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CITY OF CARMEL-BY-THE-SEA
AGENDA BILL
B 1019
September 1 2015
Consent Calendar
TO: Honorable Mayor and Members of the City Council
Douglas J Schmitz, City Administrator
FROM:
Sharon Friedrichsen, Director
of
Budget and Contracts
SUBJECT: Resolution Authorizing the City Administrator to
Execute a Professional Services
Agreement with Peninsula Messenger Service for Mail Delivery
Service
AMOUNT OF EXPENDITURE
$ 49,500 or $34,500
AMOUNT BUDGETED
$ 54,000
APPROPRIATION REQUIRED 0
RECOMMENDATION
1. Adopt a resolution authorizing the City Administrator to
execute a Professional Services Agreement
with Peninsula Messenger Services for mail delivery services for
a three year term for a not to exceed
amount of $154,500 or
2. Adopt a resolution authorizing the City Administrator to
execute a Professional Services Agreement
with Peninsula Messenger Services for mail delivery services for
a three year term for a not to exceed
amount
of
$109,500.
SUMMARY
The City has contracted with a private mail courier service for
the last fourteen years to deliver mail to
residents as an alternative to residents picking up their mail
at the post office. As part
of
the ongoing
review of contracts and service needs, the City issued a Request
for Proposals for this service n order
to determine if the City s obtaining the lowest possible cost
commensurate with quality needed per
Municipal Code §3.12.01 0.
The Notice Inviting Proposals was published twice in the
Monterey Herald and once
n
the Carmel Pine
Cone and mailed to eleven mail courier firms located within the
Monterey Peninsula. The City received
three proposals by the stated deadline and convened a panel
consisting of City staff and one resident
to evaluate the proposals and interview the firms. Evaluation
criteria included qualifications
of
the firm,
experience and cost. Costs of the proposals ranged from around
$50,000 to $75,000 per year. Based
upon the evaluation
of
the firms, it
s
recommended that the City entering into an agreement with
Peninsula Messenger Service for this service.
Peninsula Messenger Service's proposal assumed a cost
of
$33 per client for the first year, with an
escalation to $35 per client for the second and third year
of
the proposal. Approximately 125 residents
Council Meeting Date : 09/0 1/2015
Agenda Item: 16
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use the service and the level o participation has remained
fairly constant over time. Based upon 125
clients, cost
o
the service would be $49,500
or
year one.
However, before the agreement
is
executed, Council may wish to consider alternatives to the
service
delivery model. One possible option is to reduce the mail
delivery service from six days a week to three
days a week, due to a on-going decrease in the volume
o
mail. This option also has the added befit
o
reducing the cost o the service and the number of vehicle trips
in town . However, this would be a
significant change in the service level on the current
recipients that are accustomed to service six days
a week. The cost for this reduced level o service would
be
$23 per client
or
year one,
or
$34,500,
increasing to $25 per client,
or
$37,500 for years two and three o the multi-year agreement.
Under this
scenario, the City would save $15,000 a year, or $45,000 over
the course o a three year agreement.
PRIOR CITY COUNCIL ACTION
Council approved an amendment to the existing agreement with
Peninsula Messenger Service on 7
July 2015 (Resolution 2015-051) to extend the service
through
30
September 2015. Council adopted
Resolution 2006-12 on 7 March 2006 authorizing an agreement with
Peninsula Messenger Service.
ATTACHMENTS
1. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A PROFESSIONAL
SERVICES
AGREEMENT PENINSULA MESSENGER SERVICES FOR MAIL DELIVERY
SERVICES
IN
AN
AMOUNT NOT TO EXCEED $154,500 FOR 3 YEARS
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A PROFESSIONAL
SERVICES
AGREEMENT PENINSULA MESSENGER SERVICES FOR MAIL DELIVER
YSERVICES IN AN
AMOUNT NOT TO EXCEED $109,500 FOR 3 YEARS
Douglas J._ 16hmitz, City Administrator
Date:
/ F
Co
un
cil Meeting Date: 09/01/2015
Agenda Item: 16
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ATTACHMENT
1
RESOLUTION 2015-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT WITH PENINSULA MESSENGER SERVICE FOR MAIL
DELIVERY SERVICE FOR AN AMOUNT NOT TO EXCEED 154,500
WHEREAS, the City
of
Carmel-by-the-Sea wishes to preserve its quality of life and
community
character; and,
WHEREAS, part of the City's character is the absence
of house addresses and the use of post
office boxes at the local postal office; and
WHEREAS, some residents are unable to collect their mail at the
local postal office and the
City wishes to support a private mail courier service delivering
and collecting mail for residents; and
WHEREAS, a Notice Inviting Proposals for Mail Delivery Services
was issued by the City and
published in the Monterey Herald on July 25 and 29, 2015
respectively and in the Carmel Pine Cone
on August 7, 2015; and,
WHEREAS, upon evaluating the three proposals submitted, the City
wishes to enter into
agreement with Peninsula Messenger Services for a three year
contract for a total contract amount
not to exceed 154,500; and,
WHEREAS, professional services agreements exceeding 24,999.00
require City Council
approval to be valid .
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY
OF
CARMEL-BY-THE-SEA does hereby:
Authorize
th
e City Administrator to Execute an Agreement with Peninsula
Messenger Service
for a term of September 1 2015-June 30, 2018 for a contract
amount not to exceed 154,500
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA
on this 1
t
day
of
September 2015 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT:
COUNCIL
MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
SIGNED:
Jason Burnett, MAYOR
ATTEST:
Lee Price, Interim City Clerk
Council Meeti
ng
Da te: 09/01/2015
Agenda Item: 16
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ATTACHMENT
2
RESOLUTION 2015·
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT WITH PENINSULA MESSENGER SERVICE FOR MAIL
DELIVERY SERVICE FOR
N
AMOUNT NOT TO EXCEED 109,500
WHEREAS, the City of Carmel-by-the-Sea wishes to preserve its
quality of life and community
character; and,
WHEREAS, part
of
the City's character
is
the absence of house addresses and the use
of
post
office boxes at the local postal office; and
WHEREAS, some residents are unable to collect their mail at the
local postal office and the
City wishes to support a private mail courier service delivering
and collecting mail for residents; and
WHEREAS, a Notice Inviting Proposals for Mail Delivery Services
was issued by the City and
published
in
the Monterey Herald on July 25 and 29, 2015 respectively and
in
the Carmel Pine Cone
on August 7, 2015; and,
WHEREAS, upon evaluating the three proposals submitted, the City
wishes to enter into
agreement with Peninsula Messenger Services for a three year
contract for a total contract amount
not to exceed 109,500 and,
WHEREAS, professional services agreements exceeding 24,999.00
require City Council
approval to be valid
NOW , THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE
CITY OF
CARMEL-BY-THE-SEA does hereby:
Authorize the City Administrator to Execute an Agreement with
Peninsula Messenger Service
for a term
of
September 1, 2015-June
30
2018 for a contract amount not
to
exceed 109,500
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA
on this 1
t
day
of
September 2015 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
SIGNED:
Jason Burnett, MAYOR
ATTEST:
Lee Price, Interim City Clerk
Council Meeting
Da
te: 09/01/2015
Agenda Item: 16
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