Report Prepared by: Michelle Zamudio, Revenue & Customer Service Supervisor, Finance Department
Title
SUBJECT: Approval of Service Agreement with ABS Direct, Inc for Printing and Mailing Services Through June 30, 2027
REPORT IN BRIEF
Considers approving a Service Agreement with ABS Direct, Inc through June 30, 2027, to align with the completion of Tyler Technologies conversion and implementation of all modules.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving Service Agreement with ABS Direct, Inc in the not to exceed amount of $605,000; and,
B. Authorizing the City Manager to execute all necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended; or
2. Refer matter back to staff for changes; or
3. Deny.
AUTHORITY
Chapter 3.04, Purchasing System, sets forth procedures for contracting for professional services.
CITY COUNCIL PRIORITIES
As provided in the Fiscal Year 2025/26 adopted budget.
DISCUSSION
The City currently contracts with ABS Direct, Inc. (ABS) to provide printing and mailing services for various billing statements. The billing statements are for utility billing, business license, and general billing. This service includes printing, folding and inserting the statements, as well as sealing, applying postage, and mailing.
The City Council had approved a five-year agreement on June 3, 2019, after the Finance Department conducted a Request for Proposal (RFP). On July 1, 2024, the City Council approved an extension which expired on December 31, 2025.
Under regular circumstances the city would have issued an RFP, however, the City has been implementing a new ERP which is converting Central Square operations to Tyler Technologies operations since 2020. The completion of the implementation will result in changes to all billing statements and the related printing and mailing processes. Due to this fact it would be difficult to issue an accurate RFP until the conversion and changes to city processes are complete.
The Finance Department had initially requested an extension of the original contract with ABS through December 31, 2025, because implementation had been expected to be complete by then with some time for evaluating the need for changes. There have been several delays to the project. Utility billing is the last module to complete and is scheduled for final implementation in July 2026. Staff is proposing a Services Agreement with ABS Direct, Inc. to continue the printing and mailing services from 1/1/2026-6/30/2027. Finance should be able to complete a RFP with the known changes to printing to recommend a printing and mailing agreement before this agreement would expire barring any major delays. ABS has provided a fee schedule with the rate per item for printing and mailing services through June 30, 2027. Based on the fee schedule, staff is estimating a not to exceed amount of $605,000 to cover the term of the agreement as follows:
Printing Services $172,225
Postage 432,775
Total $605,000
ABS is consistent and reliable. The company provides quality and timely service and has maintained a good working relationship with the city.
IMPACT ON CITY RESOURCES
The fees are 90% covered by water, wastewater, and refuse operating funds for utility bills and delinquent notices. Fees for business license and general bills are covered by the General Fund. No additional appropriation is needed for FY 25-26 as it is included in the adopted budget. FY 26-27 fees will be included in the budget process.
ATTACHMENTS
1. Services Agreement