Title
Consider a memorandum/resolution authorizing the award of RFP 25-37, Utility Bill Print and Mail Outsourcing to Info Send, Inc., in the annual amount of $479,016.00.
Body
DATE: December 9, 2025
TO: Kent Cagle, City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Utility Bill Print and Mail Outsourcing
BACKGROUND AND FINDINGS:
The City of Killeen currently provides water utility services to over 55,000 customers, which generate around 38,000 to 40,000 regular monthly water bills, 11,000 to 15,000 electronic bills, and 11,000-14,000 delinquent notices each month. The Utility Collections Division executes up to fourteen (14) main-cycle bill run mailings per month, in addition to supplemental off-cycle and final billings as required.
With the cost of postage, paper, and envelopes steadily increasing-along with the number of customers due to the City’s continued growth-the Finance Department issued Request for Proposals (RFP) 25-37 to assess the cost and effectiveness of outsourcing utility bill printing and mailing services.
On August 14, 2025, at 2:00 p.m., nine (9) proposals were received. Evaluations were conducted by City staff, and the top three (3) vendors were interviewed virtually. InfoSend, Inc. was selected for recommendation based on their detailed implementation process, consistent customer service, and overall cost competitiveness.
The table below compares the monthly internal cost of utility bill printing and mailing with the proposed outsourcing costs through Info Send, Inc.:
|
Description |
Internal |
External (InfoSend) |
|
38,000 Monthly Bills, Inserts & Return Envelopes |
$28,521 |
$30,818 |
|
12,000 Single Late Notices |
$9,271 |
$8,100 |
|
11,000 E-Bills |
|
$1,000 |
|
Equipment Leases |
$2,971 |
|
|
Personnel Costs Related to Utility Billing |
$4,976 |
|
|
Monthly Total |
$45,739 |
$39,918 |
|
Annual Total |
$548,868 |
$479,016 |
Outsourcing utility bill printing and mailing will reduce operational costs, streamline processes, and increase efficiency by allowing Utility Collections staff to focus on higher-value customer service tasks. It will also improve the quality and appearance of bills, providing customers with clearer account information and a more professional presentation. In addition, outsourcing minimizes risks related to equipment maintenance and supply costs while ensuring the City can easily scale services to accommodate future growth.
The contract term would be for two (2) years with the option to renew for two (2) additional one-year terms.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms to City Policy and state and local laws.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
The total estimated expenditure for outsourcing utility bill print and mailing services is $479,016 annually. This cost will fluctuate depending on the amount of water utility customers, paper bills, electronic bills, delinquent notices and insert.
Is this a one-time or recurring revenue/expenditure?
Recurring expenditure
Is this revenue/expenditure budgeted?
Yes, funds are available in the Water and Sewer Fund, Utility Collections operational accounts and will be paid from Professional Services account 550-54250-160-166-000000 for the utility bill printing and mailing services.
Funds for billing inserts are budgeted within the General Fund, Communication’s Public Outreach account 100-52145-140-141-000000, and other department’s Office Supply accounts XXX-52140-XXX-XXX-000000.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
City Staff recommends that the City Council authorize the award of RFP 25-37, Utility Bill Print and Mail Outsourcing to Info Send, Inc. and authorize the City Manager or his designee, to enter into a contract with Info Send, Inc. in the amount of $479,016 annually and execute any and all changes within the amounts set by State and Local Law.
DEPARTMENTAL CLEARANCES:
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Agreement
RFP 25-37 Evaluation Matrix
Certificate of Interested Parties
Presentation