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CITY OF SAN BERNI 1DINO - REQUEST F{ 1 COUNCIL ACTION
From:
Fred Wilson
Assistant City Administrator
Subject: Agreement with Mailsort Services
for presorting services.
Dept:
Date:
November 17, 1993
Synopsis of Previous Council action:
Recommended motion:
Adopt resolution
~-"
Contact person:
Laurie Cannis
Phone:
5122
Supporting data attached:
yes
Ward:
FUNDING REQUIREMENTS:
Amount:
Source: (Acct. No.!
(Acct. DescriPtion)
Finance:
Council Notes:
75.0262
Agenda Item No J q
CITY OF SAN BERNA[ 'INO - REQUEST FO . COUNCIL ACTION
STAFF REPORT
This agreement is a 6 month pilot project with Mailsort, Inc. to provide mail sorting services for
the City. It is anticipated that this service will allow the City's mail to be sorted and sent more
efficiently at a lower postage rate which will save the City approximately $6,500.00 on postage
per year.
Mailsort, Inc. is a pre-sort bureau which will barcode mail for the City of San Bernardino while
giving the City a reduced rate on postage. Mailsort receives a 4.2 cents savings on postage from
the U.S. Post Office because they deliver the mail to the post office barcoded, thus saving the
post office a step in mail processing. Mailsort, Inc., in turn, passes on the savings to their
customers by offering them 2.1 cents savings on their postage and keeping the other 2.1 cents
as payment for their services.
The mailroom sends out approximately 6,020 pieces of mail per week which would qualify for
Mailsort Services. By utilizing Mailsort Services we would save approximately $126.00 per
week which would total approximately $6,575.00 in savings on postage for one year.
Mailsort, Inc. is a member of the Women's Business Enterprise and has been named as one of
the Top 100 woman-owned business in Los Angeles County by the Los Angeles Business
Journal. Mailsort's services are utilized by other cities such as Ontario, Pomona and West
Covina as well as The Sun Telegram, locally. The City of Pomona has praised their service as
being "very responsible".
This pilot project has been reviewed by Fred Hickey, Print Shop Supervisor, Barbara Pachon,
Finance Director, as well as all other pertinent individuals. The project has met with their
approval as well as recommendation for implementation.
5-0264
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AN
AGREEMENT WITH MAILSORT, INCORPORATED, FOR PRESORT MAIL SERVICES.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
5 SECTION 1. The Mayor of the City of San Bernardino is hereby
6 authorized and directed to execute, on behalf of said City, an
7 agreement with Mailsort, Incorporated, for presort mail services,
8 a copy of which is attached hereto, marked Exhibit "A" and
9 incorporated herein by reference as fully as though set forth at
10 length.
11 SECTION 2. The authorization to execute the above referenced
12 agreement is rescinded if the parties to the agreement fail to
13 execute it within sixty (60) days of the passage of this
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resolution.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the city of San
day
meeting thereof, held on the
Bernardino at a
, 1993, by the following vote, to wit:
of
ABSTAIN
ABSENT
NAYS
Councilmembers
AYES
NEGRETE
22 CURLIN
23 HERNANDEZ
24 OBERHELMAN
25 DEVLIN
26 POPE-LUDLAM
27 MILLER
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RESOLUTION AU' )RI ZING AGREEMENT WITH MAl ,ORT, INC.
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city Clerk
The foregoing resolution is hereby approved this
, 1993.
day of
Tom Minor, Mayor
city of San Bernardino
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8 Approved as to form
and legal content:
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JAMES F. PENMAN
10 city At,orney :
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By: ~,.../}.".....) / .; '---'7A..................
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1 AGREEMENT
2 THIS AGREEMENT is made and entered into this day of
3 ' 1993, by and between the CITY OF SAN BERNARDINO, a
4 municipal corporation, and MAILSORT, INCORPORATED, a private
5 corporation, hereinafter referred to as city and Mailsort,
6 respectively.
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8 NOW THEREFORE, the parties hereto agree as follows:
9 section 1. The city will provide mail upright in trays with
10 all envelopes facing in the same direction. Mail is to be sealed,
11 with the correct meter postage affixed at the discount rate, and
12 appropriate date, including the "presorted" and/or "drop shipment"
13 notations. City will provide a daily item count; and
14 section 2. The city agrees that, during the term of this
15 Agreement, all of the City's presort mail services shall be
16 provided by Mailsort; and
17 section 3. The city agrees to provide approximately 25,000
18 pieces of mail per month; and
19 Section 4. Mailsort will pick up presorted mail without
20 charge, between 4:00 p.m. and 4:30 p.m. Monday through Friday
21 (excluding Postal holidays), presort the mail according to postal
22 regulations, and will deliver all mail to the postal service on the
23 correct postmark date; and
24 section 5. Mailsort will furnish weekly invoices showing the
25 total number of pieces handled, the number of pieces qualifying for
26 discount "Qualified Mail", the number of pieces of "Non-Qualified
27 Mail", and additional postage paid. Invoices are payable upon
28 11111
1 receipt as agreed. If not paid within thirty days after
2 presentation, the unpaid balance of invoices shall bear interest at
3 the rate of 1. 5% per month. ci ty understands that the minimum
4 weekly invoice is $75.00; and
5 Section 6. The City agrees to pay Mailsort a service fee of
6 $0.21 for each 1-2 oz. letter-sized piece of qualified mail and
7 $0.05 for each 3-8 oz. flat-sized piece of qualified mail and also
8 the additional postage paid on City's behalf for non-qualified
9 mail; and
10 section 7. Mailsort will not divulge or make use of any
11 information it learns pertaining to City's mail; and
12 section 8. Mailsort will be responsible for City's mail while
13 on Mailsort I s premises. Mailsort shall carry insurance coverage of
14 $1,000,000.00 per occurrence for the fair and reasonable costs
15 incurred by the City in connection with the reconstruction of lost,
16 damaged or destroyed items; and
17 section 9. The city shall be responsible for any penalties or
18 additional fees charged by the postal service as a result of
19 improper address, postage, date or zip code; and
20 section 10. Mailsort will not be liable for loss of postage
21 savings should it be unable to provide sorting services as a result
22 of an act of God, equipment failure, or other event outside its
23 control. In the event of such an occurrence, Mailsort will
24 promptly notify and consult with City to determine appropriate
25 interim arrangements; and
26 section 11. If the presort discount amount established by the
27 Postal Service be altered in the future from the current level,
28 11111
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1 Mailsorts's service fees will be automatically adjusted to retain
2 the savings apportionment contemplated in this Agreement. For
3 example, if Mailsort's fee for an item of mail is 50% of the
4 presort discount, and if the presort discount is altered from the
5 current level, Mailsort's service fee will be automatically
6 adjusted to be equal to 50 % of the altered discount; and
7 section 12. The initial term of this Agreement is for a six-
8 month period, commencing on December 7, 1993. The term of this
9 Agreement shall be automatically renewed for successive periods of
10 one year each unless, no less than thirty days prior to the
11 expiration of the then current term, one party notifies the other
12 party in writing of its intention not to renew.
13 This agreement may be terminated at any time with thirty days
14 written notification by either party.
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AGREEMENT WITP MAILSORT INCORPORATED.
1 IN WITNESS WHEREOF, the parties hereto have executed this Agreement
2 on the day and date first above shown.
:I ATTEST:
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city Clerk
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10 Approved as to form
and legal content:
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12 JAMES F. PENMAN
City Attorney
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CITY OF SAN BERNARDINO
By:
Mayor
MAILSORT, INCORPORATED
By: