Title
RESOLUTION NO. 2015-077 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT TO PROVIDE SEWER AND PARKING CITATION BILLING SERVICES BETWEEN THE CITY AND INFOSEND, INC. AND AUTHORIZING THE CITY MANAGER TO EXERCISE TWO ONE-YEAR OPTIONS TO EXTEND THE AGREEMENT
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RECOMMENDED ACTION
Recommended Action
Council adopt the resolution.
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SUMMARY
The City has contracted for printing and mailing services for sewer bills since 2002. In 2010, the City began contracting the same services for parking citations issued by the Chula Vista Police Department. A Request for Proposals to provide sewer and parking citation billing services was issued and award to InfoSend, Inc. is recommended.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity, approval of a contract for mailing sewer bills and parking citations is not a "Project" as defined under Section 15378(b)(4) of the State CEQA Guidelines because it is only an approving of a funding mechanism; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
BOARD/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
The Finance Department followed Municipal Code Section 2.56 and City Council Policy No. 102-05 in the consultant selection process. A Request for Proposals (RFP) was issued on September 5, 2014 for sewer and parking citation billing services. The RFP was posted electronically on PlanetBids.com, a web-based vendor and bid management system that is widely used by other local agencies. In addition, the RFP was sent directly to the current vendor, InfoSend, Inc. No other vendors indicated interest in future procurements.
Three proposals were received and evaluated by a Selection Committee based on the following technical criteria:
· Pricing of services;
· Quality of online user interface;
· Reporting capabilities;
· Quality control measures;
· Data security and archiving;
· Payment Card Industry (PCI) compliance; and
· Overall quality of the proposal.
Proposals were received from DATAMATX, Electronic Output Solutions (EOS), and InfoSend. Staff calculated a projected annual cost for each proposal based upon unit pricing and annual data access and storage charges. DATAMATX is projected to be the most expensive vendor, followed by EOS, with InfoSend projected to be the least expensive vendor.
The City currently contracts with InfoSend, Inc. for the subject services. Based upon scores assigned for the above referenced criteria, the quality of services currently provided to the City, and InfoSend's position as lowest-cost bidder, the Selection Committee recommends awarding the contract to InfoSend, Inc.
The City generates approximately 90,000 sewer bills and 3,000 parking citation notices annually. In fiscal year 2013-14, the City paid InfoSend $14,504 for printing and mailing services, with an additional $33,179 paid for postage. No significant change in the annual cost of printing and mailing services is anticipated under the new contract.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18705.2(a)(11), is not applicable to this decision. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Awarding a contract for sewer and parking citation billing services supports the Operational Excellence goal by providing a cost effective means of invoicing monies due to the City.
CURRENT YEAR FISCAL IMPACT
All costs associated with preparation and mailing of sewer invoices are borne by the Sewer Service Fund. All costs associated with preparation and mailing of parking citation reminder notices are borne by the General Fund. Projected annual costs by fund and activity are summarized in the table below.
|
Sewer |
Parking Citations |
Total |
Printing & Related Services |
$ 15,000 |
$ 1,000 |
$ 16,000 |
Postage |
$ 30,000 |
$ 1,500 |
$ 31,500 |
Total |
$ 45,000 |
$ 2,500 |
$ 47,500 |
Sufficient funds were included in the adopted fiscal year 2014-15 budget. No additional appropriation is requested.
ONGOING FISCAL IMPACT
All costs associated with preparation and mailing of sewer invoices are borne by the Sewer Service Fund. All costs associated with preparation and mailing of parking citation reminder notices are borne by the General Fund. Projected annual costs by fund and activity are summarized in the table below.
|
Sewer |
Parking Citations |
Total |
Printing & Related Services |
$ 15,000 |
$ 1,000 |
$ 16,000 |
Postage |
$ 30,000 |
$ 1,500 |
$ 31,500 |
Total |
$ 45,000 |
$ 2,500 |
$ 47,500 |
The initial term of the agreement shall be three years. The City Manager shall have the authority to approve the extension of this agreement for two one-year terms, at the City's sole discretion.
Fees may be adjusted once every twelve months to account for increases in the cost of materials, labor, and other overhead costs. The maximum annual increase shall be limited to the Consumer Price Index (CPI) for the State of California, plus 1.5%. Postage fees can be changed at any time per USPS regulations and do not require an amendment to the Agreement.
ATTACHMENTS
1. Agreement between City of Chula Vista and InfoSend, Inc. to Provide Sewer and Parking Citation Billing Services
Staff Contact: Tiffany Allen, Finance Department