REPORT TO CITY COUNCIL
SUBJECT
Title
Action on Amendment No. 4 to the Agreement with InfoSend, Inc. for Utility Billing Print and Mail Services to Extend the Term by Six Months and Increase the Maximum Compensation by $280,000
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Municipal Services Division of the Finance Department (Division) is responsible for measuring water/electric consumption, generating accurate bills, collecting revenue, and providing customer service for the City’s utility customers. Over the past five years, staff has reported to the City Council that the Division is managing several projects to streamline operations of the City’s Utility Billing System. Integral to this system are bill printing and mailing services, which are handled by InfoSend, Inc., who specializes in providing such services. The agreement with InfoSend expires on June 30, 2024. The purpose of this report is to request authorization to amend the agreement to extend the term for six months, ending on December 31, 2024, and increase the maximum compensation by $280,000 to cover the extension period.
In 2017, staff conducted a competitive procurement process for print and mail services resulting in the award of a three-year contract to InfoSend. The original term was for three years ending in 2020. Since then, the agreement has been amended three times, with the last Amendment No. 3 extending the term by two additional years, ending on June 30, 2024 (RTC 21-1049). Such extensions were required, in-part, due to the higher priorities of completing several other streamlining projects that were delayed due to COVID-19, staffing shortages, and other unforeseen circumstances. Staff anticipates that it will complete a competitive Request for Proposals (RFP) process for a possible new bill print and mail service vendor by the end of the proposed extended term.
DISCUSSION
On January 26, 2024, staff published RFP 23-24-58 for bill print and mail services, and eight responsive proposals were received by the February 26, 2024 due date.
When the RFP was published, staff anticipated having sufficient time to complete the RFP process, select a vendor, and present the recommended vendor to the City Council. However, given the current workload and the unexpected high number of proposals to evaluate, there is not enough time to complete the process described above and transition services to a new service provider if one is selected.
Staff requests authorization to execute Amendment No. 4 to extend the term by six months ending on December 31, 2024. In addition, the maximum compensation will increase by $280,000 to $2,660,000 to cover the extension period. InfoSend has agreed not to increase prices during the six-month extension period.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant section 15378(b)(5) of Title 14 of the California Code of Regulations in that the amendment solely authorizes an extension of an existing agreement and a compensation increase and will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
The proposed Amendment No. 4 adds $280,000 to the contract and increases the maximum compensation from $2,380,000 to $2,660,000. Sufficient funds are available in the FY 2023/24 and FY 2024/25 Adopted Operating Budget.
COORDINATION
This report was coordinated with the City Manager’s Office and 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
Authorize the City Manager to execute Amendment No. 4 to the Agreement with InfoSend, Inc. to extend the term of the Agreement by six months ending on December 31, 2024 and increase the maximum compensation by $280,000 to $2,660,000.
Staff
Reviewed by: Kenn Lee, Director of Finance
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Agreement with InfoSend
2. Amendment No. 1 to the Agreement with InfoSend
3. Amendment No. 2 to the Agreement with InfoSend
4. Amendment No. 3 to the Agreement with InfoSend
5. Proposed Amendment No. 4 to the Agreement with InfoSend