DATE: October 6, 2026
TO: Board of Supervisors
SUBMITTED BY: Mike Kerr, Director of Information Technology/Chief Information Officer
SUBJECT: Retroactive Revenue Agreement with City of Fresno for Mail Messenger Services
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a retroactive revenue Agreement with the City of Fresno for interoffice mail messenger services, effective July 1, 2025, through October 31, 2026, total not to exceed $85,792.
REPORT
There is no increase in Net County Cost associated with the recommended action. Approval of the recommended action will allow the County to provide and receive compensation for mail messenger services to the City of Fresno (City) retroactive to July 1, 2025 when payments for services were placed on hold by the City following delays associated with the City’s internal policies and subsequent contract negotiations. This item pertains to locations in District 3.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the County will not have a means of recuperating costs for mail messenger services provided to the City in accordance with the Board-approved FY 2025-26 and FY 2026-27 Master Schedule of Fees, Charges and Recovered Costs (MSF) rates.
RETROACTIVE AGREEMENT:
This Agreement is retroactive to July 1, 2025. Prior to entering into contract negotiations with the County, the City was required to resolve internal administrative requirements related to payment for the mail messenger services. Once those requirements were addressed, the City and County were able to proceed with contract negotiations to establish the terms of the recommended Agreement.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The recommended Agreement will provide up to $85,792 in revenue from the City for mail messenger services based on the FY 2025-26 and FY 2026-27 MSF rates approved by your Board. Sufficient appropriations and estimated revenues are included in the Information Technology Services Department (ITSD) Org 8905 FY 2026-27 Adopted Budget.
DISCUSSION:
The County, through ITSD’s Graphic Communication Services unit, has been providing mail messenger services to the City for over 15 years at the City’s request. Messenger service rates are based upon the MSF rates that are established and approved by the Board annually. The recommended Agreement provides that if MSF rates increase or change during the term of the recommended Agreement, the updated rates will automatically apply to the services provided when those updated rates are effective.
The FY 2025-26 rates for messenger services to the City increased to approximately $6,600 per month. As a result, the City was no longer able to pay for services, as the City has an internal policy that provides a $5,000 monthly threshold for making payments without a service agreement in place. During this time, the City and the County worked to resolve the payment issues and began contract negotiations for the recommended Agreement.
Approval of the recommended Agreement will enable the County to recuperate costs for mail messenger services provided to the City beginning July 1, 2025. The recommended Agreement contains a mutual indemnification clause and states that both parties are to maintain insurance policies, which are common in the County’s agreements with other public agencies. In addition, the recommended Agreement also has no Self-Dealing Disclosure requirement, as this is an agreement with a city, not a corporation, so that requirement is inapplicable. ITSD believes that the benefits associated with entering into the recommended Agreement outweigh any potential risks, as a prudent business decision.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Revenue Agreement with City of Fresno
CAO ANALYST:
Amy Ryals