Subject:
Title
Renew service agreement for outsourced bill printing with Datamatx
Body
EXPLANATION AND SUMMARY:
In March 2013, the Town solicited quotes for outsourced bill printing for water and sewer bills. The Town selected Datamatx for a contract that was under $10,000. The Town has been very pleased with Datamatx's product, process, and customer service. We added vehicle license bills in September 2013, business license bills in January 2014, and dog tags in November 2014. In FY2017-18 business license and dog tag bills were brought in house with our new software. In FY2018-19 we will transfer vehicle license fee billing to Fairfax County, but we will continue to bill prior delinquent bills for one more year.
Datamatx’s services have served the Town well. Additionally, the Town is able to take advantage of Datamatx's agreements with the U.S. Postal Service to receive a lower postage rate per piece than the Town would have without purchasing additional software. The cost of postage through Datamatx averages $0.42 per piece instead of $0.49 and up if the Town were providing postage.
Due to the high number of bills for water and sewer and the established bill forms for the remaining delinquent vehicle license bills, we intend to continue to use Datamatx to print and mail these bills even though the conversion to Tyler-Munis has been completed. The amount to come from the general fund will be reduced from $11,500 last year to $1,000 for FY2018-19, and we expect this is the last year that general funds will pay for Datamatx services.
The Town wishes to renew the service agreement with Datamatx for printing and mailing of water and sewer regular and past due notices and vehicle license past due notices for delinquent bills prior to FY2018-19.
The cost of printing, paper, and postage is detailed by application as follows:
Printing and Paper
Water and sewer bills $7,000
Vehicle license bills $500
Total printing and paper: $7,500
Postage
Water and sewer postage $17,000
Vehicle license postage $500
Total postage: $17,500
Total for vendor: $25,000
Departmental Recommendation: Recommend approval
Finance Recommendation: Recommend approval
Purchasing Recommendation:
Town Attorney Recommendation: The Town may renew its service agreement with Datamatx or solicit bids in the discretion of Town Council.
Town Manager's Recommendation: I recommend the Town Council approve renewal of the service agreement with Datamatx for outsourced bill printing as presented.
Cost and Financing: $25,000
Account Number: 100-102-1024-11231-43308: $500
100-102-1024-11231-45203: $500
500-501-0000-50113-43308: $7,000
500-501-0000-50113-45203: $17,000
Decision Needed by This date: May 21, 2018
PROPOSED/SUGGESTED MOTION
Recommended Action
“I move to approve renewal of the service agreement with Datamatx for outsourced bill printing for a total of $25,000."
Or
Other action deemed necessary by Council.