HomeMy WebLinkAboutContracts & Agreements_133-2012_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 17th day of July, 2012 ("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 contained herein,
City and Consultant agree as follows:
ARTICLE I —ENGAGEMENT OF CONSULTANT
1.L City hereby engages Consultant to provide pickup and processing of first class metered
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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 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 maintained 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 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 Consultant information in its possession that may assist
Consultant 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 City Manager staff as City's representative with respect to performance
of the Courier portion of Services, and the Utility Customer Service staff as City's
representative with respect to performance of the weekly Utility Billing portion of
Services, and such staff shall have the authority to transmit instructions, receive
information, interpret and define City's policies and decisions with respect to
performance of the Services.
ARTICLE 4—PAYMENTS TO CONSULTANT
4.I. The total compensation for Consultant's performance of the Services shall not exceed
the amount of Seventy-eight thousand dollars($ 78,000.00) for fiscal year 2012-13. City
shall pay Consultant 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 2012-13. Both Exhibits"C"and "D"
are attached hereto and incorporated herein by this reference.
4.2. Consultant shall submit, at least monthly, invoices to City describing the Services
performed during the billing period. Consultant's invoices shall include a brief
description of the Services performed,the dates the Services were performed, and a
description of reimbursable expenses related to the Services rendered. City shall pay
Consultant no later than thirty(30) days after receipt and approval by City of
Consultant'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 Deven Chudasama
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 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 prior
written notice to City.
5.2. Consultant shall secure and maintain Workers' Compensation and Employer's Liability
insurance throughout the duration of its performance of the Services 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.
5.3. Consultant 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. Consultant shall secure and maintain professional liability insurance throughout the term
of this Agreement in the amount of One Million Dollars ($1,000,000)per claim made.
5.5. Consultant 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 Consultant owned
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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.
5.6. 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
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attorneys' fees, arising from injury or death to persons or damage to property occasioned
by and negligent act, omission or failure to act by Consultant, its officers,employees and
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agents in performing the Services.
ARTICLE 6-CONFLICTS OF INTEREST
6.1. 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 in real property or investment that would be affected in any manner or
degree by the performance of Consultant's Services. Consultant 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. Consultant agrees it is not a designated employee within the meaning of the Political
Reform Act because Consultant:
A. Does not make or participate in:
(i) the making or any governmental governmental decisions regarding approval of a
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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,
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 Consultant must disclose its financial
interests,Consultant 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. Consultant 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. Consultant 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 Consultant or Consultant's employees.except as herein
set forth. Consultant shall supply necessary tools and instrumentalities 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 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 in
any capacity whatsoever as an agent, nor shall Consultant have any authority, express or
implied, to bind City to any obli(ration.
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 thirty(30)days prior
written notice to Consultant (delivered by certified mail, return receipt requested)of
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City's intent 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 termination 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.Consultant shall
be compensated on a pro-rata basis for Services completed up to the date of termination.
7.5. Consultant 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
Consultant pursuant to this Agreement. Such books shall be available at reasonable times
for examination by City at the office of Consultant.
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 Aareement shall be in writing, approved by City and signed by
City and Consultant.
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 Consultant have
signed in confirmation of this Agreement.
CITY OF REDLANDS
By:
By:
Pete Agult ar, Mayor
Attest:
Sam In-vin.City Clerk
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EXHIBIT"A"
SCOPE OF SERVICES
I Consultant will provide courier service to City. Consultant 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. Consultant 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. Consultant 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 a all the mail from the City along with other customer's mail to
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Consultant's facility. Mail checkers and supervisor check and separate the letter and flat
mail for sorting a by machine, or by hand. The mail will be taken to the Multi-Line Optical
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Character Reader(MLOCR) for barcoding and sorting.
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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. Consultant 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. Consultant 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.Consultant will deliver mail to the Post Office the next day after we receive the bills.
11. The mail will be co-mingled and Consultant 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 day
adjustment of pickup and delivery will be required.
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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 Consultant.
6. City shall provide a fully executed USPS Form 8096 and Form 6014 to the Consultant
prior to Consultant's commencement of the Services to facilitate Consultant'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 Consultant with a six-month mailing and return envelopes to be stored
by Consultant at their facility for Utility Bill inserting services.
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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 Hall
Letter $0.007 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 $0.007 Per Piece
Postage Pass-Thru
Postage* $0.424 Per Piece
*Prevailing First Class Presorted Rate
Subject to change by USPS
EXHIBIT"D"
CURRENT T 1 SPS RATES
USPS is allowing 2 oz.presorted later at I oz.postage rate.
Rates for First Class Letter size mail at Presorted Rate(as follows).
Weight{dunces} Presorted Rate
0- 1 $0.424
1.1 -2 $0.424
2.1 -3 $0.674
3.1 -3.5 $0.799
Post Cards—a $0.280
a. Rate 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 Mass Flat size mail at 5-Digit rale(as follows).
Weight Not Over Digit Rate
I oz. $0.40
2 oz. $0.57
3 OZ. $0.74
4 oz. $0.91
oz $1.08
6 oz. $1.25
7 oz. $1.42
8 oz. $1.59
9 oz. $1.76
10 o . $1.93
11 oz. $2.10
12 oz. $2.27
13 oz $2.44
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EXHIBIT"E"
WORKERS" COMPENSATION INSURANCE CERTIFICATION
CERTIFICATE OF LIABILITY INSURANCE 7/1112012
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