Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute A Blanket Purchase Agreement With Cathedral Corporation, LLC For Utility Bill Print And Mailing Services In An Annual Amount Up To $300,000.00 For A Period Of Three Years, With An Option To Renew For Two Additional One-Year Periods, In Accordance With 38.43(A) Of The Procurement Code.
Strategic Plan Focus
Economic Vitality
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The Department of Public Utilities invoices more than 40,000 customer accounts for water, sewer, and stormwater charges monthly. Since September 28, 2018, these billing services have been outsourced to Cathedral Corporation, LLC (“Cathedral”). Cathedral’s services include billing envelope provision, labeling, folding, insertion, and mailing. The services supplied by Cathedral have been consistently satisfactory.
On August 29, 2018, the City Commission approved piggybacking on Hernando County’s contract with Cathedral Corporation, LLC for an initial two-year term via Resolution. On April 18, 2018, Hernando County’s solicitation number 18-T00039/DK was opened and awarded to Cathedral Corporation, LLC for a two-year initial term with a provision for three additional one-year renewal periods.
On September 28, 2022, Public Utilities began a third one-year renewal period with Cathedral for an estimated annual cost of $263,658.58. This final renewal ends on September 27, 2023.
On March 6, 2023, Request for Proposals Number IFB-064-23-JJ was electronically advertised on OpenGov.com in accordance with Section 38.43(A) of the Procurement Code. The RFP resulted in proposals from four firms by the response due date, including Cathedral. Cathedral was found to be the lowest responsive and responsible bidder.
The estimated total cost for the proposed services is $86,556.60 annually, which does not include USPS postage charges. The current annual postage average is calculated at $15,000.00 per month ($180,000.00 per year). An additional amount of $33,443.40 (13% of printing and postage charges) is included in the agreement as a contingency for possible USPS rate increases and additional printing and mailing services.
Fiscal Impact
Funding for the blanket purchase order has been requested in the FY 2024 Operating Budget in account number 442.400301.53600.542010.000000.000.000 and will be budgeted in subsequent fiscal years’ budgets subject to approval and adoption by the City Commission.
Recommended for inclusion on the agenda by:
Phyllis Shaw, CGFO, Deputy Director/Finance, Department of Public Utilities
Vincent Morello, P.E., Director, Department of Public Utilities
Gus Zambrano, Assistant City Manager/Sustainable Development
Attachments
Resolution - Cathedral Corporation, LLC 2023
B003181 PA300000006758576 DRAFT - Cathedral Corporation, LLC 2023
Proposal Report - Cathedral Corporation, LLC 2023
Bid Tabulation Sheet-IFB-064-23-JJ - Cathedral Corporation, LLC 2023
Notice of Intent to Award-IFB-064-23-JJ - Cathedral Corporation, LLC 2023
Utility Bill Print and Mailing Services-IFB-064-23-JJ - Cathedral Corporation, LLC 2023
Certificate of Liability Insurance - Cathedral Corporation, LLC 2023