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File #: 23-0433    Version: 1
Type: Consent
In control: City Council/Successor Agency to the Redevelopment Agency/Public Financing Authority/Parking Authority Concurrent
Final action:
Attachments: 1. Attachment A - Agreement with InfoSend, Inc.




recommended action



It is recommended that the City Council approve a motion to:


1.                     Authorize the City Manager to execute a four-year professional service agreement, with the option to for one one-year extension, with InfoSend, Inc. for utility bill printing and mailing services in an initial not to exceed amount of $3,400,000, but subject to increases pursuant to the agreement.


2.                     Approve findings which support and justify an exception to the competitive bidding process pursuant to Stockton Municipal Code section 3.68.070(A)(3), where City held a competitive Request for Proposals.


3.                     Authorize the City Manager, or designee, to take appropriate and necessary actions to carry out the purpose and intent of the motion.





The City annually generates over 1.2 million pages of utility bills, delinquency notices, final termination notices, and miscellaneous accounts receivable invoices.  Because this volume is quite high, and specialized equipment is required to produce the various documents, the City contracts for printing and mailing services as a cost-effective means of performing the services.  The total estimated annual contract cost of $850,000 includes the costs for printing, paper, envelopes, mail handling, archiving and postage.  The annual cost of printing, paper, envelopes, and mail handling is estimated to be $150,000 but can vary depending on the volume of specific units.  The cost of postage, estimated to be $700,000 annually, is a pass-through fee and the City will reimburse InfoSend, Inc. (InfoSend) based on actual costs.


The transition plan and complete implementation of utility bill mailing and printing services from the City’s current vendor to InfoSend is estimated to be 90 days.






Since 2017, the City has contracted with Kubra America West, Inc. for document laser printing and mailing services.  The current contract expires July 31, 2023.  


Given the City’s document printing & mailing volume, the City seeks a well-established and reliable partner that provides the latest document production and distribution capabilities at a competitive price. 


Present Situation


On November 3, 2022, the City released a Request for Proposals (RFP) for Utility Bill Printing and Mailing Services (PUR 23-008).  The RFP process ensures a fair and competitive procurement of utility Bill printing and mailing services for the City.


On December 15, 2022, the City received four proposals from the following firms:


                     SENDnLINK, Inc.

                     Pre-Sort Center of Stockton, Inc.

                     InfoSend, Inc.

                     Kubra America West, Inc.


Upon reviewing all proposals, the City’s selection committee invited the two most responsive and qualified firms to be interviewed, which included the current vendor.  These two firms were rated based on their experience, breadth of service, customer service, stability, interview, and pricing.  The selection committee rated InfoSend as the most qualified vendor to provide utility bill printing and mailing services to the City.


In meeting and exceeding the scope of services as required in the RFP, the contract with InfoSend includes:


                     Document Processing, Printing, and Mailing - InfoSend will provide high-speed simplex or duplex printing, folding, and insertion; mail finishing and postal service; and web-based tools for tracking and management.

                     Online Production Monitoring Portal - Allows for real-time tracking and management of the entire document production print/mail process via web-based process monitoring tools. 

                     Postal Processing Optimization - InfoSend maintains technology and USPS compliance to ensure clients are getting the best postage rates and features from mailings. Infosend utilizes the following methods to ensure clients are mailing with optimal efficiency.

o                     Full Service with Intelligent Mail Barcode (IMb)

o                     Coding Accuracy Support System (CASS)

o                     USPS Move Updates (to ensure qualification for presort discounts)

o                     Detached Mailing Unit (DMU)

o                     Ongoing USPS enhancements

                     Document Redesign - Offers a modern document redesign for utility bills and accounts receivable notices at no additional cost to the city.

                     Disaster recovery - Multiple print centers will ensure continuous uninterrupted service.

                     Extensive experience with SunGard/Central Square (the City’s current billing system) utility billing data exports.

                     InfoSend manufactures its own standard envelopes ensuring supply and controlling costs by eliminating the middleperson. In addition to envelopes, InfoSend offers a robust Direct Communications department that is responsible for internal insert print requests, envelope messaging, and other ad hoc mailers.

                     Archiving-Print image archiving with included USPS mail tracking, this will allow secure access to PDF of documents for several months.




Pursuant to Stockton Municipal Code section 3.68.070(A)(3), City Council may approve findings which support and justify an exception to the competitive bidding process. The following findings support such an exception:


1.                     Use of the RFP process is appropriate for this Professional Services Agreement because it relies on the evaluation of professional qualifications and performance as the basis for the selection of a vendor, which is a typical practice for this type of work.

2.                     The City of Stockton does not have the equipment or staff required to effectively administer a Utility bill printing and mailing program.

3.                     InfoSend, offers comprehensive features and functionality that address the needs and expectations of our customers and the City and is the most highly functional option that will provide the greatest benefit to both customers and staff.




The InfoSend contract is based on per unit pricing.  Units can vary by mailing and by customer and can include paper, printing, return envelopes and inserts.  InfoSend’s pricing will be fixed for the first year of the contract, with future price increases allowed to account for increases in the cost of materials, labor, and other overhead in subsequent contract years. Thus, the annual cost of this service, including postage, based upon existing volume, is expected to increase by material costs and USPS postage rate increases. 


The Municipal Utilities Funds (Wastewater 610, Water 600, and Stormwater 620) and the General Fund (100) are used to pay for these services in proportion to the volume of each funding source.  AR Invoice activity paid by the General Fund is approximately $4,000 per year. The total contract costs, including postage, will be approximately $850,000 yearly based on current volumes and postage rates.  Appropriations sufficient for these services and anticipated costs are included in the FY 2023-24 Budget of the Administrative Services Department, Revenue Services Division, and the Municipal Utilities Department, Utility Billing Divisions. No additional appropriation is needed for these contract services.


Attachment A - Agreement with InfoSend, Inc.