R-08-25 to approve the professional services agreement with Third Millennium, Inc. for printing and mailing of Village of Lemont utility bills418 Main Street I Lemont, IL 60439
TO: Village Board Meeting
FROM: Darshana Prakash, Finance
THROUGH: George Schafer, Village Administrator
SUBJECT: A Resolution to approve the professional services agreement with Third
Millennium, Inc. for printing and mailing of Village of Lemont utility bills
DATE: February 10, 2025
SUMMARY/BACKGROUND
This agenda item was discussed at the January 27th Committee of the Whole meeting.
The Village's utility bills are printed in house each month. To facilitate this process, the Village
leases a folding and inserting machine and a postage machine. Once the bills are ready to be
mailed, they are brought to the Post Office by staff.
As a cost cutting measure, staff is recommending outsourcing this process effective May 1,
2025. Six vendors responded to the Village's RFQ for a five year term for printing and mailing
services. Two vendors were disqualified: one for not submitting a quote on time and the other
for providing incorrect quotes (which they admitted was their error) and subsequently provided
new quotes but after the deadline. The lowest quote received was from Third Millennium
Associates (TMA).
Annual outsourcing cost includes paper and envelopes for 3,900 monthly bills (excluding
inserts):
Year 1: $7,124 (includes $1,495 one time setup fee)
Year 2: $5,826
Year 3: $6,029
Year 4: $6,240
Year 5: $6,458
On average, inserts in the utility bills have been 1-2 in a year. The cost of which is $0.09 for a
full page (for 7,000 bills cost would be $630).
TMA is a reputable, known vendor in this space as well as to the Village since 2019 when we
outsourced the vehicle sticker process. Since then, they have proved to be very responsive,
consistently providing timely customer service when needed.
The Village will save on:
1. Annual lease cost on folding and inserting machine - $4,000
2. Annual lease cost on postage machine - $2,000
3. Average annual paper and envelope cost - $7,500
4. Average annual toner, maintenance and supplies cost - $700
5. Annual postage cost - approximately 20% or $1,015 for 7,000 bills (current Village rate is
$0.69/ea and TMA rate is $0.545/ea)
6. Staff will no longer have to print, stamp and drive to the Post Office
ANALYSIS
Consistency with Village Policy
STAFF RECOMMENDATION
Pass the Resolution.
BOARD ACTION REQUESTED
Pass the Resolution.
ATTACHMENTS
Resolution to approve professional services agreement with TMA.pdf
Resolution No. 9-0q ,-2-6
A Resolution Approving Professional Services agreements with Third Millennium
Associates, Inc.
WHEREAS, it has become beneficial for the Village of Lemont ("Village") to enter into
the Utility Billing Production agreement with Third Millennium Associates, Inc. ("TMA") to
provide printing and mailing services for the Village of Lemont utility bills;
WHEREAS, a Request for Quotes was issued, and four vendors successfully qualified
with TMA providing the lowest quote.; and
WHEREAS, upon receipt and review of the quote submitted, the President and Village
Board have determined that it is advisable, necessary and in the best interests of the Village to
accept the quote submitted by TMA.
NOW THEREFORE, BE IT RESOLVED BY THE VILLAGE BOARD OF
TRUSTEES OF THE VILLAGE OF LEMONT, COOK, WILL & DU PAGE COUNTIES,
ILLINOIS that:
SECTION ONE: Incorporation of Recitals. The foregoing findings and recitals are
hereby adopted as Section One of this Resolution and are incorporated by reference as if set forth
verbatim herein.
SECTION TWO: Accept TMA as vendor to provide the printing and mailing services
of the utility bills. The Village Board hereby waives the competitive bidding requirements
otherwise applicable to authorize services and accepts the quote submitted by TMA.
SECTION THREE: The Village Administrator or his designee is hereby authorized to
execute any documents and take any other steps necessary to ensure the services are performed by
Third Millennium Associates, Inc.
SECTION FOUR: This Resolution shall be in full force and effect from and after its
passage and approval as provided by law.
PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL AND DUPAGE,
ILLINOIS on this 10`h Day of February, 2025.
PRESIDENT AND VILLAGE BOARD MEMBERS:
AYES: NAYS: ABSENT: ABSTAIN
Janelle Kittridge
Dave Maher �✓
Ken McClafferty
Kevin Shaughnessy ✓
Rick Sniegowski
Ron Stapleton —�
John Egofske
President
ATTEST:
ACHAR"LENEM.OLLEN
Village Clerk
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Utility Billing Production Agreement
Third Third Millennium Associates, Inc. and
Millennium the Village of Lemont, IL
Associates, Incorporated
This agreement, which is of five years duration, will automatically renew after the original five year
contract period and annually thereafter unless either party provides to the other party written notice of
cancellation at least 120 days prior to the agreement anniversary.
This production agreement, which is entered into this _IOth_day of February_2025 by and
between Third Millennium Associates, Inc. (hereinafter referred to as "TMA") and the Village of
Lemont, IL (hereinafter referred to as "VILLAGE"). For consideration of payment, TMA will
provide to VILLAGE, information technology services, laser imaging and mailing services for the
purpose of rendering Utility billing invoices and other items as detailed on the attached Schedule "A".
1. Pre -agreement Confidentiality
Confidentiality and non -disclosure are defined by mutual agreement between TMA and VILLAGE per
the existing agreement document dated and signed on the 8th day of April 2019 by TMA
and VILLAGE. Also refer to paragraph 10 of this agreement.
2. Pricing Structure
The prices on which products and services will be provided by TMA to VILLAGE are set forth on the
attached Schedule B.
3. Postage Cost
Postage costs are not included in the attached listed prices and will be paid by VILLAGE directly to
the USPS via E.P.S. (Enterprise Processing System). The VILLAGE will be required to open and
maintain a E.P.S. account. TMA will provide the 3602 document for your review, with the monthly
postage required for your Utility bills and / or other TMA imaged mailing on behalf of
VILLAGE. VILLAGE will pay the estimated monthly postage directly to the USPS, via the E.P.S.
system. The USPS will report directly to VILLAGE all amounts charged to the VILLAGE
postal account. In addition, TMA will open a first class Pre -Sort Permit on your behalf, the cost of
which will be billed to the VILLAGE via Invoice. The VILLAGE has already established a
permit at the Carol Stream Regional Post office. TMA will work with VILLAGE to open and
establish an E.P.S account.
4. Payment Terms
Products and services provided by TMA shall be cumulatively billed on a monthly basis. The TMA
Invoice format shall detail each individual mailing and the dates of the provided service. All
correctly rendered TMA monthly invoices shall be paid by VILLAGE in accordance with the
Illinois Prompt Payment Act.
TMA Confidential Information 1 Contract Rev. 01.07.2025
5. TMA Oualitv Commitment
TMA guarantees that it will maintain consistent standards of quality workmanship and warrants the
accurate and timely processing, printing and mailing of the document as outlined in paragraph seven
(7) and that its products and services will be free from defect in materials and workmanship. TMA
does not warrant that the document contents are fit, legally or otherwise, for their intended purpose or
use.
6. Limits of Liabilit
TMA agrees to use all reasonable efforts to provide timely services, but will not be held liable for
errors of omission resulting from inaccuracies or defects in any VILLAGE billing data file, or for
errors, omissions or delays resulting from improper input and output data controls and procedures used
by VILLAGE or given to TMA by VILLAGE.
TMA shall not be held responsible for any loss or delay or any default caused by acts of God or any
other circumstances outside TMA's control which includes but is not limited to fire, flood, or labor
from usual sources of supply, government restrictions, or electrical, mechanical or computer software
failure that is unavoidable or beyond reasonable control of TMA. TMA agrees to use all reasonable
efforts to provide timely production services at an alternate site in the event that their production site is
unusable due to the aforementioned acts of God or any circumstances outside TMA's control.
TMA'S maximum liability for any and all claims arising from the performance of its obligations shall
not exceed the purchase price of the services provided.
7. Division of Responsibilities
7A. TMA Responsibilities
7A-1. To write the software required to convert the VILLAGE Utility billing file to the
required laser image format.
7A-2. To write software that will allow VILLAGE'S Utility billing files to be
processed through Postal software for the purpose of reducing VILLAGE'S
postage to the minimum allowable postage piece rate.
7A-3. To procure all materials required to produce and to mail the Utility bills. This
includes the Utility billing invoice, the No.10 window envelope and the No.9
courtesy reply envelope. TMA will not guarantee the performance of materials
not produced by TMA.
7A-4. TMA will notify VILLAGE of the availability of record count and control totals
for the Utility billing file no later than four (4) hours after receipt of the file.
7A-5 TMA will laser image and mail all VILLAGE Utility bills within forty-eight
(48) post office operating hours after receipt of VILLAGE control total / record
count sign off.
TMA Confidential Information 2 Contract Rev. 01.07.2025
7A-6. TMA will provide our employees the training to ensure the confidentiality of
VILLAGE information.
7A-7. TMA will maintain effective and timely communications with VILLAGE in all
matters pertaining to the responsibilities listed herein.
VILLAGE Responsibilities
7B-1. Project Initiation: VILLAGE will provide to TMA an ERP utility billing file
containing all required billing elements which are internally calculated by the
VILLAGE's ERP software. Provide the Utility billing file record layout with
file to form written instructions, all billing business rules, exception rules and
any other variations to the above. VILLAGE shall approve the record count and
control total format presentation and laser imaged Utility bill format both front
and back upon project completion.
713-2. Billing File and/or Bill Format Changes: Subsequent to VILLAGE "Project
Initiation approval" any changes to billing business rules, laser image format,
ERP billing file corruption, modifications and/or version updates will be billed
to VILLAGE at the prevailing programing rates.
713-2a: If your file is submitted to the TMA Gateway prior to Ipm, on a regular
business day, and that file stalls/fails, the file will be reviewed the same business
day. TMA will then impart this information to the municipality for the next
steps to be determined.
713-2b: If your file is submitted to the TMA Gateway after Ipm, on a regular
business day, and that file stalls, the file will be reviewed on the next business
day. TMA will then impart this information to the municipality for the next steps
to be determined.
713-2c: If your file is approved on the TMA Gateway, on a regular business day,
and our production staff attempts to run the file in production and if it is
determined that the file is corrupt, we will review the issue and advise the
municipality for the next steps to be determined.
On files approved before Ipm, on a regular business day, review the same
business day.
On files approved after Ipm, on a regular business day, reviewed the next
business day.
713-3. If, in the course of file review (whether prior to approval of file or after approval
of file), it is determined that a file correction/or multiple corrections are needed,
TMA will advise on the information that we have available, what the issue with
the file is, and consult with the VILLAGE for direction on whose responsibility
it will be to correct the file. The fee for this research will be a flat $100. If the
issue/defect with the file is determined to be TMA's defect, no charge will be
billed to VILLAGE.
TMA Confidential Information 3 Contract Rev. 01.07.2025
713- 3a: If that fix/correction is to be made by TMA, the number of programming hours
(cost) will be explained, as well as the timeframe for the fix to be implemented.
If the issue/defect with the file is determined to be TMA's defect, no charge will
be billed to VILLAGE.
Staff Training and Responsible File Submission
7134. To provide to TMA a three (3) hour response via the TMA Gateway verifying
the record count and control totals as stated in 7A-4.
713-5. To maintain an E.P.S. postal account.
713-6. To pay all correctly rendered TMA invoices in accordance with the Illinois
Prompt Payment Act.
8. Price Changes
The prices listed on Schedule B shall be subject to review each year on the anniversary date of this
agreement. That review shall determine if there were any increases or decreases in the cost of paper,
production, transportation or any other cost component of the herein contained products and/or
services. Prices may also be reviewed if the agreement quantity as stated in SCHEDULE `B" varies
by more than ten percent.
TMA must provide third -party documentation of cost increases to VILLAGE. That documentation
shall consist of letters of price increase or decrease from paper mills, articles from the Wall Street
Journal or any other legitimate and universally accepted source. In the absence of the above
documentation, the U.S. Consumer Price Indexes (CPI-U) will be used as the source of price increase
or decrease.
9. Renegotiations and Cancellation
In the event either party is in breach of any of the terms contained herein, the non -breaching party shall
give written notice of said breach to the breaching party. The breaching party shall have ten (10) days
to cure the breach. In the event said breach is not cured within ten (10) days of notice, the non -
breaching party may then give thirty (30) days written notice of cancellation of this Agreement.
10. Post -agreement Confidentiality
In the event of cancellation or expiration of this agreement, TMA shall return to VILLAGE all
materials and information pertaining to the performance of this agreement. These materials shall
include, but are not limited to, all electronic media, all printed material, all notes, memos or other
sources of VILLAGE confidential information.
In no instance, prior to, during, or after the conclusion of this agreement, shall TMA offer for sale or in
any other manner disclose to any third party the VILLAGE document file or any other such VILLAGE
files, whether written or in electronic media format.
TMA Confidential Information 4 Contract Rev. 01.07.2025
11. Materials Production
Prior to materials production runs, TMA will notify VILLAGE in writing of the items to be produced,
production quantities planned and the estimated period of materials consumption. TMA will base its
materials production quantities on projections using current semi -annualized Utility billing volume.
Any materials (i.e., non -imaged forms, envelopes, etc.) that have been produced specifically and
exclusively for VILLAGE'S use will be paid for by VILLAGE and at VILLAGE'S written request
will be returned by TMA to VILLAGE upon cancellation or expiration of this agreement. In addition,
any materials produced that are modified and unused will be billed to the VILLAGE at a stock
replacement rate.
12. Other Provisions
This agreement constitutes the entire agreement between the parties pertaining to the subject matter
hereof and supersedes all prior agreements. No amendment, supplement, modification, waiver or
termination of this agreement shall be binding unless executed in writing by the party to be bound
thereby. No waiver of any of the provisions of this agreement shall be deemed or shall constitute a
waiver of any other provision of this agreement, whether or not similar, nor shall such waiver
constitute a continuing waiver unless otherwise expressly provided.
This agreement shall be construed and interpreted according to the laws of the State of Illinois.
If any provision, clause or part of this agreement, or the application thereof under certain
circumstances is held illegal or unenforceable, the remainder of this agreement, or the application of
such provision, clause or part under certain circumstances, shall not be affected thereby.
IN WITNESS WHEREOF, the duly authorized representatives of the parties have executed the
Agreement effective as of the date last written below.
TMA Confidential Information 5 Contract Rev. 01.07.2025
AUTHORIZATION
THIRD MILLENNIUM ASSOCIATES, INC.
Signature:
Name: Elizabeth S. Adducci
Title: President
Date: January 07, 2025
VILLAGE OF LEMONT,
Title: Village Administrator
February 10, 2025
TMA Confidential Information 6 Contract Rev. 01.07.2025
Schedule A
Materials to be provided by TMA:
Mi . 8 '/z x I Utility bill printed two colors on the face and one color on the back. Paper is 20 lb.
MOCR bond, with a cross perforation to create the remittance portion of the document.
M2. No.10 window generic window envelope. Paper is 24 lb. white -wove.
M3. No.9 courtesy reply window envelope. Paper is 24 lb. white -wove.
M4. With mutual agreement, VILLAGE may authorize TMA to provide certain materials for new
projects or variations of the billing project. These material descriptions may be attached to,
and become a part of Schedule "A".
Services to be provided by TMA:
S 1. To write VILLAGE Utility billing file conversion software that will allow the laser imaging of
VILLAGE Utility bills per the charges stated in Schedule `B".
S2. To write the required software that will allow VILLAGE'S billing file to be processed by TMA
postal software.
S3. To process the VILLAGE data file using TMA postal sort application software to reduce the
VILLAGE'S postage rate to the minimum automation rate amount allowed by the LISPS.
S4. To laser image VILLAGE Utility bills in quantities and frequencies as stated in schedule `B"
of this agreement.
S5. To insert, seal, tray, sleeve, band, label, palletize and prepare USPS form 3602 and deliver to
the US Post office all pieces laser imaged with respect to item S4.
S6. To insert additional pieces into the outgoing No.10 billing envelope as directed by VILLAGE
per the conditions and charges as stated in Schedule `B" of this agreement.
S7. With mutual written agreement, VILLAGE may authorize TMA to provide additional services
and/or products for new projects or variations of this billing project. These service descriptions
may be attached to, and become a part of Schedule "A".
TMA Confidential Information 7 Contract Rev. 01.07.2025
SCHEDULE B - Pricing
The prices contained herein are based on an average annual usage of 46,800 regular Utility bills. Any
variance in the above quantities in excess of ten (10) percent per agreement year will be cause for a
price review. There will be no more than one production run per month for the above stated item.
Each Utility billing unit shall consist of the components described in Schedule A.
1B. VILLAGE regular Utility Bills will be laser imaged and mailed at a cost of $0.12028 cents per
Utility bill (excluding postage) for the 2025 year. 2026, 2027, 2028, 2029 will increase by 3.5%
annually using the $0.12028 price as a base. Prices are based on a monthly billing cycle.
Every month, TMA will bill approximately 3,900 utility accounts. The initial set-up and
programming fee shall be $1,495. Should VILLAGE require changes to the regular utility
bills, or require the addition of past due and/or shut off notices to be designed and implemented
at a later time than initial implementation, these set ups will be quoted at the time of work at
our prevailing programming rates.
2B. There will be a minimum charge of $475 per month on any billing file submitted for printing
that does not contain 1,500 pieces or more.
3B. The TMA PDF electronic Utility Bill archival/Adobe Acrobat retrieval system will be provided
at no additional cost.
4B. A separate insertion charge will be applied for any additional item inserted into the out -going
billing envelope. Insertion items must physically qualify for use on our insertion equipment.
The insertion charge is 3.5 cents per item. This charge does not include the cost of printing the
additional item(s) to be inserted.
5B. Should VILLAGE choose to provide the printed item to be inserted, there will be a $110 flat
handling charge added to the insertion cost of the item being provided. The insertion cost of a
VILLAGE provided insert will be 4.5 cents per item. The cartons should be properly labeled on
the outside showing full product description and quantity contained therein. Each shipment
must also contain a packing list with product description and quantity contained in each carton,
total cartons and total weight. The item must be properly packaged, folded and oriented for use
on a high-speed, multi -station document inserter. If items must be refolded or are not properly
boxed requiring manual intervention to prepare items for insertion, and hourly fee will be
quoted and billed to VILLAGE.
6B. With mutual written agreement, VILLAGE may authorize TMA to provide certain products
and services for new or revised projects. The TMA pricing structure for these projects may be
attached to, and become a part of, Schedule "B".
TMA Confidential Information 8 Contract Rev. 01.07.2025
Third
Millennium
N%miaw , Im opornted
CONFIDENTIALITY AGREEMENT
BETWEEN VILLAGE of LEMONT, IL
AND
THIRD MILLENNIUM ASSOCIATES, INC.
This agreement made and entered into this Str) day of "-Yl 1 , 2019
by and between Third Millennium Associates, Inc. (hereinafter referred to as "TMA")
and the Village of Lemont, IL (hereinafter referred to as "VILLAGE").
Whereas VILLAGE desires to keep in confidence all information pertaining to the
VILLAGE vehicle licensing billing files whereas TMA desires to keep in confidence all
technical and systems information.
Now, therefore, in consideration of the mutual covenants and agreements of each
party to the other as stated herein, it is mutually agreed among the parties as follows:
1. SYSTEM DESIGN VILLAGE will make available to TMA for the
purpose of evaluation and system development certain confidential information.
This information shall include but not be limited to name and address files, billing
amounts, and certain past due information.
2. CONFIDENTIAL DOCUMENTS VILLAGE shall give to TMA
confidential information and TMA shall make copies for internal purposes only.
All written information presented to TMA shall be and remain confidential.
3. CONFIDENTIAL ORAL DISCLOSURES VILLAGE shall inform
TMA through its representatives that a particular oral disclosure shall be deemed
confidential information.
4. TMA NON -DISCLOSURE TMA and its designated personnel will hold
in confidence all confidential information disclosed for the purpose of evaluating
its interest in establishing a business relationship with VILLAGE. Upon
establishing a desire to enter into a business relationship, all confidential
information shall continue to remain confidential. If no business relationship
should exist, all information shall be returned to VILLAGE by TMA and TMA
shall purge all files related to VILLAGE.
TMA Confidential Information
5. VILLAGE NON -DISCLOSURE TMA shall snake available to
VILLAGE orally and / or in writing, details regarding the design and
functionality of TMA's software and systems. These shall be held in strict
confidence by VILLAGE and shall not in any way be shared with or
disclosed to a third party other than as required by law.
In no instance, during or at any time after the conclusion of this agreement, shall TMA
offer for sale or in any other manner disclose to any third party the VILLAGE billing files
or past due file or any other such VILLAGE files, whether written or in electronic format.
AUTHORIZATION
THIRD MILLENNIUM ASSOCIATES, INC.
Si ,nature:
Name: Elizabeth S. Adducci
Title: Vice President
Date: March 28, 2019
VILLAGE OF LEMONT, IL
Name: C2otctiL stkfis f
Date: Apr,\
TMA Confidential Information 2