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Finance and Management Services <br />www.santa-ana.org/finance <br />Item # 16 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />March 1, 2022 <br />TOPIC: Agreement Amendment with Pitney Bowes Presort Services, LLC for mail <br />processing services <br />AGENDA TITLE: <br />Approve a First Amendment to Agreement with Pitney Bowes Presort Services, LLC for <br />mail processing services for an amount not to exceed $40,000 and exercise an optional <br />renewal extension from April 1, 2022 through February 1, 2024 (Non -General Fund) <br />RECOMMENDED ACTION <br />Authorize the City Manager to execute a First Amendment to Agreement with Pitney <br />Bowes Presort Services, LLC for mail processing services and exercise a renewal option <br />for a term commencing April 1, 2022 through January 31, 2024 for a total amount not to <br />exceed $40,000, subject to non -substantive changes and approved by the City Manager <br />and City Attorney. <br />DISCUSSION <br />The Finance and Management Services Agency's Central Services Division ("Central <br />Services") currently utilizes Pitney Bowes Presort Services, LLC ("PBPS") to pick up and <br />process City mail. PBPS is a presort house that barcodes and presorts the mail by zip <br />code. When mail is barcoded and presorted, PBPS delivers the items to the local United <br />States Postal Service ("USPS") processing facility. <br />In addition to standard mail, the City mails out various bulk mailings for City functions, <br />including, but not limited to, Business Tax and Dog Licensing. These mailings require the <br />use of envelopes with a pre-printed permit imprint. PBPS is permitted for this service with <br />the USPS and processes these large mailings on behalf of the City. <br />By approving the First Amendment to Agreement with PBPS, the following changes and <br />rate increases will be reflected: <br />1. As a result of the USPS raising their rates, PBPS has updated the fee schedule (see <br />table below). <br />2. Change the postage date of presort mail from same day to next day. Currently, City <br />mail is postmarked with the date it is processed by Central Services, typically the same <br />day. Due to PBPS processes and the time of day that we request a pickup (4:30 p.m.) <br />PBPS has requested we postmark all presort mail with the next business date. <br />