| | | | | | | | Agenda Item - 4.c.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Kingsley Okereke
| | Dept.: | City Manager
| Dept.: | Finance
| | Subject: | Award of a professional services agreement to Infosend Inc. for data processing, printing, inserting and mailing services for utility bills and CityWorks inserts. (Cost: $128,000 for first year) (Action Item) | Date: | 3/22/2016 |
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| | | | | | | | OBJECTIVE
To seek City Council approval to award a professional services agreement with Infosend, Inc. (“Infosend”) for Data Processing, Printing, Inserting and Mailing Services for City of Garden Grove Utility Bills and CityWorks inserts. |
| | | | | | | | BACKGROUND
The City of Garden Grove’s utility (water and sewer) bill printing is done in house. Prior to July of 2014, the City printed bills were picked up, inserted and mailed by Roper Mailing Services. With very short notice the vendor closed its business. Until a formal bid process could be completed, the City issued an emergency purchase order to Inforsend that will expire June 30, 2016. The City printed bills are transported to Infosend in the City of Anaheim by courier for insert and mailing services.
On October 23, 2015, the City released a Request for Proposal (RFP). Twenty five (25) firms were solicited with Infosend submitting the only proposal. Based on this response along with Infosend’s qualifications and pricing, staff recommends that Infosend be awarded the contract. |
| | | | | | | | DISCUSSION
The City sends out approximately 15,900 bills each month taking into consideration the 2,800 accounts that have elected to go paperless. This equates to about 191,000 printed bills per year. Infosend’s fees will now include paper, envelopes, printing and inserting of utility bills and the CityWorks insert as well as the direct pass-through of United States postage. The City will send electronic files to Infosend. Infosend will then print, insert, and mail the bills daily from their facility.
Infosend’s Corporate Headquarters and main production facility is located in Anaheim, California, 13.9 miles from Garden Grove City Hall. The company moved into this completely reconstructed 77,000-square-foot headquarters in April 2011, making significant investment in infrastructure, equipment, and future growth. Infosend is used by many cities in Southern California for printing and mailing services, including Huntington Beach, Santa Ana, Newport Beach, and Orange.
Staff is confident that Infosend has the technical, managerial and financial capacity to meet all of the obligations and provisions set forth in the RFP. Infosend has performed the full spectrum of data processing, print and mail services since 1996. |
| | | | | | | | FINANCIAL IMPACT
Total annual cost for the City’s print and mailing services for utility bills and CityWorks including paper and envelopes will be $128,000 for the first year: $25,500 for Paper, Envelopes, Bill Print and Mailing Services, $18,000 for the printing and inserting of CityWorks, and $84,500 for postage pass-through. The cost analysis provides for a slight savings to the current expenditure for paper and envelopes. The portion of this agreement pertaining to the remainder of FY 2015-16 is in the current budget and will be renewed annually thereafter for the remainder of the agreement. |
| | | | | | | | RECOMMENDATION
It is recommended that City Council:
- Award a one (1) year Professional Services Agreement to Infosend for Data Processing, Printing, Inserting, Mailing and Postage with an option to extend said agreement for an additional four (4) years as stated in the proposal;
- Authorize the City Manager or his designee to execute the agreement, making minor modifications as necessary and to approve any unforeseen increases in the postage portion of the agreement; and
- Authorize the City Manager or his designee to execute the four option years as necessary.
By: Monica Neely, Revenue Manager
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