HomeMy WebLinkAboutContracts & Agreements_158-2019PS -1 1 (1.24 19)
AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This agreement for the provision of services associated with mailing and presort services
("Agreement") is made and entered in this 6th day of August, 2019 ("Effective Date"), by and
between the City of Redlands, a municipal corporation ("City") and Inland Presort and Mailing
Services ("Consultant") City and Consultant are sometimes individually referred to herein as a
"Party" and, together, as the "Parties " In consideration of the mutual promises contamed herein,
City and Consultant agree as follows
11
ARTICLE 1 — ENGAGEMENT OF CONSULTANT
City hereby engages Consultant to provide pickup and processmg of first class metered
and/or permit mail on a daily basis, and pickup utility bills to be folded, stuffed, metered
and mailed on a weekly basis for the City Manager's Office and Utility Customer Service
Division, services for City (the "Services")
1.2 The Services shall be performed by Consultant in a professional manner, and Consultant
represents that it has the skill and the professional expertise necessary to provide the
Services to City at a level of competency presently mamntamed by other practicing
professional consultants in the industry providing like and similar types of Services.
ARTICLE 2 — SERVICES OF CONSULTANT
2 1 The Services that Consultant shall perform are more particularly described in Exhibit
"A," entitled "Scope of Services," which is attached hereto and incorporated herein by
reference
2.2 Consultant shall comply with applicable federal, state and local laws and regulations m
the performance of this Agreement mcludmg, but not limited to, State prevailing wage
laws.
ARTICLE 3 — RESPONSIBILITIES OF CITY
3 1 City shall make available to Consultant information m its possession that may assist
Consultant m performing the Services as more particularly described in Exhibit "B",
entitled "City Responsibilities", which is attached hereto and incorporated herein by
reference
3.2 City designates Janice McConnell, or her authorized designee, as City's representative
with respect to performance of the couner portion of the Services, and Cindy Tryon, or
her authonzed designee, as City's representative with respect to performance of the
weekly Utility Billing portion of the Services, as City's representative with respect to
performance of the Services, and such person shall have the authonty to transmit
instructions, receive information, interpret and define City's pohcies and decisions with
respect to performance of the Services.
1
L.\ca\djm\Agreements\Inland Presort Professional Services agreement 2019-20 final.doc
PS -1 1 (1.24 19)
ARTICLE 4 — PERFORMANCE OF SERVICES
4 1 The term of this Agreement shall be for a period of one (1) year from the Effective Date
of this Agreement (the "Imtial Term") The City shall have the option to extend the
Initial Teiiii of this Agreement by two (2) additional one-year terms (each, an "Extended
Term"), on the same terms and conditions, by providing written notice to Consultant at
least thirty (30) days pnor to the expiration of the Initial Term or any Extended Term.
4.2 If Consultant's Services mclude deliverable electronic visual presentation materials, such
materials shall be delivered in a form, and made available to the City, consistent with
City Council adopted policy for the same It shall be the obligation of Consultant to
obtam a copy of such policy from City staff.
ARTICLE 5 — PAYMENTS TO CONSULTANT
5 1 The total annual compensation for Consultant's performance of the Services shall not
exceed the amount of one hundred thousand dollars ($100,000) for a period of one year
after the Effective Date, with two additional one-year renewal options bnnging the total
to an amount not -to -exceed three hundred thousand dollars ($300,000) City shall pay
Consultant on a time and matenals basis up to the not to exceed amount in accordance
with Exhibit "C" entitled ("Pnce List") attached hereto and incorporated herein by
reference
5.2 Consultant shall submit monthly mvoices to City describing the Services performed
during the preceding month. Consultant's invoices shall include a bnef description of the
Services performed, the dates the Services were performed, the number of hours spent
and by whom, and a descnption of reimbursable expenses related to the Services. City
shall pay Consultant no later than thirty (30) days after receipt and approval by City of
Consultant's invoice
5 3 Any notice or other commumcation required, or which may be given, pursuant to this
Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date
of delivery m person, (ii) five (5) days after deposit in first class registered mail, with
return receipt requested, (iii) on the actual delivery date if deposited with an overnight
couner; or (iv) on the date sent by facsimile, if confirmed with a copy sent
contemporaneously by first class, certified, registered or express mail, in each case
properly posted and fully prepaid to the appropriate address set forth below, or such other
address as a Party may provide notice in accordance with this section.
2
L:\ca\djm\Agreements\Inland Presort Professional Services agreement 2019-20 final.doc
City
City Clerk
City of Redlands
35 Cajon Street
P 0 Box 3005 (mailing)
Redlands, CA 92373
PS -1 1 (1.24 19)
Consultant
Nick R. Chudasama, Owner
Inland Presort and Mailing Services
2025 Park Avenue, #7
Redlands, CA 92373-6274
nchudasama:a).inlandpresort.coln
(909) 307-1300
ARTICLE 6 — INSURANCE AND INDEMNIFICATION
6 1 The following insurance coverage required by this Agreement shall be maintained by
Consultant for the duration of its performance of the Services. Consultant shall not
perform any Services unless and until the required insurance listed below is obtained by
Consultant. Consultant shall provide City with certificates of insurance and endorsements
evidencing such insurance prior to commencement of the Services. Insurance policies
shall include a provision prohibiting cancellation or modification of the policy except
upon thirty (30) days pnor wntten notice to City
A. Workers' Compensation and Employer's Liability insurance in the amount that meets
statutory requirements with an insurance carrier acceptable to City, or certification to
City that Consultant is self-insured or exempt from the workers' compensation laws
of the State of California. Consultant shall execute and provide City with Exhibit "E "
entitled "Workers' Compensation Insurance Certification," which is attached hereto
and incorporated herein by this reference pnor to performance of the Services.
B Comprehensive General Liabihty insurance with carriers acceptable to City in the
minimum amount of One Milhon Dollars ($1,000,000) per occurrence and Two
Milhon Dollars ($2,000,000) aggregate, for public liability, property damage and
personal injury is required. City shall be named as an additional insured and such
insurance shall be pnmary and non-contributmg to any insurance or self-msurance
mamtamed by City
C Busmess Auto Liability coverage, with minimum limits of One Million Dollars
($1,000,000) per occurrence, combined single limit bodily injury habihty and
property damage habihty This coverage shall include all Consultant owned vehicles
used in connection with Consultant's provision of the Services, hired and non -owned
vehicles, and employee non -ownership vehicles. City shall be named as an additional
insured and such insurance shall be primary and non-contributing to any insurance or
self-insurance maintained by City
D Consultant is expressly prohibited from assigning or subcontracting any of the
Services without the pnor wntten consent of City In the event of mutual agreement
by the Parties to assign or subcontract a portion of the Services, Consultant shall add
such assignee or subcontractor as an additional insured to the insurance policies
required hereby and provide City with the msurance endorsements prior to any
Services being performed by the assignee or subcontractor
L.\ca\dim\Agreements\Inland Presort Professional Services agreement 2019-20 final.doc
PS -1 1 (1.24 19)
6.2 Consultant shall defend, indemnify and hold harmless City and its elected officials,
employees and agents from and against any and all claims, losses or liability, including
attorneys' fees, ansing from injury or death to persons or damage to property occasioned
by any negligent act or omission by, or the willful misconduct of, Consultant, or its
officers, employees and agents in performing the Services.
ARTICLE 7 — CONFLICTS OF INTEREST
7 1 Consultant covenants and represents that it does not have any investment or interest in
any real property that may be the subject of this Agreement or any other source of
income, interest m real property or investment that would be affected m any manner or
degree by the perfoiniance of Consultant's Services. Consultant further covenants and
represents that m the performance of its duties hereunder, no person having any such
interest shall perform any Services under this Agreement.
7.2 Consultant agrees it is not a designated employee within the meaning of the Political
Reform Act because Consultant:
A. Does not make a governmental decision whether to
(i) approve a rate, rule or regulation, or adopt or enforce a City law;
(ii) issue, deny, suspend or revoke any City permit, license, application,
certification, approval, order or similar authorization or entitlement;
(iii) authorize City to enter into, modify or renew a contract;
(iv) grant City approval to a contract that requires City approval and to which
City is a party, or to the specifications for such a contract;
(v) grant City approval to a plan, design, report, study or similar item,
(vi) adopt, or grant City approval of, policies, standards or guidelines for City
or for any subdivision thereof.
B Does not serve in a staff capacity with City and in that capacity, participate m
making a governmental decision or otherwise perform the same or substantially
the same duties for City that would otherwise be performed by an individual
holding a position specified m City's Conflict of Interest Code under Government
Code section 87302
7.3 In the event City determines that Consultant must disclose its financial interests,
Consultant shall complete and file a Fair Pohtical Practices Commission Form 700,
Statement of Economic Interests, with the City Clerk's office pursuant to the wntten
instructions provided by the City Clerk.
ARTICLE 8 — GENERAL CONSIDERATIONS
8 1 In the event any action is commenced to enforce or interpret any of the terms or
conditions of this Agreement the prevailing Party shall, in addition to any costs and other
L.\ca\djm\AgreementsUnland Presort Professional Services agreement 2019-20 final.doc
PS -1 1 (1.24 19)
relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for the
use of in-house counsel by a Party
8.2 Consultant shall not assign any of the Services, except with the pnor wntten approval of
City and in strict compliance with the terms and conditions of this Agreement. Any
assignment or attempted assignment without such prior wntten consent may, in the sole
discretion of City, results in City's immediate termination of this Agreement.
8 3 Consultant is for all purposes under this Agreement an independent contractor and shall
perform the Services as an independent contractor Neither City nor its agents shall have
control over the conduct of Consultant or Consultant's employees, except as herein set
forth. Consultant shall supply all necessary tools and mstrumentalities required to
perform the Services. Assigned personnel employed by Consultant are for its account
only, and in no event shall Consultant or personnel retained by it be deemed to have been
employed by City or engaged by City for the account of, or on behalf of City Consultant
shall have no authority, express or implied, to act on behalf of City m any capacity
whatsoever as an agent, nor shall Consultant have any authonty, express or implied, to
bind City to any obligation.
8 4 This Agreement may be terminated by City, m its sole discretion, by providmg not less
than five (5) days pnor wntten notice to Consultant of City's mtent to terminate If this
Agreement is terminated by City, an adjustment to Consultant's compensation shall be
made, but (1) no amount shall be allowed for anticipated profit or unperformed Services,
and (2) any payment due Consultant at the time of termmation may be adjusted to the
extent of any additional costs to City occasioned by any default by Consultant. Upon
receipt of a termination notice, Consultant shall immediately discontinue its provision of
the Services and, within five (5) days of the date of the termmation notice, deliver or
otherwise make available to City, copies (in both hard copy and electromc form, where
applicable) of project related data, design calculations, drawings, specifications, reports,
estimates, summanes and such other mformation and materials as may have been
accumulated by Consultant in performing the Services. Consultant shall be compensated
on a pro -rata basis for Services completed up to the date of termination.
8 5 Consultant shall maintain books, ledgers, mvoices, accounts and other records and
documents evidencing costs and expenses related to the Services for a period of three (3)
years, or for any longer penod required by law, from the date of final payment to
Consultant pursuant to this Agreement. Such books shall be available at reasonable times
for examination by City at the office of Consultant.
8 6 This Agreement, including the Exhibits incorporated herein by reference, represents the
entire agreement and understanding between the Parties as to the matters contained
herein, and any pnor negotiations, written proposals or verbal agreements relating to such
matters are superseded by this Agreement. Except as otherwise provided for herem, any
amendment to this Agreement shall be in wntmg, approved by City and signed by City
and Consultant.
L.\ca\djm\Agreements\Inland Presort Professional Services agreement 2019-20 final.doc
PS 1 1 (1.24 19)
8 7 This Agreement shall be governed by and construed m accordance with the laws of the
State of California
8 8 If one or more of the sentences, clauses, paragraphs or sections contained in this
Agreement is declared invalid, void or unenforceable by a court of competent
Jurisdiction, the same shall be deemed severable from the remainder of this Agreement
and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or
sections contained herein, unless to do so would depnve a Party of a material benefit of
its bargain under this Agreement
IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed
m confirmation of this Agreement
CITY OF REDLANDS INLAND PRESORT AND MAILING
SERVICES
B
Paul W Foster, Mayor
Attest
e Donaldson, City Clerk
BY -(a-L-.---o)
Nick R Chudasama, Owner
L \ca\djm\Agreements\Inland Presort Professional Services agreement 2019-20 final doc
PS -1 1 (1.24 19)
EXHIBIT "A"
SCOPE OF SERVICES
Contractor will provide courier service to City Contractor will pick up the incoming
mail from City's two separate PO Boxes located at New York Post Office by 11 00 am
and will drop it off at City Hall, 35 Cajon Street, Redlands, CA 92373
2 Contractor picks up all first class letter and flat mail from City Hall, 35 Cajon Street,
Redlands, CA 92373, between 4 00 and 4 30 pm.
3 Contractor driver will check the delivery slip, tray count, etc. The driver will sign the
delivery slip and will return a copy to City for the records. The driver will keep letter and
flat mail separate.
4 The driver will bring all the mail from the City along with other customer's mail to
Contractor's facility Mail checkers and supervisor check and separate the letter and flat
mail for sortmg by machine, or by hand. The mail will be taken to the Multi -Line Optical
Character Reader (MLOCR) for barcodmg and sorting.
5 After barcodmg and sorting is done, the mail is randomly tested and verified by United
States Postal Service (USPS) officials. All the sorted mail is collected and put in a cage,
and dropped off at the San Bernardmo Distribution Center
6 All the first class mail will be delivered to USPS on the same day as it was picked up
7 Contractor will pick up every Thursday printed Utility Bills and reminder notices from
the City's Utility Customer Service Office. City does not need to sort m zip code order
8 Contractor will to -fold bill or notice, insert it along with return envelope and additional
insert if any to be inserted into the envelope provided by the City
9 The inserted bill will be sorted on the MLOCR along with the other mail.
10 Contractor will deliver mail to the Post Office the next day after we receive the bills.
11 The mail will be co -mingled and Contractor will pay the postage from their permit and
bill the City for the applied postage at the then current USPS pre-sorted first class rate.
12. In the event of an observed legal holiday by the City or USPS, a one or two day
adjustment of pickup and delivery will be required.
L.\ca\djm\Agreements\Inland Presort Professional Services agreement 2019-20 final.doc
PS -1 1 (1 24 19)
EXHIBIT "B"
CITY RESPONSIBILITIES
City shall meter all first class mail at prevailing pre-sorted first class rate as approved by
the USPS
2. City shall place all metered mail in USPS supplied trays or tubs facing the same
direction. The City will keep full postage mail, flat size mail or any special mail separate
from its pre-sort mail.
3 City shall apply proper endorsements such as pre-sorted first class and current date for all
first class metered mail as required by USPS
4 City shall provide accurate count of all pre-sorted first class metered and permit mail and
shall provide a signed copy of a mailing slip at the time of pick-ups.
5 City shall allow multiple pick-ups on heavy volume mailing days, if any, m order to
process the mail one time by the Contractor
6 City shall provide a fully executed USPS Form 8096 and Form 6014 to the Contractor
pnor to Contractor's commencement of the Services to facilitate Contractor's application
to USPS for Value Added Rebate and FastForward service on City's mail.
7 City shall obtain "Drop Shipment Authonzation" permit, if required, from USPS and
endorse all metered First Class Mail with proper penult number
8 City shall provide Contractor with a six-month mailing and return envelopes to be stored
by Contractor at their facility for Utility Bill inserting services.
8
L.\ca\dim\Agreements\Inland Presort Professional Services agreement 2019-20 final.doc
PS -1 1 (1 24 19)
Courier Service
Pick up incoming mail from
Two PO Boxes and deliver to
City Hall by 11 00 am
(Monday — Thursday & every other
Friday)
EXHIBIT "C"
PRICE LIST
Rate
$180 00
Daily First Class Mail Pick up from City Hall
Letter*
Flat*
Weekly Utility Billing Services
$0 017
$0 442
Unit
Per Week
Per Piece
Per Piece
Fold (1) $0 013 Per Piece
Insert (up to 2) $0 033 Per Piece
Meter $0 020 Per Piece
Each Additional Insert $0 012 Per Piece
Sort / Mail* $0 017 Per Piece
Postage Pass-Thru
Postage* $0 459
*Prevailing First Class Presorted Rate
*Subject to change when USPS changes postal rates
Potential Postage Savings — Packages / Priority Mail
Per Piece
Potential Postage Savings for Parcels / Packages $0 040 - $0.200 per piece
Potential Postage Savings for Priority Mail $0.250 - $0 400 per piece
The above prices will remain the same thru end of 2022 fiscal year
9
L.\ca\djm\Agreements\Inland Presort Professional Services agreement 2019-20 final.doc
EXHIBIT "D"
CURRENT USPS RATES
USPS is allowing the same presorted letter rates up to 3 5 ounces.
Rates for First Class Letter size mail at Presorted Rate (as follows)
Weight (ounces) Presorted Rate
0 — 3.5
Post Cards — a
$0 459
$0.280
PS -1 1 (1.24 19)
a. Rates shown apply to each single or double postcard when originally mailed, reply
half of double postcard must be designed for reply mail purposes only
Rates for First Class Flat size mail at 5 -Digit rate (as follows).
Weight Not Over 5 -Digit Rate
1 oz.
2 oz.
3 oz.
4 oz.
5 oz.
6 oz.
7 oz.
8 oz.
9 oz.
10 oz.
11 oz.
12 oz.
13 oz.
$0 486
$0 636
$0 786
$0 936
$1 086
$1.236
$1.386
$1 536
$1 686
$1 836
$1 986
$2 136
$2.286
L.\ca\djm\Agreements\Inland Presort Professional Services agreement 2019-20 final.doc
PS -1 1 (1.24 19)
EXHIBIT "E"
WORKERS' COMPENSATION INSURANCE CERTIFICATION
Every employer, except the State, shall secure the payment of compensation in one or more of
the following ways
(a) By being insured against hability to pay compensation by one or more insurers
duly authorized to wnte compensation insurance in this State.
(b) By securing from the Director of Industrial Relations, a certificate of consent to
self -insure, either as an individual employer, or as one employer m a group of
employers, which may be given upon furnishing proof satisfactory to the Director
of Industrial Relations of ability to self -insure and to pay any compensation that
may become due to his or her employees.
CHECK ONE
I am aware of the provisions of Section 3700 of the Labor Code which requires every
employer to be insured agamst liability for Workers' Compensation or to undertake self-
insurance in accordance with the provisions of that Code, and I will comply with such provisions
before commencmg the performance of the work and activities required or permitted under this
Agreement. (Labor Code §1861)
I affirm that at all times, m performing the work and activities required or permitted under
this Agreement, I shall not employ any person m any manner such that I become subject to the
workers' compensation laws of California. However, at any time, if I employ any person such
that I become subject to the workers' compensation laws of California, immediately I shall
provide the City with a certificate of consent to self -insure, or a certification of workers'
compensation insurance.
I certify under penalty of penury under the laws of the State of Cahfornia that the infoniiation
and representations made m this certificate are true and correct.
INLAND PRESORT AND MAILING SERVICES Date• 1 Zn 1 9%
By 91 :( (v G c4O a. ,
Nick R. Chudasama, Owner
11
L.\ca\djm\Agreements\Inland Presort Professional Services agreement 2019-20 final.doc