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HomeMy WebLinkAboutAgenda Report - November 3, 2021 C-13AGENDA ITEM Cwe 13 J",.CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt a Resolution Authorizing the City Manager to Extend Professional Service Agreement #6668 with Pre -Sort Center of Stockton, Inc., For Print, Fold, Insert, Postage and Mail Services and Increase Pricing for Paper Stock ($225,000) MEETING DATE: November 3, 2021 PREPARED BY: Revenue Manager RECOMMENDED ACTION: Adopt a Resolution Authorizing the City Manager to Extend a Professional Service Agreement #6668 with Pre -Sort Center of Stockton, Inc., for print, fold, insert, postage, and mail services and increase pricing for paper stock ($225,000) BACKGROUND INFORMATION: On September 13, 2016, after a Request for Proposal process, the City Council approved Resolution 2016-163 authorizing an agreement with Pre -Sort Center of Stockton. The contract consisted of print, fold, insert, postage, and mail services. For a term of 5 years with the option to extend the agreement for three additional one-year periods. That contract expired on September 30, 2021. The City processes approximately 500,000 statements annually for utility bills, delinquent notices, accounts receivable invoices, and miscellaneous informational flyers. Due to the volume of statements and equipment required, the City does not have the capacity to provide this service internally. For the term of the requested one year extension being requested, the price of paper has been increased by $.01 per sheet bringing the total cost for paper stock to $0.02483 per sheet for the one-year contract. As with many other items the City purchases, global economic factors related to COVID-19, labor markets and supply chains have increased costs to the vendor requiring this increase in cost to the City. With an estimated 500,000 statements processed plus miscellaneous items throughout the extension term, it is estimated the total cost for the year will be $225,000. Pre -Sort has provided excellent service to the City throughout the term of the contract. They have been responsive to staff and timely with printing and mailing requests. Maintaining the relationship with Pre - Sort will avoid the need to rework internal billing processes to align reports with the needs of another third party printing provider. t%ii APPROVED: s;E• _ frr(Oct 20,202113:30PDT) Stephen Schwabauer, City Manager FISCAL IMPACT: The estimated annual cost of the new agreement, based on current printing, paper, envelopes and mail handling is approximately $225,000 per year. The estimate is based on current volumes of processing. Actual costs will be based on actual items printed and mailed. FUNDING AVAILABLE: Costs for this contract are included in the adopted budget for Fiscal Year 2021/22 within the revenue division and non -departmental budget for City wide services. Andrew Keys Deputy City Manager/Internal Services Director T4Y, S"egl_ Tarra Sumner (Oct 20, 202113:22 PDT) Tarra Sumner Revenue Manager AMENDMENT NO. 2 PRE-SORT CENTER OF STOCKTON, INC. Professional Services Agreement THIS AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT, is made and entered this day of , 2021, by and between the CITY OF LODI, a municipal corporation, hereinafter called "CITY", and PRE-SORT CENTER OF STOCKTON, INC., a California Corporation, hereinafter called "CONTRACTOR". f•�rr►��.Y.y�7:il 1. WHEREAS, CONTRACTOR and CITY, entered into a Professional Services Agreement on September 13, 2016 and Amendment No. 1 on November 17, 2016 (collectively the "Agreement"), as set forth in Exhibit 1; attached hereto and made a part hereof; and 2. WHEREAS, CITY at its option, CITY has advised CONTRACTOR of its intent to extend the terms of the Agreement an additional one (1) year and increase the unit prices and total fees by $225,000, as set forth in Exhibit 2, attached hereto and made part of; and 3. WHEREAS, CONTRACTOR agrees to the amendment set forth above. 4. COUNTERPARTS AND ELECTRONIC SIGNATURES: This Agreement and other documents to be delivered pursuant to this Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy and all of which, when taken together, will be deemed to constitute one and the same agreement or document, and will be effective when counterparts have been signed by each of the parties and delivered to the other parties. Each party agrees that the electronic signatures, whether digital or encrypted, of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Delivery of a copy of this Agreement or any other document contemplated hereby, bearing an original manual or electronic signature by facsimile transmission (including a facsimile delivered via the Internet), by electronic mail in "portable document format" (".pdf") or similar format intended to preserve the original graphic and pictorial appearance of a document, or through the use of electronic signature software will have the same effect as physical delivery of the paper document bearing an original signature. NOW, THEREFORE, the parties agree to amend the Agreement as set forth above; all other terms and conditions or the Agreement remain unchanged. IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this Amendment No. 2 on the date and year first above written. CITY OF LODI, a municipal corporation PRE-SORT CENTER OF STOCKTON, INC. STEVE SCHWABAUER City Manager Attest: JENNIFER CUSMIR City Clerk Approved as to Form: JANICE D. MAGDICH City Attorney MICHAEL GUTTERRES Executive Vice President EXHIBIT 1 AMENDMENT NO. 1 PRE-SORT CENTER OF STOCKTON, INC. PROFESSIONAL SERVICES AGREEMENT THIS AMENDMENT NO. 1 to PROFESSIONAL SERVICES AGREEMENT, is made and entered this _I-1441 day of November, 2016, by and between the CITY OF LODI, a municipal corporation (hereinafter "CITY") and PRE-SORT CENTER OF STOCKTON, INC. (hereinafter "CONTRACTOR"). WITNESSETH: 1. WHEREAS, CONTRACTOR and CITY entered into a Professional Services Agreement (Agreement) on September 13, 2016; and 2. WHEREAS, CITY requested to amend said Agreement to include daily mail pick-up and mailing services; and 3. WHEREAS, the Scope of Services (Exhibit A) and Fee Proposal (Exhibit B) of Agreement are amended to include the additional services and fees described in this amendment; and 4. WHEREAS, CONTRACTOR agrees to said amendment. NOW, THEREFORE, the parties agree to amend the Agreement as described in the attached Scope of Services and Fee Proposal. All other terms and conditions of the Agreement remain unchanged. IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this Amendment No. 1 on November 1, 2016, CITY OF LODI, a municipal corporation �C�ir► �ti:� z Attest: Ata J IFER Yj. FERRAIOLO City Clerk Approved as to Form: GNICE D. MAGDiCH City Attorney PRE-SORT CENTER OF STOCKTON, INC. MICHAEL GUTTERRES Executive Vice President EXHIBIT A ADDITIONAL SERVICES CONTRACTOR will process CITY'S First Class United States Mail and special mailing projects during the term of this agreement. City will: • Have mail ready at a location previously agreed upon with Pre -Sort by the time each day also agreed upon; • Have with the mail a driver's "pick -up -slip" which is properly completed including item and tray count; • Properly seal each item; • Place each item of mail in an approved tray in an upright position with all letter facing the same direction; • Correctly address and zip -code each item; • Use only pre -approved fonts and advise Pre -Sort prior to making any font changes and obtain Pre -Sort's consent to such changes, such consent not unreasonably withheld; • Provide Pre -Sort with prior notice of any special mailings. Pre -Sort will! • Pick up city mail at the agreed upon location and during normal business hours; • Affix the correct pre-sorted First Class postage to each item; • Postmark each piece of mail with the date of pick-up, or next business day if not possible to postmark on the date of pick-up; • Deliver mail to the U. S. Postal facility on the same day as pick-up, or next business day if not possible to deliver on the same day as pick-up. EXHIBIT B ADDITIONAL CHARGES City will pay any charges assessed by the U.S. Postal Service arising from improper postage, dating, zip code or other information provided by City. Such charges will be invoiced and payable along with CONTRACTOR's regular invoice. POSTAGE RATE — Using New Postage Rates Effective April 10, 2016 Presorted First Class Letter Mail Pre -Sort will meter one and two ounce mail at the Presorted First Class rate, which as of April 10, 2016 is: $0.419 — for letters up to 1 oz. $0.419 — for letters up to 2 oz. • Should the U. S. Postal Service change the postage rates, this rate will change. One or two -ounce mail that does not barcode on our machine, Pre -Sort will add the additional postage to bring that piece up to the full rate. Customer will be charged for this postage with no service fee. All mail to be presorted must be within dimensions given by the USPS of up to 11-1/2" in length and 6- 1/8" in width and not weighing more than two (2) ounces. Mail not meeting these specifications will be metered at the single piece First -Class rate, resorted First Class Flats All flat mail qualifying for the automation rate will receive a five (5) cent discount with no fee to affix postage, All flat mail qualifying for the automation rate may be mailed the next business day. All flat mail not qualifying for the automation discount will be metered at a cost of $0.25 each. Service Fees Fee to seal, affix postage, and/or barcode sort: • $0,059 for letter size mail (6-1/8 x 11-1/2) • $0.25 for flat size mail not qualifying for a discount Courier fee: $1.00 per day to pick up Customer's mail at location in Lodi. AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1 PARTIES AND PURPOSE Section 1.1 Parties THIS AGREEMENT is entered into on S!O.13, 20R. 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 N 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 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 4.7 Section 4.8 Notices Section 4.9 Section 4.10 CONTRACTOR is Not an Employee of CITY Section 4.11 Termination Section 4.12 Section 4.13 Applicable Law, Jurisdiction, Severability, and Attorney's Fees 4.14 4.15 4.16 Section 4.17 Contract Terms Prevail Section 4.18 Severability Section 4.19 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. CITY OF LODI, a municipal corporation ATTEST: u_ 1�FIT ki NIFER FERRAIOLO STEPHEN SCHWABAUER ity Clerk City Manager APPROVED AS TO FORM: PRE-SORT CENTER OF STOCKTON, INC. JANICE D. MAGDICH, City Attorney B �/ �C B JOHN P. FUKASAWA � Name: MICHAEL GUTTERRES Deputy City Attorney 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 ID: CA:Rev.01.2015 8 EXHIBIT A SCOPE OF SERVICES PDF 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: COMPREHENSIVE GENERAL LIABILITY $6,000,000 Each Occurrence $7,000,000 General Aggregate 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. ERRORS AND OMISSIONS I 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 0413. 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 I 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) 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. (g) 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 names) of the insurer(s), and rate of interest. Contractor shall pay such reimbursement and interest on the first (1°) 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 Insurer(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 I Risk: rev.03.2016 EXHIBIT 2 From: Michael Gutteres <michaelg@pre-sort.com> Sent: Friday, September 17, 20218:36 AM To: Tarra Sumner <tsumner@lodi.gov>; angieg@pre-sort.com; Edith Chan <echan@pre-sort.com> Subject: Re: FW: Updated Contract Pricing Hello Tarra, Going forward the price to print and mail the City's statements will increase $0.01 since it's only for 1 year. Thanks! Michael RESOLUTION NO. 2021-293 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICE AGREEMENT WITH PRE-SORT CENTER OF STOCKTON, INC., FOR PRINT, FOLD, INSERT, POSTAGE, AND MAIL SERVICES ------------------------------------------------------------------------ ------------------------------------------------------------------------ WHEREAS, the City processes approximately 500,000 statements annually for utility bills, delinquent notices, accounts receivable invoices, and miscellaneous informational flyers; and WHEREAS, due to the current volume of statements and equipment required, the City does not have the capacity to provide these services internally; and WHEREAS, the price of paper has been increased by $0.01 per sheet, bringing the total cost for paper stock to $0.02483 per sheet for one year; and WHEREAS, with an estimated 500,000 statements processed plus miscellaneous items throughout the extension term, it is estimated the total cost for the year will be $225,000; and WHEREAS, Pre -Sort has provided excellent service to the City throughout the term of the contract. They have been responsive to staff and timely with printing and mailing requests; and WHEREAS, staff recommends extending the term of the agreement with Pre -Sort Center of Stockton, Inc., as the service meets the City's requirements and functionality for bills, delinquent notices, account receivable invoices, and miscellaneous informational flyers. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement with Pre -Sort Center of Stockton, Inc., for print, fold, insert, postage, and mail services, thereby extending the term of the agreement for an additional year and increasing the pricing for paper stock, with a total estimated annual cost of $225,000; and BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (Res. No. 2019-223), the City Attorney is hereby authorized to make minor revisions to the above -referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary. Dated: November 3, 2021 ------------------------------------------------------------------------ ------------------------------------------------------------------------ I hereby certify that Resolution No. 2021-293 was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 3, 2021 by the following vote: AYES: COUNCIL MEMBERS — Chandler, Hothi, Khan, Kuehne, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None JENNIFE CUSMIR City Clerk 2021-293