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2023-28 Quadient (postage & folding machines)MEMORANDUM DATE: 5/17/2023 TO: Jon McMillen, City Manager FROM: Laurie McGinley, Deputy City Clerk RE: Quadient Postage Mail and Folding Machine Lease 2023-2028 ta Qa�&a ( U.11:0KNIA Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name. Authority to execute this agreement is based upon: Jr L Approved by City Council on May 16, 2023 Consent 3 F-1_ City Manager's signing authority provided under the City's Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $50,000 or less. Department Director's or Manager's signing authority provided under the City's Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and $5,000, respectively, or less. Procurement Method (one must apply): ❑_ Bid F-1. RFP F-1 RFQ E_ 3 written informal bids QSole Source 0 Select Source Cooperative Procurement Reauestina department shall check and attach the items below as auurouriate: �✓ _ Agreement payment will be charged to Account No.: 101-1007-60661 ❑✓u Agreement term: Start Date 05/18/2023 End Date 10/13/2028 Fv L Amount of Agreement, Amendment, Change Order, etc.: $ 53720.40 + taxes (tbd) REMINDER; Signing authorities listed above are applicable on the aggregate Agreement amount, not individual Amendments or Change Orders! ❑✓ Insurance certificates as required by the Agreement for Risk Manager approval Approved by: Date: F-1_ Bonds (originals) as required by the Agreement (Performance, Payment, etc.) Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s) NOTE; Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form 700 is required pursuant FPPC regulation 18701(2) F-1_ Business License No. Expires: Fv l_ Requisition for a Purchase Order has been prepared (Agreements over $5,000) quad ent Leasing Government Product Lease Agreement with Postage Meter Rental Agreement Section (A) Office Information Office Number Office Name Phone # Date 2710 West District (909) 466-1655 04/24/2023 Section (B) Billing Information Company Name City of La Quinta DBA Billing Address 78495 CALLE TAMPICO City State Zip+4 LA QUINTA CA 92253-2839 Contact Name Laurie McGinley Phone (760) 777-7123 Contact Title Deputy City Clerk Fax Email Address Imcginley@laquintaca.gov PO # Section (C) Installation Information (if different from billing information) Company Name City of La Quinta Installation Address 78495 CALLE TAMPICO City State Zip+4 LA QUINTA CA 92253-2839 Contact Name Laurie McGinley Phone (760) 777-7123 Contact Title Deputy City Clerk Fax Email Address Imcginley@laquintaca.gov Main Post Office PO 5-Digit Zip Code Section (D) Products Qty Model / Part Number Description (include Serial Number, if applicable) 1 IXWP10 IX Series 10 lb Weighing Platform 1 IXDS7 Dynamic Weighing Platform for IX Series 7/7PRO Bases 1 DS641-INT3SE 3 Station Expert 2 Auto Fdr + Auto BREFdr + CIS Scanner + Multi License 1 ECERT-PROCESSING e-Certify Processing Fee (Used for Lease Renewals ONLY) 1 IX7 iX-7 Series Base w/ Mixed Size Feeder, Sealer, Drop Tray & Ink Cartridge 1 DT-ECERT1 KAS e-Certify Subscription - Level 2 (up to 1,000 a-Certs per year). Section (E) Lease Payment Information & Lease Payment Schedule Tax Status: Number of Monthly Payment Taxable Months (Plus applicable taxes) ❑ Tax Exempt First 60 $895.34 Certificate attached Billing Frequency: ❑ Monthly d❑ Quarterly ❑ Annually Billing Method: Current Lease Number: N19013396 ❑ Standard ❑ Arrears ❑ ACH (Customer to submit authorization form) Section (F) Postage Meter & Postage Funding Information Meter Model IX7AI Machine Model IX7 Postage Funding Method: Postage Funding Account: d❑ Bill Me ❑ Prepay by Check ❑d POC ❑ TMS ❑ ACH Debit (Submit customer authorization form) ❑ New ❑d Existing ❑ OMAS ❑ CPU (include authorization form) Existing Account Number: Agency Code Sub Agency Code 8029310 Service Products (Check all that apply) ❑�/ Online Postal Rates iMeterTm App (SP10) ❑ Online Postal Expense Manager iMeterTm App (SP20/NeoStats) ❑ Online E-Services with Electronic Return Receipt iMeterT App (SP35) NeoShip PLUS (EP70PLUS) ❑d NeoShip Install & User Guide (EP70GUIDES) ❑ 3GAG Cell Service ❑d Maintenance - Standard ❑J Installation/Training ❑ Software Support for premise (non -cloud) solutions Section (G) Approval Existing customers who currently fund the Postage account by ACH Debit will not be converted to the Postage Funding Account unless initial here This document consists of a Government Product Lease Agreement with Quadient Leasing USA, Inc.; and a Postage Meter Rental Agreement, Maintenance Agreement and an Online Services and Software Agreement with Quadient, Inc.; and a Postage Funding Account Agreement with Quadient Finance USA, Inc. Your signature constitutes an offer to enter into such agreements, and acknowledges that you have received, read, and agree to all applicable terms and conditions (version Government-Equipment-Lease- Terms-USPS-Direct-V9-2020), which are also available at www.quadient.com/Government-Equipment-Lease-Terms-USPS-Direct-V9-2020, and that you are authorized to sign the agreements on behalf of the customer identified above. The applicable agreements will become binding on the companies identified above only after an authorized individual accepts your offer by signing below, or when the equipment is shipped to you. Guided by Quadient, Inc.'s Sustainable Design and Responsible Manufacturing Policy, our Products may contain reused components. For more Information visit https://www.quadient.com/about-us/sustainable-design-and-manufacturing. ******* SEE PURCHASE ORDER ****** Authorized Signature Accepted by Quadient Inc. and its Affiliates Jon McMillen, City Manager 5/18/23 Print Name and Title Date Accepted _Ta May 25, 2023 Date Accepted Quadient Leasing USA Inc., 478 Wheelers Farms Rd, Milford CT 06461 [973 - 04124/23 16:26:19 - 23.4.4] Govemment-Equipment-Lease-Terms-Direct-USPS 49-2020 (PF) Customer Organization City of La Quinta DBA Address 78495 CALLE TAMPICO City State Zip LA QUINTA CA 92253-2839 Phone (760) 777-7123 Fax Purchase Order - Lease NASPO/ValuePoint Contract #: CTR058809 and / or State Participating Addendum (PA) #: 7-22-70-50-04 (CA) Vendor Ship To Company Name Quadient Leasing USA Inc. FEDERAL ID# 94-2984524 Organization City of La Quinta Attention Government Sales DUNS# 150836872 Attention Laurie McGinley Address 478 Wheelers Farms Rd Address 78495 CALLE TAMPICO City State Zip Milford I CT 1 06461 City State Zip LA QUINTA CA 92253-2839 Phone (866) 448-0045 Fax 1 (203) 301-2600 Phone (760) 777-7123 Email l Imcginley@laquintaca.gov P.O. Number P.O. Date Requisitioner Shipped Via F.O.B. Point Terms Ground Destination Quarterly Invoicing QTY Unit Description Unit Price Total 60 Months Lease Payment $895.34 $53,720.40 Lease payment specified above for products listed below includes, as applicable, reduced price equipment maintenance to reflect first year free, meter rental, meter resets, postal rate changes, software license/support/subscription fees, delivery, installation, and operator training Products QTY Product ID Description 1 IXWP10 IX Series 10 lb Weighing Platform 1 IXDS7 Dynamic Weighing Platform for IX Series 7/7PRO Bases 1 DS641-INT3SE 3 Station Expert 2 Auto Fdr + Auto BREFdr + CIS Scanner + Multi License 1 ECERT-PROCESSING e-Certify Processing Fee (Used for Lease Renewals ONLY) 1 IX7 iX-7 Series Base w/ Mixed Size Feeder, Sealer, Drop Tray & Ink Cartridge 1 DT-ECERT1 KAS e-Certify Subscription - Level 2 (up to 1,000 a-Certs per year). 1) This order is governed in accordance with the pricesAerrns, detTvay nWftod, and specifications listed above, and acknowledges that you have received, read, and agree to all applicable terms and conditions (version GovemmeM-EquipmenW�Terrns-LISPS-Direct-va-2020), which are also avaifa4le at www.quadient.comMovemment-Equipment- Lease-Terrns-U S P S-Di rest-V9-2020. 2) Paymenis will be sent to: Quadient Leasing USA Inc. Dept 3682 PO Box 123682 Dallas TX 75312-3682 3) Send all correspondence to; Quadient Leasing USA Inc. 478 Wheelers Farms Rd Milford CT 06461 Authorized Jon McMillen Print Name ATTEST: Monika Radeva, CityVIerk City of La Quinta, California APPROVE AS TO FORM Date City Manager Title William H. Ihrke, City Attorney City of La Quinta, California q u a id s-"e n t Leasing Hybrid Why Wait Program Addendum The Quadient Leasing Hybrid Why Wait window program entitles you to upgrade your Quadient equipment prior to the end of the term of your Current Lease's). Your new lease term will automatically commence and billing will begin after your Current Lease(s) have reached the end of the billing cycle outlined below. The Transition from your Current Lease to the New Lease will be seamless. By electing to participate in this program, you agree to the following: - You agree to continue making payments on lease number N19013396 through the date 10/12/2023. - The term of the new lease, being signed concurrently with this agreement ('New Lease'), will commence on 10/13/2023. The Products that are subject to the Current Lease will be replaced with the Products identified in the New Lease for the remainder of the Current Lease's Hybrid Why Wait window. - If a subscription to the Impress Platform is included on the New Lease, then any associated Usage Fees will be in addition to the payments on the Current Lease and the New Lease. - The replaced Products from the Current Lease must be returned to us within thirty (30) days of the effective date of this agreement. CITY OF UINTA By. Name: Jon en Title: City Manager, City of La Quinta Date: 5/18/2023 Quadient Leasing USA, Inc. By: A/W _Tait" Name: John Tartaro Title: Deputy CFO Date: May 25, 2023 ©2023 Quadient Leasing, Inc. ATTEST: Monika Radeva, City Jerk City of La Quinta, California APPROVE AS TO FORM: William H. Ihrke, City Attorney City of La Quinta, California Hybrid Why Wait Agreement V1-2023 ADDENDUM TO AGREEMENTS This Addendum to Agreements is by and between Quadient Leasing USA, Inc. ("Quadient Leasing"), Quadient, Inc. ("Quadient") and City of La Quinta ("Customer") with reference to the following: A. Quadient Leasing and Customer are entering into a Product Lease Agreement (the "Lease"), pursuant to which Quadient Leasing will lease products to Customer. M B. Concurrently herewith, Quadient and Customer are entering into an Online Services and Software Agreement (the "OSS Agreement") pursuant to which Quadient will make certain other services available to Customer. C. Any defined term used herein shall have the same meaning as in the Lease, or the OSS Agreement. In consideration of the mutual covenants contained herein, and in the Lease, and the OSS Agreement, the parties agree to amend the OSS Agreement as follows: 1. Section 2, titled "License Grant and Additional Terms" is hereby amended to add the following to the end of this section: "Your use of the Services is limited to the number of Electronic Certified Mail pieces (each an "eCert") indicated on the Order Form ("Annual Volume Limit"). In the event You exceed the Annual Volume in any year, You agree to pay an overage charge for each eCert used over the Annual Volume Limit as outlined below (the "Overage Charge"). The Overage Charge will be determined as a product of the number of eCerts You process in excess of the Annual Volume Limit multiplied by the Overage Charge associated with tier for the excess as set forth below:" Annual Volume Band I Overage W of eCerts) * Charge 1 - 500 $0.48 501-1,000 $0.43 1,001- 2,000 $0.41 2,001- 4,000 $0.30 4,001- 8,000 $0.28 8,000 - 16,000 $0.27 16,001- 32,000 $0.24 32,001- 64,000 $0.22 64,001 - 128,000 $0.20 128,001 - 200,000 $0.18 200,001 - 256,000 $0.17 256,001 - 384,000 $0.14 384,001 and above $0.12 * Volume bands renew annually 04/24/2023 eCertify Lease Addendum HPL The Lease, OSS Agreement, and this Addendum contain the complete understanding and agreement between the parties hereto, and supersede all representations, understandings or agreements prior to the execution thereof. Any changes or additions to the foregoing agreements will be valid only if they are in writing and signed by the appropriate parties. In the event of any conflict between the terms of the Lease, OSS Agreement, and this Addendum, the terms of this Addendum shall control. The parties have caused this Addendum to Agreements to be executed by their duly authorized representatives on the date set forth below. Customer: City of La Quinta By: Printed--116me: Jon McMillen Quadient Leasing USA, Inc. By: Printed Name: Title: City Manager, City of La Quinta Title: Date: 5/18/2023 ATTEST: Monika Rad6a, C,i Clerk City of La Quinta, California APPROVE AS TO FORM: William H. Ihrke, City Attorney City of La Quinta, California John Tartaro Deputy CFO Date: May 25, 2023 Quadient, Inc. By: Printed Name: John Tartaro Title: Deputy CFO Date: May 25, 2023 04/24/2023 eCertify Lease Addendum HPL • y� • r_� y • r�yEll Prepared for: City of La Quinta Financial Considerations NASPO ValuePoint State Contract Information Product Overview - iX-7 Series Mailing System, e-Certify Software, DS-64i Folder -Inserter USPS® IBI Equipment Decertification NASPO Agreement & Purchase Order Submitted to: Monika Radeva & Laurie McGinley Page 2 Page 3 Page 4-6 Page 7-8 Page 9-13 Prepared on: 03/23/2023 Prepared by: Travis Douroux I Government Account Executive I Direct: (951) 416-9461 1 t.douroux@quadient.com Financial Considerations Prepared for: City of La Quinta Current Equipment Equipment & Software • IN-700 Mailing System • DS-64i Folder Inserter • ConnectSuite e-Certify Software Postage Meter Indicia Standard Information -Based Indicia (Pending Decertification) Lease Term 63-Months Prepared: 3/23/2023 Lease Ends Payment 1/12/202S $945.00/mo. LISPS® IBI Decertification: Per USPS® mandate, postage equipment producing Information -Based Indicia (IBI) will become decertified on June 30, 2024 and must be withdrawn from service by December 31, 2024. https://public-inspection.federalreaister.aov/2020-26129.odf * The USPS® has approved extensions that postpone the withdrawal from service dates for all iSIIMIIN-4 Series; /S//M//N-6 Series; 1N-7 Series; ISIIMS00016000 and 1J-15/WJPPO. Equipment must be withdrawn from service by December 37, 2027) Early Lease Renewal • Eliminate 5 of the 7 remaining quarterly payments on the existing lease to expedite withdrawal of decertified equipment • Install new equipment immediately and transition to new lease automatically after 2 remaining quarterly payments on existing lease • Overview of remaining quarterly payments: (04/13/2023 - 07/12/2023) (07/13/2023 - 10/12/2023) Transition to New Lease Automatically on 10/13/2023 ^"12,42924) Eliminated with Early Renewal Q4141;�,/;2Q;2441 Eliminated with Early Renewal 9"'2,42 ^` Eliminated with Early Renewal '9;:,149,42924 49,449,42924' Eliminated with Early Renewal qg,/49,49994^"' Eliminated with Early Renewal New Equipment & Software • Upgrade to the latest technology with a new 1X-7 Series Mailing System ✓ Ensure USPS® compliance with new Intelligent Mail® Indicia and latest data and security management ✓ "Right Size" configuration to eliminate oversized 301b. Scale and Remote Label Printer ✓ Includes: Dynamic Weighing Module, 101b. Weighing Platform • New DS-64i Folder -Inserter configured like -for -like to existing equipment • ConnectSuite e-Ceritfy Software Subscription for up to 1,000 Certified Mail Pieces Per Year • State Cooperative Purchasing Contract (NASPO ValuePoint Contract # CTR058809 - California State Contract #7-22-70-50-04) Description 60-Month Lease Term Payment $976.16/mo. RTravis Douroux n (951) 416-9461 @ t rinurnux(c6rniadient corn CE quadient.com quad e n t * STATE OF CALIFORNIA REPUBLIC CALIFORNIA NASPO VALUEPOINT NASPO ValuePoint SUPPLIER PARTNER MAILING EQUIPMENT, SUPPLIES AND MAINTENANCE CONTRACT NASPO Master Agreement Details: ValuePoint Contract Number: CTROS8809 Website: NASPO VahipPnint / Quadient Contract Coverage: Contract start date January 1„ 2023 Contract expires May 14, 2024 with three optional years Vendor: Quadient, Inc. (Formerly Neopost USA Inc.) Vendor Website: htto1/www mail_auadipnt cnm/ Contact Information: Travis Douroux tdourouxaouadient com CA NASPO Contract Information: This NASPO ValuePoint contract may be used by all state agencies, institutions of higher education, political subdivisions and other entities authorized to use statewide contracts in the state of California. Statewide Term Contract: 7-?2-7n-50-04 (State of CA web page for all contracts) For more information regarding this contract, please visit the Quadient CA Contract oaae. How to Order: Customer provides a purchase order with the required product number. All purchase orders should be made out to: Quadient, Inc. 478 Wheelers Farms Rd. Milford, CT 06461 The purchase order must include CA Contract #7-22-70-50-04, NASPO Contract #CTRO58809, name, address, contact, and phone number. Benefits of State of California NASPO Contract for Mailing Equipment: ✓ Provides government mail facilities the best value via the NASPO/ValuePoint cooperative contract agreement to meet the needs and requirements for California mailing operations. ✓ Eliminates the time of going through the bidding process. ✓ Offers pre -negotiated terms that are in compliance with California state law. ✓ Provides the convenience of no protests. ✓ Delivers full solutions - not just products. RTravis Douroux n (951) 416-9461 @ tdouroux(cbauadient corn CE quadient.com quad e n t iX-7 Series Mailing System Dynamic. User -Focused. Durable. The iX-7 Series mailing system is a paramount addition to any business. Built to excel in the most demanding mail centers, the iX-7 Series is available with two different processing speeds and a variety of weighing and stacking options. LISPS® Based IMI Meter Weighing Platform Mixed Mail Feeder Ensure compliance with an Intelligent 10, 30 or 70 lb. platforms handle even the Process up to 140 Ipm (iX-7); Mail® Indicia (IMI). These meters meet heaviest parcels or oversized packages with ease the latest USPS requirements for data 175 Ipm (iX-7PRO) and security management Control Panel A large color touchscreen, intuitive 1 prompts, and shortcut keys make navigation and mail processing a breeze Envelope Sealer Dynamic Scale Catch Tray Automatic sealing with an easy -access Processes up to 75 Ipm (iX-7); From postcards to 10"x13" envelopes, this reservoir ensures a perfect envelope seal up to 110 Ipm (iX-7PRO) expandable tray holds a variety of items ✓ Intuitive user interface that includes a color touchscreen ✓ Reach productivity levels as high as 140 metered letters per and time -saving shortcut keys minute (75 in dynamic weighing mode) ✓ Meets the latest Intelligent Mail Indicia (IMI) and ✓ Safeguard your stored postage with PIN code access for Dimensional Weighing (DIM) LISPS@ requirements each of your operators ✓ Automatic feeding of postcards, letters or large envelopes ✓ Track pieces processed and postage used for 100 or more without sorting by mail piece size accounts/departments ✓ Dependable envelope sealing that secures the contents of ✓ LAN or wireless connection to refill postage instantly and your mail pieces update postal rates automatically ✓ In -line dynamic scale weighs, measures, classifies and rates mail pieces on the fly ✓ External scale auto -adjusts the postage amount for extra - thick envelopes or boxed packages ✓ Download artwork to print onto your mail pieces - use our free library or create your own ✓ Uploads postage usage data to your Myquadient online account for quick and easy analysis ✓ Integrated postage label dispenser for easy processing of ✓ Download postage anytime and pay for it later using bulky letters and large envelopes Quadient Postage Funding l l Travis Douroux n (951) 416-9461 @ t douroux(a)ouadient corn CE quadient.com quad e n t DS-64i Versatile. Intuitive. Productive. User -Friendly Mail Assembly The DS-64i folder inserter can accommodate a wide range of documents, inserts and business reply envelopes (BRE) making it the ideal choice for a variety of applications and office environments. The DS-64i combines unparalleled ease -of -use with advanced technology. The intuitive color touch screen control panel prompts the operator through each step of job setup and operation. Quadient Remote Assistance enables folder inserter diagnostics and operator support to increase mail assembly productivity. ✓ 7" color touchscreen control panel with graphical user guidance and wizard -based programming ✓ Up to 2 multi -format FlexFeeders that can transport full- size sheets as well as short inserts ✓ FlexFeed trays hold a 325-sheet stack and can be linked for non-stop cascade feeding ✓ Additional insert feeders are available with loading capacities of 50 or 325 reply envelopes ✓ Mechanical double document control ensures envelope contents are correct for every recipient ✓ Quick processing speeds up to 2,000 filled envelopes per hour (2,500 w/productivity pack) ✓ Store up to 50 user -programmed jobs and instantly recall any of them at the push of a button ✓ Tip -to -tip envelope sealing that can be turned on and off for any job ✓ Automatically senses and sets paper length, envelope size ✓ Vertical output stacker holds 500 filled envelopes and and compatible fold type preserves printing order ✓ Tri-folds or single -folds letter -size documents and double- ✓ Connects to your network via LAN or WIFI to enable folds legal -size sheets remote diagnostics and remote assistance ✓ Collate, fold and insert up to 5 pages into a #10 envelope ✓ CIS scanner can read OMR, 1D and 2D codes printed or 8 pages into a 6" x 9.5" envelope horizontally or vertically on the document l l Travis Douroux n (951) 416-9461 @ t dnurnux(cbauadiPntrnm 1B quadient.com quad e n t conneetsuite e-certif y Simplify the Preparation, Tracking and Storage of Your Certified Mail° with Return Receipt - Is managing document proof of delivery simply a hassle? Does your business require a signature when documents have been mailed or delivered? With ConnectSuite e-Certify, you can centralize the processing of Certified Mail and track your document directly through the United States Post Office®. Preparing your Certified Mail with Return Receipt electronically saves you time and money, enabling you to access specific delivery information and images of recipient signatures, all securely stored in the cloud. If you need assurance and proof your important documents have been both delivered and received, without the hassle of preparing the mail pieces and storing the Return Receipt "green cards", then ConnectSuite e-Certify is for you. Show/Hide Menu + Create Tracking 0 Mail Pieces .= My Mail Queue 'D Jobs/History 0 Address Book L Reports * Favorites 8 Support i Logow OLOCAL CITY CA Ba533 1 Mail Pieces ConnectSuite e-Certify allows you to: ✓ Reduce manual labor and increase efficiency ✓ Enhance tracking via an easy -to -use centralized portal ✓ Retrieve and store recipient signatures securely in the cloud ✓ Receive automatic email notifications when signatures are available ✓ Reduce postage costs for Certified Mail with Return Receipt'" ✓ Prepare Certified Mail from multiple locations and send through a centralized mailroom 0 W,mmm CERTIFIED MAIL: 11111111111111Fiiiiiiiiiiiiii1iui ALEXANDER SAMPLE 475 GODDARD STE 150 IRVINE CA 92618 quadrem L(uJ FIRST-CLASS MAIL Q $005.86 0112M2021 ZIP 06461 W4 129eage 3 RTravis Douroux ® (951) 416-9461 @ t doLroilxna auadiPnt c,c1m CE quadient.com quad'ient quad ent United States Postal Service Mandate Postage meters that print the Information -Based Indicia (IBI) will be decertified in 2024 and must be replaced by meters with Intelligent Mail Indicia (IMI) technology. • The limited postage and transaction data the USPS® gets from IBI prevents them from fully automating certain back -office functions such as refunds and proper postage payment validation. • The new IMI standard provides more detailed transaction data in real time, enabling the USPS® to automate operations, enhance security measures, and ensure correct postage is used. NEQPOST 01 /28/201 FI PST -CLASS MAIL $00OA70 ZIP 06461 046MI2345678 OUTGOING - IBI Example quodk- rt IW ti FIRST-CLASS MAIL ` $000.530 0 IICL 011G112022 ZIP 06461 043M31299999 0 NEW - IMI Example Federal Register Notice - Vol. 85, No. 234, issued - Friday, Dec. 4, 2020 "In this final rule, the Postal Service withdraws all authorizations to distribute (decertifies) Postage Evidencing Systems (PES) that are not producing compliant Intelligent Mail Indicia (IMI) on June 30, 2024. IMI compliant PIES are defined in the IMI Performance Criteria (IMI-PC) and produce only IMI-Minimum (IMI-MIN), IMI-Standard (IMI-STD), and IMI-Maximum (IMI-MAX) indicia constructs (as stated in the IMI-PC). All PIES that are not IMI-PC compliant, also referenced as Phase VI-IBI and Phase VII-PC Postage (collectively Phase VI and Phase VII PES), will become decertified Postage Evidencing Systems on June 30, 2024. The decertified Postage Evidencing Systems must be withdrawn from service by December 31, 2024." Date View the ruling online: https://www.federairegister.gov/d/2020-26129 Action June 30, 2024 IBI Postage Meters are Decertified (no new placements) December 31, 2024 All IBI Postage Meters must be withdrawn from service All Quadient iX Postage Meters are fully IMI compliant and USPS-approved EXPERIENCE PROVEN RESULTS 0 9 ift EXPERTISE BACKED BY THE EXPERTS A rich history of ® 97% customer Over 1 trillion personalized dF Gartner, Forrester, IDC, world -class leadership satisfaction rate n experiences delivered and Aspire quad e n t What you need to know about the new USPS® Intelligent Mail Indicia (IMI) Standards The USPS® now requires that all new mailing systems meet the Intelligent Mail Indicia (IMI) standards as the mailing systems go to market. It provides more transparent and detailed transaction data, enables automation of costly back -office operations, and employs better security standards. New IMI Standards Offer Full Compliance ✓ Provides transaction level data for each mail piece daily ✓ Provides improved indicia constructs that support Fraud Detection, Readabilty, and Indicia Management ✓ Supports automated refunds, refund authorization, and fraud detection (data on IMpB, PIC) ✓ Supports the USPS to accurately calculate short paid and over paid postage (data on TW, Price, Notice123, Extra ✓ Restricts Keyed -In -Postage (KIP), which supports proper Services) mail rating/classification for USPS ✓ Provides end mailer information for Federal Government compliance ✓ Supports the tracking and management of reprinted indicia ✓ FIPS 140-2 Security Level 3+ (EFP/EFT) (security strength to deter current threats) ✓ Improved security for Rate Table, Log Files and Data Exchange Interface Benefits of the New IMI Standards - • • _ . - • 1 . • • _ Even the most careful manual data The USPS requires systems with IMI to entry may produce errors. With an IMI, connect to the manufacturer's servers the postage is automatically calculated every 72 hours. With frequent use after you input the required Service information, the USPS is better able to Class. Using IMI saves money and mail Class. manage mail flow. Updates arrive to the not returned for lack of postage. meter in a timely fashion, including rate changes and other modifications, avoiding over or short payment. 7 Federal Information Processing (FIP) is ��✓ the organization that creates standards for data encryption. IMI adheres to their standards to ensure that information transmits securely, whether it is going to or from the postage meter. The new IMI captures more data, provides the USPS with more real-time data, and ensures that you always use the correct amount of postage. The iX-Series by Quadient meet the latest IMI and Dimensional Weighing (DIM) USPS requirements. Gain a complete suite of tools that offer a one -stop approach to processing, tracking, reporting and reconciling postage expenses for mail and parcels. To learn more about Quadient's IMI compliant N-Series postage meters, visit quadient.com EXPERIENCE PROVEN RESULTS 0 9 dft EXPERTISE A rich history of ® 97% customer Over 1 trillion personalized world -class leadership satisfaction rate n experiences delivered - VO BACKED BY THE EXPERTS Gartner, Forrester, IDC, and Aspire CONSENT CALENDAR ITEM NO. 3 City of La Quinta CITY COUNCIL MEETING: MAY 16, 2023 STAFF REPORT AGENDA TITLE: APPROVE GOVERNMENT PRODUCT LEASE AGREEMENT WITH QUADIENT LEASING USA, INC. FOR FIVE-YEAR LEASE OF POSTAGE AND PAPER FOLDING MACHINES RECOMMENDATION Approve Government Product Lease Agreement with Quadient Leasing USA, Inc. for five- year lease of postage and paper folding machines; and authorize the City Manager to execute the agreement. EXECUTIVE SUMMARY • In November of 2022, the City was notified that the United States Postal Service (USPS) will be decertifying Information Based Indicia (IBI) meters in 2024, and they must be replaced by meters with Intelligent Mail Indicia (IMI) technology. The City leases an IBI meter postage machine from Quadient Leasing USA, Inc. (Quadient) which must be replaced per the new regulations. • Quadient has authorized the City to join the "Hybrid Why Wait Program Addendum" which will upgrade the postage machine before the current lease ends, and transition into a new 5-year lease term through October 2028. FISCAL IMPACT Lease payments will remain the same through October 12, 2023, at $945 per month not including applicable taxes, billed quarterly at $2,998.27 ($2,835 + taxes of $163.27). The new Government Product Lease Agreement (Attachment 1) will commence on October 13, 2023, at a reduced amount of $895.34 per month plus applicable taxes which average 6% of the lease amount, and will also be billed quarterly. The total not to exceed amount for the 5-year lease term is $53,720.40 and approximately $3,500 for taxes. Funds are available in the Centralized Services postage machine account (101-1007-60661). BACKGROUND/ANALYSIS Since 2016, the City has leased its postage machine from Quadient, formerly MailFinance, a Neopost USA Company, acquired by Quadient effective February 24, 2020. 17 In October 2019, the City amended the 2016 lease to include the leasing of a paper folding machine in addition to the postage machine, and executed a new 5-year lease which will expire January 12, 2025. In November of 2022, the City was notified that USPS will decertify the current IBI meters in 2024, and they must be replaced by meters with IMI technology. In order to comply with the new USPS regulations, and to ensure a smooth transition to the new equipment without disrupting the current lease term, Quadient has authorized the City to join the "Hybrid Why Wait Program Addendum" (Attachment 2). This will eliminate 5 of the 7 remaining quarterly payments on the existing lease to expedite the withdrawal of decertified equipment, install new equipment immediately, and transition to the new lease automatically after 2 remaining quarterly payments on the existing lease. The City sought to obtain competitive quotes and received one from Pitney Bowes. Although their base pricing is lower, it remains more cost-effective to sign a new lease agreement with Quadient, as breaking the current lease would require a buy-out priced at approximately $20,000, which would cost more than the savings that would be realized through Pitney Bowes over a 5-year lease. Pitney Bowes Quadient Quarterly Payment (pre-tax) $1,975.98 $2,686.02 5-Year Term (pre-tax) $39,519.60 $53,720.40 Current Lease Buy-out $19,845 $0 TOTAL: $59,364.60 $53,720.40 ALTERNATIVES Staff does not recommend an alternative. Prepared by: Laurie McGinley, Deputy City Clerk Approved by: Monika Radeva, City Clerk Attachments: 1. Quadient — Government Product Lease Agreement 2. Hybrid Why Wait Program Addendum 18