MEMORANDUM

TO: Pete Sprague, Assembly President

Assembly Members

THRU: Mayor Bagley

THRU: Scott Holt, Finance Director

Mark Fowler, Purchasing Manager

FROM: Richard Campbell, General Services Director

DATE: December 4, 2003

SUBJECT: An Ordinance Appropriating Funds From The Equipment Replacement Fund To Purchase A New Folder/Stuffer Mailing System

The current folder/stuffer mailing system in the copy/mail center is over five years old and has processed close to three million envelopes and inserts. It recently broke down and required extensive and lengthy repairs. Replacement parts needed for the continued operation of this machine are no longer manufactured. It currently works at a much slower pace than needed, and is rapidly approaching the end of its service life.

Because this system is used for high-volume, time-critical mailings such as assessment notices and tax bills, it is critical that the borough have a reliable unit in place quickly. Pitney Bowes has offered the borough a new system for $26,496, including the first year's maintenance and a trade-in allowance for the existing system. This is more than $9,000 less than the retail price for the equipment. The borough's best interests would be served by purchasing this item from Pitney Bowes. The borough's experience with Pitney Bowes supports the conclusion that their systems are reliable and service is very responsive. For these reasons, and in accordance with KPB 5.28.280(B), the general services division respectfully requests authority to make this purchase on a sole source basis. The administration also requests a shortened hearing so that the equipment can be in place for mailing the assessment notices at the end of February 2004.