REPORT TO COUNCIL
SUBJECT
Title
Action on an Agreement with InfoSend, Inc. for Bill Print and Mail Services
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Municipal Services Division of the Finance Department is responsible for measuring water/electric consumption, generating accurate bills, collecting revenue, and providing customer service for the City of Santa Clara’s utility customers. Integral to this service are the printing and mailing services used for utility billing, business tax renewals, and other notices and correspondence sent to customers. Each year, the City of Santa Clara (City) processes and mails approximately 600,000 pieces of mail.
The current agreement for print and mail services is set to expire on December 31, 2024.
DISCUSSION
Pursuant to City Code Section 2.105.140(c), a formal Request for Proposals (RFP) was conducted, with the award recommendation based on “best value.”
In January 2024, the RFP for Bill Print and Mail Servies was published on the City’s e-procurement system. Eight proposals were received on February 26, 2024 from the following firms:
• Amsive, LLC
• Doxim
• InfoSend, Inc. (InfoSend)
• KUBRA America West (KUBRA)
• Matrix Imaging Solutions, LLC. dba DataProse, LLC. (DataProse)
• Output Services Group, Inc.
• R.R. Donnelley & Sons Company
• United Direct Solutions, LLC
The proposals were independently evaluated by a three-member evaluation panel against the criteria and weights published in the RFP, which included experience, technical capability, and cost. InfoSend, KUBRA, and DataProse were invited to participate in oral interviews and submit their best and final offers. After completing the evaluation, the panel determined that InfoSend’s proposal was the best value and fully met the requirements of the RFP.
Staff is requesting City Council approval for the City Manager to negotiate and execute an agreement with InfoSend for print and mail services. The proposed agreement with InfoSend includes an initial one-year term, starting on January 1, 2025, with six optional one-year extensions, for a total contract term of up to seven years. Compensation for InfoSend’s services will be based on a per-piece cost to process, prepare, sort, and print each item, along with material costs, such as paper and envelopes. The fee schedule also includes additional services, such as electronic address updates for residents who have filed a change of address, document imaging, and other professional services that may be required.
Pricing for InfoSend’s services will be fixed for the initial year. For each optional extension, InfoSend may request a price adjustment, which must be based on the percentage increase in the applicable Consumer Price Index or Price Producer Index. These price adjustments will be documented in the amendments authorizing each option year.
The aggregate maximum compensation for the initial term and subsequent options periods is outlined in Table 1 below.
Table 1: Maximum Compensation for Initial Term and Option Periods
|
Term |
Total |
|
Initial Term (Year 1) |
$200,000 |
|
Option Period (Year 2) |
$210,000 |
|
Option Period (Year 3) |
$220,500 |
|
Option Period (Year 4) |
$231,525 |
|
Option Period (Year 5) |
$243,101 |
|
Option Period (Year 6) |
$255,256 |
|
Option Period (Year 7) |
$268,019 |
|
Contingency (20%) |
$325,680 |
|
Aggregate Maximum Compensation |
$1,954,081 |
The maximum compensation for Year 1, as outlined in Table 1, is $200,000 based on past usage. For Years 2-7, the amounts include a 5% annual adjustment to account for economic price changes. Additionally, a 20% contingency is included to cover any increases in mail and print requirements.
Postage, as a significant expense associated with mailing, is treated as a pass-through cost and is not included in the aggregate maximum compensation. Postage costs will be charged separately to the City at the lowest possible United Postal Post Services (USPS) rates. Postage cost is approximately $300,000 per year.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of a California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(5) of Title 14 of the California Code of Regulations in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
Sufficient funds for year one of the agreement are available in the FY 2024/25 Operating Budget in the General Fund Finance Department appropriation. Costs borne by the City’s utility enterprises reimburse the General Fund through the City’s cost allocation plan. Funding for future years of the agreement will be brought forward in the Proposed FY 2025/26 and FY 2026/27 Operating Budget as part of the annual budget process.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager or designee to negotiate and execute an agreement with InfoSend, Inc. (Agreement) for print and mail services, for an initial one-year term starting on January 1, 2025 and ending on December 31, 2025, with a maximum compensation of $200,000, to be funded by the General Fund, subject to the review and approval as to form by the City Attorney; and
2. Authorize the City Manager or designee to take any actions as necessary to implement and administer the Agreement and to negotiate and execute amendments to the Agreement to (a) add or delete services consistent with the scope of services, (b) adjust rates consistent with market standards, (c) exercise up to six one-year extension options, (d) make other no cost amendments, and (e) increase the maximum compensation by up to $1,754,081 for a total maximum compensation of $1,954,081 over the seven-year period, ending on December 31, 2031, subject to the appropriation of funds and review and approval as to form by the City Attorney.
3. Authorize the payment of pass-through postage costs to InfoSend, Inc., which will be charged to the City at the lowest possible United States Postal Service (USPS) rates, estimated at approximately $300,000 per year, subject to adjustments based on USPS rate increases and the actual volume of mail sent.
Staff
Reviewed by: Kenn Lee, Director of Finance
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement with InfoSend, Inc.