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HomeMy WebLinkAbout09-Finance CITY OF SAN BERN.DINO I I 'fYb - REQUEST FW' COUNCIL ACTION " ( ~ From: BARBARA PACHON, DIRECTOR OF FIIfAlfCE Subject: AGREEMENT WITH KASTER-SORT INCORPORATED FOR PRESORTING SERVICES Dept: FIIfAlfCE Date: JANUARY 24, 1995 Synopsis of Previous Council action: Resolution #93-436 adopted December 6, 1993 DM if ,'f"!. Co., ri:C 9:; 1-' % Recommended motion: Adopt Resolution H;k~~~ / Signature Contact person: RARRAR~ PACHOIf. DIRECTOR OF FINANCE Phone:ext - 5242 Supporting data attached: Ward: FUNDING REQUIREMENTS: Amount: $3,000.00 Source: IAcct. No.! 001-123-5505 IAcct. Descriotionl General ~ Finance: -tfd/ c- "j? J.(2t'\ / - Council Notes: 75-0262 &'&/,- Agenda Item NO~ . _- CITY OF SAN BEAN.DINO - REQUEST" COUNCIL ACTION STAFF REPORT On December 6, 1993 the city began a pilot project with Mail-Sort Incorporated for presort mail services. During the pilot project Mail-Sort Inc. merged with another company and changed its name to Master-Sort. Master-Sort has been operating under the same contract terms that were agreed to by Mail-Sort and the city of San Bernardino. During the time that the city has utilized Master-Sort there has been a savings of approximately $54.56 per week which total $2,837.12 per year. When US Postal Service rates went up January 1, 1995, Master-Sort raised their rates as well. The City has always had a savings of .02 cents per "f irst class letter. A breakdown per letter is as follows: NORMAL POSTAL SERVICE Cost per first class letter .32 cents Letters per week 2,728 Total charge to city per week $ 872.96 MASTER-SORT SERVICE Cost per first class letter .28 cents City pays Mail-Sort per letter .02 cents Total Cost per first class .30 cents letter Letters per week 2,728 Total charge to City per week $ 818.40 Total average savings per week $ 54.56 Total average savings per year $2,837.12 Currently, there are no other mailsort companies who service the Inland Empire. If we were to begin service with a new mailsort company and be their single pick up in the area, they would charge a courier fee, which is now waived by Master-Sort. Paying a courier fee would offset currently realized savings. Central Services (Print Shop) has not encountered any problems with Master-Sort or their employees and have been very pleased with their work. 75-0264