HomeMy WebLinkAbout14-Human Resources
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
Linn Livingston
Subject: RESOLUTION OF THE
MAYOR AND COMMON COUNCIL OF
THE CITY OF SAN BERNARDINO
AUTHORIZING A PURCHASE ORDER
TO SUCABA COMPANY, INC.
(SUCABA) FOR THE PROVISION OF
WORKERS' COMPENSATION AND
LIABILITY CLAIMS SOFTWARE
SERVICES.
Dept:
Human Resources
Date:
May 20, 2008
MICC Meeting Date: June 16, 2008
Synopsis of Previous Council Action:
On September 5, 2006, Mayor and Common Council approved Resolution No. 2006-
309 authorizing a Purchase Order to Sucaba in the amount of $35,400.
On November 6, 2006, Mayor and Common Council approved Resolution No. 2006-383
authorizing a Purchase Order to Sucaba in the amount of $42,000.
On August 27,2007, Mayor and Common Council approved Resolution 2007-360
authorizing a Purchase Order to Sucaba in the amount not to exceed $39,000.
Recommended Motion:
Adopt Resolution.
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Signatur~
Contact person:
Linn Livinaston
Phone:
384-5161
Supporting data attached: Yes
Ward:
FUNDING REQUIREMENTS: Amount:.
$43,000
Source: (Acct. No.) 629-453-5181 ($18,000)
678-452-5505 ($25,000)
(Acct. Description) Professional/Contractual Svcs
Finance:
Council Notes:
Agenda Item No. . .~
t,j,r,/IJi
OSUbiect:
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CITY OF SAN BERNARDINO - ReQUEST FOR COUNCIL ACTION
Staff Report
Resolution of the Mayor and Common Council of the City of San Bernardino authorizing a purchase order to
Sucaba Company, Inc. (Sucaba) for the provision of Workers' Compensation and Liability claims software
services.
Backl!round:
The Workers' Compensation Division has been technically supported by Sucaba for over seven years. Sucaba
provides us assistance in complying with the mandatory reporting requirements of the State of California and
our excess insurance carriers. The State of California continuously updates mandated reporting regulations,
necessitating the City's vendor, Sucaba, to make software changes to the reporting system.
The City of San Bernardino participates in the Big Independent Cities Excess Pool (BICEP) for purposes of
purchasing excess liability, property and workers' compensation insurance. It is a requirement of BICEP that
all participating cities must have a liability claims tracking system, which we now have through Sucaba The
City is in compliance with BICEP's requirements.
Sucaba provides contracted services for both the Workers' Compensation and Liability claims and has been
renewed by previous Resolutions 2006-309 and 2006-383. Sucaba has provided service for 476 workers'
compensation files and 132 liability claims at the current rate of $3.70. The City has been notified of a rate
"ncrease of$.30 effective April 1,2008. It should be noted as per the contract the rate increase does not exceed
"the consumer price index.
The Hu.man Resources Department is requesting that the City adopt the proposed rate of $4.00 per claim
effective April I, 2008 per the attached rate increase notification (Attachments "A-I" and "A-2").
Financial ImDact:
There is no additional financial impact for the remainder of fiscal year 2007-2008. Also, we are not anticipating
an increase to the fiscal year 2008-2009 budget because both the Liability and Workers' Compensation Division
maintain a total annual claims count of 500 workers' compensation and 146 liability claims respectively. Cost
will not exceed requested purchase order. The Human Resources Department is requesting a purchase order in
the amount of $43,000 for fiscal year 2008-2009 with two (2) one (1) year extensions.
Recommendation:
Adopt Resolution.
HR/ Agenda l1ems:SR.SUCABA.2008
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Resolution No
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING A PURCHASE ORDER TO SUCABA
COMPANY, INC. (SUCABA) FOR THE PROVISION OF WORKERS'
COMPENSATION AND LIABILITY CLAIMS SOFTWARE SERVICES.
4
5
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF
6 SAN BERNARDINO AS FOLLOWS:
7 SECTION 1: The Purchasing Manager is hereby authorized to issue a Purchase Order t
8 SUCABA Company, Inc. for software services for the Workers' Compensation and Liabilit
9 Divisions for a total amount not to exceed $43,000 for fiscal year 2008-2009 with two (2) one (1
10
year extensions.
11
SECTION 2: The Purchase Order shall reference this Resolution No. 2008--
12
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and shall read, "SUCABA Company, Inc. for the provision of workers' compensation and
13
liability claims software services, P.O. No.
, not to exceed $43,000," and shall
14
15
incorporate the terms and conditions ofthis Resolution.
16
SECTION 3: The authorization to execute the above mentioned Purchase Order is
17 rescinded ifnot issued within sixty (60) days of the passage of this Resolution.
18 III
19 III
20 III
21 III
22 III
23 III
24
III
0 25
III t-/6-lJg
III
III No . J '-t
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING A PURCHASE ORDER TO SUCABA
COMPANY, INC. (SUCABA) FOR THE PROVISION OF WORKERS'
COMPENSATION AND LIABILITY CLAIMS SOFTWARE SERVICES.
3
4
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
5
the Common Council of the City of San Bernardino at a
meeting thereof,
6
held on
day of
, 2008, by the following vote, to wit:
7
8
AVES
NAVES
ABSTAIN ABSENT
COUNCILMEMBERS:
9 ESTRADA
10 BAXTER
BRINKER
DERRY
KELLEY
II
12
13
JOHNSON
14 MCCAMMACK
15
16
Rachel G. Clark, City Clerk
17
18
The foregoing resolution IS hereby approved this
day of
19
,2008.
20
21
Patrick J. Morris, Mayor
City of San Bernardino
22
Approved as to form:
23
JAMES F. PENMAN,
24 City Attorney
25
genda Items:Reso.SUCABA.2008
ATTACBKEHT "A-I"
o .SucabaCompany,'nc.
RISK MANAGEMENT INFORMATION SYSTEMS
February 29, 2008
Rhonda P Haynes, Human Resources Department
City of San Bemardlno
300 North "0" Street
San Bemardino, CA 92418-0001
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Dear Rhonda,
It has been 7 years since we executed our original agreement to provide our
Claim Link software system to the City for processing of workers' compensation
claims, and 4 years since we last raised our prices. That agreement permits
price increases subsequent to 6/3012001 as long as those increases do not
exceed the consumer price index and do not cause the annual costs to the City
for these services to exceed $25,000.00. We now find that due to increasing
costs, we need to increase our charges correspondingly.
We are proposing an increase of $.30 per open claim per month to arrive at a
new rate of $4.00 per open claim per month, starting April 1, 2008. Based on
your traditional claim volume, this will still leave your annual costs a few. --
thousand dollars below the $25,000 annual cap. The percent increase comes to
a rate of 2 percent for each year since the last Increase. I have not verified the
consumer price index for each of these years, but feel very confident that this
rate is less than the consumer price index has risen during this same-time period.
If you have any questions, please call me. We thank you for your business, and
thank you for being one of our premier clients.
Very truly yours,
b~
Donald W. Mead
President
DWM:cm
~ f!@[;OWfiID --
MAR 04 2008
RISK MANAGEMEN1
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205 N. Second Avenue,Arcadia, CA 91006 Tel: (626) 574-6850 Fax: (626) 574-6890 hap:l/www.suaba.com
DEC-07-1996 02:24
P.02/02
ATTACIIKENT "A-2"
o .SuCabacompany,'n~
RISK MANAGEMENT INFO~MATION SYSTEMS
April 30, 2008
Mark J. Andres, RP A,
City orBan Bernardino
300 North ''0'' Street
San Bernardino, CA 92418-0001
Dear Mark,
It has bccm nearly 2 years since we executed our orlgi1la1 agreement to provide our
ClA.mr ;,,1< software system to the City for processing of liability claims. That agreement
permits price incresses subiequent to 613012005 as long as those incresses do not exceed
the consumar price iDcIox and do not cause the 8lll1ua1 costs to the City for these services
to ~cec:d $18,000.00. We aronow lppIOICiIing tho fourth 8lll1iversary of this agreement,
and because of incrasing costs, need to increase OlD' charges.
o
We are proposing an increase 01$.30 per open claim per month to arrive at a new rate of
$4.00 per open claim per month. B8SCCl on your trrIditionaI claim volume, this cost
inorase will be approy.mAttoly $45.00 per month, and will sti1l1eave your 8lll1ual costs at
less than halfofthe $18,000 annual <:lip. Thepereent increase comes to a rate of
approy;msrtely 3 percent for esch year since the last increase. I have not verified thesCOIlS1lllW price index for esch of'these years, but feel very confident that this rate is less
than the CODS\UD.er price iDdex has risen during this same time period.
If you have any questions, please call me. We thank you for your business, and thank
you for being one of our prorniar clients.
Very truly yours,
Donald W. Mead
President
DWM:cm
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20S N.s-MAw.....Arcaclia,CA9100& T":(626) 57...6850 Fax: (626) 57-4-6890 httpdlwww.s.cak.com
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AGREEMENT RISK MANAGEMENl
This AGREEMENT is, made and entered Inlo 11'1100, by and between the CllY OF
SAN BERNARDINO,'. munlcipll corporrion, hereinafter called .CITY: and SUCABA
COMPANY, INC., he...inaft8r called 'CONTRACTOR,' 794 Ellst Walnut Street. P..adena,
California 91101. CITY and C~NTRACTOR agree as follOWS:
1. CONTRACTOR s~1I perform service, If particularly described to provide data
procaslng software arxl'servic:es to the CITY, with the fallowing objectives:
A.. WHEREAS, CONTRACTOR is competent, uperienGed and able to
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perform said services; and,
B. WHEREAS, CONTRACTOR has provided the ITIOIt adVln.oUs and
besl r.ponlible proposal for ~ pfClYiding of such ,ervIOlS,
2. CITY sh811 pay to the CONTRACTOR a total of up 10 but not exceeding twenty-
five thousand dollars ($25,000) for the cost to implement this system for WQtkeIS'
ColJ'4l8nsation on In annuli bssis.
A. ,CONTRACTOR ,hall provlde ils ClaimLink Clail'l1$ Infonnatlon System
(ClaimLink) software '\0 ClTY vii 111 HP3000 eomputer server, for an unlimited period I"
ICCOrdllnce with the propoial speclllctllons, Purc:tlase Order and RFP p.O().04 and thIS
agreement at the fOIlow1ng'monthly rates:
S3:50,per month per open dalm on file.
B. The rate above shall be heklllxed for e periOd of approximately nine (\II
months s!aning 11'1100 _ 6130101. Subsecruently, Ihe rates may be inc:~a$ed, but nolI.'
exceed any rise in the consumer pric:e index. CITY agrees that in addition II shill bear the ~;t
, of any Ipec:~1 pUrpl>>e forms (checks, invoices, 1099', and the like) for hardcopy which it
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ufilizes, ."d wI! be.r the cost of the conmunicaticns link required to aeeess1tle Internet.
CONTRACTOR shill beer t/le cost of all "stock" fO/1TlS. end all equipment costs related direclly
to !he computer server at iII.lIe. Nt}' aystems development t/lat is not a part of the current.
software p.ckage. and which is done striclly for the benefit of CITY shell be billable by
CONTRACTOR at tM rete of nlnett.l\w dollatl ($95) per hour for systems design and eighty-
five dollars ($85) Pt!' hour (Qr prQgremming. CONTRACTOR .".11 provide The City of San
Bernardino. Risk M.nagement. with . monthly invoice in arrears and shall be provided
payment within thirty l30) days the,.trom. em' relllins the right to challenge all or any pelt of
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an invoice.
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3. Neither CONTRACTOR or CITY shall divulge or pubtish. or cause or permit to be
diVUlged or published: direclly or indirectly, to any third parties, any confidential intormation.of -
the other party, The term "contldanti.1 information" means any informltion or data relating to
research. dtvtlopment, trade sec:1811 lIfId bysine.. ,ft',irs of CONTRACTOR or CIlY Olher
than (a) information. and. data known to or possessed by either party prior to this
under,tanding. and (b) information and dala knoWn to or posltseed by, Of able to be
.scertai,..d or collected by. third pal'ly usin~ normal available means.
4. 91TY also ag""1I'I1t durin~ the term of s.rvi~,_.nd for a period of IWO (2) years
after termination of ..rvice, it shill not, without prior written eonsent of CONTRACTOR. hire
any employ.. of CONTRACTOR or its affiliates who was asaign.d to or perfo~d any service
for CITY in connection with this I.r,
~, CONTRACTOR agrees thlt City data maintained In the system is the pr~ of
CITY, and therefore, shall be surrendered to CITY at the conclusion of services
under this agreement in I file on 8mm cartridge tape or II an ~ectron~ file
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transfe,rt<f to tie CllY OW/' I I8lco link. . The file shall be ASCII witts comma
delimited fields; and will include a lIle layout document that de.crib.. Itle data In
detail, at no cost to the CITY.
6. While not ....lricting or limillng tile torwgolng. during the term of this AGreement,
CONTRACTOR shill maintain in efJllct policies of comprehensive pUbic, general, and
automobile lability Insurance, In the amount of $1,OOO,OOO.combl"ed lingle limit, and
stltutory worker's coinplnsation coverage. and slla. tile copies of Mid policies with the
CITY's Ritk Manag~ prior to underlaking Iny work under this Agr.ement The policies
thall Mme the CITY .. an additional insured and shaD provide for tell (10) day
nolification to ttie CITY if Hid policies are termirl8tld or materialy aJtered.
7. CONTRACTOR sh811 pelform work taIkI as dintctedby City of s.n Bernardino - -
Ri,k MlInllgement, but for ~lllnttnls and purpous, CONTRACTOR shall be an independent
contractor and not. an avent. or employee of the CITY.
8. In tile performalice of this Agreement and in the hiring and recruitment of
.mploy.ee, CONTRACTOR shall not discriminate on the basis of race, creed. color, religion,
sex, physical handicap,. eihnic baekQround or countly of arigln.
9. My notloe to be given pursuant to this Aoreement shill b. deposited with ltIe
.' .
. United Stetes Posllll Service. pOltage preplid and ~d,...,ed as follows:
TO THE eriY:
Rhond. Haynes
City or 8aI'I Bernardino Human Re50Urces Dept.
300 North '0" Str..t
San Bernardino, CA 92418
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AGREEMENT BElWEEN 'iHE CITY OF SAN BERNARDINO AND sueABA
COMPANY, INC., TO PERFORM SERVICES FOR THE CITY.
IN \MTNESS WHEREOF, the p8l1Iell hive uecutild this AGREEMENT on the
~ day of,' (')I"JC8~. 2000.
nc~d
~.,trctlllInD Manager
)1
Ja . I."". Director of
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CON I RACTOR:
B~hQ~Q
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TO;l'I.. P.0S
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AGREEMENT
This AGREEMENT is made and entered into 07/01/2004, by aDd between the CITY OF
SAN BERNARDINO, a municipal corporation, bereinafta' called "CITY," and
SUCABA COMPANY, INC., hereinafter called "CONTRACTOR," 205 North Second
Avenue, Arcadia, California 91006. CITY and CONTRACTOR. agree as Collows:
I. CONTRACTOR shall petfGnll ;.erv,cc. as panicuiarly ducri\x.cl to provide
data processing software and services to the CITY, with the following
objectives:
A. WHEREAS, CONTRACfOR is competent, experillDCed and able to
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perform said services; and,
B. WHEREAS, CONTRACTOR Will provide approXimately the same
scrviCOI C\lJt'CMtly provided Cor workers' compcmation claims
administration,
2. CITY shall pay to the CONTRACTOR a total ofup to but not exceeding
eighteen thousand dollars ($18,000) for the cost to implement this system for
Liability Claims processing on an 8ID\ua1 basis.
A. CONTR.ACfOR shall provide its ClaimLink Claims Information
System (C1aimLink) software to CITY via its HP3000 computer
server, for an unlimited period in accordance with the proposal
specifications, and this agreement, at the following monthly rates:
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$3.50 per month per open case on file.
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Cr.:l...C""nI"-'
B. The rate above shall be held fixed for a period of approximately twelve
(12) months starting 0710112004. Subsequently, the rates may be
increased, but not 10 exceed any rise in the Consumer Price Index.
CITY agrees that in addition it shall bear the cost of all computer
paper (including checb, invoices, 1099's and the like) for hardcopy
which it utilizes, and shall bear the cost of the communications link
required to access the Internet. CONTRACI'OR shall bear the cost of
all:"sto.ck'; rorinS, aud au- equipment coilS re1a1ed directiy to the
computer server at its site. Any systems development that is not a part
of the current software paclcage, and which is done strictly for the
benefit of CITY shall be billable by CONTRACI'OR at the rate of
Dinety-five dollars (S95) per hour for systemS design and eighty-five
dollan ($8S) per hour for prosramming. CONTRACI'OR shall
provide the City of San Bernardino, Risk ~....~gt"Uent, with a monthly
invoice in arrears and shall be provided payment within thirty (30)
days therefrom. CITY mains the right to "hRl1tmIC all or any part of
an invoice.
3. Neither CONTRACI'OR or CITY shall divulge or publish, or cause or permit
to be divulged or published, directly or indirectly, to 8DY third parties, any
confidential infonnatiOJl oftbe other party. The term "confidential
information" means any information or data relating to research. development,
trade secrets and business affairs of CONTRACTOR or CITY other than (a)
infonnalion and data known to or possessed by either party prior to this
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understanding, and (b) information and data known to or possessed by, or able
to be ascertained or collected by a thiId party usina normal available means.
4. CITY also agrees that during the term ofserviee, and for a period of two (2)
years after termination of service, it shall not, without prior writtm consent of
CONTRACTOR, hire any employee ofCONI'RACTOR or its affiliates who
was assigned to or performed any service for CITY in cnnn-tion with this
agreement.
5. CONTRACTOR agr_ ihai CITY'data miirifained in the system is the.
property of CITY, and therefore, sball be SUJ'I'elldercd to CITY at the
cone1usion of services under this agreement in a file on Smm cartridge tape, or
as an electronic file tranBferred to the CITY over an electronic link. The file
sball be ASCn with comma delimited fields, and will include a file layout
document that dcscn"bes the data in detail, at no coat to the CITY.
6, While not restricting or limiting the foregoing. during the term of this
Aareement, CONTRACTOR shall maintain in eft'ect policies of
comprehensive public, general, and automobile liability insurance, in the
amoWU ofS1,OOO,ooo combined single limit, and statutory workers'
compensation coverage, and aba1l file copies ofBBid pOlicies with the CITY's
Risk f,ARn"8"" prior to undertaking any work under this Agreement. The
policies shall name the CITY as an additional insured and aba1l provide for ten
(10) day notification to the CITY if said policies are terminated or materially
altered.
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7. CONTRACTOR shall perform work tasks as directed by City of San
Bernardino - Risk Managemlll1t, but for alllnteDts and pUIpOses,
CONTRACTOR shall be an independent contractor and not an agent or
employee of the CITY.
8. In the performance ofthi. Agreement and in the hirin& and recruitment of
employees, CONTRACTOR sball not discrimi...te on the basis ofrace, creed,
color, religion, sex, physical handicap, ethnic blekground or country of origin.
;.. Any notice to be given pUrsuant to tbis Apement iliau be deposited with the
United States Postal Service, postage prepaid and addressed as follows:
TO THE CITY: Mark: Andres
City of San Bc:mudino Human Resources Dept.
300 North "0" Street
SanBemardlno. CA 92418
~~;oC\ ~T_J_ta-""l:I(T
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~'d ..,tHOI
AGREEMENT BETWEEN TIlE CITY OF SAN BERNARDINO AND SUCABA
COMPANY, INC., TO PERFORM SERVICES FOR THE CITY.
IN WITNESS WHEREOF, the parties have executed this AGREEMBNT on the
3 ~ day of m7 .2004.
~G>(~ .
Linn Livingston, Director of H Resources
-'V ~~_-~
Tom Marek, Acting Director 0 .
Servic
Inc.
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DEC-07-1996 02'26
P.Bl/02
.Sucaba Cornpany.l,n~
RIlE M"'N,.t;.{"Ctoll l...r~O.lM...TION 5,.51("5
205 N, Second Avenue Arcadia, CA 91006
Date:
5h~
!F~coveT ~
Time:
To:
D ~~~A
From:
'D~j
Fax #: (\j:f) ~~l.\-- SYi,
Number of Pages Including Cover Sheet:
2-
Message:
t\-~ \.5 ~ LQ..'lP7'L l \~
~ ~A=Q.r,() . (-0 ~ IN\WLi'..
Problems with this faxl Conou;t Sucaba at:
Tel (626) 574-6850 Fax (626) 574-6890
http://www.sucaba.com
DEC-07-19'36 02: 26
P.02/02
o _Sucabacompany,'nc.
R I $ K M" N .. G 'E MEN TIN FOR 1'1 .. T ION S Y 5 T E 1'1 5
April 30, 2008
Mark J. Andres, RP A,
City of San Bornardino
300 North "0" Street
San Bernardino, CA 92418-0001
Dear Marlc,
It has been nearly 4 years siJlCC we executed OlD' original qreement to provide our
ClaimLink software system to the City for pIOCel'a'T1g of liability claims. That agreement
permits price increases subsequent to 613012005 as long as those increases do not exceed
the CODSUlIlel" price index and do not cause the annual costs to the City for these services
to exceed $18,000.00. We arenow approaching the fo\ath anniversary of this agreement.
and because of increa&ing colla, need to increase our charges.
-.
o
We are proposing lID increase of5.30 per open claim per month to IIl'rive at a new rate of
$4.00 per open claim per month. Based on your tJlIditional claim volume, this cost
increase will be *{Iployim-Iy $45.00 per month, and will still leave your annual costs at
less than half of the 518,000 IDDUal cap. The percent increase comes to a rate of
approximately 3 percent for each year since the last increase. I have not verified the
consmn. price index for each of these years, but fcol very confident that this rate is less
than the consumer price index has risen during this same time period.
If you have any questions, please call me. We thank you for your business, md thank
you for being one of our premier clients.
Very truly yours,
Donald W. Mead
President
OWM:cm
o
205 N. Second A_.Arcach. CA '1006 '1lII: (616) 574-6850 fix: (616) 57+68'0 Imp:/Iwww.sucaba.mnl
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