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HomeMy WebLinkAboutAgenda Report - September 7, 2016 C-09TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM C-9 AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with Pre -Sort Center, Inc. of Stockton, CA for Print, Insert and Mail Services in the Aggregate Amount of $204,248 MEETING DATE: September 7, 2016 PREPARED BY: Deputy City Manager RECOMMENDED ACTION Adopt resolution authorizing City Manager to execute Professional Services Agreement with Pre -Sort Center, Inc. of Stockton, CA for print, insert and mail services in the aggregate amount of $204,248. BACKGROUND INFORMATION: The City has historically printed utility bills and notices in-house. Folding, inserting and mailing of those bills and notices have been handled by Pre -Sort Center of Stockton, Inc. (Pre -Sort). The City has operated in this manner without a formal contract for at least the last 10 years. With the implementation of the Tyler Technologies MUNIS Utility Billing module, staff is recommending that the City outsource the printing of utility bills and notices and enter a contract for the full range of print, fold, insert and mailing services. Staff currently providing printing services will absorb other duties as the print function is outsourced. The City issued a Request for Proposals (RFP) for Print, Insert and Mail services on July 25, 2016. Potential vendors were required to register with the City before submitting proposals. Seven vendors registered as per the RFP requirements. Of the seven, the following six vendors submitted proposals: Vendor Location 5 Year Cost Pre -Sort Center of Stockton, Inc. Stockton, CA $204,248 Pinnacle Data Systems LLC* Phoenix, AZ $208,656 Infosend, Inc. Anaheim, CA $277,398 KP LLC San Leandro, CA $314,995 Data Marketing, Inc. San Jose, CA $545,894 ABS Direct Inc. Modesto, CA $684,042 *Rejected as non-responsive Proposals were evaluated by a team of City staff. Staff recommends award of the contract to Pre -Sort as the lowest cost, responsive, responsible vendor. One of the terms of the RFP requires that the primary processing facility for the services be located in California. This requirement is driven by the time -sensitive nature of mailing for utility bills, 10 -day notices and 48-hour notices. Pinnacle Data Systems LLC proposal indicates that their primary processing facility for the requested services would be in Phoenix, AZ, with alternate facilities in APPROVED: (_� ("‘b- mi r� ep en Schwaba er C Manager Suwanee, GA and Birmingham, AL. This is not compliant with the terms of the RFP and the proposal should be deemed as non-responsive. Proposed costs over the minimum five-year contract are reflected in the table above. Postage costs are additional and are not included in the numbers above. Postage costs are budgeted at $250,000 annually. Staff recommends award of a five-year print, insert and mail services contract to Pre -Sort Center of Stockton, Inc. of Stockton, CA and grant the City Manager authority to extend the contract up to an additional three years. FISCAL IMPACT: Annual costs for the print, insert and mail services are estimated to be approximately $41,000. FUNDING AVAILABLE: JA/ja Postage and paper stock costs are currently budgeted in the Non - Departmental (10095000) and Finance (10020203) organizational units. Costs of this contract will be budgeted each year in the same units. Jordan Ayers Deputy City Manager AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1 PARTIES AND PURPOSE Section 1.1 Parties THIS AGREEMENT is entered into on , 20 , by and between the CITY OF LODI, a municipal corporation (hereinafter "CITY"), and PRE-SORT CENTER OF STOCKTON, INC. (hereinafter "CONTRACTOR"). Section 1.2 Purpose CITY selected the CONTRACTOR to provide the services required in accordance with attached Scope of Services, Exhibit A, attached and incorporated by this reference. CITY wishes to enter into an agreement with CONTRACTOR for print, fold, insert and mail services (hereinafter "Project") as set forth in the Scope of Services attached here as Exhibit A. CONTRACTOR acknowledges that it is qualified to provide such services to CITY. ARTICLE 2 SCOPE OF SERVICES Section 2.1 Scope of Services CONTRACTOR, for the benefit and at the direction of CITY, shall perform the Scope of Services as set forth in Exhibit A. Section 2.2 Time For Commencement and Completion of Work CONTRACTOR shall commence work pursuant to this Agreement, upon receipt of a written notice to proceed from CITY or on the date set forth in Section 2.6, whichever occurs first, and shall perform all services diligently and complete work under this Agreement based on a mutually agreed upon timeline or as otherwise designated in the Scope of Services. CONTRACTOR shall submit to CITY such reports, diagrams, drawings and other work products as may be designated in the Scope of Services. CONTRACTOR shall not be responsible for delays caused by the failure of CITY staff to provide required data or review documents within the appropriate time frames. The review time by CITY and any other agencies involved in the project shall not be counted against CONTRACTOR's contract performance period. Also, any delays due to weather, vandalism, acts of God, etc., shall not be counted. CONTRACTOR shall 1 remain in contact with reviewing agencies and make all efforts to review and return all comments. Section 2.3 Meetings CONTRACTOR shall attend meetings as may be set forth in the Scope of Services. Section 2.4 Staffing CONTRACTOR acknowledges that CITY has relied on CONTRACTOR's capabilities and on the qualifications of CONTRACTOR's principals and staff as identified in its proposal to CITY. The Scope of Services shall be performed by CONTRACTOR, unless agreed to otherwise by CITY in writing. CITY shall be notified by CONTRACTOR of any change of Project Manager and CITY is granted the right of approval of all original, additional and replacement personnel at CITY's sole discretion and shall be notified by CONTRACTOR of any changes of CONTRACTOR's project staff prior to any change. CONTRACTOR represents it is prepared to and can perform all services within the Scope of Services (Exhibit A) and is prepared to and can perform all services specified therein. CONTRACTOR represents that it has, or will have at the time this Agreement is executed, all licenses, permits, qualifications, insurance and approvals of whatsoever nature are legally required for CONTRACTOR to practice its profession, and that CONTRACTOR shall, at its own cost and expense, keep in effect during the life of this Agreement all such licenses, permits, qualifications, insurance and approvals, and shall indemnify, defend and hold harmless CITY against any costs associated with such licenses, permits, qualifications, insurance and approvals which may be imposed against CITY under this Agreement. Section 2.5 Subcontracts Unless prior written approval of CITY is obtained, CONTRACTOR shall not enter into any subcontract with any other party for purposes of providing any work or services covered by this Agreement. Section 2.6 Term The term of this Agreement commences on September 26, 2016 and terminates upon the completion of the Scope of Services or on September 25, 2021, whichever occurs first. Section 2.7 Option to Extend Term of Agreement At its option, City may extend the terms of this Agreement for an additional three (3) one (1)-year extensions; provided, City gives Contractor no less than thirty (30) days 2 written notice of its intent prior to expiration of the existing term. In the event City exercises any option under this paragraph, all other terms and conditions of this Agreement continue and remain in full force and effect. The total duration of this Agreement, including the exercise of any option under this paragraph, shall not exceed eight (8) years. ARTICLE 3 COMPENSATION Section 3.1 Compensation CONTRACTOR's compensation for all work under this Agreement shall conform to the provisions of the Fee Proposal, attached hereto as Exhibit B and incorporated by this reference. CONTRACTOR shall not undertake any work beyond the scope of this Agreement unless such additional work is approved in advance and in writing by CITY. Section 3.2 Method of Payment CONTRACTOR shall submit invoices for completed work on a monthly basis, or as otherwise agreed, providing, without limitation, details as to amount of hours, individual performing said work, hourly rate, and indicating to what aspect of the Scope of Services said work is attributable. CONTRACTOR's compensation for all work under this Agreement shall not exceed the amount of the Fee Proposal. Section 3.3 Costs The Fee Proposal shall include all reimbursable costs required for the performance of the Scope of Services. Payment of additional reimbursable costs considered to be over and above those inherent in the original Scope of Services shall be approved in advanced and in writing, by CITY. Section 3.4 Auditing CITY reserves the right to periodically audit all charges made by CONTRACTOR to CITY for services under this Agreement. Upon request, CONTRACTOR agrees to furnish CITY, or a designated representative, with necessary information and assistance needed to conduct such an audit. CONTRACTOR agrees that CITY or its delegate will have the right to review, obtain and copy all records pertaining to performance of this Agreement. CONTRACTOR agrees to provide CITY or its delegate with any relevant information requested and shall permit CITY or its delegate access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and 3 inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this requirement. CONTRACTOR further agrees to maintain such records for a period of three (3) years after final payment under this Agreement. ARTICLE 4 MISCELLANEOUS PROVISIONS Section 4.1 Nondiscrimination In performing services under this Agreement, CONTRACTOR shall not discriminate in the employment of its employees or in the engagement of any sub CONTRACTOR on the basis of race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, age, or any other criteria prohibited by law. Section 4.2 ADA Compliance In performing services under this Agreement, CONTRACTOR shall comply with the Americans with Disabilities Act (ADA) of 1990, and all amendments thereto, as well as all applicable regulations and guidelines issued pursuant to the ADA. Section 4.3 Indemnification and Responsibility for Damage CONTRACTOR to the fullest extent permitted by law, shall indemnify and hold harmless CITY, its elected and appointed officials, directors, officers, employees and volunteers from and against any claims, damages, losses, and expenses (including reasonable attorney's fees and costs), arising out of performance of the services to be performed under this Agreement, provided that any such claim, damage, loss, or expense is caused by the negligent acts, errors or omissions of CONTRACTOR, any subcontractor employed directly by CONTRACTOR, anyone directly or indirectly employed by any of them, or anyone for whose acts they may be liable, except those injuries or damages arising out of the active negligence, sole negligence, or sole willful misconduct of the City of Lodi, its elected and appointed officials, directors, officers, employees and volunteers. CITY may, at its election, conduct the defense or participate in the defense of any claim related in any way to this indemnification. If CITY chooses at its own election to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification, CONTRACTOR shall pay all of the costs related thereto, including without limitation reasonable attorney fees and costs. The defense and indemnification obligations required by this Agreement are undertaken in addition to, and shall not in any way be limited by the insurance obligations set forth herein. 4 Section 4.4 No Personal Liability Neither the City Council, nor any other officer or authorized assistant or agent or City employee shall be personally responsible for any liability arising under this Agreement. Section 4.5 Responsibility of CITY CITY shall not be held responsible for the care or protection of any material or parts of the work described in the Scope of Services prior to final acceptance by CITY, except as expressly provided herein. Section 4.6 Insurance Requirements for CONTRACTOR CONTRACTOR shall take out and maintain during the life of this Agreement, insurance coverage as set forth in Exhibit C attached hereto and incorporated by this reference. Section 4.7 Successors and Assigns CITY and CONTRACTOR each bind themselves, their partners, successors, assigns, and legal representatives to this Agreement without the written consent of the others. CONTRACTOR shall not assign or transfer any interest in this Agreement without the prior written consent of CITY. Consent to any such transfer shall be at the sole discretion of CITY. Section 4.8 Notices Any notice required to be given by the terms of this Agreement shall be in writing signed by an authorized representative of the sender and shall be deemed to have been given when the same is personally served or upon receipt by express or overnight delivery, postage prepaid, or three (3) days from the time of mailing if sent by first class or certified mail, postage prepaid, addressed to the respective parties as follows: To CITY: City of Lodi 221 West Pine Street P.O. Box 3006 Lodi, CA 95241-1910 Attn: Deputy City Manager To CONTRACTOR: Pre -Sort Center of Stockton, Inc. 3806 Coronado Avenue Stockton, CA 95204-2314 Attn: Michael Gutterres Section 4.9 Cooperation of CITY CITY shall cooperate fully and in a timely manner in providing relevant information it has at its disposal relevant to the Scope of Services. 5 Section 4.10 CONTRACTOR is Not an Employee of CITY CONTRACTOR agrees that in undertaking the duties to be performed under this Agreement, it shall act as an independent contractor for and on behalf of CITY and not an employee of CITY. CITY shall not direct the work and means for accomplishment of the services and work to be performed hereunder. CITY, however, retains the right to require that work performed by CONTRACTOR meet specific standards without regard to the manner and means of accomplishment thereof. Section 4.11 Termination CITY may terminate this Agreement, with or without cause, by giving CONTRACTOR at least ten (10) days written notice. Where phases are anticipated within the Scope of Services, at which an intermediate decision is required concerning whether to proceed further, CITY may terminate at the conclusion of any such phase. Upon termination, CONTRACTOR shall be entitled to payment as set forth in the attached Exhibit B to the extent that the work has been performed. Upon termination, CONTRACTOR shall immediately suspend all work on the Project and deliver any documents or work in progress to CITY. However, CITY shall assume no liability for costs, expenses or lost profits resulting from services not completed or for contracts entered into by CONTRACTOR with third parties in reliance upon this Agreement. Section 4.12 Confidentiality CONTRACTOR agrees to maintain confidentiality of all work and work products produced under this Agreement, except to the extent otherwise required by law or permitted in writing by CITY. CITY agrees to maintain confidentiality of any documents owned by CONTRACTOR and clearly marked by CONTRACTOR as "Confidential" or "Proprietary", except to the extent otherwise required by law or permitted in writing by CONTRACTOR. CONTRACTOR acknowledges that CITY is subject to the California Public Records Act. Section 4.13 Applicable Law. Jurisdiction. Severability, and Attorney's Fees This Agreement shall be governed by the laws of the State of California. Jurisdiction of litigation arising from this Agreement shall be venued with the San Joaquin County Superior Court. If any part of this Agreement is found to conflict with applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict with said laws, but the remainder of this Agreement shall be in force and effect. In the event any dispute between the parties arises under or regarding this Agreement, the prevailing party in any litigation of the dispute shall be entitled to reasonable attorney's 6 fees from the party who does not prevail as determined by the San Joaquin County Superior Court. Section 4.14 City Business License Requirement CONTRACTOR acknowledges that Lodi Municipal Code Section 3.01.020 requires CONTRACTOR to have a city business license and CONTRACTOR agrees to secure such license and pay the appropriate fees prior to performing any work hereunder. Section 4.15 Captions. The captions of the sections and subsections of this Agreement are for convenience only and shall not be deemed to be relevant in resolving any question or interpretation or intent hereunder. Section 4.16 Integration and Modification This Agreement represents the entire understanding of CITY and CONTRACTOR as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing, signed by both parties. Section 4.17 Contract Terms Prevail All exhibits and this Agreement are intended to be construed as a single document. Should any inconsistency occur between the specific terms of this Agreement and the attached exhibits, the terms of this Agreement shall prevail. Section 4.18 Severability The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. Section 4.19 Ownership of Documents All documents, photographs, reports, analyses, audits, computer media, or other material documents or data, and working papers, whether or not in final form, which have been obtained or prepared under this Agreement, shall be deemed the property of CITY. Upon CITY's request, CONTRACTOR shall allow CITY to inspect all such documents during CONTRACTOR's regular business hours. Upon termination or completion of services under this Agreement, all information collected, work product and documents shall be delivered by CONTRACTOR to CITY within ten (10) calendar days. CITY agrees to indemnify, defend and hold CONTRACTOR harmless from any liability resulting from CITY's use of such documents for any purpose other than the purpose for which they were intended. 7 Section 4.20 Authority The undersigned hereby represent and warrant that they are authorized by the parties to execute this Agreement. Section 4.21 Federal Transit Funding Conditions ❑ If the box at left is checked, the Federal Transit Funding conditions attached as Exhibit D apply to this Agreement. In the event of a conflict between the terms of this Agreement or any of its other exhibits, and the Federal Transit Funding Conditions, the Federal Transit Funding Conditions will control. IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this Agreement as of the date first above written. ATTEST: CITY OF LODI, a municipal corporation JENNIFER M. FERRAIOLO STEPHEN SCHWABAUER City Clerk City Manager APPROVED AS TO FORM: PRE-SORT CENTER OF STOCKTON, INC. JANICE D. MAGDICH, City Attorney By: By: JOHN P. FUKASAWA Deputy City Attorney Name: MICHAEL GUTTERRES Title: Executive Vice President Attachments: Exhibit A — Scope of Services Exhibit B — Fee Proposal Exhibit C — Insurance Requirements Exhibit D — Federal Transit Funding Conditions (if applicable) Funding Source: 10095000 and 10020203 (Business Unit & Account No.) Doc I D: CA:Rev.01.2015 8 EXHIBIT A SCOPE OF SERVICES The City is seeking a provider with the ability to print, fold, insert and mail all utility bills and notices for the City. The selected vendor will also be required to occasionally provide design and print services for billing inserts. While the daily volume will fluctuate based upon the number of accounts in each billing cycle and number of accounts in the collection process on any given day, the average volumes are expected to be about 2,500 pages per day for regular and final bills, 160 10 -day notices per day and 100 48-hour notices per day. Bills are to be printed in black and white (no color) on 8 1/2 by 11 inch white paper with a bottom 1/3 page perforation remittance advice tear stub. Notices are to be printed on yellow paper (10 -day notice) or pink paper (48-hour notice). Notices are printed on paper with a bottom 1/3 page perforation remittance advice tear stub. Bills are to be mailed in a #10 single window (left side) envelope along with a #9 single window (left side) return envelope. Notices are to be mailed in a #10 single window (left side) envelope or #10 double window (left side) envelope along with a #9 window (left side) return envelope. Vendor will be required to obtain and warehouse all paper products. City will provide 4 files each business day no later than NOON: a regular bill file, a final bill file, a 10 -day notice file and a 48-hour notice file. Vendor will need to provide a secure method/site for City to upload these files. Each file will consist of PDF images of all bills or notices that are to be printed. Vendor will need to parse the images to print individual bills/notices. The City logo appears on the first page of each bill/notice and could be used as the key to determine when each new bill/notice starts in the file. Multiple page bills will only have the City logo on the first page. File size is not expected to exceed 200MB. Most utility bills will be 2 to 3 pages and are expected to be mailed in a #10 window envelope. Some bills may be up to 25 pages and are expected to be mailed in an appropriately sized envelope and metered first-class separately. These bills only require a single return envelope. Notices are a single page and are to be mailed in a #10 window envelope. Vendor will be required to print, fold, insert and mail all bills/notices on day of receipt. Delivery of mail to the post office is the responsibility of the vendor. Vendor must provide daily confirmation of delivery and City should be able to verify proof of delivery to USPS on an as -needed basis. Postage costs will be passed directly to the City without any "mark-up" based upon current postal rates. Vendor is expected to sort and package mail such that the City receives the lowest possible postage rate. Vendor will be required to meet USPS postal coding and sorting requirements, including return address, MOVEcomply, and mail forwarding/address verification. Vendor must be able to provide invoices to the City that separately detail bill printing costs, notice printing costs, paper supply costs, postage costs, and insert design and printing services. Vendor's primary site for operations is Stockton, CA. Vendor must be able to perform services from an alternate site in the event of a disaster at the primary site to prevent any disruption of services to the City. Vendor will notify City immediately in the event that an alternate site must be used. Vendor's alternate site is in Fresno, CA. Vendor is responsible for the security of the City's customer data and agrees not to compromise, sell or share this data. Customer information will be treated as confidential and will not be released to any outside party without City approval. City retains all rights to the data. EXHIBIT B — FEE PROPOSAL Complete the table below. Vendor Name: Pre -Sort Center of Stockton, Inc. Initial and Ongoing Professional Services Fees One -Time Implementation Fee Includes all phases of the project prior to the production Phase: initial programming, testing, and implementation $500.00 One -Time Fee Professional Services Charges For design of inserts $125.00 Per hour Cost of Materials Statement Paper Stock Cost 8.5x1 1", 20 pound paper stock with a micro -perforation. $0.01483 $0.03885 — mill colored paper $0.02881 — tinted colored paper Per Sheet Per Sheet Per Sheet 10 -Day Notice Paper Stock Cost 8.5x 1 1, 20 pound yellow paper stock with micro -perforation. Tinted colored paper is white paper that is tinted instead of dyed at the paper mill. Samples are attached. 48-hour Notice Paper Stock Cost 8.5x11, 20 pound pink paper stock with micro -perforation. Tinted colored paper is white paper that is tinted instead of dyed at the paper mill. Samples are attached. $0.03885 — mill colored paper $0.02881 — tinted colored paper Per Sheet Per Sheet Outgoing Envelope Cost Single or double window (lett side) #10 envelope. $0.01925 Per Envelope Return Envelope Cost Single Window (left side) $0.01732 Per Envelope Flat Envelope Cost Applies only to multi -page bills that do not fit in the standard single window #10 euvclohe. $0.35 Per Envelope Service Fees 1 Page BiII/Notice Service Fee Includes file transmission, data processing, single sided bill printing, mail preparation (folding, inserting a 1 -page bill/notice and the return envelope into an outgoing envelope), and delivery to the USPS. Additional Bill Pages Service Fee Pre -page cost to print and insert additional pages if the bill contains more than 1 page. $0.037 $0.012 Per 1 Page Bill Per Additional Page Insert Fcc $0.005 Per Additional Charge for inserting client-provided insert, 1/3 sheet single Insert if or double sided machineable For example: informational flyer $0.08 Per Additional Insert if non- machineable Move Update Service Fees $0.005 Per Reported MOVEcomply Change EXHIBIT C Insurance Requirements for Contractor The Contractor shall take out and maintain during the life of this Agreement, insurance coverage as listed below. These insurance policies shall protect Contractor and any subcontractor performing work covered by this Agreement from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from Contractor's operations under this Agreement, whether such operations be by Contractor, or by any subcontractor, or by anyone directly or indirectly employed by either of them, and the amount of such insurance shall be as follows: 1 COMPREHENSIVE GENERAL LIABILITY $6,000,000 Each Occurrence $7,000,000 General Aggregate 2. COMPREHENSIVE AUTOMOBILE LIABILITY $1,000,000 Combined Single Limit Such insurance shall cover liability arising out of any vehicle (including, owned, hired and non -hired vehicles) operated in performing any and all services pursuant to this Agreement. Coverage shall be written on ISO form CA 00 01 12 90, or a later version, that provides liability coverage at least as broad as this form. 3. ERRORS AND OMISSIONS / PRINTERS / TECHNOLOGY $1,000,000 Per Claim Covering all acts, errors, omissions, negligence, network security and privacy risks, including but not limited to unauthorized access, failure of security, breach of privacy perils, wrongful disclosure, collection, or other negligence in the handling of confidential information, privacy perils, and including coverage for related regulatory defense and penalties; data breach expenses, and payable whether incurred by City of Lodi or Contractor, including but not limited to consumer notification, whether or not required by law, computer forensic investigations, public relations and crisis management firm fees, credit file or identity monitoring or remediation services in the performance of services for, or on behalf of, City of Lodi. Such insurance shall be maintained in force at all times during the term of the agreement and provide an Extended Reporting Period (ERP) for a period of one year thereafter, for services completed during the term of the agreement. All limits are to be designated strictly for the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. All deductibles or self-insured retentions (SIR) must be disclosed to City's Risk Manager for approval and shall not reduce the limits of liability set forth hereinabove. Insurance policies containing any deductible or SIR provision shall provide, or be endorsed to provide, that the deductible or SIR may be satisfied by either the Named Insured(s) or the City of Lodi. It is required that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth above, shall be available to City as an additional insured. Furthermore, the requirements for coverage and limits shall be (i) the minimum coverage and limits specified in these insurance requirements; or (ii) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the Contractor; whichever is greater. Contractor agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). A copy of the certificate(s) of insurance with the following endorsements shall be furnished to the City: (a) Additional Named Insured Endorsement Pursuant to a separate endorsement (ISO form CG 2010 (11/85) or a later version, that provides liability coverage at least as broad as this form) such insurance as is afforded by this policy shall also apply to the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers as additional named insureds. An additional named insured endorsement is also required for Auto Liability. (b) Primary and Non -Contributory Insurance Endorsement Additional insurance coverage under the Contractor's policy shall be "primary and non-contributory" and will not seek contribution from City's insurance or self-insurance and shall be at least as broad as ISO form CG 20 01 04 13. NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) above: 221 West Pine Street, Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of the project that it is insuring. Page 1 1 of 2 pages Risk: rev.03.2016 Insurance Requirements for Contractor (continued) (c) Waiver of Subrogation Include a waiver of subrogation against the City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers. A waiver is required for General Liability and Auto Liability. (d) Limits of Coverage The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance of Contractor shall contain, or be endorsed to contain, a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City's own insurance or self-insurance shall be called upon to protect the City as a named insured. (e) Severability of Interest Clause The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability. (f) (g) Notice of Cancellation or Change in Coverage Endorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. Continuity of Coverage All policies shall be in effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Contractor shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Contractor shall provide proof of continuing insurance on at least an annual basis during the Term. If Contractor's insurance lapses or is discontinued for any reason, Contractor shall immediately notify the City and immediately obtain replacement insurance. (h) Failure to Comply If Contractor fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the insurance. Contractor shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum allowable legal rate then in effect in California. The City shall notify Contractor of such payment of premiums within thirty (30) days of payment stating the amount paid, the name(s) of the insurer(s), and rate of interest. Contractor shall pay such reimbursement and interest on the first (18t) day of the month following the City's notice. Notwithstanding any other provision of this Agreement, if Contractor fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance, the City may terminate this Agreement upon such breach. Upon such termination, Contractor shall immediately cease use of the Site or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities. (i) Qualified tnsurer(s) All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of California which are rated at least "A-, VI" by the AM Best Ratings Guide, and which are acceptable to the City. Non -admitted surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines insurers (LESLI list) and otherwise meet City requirements. NOTE: The City reserves the right to obtain a full certified copy of any insurance policy or endorsements required. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective date. Page 2 1 of 2 pages Risk: rev.03.2016 RESOLUTION NO. 2016-163 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH PRE-SORT CENTER OF STOCKTON, INC., FOR PRINT, INSERT, AND MAIL SERVICES IN THE AGGREGATE AMOUNT OF $204,248 WHEREAS, the City issued Request for Proposals (RFP) for Print, Insert, and Mail Services on July 25, 2016; and WHEREAS, the following six vendors submitted proposals in response to the RFP: Vendor Pre -Sort Center of Stockton, Inc. Pinnacle Data Systems, LLC InfoSend, Inc. KP, LLC Data Marketing, Inc. ABS Direct, Inc. Location Stockton, CA Phoenix, AZ Anaheim, CA San Leandro, CA San Jose, CA Modesto, CA 5 -Year Cost $204,248 $208,656* $277,398 $314,995 $545,894 $684,042 *Non-responsive bid, per RFP, primary processing facility required to be located in California WHEREAS, proposals were evaluated by a team of City staff and staff recommends award of the contract to Pre -Sort Center of Stockton, Inc.; and WHEREAS, the RFP proposed a minimum five-year term of service, with a City option to extend the term annually for an additional three years, for a maximum term of eight years. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby award a Professional Service Contract for Print, Insert, and Mail Services to Pre -Sort Center of Stockton, Inc., in the aggregate amount of $204,248 for a five-year period; and BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the contract on behalf of the City of Lodi; and BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to execute up to three annual extensions to the contract, if in the best interests of the City to do so. Dated: September 7, 2016 I hereby certify that Resolution No. 2016-163 was passed and adopted by the City Council of the City of Lodi in a regular meeting held September 7, 2016, by the following votes: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None TINIFER FERRAIOLO ty Clerk 2016-163