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CITY OF COLTON <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF DECEMBER 7, 1999 <br />TO: HONORABLE MAYOR & CITY COUNCIL <br />APPROVAL: HENRY T. GARCIA, CITY MANAGE <br />FROM: AL HOLIMAN, FINANCE DIRECTO <br />SUBJECT: AWARD A TWO YEAR CONTRACT FOR UTILITY BILL MAILING SERVICE TO <br />JUBILEE MAILING SERVICES, INC. IN THE ANNUAL AMOUNT NOT TO EXCEED <br />$30,000. <br />DATE: NOVEMBER 29, 1999 <br />BACKGROUND <br />On November 9, 1999 The Purchasing Division solicited a Request for Proposal for utility bill mailing <br />service, from six (6) local firms. The scope of services requested are pick-up, folding, inserting, sorting <br />and delivering the bills to the Post Office on a daily basis. The firm's prices were based on an <br />approximate billing of two thousand (2000) pieces per day. The Utility department often has additional <br />informational inserts and additional bill mailings. This increases the cost based on a per piece basis. The <br />additional insert costs for fiscal year 98/99 were approximately $14,000. This additional service would be <br />an increase to the contract based on the proposed price per piece by the awarded firm. <br />DISCUSSIONIANALYSIS <br />Three (3) proposals were received and evaluated by the Purchasing Division on November 22, 1999. The <br />evaluation process was based on the firms references and experience with similar volumes of mailing as <br />well as prices quoted for their services. The lowest responsible vendor's proposal was received from <br />Jubilee Mailing Services, Inc. Please refer to the attached proposal analysis. <br />ALTERNATIVES <br />The City can bring the mailing service in house, however, the cost of the equipment needed and the <br />additional employee needed to perForm this function would well exceed the annual cost of contracting for <br />this service. <br />FINANCIAL IMPACT <br />The City Council approved a budget for approximately $30,000 for these services. Funds for this service <br />are available in Electric — Customer Service — Professional Services account number 520-8000-8007- <br />2350. <br />ENVIRONMENTALIMPACT <br />Not applicable <br />RECOMMENDATION <br />Staff recommends the City Council award a two-year contract for utility bill mailing services to Jubilee <br />Mailing Services in the annual amount not to exceed $30,000. <br />Report Prepared By: Nicole Mihld, Purchasing Assistant <br />Attachments: Proposal Analysis <br />Page I of 1 Item #9 <br />