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
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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
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