2002 AGN DEC 17 I14 - Laserfiche WebLink

Browse Search

CITY OF COLTON Item #14 AGENDA REPORT FOR THE COUNCIL MEETING OF DECEMBER 17, 2002 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: DILU DE ALWIS, FINANCE DIRECTOR SUBJECT: TERMINATE THE CONTRACT WITH DATA PROSE, INC. FOR UTILITY BILL PRINT AND MAIL SERVICES AND AWARD A CONTRACT TO INFO SEND, INC. IN THE ANNUAL AMOUNT OF $150,000. DATE: NOVEMBER 27, 2002 BACKGROUND: Since February of this year Colton Public Utilities has been outsourcing the printing and mailing of the City's utility statements. This was done to both save money and enhance service to the City's customers by providing more information in an easier to read format. The bill inserting and mailing service has been outsourced for many years while retaining the printing function in-house. In 2001, staff conducted an RFP process to see if the printing could be outsourced as well to reduce the total printing and mailing costs. The current vendor, Data Prose, was selected through this process and awarded a contract by Council effective December 8, 2001, for a two-year period. During the first year there have been numerous operational and support deficiencies on the part of Data Prose which has made it clear their service fails to meet levels consistent with Colton's requirements. Section 3.5.1.1 "Grounds for Termination" of the agreement states "City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination." It is Staff's recommendation that Council terminate the agreement with Data Prose, Inc. ANALYSIS/DISCUSSION: Following Colton's lead, the City of Azusa (our Customer Information System partner) conducted their own RFP process for bill printing and mailing services in the first half of this year. Azusa received responses from Data Prose, Info Send, and several other vendors. After investigating all of the respondents and factoring in Colton's experience they selected the lowest bidder, Info Send (in April 2002). They found Info Send open to changes and revisions which resulted in a much improved statement from the one in place with Data Prose. Azusa's service included pre-printed forms and laser printing which was far superior to the output from Data Prose. Info Send also worked with Azusa to develop exacting handling procedures that have avoided the repeated occurrences of lost data Colton has experienced. Lastly, Azusa has received these enhanced services while at the same time paying 3 cents less per statement than Colton.