Title
An Ordinance approving the award of Bid No. 2025-026, for the processing and mailing of utility bills, to Lineage Connect, for an initial term of one-year, with up to four, one-year renewals, and authorizing the City Manager to enter an agreement for the same by and on behalf of the City of Lee’s Summit, Missouri. (F&BC 2/3/25)
Body
Issue/Request:
This request was for the services necessary to print and mail approximately 300,000 utility bills as well as to provide services to process approximately 25,000 notices to customers annually.
Key Issues:
• Water Utilities has over 40,000 active accounts that require a bill to be generated each month.
• Approximately 36% of customers have chosen to receive an eBill reducing the number of printed/mailed bills significantly.
• To best produce delinquent notices, they have also been included in this bid.
• Mailing costs are included in the bid and processed as a past-through to Water Utilities for reimbursement. Mailing costs for the year 2025 are anticipated to be approximately $158,00.00
Proposed Committee Motion:
I move to recommend to City Council for approval of an Ordinance authorizing award of Bid No. 2025-026 , for the processing and mailing of utility bills, to Lineage Connect, for an initial term of one-year, with up to four, one-year renewals, and authorizing the City Manager to enter into an agreement for the same by and on behalf of the City of Lee’s Summit, Missouri.
Proposed City Council Motion:
FIRST MOTION: I move for second reading of an Ordinance authorizing award of Bid No. 2025-026 , for the processing and mailing of utility bills, to Lineage Connect, for an initial term of one-year, with up to four, one-year renewals, and authorizing the City Manager to enter into an agreement for the same by and on behalf of the City of Lee’s Summit, Missouri.
SECOND MOTION: I move for adoption of an Ordinance authorizing award of Bid No. 2025-026 , for the processing and mailing of utility bills, to Lineage Connect, for an initial term of one-year, with up to four, one-year renewals, and authorizing the City Manager to enter into an agreement for the same by and on behalf of the City of Lee’s Summit, Missouri.
Background:
The Water Utilities Department generated over 462,000 utility bills in FY24, of which over 292,000 customers received their utility bill through the mail. It is anticipated that as the City continues to grow additional utility bills will be generated for each new account. Utility Bills are generated in 4 cycles and mailed on the 7th, 14th, 21st and the second to the last day of the month in order to maintain consistent due dates that meet the 21-day payment cycle prescribed by Ordinance 32-71. Additionally, Water Utilities anticipates processing over 2,000 notices each month to delinquent accounts.
Water Utilities has outsourced this function to effectively meet the prescribed billing requirements at a cost-efficient rate. The service in this bid requires specific controls to manage costs, security and timeliness of the service. Included in the specifications are details related to the management and control of inventory stock levels to ensure that stock is not consumed over the specified 3% for printing equipment errors or misfeeds. Additionally, quality control measures have been added to increase the reliability of the process and ensure that customers will receive statements and notices as specified. Due to the date-sensitivity of notices and statements, Water Utilities has required a 24-hour processing time to meet these conditions.
Presenter
Brent Boice, Assistant Director of Business Services
Recommendation
Staff recommends award of Bid 2025-026 to Lineage Connect.
...Committee Recommendation
A motion was made by Mayor Pro Tem Lopez, seconded by Councilperson Rader, that BILL NO. 25-034 be recommended for approval to the City Council. The motion carried by a unanimous 3-0 vote.