HomeMy WebLinkAboutItem 09f - Outgoing Mail Services
DATE: October 20, 2020
TO: Honorable Mayor and City Council
FROM: Hue C. Quach, Administrative Services Director
By: Henry Chen, Financial Services Manager/Treasurer
SUBJECT: CONTRACT WITH SOCAL MAILING SERVICES FOR OUTGOING
MAIL SERVICES IN AN AMOUNT NOT TO EXCEED $112,000
ANNUALLY WITH THE OPTION OF THREE ONE-YEAR
EXTENSIONS
Recommendation: Approve
SUMMARY
A Request for Proposal (“RFP”) for outgoing mail services was sent to nine firms,
published on the City’s website, and in the local newspaper during August 2020.
SoCal Mailing Services, who is the City’s current mailing services provider, was
the only vendor to submit a proposal. It is recommended that the City award the
outgoing mail services contract to SoCal Mailing Services in the amount not to
exceed $112,000 annually, which consists of $19,000 for labor and $93,000 for
postage, with the option to renew the contract for three one-year extensions.
DISCUSSION
The City currently has outgoing mail volume average of 300 pieces daily that
requires folding, stuffing of inserts, and sealing. The mail service vendor picks
up, meters, and delivers the mail to the Post Office. Additionally, on a monthly
basis, the mail service vendor also folds, inserts, and meters approximately
8,000 water bills.
The City has contracted with SoCal Mailing Services since October 2018, when
they assumed the contract from Target Mailing Services, the previous vendor.
The City has not had any issues with their services since they assumed the
contract. A bid request was sent to nine firms that provide similar mailing
services. The bid request was also published on the City’s website and in the
local newspaper for two days during the month of August. SoCal Mailing
Services was the only provider who submitted a proposal in response to the bid
Contract with SoCal Mailing Services for
Outgoing Mail Services
October 20, 2020
Page 2 of 2
request. The low response rate may be attributable to the required pickup
services at the City Hall; it seems to be cost effective and profitable only for
vendors that are near Arcadia’s City Hall.
The volume of mail has continued to decrease over the past few years because
of the growing usage of electronic mail and online platforms. When this contract
was last awarded, the City’s average daily volume was about 400 pieces of mail.
The trend is expected to continue. Therefore, the total contracted amount for this
service is expected to not exceed $112,000 annually, which was calculated
based on the current average volume of 300 daily pieces of mail and 8,000
monthly water bills. Out of the total contracted amount, only $19,000 is for labor
services and the balance of $93,000 is for postage.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California
Environmental Quality Act (“CEQA”), under Section 15061(b)(3) of the CEQA
Guidelines, as it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
The total outgoing mail services contract, including postage, shall not exceed
$112,000 annually. Funds have been included in the Fiscal Year 2020-21
Operating Budget for this purpose.
RECOMMENDATION
It is recommended that the City Council determine that this action does not
constitute a project and is therefore, exempt under, the California Environmental
Quality Act (“CEQA”); and authorize and direct the City Manager to execute a
contract with SoCal Mailing Services for outgoing mail services, in an amount not
to exceed $112,000 annually, with the option of three one-year extensions.
Attachment: Cost Calculations
Pick up costs 45.00$ Each time 50.00$ Each time
Processing costs 0.080$ Each piece
Annual Service Costs
Each Per day costs Each Per month costs
250 pieces of 0‐2 ounces 0.575$ 143.75$ 0.477$ 3,816.00
50 pieces of 2‐3 ounces 0.800$ 40.00$
Annual Postage Costs
ESTIMATED TOTAL COSTS FOR ONE YEAR $112,000
ESTIMATED TOTAL COSTS REMAINDER OF FY20‐21 (7 MONTHS) $65,000
300 Pieces of Daily Mail & 8000 of Monthly Water bills
$93,000
Postage
Service Costs
Monthly Water BillsDaily Mail
$19,000