Title
Resolution Authorizing a One-Year Extension of Contract No. 14-12 With Business Ink, Co. in the Estimated Amount of $570,000 for City Services Statement Printing and Mailing Services
Body
Department: Water Resources
Council District: All
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Steven D. Drew, 373-7893
Contact 2 and Phone: Jeff Kimel, 373-2639
PURPOSE:
The Water Resources Department requests to extend contract 14-12 with Business Ink, Co. for City Services Statement Printing and Mailing Services for an additional year.
BACKGROUND:
Contract 14-12 for bill printing, mailing preparation, and postage was awarded to Cash Cycle Solutions, Inc. (CCS) in October of 2012 for a three-year term with two optional one-year extensions. CCS was subsequently sold to Business Ink, Co. in 2014, and the City consented to the transfer and assignment of the contract to Business Ink, Co. at that time. This request is for approval of the second optional one-year extension to that contract.
Business Ink, Co has been a reliable service provider for the City’s approximately 1,200,000 bills mailed per year. Each time the City changes providers for this service, many steps must be taken to ensure that no issues are created for customers as a result of a vendor change. Having a stable service provider creates less risk to the City’s billing process by ensuring timely billings, acceptable printing and paper quality to ensure a smooth remittance process with the City’s equipment, and batching to achieve the lowest possible postage rates. Processing costs per bill under this contract are the lowest the City has seen in over 15 years.
The 2012 RFP was mailed out to 13 possible vendors. At the time, no M/WBE vendors were identified. The bid was also offered on the State of NC IPS system, which would have been available to any HUB certified vendor in our state. Business Ink, Co., the current service provider, is a certified WBE vendor.
BUDGET IMPACT:
Funds are budgeted for this contract extension in the following FY 2016-2017 Water Resources Operations Fund accounts: 501-7012-02.5211 for postage in the estimated amount of $470,000, and 501-7012-02.5429 for bill printing and processing in the estimated amount of $100,000. Payments on this contract are contingent upon the approval of sufficient appropriations when the FY 2016-2017 budget is adopted.
RECOMMENDATION / ACTION REQUESTED:
The Water Resources Department recommends approval of contract 14-12, contract extension 2 with Business Ink, Co. in the estimated amount of $570,000.
COMMITTEE ACTION: This item was referred to Council by the Infrastructure Committee.