AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From:...

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AGENDA REPORT To: Mayor Pat Humphrey and the Clare City Commission From: Steven J. Kingsbury, MBA, CPFA, MiCPT Acting City Manager, Treasurer, Finance and Technology Director Date: June 12, 2019 Regarding: Lease-to-Own of a Pitney-Bowes Folding and Envelope Insertion Machine For the Agenda of June 17, 2019 ______________________________________________________________________________ Background The City of Clare currently owns a PFE Minimailer 4 Plus that we acquired from Automated Business Equipment a number of years ago. This is the machine that we use to fold documents, stuff the folded documents into envelopes and insert a return envelope as/if applicable. The types of documents that we use this machine for include the summer and winter tax bills, the annual assessing change notice, monthly utility bills, bi-monthly city newsletters, Parks and Recreation flyers and a number of other documents. Originally we purchased a new folding machine from Automated Business Machines in early 2005 at a price of $7,195 which after a half dozen years was simply not working as it should even after being serviced on a regular basis. At that time the owner of Automated Business Machines offered a new machine at no cost to the City with the agreement that we continued our annual maintenance agreement for the unit at an annual cost of $1,000. For a number of years this folding machine worked as it should but over the past couple of years it has consistently had difficulty with even simple folding jobs resulting in extensive staff frustration and unproductive use of our time. There are only a couple of manufacturers of this type of equipment for the volume of use that we need, PFE being one and Pitney-Bowes being the other. The City of Ithaca leases a Pitney-Bowes folding machine which they have been very pleased with its performance and reliability. We contacted the Pitney-Bowes representative for this area and obtained a lease-to-own quote for a brand new Relay 1000 folding machine. The five-year lease-to-own total cost is $6,867 with quarterly billing of $343.35. At the end of the five year lease the machine is ours though we would at that point likely enter into a maintenance agreement as the amount of paper dust and ink that rubs off the paper and envelopes necessitates regular, professional cleaning of the wear parts. Financial Impact The annual cost of the lease is $1,373.40 with the total five-year lease cost being $6,87.00 at which time we would own the machine. This expense has been included within the City's FY2019/20 Budget. Recommendation It is my recommendation that the City Commission approve the sole source lease-to-own agreement with Pitney-Bowes by adoption of Resolution 2019-087. Attachments 1. Pitney-Bowes Quote and Model Brochure. 2. City of Clare Resolution 2019-087.

Transcript of AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From:...

Page 1: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology

AGENDA REPORT To: Mayor Pat Humphrey and the Clare City Commission

From: Steven J. Kingsbury, MBA, CPFA, MiCPT Acting City Manager, Treasurer, Finance and Technology Director Date: June 12, 2019

Regarding: Lease-to-Own of a Pitney-Bowes Folding and Envelope Insertion Machine For the Agenda of June 17, 2019 ______________________________________________________________________________ Background The City of Clare currently owns a PFE Minimailer 4 Plus that we acquired from Automated Business Equipment a number of years ago. This is the machine that we use to fold documents, stuff the folded documents into envelopes and insert a return envelope as/if applicable. The types of documents that we use this machine for include the summer and winter tax bills, the annual assessing change notice, monthly utility bills, bi-monthly city newsletters, Parks and Recreation flyers and a number of other documents. Originally we purchased a new folding machine from Automated Business Machines in early 2005 at a price of $7,195 which after a half dozen years was simply not working as it should even after being serviced on a regular basis. At that time the owner of Automated Business Machines offered a new machine at no cost to the City with the agreement that we continued our annual maintenance agreement for the unit at an annual cost of $1,000. For a number of years this folding machine worked as it should but over the past couple of years it has consistently had difficulty with even simple folding jobs resulting in extensive staff frustration and unproductive use of our time. There are only a couple of manufacturers of this type of equipment for the volume of use that we need, PFE being one and Pitney-Bowes being the other. The City of Ithaca leases a Pitney-Bowes folding machine which they have been very pleased with its performance and reliability. We contacted the Pitney-Bowes representative for this area and obtained a lease-to-own quote for a brand new Relay 1000 folding machine. The five-year lease-to-own total cost is $6,867 with quarterly billing of $343.35. At the end of the five year lease the machine is ours though we would at that point likely enter into a maintenance agreement as the amount of paper dust and ink that rubs off the paper and envelopes necessitates regular, professional cleaning of the wear parts. Financial Impact The annual cost of the lease is $1,373.40 with the total five-year lease cost being $6,87.00 at which time we would own the machine. This expense has been included within the City's FY2019/20 Budget. Recommendation It is my recommendation that the City Commission approve the sole source lease-to-own agreement with Pitney-Bowes by adoption of Resolution 2019-087. Attachments

1. Pitney-Bowes Quote and Model Brochure.

2. City of Clare Resolution 2019-087.

Page 2: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology
Page 3: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology
Page 4: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology
Page 5: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology
Page 6: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology
Page 7: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology

State and Local Term RentalAgreement Number

Your Business Information

CITY OF CLARE

Full Legal Name of Lessee / DBA Name of Lessee Tax ID # (FEIN/TIN)

202 W 5TH ST, CLARE, MI, 48617-1490, US

Sold-To: Address

Sold-To: Contact Name

Edie Hunter

Sold-To: Contact Phone #

9893867541

Sold-To: Account #

0013095834

Ship-To: Address

202 W 5TH ST, CLARE, MI, 48617-1490, US

Ship-To: Contact Name

Edie Hunter

Ship-To: Contact Phone #

9893867541

Ship-To: Account #

0013095834

PO #

Bill-To: Contact Phone # Bill-To: Account #

202 W 5TH ST, CLARE, MI, 48617-1490, US

0013095834

Bill-To: Contact Name

Edie Hunter

Bill-To: Address

9893867541

Bill-To: Email

[email protected]

Your Business Needs

Qty Business Solution DescriptionItem

1 RELAY1000RELAY 1000 INSERTING SYSTEM

1 STDSLA Standard SLA-Equipment Service Agreement (for RELAY 1000 INSERTING SYSTEM)

1 TI11 RELAY 1000 Sys 3 Station w/Install & Trg

Your Payment Plan

Initial Term:

Number of Months Monthly Amount Billed Quarterly at*

Initial Payment Amount:60 months

$ 114.4560 $ 343.35

*Does not include any applicable sales, use, or property taxes which will be billed separately.

Tax Exempt Certificate AttachedTax Exempt Certificate Not Required

( )

( )

( ) Purchase Power® transaction fees extra

( ) Purchase Power® transaction fees included

See Pitney Bowes Terms for additional terms and conditions

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©2019 Pitney Bowes Inc. All rights reserved.

Page 8: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology

Title

Your Signature Below

Lessee Signature

Date

Title

Date

Print Name

Email Address

Print Name

Pitney Bowes Signature

[[SertifiSStamp_1]]

Not ApplicableState/Entity's Contract#

Non-Appropriations. You warrant that you have funds available to make all payments until the end of your current fiscal period, and shall use your best efforts to obtain funds to make allpayments in each subsequent fiscal period through the end of your lease term. If your appropriation request to your legislative body, or funding authority ("Governing Body") for funds tomake the payments is denied, you may terminate this lease on the last day of the fiscal period for which funds have been appropriated, upon (i) submission of documentation reasonablysatisfactory to us evidencing the Governing Body's denial of an appropriation sufficient to continue this lease for the next succeeding fiscal period, and (ii) satisfaction of all charges andobligations under this lease incurred through the end of the fiscal period for which funds have been appropriated, including the return of the equipment at your expense.

By signing below, you agree to be bound by all the terms of this Agreement, including the Pitney Bowes Terms (Version 1/19), which are available at http://www.pb.com/statelocalltoptermsand are incorporated by reference. The term lease will be binding on us after we have completed our credit and documentation approval process and have signed below. If software isincluded in the Order, additional terms apply which are available by clicking on the hyperlink for that software located at http://www.pitneybowes.com/us/license-terms-of-use/software-and-subscription-terms-and-conditions.html. Those additional terms are incorporated by reference.

Account Rep Name Email Address

Sales Information

Lori Damato [email protected]

PBGFS Acceptance

See Pitney Bowes Terms for additional terms and conditions

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©2019 Pitney Bowes Inc. All rights reserved.

Page 9: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology

Form 8038-GC Information Return for Small Tax-ExemptGovernmental Bond Issues, Leases, and Installment Sales

Under Internal Revenue Code section 149(e)

Caution: If the issue price of the issue is $100,000 or more, use Form 8038-G.

(Rev. January 2012)Department of the TreasuryInternal Revenue Service

OMB No. 1545-0720

Part I Reporting Authority Check box if Amended Return

1 Issuer’s name 2 Issuer’s employer identification number

3 Number and street (or P.O. box if mail is not delivered to street address) Room/suite

4 City, town, or post office, state, and ZIP code 5 Report number (For IRS Use Only)

6 Name and title of officer or other employee of issuer or designated contact person whom the IRS may call for more information 7 Telephone number of officer or legalrepresentative

Part II Description of Obligations Check one: a single issue or a consolidated return8a Issue price of obligation(s) (see instructions) . . . . . . . . b Issue date (single issue) or calendar date (consolidated). Enter date in mm/dd/yyyy format (for example, 01/01/2009) (see instructions) 9 Amount of the reported obligation(s) on line 8a that is: a For leases for vehicles . . . . . . . . . . . . . . . . . . . . . . . . . b For leases for office equipment . . . . . . . . . . . . . . . . . . . . . . . c For leases for real property . . . . . . . . . . . . . . . . . . . . . . . . d For leases for other (see instructions) . . . . . . . . . . . . . . . . . . . . . e For bank loans for vehicles . . . . . . . . . . . . . . . . . . . . . . . . f For bank loans for office equipment . . . . . . . . . . . . . . . . . . . . . g For bank loans for real property. . . . . . . . . . . . . . . . . . . . . . . h For bank loans for other (see instructions) . . . . . . . . . . . . . . . . . . . i Used to refund prior issue(s) . . . . . . . . . . . . . . . . . . . . . . . j Representing a loan from the proceeds of another tax-exempt obligation (for example, bond bank) . . k Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10 If the issuer has designated any issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check this box . . . .11 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check this box (see instructions) . . . . . . .12 Vendor’s or bank’s name: Pitney Bowes Inc.13 Vendor’s or bank’s employer identification number: 06 0495050

8a

9a9b9c9d9e9f9g9h9i9j9k

SignatureandConsent

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge andbelief, they are true, correct, and complete. I further declare that I consent to the IRS's disclosure of the issuer's return information, as necessary to processthis return, to the person(s) that I have authorized above.

Signature of issuer’s authorized representative Date Type or print name and title

PaidPreparerUse Only

Print/Type preparer’s name Preparer's signature Date Check ifself-employed

PTIN

Firm’s name

Firm's address

Firm's EIN

Phone no.

General Instructions Who Must File

Section references are to the InternalRevenue Code unless otherwise noted

What's NewThe IRS has created a page on IRS.gov forinformation about the Form 8038 series andits instructions, at www.irs.gov/form8038.Information about any future developmentsaffecting the Form 8038 series (such aslegislation enacted after we release it) will beposted on that page.

Purpose of FormForm 8038-GC is used by the issuers of tax-exempt governmental obligations to providethe IRS with the information required bysection 149(e) and to monitor therequirements of sections 141 through 150.

Issuers of tax-exempt governmentalobligations with issue prices of less than$100,000 must file Form 8038-GC.

Issuers of a tax-exempt governmentalobligation with an issue price of $100,000 ormore must file Form 8038-G, InformationReturn for Tax-Exempt GovernmentalObligations.

Filing a separate return for a single issue.Issuers have the option to file a separateForm 8038-GC for any tax-exemptgovernmental obligation with an issue priceof less than $100,000.

An issuer of a tax-exempt bond used tofinance construction expenditures must file aseparate Form 8038-GC for each issue to givenotice to the IRS that an election was made to

pay a penalty in lieu of arbitrage rebate(see the line 11 instructions).

Filing a consolidated return for multipleissues. For all tax-exempt governmentalobligations with issue prices of less than$100,000 that are not reported on a separateForm 8038-GC, an issuer must file aconsolidated information return including allsuch issues issued within the calendar year. Thus, an issuer may file a separate Form8038-GC for each of a number of small issuesand report the remainder of small issuesissued during the calendar year on oneconsolidated Form 8038-GC. However, if theissue is a construction issue, a separate Form8038-GC must be filed to give the IRS noticeof the election to pay a penalty in lieuof arbitrage rebate.

Cat. No. 64108B Form8038-GC (Rev. 1-2012)

CITY OF CLARE

202 W 5TH ST

CLARE MI 48617-1490

[[SertifiSignature_1]]

Page 10: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology

When To File

Form 8038-GC (Rev. 1-2012)

To file a separate return for a single issue, fileForm 8038-GC on or before the 15th day ofthe second calendar month after the close ofthe calendar quarter in which the issue isissued.

To file a consolidated return for multipleissues, file Form 8038-GC on or beforeFebruary 15th of the calendar year followingthe year in which the issue is issued.

Late filing. An issuer may be granted anextension of time to file Form 8038-GC undersection 3 of Rev. Proc. 2002-48, 2002-37I.R.B. 531, if it is determined that the failure tofile on time is not due to willful neglect. Typeor print at the top of the form, “Request forRelief under section 3 of Rev. Proc. 2002-48.”Attach to the Form 8038-GC a letter brieflystating why the form was not submitted to theIRS on time. Also indicate whether theobligation in question is under examination bythe IRS. Do not submit copies of any bonddocuments, leases, or installment saledocuments See Where To File next.

Where To FileFile Form 8038-GC, and any attachments,with the Department of the Treasury, InternalRevenue Service Center, Ogden, UT 84201.

Private delivery services. You can usecertain private delivery services designated bythe IRS to meet the “timely mailing as timelyfiling/paying” rule for tax returns andpayments. These private delivery servicesinclude only the following:

• DHL Express (DHL): DHL Same Day Service.

• Federal Express (FedEx): FedEx PriorityOvernight, FedEx Standard Overnight, FedEx2Day, FedEx International Priority, andFedEx International First.• United Parcel Service (UPS): UPS Next DayAir, UPS Next Day Air Saver, UPS 2nd Day Air,UPS 2nd Day Air A.M., UPS Worldwide ExpressPlus, and UPS Worldwide Express.

The private delivery service can tell youhow to get written proof of the mailing date.

Other Forms That May BeRequired

For rebating arbitrage (or paying a penalty inlieu of arbitrage rebate) to the FederalGovernment, use Form 8038-T, ArbitrageRebate, Yield Reduction and Penalty in Lieuof Arbitrage Rebate. For private activitybonds, use Form 8038, Information Return forTax-Exempt Private Activity Bond Issues.

For a tax-exempt governmental obligationwith an issue price of $100,000 or more, useForm 8038-G.

Rounding to Whole DollarsYou may show the money items on this returnas whole-dollar amounts. To do so, drop anyamount less than 50 cents and increase anyamount from 50 to 99 cents to the next higherdollar

DefinitionsObligations. This refers to a single tax-exempt governmental obligation if Form8038-GC is used for separate reporting or to

multiple tax-exempt governmental obligationsif the form is used for consolidated reporting.

Tax-exempt obligation. This is any obligationincluding a bond, installment purchaseagreement, or financial lease, on which theinterest is excluded from income under section103.

Tax-exempt governmental obligation. A taxexempt obligation that is not a private activitybond (see below) is a tax-exemptgovernmental obligation. This includes a bondissued by a qualified volunteer fire departmentunder section 150(e).

Private activity bond. This includes anobligation issued as part of an issue in which:

• More than 10% of the proceeds are to beused for any private activity business use, and• More than 10% of the payment of principalor interest of the issue is either (a) secured byan interest in property to be used for a privatebusiness use (or payments for such property)or (b) to be derived from payments forproperty (or borrowed money) used for aprivate business use.

It also includes a bond, the proceeds ofwhich (a) are to be used to make or finance loans (other than loans described in section141(c)(2)) to persons other thangovernmental units and (b) exceeds thelesser of 5% of the proceeds or $5 million.

Issue. Generally, obligations are treated aspart of the same issue only if they are issuedby the same issuer, on the same date, and aspart of a single transaction, or a series ofrelated transactions. However, obligationsissued during the same calendar year (a)under a loan agreement under which amountsare to be advanced periodically (a “draw-downloan”) or (b) with a term not exceeding 270days, may be treated as part of the sameissue if the obligations are equally and ratablysecured under a single indenture or loanagreement and are issued under a commonfinancing arrangement (for example, under thesame official statement periodically updated toreflect changing factual circumstances). Also,for obligations issued under a draw-down loanthat meets the requirements of the precedingsentence, obligations issued during differentcalendar years may be treated as part of thesame issue if all of the amounts to beadvanced under the draw-down loan arereasonably expected to be advanced within 3years of the date of issue of the firstobligation. Likewise, obligations (other thanprivate activity bonds) issued under a singleagreement that is in the form of a lease orinstallment sale may be treated as part of thesame issue if all of the property covered bythat agreement is reasonably expected to bedelivered within 3 years of the date of issue ofthe first obligation.

Arbitrage rebate. Generally, interest on astate or local bond is not tax-exempt unless the issuer of the bond rebates to the UnitedStates arbitrage profits earned from investingproceeds of the bond in higher yieldingnonpurpose investments.See section 148(f).

Construction issue. This is an issue of tax-exempt bonds that meets both of thefollowing conditions:

1. At least 75% of the available constructionproceeds of the issue are to be used forconstruction expenditures with respect toproperty to be owned by a governmental unitor a 501(c)(3) organization, and 2. All of the bonds that are part of the issueare qualified 501(c)(3) bonds, bonds that arenot private activity bonds, or private activitybonds issued to finance property to be ownedby a governmental unit or a 501(c)(3)organization.

In lieu of rebating any arbitrage that may beowed to the United States, the issuer of aconstruction issue may make an irrevocableelection to pay a penalty. The penalty is equalto 1-1/2% of the amount of constructionproceeds that do not meet certain spendingrequirements. See section 148(f)(4)(C) andthe Instructions for Form 8038-T.

Specific InstructionsIn general, a Form 8038-GC must becompleted on the basis of availableinformation and reasonable expectations as ofthe date of issue. However, forms that are filedon a consolidated basis may be completed onthe basis of information readily available to theissuer at the close of the calendar year towhich the form relates, supplemented byestimates made in good faith.

Part I—Reporting AuthorityAmended return. An issuer may file anamended return to change or add to theinformation reported on a previously filedreturn for the same date of issue. If you arefiling to correct errors or change a previouslyfiled return, check the “Amended Return” boxin the heading of the form.

The amended return must provide all theinformation reported on the original return, inaddition to the new corrected information.Attach an explanation of the reason for theamended return and write across the top"Amended Return Explanation."

Line 1. The issuer’s name is the name of theentity issuing the obligations, not the name ofthe entity receiving the benefit of thefinancing. In the case of a lease or installmentsale, the issuer is the lessee or purchaser.

Line 2. An issuer that does not have anemployer identification number (EIN) shouldapply for one on Form SS-4, Application forEmployer Identification Number. You can getthis form on the IRS website at IRS.gov or bycalling 1-800-TAX-FORM (1-800-829-3676).You may receive an EIN by telephone byfollowing the instructions for Form SS-4.

Lines 3 and 4. Enter the issuer’s address orthe address of the designated contact personlisted on line 6. If the issuer wishes to use itsown address and the issuer receives its mailin care of a third party authorizedrepresentative (such as an accountant orattorney), enter on the street address line“C/O” followed by the third party's name andstreet address or P.O. box. Include the suite,room, or other unit number after the streetaddress. If the post office does not deliver mailto the street address and the issuer has aP.O. box, show the box number instead of the

Page 11: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology

Form 8038-GC (Rev. 1-2012) Page 3

street address. If a change in address occurs after the return is filed, use Form 8822, Change of Address, to notify the IRS of the new address.

Lines 9i and 9J. For line 9i, enter the amountof the proceeds that will be used to payprincipal, interest, or call premium on anyother issue of bonds, including proceeds thatwill be used to fund an escrow account forthis purpose. Several lines may apply to aparticular obligation. For example, report onlines 9i and 9j obligations used to refund priorissues which represent loans from theproceeds of another tax-exempt obligation.

If an authorized representative of the issuerfilled in its return, the paid preparer’s space should remain blank. Anyone who preparesthe return but does not chargethe organization should not sign the return.Certain others who prepare the return shouldnot sign. For example, a regular, full-timeemployee of the issuer, such as a clerk,secretary, etc., should not sign.Lines 9k. Enter on line 9k the amount on line

8a that does not represent an obligationdescribed on lines 9a through 9j

Note. The address entered on lines 3 and 4 isthe address the IRS will use for all writtencommunications regarding the processing ofthis return, including any notices. Byauthorizing a person other than an authorizedofficer or other employee of the issuer tocommunicate with the IRS and whom the IRSmay contact about this return, the issuerauthorizes the IRS to communicate directlywith the individual listed on line 6, whoseaddress is entered on lines 3 and 4 andconsents to disclose the issuer's returninformation to that individual, as necessary, toprocess this return.

Line 5. This line is for IRS use only. Donot make any entries in this box.

Part II—Description of Obligations

Check the appropriate box designating this as areturn on a single issue basis ora consolidated return basis.

Line 8a. The issue price of obligations isgenerally determined under Regulationssection 1.148-1(b). Thus, when issued forcash, the issue price is the price at which asubstantial amount of the obligations are soldto the public. To determine the issue price ofan obligation issued for property, see sections1273 and 1274 and the related regulations.

Line 8b. For a single issue, enter the date ofissue (for example, 03/15/2010 for a singleissue issued on March 15, 2010), generallythe date on which the issuer physicallyexchanges the bonds that are part of theissue for the underwriter’s (or otherpurchaser’s) funds; for a lease or installmentsale, enter the date interest starts to accrue.For issues reported on a consolidated basis,enter the first day of the calendar year duringwhich the obligations were issued (forexample, for calendar year 2010, enter01/01/2010).

Lines 9a through 9h. Complete this section ifproperty other than cash is exchanged for theobligation, for example, acquiring a police car,a fire truck, or telephone equipment through aseries of monthly payments. (This type ofobligation is sometimes referred to as a“municipal lease.”) Also complete this sectionif real property is directly acquired in exchangefor an obligation to make periodic payments ofinterest and principal.

Do not complete lines 9a through 9d if theproceeds of an obligation are received in the form of cash even if the term “lease” is usedin the title of the issue. For lines 9a through9d, enter the amount on the appropriate linethat represents a lease or installmentpurchase. For line 9d, enter the type of itemthat is leased. For lines 9e through 9h, enterthe amount on the appropriate line thatrepresents a bank loan. For line 9h, enter thetype of bank loan.

Line 10. Check this box if the issuer hasdesignated any issue as a “small issuerexception” under section 265(b)(3)(B)(i)(III).

Line 11. Check this box if the issue is aconstruction issue and an irrevocable electionto pay a penalty in lieu of arbitrage rebate hasbeen made on or before the date the bondswere issued. The penalty is payable with aForm 8038-T for each 6-month period afterthe date the bonds are issued. Do not makeany payment of penalty in lieu of rebate withForm 8038-GC. See Rev. Proc. 92-22, 1992-1C.B. 736, for rules regarding the “electiondocument.”

Line 12. Enter the name of the vendor or bankwho is a party to the installment purchaseagreement, loan, or financial lease. If thereare multiple vendors or banks, the issuershould attach a schedule.

Line 13. Enter the employer identificationnumber of the vendor or bank who is a partyto the installment purchase agreement, loan,or financial lease. If there are multiple vendorsor banks, the issuer should attach a schedule.

Signature and Consent

An authorized representative of the issuermust sign Form 8038-GC and any applicable certification. Also print the name and title ofthe person signing Form 8038-GC. Theauthorized representative of the issuer signingthis form must have the authority to consent tothe disclosure of the issuer's returninformation, as necessary to process thisreturn, to the person(s) that has beendesignated in this form.

Note. If the issuer authorizes in line 6 theIRS to communicate with a person other thanan officer or other employee of the issuer,(such authorization shall include contact bothin writing regardless of the address enteredin lines 3 and 4, and by telephone) by signingthis form, the issuer's authorizedrepresentative consents to the disclosureof the issuer's return information, as necessaryto process this return, to such person.

Paid Preparer

Generally, anyone who is paid to prepare areturn must sign it and fill in the other blanks inthe Paid Preparer Use Only area of the return.A paid preparer cannot use a social securitynumber in the.Paid Preparer Use Only box.The paid preparer must use a preparer taxidentification number (PTIN). If the paidpreparer is self-employed, the preparer shouldenter his or her address in the box.

The paid preparer must:

• Sign the return in the space provided for thepreparer’s signature, and

• Give a copy of the return to the issuer.

Paperwork Reduction Act Notice

We ask for the information on this form tocarry out the Internal Revenue laws of the United States. You are required to give us theinformation. We need it to ensure that you arecomplying with these laws.

You are not required to provide theinformation requested on a form that issubject to the Paperwork Reduction Actunless the form displays a valid OMB controlnumber. Books or records relating to a formor its instructions must be retained as long astheir contents may become material in theadministration of any Internal Revenue law. Generally, tax returns and return informationare confidential, as required by section 6103.

The time needed to complete and file thisform will vary depending on individual circumstances. The estimated average time is:

Learning about thelaw or the form . . . . 4 hr., 46 min.

Preparing the form . . . . 2 hr., 22 min.

Copying, assembling, andsending the form to the IRS . 2 hr., 34 min.

If you have comments concerning theaccuracy of these time estimates or suggestionsfor making this form simpler, we would be happyto hear from you. You can write to the InternalRevenue Service, Tax Products CoordinatingCommittee, SE:W:CAR:MP:T:M:S, 1111Constitution Ave. NW, IR-6526, Washington, DC20224. Do not send the form to this address.Instead, see Where To File.

Page 12: AGENDA REPORT - Clare, Michigan...To: Mayor Pat Humphrey and the Clare City Commission . From: Steven J. Kingsbury, MBA, CPFA, MiCPT . Acting City Manager, Treasurer, Finance and Technology

RESOLUTION 2019-087 A RESOLUTION OF THE CLARE CITY COMMISSION APPROVING A LEASE-TO-OWN AGREEMENT WITH PITNEY-BOWES FOR A RELAY 1000 FOLDING AND INSERTION SYSTEM(MACHINE).

WHEREAS, the City of Clare currently owns and regularly uses a folding and insertion machine for the semi-annual property tax billing, annual assessment notices, monthly utility billing, bi-monthly city newsletters and other several other purposes; and

WHEREAS, there are two manufacturers of the type of equipment that the City

uses, Pitney-Bowes and PFE; and WHEREAS, the PFE machine used by the City for several years performed well

for the first few years of ownership but has not been as reliable over the past couple of years even though it has been regularly maintained; and

WHEREAS, the City has requested and received a favorable lease-to-own quote for a

new Pitney-Bowes Relay 1000 which is used by several municipalities for the same purposes that the City of Clare uses this type of equipment.

NOW THEREFORE BE IT RESOLVED THAT the City Commission hereby

approves the lease-to-own five-year agreement with Pitney-Bowes for the Relay 1000 with a quarterly payment of $343.35 and a total cost of $6,867.00.

ALL RESOLUTIONS AND PARTS OF RESOLUTIONS INSOFAR AS THEY CONFLICT WITH THE PROVISIONS OF THIS RESOLUTION BE AND THE SAME ARE HEREBY RESCINDED. The Resolution was introduced by Commissioner and supported by Commissioner . The Resolution declared adopted by the following roll call vote: YEAS: NAYS: ABSENT: Resolution approved for adoption on this 17th day of June 2019. ________________________________ Diane Lyon, City Clerk