COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Assessor-County Clerk-Recorder

DATE:

August 27, 2007

BOARD MEETING DATE:

September 11, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Warren Slocum, Assessor-County Clerk-Recorder

SUBJECT:

Waiver of RFP Process, Agreement with Document Messaging Technologies, a division of Pitney Bowes, Inc., for Mail Sorter System

RECOMMENDATION:

Adopt a resolution:

A.

Authorizing a waiver of the Request for Proposal process; and

B.

Authorizing the President of the Board to execute a lease-purchase agreement with Document Messaging Technologies, a division of Pitney Bowes, Inc., for a mail sorting system, for a lease-purchase term from September 15, 2007 through September 15, 2012, and first year of license and support fees, in an amount not to exceed $686,000, with projected five-year costs of $896,000 to renew annual license and support fees; and

C.

Authorizing the Assessor-County Clerk-Recorder or his designee to execute contract amendments which modify the County's maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract term and/or services so long as the modification(s) is/are within current or revised fiscal provisions.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 20: Governmental decisions are based on careful consideration of future impact, rather than temporary relief of immediate gain.

This investment and phased expenditure will yield cost-saving efficiencies.

Performance Measure(s):

Measure

FY 2002-06
Actual

FY 2007-09
Target

Number of mail ballot envelopes which can be sorted by precinct per hour

234

24,000

Average hours required to process mail ballot envelopes in a countywide November election

9,835

1,760

BACKGROUND:

The number of voters choosing to Vote-by-mail (VBM) has skyrocketed from 1% to almost 40% in just five years and we estimate its usage will continue to increase during the 2008 Presidential cycle. Now, VBM processing is mostly manual, demanding many staff, approximately 55-200 staff in a countywide November election in a four-year election cycle. This system will automate five inbound VBM tasks.

DISCUSSION:

Our market search found only one system that meets our specifications, and this vendor is experienced in California elections operations. The price is competitive. We believe a waiver of the RFP process will serve the County’s best interests.

The system will increase efficiency about tenfold, reducing our staffing requirement to about 11, from a past average of 101 (November elections). Labor savings will total an estimated $674,600 in the first five years (based on Santa Clara County’s experience in four elections and similar results elsewhere) and will continue with each election. The equipment will also reduce the potential for human errors.

The County Manager has approved the five-year term, during which we project full return on the investment. Almost $2 million in savings is projected over system life.

The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, and all other contract provisions required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination, and equal benefits.

County Counsel, Information Services, and Risk Management have reviewed and approved this agreement and related insurance coverages.

FISCAL IMPACT:

There is no Net County Cost. Total cost of this agreement is $686,000: Years 1-5 of fixed-rate equipment lease-purchase and Year 1 of license and support. Automatic renewals of licensing and support in Years 2-5 will be appropriated separately in order to obtain a lower, adjustable, GSA rate. Total five-year cost is $896,000; $48,721.16 in FY 2007-08 and $177,583.72 in FY 2008-09. During September 2007 Budget Hearings, we will add contract appropriation and delete a matching sum of other Elections operating costs. Unanticipated additional fees will be fully offset by reductions in operating costs.