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HomeMy WebLinkAbout19-City Administrator 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 1 2 3 4 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 14 15 16 17 18 19 20 21 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 28 RESOLUTION AU' )RI ZING AGREEMENT WITH MAl ,ORT, INC. 1 2 3 4 5 6 city Clerk The foregoing resolution is hereby approved this , 1993. day of Tom Minor, Mayor city of San Bernardino 7 8 Approved as to form and legal content: 9 JAMES F. PENMAN 10 city At,orney : Y/ ?--f By: ~,.../}.".....) / .; '---'7A.................. {I 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -2- 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. 7 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 2 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. 15 11111 16 IIIII 17 IIIII 18 IIIII 19 IIIII 20 11111 21 11111 22 IIIII 23 IIIII 24 IIIII 25 IIIII 26 IIIII 27 11111 28 IIIII 3 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: 4 5 city Clerk 6 7 8 9 10 Approved as to form and legal content: 11 12 JAMES F. PENMAN City Attorney 13 !2 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4 CITY OF SAN BERNARDINO By: Mayor MAILSORT, INCORPORATED By: