20 —24 Ib. (75 — 90 gsm) Inserts: Systems equipped with an insert feeder can process Business Reply Cards, return envelopes, folded sheets, or other inserts that meet the following specifications: Width: 5" (127mm) Minimum to 8 7 /8" (225mm) Maximum Height: 3 3/8" (86mm) Minimum to 4 %" (114mm) Maximum Weight: 20 lb (75gsm) Minimum to 53 lb. (200gsm) Maximum Installation: Professional installation and training are included with your D1200 Mailer by a Customer Service Representative. I have read this above. Customer Signature: rm that my use of the D1200 Mailer will be consistent with-the material specifications listed Date: Customer Name: Title: