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Home My WebLink AboutR-00-0912J-00-911 10/26/00 RESOLUTION .NO . 9 1 A RESOLUTION OF THE MIAMI CITY COMMISSION APPROVING THE ACQUISITION OF MAILING SERVICES, FOR THE DEPARTMENT OF GENERAL d, SERVICES ADMINISTRATION, GRAPHICS REPRODUCTION DIVISION, FOR CITYWIDE DEPARTMENTAL USE FROM ARROWMAIL PRESORT COMPANY, INC., UNDER EXISTING MIAMI-DADE COUNTY CONTRACT NO. 5913-2/00-2, EFFECTIVE UNTIL APRIL 30, 2001, AND SUBJECT TO ANY EXTENSIONS THERETO BY MIAMI-DADE COUNTY, AT A TOTAL ANNUAL AMOUNT NOT TO EXCEED $14,000; ALLOCATING FUNDS FROM THE BUDGETS OF THE VARIOUS USER DEPARTMENTS, SUBJECT TO BUDGETARY APPROVAL; AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. WHEREAS, the Department of General Services Administration has realized a substantial cost savings for mailing services of at least $1,000 monthly by utilizing existing Miami -Dade County Contract No. 5913-2/00-2, effective until April 30, 2001, and subject to any extensions thereto by Miami -Dade County; and WHEREAS, the City Manager and the Director of General Services Administration recommend that an agreement for mailing services from Arrowmail Presort Company, Inc., a vendor approved under the Miami -Dade County contract be approved; and CITY COMMISSIOR MEETING OF 0 CT 2 6 2000 �� WHEREAS, funding is available from the various user departments budgets, subject to budgetary approval; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The acquisition of mailing services for the Department of General Services Administration, Graphics Reproduction Division, for Citywide departmental use from Arrowmail Presort Company, Inc., under existing Miami -Dade County Contract No. 5913-2/00-2, effective until April 30, 2001, and subject to any extensions thereto by Miami -Dade County, is approved, at a total annual amount not to exceed $14,000, with funds allocated from the budgets of the various user departments, subject to budgetary approval. Section 3. The City Manager is authorized'''/ to execute the necessary documents, in a form acceptable to the City Attorney, for said purpose. 1� The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. Page 2 of 3 00--0 0 Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor .2/ PASSED AND ADOPTED this 26th day of October , 2000. JOE CAROLLO, MAYOR 1h acaofdance with Miami Code Sec. X46, since the Mayor did not Indicatelioprovaj oi this legislation by signing it in the designated place provided, said legisla'ora now becomes effective with the elapse of ten (90) from the ate of C Ion action regarding same, without the Mayor eue ATTEST: e W41rpf F66man, CityClark WALTER J. FOEMAN CITY CLERK AND CORRECTNESS:C/ A%rEJANMO VILARELLO CIT/ATTORNEY 4777:BSS z/ If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 3 of 3 0 ��+ 0 0 CITY OF MIAMI, FLORIDA Amil INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and Members DATE: of the City Commission SUBJECT: FROM Carlos A. Gimenez REFERENCES City Manager ENCLOSURES: RECONEWENDATION SEP 2 7 20M FILE: Proposed Resolution Authorizing Mailing Services - Miami -Dade County Bid No. 5913-2/00-2 It is respectfully recommended that the City Commission adopt the attached Resolution authorizing the contract for mailing services, from Arrowmail Presort Company, Inc., Dade County/Minority vendor, located at 8345 N.W. 74 Street, Miami, Florida 33166, under an existing Miami -Dade County Contract No. 5913-2/00-2, effective through April 30, 2001, subject to further extensions by Miami -Dade County, in a total annual amount not to exceed $14,000, for the Department of General Services Administration, Graphics Reproduction Division. Allocating funds therefore from various user departments and requiring budgetary approval of funds to utilize this service from individual departmental accounts prior to usage and authorizing the purchase of said mailing services pursuant to any extensions to the Miami -Dade County contract. BACKGROUND The Department of General Services Administration, Graphics Reproduction Division (Mailroom), processes approximately 400,000 pieces of outgoing U.S. mail annually at a cost of $270,000. This figure could be reduced by at least $1,000 monthly utilizing a Miami -Dade County contract for presort mailing services. The United States Post Office has introduced discount rates for customers meeting guidelines for "automated mail". These rates are structured to provide incentives for customers to barcode and presort their mail prior to delivery to the Post Office. Unfortunately, qualifying mail for automated ` rates requires very expensive equipment that would not be cost effective to purchase and maintain. Automated rates can be achieved through the use of private presort mailing facilities. Various municipalities and agencies have realized substantial savings utilizing the Miami -Dade County contract. This service will provide several cost saving options that would benefit the City and streamline our mail operation. Funding for this service will come from the savings achieved from reduced postage costs citywide. It is therefore recommended that award be made under existing Miami -Dade County Contract No. 5913-2/00-2. 71, CAG 00-- 912 Budgetary Impact Analysis 1. Department General Services Adm Division Graphics Reproductions 2. Agenda Item # (if available) 3. Title and brief description of legislation or attach ordinance/resolution: Proposed Resolution Authorizing Mailing Services under an existing Miami -Dade County Contract No. 5913-2/0- 4. _ Is this item related to revenue? NO: X YES (If yes, skip to item #7.) 5. Are there sufficient funds in Line Item? YES: _ Index Code Minor Obi. Code Amount $ NO: ! Complete the following questions.- 6. uestions.6. Source of funds: Amount budgeted in the Line Item $ Amount needed in the Line Item $ Sufficient funds will be transferred from the following line items: ACTION ACCOUNT NUM 3ER ACCOUNT NAME TOTAL Indez/Minor Object/Pro'ect No. From $ To $ 7. Any additional comments? Allocating funds therefore from various user departments and requiring budgetary approval of funds to utilize this service from individual s7 a? art mental antniintc pri r%r ;tn 3cagp anA alithor 2 dig t,�ia p;ur-6h r, cnf said mailing ng gervi cPG pursuant- to ani ext=nci nnc to the Miami -Dade County contract. Approved b 8.q - * t Departme t D' ctor/D signee Da FOR DEPARTMENT OF MANAGEMENT AND BUDGET USE ONLY Verified by: Verified by: Department of Management and Budgetr/Designee Budget Analyst DateL'L OO Date `Iz2d� . ... .:..'; ±vi_ i•ri'iTitL"S:=ili��.i;vl - Dean De Jong, Acting Director = March 7, 2000 General Services Administration Mailing Services Milton izell, Superintendent G.S.A./ Graphic Reproductions Division 2 The General Services Administration Graphic Reproductions Division Mailroom processes approximately 400,000 pieces of outgoing U.S. mail annually at a cost of $270,000. This figure could be reduced by at least $1,000 monthly utilizing a Dade County contract for presort mail services. The United States Post Office has introduced discount rates for customers meeting guidelines for "automated mail". These rates are structured to provide incentives for customers to barcode and presort their mail prior to delivery to the Post Office. When mail is prepared in this manner, it requires less personnel to process and can be sorted to the carrier level. The City of Miami produces a large volume of first class mail under (loz.) which costs $.33 to mail within the United States. The same mail meeting U.S. Post Office "automated mail" specifications could cost as little as $.243. To qualify for automated rates, mail must first be barcoded. A machine optically scans the mailing address, converts it to a (11) digit delivery point barcode and prints it on the envelope. The second step is presorting. Mail is grouped in zip code order with a minimum of 150 pieces per zip code to achieve the greatest savings. Currently, none of the mail processed by the Graphic Reproductions Division Mailroom qualifies as automated mail. Qualifying mail for automated rates requires very expensive equipment that would not be cost effective to purchase and maintain. Automated rates can be achieved through the use of private presort mailing facilities. Mail from various companies and government agencies are collected, grouped together, barcoded and presorted. This bulk approach insures that the minimum number of mail pieces is sent to each zip code. Once the mail is barcoded and presorted it is delivered to the General Mail Facility the same day. Mail that cannot be scanned and barcoded is separated and the address is manually retyped. This process is called "encoding". Encoded mail is delivered no later than the next day. Mail that cannot be barcoded or encoded will be process and upgraded to the next postage level and delivered to the General Mail Facility no later than the next day. Weekly activity reports and statments are provided to analyze cost savings. The list below shows several scenarios for automated mail and the savings to the city. 00-- 912 AUTOMATED MAIL SAVINGS .Represents 85% of the City of Miami's daily mail output Barcoded/Presorted First Class Mail (under 1oz.) (Machine addressed mail pieces) . $0.01.5 barcoding/presorting per piece (Arrowmail Presort Company) 0.243 postage (U.S. Post Office) $0.258 total cost to mail using automated rates $0.330 full postage price $0.072 savings Represents 10% of the City of Miami's daily mail output Encoding/Presorted First Class Mail (under 1oz.) (Hand and machine addressed mail pieces) $0.040 encoding/presorting per piece (Arrowmail Presort Company) 0.243 postage (U.S. Post Office) $0.283 total cost to mail using automated rates $0.330 full postage price $0.047 savings Represents S% of the City of Miami 's daily mail output Presorted Flat (2.1 oz.) (Machine and hand addressed mail pieces) $0.040 presorted flat per piece (Arrowmail Presort Company) 0.699 postage (U.S. Post Office) $0.739 total cost to mail using automated rates $0.770 full postage price $0.031 savings GOVERNMENT ACCOUNTS (Utilizing Miami Dade Contract) Miami Dade County Miami -Dade Library Miami Dade Aviation City of Coral Gables Hialeah Gardens Attached you will find the Miami Dade County Contract (bid# 5913-2/00-1) for Mail Services awarded to Arrowmail Presort Company, Inc. There are several cost saving options that would benefit the City and streamline our mail operation. Funding for this service will come from the savings achieved from reduced postage costs citywide. Your approval is respectfully requested to proceed with piggybacking on this contract for mailing services. Approved Date Dean Deong, g Director �, z 00'12 TO FROM • CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM Lourdes Lopez, Assistant to the Director General Services Administration . U Milton Mizell, Superintendent G.S.A./ Graphic Reproductions Division 0 DATE : March 29, 2000 FILE: SUBJECT: Mailing Service Cost REFERENCES: ENCLOSURES: Below you will find the estimated annual cost of mail services to be provided to the City of Miami by Arrowmail presort, Inc. under the Miami Dade County Contract (bid# 5913- 2/00-1). 1. This represents 75% of the City of Miami 's daily mail output Barcoded/Presorted First Class Mail Machine addressed mail pieces $4,500.00 2. This represents s 20% of the City of Miami 's daily mail output Encoding/Presorted First Class Mail Hand & machine addressed mail pieces $3,200.00 3. This represents 5% of the City of Miami's daily mail output Presorted Flat/Fats Machine and hand addressed mail pieces $800.00 4. Service provided on an as needed basis Fastforward and Address Correction $2,000.00 5. Service provided on an as needed basis Applying Additional Postage $1,500.00 6. Service provided on an as needed basis Postage $2,000.00 Total Annual Cost $14,000.00 Funding will come from the budgets of various departments utilizing this service citywide. [UT m c:' Dean De Jong, Director 00- 912 CONTRACT AWARD SHEET - ADDENDUM NO.1 TO: ALL DEPARTMENTS DATE: May 13, 1999 FROM: METROPOLITAN DADE COUNTY SUBJECT: BID NO. 5913-2/00-1 GSA PROCUREMENT MGMT DIV. MAILING SERVICES Please note the following changes: The Library Department has accessed this contract with an allocation of $50,000.00 These fKnds were deducted from Unallocated Funds. ALL ELSE REMAINS THE SAME Diane LeRay, CPPB d 00- 912 CONTRACT AWARD SHE* BID NO.: 5913-2-00-1 (Previous Bid No: 5913-2/00) MAILING SERVICES CONTRACT PERIOD: May 1, 1999 thru April 30, 2000 COMMODITY CODE: 915-58 OTR YEARS: Two (2) PART 91: VENDORS AWARDED F.E.I.N. 65-0260760 VENDOR: Arrowmail Presort Company, Inc. STREET: 8345 N.W. 74" Street CITY/STATE/ZIP: Miami. Florida 33166 F.O.B. TERMS: Destination PAYMENT TERMS: Net DELIVERY: As Required PHONE: (305) 591-0024 FAX: (305) 591-0025 CONTACT: Mark Probinsky PART #2: ITEMS AWARDED 1. Barcode/Presort First Class (1 & 2 oz.) $0.015/per piece Mail (Machine addressed mail pieces) OPTIONS: - = A. Encoding/Presort First Class (I & 2 oz.) 50.04/per piece (Machine addressed mail pieces) B. Encoding/Presort First Class( I & 2 oz.) 50.04/per piece (Hand addressed mail pieces) C. Presort Flats and Fats 50.04/per piece (Hand and machine addressed) D. "FASTforward" and Address Correction 50.10/per piece Information (Hand copies provided to dept.) E. Fee for applying additional postage 50.005/per piece F. Service Fees — Standard Mail I . Metering 50.01/per piece 2. Barcoding 50.02/per piece 3. Encoding 50.03/per piece 4. "FASTforward" & Address Correction 50.10/per piece Information (Hand copies provided to dept.) 00- 912 PART #3: AWARD wFORMAMOPi ( )BCC (X )PMD AWARD DATE: 4/30/99 AGENDA ITEM #: N/A BIDS & CONTRACTS RELEASE DATE: 4/30/99 OTR YEAR: 15'of 2 ADDITIONAL ITEMS ALLOWED: N/A . SPECIAL CONDITIONS: Insurance —Type 1 TOTAL CONTRACT VALUE: $440,000.00 MODIFIED CONTRACT VALUE: N/A USER DEPARTMENT DOLLAR AMOUNT e ALLOCATED GSA Materials Management $200.000.00 Clerk of Courts $120,000.00 Aviation $ 70,000.00 SR. PROCUREMENT AGENT: Diane LeRay;'CPPB 00_ 9J6 MIAMI-DADE COUNTY BID NO. 5913-2/00-2 ITEM: Mailing Services DEPARTMENT: GSA, Graphics Reproduction Division TYPE OF PURCHASE: Short Term REASON: The Department of General Services Administration, Graphics Reproduction Division needs to secure a contract for mailing services. RECOMMENDATION: It is recommended that the award be made to Arrowmail Presort Company, Inc., for the provision of mailing services, awarded under an existing Miami - Dade County Contract No. 5913-2/00-2, effective through April 30, 2001, subject to any extensions thereto, for the Department of General Services Administration, Graphics Reproduction Division, at a total annual amount not to exceed $14,000; allocating funds therefore from various user departments and requiring budgetary approval of funds to utilize this purchase from individual departmental accounts prior to usage. Ju rter Director o ig Vv Dat Award Under Dade County Contracts