REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  March  28, 2017
CATEGORY:  Consent - Health and Human Services-7.

SUBJECT:

Pitney Bowes Postage Meter Lease Agreement

Supervisorial District No. :  3

DEPARTMENT CONTACT:  Melissa Janulewicz, Branch Director, HHSA Regional Services, (530) 225-5450

STAFF REPORT APPROVED BY:  Melissa Janulewicz, Branch Director, HHSA Regional Services

RECOMMENDATION

Take the following actions:  (1) Approve and authorize the Chairman to sign an evergreen equipment lease and maintenance agreement in an amount not to exceed $200 per quarter with Pitney Bowes, Inc. to replace the current Postage Meter with a new one for the Health and Human Services Agency (HHSA)-Regional Services Branch–Burney Office for an initial term of five years effective April 1, 2017; and (2) authorize the HHSA Director, or Branch Director as authorized by the Director, to exercise any option set forth in Section L6 of the Western States Contracting Alliance Master Agreement with Pitney Bowes so long as the chosen option otherwise complies with Administrative Policy 6-101, Shasta County Contracts Manual and/or Shasta County Code 3.04, Purchasing.  

SUMMARY

N/A

DISCUSSION

Since 2006, HHSA staff within Regional Services – Burney Office (Burney Office) have been using a Postage Meter leased by Pitney Bowes, Inc. (Pitney Bowes) for processing postage for mail. Pitney Bowes is phasing out the current Postage Meter, and is no longer supported, in favor for a new one which requires the HHSA to sign a new Lease.

The Lease provisions are currently tied to a cooperative agreement through National Association of State Procurement Officials (NASPO) with the State of Arizona (Contract No. ADSPO11 – 00000411) Master Price Agreement (Master Price Agreement) since December 23, 2011. The State of California entered in to a Participating Addendum (No. 7-12-70-26), which allows California to secure prices competitively procured. However, the Lease term is superseded by the Master Price Agreement’s termination language, which indicates if any subsequent lease is not in place after the term has ended, the Postage Meter pricing is subject to a month to month basis, which requires Board of Supervisors’ Approval as an ‘evergreen’ agreement.

ALTERNATIVES

The Board could choose not to approve the agreement. This is not recommended as the Burney Office sends out approximately 1,643 pieces of mail yearly, and the Postage Meter provides a cost saving of at least $0.03 a letter along with the ability to mail letters directly from the Burney Office without having to send staff to the post office to purchase stamps.

OTHER AGENCY INVOLVEMENT

County Counsel has approved the agreement as to form.  Risk Management has approved the agreement. County Purchasing assisted with the agreement.  County Information Technology has approved the agreement. This recommendation has been reviewed by the County Administrative Office.

FINANCING

Regional Services’ FY 2016-17 Adjusted Budget includes sufficient appropriation authority for the activities described in this agreement. No additional County General Funds are requested.