REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
March 15, 2022
FROM
MARIE GIRULAT, Director, Department of Child Support Services
SUBJECT
Title
Purchase of Unbudgeted Fixed Asset and Agreement with Pitney Bowes for Envelopener Machine
End
RECOMMENDATION(S)
Recommendation
1. Approve purchase of an unbudgeted fixed asset in an amount not to exceed $12,787, for the purchase of an Omation Model 306 Envelopener, a high volume, high speed envelope opening and sorting machine from Pitney Bowes.
2. Approve agreement with Pitney Bowes for the purchase of the Omation Model 306 Envelopener machine in the amount of $12,787, to include a one-year warranty.
3. Authorize the Auditor-Controller/Treasurer/Tax Collector to post the adjustments as indicated in the Financial Impact section to the 2021-22 budget for the purchase of the Omation Model 306 Envelopener machine (Four votes required).
(Presenter: Marie Girulat, Director, 478-7459)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost) as the purchase will be funded through 66% ($8,439) United States Department of Health and Human Services Federal Financial Participation and 34% ($4,348) State revenues. The cost for the Omation Model 306 Envelopener in the amount of $12,787 includes a one-year warranty. The Department of Child Support Services (DCSS) requests the Auditor-Controller/Treasurer/Tax Collector to post the following adjustments to DCSS 2021-22 budget for the purchase of this unbudgeted fixed asset. These adjustments are possible as a result of lower than expected expenditures for contracted services this fiscal year.
|
Fund Center |
Commitment Item/GL Account |
Description |
Action |
Amount |
|
4521301000 |
54404040 |
Equipment |
Increase |
$12,787 |
|
4521401000 |
52002445 |
Other Professional & Special Services |
Decrease |
$12,787 |
BACKGROUND INFORMATION
DCSS determines paternity, establishes and enforces child support orders, and secures payments to assist families in meeting the financial and medical needs of their children. The DCSS Loma Linda office is responsible for opening and sorting mail for all of its four office locations. On average, 700-900 pieces of mail are received daily. The recommended Omation Model 306 Envelopener machine allows feeds up to 400 envelopes reducing staffing time to open/process this large volume of mail in order to ensure DCSS State required processing timelines are met.
DCSS currently utilizes an Omation Model 206 Envelopener purchased in 2003 to assist with opening and sorting mail. However, the machine is outdated and parts are no longer available for necessary repairs. Approval of this item will allow DCSS to replace the outdated model with the updated Omation Model 306 Envelopener machine, to be purchased from Pitney Bowes, with enhanced sorting capabilities. The Omation Model 306 Envelopener is a high volume, high speed envelope opening and sorting machine that includes an operator controlled software interface to accommodate numerous job settings, multiple operators and languages, as well as password protection.
The agreement with Pitney Bowes, and the incorporated attachments, include terms that differ from the standard County contract terms. The non-standard terms include the following:
1. The agreement’s Governing law is California and the venue is in Sacramento County.
• The County standard contract requires California governing law, and venue in San Bernardino County.
• Potential Impact: Pursuant to County Policy 11-05, an acceptable revision is a venue in another California county. If an action is filed in Sacramento County, the impact may involve travel expenses to Sacramento or the expense of telephonic appearance fees for court hearings.
2. The agreement’s payment terms are net 45 days.
• County standard payment terms are net 60 days with no interest or late payment penalties.
• Potential Impact: County standard processing time is 60 days or more. Failing to make timely payments will result in overdue account charges up to a maximum rate of 1% per month on the outstanding balance. However, pursuant to County Policy 11-05, an acceptable revision is net 45 days. As this is a one-time purchase rather than a lease agreement, there will not be periodic invoices subject to interest or late payment penalties. DCSS will ensure timely processing of this one-time payment.
PROCUREMENT
DCSS solicited bids from three vendors for the purchase of the updated Omation Model 306 Envelopener machine, with bids received from the following three vendors. Based on the bids received, DCSS is recommending purchasing the required Omation Model 306 Envelopener from Pitney Bowes, as they provided the best pricing. The purchase from Pitney Bowes includes a one-year warranty; the department will seek quotes from various qualified vendors for ongoing maintenance services to be effective after the warranty expires.
|
Vendor |
Quote Amount |
|
Pitney Bowes |
$12,787 |
|
Quadient, Inc. |
$13,661 |
|
Whitaker Brothers Business Machines, Inc. |
$13,112 |
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Ramona Verduzco, Deputy County Counsel, 387-5455) on February 3, 2022; Purchasing (Bruce Cole, Supervising Buyer, 387-2148) on February 17, 2022; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Supervising Accountant, 382-7022) on February 17, 2022; Finance (Christopher Lange, Administrative Analyst, 386-8393) on February 17, 2022; and County Finance and Administration (Cheryl Adams, Deputy Executive Officer, 388-0238) on February 22, 2022.