HomeMy WebLinkAboutContracts & Agreements_143-2013_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 July, 2013 ("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 I —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.
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 Tyron, 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.
I
I\ca\d-im\Aareemen&,1n1a--1d Presort Professional Sm icesagreement 2013,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 One Thousand Three Hundred Dollars ($81,300) for fiscal year
2013-14. 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 2013-14. 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 (3)0)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 Contractor
N. Enrique Martinez, City Manager Nick R. Chudasama, Owner
City Manager's Department Inland Presort and Mailing Services
Citv 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.
W
5.2 Contractor shall secure and maintain Workers' Compensation and Employer's Liability
insurance in accordance with the laws of the State of California, with an insurance
carrier acceptable to City as described in Exhibit"E." entitled "Workers' Compensation
Insurance Certification,"which is attached hereto and incorporated herein by this
reference.
2
P,cakd.jmkA9reements%1n1and Presort Professional Services agreement 2013,doc
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 or participate in:
(i) the making or any City governmental decisions regarding approval of a
rate, rule or regulation, or the adoption or enforcement of laws;
(ii) the issuance, denial, suspension or revocation of City permits, licenses,
applications, certifications, approvals, orders or similar authorization or
entitlements;
(iii) authoring City to enter into, modify or renew a contract;
(iv) granting 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) granting City approval to a plan,design, report, study or similar item;
(vi) adopting, or granting City approval of policies, standards or guidelines for
City or for any subdivision thereof.
3
f:',ca',dJmkAgreements'%InIand Presort Professional Smices agreement 2013_d€e
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 Clerks' 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 all 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
be compensated on a pro-rata basis for Services completed Lip 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
4
1\ca%dJm!Agreements1,1n1and Presort Professional Services agreement 2013,doe
(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.
tn
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
A
C7,
"Q
Pete AguilaP,Mayor Nick R. Chudasama, Owner
ATTEST:
—
Sam Irwin.k6t),Clerk
5
1',cakdim"Agreements\Iffland Presort Professional Services agreement 2013 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 Brookside Post Office and 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.
Z:�
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 per piece rate.
12. In the event of an observed legal holiday by the City or USPS, a one or two daN,
adiustment of pickup and delivery will be required.
A-I
I',ca'4nT\Agreements\1n1and Presort Prot'essional Se",,ices agreement 2013doc
EXHIBIT"B"
CITY RESPONSIBILITIES
I. 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.
Z�l
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 Authorizaiton"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.
B-I
l:\ca',qjm'Agreernen&,Jn1and Pre-sort Professional Services agreement 2013,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)
Dailv First Class Mail Pick up from Citv Hall
Letter $0.008 Per Piece
Flat $0.407 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 $0.008 Per Piece
Postale Pass-Thru
Postage* $0.433 Per Piece
*Prevailing First Class Presorted Rate
Subject to change by USPS
C-1
ni'Ap eemen&lln land Presort ftofies'sional Services agreement 2013.doc
EXHIBIT "D"
CURRENT USPS RATES
USPS is allowing 2 oz. presorted letter at I oz. postage rate.
Rates for First Class Letter size mail at Presorted Rate (as follows).
Weight (ounces) Presorted Rate
0- 1 $0.433
1.1 -2 $0.433
2.1 —3 $0.683
3.1 —3.5 $0.808
Post Cards—a $0.281
a. Rates shown apply to each single or double postcard when originally mailed;reply
Z'
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),
Weip,ht Not Over 5-Digit Rate
I oz. $0.406
2 oz. $0.606
OZ. $0.806
4 oz. $1.006
5 oz. $1.206
6 oz. $1.406
7 oz. $1.606
8 oz. $1.806
9 oz. $2.006
10 oz. $2206
11 oz. $2.406
12 oz, $1606
13 oz. $2.806
D-1
lAcaAnmiAgreemen&\lnland Presort Professional Service-,agreement 2013,doc
EXHIBIT"E"
WORKERS' COMPENSATION INSURANCE CERTIFICATION
ACC>Riba
%-.� CERTIFICATE OF LIABILITY INSURANCE
THIS CERTIFICATE 13 ISSUED AS A MATTER Of INFORMATION ONLY AND CONFERS 140 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 INSURA14CE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTNORIZEO
REPRESENTATIVE OR PRODUCER.AND THE CERTIFICATE HOLDER.
IMPORTANT: if the roMficins hotd*r Is an ADDITIONAL INSURED,the poticy(Iss)must be endorsed. If SUBROGATION 13 WAIVED,auiijoct to
the tarns and conditions of the policy,cattAln policies may require an andorsaarant. A statement on thIs,:snificatei do**not tonotor rights to the
cortiff"te harder in lieu of such endorwarrsangs).
POODUCEA 2ZCTJulia ttylYak
1
Caldwell & Moreland Insurance Services DSA PHONE
2 1&", (909)702-8950
Arroyo Insurance Services E4AAk
juliorliIerroyotne.cow
1654 Plum La" wsva s A"OftDiNG COWOA" Marc#
Rardliande CA 92314-4532 'NrjRtR A TwOhnolo" Insurance �. 1336
INSURED ImNep 0
inland Presort and Meiling Services INSLAMA C
2025 West Park Avenue #7 INSOR"0:
INSURER C
Redlands CA CA 92373 INSURER F
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
I
IHIS IS TO CERTIFY THAT THE PM)CIES Or INSURANCE LISTED BELOW HAVE BEEN ISSUED TO T14E INSURED NAMED ABOVE FOR THE POLICY REIYILiie
SiDICAIED- NOTWITHSTANDING ANY oewpfmENT,TERM OR CONDIVON OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUeUECT TO ALL THE TER-W
EXCLUSIONS AND CONDITIONS OF SUCH POLICWS LIMITS SHOWN MAY HA"t BEEN REDUCED BY PAID CLAWS,
IW WUMI -
Y LT. TYpe OF INSURANCE NUMSER
T
I LJW"
GfNE"L UAMUTY EACH OCCURIUiNCIE s
C0MkWRCbAL GENERAL LIABILITY
ME*fXP
Per, AA&Abvqieinv a
(ANekAL AaGT*GATC a
GWL K-GRECATf L*41T APPLIES PEW PRODUC I S-COMFX)P AGO S
I
POLICY :.00 %
A.. OWLY RUURY"p.pjI
ALL ——-i—*---
OWNED CHEDULED 'URy jP05f au AUTOS AUTOS
&JOILY"q
NON-01UNED ""�CE-
KffMD AUTOS AUTOS
UMBRELLA I"
ja EACH Or-CupikElmr—E Is
EXMS UAS
n9---W-- I A13CRECATE
MO WER'.0.I; Is
A WORAERSCOM"NSARON X
YIN IJSTAO
Tet.
EWLOYC-XV LIABILITY
ANY F—T EL EACH ACC NT 1::: l .. 0-0OFICEPWMR EMU06VI .NIA �1p
ik—d."1Wit -,
3336688 .Li 2!291? ..2/X12013 EL ES -SE FAESMLt7Y€ S
1400 000
d—A. -4v
E,NSEASE POLICYLKAT I 1.400 OD�j
DESCftWTIOMOFCPC"TIONSILOCAIMMIYEiRCUS Recewed
kT4 - 2 2317
i
rt} swers(it-ice
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRiSED POLICIES aE CA14CELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WALL BE DELIVERED IN
City of Rodlands ACCORDANCE WITH THE POLICY PROVISIONS-
Xttnt Karin Grance,
P.O. Box 3005
Redlands, CA 92373
A"o *y`b**/1ML1S
ACORD 2S(2010105) 401988-2010 ACORD CORPORATION. All r!"rasa ;V
INS025€"Inwo-, The ACORD narrm and Togo ate registered marks of ACORD
E-I
1:'Czi',diiii',A--reements\lnland Presort Professional Services agreement 2013,doe