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11-15-2013 BPU RPT 07
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11-15-2013 BPU AGENDA
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W A E R E N E R G Y f i. <br /> -- RIVERSIDE PUBLIC UTILITIES <br /> Board Memorandum <br /> PUBLIC UTILITIES <br /> BOARD OF PUBLIC UTILITIES DATE: November 15, 2013 <br /> ITEM NO: 7 <br /> SUBJECT: PURCHASE OF REPLACEMENT BILL INSERTER MACHINE IN ACCORDANCE <br /> WITH PURCHASING RESOLUTION 22576, SECTION 201 (F) <br /> ISSUE: <br /> The item for Board of Public Utilities consideration is approval to purchase a replacement bill inserter <br /> machine at a cost of$153,475 in accordance with Purchasing Resolution 22576, Section 201 (f). <br /> RECOMMENDATION: <br /> That the Board of Public Utilities approve the purchase of a replacement bill inserter machine for <br /> $153,475 and the annual maintenance agreement for $11,933 in accordance with Purchasing Resolution <br /> 22576, Section 201 (f). <br /> BACKGROUND: <br /> The Pitney Bowes DM10 Series Inserter currently being used by Riverside Public Utilities (RPU) was <br /> installed on June 3, 2002. This machine is used for all utility bills and any other required City mailings. <br /> Since its initial installation, approximately 20 million documents have been run through this inserter. <br /> Pitney Bowes, RPU's current contracted vendor, notified the City that the operating system for the DM 10 <br /> Series Inserter will no longer be supported. Should the system fail, Pitney Bowes will not be able to <br /> restore the equipment. If the bill inserter is inoperable, it could significantly impact cash flows for the City <br /> as the mailing of utility bills would be delayed. Therefore, the bill inserter needs to be replaced. <br /> Purchasing Resolution 22576, Section 201 (f), states that competitive procurement shall not be required <br /> when cooperative purchasing is available. Pitney Bowes' mailing equipment, supplies and maintenance <br /> is available under a master price agreement with WDCA-NASPO Cooperative Purchasing. LLC through <br /> October 11, 2014. <br /> FISCAL IMPACT: <br /> The total cost for the replacement inserter is $153,475 plus the annual maintenance agreement costing <br /> $11,933. Sufficient funds are available in the Office Furniture & Equipment Account (Account No. <br /> 6004000-462300) for the purchase of the inserter and the Professional Services Account (Account No. <br /> 6004000-421000) for the annual maintenance agreement. Annual costs of maintenance are shared <br /> amongst all City/RPU Divisions that are included on the utility bill. <br /> Prepared by: Laura M. Chavez-Nomura, Public Utilities Assistant General Manager/Finance <br /> Approved by: Stephen H. Badgett, Interim Public Utilities General Manager <br /> Approved by: Belinda J. Graham, Assistant City Manager <br /> Approved as to form: Gregory P. Priamos, City Attorney <br /> Concurs with: Art Torres, Purchasing Services Manager <br />
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