Title
An Ordinance approving the extension of Contract No. 2014-103/4R with Talco Direct, Inc., for Processing and Mailing of Water Utility Bills and authorizing the City Manager to execute the same by and on behalf of the City of Lee's Summit, Missouri. (F&BC)
Body
Issue/Request:
An Ordinance approving the extension of Contract No. 2014-103/4R with Talco Direct, Inc., for Processing and Mailing of Water Utility Bills and authorizing the City Manager to execute the same by and on behalf of the City of Lee's Summit, Missouri.
Key Issues:
-Per Section 8.1.3 “Extension” of the City’s Procurement Policy, an extension to a contract term that will cause the City to spend $50,000 or more annually must be approved by the City Council
-The term of Contract No. 2014-103/4R was extended to March 30, 2020 by contract Modification No. 2 for an approximate value of $45,000.00 for the annual term.
-Modification No. 3, proposed to extend the contract term for an additional 90 days (until June 30, 2020) as the City moves through the approval process for Contract No. 2020-010 for Processing and Mailing of Water Utility Bills. The new modification puts the total extension value of the contract over $50,000.00 thus requiring City Council approval of the extension.
-Talco Direct, Inc., has agreed to the extension at the current contract price.
Proposed City Council Motion:
FIRST MOTION: I move for second reading of an Ordinance approving the extension of Contract No. 2014-103/4R with Talco Direct, Inc., for Processing and Mailing of Water Utility Bills and authorizing the City Manager to execute the same by and on behalf of the City of Lee's Summit, Missouri.
SECOND MOTION: I move for adoption of an Ordinance approving the extension of Contract No. 2014-103/4R with Talco Direct, Inc., for Processing and Mailing of Water Utility Bills and authorizing the City Manager to execute the same by and on behalf of the City of Lee's Summit, Missouri.
Background:
Contract No. 2014-103 is in the last renewal. The Water Utilities Department, with assistance from the Procurement and Contract Services Division, issued Bid No. 2020-010 for Processing and Mailing of Water Utility Bills. The bid was posted on the City's website and the e-procurement site, Public Purchase. The City received six responses, but two of them were non-responsive. The four responsive bids and responses to questions were reviewed by the Water Utilities staff. The lowest, responsive bidder, KC Presort was recommended for award. The original timeline would have had the new contract in place by the end of January. However, with questions that arose during the legislative process, the award is still being considered by the elected officials. The extension of the current contract is needed to prevent an interruption of service to the Water Utilities Department and allow for a transition period for the new contract.
Impact/Analysis:
If the extension is not approved, its possible that Water Utility bills would not be issued until the new contract is awarded and the vendor is up to speed processing and mailing the bills.
Timeline:
Start: March 31, 2020
Finish: June 30, 2020
Presenter
Rick Gentry, Procurement and Contract Services Manager
Recommendation
Recommendation: Staff recommends approval of an Ordinance approving the extension of Contract No. 2014-103/4R with Talco Direct, Inc., for Processing and Mailing of Water Utility Bills and authorizing the City Manager to execute the same by and on behalf of the City of Lee's Summit, Missouri.
Committee Recommendation
Finance and Budget Committee (March 9, 2020) - A motion was made by Councilmember Forte, seconded by Councilmember Carlyle, that this Ordinance be recommended for approval to the City Council. The motion carried by unanimous vote.