HomeMy WebLinkAboutCC AG PKT 2002-12-09 #D v
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AGENDA REPORT ° ��
DATE: December 9, 2002
TO: Honorable Mayor and City Council
THRU: John B. Bahorski, City Manager
FROM: Pamela Arends -King
SUBJECT: Folder/Inserter Mailing System Lease Agreement
SUMMARY OF REQUEST:
Staff requests Council approve a 60 -month lease agreement for a mailing machine that
folds and inserts documents with PFE International Inc., and authorize City Manager to
execute the agreement and approve budget amendment 03 -14 for FY 2002/03 and
approve budget amendment 04 -02 for FY 2003/04.
BACKGROUND:
Currently the City is using a mailing machine that is over seven years old and has served
its useful life. The cost of maintaining the machine is almost equivalent to the monthly
lease cost of a new mailing machine. The monthly cost to maintain the machine is $236
and the monthly lease payment is $279. The new lease with PFE International Inc. is for
60- months. During the lease agreement the City has the option to upgrade or exchange
the equipment to current technology and at the end of the lease the City may continue to
lease the equipment.
FISCAL IMPACT:
The implementation of the new lease agreement will increase general fund expenditures
for FY 2002/03 $344 and for FY 2003/04 $516. Approval of the FY 2002/03 budget
amendment will decrease the estimated fiscal year ending undesignated general fund
balance for FY 2002/03 by $344 from $4,646,013 to $4,645,669. Approval of the FY
2003/04 budget amendment will decrease the estimated fiscal year ending undesignated
general fund balance for FY 2003/04 by $516 from $4,434,903 to $4,434,387.
Agenda Item
1
December 9, 2002
Folder /Inserter Mailing System Lease Agreement
RECOMMENDATION:
Staff recommends Council approve the 60 -month lease agreement for a mailing machine
that folds and inserts documents with PFE International Inc., and authorizes the City
Manager to execute the agreement. Staff also recommends Council approve Budget
Amendments 03 -14 for FY 2002/03 and 04 -02 for FY 2003/04.
a di dt e■P€ G
Pamela Arends-King
Director of Administrative Services/Treasurer
1
John : ahorski
Cit anager