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COUNTY OF SAN MATEOInter-Departmental Correspondence |
San Mateo Medical CenterHealth Services Agency |
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DATE: |
April 27, 2002 |
BOARD MEETING DATE: |
September 17, 2002 |
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TO: |
Honorable Board of Supervisors |
FROM: |
Nancy Steiger, Chief Executive Officer, San Mateo Medical Center Margaret Taylor, Director, Health Services |
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SUBJECT: |
Agreement with InfoImage, Inc. |
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Recommendation |
Adopt a Resolution authorizing the President of the Board to execute an agreement with InfoImage, Inc. to process, print and mail statements for Environmental Health, Mental Health and Hospital and Clinics. |
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Background |
San Mateo County has been contracting with InfoImage, Inc. since 1996 to 2001 to provide laser printing, mailing, and programming services at different rates through three individual contracts with Mental Health, Environmental Health and Hospital and Clinics.
On November 30, 2000, the Purchasing Agent approved an agreement with InfoImage to provide laser printing, mailing, and programming services to Hospital and Clinics. The term of the agreement was November 1, 2000 through June 30, 2001. The maximum amount of the agreement was $80,000. Environmental Health and Mental Health were also contracting with InfoImage separately at that time. This agreement was subsequently amended on November 11, 2001 to extend the term to December 31, 2001, to increase the maximum amount to $160,000, and to incorporate the non-discrimination language. |
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Discussion |
A work group was created In June 2001 to develop a Request for Proposals (RFP). Members of the group consisted of representatives from Environmental Health, Hospital and Clinics, Mental Health, and Purchasing. Specifications required by each department were developed to include in the RFP. The RFP was sent to InfoImage, Inc, Relizon and standard Register on October 10, 2001. InfoImage and Relizon responded to the RFP. Based on cost savings, responsiveness, and sufficient resources to perform required services, InfoImage was selected by the work group.
Postage constitutes the highest cost in the contract accounting for 64% of the contract maximum. Currently each department contracting with InfoImage is paying a different rate for basic services and postage. The new consolidated agreement will ensure consistent and/or lower rates for the services provided by InfoImage. Pre-sorted mail in batches of 150 pieces or more going to the same zip code qualify for lower automation rates. Last year, 66% of the statements processed qualified for minimal to no postage discount. The current agreement is structured to allow for the following: 1) 84% of our statements qualify for lower postage rates than were paid last year, 2) Printing costs will remain frozen at the November 2000 rate for the life of the contract, 3) Supply costs will be frozen at 0.3% to 0.4% above the November 2000 rate for the life of the contract and 3) Pre-sort fees have been reduced by 52% over the life of the contract. The only increase anticipated is due to the rate increases from the U.S. Postal Service.
The services provide by InfoImage include billing and mailing of invoices from San Mateo Medical Center (SMMC), from Environmental Health and Mental Health. The Medical Center's Business Office's patient billing function accounts for a majority of the services provided by InfoImage. Each department has separate billing specifications because of the nature of the services that are being billed. SMMC bills for inpatient and outpatient services, Environmental Health for inspection fees and licenses, and Mental Health sends bills to clients as outpatient billing.
The term of the agreement is January 1, 2002 to April 30, 2005. An arrangement was made with the Controller's office to pay invoices by Purchase Order, from December 2001 to the present, prior to the completion of a new contract. The delay in processing this agreement is due to the complexity of the requirements from Mental Health, Environmental Health, and Hospital and Clinics.
Risk Management and County Counsel have approved this agreement. |
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Vision Alignment |
This Contract keeps the commitment to Responsive, effective and collaborative government and goal number 20: government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. The agreement contributes to this commitment by providing uniform rates for laser printing, mailing and programming services to three departments in San Mateo County thereby reducing the costs for these services. |
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Fiscal Impact |
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Funds are included in the individual budgets and will be requested in subsequent budget requests as follows:
Division/ Department 1/01/02- 6/30/03 7/1/03- 6/30/04 7/1/04 - 4/30/05 TOTAL
Environmental Health $ 13,750.00 $ 9,097.92 $ 9,825.78 $ 32,673.70 Hospital and Clinics $194,668.15 $136,468.80 $147,386.70 $478,523.65 Mental Health $ 8,021.00 $ 6,065.28 $ 6,550.52 $ 20,636.80 TOTAL $216,439.15 $151,632.00 $163,763.00 GRAND TOTAL |
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The term of this agreement is January 1, 2002 to April 30, 2005. The maximum amount for this agreement is $531,834.15. First class postage is expected to increase 8% each year, therefore an 8% yearly increase has been included in the contract maximum. |
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