Agenda Item - 3.f.
City of Garden Grove
|To:||Scott C. Stiles||From:||Patricia Song|
|Dept.:||City Manager ||Dept.: ||Finance |
Award a contract to InfoSend Inc. for data processing, printing, inserting and mailing services for utility bills, and the CityWorks publication. (Cost: $132,000) (Action Item)
For the City Council to award a contract to InfoSend Inc. for data processing, printing, inserting and mailing services for City utility bills and CityWorks.
InfoSend has provided the City mail services since 2014, and in 2016, the service scope was expanded to include utility bill processing. InfoSend has intimate knowledge of the City’s processes.
InfoSend provides services to many local agencies in Southern California, including data processing, printing, mailing and mail inserting services. Their clientele covers neighboring Orange County cities such as Huntington Beach, Orange, Santa Ana, and Newport. InfoSend has performed the full spectrum of data processing, print and mail services since 1996. Additionally, they support over 450 public agencies nationwide.
The City services over 34,000 water accounts and bills customers bi-monthly. Currently, the City mails approximately 15,000 utility paper bills per month or 800-1,000 per day. The water billing process is generated 4-5 days a week with billing data files delivered to the vendor electronically daily.
In March 2016, the City Council approved a 5-year contract with InfoSend for data processing, printing, inserting and mailing services for utility bills and CityWorks inserts. As this contract expires, a Request for Proposal (RFP) was conducted to follow industry best practices. The City received proposals from two vendors, including the current vendor, InfoSend, Inc. Proposals were reviewed and evaluated by a team of two Finance personnel alongside with a Community Relations staff member. InfoSend was selected as the most qualified vendor based on experience, work approach, pricing, and quality of proposal. InfoSend has the technical, managerial and financial capacity to meet all of the requirements and provisions set forth in the RFP.
The scope of work includes all of the services related to data processing, printing, mailing and inserting for the City’s utility bills. With the evaluation team’s efforts, the newly negotiated prices for most of the service line items showed a decrease. Below is a comparison of service costs between the current contract and the newly negotiated contract. Detailed pricing is also included in the attached agreement.
Total annual cost for the City’s print and mailing services for utility bills and CityWorks including paper and envelopes is estimated to be $132,000, which includes $29,000 for paper, envelopes, bill print and mailing services; $25,000 for the printing and inserting of CityWorks; and $78,000 for postage pass-through.
The contract’s annual amount of $132,000 is already included in each responsible department’s current year operating budget. Future years’ service fees will be incorporated in the biennial budget process. Funding sources include:
General Fund - $25,000
Water Enterprise Fund - $87,000
Sewer Enterprise Fund - $20,000
It is recommended that the City Council:
Award a contract, in the amount of $132,000, to InfoSend Inc. for data processing, printing, inserting and mailing services for utility bills and CityWorks inserts for a 5-year term; and
- Authorize the City Manager to execute the agreement on behalf of the City, and to make modifications as appropriate.