Title
MOTION TO APPROVE THE PROPOSED AGREEMENT WITH INFOSEND, INC. FOR UTILITY BILLING PRINTING AND MAILING SERVICES UTILIZING PRICING FROM COLLIER COUNTY’S RFP #22-8010 FOR AN ESTIMATED ANNUAL AMOUNT OF $370,000.00, PURSUANT TO SECTION 35.18(C)(5) OF THE CITY’S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinances is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(5) states that “Commodities or services that are the subject of contracts with the state its political subdivisions or other governmental entities including the United States Government, are exempt from the competitive procurement process.”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval.
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. In 2021, the Utilities Department integrated billing into the citywide Enterprise Resource Planning (ERP) Program, Tyler Munis ERP, which resulted in a change to the format of the bills from green and white postcards to an 8.5”x11” multi-colored document, enclosed in an envelope.
2. On June 2, 2021, the City Commission approved a contract for utility bill printing and mailing with InfoSend, Inc., utilizing the Town of Jupiter’s contract, to mitigate costs that would have been incurred due to additional supplies, equipment, and personnel needed to perform this work in-house. The Jupiter agreement that the City is currently piggybacking is set to expire on February 28, 2024.
3. An updated analysis of the cost to perform this work with in-house resources versus contracting for this work has been completed. Although postage would be a constant factor, an up-front cost of two new bill printers, printer maintenance fees, and a change order to the Jacobs Utilities Operations agreement would be needed, along with various supplies such as printer inks, bill stock paper, and return envelopes. The analysis indicates that the estimated in-house cost is $580,470 in the first year, as compared with the expected cost of $370,000 to contract for this activity. Based on this analysis, the Utilities Department Staff has concluded that it is still in the City’s best interest to outsource this activity.
4. To this end, Staff has solicited a new agreement with InfoSend, who has offered to honor the same terms and conditions as their current, three-year contract with Collier County (RFP #22-8010), which will expire on June 26, 2026. The City's agreement with InfoSend will allow for two additional one-year renewal periods, subject to the renewal of the Collier County Contract.
5. Based on an estimate of 42,000 mail pieces monthly, the Department processes an average of 504,000 mail pieces annually. Furthermore, Staff expects to serve delinquent notices this year, as needed, which yields an estimated annual total cost of $370,000 under the Collier County contract.
6. Staff recommends City Commission approval of the proposed agreement with InfoSend, Inc. for Utility Billing Printing and Mailing Services, utilizing pricing established in Collier County’s RFP# 22-8010 in an estimated annual amount of $370,000.00, pursuant to Section 35.18(C)(5) of the City’s Code of Ordinances.
Reviewed by Commission Auditor.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: Estimated annual cost of $370,000.
b) Amount budgeted for this item in Account No: There are sufficient funds to cover the costs for the remainder of the fiscal year. $53,368.90 is available in Account No. 471-536-6010-534990-0000-000-0000- (Other Svc) and $194,957.84 is available in Account No. 471-536-6010-542000-0000-000-0000 (Postage)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project: The agreement is for a period through June 26, 2026, which allows two additional one-year renewal periods, subject to the renewal of the Collier County Contract.
|
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
$0.00 |
$0.00 |
$0 |
$0 |
NA |
|
Expenditures |
$370,000 |
$370,000 |
NA |
NA |
NA |
|
Net Cost |
$370,000 |
$370,000 |
NA |
NA |
NA |
e) Detail of additional staff requirements:
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Yes.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? The total expected cost is estimated to be $580,470 in the first year of in-house bill printing and mailing services. The expected variance is estimated to be a cost savings of $209,934 (or 36%). (See attachment #3- Cost Analysis)