The Public Works Department currently outsources the printing and mailing of utility bills which includes the billing for water, wastewater, and solid waste services for approximately 34,000 customers each month, as well as the mailing and printing of delinquent letters.  The current agreement with Dataprose is expiring and a Request for Proposals (RFP) was advertised on October 15 and October 22, 2015 to continue outsourcing the printing and mailing of the utility bills.  Proposals were due to the City by November 13, 2015 and fifteen proposals were received.  The RFP included estimated costs for data processing, printing, folding, inserting, pre-sorting, and mailing with all supplies to be provided by the vendor.  The RFPs were evaluated primarily on the ability to provide the required services, implementation timeline, ability to mail bills within 24 hours, vendor's experience providing services, and total cost competitiveness.  A selection committee made up of City staff reviewed the fifteen proposals and unanimously selected to negotiate with Infosend Inc. for a three-year agreement, with a one-year option to renew by mutual agreement.

City Council may:

• Approve the agreement with Infosend;
• Reject all proposals and direct staff to issue a new RFP; or,
• Disapprove the agreement and provide the service in-house.  The City would need to buy the necessary equipment for this work.

The approximate cost for all supplies, processing, printing, and mailing of the utility bills and late letters is $42,000 per year.  Postage is a pass through charge and is in addition to the $42,000 amount.  Public Works has sufficient funds in the FY16 budget to pay for the services.

Staff recommends that the City Council approve the agreement with Infosend Inc. for three years, with a one-year option to renew by mutual agreement.