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Home My WebLink AboutStaff Report 2311-2281CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, February 05, 2024 Council Chambers & Hybrid 5:30 PM Agenda Item 5.Approval of Amendment No. 2 to Contract S23184693 with Infosend, Inc. for Printing Services for the Utilities Department Programs and Projects to add $300,000 for a New Total Not to Exceed Amount of $555,000, and to Amend the Schedule of Rates. CEQA status: not a project. City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: February 5, 2024 Staff Report: 2311-2281 TITLE Approval of Amendment No. 2 to Contract S23184693 with Infosend, Inc. for Printing Services for the Utilities Department Programs and Projects to add $300,000 for a New Total Not to Exceed Amount of $555,000, and to Amend the Schedule of Rates. CEQA status: not a project. RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute Amendment Number 2 to contract S23184693 with Infosend, Inc. for printing services for the Utilities Department Programs and Projects to add $300,000 for a total not to exceed amount of $555,000 through January 31, 2026, and to amend the schedule of rates to include more types of printing services without increasing existing per-unit costs. BACKGROUND On February 1, 2023, the City awarded a contract to Infosend, Inc. to provide print services for the Utilities Department communication and outreach requirements. Printed materials are needed for communication on regulatory actions, rates, safety, infrastructure projects, customer programs, and customer service. Print services include, but are not limited to, monthly utility bill inserts, full page brochures, triple and bifold brochures, door hangers, envelopes, letterhead, flyers, posterboards, and more. Contracting with an outside print vendor is necessary because currently, the City’s Print Shop and mail room do not have the resources to perform this work in-house. Many of the Department’s print needs are high volume specialty items that require unique formatting, layout, folding, and mailing. The City’s Print Shop is unable to meet these needs at this time, however Utilities will work with the Print Shop in the coming year to determine whether more print materials can be shifted to in-house printing. Based on staff’s original estimates, Infosend, Inc. was awarded a contract of $255,000 for a total amount not to exceed $85,000 per year, for a three-year term. The original estimated contract dollar amount with Infosend, Inc. is not sufficient to cover the costs for these print services and therefore the annual not to exceed amount is recommended to be increased. DISCUSSION The City of Palo Alto Utilities (CPAU) Department provides electric, natural gas, water, and wastewater services to approximately 29,500 customers. Fiber optic service is currently available to commercial customers. Use of printed communication and outreach materials for the community are critical to the Utilities Department achieving its mission of providing safe, reliable, cost-effective, and sustainable services. Printed materials are necessary for CPAU to meet Federal and State regulatory requirements for public outreach about critical items such as gas safety awareness, drinking water quality, utilities rates, crisis, and emergency situations. Implementation and outreach about residential and non- residential customer programs are key to enable CPAU to meet mandates and goals for energy and water efficiency savings. Print services ensure CPAU informs customers about utility billing, meter reading, low-income customer programs, and account management services through the online MyCPAU portal. Per City rules and regulations, CPAU provides printed notifications to the public for capital improvement, operations, and maintenance projects. Local policies adopted by City Council such as the Sustainability and Climate Action Plan (S/CAP) require extensive customer outreach and marketing for participation in programs and initiatives to meet established goals. CPAU continues to introduce new technologies to improve customer service through adoption of a new Outage Management System (OMS), Advanced Metering Infrastructure (AMI), and fiber optic services. These endeavors require expansive outreach through print and digital means. During the first year of the contract with Infosend, Inc. it became evident that the original dollar amount allocated was insufficient to cover the costs for these print services. Staff recommend increasing the annual not to exceed amount. Staff also recommends amending the schedule of rates to include additional types of printing services without raising the unit pricing for the printing services already addressed in the agreement. While Infosend’s unit pricing has remained the same, more services from Infosend have been needed than originally anticipated. New programs and initiatives this year created the need for additional print services beyond the original estimate and additional programs are in development to align with the City’s Sustainability and Climate Action Plan (S/CAP), beneficial electrification for homes, buildings, and the transportation sector, and energy and water efficiency mandates. Over the years, additional outreach is required to meet compliance for regulations such as gas safety awareness, drinking water quality, and utilities rates. Print estimates for different types of materials that have informed this recommended contract not to exceed funding are below. These quantities and type of print materials will vary throughout the year based on programmatic and outreach needs as well as in house capacity. 1) Monthly utility bill inserts: 600,000 quantity 2) Direct mail postcards: 160,000 quantity 3) Brochures: 100,000 quantity 4) Rate changes notifications: 75,000 quantity 5) Miscellaneous projects: 30,000 quantity Bid Process The City issued a Request for Proposal through PlanetBids on August 16, 2022 to identify providers with experience working with municipal utilities to provide printing services. Proposals were due on September 9, 2022. Table 1 summarizes the solicitation process: Based on the evaluation, staff selected Infosend because of their municipal experience and lowest cost proposal. The award of the contract does not guarantee Infosend will be assigned any dollar amount, quantity, or type of printing materials. As a result of Council’s approval to maintain in-house print and mail services (Agenda Item 5; Staff Report 2310-2165)1, Utilities will work with the Print Shop to provision services in-house. The Print Shop is in the process of adding resources following Council’s approval in late 2023, which will increase capacity. FISCAL/RESOURCE IMPACT Funding for FY 2024 is available in the FY 2024 Utilities Operating Budget. Funding for subsequent years is subject to City Council approval of the annual appropriation of funds through the annual 1 Agenda Item 5, Staff Report 2310-2165 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13056 Proposal Descript ion Utilities Printing Serv ices (RFP 184693) Le ngth of Service 3 ye ars Numbe r of noti ces sent to ve ndors 232 Numbe r of proposals downloade d by vendors 22 Bi ds rece i ved 7 Tab le 1: S u mmary of Solicitation Process budget process. Table 2 summarizes the breakdown of the amendment amount for the term of the contract. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378. ATTACHMENTS Attachment A: Contract Infosend, Inc., Amendment No. 2 (S23184693) APPROVED BY: Dean Batchelor, Director Utilities Staff: Catherine Elvert, Utilities Communications Manager Ye ar Original Amendme nt Total 1 85,000$ 50,000$ 135,000$ 2 85,000$ 125,000$ 210,000$ 3 85,000$ 125,000$ 210,000$ Total 255,000$ 300,000$ 555,000$ Table 2: Breakdown of Amendment Vers.: Aug. 5, 2019 Page 1 of 6 AMENDMENT NO. 2 TO CONTRACT NO. S23184693 BETWEEN THE CITY OF PALO ALTO AND INFOSEND, INC. This Amendment No. 2 (this “Amendment”) to Contract No. S23184693 (the “Contract” as defined below) is entered into as of January 22, 2024 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and INFOSEND, INC., a California Corporation, located at 4240 E. La Palma Ave., Anaheim, CA 92807 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of printing services, as detailed therein. B. The Parties now wish to amend the Contract in order to increase compensation by Three Hundred Thousand Dollars ($300,000) from Two Hundred Fifty-Five Thousand ($255,000) to a new total not to exceed amount of Five Hundred Fifty-Five Thousand Dollars ($555,000) with no change to the contract term, and to amend the schedule of rates. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. S23184693 between CONSULTANT and CITY, dated February 1, 2023 as amended by: Amendment No. 1, dated September 6, 2023 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: “The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Five Hundred Fifty-Five Thousand Dollars ($555,000). The yearly rate for year one is not to exceed One Hundred Thirty-Five Thousand Dollars ($135,000) and years two and three shall not exceed Two Hundred Ten Thousand dollars ($210,000) per year. The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2 Vers.: Aug. 5, 2019 Page 2 of 6 payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.” SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES PREVIOUS. SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2 Vers.: Aug. 5, 2019 Page 3 of 6 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO _____________________________ City Manager APPROVED AS TO FORM: _____________________________ City Attorney or designee INFOSEND, INC. Officer 1 By:______________________________ Name:___________________________ Title:____________________________ Officer 2 By:______________________________ Name:___________________________ Title:____________________________ Attachments: EXHIBIT “C-1” “SCHEDULE OF RATES” (AMENDED, REPLACES PREVIOUS) DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2 President Russ Rezai Executive Vice President Roxana Weil Vers.: Aug. 5, 2019 Page 4 of 6 EXHIBIT C-1 SCHEDULE OF RATES AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT’S schedule of rates is as follows but not limited to the following: BID ITEM DESCRIPTION, WITH UNIT PRICE IN WORDS (PRICE IS INCLUSIVE OF ALL APPLICABLE TAXES) UNIT PRICE 1 03-compost-giveaway-station-march $ 0.16 Sample Item No. 1 from the RFP Attachment E – Cost Proposal 2 Bill Insert $ 0.16 Sample Item No. 2 from the RFP Attachment E – Cost Proposal 3 cpau_smartenergybooklet2018_v03 $ 1.00 Sample Item No. 3 from the RFP Attachment E – Cost Proposal 4 cpauwaterannual2020 $ 0.80 Sample Item No. 4 from the RFP Attachment E – Cost Proposal 5 CS 100 Door Hanger $ 0.50 Sample Item No. 5 from the RFP Attachment E – Cost Proposal 6 Door Hanger $ 0.65 Sample Item No. 6 from the RFP Attachment E – Cost Proposal 7 envelope2 $ 0.40 Sample Item No. 7 from the RFP Attachment E – Cost Proposal 8 Envelope $ 0.40 Sample Item No. 8 from the RFP Attachment E – Cost Proposal 9 gas-safety-brochure-2021-no-crops $ 0.18 Sample Item No. 9 from the RFP Attachment E – Cost Proposal DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2 Vers.: Aug. 5, 2019 Page 5 of 6 BID ITEM DESCRIPTION, WITH UNIT PRICE IN WORDS (PRICE IS INCLUSIVE OF ALL APPLICABLE TAXES) UNIT PRICE 10 Letter head $ 0.10 Sample Item No. 10 from the RFP Attachment E – Cost Proposal 11 Meter Read Cards a $ 0.20 Sample Item No. 11 from the RFP Attachment E – Cost Proposal 12 Meter Read Cards b $ 0.20 Sample Item No. 12 from the RFP Attachment E – Cost Proposal 13 pal032-billinsert-ev-3.2021 $ 0.18 Sample Item No. 13 from the RFP Attachment E – Cost Proposal 14 pal035-billinsert-water-3.2022revise $ 0.16 Sample Item No. 14 from the RFP Attachment E – Cost Proposal 15 pal035-billinsert-water-3.2022revise- commercial $ 0.16 Sample Item No. 15 from the RFP Attachment E – Cost Proposal 16 palo-alto-fiber-conversation-utility-insert-new $ 0.16 Sample Item No. 16 from the RFP Attachment E – Cost Proposal 17 printing services $ 0.10 Sample Item No. 17 from the RFP Attachment E – Cost Proposal 18 uaag-final-2021-brochure-insertct $ 1.00 Sample Item No. 18 from the RFP Attachment E – Cost Proposal 19 utility-insert-2.14-for-web $ 1.00 Sample Item No. 19 from the RFP Attachment E – Cost Proposal 20 AMI/Water Heating RES H20 Energy Tips $ 0.174 7x11, 4/4, folded to 7x3.67, 100% Recycled DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2 Vers.: Aug. 5, 2019 Page 6 of 6 21 RES Jan EV Charge RES Nov 2023 Heat Pump Water Heater $ 0.095 7x3.5, 100% Recycled 80# gloss book 22 Green Resources Guide $ 4.83 Digital print 4/4 8.5x5.5 20 pg. self-booklets on 100# gloss book w/100% recycled, Fold & Saddle stitch Carton Pack 23 CCR Postcards EDDM mailing to Residents, Businesses & Po boxes $ 0.137 3.88x9.25 Postcards on 100# 100% Recycled Gloss Cover 24 Letter $ 0.293 8.5x15.5 letter on 100% recycled 60# offset, #10 printed 1/0 envelope *Actual pricing will be provided at time of order and based on actual quantity. Unit pricing will remain constant. Recycled papers will be utilized if available. Total item price will be provided at time of order and based on actual quantity. The City does not guarantee a minimum or maximum order quantity. The total compensation for year one is not to exceed One Hundred Thirty-Five Thousand Dollars ($135,000) and years two and three shall not exceed Two Hundred Ten Thousand dollars ($210,000) per year. DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2