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Minnetrista council approves three-year mailing services agreement with InfoSend, 4-1, contingent on removing discontinuance fee
Summary
Council approved a three-year master services agreement with InfoSend to print and mail monthly utility bills (approx. $0.80/piece) by a 4-1 vote after negotiating contingency language to remove or reduce a two-month discontinuance fee and require notice and negotiation for fee increases.
The Minnetrista City Council voted 4-1 on May 18 to approve a three-year master services agreement with InfoSend for monthly printing and distribution of water, sewer and stormwater mailings, contingent on staff negotiating removal or reduction of a two-month discontinuance fee and securing reasonable notice for any fee increases.
City staff described the contract as a way to streamline the impending transition from quarterly to monthly billing. The fee schedule included an approximate per-piece cost near $0.80; however, multiple councilors raised concerns about contract clauses that permit annual fee increases tied to materials, labor and overhead and a discontinuance fee equal to two months of the citys average monthly billing for the prior six months.
City attorney Sarah Sansala and staff said the agreement requires InfoSend to notify the city of fee adjustments and negotiate in good faith; if the parties cannot agree the contract allows either side to terminate with notice (the contract references up to 180 days in some termination clauses). Council discussed the risk of a volume-based renegotiation provision that would enable InfoSend to change fees if mailing volumes deviate by more than 30% from represented levels.
Council directed staff to negotiate the removal (or reduction to one month) of the discontinuance fee and to secure clear notice and negotiation rights for any fee changes. The council motion to approve the agreement included that contingency; after votes and discussion the motion passed 4-1 (one councilor opposed). Staff will finalize negotiations with InfoSend and report back if the vendor refuses the requested contractual changes.
Councilors said the arrangement should free staff time from manual mailing tasks and better support monthly billing going forward, but they reserved the right to revisit the contract if InfoSend proposes unreasonable increases.
