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HomeMy WebLinkAboutItem 2h: Contract with Monrovia Mailing Company for Mailing ServicesDate: August 17, 2010 To: Mayor and City Council From: Hue Quach, Administrative Services Director Shannon Huang, Financial Services Manager/Treasurer <4' , Subject: Authorize the City Manager to award a contract in the amount not to exceed $100,000 for the period of September 2010 through June 2011 for mailing services to Monrovia Mailing Company with the renewal option of three (3) one -year contracts not to exceed $120,000 annually Recommendation: Approve SUMMARY In June 2010, City staff solicited for a mailing service contract from thirteen firms and received two responses. It is recommended that the City award the mailing services contract to Monrovia Mailing Company with the lowest bid among two proposals received for the period of September 2010 through June 2011 with three (3) one -year renewal options. DISCUSSION The City has outgoing mail ranging from 400 to 700 pieces daily. City staff fold all mail, stuff all envelopes including any inserts and seal all envelops. The vendor picks up, meters and delivers the daily mail to the post office. The mail service vendor is also required to fold, insert and meter approximately 8000 water bills each month. The City's current mail service contract with Target Mailing Services has expired and staff mailed a bid request to thirteen firms that provide mailing related services. Two proposals as outlined below were received and reviewed by staff. The low response rate is attributable to the daily pick up schedule; it seems to be cost effective only for vendors located within the close proximity of the City Hall to provide this service. Based on the average number of mail, staff has determined that Monrovia Mailing Company has provided a more competitive pricing. The annual contract should not exceed $120,000, of which includes only $12,000 of service charges for the vendor. The balance of approximately 1 STAFF REPORT Administrative Services Department Vendors Annual costs based on 600 mail /daily Target Mailing Services $117,552 Monrovia Mailing Company $110,688 $108,000 is for postage that is a pass through expense from the post office, the City would still incur this cost even without contracting out the services. Additionally, staff checked the references of Monrovia Mailing Company and found that their customers are satisfied with their services. Therefore, staff recommends the City Council approve the contract with Monrovia Mailing Company. FISCAL IMPACT The total mailing service contract including postage shall not exceed $120,000 annually, and adequate funds have been included in the operating budget for Fiscal Year 2010 -11. RECOMMENDATION It is recommended the City Council: Authorize the City Manager to award a contract in the amount not to exceed $100,000 for the period of September 2010 through June 2011 for mailing services to Monrovia Mailing Company with the renewal option of three (3) one -year contracts not to exceed $120,000 annually Approved: 3 1�e' Don Penman, City Manager 2