HomeMy WebLinkAboutAGENDA REPORT 1991 1016 CC REG ITEM 08S ITEM S. s•
°P o1D MOORPARK
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•AO799 Moorpark Avenue Moorpark, California 93021 (805) 529-6864
ORPARK, CALIFORNIA
City Council Meeting
of /0/I L MEMORANDUMD U M ACTION: 07904,a/eel
TO: The Honorable City Council
FROM: Donald P. Reynolds Jr. , Management Analyst
DATE: October 8, 1991
SUBJECT: Consider City Rental of Pitney Bowes Plain Paper
Facsimile (FAX) Machine
Research has been conducted to identify a plain paper facsimile
machine for purchase by the City of Moorpark, and after considering
several different machines, staff has concluded that at this time,
a rental of a device is the best option. The following report
requests that the Council consider transferring $2,100 of the
original $4,000 appropriation for the purchase of a plain paper FAX
from account 01.4 . 117.905, to account 01 .4 .117.661 , (equipment
rental) and allow staff to proceed in entering into agreement for
the rental of this device.
Discussion
The City can rent the Pitney Bowes FAX machine for $170/month
including service. Some minor changes have to be made to the
rental agreement, but otherwise, this option seems to be the best
for the City at this time. The Pitney Bowes Model 9500 is common
to the County of Los Angeles, the City of Los Angeles, and was
recently rented by the City of Malibu.
Research Conclusions
Staff considered over ten different models of plain paper FAX
machines, and had on site demonstrations of three of these models.
The difference between the three models is quite significant,
although the purchase price is similar, (between $3 ,500 and $4 , 250
to purchase a machine with a warranty period spanning from 90 days
to one year, and a service agreement of approximately $450 per
year) . Essentially, a plain paper FAX machine is a laser jet or
ink jet printer with a phone modem. From this standard, staff
compared specifications which evaluated user friendliness,
features, customer support and training.
Staff's choice between the three FAX models demonstrated at City
Hall was the Pitney Bowes device, Model 9500 . It excelled in terms
of user friendliness combined with the technological advancements
needed by staff, (please refer to the specifications shown in
PAUL W. LAWRASON JR. BERNARDO M. PEREZ SCOTT MONTGOMERY ROY E. TALLEY JR. JOHN E. WOZNIAK
Mayor Mayor Pro Tem Councilmember Councilmember Councilmember
Attachment "A") . It also excelled in terms of customer support.
This was the only device considered where service and training are
available through "remote diagnostics. " During a FAX transmission,
if the user has a problem, Pitney Bowes can be accessed on a
separate phone line, use the FAX phone line to diagnose the steps
taken in the transaction thus far, and change the procedures in the
FAX programming while explaining to the user what they are doing
and why.
Rental versus Purchase
Several advantages exist for the City if a rental agreement is
executed, rather than a lease or purchase option. Maintaining
flexibility without investing in a fixed asset is the primary
advantage. It is anticipated that staff will have the most
advanced technology in this field, at a comparable cost to
purchasing a device, without being locked into a certain piece of
equipment. The rental payments are fixed for the life of the
agreement, and service is included in this cost.
For the remainder of this fiscal year, the City would pay $1,750 to
rent the machine, (from November 1 , 1990 to June 30, 1991, plus a
one time charge of $309 to deliver and install it) . Over a three
year period, $6 ,429 would be the City's cost. If the City
purchases the machine, an investment of $4,950 would be made this
fiscal year, (including the service costs of $450 added each 12
months after the 90 day warranty expires) , with no opportunity to
upgrade the equipment, other than buying a new device. At the end
of a rental agreement, the City can pursue the following options
which would not be available if the City purchased a device this
year: quit the agreement and consider other vendors; purchase the
device for its current market value, or; upgrade to a newer device
by modifying the existing agreement. The rental option has its best
advantages if the City upgrades to a new Pitney Bowes machine
within 24 months, (a 24 month rental investment would cost $4, 389) ,
and the cost of the upgrade is comparable to the proposed rental
rate.
Upgrades may be considered through Pitney Bowes at any time during
the agreement. This includes an upgrade to the existing product,
(such as additional memory for the document scanner) , or a change
to a completely different machine. Upgrades with a different
vender can be established as part of the agreement to occur at the
end of each 12 month cycle, ( "annual outs" ) . Technology is
changing quickly, and an upgrade is very likely to be considered
before three years has ended, at close to the same price with more
options.
In the event that the City cannot budget funds for the continuation
of the rental, an "escape" clause can be negotiated with a notice
period of between 30 and 90 days. This clause is common to
government contracts. The precise details of the time frames have
2
not been negotiated by staff .
Please find attached a copy of the specifications for the Pitney
Bowes 9500, (Attachment "A") , and a second attachment which is a
copy of an unmodified (draft) rental agreement, (Attachment "B" )
for the Council's consideration. Staff has met with Pitney Bowes
to discuss potential modifications to the agreement, and they are
able to make changes and accommodate the City's needs which include
but are not limited to; deletion of "paper" as listed on page one,
and inclusion of an "Escape Clause" for the City in case of budget
constraints in future years, and; "annual outs" providing a yearly
option to drop the agreement for other reasons.
Recommendation
That the Council authorize the transfer of $2,100 from account
01.4 .117.905 to account number 01.4. 117.661 for the rental of a
plain paper facsimile machine, and allow the City Manager to modify
as needed and execute an agreement with Pitney Bowes for a three
year rental of a Pitney Bowes 9500 facsimile machine.
Attachments: A) Pitney Bowes 9500 Facsimile Machine
Specifications;
B) Draft Rental Agreement.
3
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ATTACHMENT A
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• ATTACHMENT B
r PitPitney Bowes AGREEMENT NO. DATE PREPARED
ney C i0 �7 FACSIMILE RENTAL AGREEMENT 1
Stamford, CT 06926-0790 R 2 4 2 5 7
CUSTOMER (BILL TO❑) INSTALL AT(IF DIFFERENT MULTIPLE LOCATIONS ATTACH LIST)
NAME NAME
ADDRESS ADDRESS
CITY/STATE/ZIP CITY/STATE/ZIP
•
CUSTOMER ACCOUNT NO. UNIT NUMBER DISTRICT NAME DISTRICT NO.
PARENT COMPANY
PURCHASE ORDER NUMBER TAXEXEMPT EXEMPT CERTIFICATE ATTACHED TAX EXEMPTION NUMBER
OYES ONO OYES ONO
EQUIPMENT MONTHLY DELIVERY STARTER
RENTAL PRICE . INSTALLATION . KIT PAPER PRICE PLAN DESCRIPTION
QUANTITY - PRODUCT CODE PER UNIT CHARGE _ CHARGE
_. (BILLEDQUARTERLY). PER UNIT PER UNIT -
-. $150 ' $20 $120 •
, ..
_
..
.. . t
SIC CODE EMPLOYEE CODE," SALES REPRESENTATIVE NAME - SALES REP- NO
MASTER CONTRACT NUMBER CONTRACT PREVIOUS CONTRACT NUMBER . -: _ ,
f "'r.. , " ,. ,-- ❑ NEW" -,❑ UPGRADE _ - SPLIT OYES ONO
TERMS`AND CONDITIONS
Therental period shall commence on the installation date of each'machine.t7, ,PRICE PROTECTION: - '"" '
and shall continue for a minimum rental period of , `months i; :;The.Company may.change prices and terns and conditions at any time;
' " '" effective.on the last day of the-then current rental period,.upon at lean
Pitney:Bowes(nc.`(the Company),agreesto furnish and Custo1ner sprees to . 30 daysprior written notice to the Customer.If the Customer does not wish
accept,and pay for the services of the Equipment specified above to be ,r..to continuethis Agreement under the changed prices,terms and conditions
' installeclif the above address;subject to the terms and conditions contained
`hereinandon the reverse side. - e ',specified in the Company's notification, Customer may cancel this Agree-
_„ ._ - .. _. : l' -' oam effective as of.last day of the then current period:by sending written
t notice to theCompany within 10 days from receipt of notification of such
Thitomer and•Agreement-shall constitute'.thet describedche emenr bptween, change . __ •
Customer the Company for the Equipment herein;irrespective _ -
of inconsistent or additional terms and conditions in the Customer's pur- - -- - - • -
chase"orders,or other documents submitted by Customer to the Company. BILLING:
Customeriacknowledges .the responsibility for'providing suitable ern, Customer will be billed in advance for the quarterly rentals. The rental
facilities and utilities for operation oftheEquipment;for the payment of charge for the quarter in which the machine is Installed will be prorated. In-
t voice terms net,payable upon receipt of invoice. Seller reserves the right to
charges for the placement, removal for the Equipment and accessories cancel this Agreement should invoices became past due. Billing date will be
ordered herein, in accordance with terms end conditions set forth,in the the date of installation of the equipment or fifteen 115)days after shipment,
Company published price list in effect as of date of placement or removal, whichever is first.
-as applicable. Customer agrees to have installed all equipment listed above -
within 90 days of this agreement`" - - -
SUPPLIES/ACCESSORIES:
Equipment remains the property of the Company, and is subject to its Supplies (except Starter-Kit) will be purchased separately by the Customer
-possession and control. The Company may provide either new or recon- and are not included in this Agreement. Accessories will be supplied as
ditioned equipment at its sole option. - needed at regular use charges.
This Agreement is not assignable. Any attempt to transfer by any means OTHER CHARGES: -any of the rights,duties,or obligations of this Agreement is void- The Customer agrees to pay an installation fee as listed above for each unit
installed and/or relocated,a freight charge from the shipping point,for each
CONTRACT ADDENDA: OYES ONO; No modification of this agree- machine shipped, or relocated, and a pickup charge at the time of rental
ment shall be effective unless executed in writing and signed by the Facsimile termination.These charges will be prepaid by Seller and added to Customer's
Contract Administrator in the Pitney Bowes Home Office. rental billing. .
ACCEPTED BY CUSTOMER -
AUTHORIZED SIGNATURE DATE PRINT NAME &TITLE OF SIGNER
•
SALES REPRESENTATIVES SIGNATURE - DISTRICT MANAGER SIGNATURE
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-- -- - - - - _.__ -
CRC
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OFPitney Bowes AGREEMENT NO. DATE PREPARED
Stamford, CT 06926-0790 FACSIMILE RENTAL AGREEMENT R 18 3 6 5 8 ho j i 7 f q
CUSTOMER SKILL TO Di INSTALL.AT(iF DIFFERENT MULTIPLE LOCATIONS ATTACH LIST)
NAME NAME •
f �/7y v,-- �d.0,4p4,eh' er i✓i4 5 A rn e
ADDRESS ADD —
99Oe ,cam Ate . Ia 1 415 ,
CITY/STATE/ZIP CiTY TATE/ IP ,p
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CUSTOMER ACCOUNT NO. UNIT NUMBER DISTRICT NAMEDIST ICT NO.
.4os .4,,1 �
cs I /92
PARENT COMPANY
PURCHASE ORDER NUMBER TAXD5 4'T EXEMPT CERTIFICATE ATTACHED TAX EXEMPTION NUMEER
DYE&K(+iO DYES AO
EQUIPMENT MONTHLY DELIVERY STARTER
T RENTAL PRICE INSTALLATION KIT PAPER PRICE PLAN DESCRIPTION
QUANTITY PRODUCT CODE PER UNIT CHARGE CHARGE
'CULLED OUARTERLY) PER UNIT . PER UNIT
926. S
/ 9.5-0 0 _ / SU /s21' � afors.•
4987/47`4'4- ��- //t/c�uios ��J -e .07 -rYl,p_.�' UPG,c 4DD:
- ,, �-, 11,D t.i'l e *l.,s k4-(s, c(A c !
SIC CODE EMPLOYEE CODE (SALES REPRESENTATIVE NAME SALES REP.NO.
62,4i'y f.(2,4.1 44'/ 9z 92 s
MASTER CONTRACT NUMBER CONTRACT: PREVIOUS CONTRACT NUMBER
, NEW 0 UPGRADE SPLiT DYES�to
TERMS ANO CONDITIONS - - - •
The rental period chat) commence on the insrtallatian d to of each machine PRICE PROTECTION:
and shall continue for a minimum rental period of . months. The Company rney•Mange Priers and terms and conditions at any time,
Pitney Bowes inc. (the COmpanyl, agree to furnish end Customer agrees to effective on the fast day of the then current rental period, upon at least
accept and pay for the services of the Equipment specified above to be days30 tprior sus Agreementitten notice to the Customer.If the Customer does not wish
to aorrunue this Under the changed prices,terms and conditions
installed at the above address,subject to the terms and conditions contained Webbed in the Company's notification, Customer may Cantel this Agree-
herein and on the reverse side, • mint effective as of last day of the then current period by sending written
This Rental Agreement shalt constitute the entire Agreement between notice to the Company wlthrn 10 days from receipt of notification of such
Customer and the Company for the Equipment described herein,irrespective change
of inconsistent or additional terms and conditions in the Customer', pur-
chase orders, or other documents submitted by Customer to the Company. 81LLthiG:
Customer acknowledges the responsibility for providing suitable space, Customer will be breed in advance for the quarterly rentals. The rental
In-
facilities and utilities for operation of the Equipment, for the payment of voicecharo for the quarter in which the machine a installed will be prorated.for the placement, ratnoval for the Equipment y terms net,payable upon receipt of invoice,Seller reserves the fight to
chargespi qu pment and epees ries cancel this Agreement should invoices become past due. Billing date will be
Ordered herein, In accordance with terms end conditions set forth in the the date of installation of the equipment or fifteen (15)days atter shipment,
Company published price list in effect ea of date of placement or removal. whichever is first. •
es applicable. Customer egress to have installed all equipment listed above
within 90 days of.this agreement. SUPPLIES/ACCESSORIES-
Equipment remains the property of the Company, and is subject to Its Supplies (except Starter-Kit) will be purchased separately by the Customer
possession and control. The Company may provide either new or recon- end ere not included in this Agreement. Accessories will be supplied as
dimmed equipment at its sale option, needed at regular use charges. . .
This Agreement is not assignable. Any attempt to transfer by any means OTHER CHARGES:
any Of the rights,duties,or obligations of this Agreement is void. The Customer elgrees to pay an Installation fie as listed above for each unit
installed and/or relocated,a freight charge from the shipping point,for each
CONTRACT ADDENDA: ES ONO; No modification of this agree- machine shipped.or relocated, end a pickup charge at the time of rental
Gwent shall bit effective stillss executed in writing and signed by the Facsimile termination.These charges will be prepaid by Seller and added to Customer's
Contract Administrator in the Pitney Bowes Home Office. rental baling.
_ ACCEPTED BY CUSTOMER
4VTHORIZED SIGNATURE DATE PRINT NAME &TITLE bF SIGNER
_.,4...e.64w.F^iL /l/f``'``.r"7' , //AA/.l //y1 S7EirE U A/4J ,v i/ , c i r y `Y1 A/t''/f G /r
;ALES REPRESENTATIVES SIGNATURE DISTRICT MANAGER SIGNATURE
idea OCT 87
91-105
•
CONTRACT CONTINUATION: - aforesaid, and renewa: or extension in time of payment shall not
Unless cancelled at the end of the initial period by 30 days written . release the Customer "cm any one or more of the terms of this
notice, the Agreement shall be renewed for successive annual Agreement. The Customer will insure the Equipment covered by
periods at the prices, :elms and conditions in effect at the time of this Agreement for :; ,aue for the benefit of the Company.
renewal.
STATE AND LOC -AXES:
MAINTENANCE AND WARRANTY: There may be adcec ro the charges specified herein amounts equal
The Company shall provide maintenance service without addition- to any taxes, however .esignated, levied or based on such charges
al charge during the Company's normal business hours. For main- or on this Agreement, or the service, or the Equipment or its use
tenance at the Customer's request outside of the Company's including state and local privilege or excise taxes based on gross
normal business hours, service time and travel expense will be revenue, and any taxes or amounts in lieu thereof paid or payable
charged at the Company's established rates in effect at the time by the Company in respect of the foregoing, exclusive, however,
of request of service. of taxes based on net income and personal property. n
The Company warrants that its Equipment and supplies will be of ADVANCE PAYMENT: DQ.L D— Y� 4ry livIA
merchantable quality and free of defects in material and workman- Th- Company may, at its soie option, require the Cystomer to
shin, and the Company shall, replace supplies and repair or replace - - - make an .. .ice payment. Such payment it •ear interest,
Equipment which it finds to be defective under this warranty. and, provided the . -"'r shall hay- t.'i all invoices in accor-
- .dance with their terms, the a• r - - •.yment will be returned to
EQUIPMENT: • _ - • - _ -theCustomer•ducting_• - - th month o • Major!. Otherwise,
.The Company willhave theoptionto supplythe Customer with — - -
,the payment may e Company's sole option, ...lied only
_either new or reconditioned equipment. - - -- =to the Custo • - s final payment period, or in the case of termina-
:The Company will assume the obligation stated in this Agreement tion/def.. by the Customer, toward any unpaid amounts due
•only if the Customer operates our equipment under suitable the C•mpany.
:temperature, humidity, line voltage, telephone attachment, and DEFAULT/REMEDY: •
•any specified environment conditions.
If the Customer defaults as to any obligation to return the Equip-
.THE WARRANTY IS THE ONLY WARRANTY APPLICABLE ment or fails to pay any amounts due hereunder or defaults with
TO THE EQUIPMENT AND IS EXPRESSEDLY IN LIEU OF respect to any stated terms and conditions of this Agreement, the
ALL WARRANTIES EXPRESSED OR IMPLIED, INCLUDING --- Company, in addition to other remedies, may cancel this Agree-
ANY WARRANTY OF FITNESS FOR A PARTICULAR PUR- ment, and repossess the Equipment without notice, and the Cus-
POSE. IN NO EVENT SHALL- COMPANY- BE RESPONSIBLE- - . tomer agrees to pay accrued rental up to date of repossession, all
FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULT- - costs and expenses of collection. and/or -repossession, including
INC FROM THE USE OR PERFORMANCE OF THE EQUIP- reasonable attorney's fee permitted by law.
•
MENTOR DEFECTS IN SUPPLIES. - . - - -- - - -
ALTERATIONS AND ATTACHMENTS: - -
CUSTOMER OBLIGATIONS --- --- - -- ---- -- -------- -__. Alterations_or attachments to the.Equipment_(including, but_not
The Customer shall: Immediately notify the Company when limited to, attachments by electrical or mechanical connection or
service or preventive maintenance of the Equipment is required by juxtaposition) shall not be made without the prior written
and provide full and freee-access for inspecting or servicing the approval of the Company. If, in the Company's opinion,an alter-
Equipment during the Company's normal business hours -. Prion or attachment interferes with .the normal operation or
. - _ . • - - maintenance of the Equipment in a way that creates a safety
Provide a separate ANALOG telephone line for the equipment.;-- - - hazard or substantially increases the cost of maintaining it;.the
Customer upon notice to that effect from .the Company will
Only use supplies which meet the Company specifications and promptly remove the alteration or attachment and restore,the
agree to discontinue use upon written notice from the Company Equipment to its normal condition.
of any supplies which are found to increase cost of maintenance •
•
or cause damage to the Equipment ACCEPTANCE: - -
'flake available a key operator or machine operator,as the case may Execution of this Agreement is required prior to shipmentof the
oe, for training in the use of the Equipment, should this assign- Equipment or conversion from one plan to another.
•
ment change, the Customer shall inform the Company immediately This Agreement is intended by the parties as an agreement to rent
Pay for any repairs or replacements made necessary by the Custom- and not to sell, conditionally or otherwise, the Equipment. This
er's willful or negligent acts, and Agreement supersedes any contract or. agreement of prior date
between the Customer and the Company, and is subject to final
Permit the Company to remove Equipment upon termination. acceptance by the Company at its Home Office, Stamford, CT.
Po Customer will not without Company's prior written consent,
OVISION AS TO USE: assign, pledge, sublet or bail the Equipment. Installation of the
Customer agrees to use reasonable care in the handling and opera- Equipment does not constitute acceptance by the Company;
-ion of the Equipment. The Equipment shall at all times be kept by the Customer acknowledges receipt of a copy of this Agreement,
Customer at place of business listed hereunder, and not elsewhere and agrees that acceptance by the Company is to be shown by its
without the written consent of the Company. first invoice.
RISK OF LOSS:
Tne risk of loss, injury or destruction of the Equipment as well as A copy of this Agreement may be filed with appropriate state
damage to property and injury to persons from any cause whatso- authorities at any time by the Company for informational purposes
or as a financing statement in order to protect the security interest
ever, at all times after its delivery, is hereby assumed by the Cusr hereby granted in the Equipment to the Company in the event this
curer, and such loss, injury or destruction shall not in any manner rental agreement is determined to be a conditional sales agreement.
re:ease the Customer from the obligation to make the payments -
DRAFT ADDENDUM TO
PITNEY BOWES FACSIMILE RENTAL AGREEMENT
NUMBER 183658
I. "ANNUAL OUTS"
A) The Price Plan Description as referenced in the Agreement
is herein described as an "Annual Out" provision which permits the
Customer to terminate this Agreement prior to the end of the 36
month anniversary date on any prior anniversary date of the
Agreement for any reason whatsoever, as long as the Customer
provides a 15 day written prior notice of the planned cancellation
to the Company. In the event of termination under the provisions
of this "Annual Out" clause, Customer shall, at its own expense,,
return the Equipment to the Company within 15 days of the
Anniversary date, at the nearest Pitney Bowes Distribution Center.
B) Any cancellation of the Agreement made pursuant to this
provision, shall be made without penalty to the Customer. Customer
shall not be required to make any advance payments for the rental
of equipment beyond this date if written notice is provided to the
Company as described above, and amounts paid in advance for a
specified period of the rental period to occur after the subject
anniversary date, shall be refunded to the Customer by the Company
within 30 days of the termination of this Agreement.
II. "BILLING:"
A) The term "Past Due" used within the "BILLING" section of
the referenced Agreement shall be defined for the purposes of this
Agreement as follows: 30 days past Customer receipt of the Company
invoice.
III. "ADVANCE PAYMENT:"
A) This section of the referenced Agreement is hereby
delete!€" and deemed not applicable to the Customer.
IV. NON-APPROPRIATION OF FUNDS
A) In the event that no funds or insufficient funds are
appropriated by Customer's governing body or are otherwise legally
available by any means whatsoever in any fiscal period for the
payment of Rent due under this Agreement during such fiscal period,
this Agreement shall terminate on the last day of the fiscal period
for which appropriations were received, without penalty or expense
to the Customer of any kind whatsoever, except with respect to the
portions of Rent for which funds shall have been appropriated or
are otherwise legally available. Customer shall notify the Company
of a non-appropriation within ten days of its occurrence. In the
event of termination for non-appropriation, Customer shall, at its
own expense, immediately return the Equipment to the Company at the
nearest Pitney Bowes Distribution Center.
B) Notwithstanding the foregoing, Customer shall not cancel
this Agreement pursuant to this Addendum if any funds are
appropriated to it, or by it, for the acquisition, retention, or
operation of the Equipment or other equipment performing functions
similar to the Equipment for the fiscal period in which termination
occurs or the next succeeding fiscal period thereafter.
Furthermore, Customer will not during the Rental Term give priority
in the application of funds to any other functionally similar
equipment. This Addendum will not be construed to permit Customer
to terminate this Agreement for the purpose, directly or
indirectly, of replacing the Equipment with any other equipment,
services or contractual arrangements which will perform
substantially the same function as performed by the Equipment.