DATE: June 4, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: AMENDMENT 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH INFOSEND, INC. FOR PRINT AND DISTRIBUTION SERVICES
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 1 to the Professional Services Agreement (PSA) with Infosend, Inc., in an estimated amount of $442,275 for a revised contract amount of $1,462,275, extending the term of the agreement to May 31, 2026 for data processing, printing, and mailing of utility bills, business license documents, and accounts receivable invoices and statements; and authorize the City Manager to execute the amendment.
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BACKGROUND AND ANALYSIS
In May 2022, the City Council approved a three-year PSA with Infosend Inc. for data processing, printing, and mailing of utility bills, business license documents, and accounts receivable invoices and statements in amount estimated to be approximately $340,000 annually based on historical volumes and services. The agreement allows for five one-year extensions.
The initial three-year contract set the pricing for materials and services provided by Infosend without any increase. Postage rates are a direct pass through from the United States Postal Service (USPS) and rate increases are automatically passed onto the City at the time the rate goes into effect.
Per the contract, optional extensions that are exercised will incur a Consumer Price Index (CPI) increase at the current CPI rate upon execution of the extension agreement. The CPI increase from May 2022 to January 2025 for All Items San Diego- Carlsbad is 11.2 percent and will be applied to per item charges (EXHIBIT A). A 10 percent increase to postage has been factored into the contract costs due to USPS's policy for rate changes in January and July of each year.
In addition, due to the recent instability of the commodities market, a contingency cost of $25,000 for extraordinary inflation of ma...
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