Resolution 2025-05 authorizing the City Administrator to execute a multi-year contract with MoGo Express for the delivery of mail from the Post Office to recipients within the City for a new not to exceed amount of $270,000, granting the contract through June 30, 2025, with options to extend annually thereafter

In 2015 staff issued a Request for Proposals (RFP) for home delivery of mail, in response to the then perceived difficulties of home deliveries, with a three year not-to-exceed amount of $154,500 ($51,500 annually) to support a private mail courier service delivering and collecting mail for residents.  The resolution stated that the City wished to preserve its quality of life and community character, a part of which is the absence of house addresses and the use of post office boxes, whereas some residents were unable to collect their mail at the local post office.

In recent years, the City Council added an eligibility requirement that served to reduce the number of participants and overall cost.  In order to receive this free service, the participant must now fill out an application and provide a doctor’s note verifying that they are not able to pick up their own mail.

The contract with Peninsula Messenger Service has been extended a number of times across the years, most recently in July of 2024 after the lapse of the 2022 extension.  An analysis of Courier Cost Trends, which have continued to increase, are as follows:

At this time City staff is recommending the replacement of the existing contract. The existing contract can be ended with no penalties. The City will save will save an estimated $2,250 per month by doing this. As part of the next fiscal year’s budget, staff will be looking for Council’s direction as to whether this service should be continued to be provided at no cost to residents. The proposed contract will be structured so that only the remaining portion of this current fiscal year would be ‘guaranteed’. In order to continue providing courier service through fiscal year 2025-26, the City would need to approve the first option of the contract, and so on into years two and three. The conversation with Council as part of the budget discussions would inform this decision each year of whether or not to exercise the option to continue providing free courier service.    

The actual costs of services will vary based on the number of qualified participants. The estimated potential expenses under this contract are: