94-264 Resolution No. 94-264
RESOLUTION
AUTHORIZING EXECUTION OF AN AGREEMENT WITH
DIRECT RESPONSE RESOURCE, INC.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Richard B. Helwig, City Manager, and Dolonna
Mecum, City Clerk, be and are hereby authorized and directed
to execute an agreement on behalf of the City of Elgin with
Direct Response Resource, Inc. for services in connection with
vehicle license applications, a copy of which is attached
hereto and made a part hereof by reference.
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: September 28, 1994
Adopted: September 28, 1994
Omnibus Vote: Yeas 6 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
A,-
1
AGREEMENT
THIS AGREEMENT is hereby made and entered into this
30g day of 1994, by and between the CITY OF
ELGIN, ILLINOIS, a municipal corporation (hereinafter referred
to as "City" ) and DIRECT RESPONSE RESOURCE, INC. , an Illinois
corporation (hereinafter referred to as "DRR" ) .
NOW, THEREFORE, in consideration of the mutual
promises and covenants contained herein, the sufficiency of
which is hereby acknowledged, the parties hereto hereby agree
as follows:
1. DRR shall print, provide and mail all vehicle
license renewal applications which may be directed by City' s
Finance Director for the period of October 1, 1994, through
October 31, 1994 .
2 . DRR shall provide all services required of it
pursuant to the terms of this agreement on or before
October 31, 1994 .
3 . The City will provide a vehicle license tape on
or before October 21, 1994 .
4 . Time is of the essence of this agreement.
5 . City shall pay DRR a total sum based on the
number of applications created and mailed by DRR pursuant to
this agreement according to the following rates :
Number of Applications Price Per Thousand
27 , 000 - 30, 999 $308 . 70
31,000 - 38,999 285. 87
39 ,000 - 41,999 260 .74
42 ,000 or more 254 . 29
ift
5 . Nothing in this agreement shall be construed to
create an agency, employment or partnership relationship or
agreement between the parties hereto. DRR shall be considered
to be an independent contractor.
6 . The terms of this agreement shall be severable.
In the event that any of the terms of this agreement are found
to be void or otherwise unenforceable, the remainder of this
agreement shall remain in full force and effect.
7 . This agreement shall be subject to and governed
by the laws of the State of Illinois .
CITY OF ELGIN
By \A-C et
Richard B. Helwig
City Manager
Attest:
67
CieClerk
Y
DIRECT RESPONSE RESOURCE, INC.
an Illinois corporation
B
2
1
Elm1j&;, Agenda Item No .
04 -... e:
a
September 6 , 1994
TO: Mayor and Members of the City Council
FROM: Richard B. Helwig, City Manager
SUBJECT: Preparation and Mailing 1995 Vehicle License
Application.
PURPOSE
The purpose of this memorandum is to request City Council
approval for the proposal by the Direct Response Resource,
Inc. to mail the City's 1995 vehicle license applications .
BACKGROUND
rk Each year the City of Elgin mails the next year' s vehicle
license application from the current file of vehicle license
applicants . The process involves ordering forms, processing
vehicle license files, printing the applications, bursting
the printed forms and finally mailing the applications.
Purchasing and three divisions of Finance are involved in the
process to produce a vehicle license application.
The Direct Response Resource (DRR) , proposes to streamline
the process by providing all the associated services to pro-
duce and mail an application. DRR offers a quality product
which will allow City personnel to focus their time on other
projects .
DRR provides this economical package by merging vehicles
owned by an individual onto one application form and uses the
first class postage rate for Carrier Route Presort. The
Vehicle License Application is a new concept for DRR however,
they have served First Chicago, Continental Bank, City Bank
and Abbott Labs in Direct Marketing Consultation and produc-
tion.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
None.
r
1995 Vehicle License Applications
September 6, 1994
Page 2
F
FINANCIAL IMPACT
The 1994 budget provides funds to order forms and to produce
and mail the vehicle license applications. The estimated
expense for the city to process the vehicle license applica-
tions is $17 ,585 .
The DRR package for the service and estimated postage is
$17,562 . Although there are no direct financial savings, a
substantial benefit is achieved by saving staff time (60
hours) and computer/printer time (27 hours) which can be
directed toward other projects. The cost for the service
provided by DRR ($9,512) will be off set primarily by savings
in postage and printing. Therefore, there will be no net
impact on the 1994 Budget.
LEGAL IMPACT
A written Contract shall be prepared.
RECOMMENDATION
It is recommended that the City Council accept the proposal
for the outsourcing of the 1995 vehicle license application.
Respectfully submitted,
I 1
(/ James R. Nowicki
Finance Director
•
Richard B. Helwig
City Manager
JRN:daw
Attachment
r
{
RESEPO SERESOURCE
2970 Moria Avenue • Suite 210
Northbrook Illinois 60062-2024 PROPOSAL
708 498-3993 •Fox 708 498-4090
August 26, 1994
Mr. Martin Gregory
Assistant Finance Director
City of Elgin
150 Dexter Court
Elgin, IL 60120 - 5555
Dear Marty,
The following information is a revision to my August 11 proposal. This revision is in result of
our recent telephone conversation.
Cost
Vehicle Sticker Application based on 35,000 mailed packages after file merge (conservative
estimate).
Lot Cost: $9,512 (Outgoing mailing package and fulfillment envelopes).
Planning Time Schedule
9-13-94 Proposal to be reviewed by board
9-27-94 Final approval given by board
9-29-94 Design meeting
10-7-94 Litho proofs
10-14-94 Receipt of live data
10-21-94 Stock produced
10-25-94 Live imaged proofs
10-31-94 Mail Date
r
Specializing in Direct Marketing Consultation and Production
3
r
Mr. Martin Gregory
August 26, 1994
Page -2-
First Class Postage Rates
Carrier Route Presort: 23¢
5-digit Zip+4 Barcoded 23.3¢
3-digit Zip+4 Barcoded 23.9¢
•The above prices are good for 30 days and can be locked in with a written
commitment.
• The above costs are inclusive of all the services necessary to produce, process and
mail your Vehicle Sticker Application, with the exception of postage.
• Costs are based on quantities listed. Variances of more than 10% above highest or
10%below the lowest quantity will cause prices to be adjusted accordingly.
• All billing will be administered by DRR
Outsourcing is becoming a business standard in the 1990's. The opportunity for you to focus
on your business and do what you do best assures your organization of increased effectiveness
and productivity. Thank you for your consideration.
Sincerely,
Derek Singleton
DS:jm
r
r - '
El •
�,t+ °�E� � , Agenda Item No. 1 i•-
o�
-...,tili,7
September 6, 1994
TO: Mayor and Members of the City Council
FROM: Richard B. Helwig, City Manager
SUBJECT: Bid #94-070 - 1995 Vehicle Stickers
PURPOSE
The purpose of this solicitation is to award a contract for
the 1995 City Vehicle Stickers and miscellaneous business
licence decals .
BACKGROUND
�k Eight vendors were solicited and three bids were received for
tt the printing of the 1995 City Vehicle Stickers and the miscel-
laneous business license decals per the attached tabulation
sheet.
The face side of next year' s sticker features the 85th anni-
versary of the "Elgin National Watch Company Observatory" ,
which was selected by Council at your June 22nd Committee of
the Whole Meeting; the seat belt awareness reminder "Buckle
Up Elgin" will appear again on the reverse side of the stick-
er. A picture of each design is attached for Council ' s infor-
mation.
The low bidder, St. Louis Sticker Company, has performed this
same work for the City in past years having printed our annu-
al vehicle stickers and miscellaneous business licenses in
1990 and again last year.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Mr. Gary Kutina - Director of Observatory for School District
U-46 .
FINANCIAL IMPACT
r There are sufficient funds for this annual purchase in the
Finance Department' s budget under the general classification
"License Expense" (Account #010-2005-718-2402 Project
#201820) .
Mayor and Members of the City Council
Page 2
LEGAL IMPACTAll
None.
RECOMMENDATION
The recommendation is to award this contract to the overall,
low bidder, St. Louis Sticker Company, for a total amount of
$5,200 . 93 .
Respect ully submitted,
Michael A. Sarro
Purchasing Director
g- /Ml AI03,c
Richard B. Helwit
City Manager
MAS/db
A)
A,
4
TABULATION OF BIDS
CITY OF ELGIN o aa) '-1 v 0
3.1 ,--I .--H w c I
3-1 4 O do H N
(1) U) r-1 Hm O
,s4 ffl
Invitation No. #94-70 `° W `o° N
4-1o o -A r-1 + N
Ul •-1 > 34 H .-a CO pC
Date of Opening August 30, 1994 N m u 0 v H `° KC
3 H
Department Finance _ ,°a z 3 w0 MI
b o o H 0
4-1
4.3
t T g 3 ww
Item UNIT UNIT UNIT
Description QUANTITY
No. Q PRICE AMOUNT PRICE AMOUNT PRICE AMOUNT
1. Vehicle Stickers - 1995
A. Passenger 48,000 ea .063 $3024.00 .089 $4272.00
B. Truck 8,500 ea .063 535.50 .089 756.50
Combination price 56,500C $79.95/C 4517.18 3559.50 5028.50
ALTERNATE BID
Additional cost for printint
"Buckle Up Elgin & Seat Belt 1
Logo" on reverse side of Item
lA and 1B above. 56,500 ea 7.50/C 423.75 .03 1695.00 .0057 322.05
TOTAL ITEM ! & ALTERNATE BID $4940.93 $5254.00 $5350.55
2. Miscellaneous Decals - 1995
A. Scavenger 50 ea .063 3.15 1.079 53.95
Bl. Taxicab - Color: Red 50 ea .063 3.15 1.079 53.95
B2. Taxicab - Color: Black 50 ea .063 3.15 1.079 53.95
C. Food Delivery 200 ea .063 12.60 1.079 215.80
D. Tobacco 400 ea .063 25.20 .3746 149.84
E. Coin Operated Musical Device 100 ea .063 6.30 .3746 37.46
F. Vending Machine 500 ea .063 31.50 .3746 187.30
G. Automatic Amusement Device 300 ea .063 18.90 .3746 112.38
Combination price 1650/C 260.00/lqt
TOTAL ITEM 2 103.95 864.63
orb IPFM8 1 . S5200.93 I $5358.45 $6215.18
Delivery after award: 2-1/2-3 wks 30-45 days 20-25 working days
E13 -
EL
GIN NATIONAL WATCH 41,
COMPANY OBSERVATORY
1910 19903
'TIME FROM THE STARS" 14
I
v0X0I0X0 AAA L
ISi
9 .: 11
A HISTORIC LANDMARK PASSENGER 1995 YL £ LICENSE 00001
- -.
I
0
Buckle
Up
Elgin
00