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Home My WebLink About22-8 Resolution No. 22-8 RESOLUTION AUTHORIZING EXECUTION OF A CHANGE ORDER NO. 1 WITH INFOSEND, INC. FOR THE PRINTING, MAILING AND EMAILING OF WATER BILLS AND DELINQUENT NOTICES (RFP 19-054) WHEREAS,the City of Elgin has heretofore entered into a contract with InfoSend,Inc. for the printing, mailing and emailing of water bills and delinquent notices; and WHEREAS, it is necessary and desirable to modify the terms of the agreement as is described in Change Order No. 1 attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Richard G.Kozal,City Manager,be and is hereby authorized and directed to execute Change Order No. 1,a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: January 26, 2022 Adopted: January 26, 2022 Omnibus Vote: Yeas: 9 Nays: 0 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk City of Elgin Change Order ELGIN, ILLINOIS CHANGE ORDER No. l CONTRACT: InfoSend, Inc. for Printing, Mailing and Emailing Water Bills and Delinquent Notices (RFP 19-054) SCOPE: The original contract consists of an initial term of two years through 12/31/21, with two one- year renewal options. This change order provides for a rate increase and extends the term of the contract by two years, from December 31, 2021 to December 31, 2023. It also provides that in the final year of the contract,the vendor may increase the rate by no more than the CPI inflation rate, REASONS FOR CHANGE: Due to unforeseen drastic cost increases and supply issues resulting in inflationary pressure primarily due to increased paper costs and labor shortages, Infosend, Inc. is unable to provide billing services for the original contract price. These significant cost increases were not fore- seeable when the contract was originally signed in early 2020, prior to the onset of the pandemic and its related financial impacts as described above. The price increase represents a negotiated 17.9 % increase in the rate price,which is 50%of the price increase of 34.8%originally requested by the vendor. The change order is in the best interest of the City of Elgin and is authorized by law. The change order is germane to the original contract as signed. SUMMARY OF CHANGES IN CONTRACT AMOUNT: The rate price contract amount is being increased for the remaining term of the contract per the following summary of the rate per page: ORIGINAL CONTRACT AMOUNT: $0.0933 per page TOTAL FOR CHANGE ORDER NO. 1: ADD $0.0167 per page PREVIOUS CHANGE ORDER(S): NONE TOTAL REVISED CONTRACT AMOUNT: $0.1 I per page 2021 TOTAL EXPENDITURE: $40,000.00 ESTIMATED 2022 REVISED TOTAL EXPENDITURE: $47,000.00 The original amount of the contract with InfoSend, Inc. is $0.0933 per statement page. Change Order No. 1 will increase the original contract amount by a total of$0.0167 per statement page, that sum rep- resenting an increase of seventeen point nine percent (17.9%) of the original contract amount. The new contract amount inclusive of all change orders is$0.11 per statement page. See attached rate sheet. For the final contract year commencing January 1, 2023, Infosend may increase the price rate up to an amount not to exceed the 2022 consumer price index for the CPI-U, IL-IN-WI, Chicago-Naperville- Elgin area. OTHER CONTRACT PROVISIONS: The term of the contract is extended by two years from December 21, 2021, and will now terminate on December 31,2023. All other contract provisions remain the'same. CHANGE ORDER No. 1 Agreed to this 26 day of January, 2022. Recommended by: FINANCE DEPARTMENT By: Debra Nawrocki Title: Chief Financial Director Date: 1/ `f /P�L Accepted by: INFOSEND, INC. By:(- --- Title: \J D_:t l Date: l � i Signa t� Approved by: CITY OF ELGIN By: Richard G. Kozal Title: City Manager Date: n 022 Signature: Legal Dept\Agreement\Change Order-l-InfoSend Inc-Water Bills-1-4-22.docx PROPOSED COSTS FOR PRINTING & MAILING SERVICES FOR WATER BILL STATEMENTS 1. Printing Services- $ $0.0492 —Per Thousand 2. Scanning Services- $ $0.005* Per CD 3. Insertion&Mailing Services- $ Included- Per Thousand 4. Warehousing Services (if applicable)$ Included —Per Thousand STOCK(200,000) S. Statement Stock $ $0,019 Per Thousand 6. Mailinw,Envelope $ $0.022 Per Thousand 7. Return Mailing Envelope $0.0198 Per Thousand PER ITEM COST (Based upon above information) S. Cost(ready to mail) $ $0.11 Per Item 9. Anticipated Mailing Cost $ $0,426 (postage) Per Item 10. Emailing Cost(if provided) $ $0.09 Per Item 11. Additional Insertions I additional insertion $0.0075 Per Item 2 additional insertions $0.0075 Per Additional Item PROGRAMMING COST 12. Cost to make changes to bill layout $ 175.00.. Per hour OR 13. Cost to make changes to bill layout $ 175.00 Per change 14. List any other miscellaneous service or handling fees below. *$0.005 "Scanning Services" included as 3 months storage in InfoSend's "Print Image Archive" available online and to third parties via AP1. Optional-NCOA address updates billed at$0,35 each "hit". Excess pages handwork surcharge per mail piece $0.30 plus outgoing flat envelope $0.185 Note: There would be no one time setup fee for the print and mail or email as these are already implemented. Proposer Name: InfoSend Inc. PROPOSED COSTS FOR PRINTING & MAILING SERVICES FOR SHUT OFF WATER NOTICES The City of Elgin also produces shut off water notices on the 1,, 10`1,and 201"of the month. Approximately 1,000 notices are mailed each billing date. The notices are printed on 81/2" x I I" paper and have a return envelope mailed with each notice. The notice will have a perforation placed 3"from the bottom of the form and run the full width of the form. Samples of the form are attached. Shut off water statement will consist of 2 colors, red and black. Envelope stock will have the same specifications as the water bill statement. 1. Printing Services - $ $0.0492 Per Thousand 2. Insertion&Mailing Services - $ Included Per Thousand 3. Warehousing Services(if applicable) $ Included Per Thousand STOCK 4. Notice Stock $ $0.019 Per Thousand 5. Mailing Envelope $ $0.022 Per Thousand 6. Return Mailing Envelope $ $0,0198 Per Thousand PER ITEM COST (Based upon above information) 7. Cost(ready to mail) $ $p.11 Per Item 8. Anticipated Mailing Cost $ $0.426 (postage) Per Item 9. Em.ailing Cost(if provided) $ $0.09 Per Item 10. List any other miscellaneous service or handling fees below. Optional NCOA address updates billed at $0.35 per "hit" Excess pages handwork surcharge per mail piece $0.30 plus utgoing flat envelope $0185 i Proposer Name: InfoSend Inc.