Title
[Cooperative Purchase Agreement] Prepaid Postage for Postage Meter Equipment [Published for 10-day Review 07/10/2026]
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FileID
File ID: 2026-01212
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion: 1) approving the use of the Sourcewell Cooperative Purchase Agreement with Pitney Bowes, Inc. (Contract No. 070125-PIT) for the purchase of prepaid postage; and 2) authorizing the City Manager or designee to execute a five-year contract with Pitney Bowes, Inc. for prepaid postage in an amount not-to-exceed $2,750,000 for citywide postage needs.
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Contact
Contact: Maryann Deleon Munoz, Building Services Manager, (916) 808-576, mdeleon@cityofsacramento.org; Richard Sanders, Facilities & Real Property Superintendent, (916) 808-7034, rsanders@cityofsacramento.org; James Christensen, Facilities Manager, (916) 808-5863, jechristensen@cityofsacramento.org; Department of Public Works
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Contract - Sourcewell Cooperative Agreement Pitney Bowes, Inc.
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Description/Analysis
IssueDetail
Issue Detail: The Department of Public Works provides US Mail Services to City departments through the department’s Central Services section. Sourcewell is a local government and service cooperative offering a Cooperative Purchasing Program to eligible participating government entities. Through use of the Master Agreement with Sourcewell, staff recommends approval of a contract with Pitney Bowes, Inc, to provide the prepaid postage that the City’s mailing service needs. This includes providing access to Pitney Bowes postage meter equipment that is leased and maintained through Pitney Bowes agreement and utilize prepaid postage for convenient, fast stamping of US Mail.
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PolicyConsiderations
Policy Considerations: The recommendations in this report are in accordance with the provisions of City Code Chapter 3.56 and the Sacramento City Code Section 4.04.020 and the City Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to City Council Action. This item was published for 10-day review in compliance with the City Code.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): No environmental review is necessary because the recommendations in this report involve the ongoing purchase of supplies and are not considered to be a project in accordance with Section 15378 (b)(2) of the CEQA guidelines.
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Sustainability
Sustainability: None.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: In an ongoing effort to maximize cost savings and staff resources, many government agencies share contract efforts through cooperative purchasing. This procurement method increases pricing competitiveness and lowers operating costs through volume buying. When comparing the administrative costs of procurement, staff consider product research, source section, specifications, advertising, staff reports, awards and administration of the contract.
The City has used both regional and national cooperative purchase agreements to purchase goods and services. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and share resources with other jurisdictions. Cooperative purchase also leverages internal and external resources to maximize cost savings opportunities for the City. This report recommends actions necessary to authorize expenditures, in support of City departments, for prepaid postage through June of 2031.
Prepaid postage for postage meters must be purchased through the same company from which the post meter equipment is purchased from. Central Services owns Pitney Bowes postage meter equipment. Purchasing postage from another vendor would require obtaining postage meter equipment from another vendor, thereby increasing overall cost to the city.
Executing the recommended contract with Pitney Bowes will prevent an interruption of this critical service to City Departments.
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FinancialConsiderations
Financial Considerations: The recommended contract with Pitney Bowes in an amount not-to-exceed $2,750,000 will provide postage through June 2031. The contract amount was determined based on a review of historical expenditures and a consideration of future needs including increased postage rates. Funding for this contract will initially be provided by the Department of Public Works operating budget (General Fund, Fund 1001). Usage by City departments is tracked on a monthly basis and department operating budgets or capital improvement projects that use the service are then charged for their share of the cost, so all costs are internally reimbursed.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Pitney Bowes, Inc. is not an LBE. The minimum LBE
participation requirement is waived for the City’s use of cooperative purchase agreements that have been competitively bid, evaluated, and awarded by other governmental agencies that may or may not have similar LBE programs.
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