Agenda Item   



                                                                                                                        ASR Control  21-000494




legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

Treasurer-Tax Collector   (Approved)

Department contact person(s):

Shari L. Freidenrich (714) 834-7625 



Jennifer Burkhart (714) 834-6143



Subject:  Amend Contract with Financial Statement Services, Inc for Bill Processing


      ceo CONCUR

County Counsel Review

Clerk of the Board


Approved Agreement to Form




3 Votes Board Majority




    Budgeted: N/A

Current Year Cost: N/A

Annual Cost: FY 2021-22 $1,206,000
FY 2022-23 $1,206,000




    Staffing Impact:


# of Positions:

Sole Source: No

    Current Fiscal Year Revenue: N/A

  Funding Source: See Financial Impact

County Audit in last 3 years: No



    Prior Board Action: 06/23/2020 #9, 05/21/2019 #21, 06/26/2018 #55, 06/23/2015 #49




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.







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.






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:



Annual Estimated Vendor Costs

Annual Estimated Postage

Total Annual Estimated Cost


Treasurer Secured and Unsecured Property Tax Bills/Notices





OCCR/OCAC Services Invoices





OCPW - Weights and Measures Invoices/Postcards





Westminster Utility Bills










Prior Contract





Contract Increase/(Decrease)






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:


Board Date

Board Action

06/23/2020 #9

Approved one-year renewal term to Contract No. MA-074-15012094

05/21/2019 #21

Approved one-year renewal term to Contract No. MA-074-15012094

06/26/2018 #55

Approved one-year renewal term to Contract No. MA-074-15012094

06/23/2015 #49

Approved three-year Contract No. MA-074-15012094







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.












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