Report Prepared by: Jennifer Flachman, Senior Management Analyst
Title
SUBJECT: Authorization to procure Community Outreach and Informational Mailers with AdMail for Printing and Postage Services and Division D for Digital Marketing, Approve Purchases with AdMail in a not to Exceed Amount of $46,994.53 and Approve Purchases with Division D in a not to Exceed Amount of $42,217.50
REPORT IN BRIEF
Considers approval of community outreach and informational mailers with AdMail for printing and postage services and Division D for digital marketing, waiving the competitive bidding process, and approving purchases with AdMail in an amount not to exceed $46,994.53 and approve purchases with Division D in an amount not to exceed $42,217.50.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding due to standardization as permitted by Merced Municipal Code Section 3.04.210; and,
B. Approving the purchase in a not to exceed amount of $46,994.53 with AdMail for printing and postage services; and.
C. Approving the purchase in a not to exceed amount of $42,217.50 with Division D for digital marketing; and,
D. Authorizing the Purchasing Supervisor to issue the Purchase Orders.
Body
ALTERNATIVES
1. Approve, as recommended by the City Manager; or,
2. Deny; or,
3. Refer back to staff for further study.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
Fiscal Year 2025 - 2026 Budget.
DISCUSSION
The City of Merced continues to implement a comprehensive public engagement program to inform residents about municipal services, infrastructure needs, fiscal sustainability challenges, and community priorities. In support of these efforts, the City has partnered with the Lew Edwards Group (LEG) and FM3 Research to conduct public opinion research, stakeholder engagement, and community outreach activities consistent with City Council goals and priorities.
The City previously authorized and completed the first community mailer at a cost of $30,594.53 which was under the City Manager threshold. Staff is now requesting authorization for additional outreach activities consisting of a report-back mailer and targeted digital communications designed to provide residents with information regarding community feedback, City service priorities, infrastructure investments, and quality-of-life initiatives.
The report-back mailer, scheduled for distribution at the end of June 2026, will provide residents with a summary of feedback received through the City's public engagement efforts and direct residents to publicly available informational resources. Production, printing, and postage services for the mailer are estimated at $16,400 Combined with the $30,594.53 previously expended for the initial mailer, total expenditures of $46,994.50 with AdMail will exceed the City's $39,000 purchasing threshold, requiring City Council authorization.
In addition, staff is requesting authorization for a $42,217.50 digital outreach program recommended by the Lew Edwards Group. Consistent with industry best practices and previous outreach efforts, the program is intended to reinforce information provided through traditional mail by delivering short-form video and digital content across multiple online platforms to the same audience receiving the mail pieces. The campaign is designed to increase community awareness and direct residents to publicly available information resources regarding City services and priorities. The total cost of the digital outreach program exceeds the City's $39,000 purchasing threshold and therefore requires City Council authorization.
Staff further recommends that the City Council waive competitive bidding requirements for standardization of both the report-back mailer and digital outreach services. The Lew Edwards Group has developed and coordinated the City's outreach strategy and works with AdMail and the Division D to provide integrated messaging, audience targeting, production, and distribution services. Utilizing these established relationships will maintain continuity across communication platforms, ensure consistency in outreach materials, and avoid delays and inefficiencies associated with transitioning to alternative vendors.
Approval of the requested authorization will provide the necessary funding to implement the planned communications strategy and support continued public engagement efforts. These activities complement other outreach initiatives, including community meetings, digital communications, social media engagement, and public opinion research, helping ensure that residents have access to objective information regarding important City priorities and ongoing community engagement efforts.
Although the vendor estimates indicate that applicable sales tax is included, the two most recent invoices reflected sales tax charges more than the quoted amounts. Staff has included an additional allowance for sales tax in the estimated costs to account for any potential variance and ensure sufficient funding authority is available.
IMPACT ON CITY RESOURCES
The Economic Development Office budgeted for an Economic Development Administrator for FY 25/26 in the General Fund. Due to the Economic Development Administrator not being hired until April 27, 2026, salary savings are available to cover the additional costs of $58,618. If Council approves, staff will use salary savings to pay for the printing, postage, and digital marketing for the digital community outreach and informational mailers, therefore, not additional appropriation is needed.
ATTACHMENTS
1. AdMail Project Estimate
2. Division D Project Estimate