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Agenda Item
ASR
Control 21-000494 |
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MEETING DATE: |
06/22/21 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
All Districts |
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SUBMITTING
Agency/Department: |
Treasurer-Tax Collector (Approved) |
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Department contact
person(s): |
Shari L. Freidenrich (714) 834-7625 |
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Jennifer Burkhart (714) 834-6143 |
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Subject: Amend Contract with
Financial Statement Services, Inc for Bill Processing
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ceo CONCUR |
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Clerk of the Board |
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Concur |
Approved Agreement to Form |
Discussion |
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3 Votes Board Majority |
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Budgeted: N/A |
Current Year Cost:
N/A |
Annual Cost:
FY 2021-22 $1,206,000 |
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Staffing Impact: |
No |
# of Positions:
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Sole Source:
No |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 06/23/2020
#9, 05/21/2019 #21, 06/26/2018 #55, 06/23/2015 #49 |
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RECOMMENDED ACTION(S):
Authorize the County Procurement Officer or authorized Deputy to execute Amendment Number Four with Financial Statement Services, Inc. to extend the contract to provide printing and mailing services in an amount not-to-exceed $2,412,000, commencing July 1, 2021, through June 30, 2023, for a revised cumulative total amount not-to-exceed $9,151,000.
SUMMARY:
Approval of Amendment Number Four to the contract with Financial Statement Services, Inc. will ensure that the Treasurer-Tax Collector continues to meet the core services of billing and mailing of over $7 billion of property tax bills, invoices and delinquent notices on behalf of the County, County agencies and other local agencies.
BACKGROUND INFORMATION:
Request for approval of this Amendment Number Four with Financial Statement Services, Inc. (FSSI) is coming to the Board of Supervisors (Board) pursuant to County Contract Policy Manual Section 3.3-105(3) which states, “In no case shall a service contract exceed five (5) years in duration unless the contract is specifically approved by the Board, or is extended from the original contract terms by twelve (12) months in accordance with Section 3.3-106 in this manual.” FSSI provides services that include the printing, folding and inserting of bills, invoices, notices and statements into envelopes to be mailed by the U.S. Post Office. The Treasurer-Tax Collector (Treasurer) currently sends out over two million bills, invoices, notices and statements with total estimated billings of over $7 billion annually on behalf of the County, County Departments and other local agencies. In addition to billing for all property tax related items, the Treasurer also currently provides these contracted services for certain County Departments, County Agencies and other local agencies. These include the Orange County Community Resources (OCCR), Orange County Animal Care (OCAC), Orange County Public Works (OCPW) and the City of Westminster (Westminster).
FSSI was selected via a competitive bid evaluation process resulting in a three-year contract with two one-year renewals. The County planned to go back out to competitive bid this year. However, the County is in the process of re-platforming the Property Tax System (PTS). This system includes data file transfer interfaces with FSSI in order to complete the processing of property tax bills, notices and invoices for printing and mailing. The Treasurer is requesting a two-year extension of the existing contract to minimize disruption to the project, which is scheduled to be completed in FY 2021-22. Once the PTS project is completed and the software is put into production, the Treasurer plans to issue a Request for Proposal in the next year.
The cost of the proposed two-year extension has increased from the previous renewal by $26,000, primarily due to an increase in estimated postage costs and an increase in paper costs. In addition, a new service is being added for OCPW - Sealer of Weights and Measures to include the ability to print and mail postcards to customers for Certificate of Registration renewals. Consistent with the existing contract, the extension also includes a five percent contingency amount for volume/postage changes and $23,200 for programming that will only be used if needed. A summary of the estimated costs, including the contingency and programming costs, by Department/Agency are as follows:
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Department/Agency |
Annual Estimated Vendor Costs |
Annual Estimated Postage |
Total Annual Estimated Cost |
% |
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Treasurer Secured and Unsecured Property Tax Bills/Notices |
$336,900 |
$583,100 |
$920,000 |
76% |
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OCCR/OCAC Services Invoices |
$50,200 |
$149,800 |
$200,000 |
17% |
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OCPW - Weights and Measures Invoices/Postcards |
$2,720 |
$4,280 |
$7,000 |
1% |
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Westminster Utility Bills |
$21,220 |
$57,780 |
$79,000 |
6% |
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Total |
$411,040 |
$794,960 |
$1,206,000 |
100% |
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Prior Contract |
$402,545 |
$777,455 |
$1,180,000 |
100% |
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Contract Increase/(Decrease) |
$8,495 |
$17,505 |
$26,000 |
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In the past five years, FSSI has successfully printed and mailed all property tax bills and notices within the requested time frames to meet statutory mailing deadlines. In 2016, 2017, 2018, 2019 and 2020, FSSI mailed 857,847, 862,430, 869,849, 872,432 and 869,076 secured property tax bills, respectively. In 2016, 2017, 2018, 2019 and 2020, FSSI also mailed 129,537, 117,437, 100,094, 124,486 and 124,440 unsecured property tax bills, respectively. The Contractor’s performance has been confirmed as at least satisfactory. The Treasurer has verified that there are no concerns that must be addressed with respect to the Contractor’s ownership/name, litigation status or conflicts with County interests. The Treasurer has been satisfied with their services and performance throughout the term of the contract and recommends that it be extended. This contract does not currently include subcontractors or pass through to other providers. See Attachment D for Contract Summary Form.
Extension
Submitted Within 30 Days
Due to continued negotiations with the vendor to finalize terms and pricing, the proposed contract extension is submitted for Board approval less than 30 days before its effective date.
Prior Board
Actions:
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Board Date |
Board Action |
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06/23/2020 #9 |
Approved one-year renewal term to Contract No. MA-074-15012094 |
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05/21/2019 #21 |
Approved one-year renewal term to Contract No. MA-074-15012094 |
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06/26/2018 #55 |
Approved one-year renewal term to Contract No. MA-074-15012094 |
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06/23/2015 #49 |
Approved three-year Contract No. MA-074-15012094 |
FINANCIAL IMPACT:
Appropriations for billing and mailing services as well as postage costs are included in the Treasurer’s FY 2021-22 Budget and will be included in the budgeting process for future years. The Treasurer is fully reimbursed for the cost of the printing and mailing services for County invoices from those Departments or Agencies.
The County has the right to terminate the contract without penalty immediately with cause or upon 30-days written notice by either party.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Amendment Number Four to Contract No.
MA-074-15012094
Attachment B - Amendment Number Four to Contract No. MA-074-15012094 - Redlined
Version
Attachment C - FSSI Master Contract No. MA-074-15012094
Attachment D - FSSI Contract Summary Form
Attachment E - California Revenue & Tax Code Sections 95.2
Attachment F - California Revenue & Tax Code Sections 95.3