| | | | | | | | Agenda Item - 3.m.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Patricia Song
| | Dept.: | City Manager
| Dept.: | Finance
| | Subject: | Approval of Amendment No. 2 to the agreement with InfoSend, Inc. for data processing, printing, inserting, and mailing services for business licenses, utility bills, and the CityWorks publication. (Cost: $180,000) (Action Item) | Date: | 6/14/2022 |
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| | | | | | | | OBJECTIVE
For the City Council to approve Amendment No. 2 allocating additional funding to an existing agreement with InfoSend, Inc., and expanding the original scope of work of data processing, printing, inserting, and mailing services for City utility bills and CityWorks to include services for business license mailings. |
| | | | | | | | BACKGROUND
InfoSend, Inc. has been providing the City of Garden Grove utility bill processing services since 2016. In 2021, after a Request for Proposal (RFP) was conducted to follow industry best practices, the City selected InfoSend as the most qualified vendor based on experience, work approach, pricing, and quality of its proposal. InfoSend provides services such as data processing, printing, mailing, and mail insertion to many local agencies in Southern California, including neighboring cities Huntington Beach, Orange, Santa Ana, and Newport Beach. Additionally, InfoSend supports over 450 public agencies nationwide. |
| | | | | | | | DISCUSSION
The City has approximately 16,000 active business license tax accounts, and mails approximately 23,000 business license renewal notices every year. This includes first notices, delinquent notices, and final notices. An additional 14,000 paid Business License Tax Certificates are mailed annually.
The initial agreement amount of $132,000 with InfoSend was approved by City Council on April 27, 2021, following an RFP process to provide data processing, printing, inserting, and mailing services for City utility bills and CityWorks. Amendment No. 2 would increase compensation for the term ending June 30, 2022 to $155,200 to cover expenses through June 30, 2022 due to increase in costs. It would also expand the scope of work to include all services related to data processing, printing, mailing, and inserting for the City’s business licenses operation in addition to the original services for the City’s utility bills and CityWorks, for a total contract amount of $180,000 per year. |
| | | | | | | | FINANCIAL IMPACT
The contract amount of $180,000 includes $45,000 for paper, envelopes, bill print and mailing services; $25,000 for the printing and inserting of CityWorks; and $110,000 for postage pass-through. This cost is already included in each responsible department’s operating budget for the new fiscal year. No additional appropriation is being requested. Below is a breakdown of funding sources:
General Fund: $60,000
Water Enterprise Fund: $97,000
Sewer Enterprise Fund: $23,000 |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve Amendment No. 2 to the agreement with InfoSend, Inc. increasing compensation for the term ending June 30, 2022 by $23,200 to $155,200 and increasing scope of work for the term commencing July 1, 2022 to include business license activities for a new contract amount of $180,000 per year;
- Authorize the City Manager to execute the agreement on behalf of the City, and to make modifications as appropriate; and
- Authorize the City Manager to execute the three remaining option years, at a rate of $180,000 per year plus allowable CPI increases and to cover any unforeseen postal rate increases, and to make minor modifications on behalf of the City.
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