CITY OF CARMEL-BY-THE-SEA

AGENDA BILL

AB 1019
September 1, 2015
Consent Calendar

TO:

Honorable Mayor and Members of the City Council

Douglas J. Schmitz, City Administrator

FROM:

Sharon Friedrichsen, Director of Budget and Contracts

SUBJECT:

Resolution Authorizing the City Administrator to Execute a Professional Services

Agreement with Peninsula Messenger Service for Mail Delivery Service

AMOUNT OF EXPENDITURE

$ 49,500 or $34,500

AMOUNT BUDGETED

$ 54,000

APPROPRIATION REQUIRED

$0

RECOMMENDATION

1. Adopt a resolution authorizing the City Administrator to execute a Professional Services Agreement
with Peninsula Messenger Services for mail delivery services for a three year term for a not to exceed
amount of $154,500 or
2. Adopt a resolution authorizing the City Administrator to execute a Professional Services Agreement
with Peninsula Messenger Services for mail delivery services for a three year term for a not to exceed
amount of $109,500.
SUMMARY

The City has contracted with a private mail courier service for the last fourteen years to deliver mail to
residents as an alternative to residents picking up their mail at the post office. As part of the ongoing
review of contracts and service needs, the City issued a Request for Proposals for this service in order
to determine if the City is obtaining "the lowest possible cost commensurate with quality needed" per
Municipal Code 3.12.01 0.
The Notice Inviting Proposals was published twice in the Monterey Herald and once in the Carmel Pine
Cone and mailed to eleven mail courier firms located within the Monterey Peninsula. The City received
three proposals by the stated deadline and convened a panel consisting of City staff and one resident
to evaluate the proposals and interview the firms . Evaluation criteria included qualifications of the firm,
experience and cost. Costs of the proposals ranged from around $50,000 to $75,000 per year. Based
upon the evaluation of the firms, it is recommended that the City entering into an agreement with
Peninsula Messenger Service for this service.
Peninsula Messenger Service's proposal assumed a cost of $33 per client for the first year, with an
escalation to $35 per client for the second and third year of the proposal. Approximately 125 residents

Council Meeting Date : 09/01/2015

Agenda Item: 16
Page 1

use the service and the level of participation has remained fairly constant over time. Based upon 125
clients, cost of the service would be $49,500 for year one.
However, before the agreement is executed , Council may wish to consider alternatives to the service
delivery model. One possible option is to reduce the mail delivery service from six days a week to three
days a week, due to a on-going decrease in the volume of mail. This option also has the added befit of
reducing the cost of the service and the number of vehicle trips in town . However, this would be a
significant change in the service level on the current recipients that are accustomed to service six days
a week. The cost for this reduced level of service would be $23 per client for year one, or $34,500,
increasing to $25 per client, or $37,500 for years two and three of the multi-year agreement. Under this
scenario, the City would save $15,000 a year, or $45,000 over the course of a three year agreement.

PRIOR CITY COUNCIL ACTION

Council approved an amendment to the existing agreement with Peninsula Messenger Service on 7
July 2015 (Resolution 2015-051) to extend the service through 30 September 2015. Council adopted
Resolution 2006-12 on 7 March 2006 authorizing an agreement with Peninsula Messenger Service.
ATTACHMENTS
1. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A PROFESSIONAL SERVICES
AGREEMENT PENINSULA MESSENGER SERVICES FOR MAIL DELIVERY SERVICES IN AN
AMOUNT NOT TO EXCEED $154,500 FOR 3 YEARS
2. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A PROFESSIONAL SERVICES
AGREEMENT PENINSULA MESSENGER SERVICES FOR MAIL DELIVER YSERVICES IN AN
AMOUNT NOT TO EXCEED $109,500 FOR 3 YEARS

Date:
Douglas J. _.16hmitz, City Administrator

8 7 ~7 /.F

"

Council Meeting Date: 09/01/2015

Agenda Item: 16
Page 2

ATTACHMENT- 1

RESOLUTION 2015-_ _
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT WITH PENINSULA MESSENGER SERVICE FOR MAIL
DELIVERY SERVICE FOR AN AMOUNT NOT TO EXCEED $154,500
WHEREAS, the City of Carmel-by-the-Sea wishes to preserve its quality of life and community
character; and,
WHEREAS , part of the City's character is the absence of house addresses and the use of post
office boxes at the local postal office; and
WHEREAS , some residents are unable to collect their mail at the local postal office and the
City wishes to support a private mail courier service delivering and collecting mail for residents; and
WHEREAS , a Notice Inviting Proposals for Mail Delivery Services was issued by the City and
published in the Monterey Herald on July 25 and 29, 2015 respectively and in the Carmel Pine Cone
on August 7, 2015; and,
WHEREAS, upon evaluating the three proposals submitted, the City wishes to enter into
agreement with Peninsula Messenger Services for a three year contract for a total contract amount
not to exceed $154,500; and,
WHEREAS , professional services agreements exceeding $24,999.00 require City Council
approval to be valid .
NOW, THEREFORE , BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA does hereby:
Authorize the City Administrator to Execute an Agreement with Peninsula Messenger Service
for a term of September 1, 2015-June 30, 2018 for a contract amount not to exceed $154 ,500
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
on this 1st day of September 2015 by the following roll call vote:
AYES:

COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS :

ABSENT:

COUNCIL MEMBERS:

ABSTAIN :

COUNCIL MEMBERS:

SIGNED:

ATTEST:

Jason Burnett, MAYOR

Lee Price, Interim City Clerk

Council Meeting Date: 09/01/20 15

Agenda Item: 16
Page 3

ATTACHMENT- 2

RESOLUTION 2015_ _
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT WITH PENINSULA MESSENGER SERVICE FOR MAIL
DELIVERY SERVICE FOR AN AMOUNT NOT TO EXCEED $109,500
WHEREAS, the City of Carmel-by-the-Sea wishes to preserve its quality of life and community
character; and,
WHEREAS, part of the City's character is the absence of house addresses and the use of post
office boxes at the local postal office ; and
WHEREAS, some residents are unable to collect their mail at the local postal office and the
City wishes to support a private mail courier service delivering and collecting mail for residents; and
WHEREAS , a Notice Inviting Proposals for Mail Delivery Services was issued by the City and
published in the Monterey Herald on July 25 and 29 , 2015 respectively and in the Carmel Pine Cone
on August 7, 2015 ; and ,
WHEREAS, upon evaluating the three proposals submitted, the City wishes to enter into
agreement with Peninsula Messenger Services for a three year contract for a total contract amount
not to exceed $109,500 and,
WHEREAS , professional services agreements exceeding $24,999.00 require City Council
approval to be valid .
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF
CARMEL-BY-THE-SEA does hereby:
Authorize the City Administrator to Execute an Agreement with Peninsula Messenger Service
for a term of September 1, 2015-June 30, 2018 for a contract amount not to exceed $109,500
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
on this 1st day of September 2015 by the following roll call vote:
AYES:

COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT:

COUNCIL MEMBERS:

ABSTAIN :

COUNCIL MEMBERS:

SIGNED:

ATTEST :

Jason Burnett, MAYOR

Lee Price, Interim City Clerk

Council Meeting Date: 09/01/20 15

Agenda Item: 16
Page 4