| | | | | | | | REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS
BOARD MEETING DATE: October 16, 2018
CATEGORY: Consent - Health and Human Services-12.
SUBJECT:
Government Product Lease Agreement and Meter Rental Agreement with MailFinance Inc. for Mail Room Processing Equipment |
| | | | | | | | | DEPARTMENT: | Health and Human Services Agency-Regional Services
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| | | | | | | | Supervisorial District No. : All
DEPARTMENT CONTACT: Melissa Janulewicz, Branch Director, HHSA Regional Services, (530) 245-7638
STAFF REPORT APPROVED BY: Melissa Janulewicz, Branch Director, HHSA Regional Services
Vote Required?
Simple Majority Vote | General Fund Impact?
No General Fund Impact |
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| | | | | | | | RECOMMENDATION
Take the following actions regarding the Opportunity Center’s (OC) mail room mail processing equipment lease to approve and authorize the: (1) Chairman to sign a Why Wait Program Agreement with MailFinance, Inc., a Neopost USA Company (Neopost) at the current cost of $1,486.82 per month, paid in advance, with no maximum compensation, to receive new mail processing equipment under the terms of the current lease agreement until the end of the current term on November 5, 2018; (2) Chairman to sign a renewal Government Product Lease Agreement, which includes a Postage Meter Rental Agreement, Account Agreement, and an Online Services and Software Agreement, with Neopost at the current cost of $1,783.45 per month, paid in advance, in an amount not to exceed $107,007 to provide mail processing equipment for the period November 6, 2018 through November 5, 2023; and (3) Health and Human Services Agency (HHSA) Director, or any HHSA Branch Director designated by the HHSA Director, to sign minor amendments, including retroactive, that do not result in a substantial or functional change to the original intent of the agreement and do not result in an increase of compensation of more than 10 percent of the monthly total compensation for the period November 6, 2018 through November 5, 2023, as long as they otherwise comply with the Administrative Policy 6-101, Shasta County Contracts Manual.
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| | | | | | | | SUMMARY
The OC has been providing mail processing services to County Departments since 1986, including interoffice mail courier services and postage metering. The current equipment, acquired in November 2013, and the OC would like to replace the current equipment with more up-to-date equipment which has additional functions and benefits, such as but not limited to, electronically tracking certified mail.
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| | | | | | | | DISCUSSION
Shasta County entered into an Agreement with MailFinance Inc., a Neopost USA Company, with an effective date of November 6, 2013 to provide mail processing equipment to be used by the OC in the processing of daily mail for multiple County Departments and local agencies. The OC Mailroom can process up to 20,000 pieces of mail per day. It is imperative that the mailroom be able to meter and process mail as it arrives and on the day that it arrives. This allows the OC to meet the deadlines and business needs of County Departments. The OC is responsible for all service and maintenance costs, and a local business, North Valley Business Systems, is able to complete necessary service and repairs within 30 minutes of notification. This is crucial for the timely processing of mail.
The equipment the OC is currently leasing has a cost to the County of $1,486.82 per month. Through this “Why Wait Program Agreement”, along with the acceptance of the new lease Agreement, NeoPost will replace the current equipment with new equipment without an increase in monthly costs until the commencement of the new Lease Term. On the effective date of the new lease, November 6, 2018, the monthly lease fee will be $1,783.45 per month for 60 months. With the approval of Support Services Department-Purchasing Unit, we are recommending utilizing the National Association of State Procurement Officials (NASPO) contract negotiated/executed by the State of California, therefore satisfying the County’s competitive procurement requirements.
While there are other products on the market, the OC mailroom staff currently utilizes MailFinance Equipment. The OC tried a trial version of another product with a comparable price point, but it was not user friendly for the OC clients. Recently the Opportunity Center has converted to a new client case management system and a new time card computer system. Due to these system implementations, unfilled vacancies, the time needed to become effective with a new mailing software system would negatively impact client and business partner services. |
| | | | | | | | ALTERNATIVES
The Board could 1) choose not to approve the NASPO agreement, 2) request that we utilize competitive procurement, however this is not a recommended due to the inability to get equipment repaired timely, impacting the ability for the OC to process mail timely; 3) request we negotiate a new agreement. |
| | | | | | | | OTHER AGENCY INVOLVEMENT
County Counsel has approved the agreement as to form. Risk Management and the Information Technology Department have approved the agreement. The Support Services Department – Purchasing Unit has approved the use of the state agreement. This recommendation has been reviewed by the County Administrative Office.
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| | | | | | | | FINANCING
The Fiscal Year (FY) 2018-19 cost of the lease is estimated at $20,214.88, and is consistent with the amount included in the OC’s FY 2018-19 Adopted Budget. Funds to support this agreement come from OC charges to the departments served; and the department’s charges were also included in the FY 2018-19 Adopted Budget. No County General Funds are requested.
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