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HomeMy WebLinkAboutContracts & Agreements_180-2014_CCv0001.pdf AGREEMENT TO PERFORM MAILING AND PRESORT SERVICES This agreement for the provision of services associated with mailing and presort services ("Agreement") is made and entered in this 16th day of September, 2014 ("Effective Date"), by and between the City of Redlands, a municipal corporation ("City)" and Inland Presort and Mailing Services ("Contractor"). City and Contractor are sometimes individually referred to herein as a "Party" and, together, as the "Parties." In consideration of the mutual promises contained herein, City and Contractor agree as follows: ARTICLE 1 —ENGAGEMENT OF CONTRACTOR 1.1 City hereby engages Contractor to provide pickup and processing 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, respectively(the"Services"). 1.2 The Services shall be performed by Contractor in a professional manner, and Contractor represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional contractors in the industry providing like and similar types of Services. ARTICLE 2—SERVICES OF CONTRACTOR 2.1 The Services that Contractor shall perform are more particularly described in Exhibit "A", entitled "Scope of Services", which is attached hereto and incorporated herein by reference. 2.2 Contractor shall comply with applicable federal, state and local laws and regulations in the performance of this Agreement including, but not limited to State prevailing wage laws. ARTICLE 3 —RESPONSIBILITIES OF CITY 3.1 City shall make available to Contractor information in its possession that may assist Contractor in 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 courier portion of the Services, and Cindy Tryon, or her authorized designee, as City's representative with respect to performance of the weekly Utility Billing portion of Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City's policies and decisions with respect to performance of the Services. 1 I:\ca\djm\Agreements\Inland Presort Professional Services agreement 2014.doc ARTICLE 4—PAYMENTS TO CONTRACTOR 4.1 The total compensation for Contractor's performance of the Services shall not exceed the amount of Eighty-three thousand dollars ($ 83,000.00) for fiscal year 2014-15. City shall pay Contractor on a time and materials basis up to the not to exceed amount, in accordance with Exhibit "C" entitled "Price List" and U.S.P.S. rates based upon the current rates shown in Exhibit "D," entitled "Current USPS Rates". It is anticipated that a postal rate increase will occur during fiscal year 2014-15. Both Exhibits "C" and "D"are attached hereto and incorporated herein by this reference. 4.2 Contractor shall submit, at least monthly, invoices to City describing the Services performed during the billing period. Contractor's invoices shall include a brief description of the Services performed and the dates the Services were performed. City shall pay Contractor no later than thirty (30) days after receipt and approval by City of Contractor's invoice. 4.3 All notices shall be given in writing by personal delivery or by mail. Notices sent by mail should be addressed as follows: City Consultant N. Enrique Martinez, City Manager Nick R. Chudasama, Owner City Manager Department Inland Presort and Mailing Services City of Redlands 2025 Park Avenue, #7 35 Cajon Street, Suite 200 Redlands, CA 92373-6274 P.O. Box 3005 (mailing) Redlands, CA 92373 When so addressed, such notices shall be deemed given upon deposit in the United States Mail. Changes may be made in the names and addresses of the person to whom notices and payments are to be given by giving notice pursuant to this section 4.3. ARTICLE 5— INSURANCE AND INDEMNIFICATION 5.1 Insurance required by this Agreement shall be maintained by Contractor for the duration of its performance of the Services. Contractor shall not perform any Services unless and until the required insurance listed below is obtained by Contractor. Contractor 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 prior written notice to City. 5.2 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 provide City with Exhibit "C," entitled 2 lAca\djm\Agreements\lnland Presort Professional Services agreement 2014.doc "Workers' Compensation Insurance Certification," which is attached hereto and incorporated herein by this reference. 5.3 Contractor shall secure and maintain comprehensive general liability insurance with carriers acceptable to City. Minimum coverage of One Million Dollars ($1,000,000) per occurrence and Two Million 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 primary and non-contributing to any insurance or self-insurance maintained by City. 5.4 Contractor shall have business auto liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability. This coverage shall include all Contractor owned vehicles used in connection with Contractor'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. 5.5 Contractor 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, arising from injury or death to persons or damage to property occasioned by and negligent act, omission or failure to act by Contractor, its officers, employees and agents in performing the Services. ARTICLE 6—CONFLICTS OF INTEREST 6.1 Contractor 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 in real property or investment that would be affected in any manner or degree by the performance of Contractor's Services. Contractor further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement. 6.2 Contractor agrees it is not a designated employee within the meaning of the Political Reform Act because Contractor: 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 the 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; 3 1Aca\djm\Agreements\1nland Presort Professional Services agreement 2014.doc (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 in 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 in City's Conflict of Interest Code under Government Code section 87302. 6.3 In the event City officially determines that Contractor must disclose its financial interests, Contractor shall complete and file a Fair Political Practices Commission Form 700, State of Economic Interests with the City Clerk's office pursuant to the written instructions provided by the City Clerk. ARTICLE 7—GENERAL CONSIDERATIONS 7.1 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 relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for the use of in-house counsel by a Party. 7.2 Contractor shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms, and conditions of this Agreement. 7.3 Contractor is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor of its agents shall have control over the conduct of Contractor or Contractor's employees, except as herein set forth. Contractor shall supply necessary tools and instrumentalities required to perform the Services. Assigned personnel employed by Contractor are for its account only, and in no event shall Contractor 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. Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Contractor have any authority, express or implied, to bind City to any obligation. 7.4 Unless earlier terminated as provided for below, this Agreement shall terminate upon completion and acceptance of the Services by City; provided, however this Agreement may be terminated by City, in its sole discretion, by providing ten (10) days prior written notice to Contractor (delivered by certified mail, return receipt requested) of City's intent to terminate. If this Agreement is terminated by City, an adjustment to Contractor's compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment due Contractor at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Contractor. Upon receipt of a termination notice, Contractor shall immediately discontinue its provision of the Services. Contractor shall 4 1Aca\djm\Agreements\1n1and Presort Professional Services agreement 2014.doc be compensated on a pro-rata basis for Services completed up to the date of termination. 7.5 Contractor shall maintain books, ledgers, invoices, 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 period required by law, from the date of final payment to Contractor pursuant to this Agreement. Such books shall be available at reasonable times for examination by City at the office of Contractor. 7.6 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 prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, an amendment to this Agreement shall be in writing, approved by City and signed by City and Contractor. 7.7 This Agreement shall be governed by and construed in accordance with the laws of the State of California. 7.8 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 deprive a Party of a material benefit of its bargain under this Agreement. IN WITNESS WHEREOF, duly authorizes representative of the City and Contractor have signed in confirmation of this Agreement. CITY OF REDLANDS INLAND PRESORT AND MAILING SERVICES By: By: �-'" �-�-U e Pete Aguilar, Mayor Nick . Chudasama, Owner Attest: 4Samin, City Clerk 5 l:,catdjnMgreementsl[nland Presort Professional services agreement 2014.doc EXHIBIT"A" SCOPE OF SERVICES 1. 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 sorting by machine, or by hand. The mail will be taken to the Multi-Line Optical Character Reader(MLOCR) for barcoding and sorting. 5. After barcoding 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 Bernardino 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 in zip code order. 8. Contractor will tri-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. 6 i:\ca\djm\Agreements\inland Presort Professional services agreement 2014.doc EXHIBIT"B" CITY RESPONSIBILITIES 1. 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, in 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 prior 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 Authorization"permit, if required, from USPS and endorse all metered First Class Mail with proper permit 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. 7 1:1ca\djm\Agreemenlsllnland Presort Professional Services agreement 2014.doc EXHIBIT"C" PRICE LIST Rate Unit Courier Service Pick up incoming mail from $100.00 Per Week Two PO Boxes and deliver to City Hall by 11:00 am (Monday—Thursday& every other Friday) Daily First Class Mail Pick up from City Ball Letter $0.001 Per Piece Flat $0.422 Per Piece Weekly Utility Billing Services Fold (1) $0.010 Per Piece Insert(2) $0.025 Per Piece Meter $0.015 Per Piece Each Additional Insert $0.005 Per Piece Sort/Mail $0.001 Per Piece Postage Pass-Thru Postage* $0.460 Per Piece *Prevailing First Class Presorted Rate Subject to change by USPS 8 1:\ca\djmWgreements\Inland Presort Professional Services agreement 2014.doc EXHIBIT"D" CURRENT USPS RATES USPS is allowing 2 oz. presorted letter at 1 oz. postage rate. Rates for First Class Letter size mail at Presorted Rate(as follows). Weight(ounces) Presorted Rate 0- 1 $0.460 1.1 -2 $0.460 2.1 -3 $0.720 3.1 -3.5 $0.850 Post Cards—a $0.293 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. $0.451 2 oz. $0.659 3 oz. $0.867 4 oz. $1.075 5 oz. $1.283 6 oz. $1.491 7 oz. $1.699 8 oz. $1.907 9 oz. $2.115 10 oz. $2.323 11 oz. $2.531 12 oz. $2.739 13 oz. $2.947 9 1:\ca\djm\Agreements\lnland Presort Professional Services agreement 2014.doc EXHIBIT"E" WORKERS' COMPENSATION INSURANCE CERTIFICATION CERTIFICATE OF LIABILITY INSURANCE 111J6,76/24220ITYYI3 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED,the poliay(ies)must be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions Of the policy,certain Policies may require an endorsement. A statement on this certificate does not confer rights to the certiticato holder in lieu of such endorsements- PROouCERCONTA NAM , Julie xybak Kellogg & Moreland Agency, Inc. DHA PHONE (909)792-8950 rA%, .f99!)192.3030 Arroyo Insurance Sgrvicea .WAIL .Julier0arroycins.com 1654 Plum Lan® INSURER S AFFORDING COVERAGE MAIC a Redlands CA 92374-4532 IASURERA;TeC'hnol0 Insurance Cpm an 2376 INSURED INSU AERe Inland Presort and Mailing Services INSUER : 2025 west Park Avenue #7 INSURER O: INSURER E: I Redlands CA 92373 IN$URFRF, COVERAGES CERTIFICATE NUMBER: RmJOnua IRM; 510N NUMBER• THIS IS TO CERTIFY THAT THE roucics,OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMEO ABOVE FOR THE POUCY PERIOD INDICATED. NOTWTHSTANOINC ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT CR OTHER DOCUMENT WITH RESPECTTO VhHtCH THIS CERTIFICATE mAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN 15 SUBJECT TO RLL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES,LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. USSLTR U F LICN TYPEOFIIISURANCE iA DL EYw POUC YEXP PODGY NUMBER UMITS GENERAL LIABILITY EACHOCCVRRCNCF. f COMMERCIAL GENERAL LIAUILITY EMIL'EUS-111mak S CLAfN7fi-NADH OCCUR MED EXP HArt P'Sa PnaM S PERSONALLADV INJURY S GENERAL AGGREQAYE S CrWLAGGRECATEL111 APPLIES PER PRODUCTS•COIAPIOP ACG S 3 POLICY Prf7LOC S AUTOM01114e UAOILITY L INE 7 GLIM N ; ANY AUTO DO00_Y INJURY tPw penyll li P!1.OWNED SCFf0ULE0 AUTOS AU70S 8QOILY'NJURYiPara=iewul S HIRED AUTOS NON-OWNED DAMAGE AUTOS S 3 UMIIREtSA LIAR OLOUR FJtCN OCCURRENCE S EXCESS UAa CLAPAS,Mkor AGGREGATE S OFD RE7ENnONt A WORKERS COMPENSATION S AN09JAPLGYGRV LIAOILITYX Y„C STATU. OIH- ANY PROPRIETOWFARTNERIEXECUTIVE YIN OFFICEtrUEMSER EACLUCEO? NIA E.L.UCN ACCIDENT S 1 000 000 (Mantl.tcry In Nll) rWC3384018 11/1/2013 1.2/1/2015 EL DISEASE-EA EMPLOYE S_ 1,009.,,000 ii oi.dvscntro uFdar DFT.SCRWTION OF OPERATIONS fluor E.L.DISEASE-POLICY LRA/T S 1,000,000 OESCMPTION OPOPERAnQNS)LOCATIONS 1 VEHICLES(AttaeA ACORO IM.Ade&pan.t rt..r.S<hpd.da.It mora space h raQulretl) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of Redlands ACCORDANCE WITH THE POLICY PROVISIONS" Attnt Kaxin Orance P.O. $put 3045 AUTHORIZED RFPRESEJrTA7tVE Redlands, CA 92373 Julia RyhakJJULSs ACORD 25(2D1D/08) 01988.2010 ACORD CORPORATION. All rights reserved. INS025tzo+x5l of The ACORD name and logo are registered marks of ACORD 10 I:\ca\djm\Agreements\Inland Presort Professional Services agreement 2014.doc