City of Boynton Beach
Agenda Item Request Form

Staff recommends approval of Proposed Resolution No. R26-193.

Since the City's original 2016 award to Bill2Pay, LLC (now Catalis Payments, LLC) under Resolution No. R16-062, the City's utility bills have been physically produced and mailed by DataProse, LLC, operating as Catalis' subcontractor. DataProse was a named, executing party to Exhibit E (Bill Printing and Presentment) of the Services Agreement approved by Resolution No. R24-177, which it signed on July 22, 2024. DataProse has since been renamed Matrix Enterprise Holdings, LLC d/b/a Matrix Imaging Solutions.

Catalis has exited the bill printing, mailing, and presentment line of business. Amendment No. 1 to the Catalis agreement deletes Exhibit E in its entirety and provides that Catalis shall have no obligation to provide, arrange, or be responsible for bill printing, mailing, or presentment services. The City is therefore left without a contracted producer for approximately 38,000 monthly utility bills and related Business Tax Receipt customer communications.

Agreement No. 26-108SS engages Matrix directly as the prime contractor for data processing, printing, mail finishing, and electronic delivery of utility bills and customer communications, for a three-year initial term with two one-year renewal options, with an annual amount not to exceed $320,000. Matrix executed the agreement on September 17, 2026. The agreement is a City-form document placing the vendor under Florida law and Palm Beach County venue; Chapter 119 Public Records obligations; sections 287.133, 287.135, 287.138, 448.095, 787.06(13), and 286.101, Florida Statutes; Local Government Prompt Payment Act terms under section 218.70; City ownership of all documents and work product; and a 90-day termination for convenience.

Section IX of the Purchasing Policy Manual permits award to one vendor, without competitive solicitation, when other sources exist but a single vendor is most advantageous to the City for reasons of standardization and to avoid unreasonable cost or inefficiency. This is a Single Source determination, not a Sole Source determination. The City acknowledges that transactional print and mail is a competitive market served by multiple national vendors and makes no claim that Matrix is the only capable source.

SINGLE SOURCE DETERMINATION

The determination rests on the following findings:

• Incumbency, not novelty. Matrix is the incumbent producer of the City’s bills under its prior name, DataProse, and is not a new vendor to the City. This award changes only its contractual position from subcontractor to prime contractor.
• Vendor-initiated change in position. The need for this award arose from Catalis' unilateral exit from bill printing, mailing, and presentment services, not from any City-initiated change in scope or vendor preference. No alternative performer is currently in place.
• Proprietary operational assets held by the incumbent. Matrix currently holds the developed composition programming, forms design, and data mapping for the City’s bill format; the City’s digitized logos and authorized signatures; the historical bill image archive; eBill enrollment and delivery records; and the established CASS, NCOA/Move Update, Intelligent Mail Barcode, and SFTP transmission configurations.
• Cost and risk of transition. Transitioning to another vendor would require re-onboarding the application — Matrix’s own scope of work provides up to 80 hours of programming for a typical implementation — re-issuing bill formats, re-enrolling electronic bill subscribers, and transferring the prepaid postage account, while risking interruption to a billing cycle that drives Utility Enterprise Fund revenue.
• Defined re-competition horizon. The three-year initial term with two one-year renewal options is materially shorter than the prior five-year-plus-five-renewal structure under the Catalis agreement, establishing a bounded point at which this scope can be competitively re-solicited.

Unit pricing is held at the 2024 rate of $0.12 per bill package, now bundled to include data processing, perforated coupon stock, full-color printing on both sides, outgoing and return envelopes, and folding, inserting, presorting, and USPS delivery. Bill image access improves from $1,500 per month to a $1,500 annual API fee. The programming rate is unchanged at $160 per hour. Procurement Services finds these rates fair and reasonable based on continuity of 2024 pricing, the expanded scope now bundled into the per-piece rate at no increase, and the substantial reduction in the bill image access fee.

This award is presented concurrently with Amendment No. 1 to the Catalis agreement, which reduces that contract from $420,000 to $100,000 annually. Combined annual authorization across both agreements is $420,000, unchanged from Resolution No. R25-069.

This action ensures uninterrupted production and delivery of approximately 38,000 monthly utility bills and related Business Tax Receipt customer communications following Catalis' exit from bill printing, mailing, and presentment services. Matrix continues in its existing operational role now as prime contractor rather than subcontractor preserving continuity of the City's bill composition programming, forms design, data mapping, digitized logos and authorized signatures, historical bill image archive, eBill enrollment and delivery records, and established CASS, NCOA/Move Update, Intelligent Mail Barcode, and SFTP transmission configurations. Approval avoids a gap in performance for a billing function that drives Utility Enterprise Fund revenue collection, and the shorter three-year initial term establishes a defined horizon for future re-competition of this scope.

Utilities Account # 401-2825-536-49-17 is budgeted for these FYE 2027 expenditures.

001-2410-524.41-12 - approx. $18K

Building Department approx. $1,000 from account #130-2411-524-41-12

Code Enforcement approx. $2,000 from account #001-2412-524.41-12

Public Works approx. $3,000 - 431-2515-534-47.10 

Public Affairs - $2,500 - 001-1215-519-47.10

Also any other departments that would like to use this in the future.

Funds for the project are available in the Utilities Operations budget.