Memorandum

City of Lawrence

Department of Administrative Services

TO:	Mike Wildgen, City Manager
FROM:	Frank S. Reeb, Director of Administrative Services/City Clerk
CC:	Dave Corliss, Assistant City Manager/Director of Legal Services
Date:	August 26, 2004
RE:	Agreement for Mail Services

Earlier this summer, the City of Lawrence and Douglas County Government jointly requested proposals from qualified firms to provide mailing services (mail pick up, postage metering, letter seal, and delivery to the post office).  As more fully described below, we are requesting the City accept the proposal from Stampede Mailing Services, LLC.   

Since March 2001, Express Pack & Mail has provided the mailing services for outgoing mail from City Hall (not including utility bills).  At present, all 1 ounce letters mailed from City Hall, which account for the majority of the outgoing mail, are mailed at the full first class mail 37 cent rate.  While the Express Pack & Mail service was generally good, given that it had been over three years since we had marketed our mail service and given our mail volumes, presort rates (i.e., 35.2 cents for 1 ounce first class mail) and lower handling costs were possible, we issued the request for proposals.  

The attached spreadsheet (in a separate .pdf file) summarizes the proposals we received.  Following an evaluation process that looked at both costs and services, and following a tour of the Stampede and American Presort facilities (we were already familiar with Express Pack & Mail facility) City and County staff agreed Stampede Mailing Services, LLC provided the best overall proposal based on the following:

• Late afternoon mail pick up (current pick up is at approximately 10:30 am)
• Lowest daily pick up fee ($2.50/day) (we currently pay $35 per week)
• Lowest metering and letter seal costs (including a negotiated no charge to seal letters)
• Up to 25 signature/delivery confirmations per week at no charge (negotiated)
• FedEx and UPS pick up
• Additional mail handling services at low cost (we negotiated fees for folding [.005 per piece], and inserting [.02 first sheet and .01 per additional sheet] subject to a $50.00 minimum) with the added potential for these pieces to be mailed at a discounted or “bulk mail” rate.

Recommended Action: Accept the proposal for mail services from Stampede Mailing Services, LLC of Lenexa, Kansas and authorize the City Manager to execute a cooperative agreement between the City of Lawrence, Douglas County Government, and Stampede Mailing Services, LLC for such mail services.