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HomeMy WebLinkAbout12-16-2014 C7 Utility and Business License Bill and Mail ServiceCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Wayne Padilla, Finance and Information Technology Director SUBJECT: APPROVE AGREEMENT FOR UTILITY AND BUSINESS LICENSE BILL PRINTING AND MAILING SERVICES RECOMMENDATION 1. Approve the agreement with Cash Cycle Solutions (CCS) for a 5 year term to provide regular printing and mailing of all utility bill and business license billing and certificate renewal documents 2. Approve waiver of insurance retentions and deductibles DISCUSSION On September 2, 2014 the City Council authorized the release of a Request for Proposal (RFP) to identify qualified firms for the printing and mailing of utility bills and the periodic inserts for the utility bills, along with the printing and mailing of business license bills, reminder notices and license certificates. Staff in the Finance Department have generated these documents and prepared them for mailing by an outside vendor each week. A recent workload assessment determined that an employee could redirect a minimum of 3 hours per week to other tasks if the entire utility billing process could be outsourced. This additional staff time will relieve the supervisor from answering phones and allow them to handle other duties that support the utility billing and business license functions. Cost savings were estimated to be at least $1,200 per month if the utility bills were printed and mailed by a third party. Approximately $1,300 would be realized in annual savings from the outsourcing of business license bills and certificates since these are only mailed once per year. In response to the RFP, the City received proposals from 11 firms. The pricing proposals indicated a range of cost for utility bill and insert mailing from $.09 to $.2493 per statement. Business license bill and certificate mailing costs ranged from $.095 to $.2198. After evaluating each of the proposals received, staff is recommending that Cash Cycle Solutions should be awarded the contract to provide these services to the city based on their fee proposal, the full scope of services offered and the responses received from their references. Based on their fee proposal, the Utility program should realize savings of at least $14,000 per year by outsourcing the mailing of utility bills. The General Fund would realize annual savings of approximately $1,300 by using this service to mail annual business license renewal notices and business license certificates. If approved, it is anticipated that the new service should be in place by January 2015. Staff checked the references provided by CCS, which included the City of Buena Park and two water districts, all of whom have been using CCS for at least 10 years. Each contact indicated that CCS was performing services comparable to those requested by the City and that CCS had 12/16/14 C7 C7-1 APPROVE AGREEMENT FOR UTILITY AND BUSINESS LICENSE BILL PRINTING AND MAILING SERVICES Page 2 been performing these in a timely and efficient manner with good responsiveness to customer questions and concerns. With the recent approval of the agreement for contract meter reading, the use of the outside billing and mailing service will complement the planned change to a single billing cycle. Staff confirmed with each vendor who submitted a proposal that any future changes to the billing frequency or number of cycles could be accommodated with no significant delays or re-work. Insurance Deductibles and Retention The City’s insurance requirements state that all insurance deductibles and self-insured retention amounts must be declared by the consultant. CCS noted that there are several deductibles and self-insured retentions that apply to their insurance coverage as noted below. • Excess Liability $10,000 • Professional Liability (E&O) $100,000 Staff is recommending that the deductibles and self-insured retentions should be waived based on the Finance Director’s review of CCS’s most recent audited financial statements which demonstrated a strong financial position and ability to pay. In order to provide the City with the opportunity to continually survey CCS’s financial standing, a requirement has been added to the contract with CCS that allows the City to review their financial standing on a periodic basis to confirm that they are able to financially support the deductibles and self-insured retention amounts. This request is consistent with actions taken in other, similar situations where the consultant/contractor had a strong financial standing making them capable of paying any claims subject to the deductible or self-insured retention from available current resources. The vendor has provided its plan for securing data to ensure that it is protected from outside entities who may wish to use it for unintended purposes. The contract also states that no customer data may be sold. At the outset of the working relationship, the vendor will agree to a set turnaround time for producing the bills and having them ready for mailing once they have received the file from the City. Staff will monitor this to ensure that the schedule is adhered to. FISCAL IMPACT The proposed fee for the outsourcing of the utility and business license bills will generate savings that was not anticipated at the time the 2014-15 Supplemental Budget was prepared. These savings are estimated to be approximately $14,000 per year, while the outsourcing of the annual business license and business license certificate mailing process will generate annual savings of approximately $1,300. CONCURRENCE The Utilities Department supports the award of this agreement. ALTERNATIVE Do not approve the use of Cash Cycle Solutions and recommend another consultant. This option is an allowable option due to the fact that any of the proposals except the one from the current service provider will generate cost savings for the Utility program. C7-2 APPROVE AGREEMENT FOR UTILITY AND BUSINESS LICENSE BILL PRINTING AND MAILING SERVICES Page 3 ATTACHMENT 1. Printing and Mailing Services Contract 2. RFP for Utility and Business License mailing services-Spec # 91339 3. Cash Cycle Solutions Proposal COUNCIL READING FILE All Proposals are in the Council Reading File T:\Council Agenda Reports\2014\2014-11-18\Utility Bill & Business License Printing and Mailing Services Agreement\Approval of mailing services CAR.docx C7-3 THIS AGREEMENT is made and entered into in the City of San Luis Obispo on _________________________, 2014, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and Cash Cycle Solutions, Inc., hereinafter referred to as Consultant. W I T N E S S E T H: WHEREAS, on September 3, 2014, City requested proposals for Utility Bill and Business License Correspondence Printing and Mailing Services per Specification No. 91339. WHEREAS, pursuant to said request, Consultant submitted a proposal, which was accepted by City for said services. NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be for a period of 5 years, from the date this Agreement is made and entered, as first written above. 2. INCORPORATION BY REFERENCE. City Request for Proposal Document for Specification No. 91339 and Consultant’s proposal dated October 3, 2014, are hereby incorporated in and made a part of this Agreement as shown in Exhibits B and C. 3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Consultant shall receive therefore compensation as set forth in Exhibit A of this Agreement. 4. CONSULTANT'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Consultant agrees with City to do everything required by this Agreement. It is understood that Consultant agrees to fix the costs shown for a period of 12 months. After that, the cost of paper goods used in the mailing process may be adjusted based on actual cost increases incurred and documented by Consultant. Further, postage costs set by the United States Postal Services and which are beyond the control of Consultant may be adjusted as necessary to maintain legal compliance with the U.S. Postal Laws. 5. CUSTOMER INFORMATION. At no time shall Consultant allow customer information of any type to be used, transferred, sold or otherwise provided to any entity, person or source when the use of such information is not directly for the purpose of generating the statements issued by City. Consultant shall maintain all existing safeguards against data loss and electronic systems breach by outside parties and shall upgrade all systems as necessary to maintain safeguards that represent reasonable and customary protections against such data loss or systems C7-4 breach as necessary. In the event that a loss of customer data results or is suspected, Consultant shall notify City immediately. 6. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Manager. 7. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 8. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Consultant [ ] [ ] [ ] [ ] 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Consultant do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation By: City Clerk City Administrative Officer APPROVED AS TO FORM: Consultant By: City Attorney C7-5 Exhibit A Billing Statements Cost* Statement includes 8.5 x 11” 24# plain white with perforation 0.0696 #10 window envelope (single window with black print- no tint) 0.0141 #9 return envelope (non window with black print – no tint) 0.0113 Inserts- Pastel colored paper 24#, 1/3 sheet, printed black/black 0.0225 folding/stuffing/mailing (when inserts are included) per insert 0.005 cost per bill 0.1225 Shutoff Notices Notice includes 8.5 x 11” 20# pastel pink with perforation 0.089 #10 envelope (single window with black print- no tint) 0.0141 folding/stuffing/mailing 0 cost per notice 0.1031 Business License Renewals Renewal includes 8.5 x 11” 20# pastel green no perforation 0.073 #10 envelope(single window with black print- no tint) 0.0141 #9 return envelope (non window with black print – no tint) 0.0113 folding/stuffing/mailing 0 cost per renewal 0.0984 Business License Certificates Certificate includes 8.5 x 11” 24# plain white .0341 #10 envelope(single window with black print- no tint) 0.0141 folding/stuffing/mailing cost per certificate .0482 Door Hangers 0.261 Additional Services (if applicable, per item price) Selective insertion of inserts (per insert) 0.005 Processing - Additional Impressions 0.030 Onserts (incorporating insert into statement) 0.040 PDF images FTP'd back to Client 0.005 Data Suppression 0.020 Minimum Run Charges (file size less than 200) 50.000 Programming Expenses Per Hour 100.00 NCOA per record 0.003 C7-6 Special Handling (if applicable) (per item price) Manual Flat Mailing in 9.5" x 13" envelopes 0.500 Manual Insertion in #10 envelopes (in addition to) 0.100 Statement Consolidation (Householding) 0.060 Handling fees for pulls & unqualified pieces 0.050 Manual pulls after job processed & printed 2.000 Job Cancellation - before data is processed No Charge Job Cancellation - after data processed, before production 25.00 Job Cancellation - after production has begun Normal Job Cost *Tax on materials and postage is not included. Postage is billed at actual cost. CCS will provide the lowest first class presort rates based on the address mix of each job. C7-7 990 Palm Street  San Luis Obispo, CA 93401 Notice Requesting Proposals for UTILITY BILL AND BUSINESS LICENSE CORRESPONDENCE PRINTING AND MAILING SERVICES Specification No. 91339 The City of San Luis Obispo is requesting proposals from qualified independent contractors for the printing and mailing of utility bills and business license correspondence pursuant to Specification No. 91339. All proposals must be received by the Finance and IT Department by 3:00 pm on Friday, October 3, 2014 when they will be opened publicly in the City Hall Council Chambers, 990 Palm Street, San Luis Obispo, CA 93401. Proposals received after said time will not be considered. To guard against premature opening, each proposal shall be submitted to the Finance and IT Department in a sealed envelope plainly marked with the proposal title, specification number, proposer name, and time and date of the proposal opening. Proposals shall be submitted using the forms provided in the specification package. An optional pre-proposal teleconference is tentatively scheduled for 10:00 am on Monday, September 15, 2015 to answer any questions that the prospective bidders may have regarding the City's request for proposals. Proposers interested in participating in the pre-proposal teleconference should contact Michelle Bulow of Finance and Information Technology at mbulow@slocity.org or (805) 781-7521 to receive a conference line phone number and password and to confirm the date and time. Finalist interviews have been tentatively scheduled for Friday, October 31, 2014. Specification packages and additional information may be obtained on the City of San Luis Obispo’s website http://www.slocity.org/finance/bids.asp or by contacting Michelle Bulow of Finance & Information Technology at mbulow@slocity.org or (805) 781-7521. C7-8 Specification No. 91339 TABLE OF CONTENTS A. Description of Work 1 Overview About the City Specific Scope of Work B. General Terms and Conditions 4 Proposal Requirements Contract Award and Execution Contract Performance C. Special Terms and Conditions 8 References Proposal Content Proposal Length and Copies Proposal Evaluation and Selection Proposal Review and Award Schedule Pre-proposal Conference Release of Reports and Information Copies of Reports and Information Non-Exclusive Contract D. Sample Form of Agreement 11 E. Insurance Requirements 13 F. Proposal Submittal Forms 15 Proposal Submittal Summary References C7-9 Section A DESCRIPTION OF WORK Overview The City is requesting proposals from qualified firms to fulfill the scope of work specified in this document for a 5-year term. It is the City’s policy to establish a long-term, ongoing relationship with our consultant, under which advice is available at all times as needed. At the end of a contract’s term, it is the city’s policy to seek formal proposals to ensure that it continues to receive quality professional services at the best competitive price. The primary purpose of this request is to establish a relationship with a mailing center to streamline the process for, and lower the cost of, assembling and mailing utility bills along with business license statements, bills and certificates. a.Minimum number of enclosures to be placed in an envelope is one. b.Maximum number of enclosures to be placed in an envelope is estimate to be four. c.Maximum time for mail to be processed and delivered to the post office, once received by contractor, is two working days. d.Delivery of all mail directly to the post office is the responsibility of the contractor. e.If the contractor intends to provide pick-up service at City facilities, the cost should be highlighted separately. f.Prices in the submittal form should be exclusive of postage costs, which will be passed directly to the City without any “mark-up” based on current postal rates. (Note that contractor is expected to provide the lowest available postage rate for each type of mailing issued by the city) g.The contractor must have the ability to invoice the city on a regular basis and to provide a billing statement that allows all charges to be broken out by city department should more than one provide material to be mailed in a given month. (City will provide information at the time that material is delivered for mailing regarding the department to be charged). Upon contract award, the Contractor and City will discuss billing procedures and agree upon the best, most cost effective method of paying invoices. About the City Detailed information about the City and its organization is available on our web site at www.slocity.org. Specific Scope of Work The city currently provides water and sewer utility billing on a weekly basis. It is possible that the frequency of the billing may change from weekly to monthly starting as early as April 2015. In addition, the city oversees the business license billing system which generates renewal notices, delinquent notices and ultimately the business license certificates during the times and in the quantities identified below. - 1 - C7-10 Section A DESCRIPTION OF WORK Scope of Work Provide laser printing in the formats and frequencies described below. Provide statement folding, insertion and mailing services including the application of the required postage. Provide all required paper goods, including forms and envelopes for the mailings described below. Obtain and then warehouse all paper goods required for these mailings in volumes sufficient to provide an economic benefit based on the volumes acquired. Utility Billing Statements and Billing Inserts Utility bill statements are mailed weekly; the approximate count is 3,500 statements per week. A billing statement sample is provided as an attachment (note printing is 2-sided on 8 ½ by 11 paper). Printing will be in gray scale using city approved fonts shown in a separate section. Delivery of the utility bill statements to the vendor will occur via transmission of an electronic file containing PDF versions of the forms to ensure the integrity of the meter consumption graphics for each statement. Proposers can suggest other forms of transmission that can be investigated if they provide greater economy and security in the transmission process. Statements include a perforation for a remittance stub at the lower portion of the form which is bar coded for use by automated payment processing equipment. The bar code must be readable by the city’s existing computer equipment with content identical to that contained in the existing bar code. Utility bills are mailed inside a number 10 window envelope and a number 9 return envelope is provided. Grayscale printing will be used in the formats provided in this RFP. Inserts are frequently provided in the same envelope as the utility bill statements. These are typically printed in pastel shades, double-sided and 1/3 sheet in size. A sample will be provided. Business License Renewal Notifications, Certificates and Notices Annually, the city issues business license renewal notification forms. Approximately 8,800 forms are sent in June each year. Approximately 4,000 second notices are sent in August, and then an additional 2,000 final notices are sent in September. Copies of the business license renewal notification forms will be provided. Annually the city issues business license certificates starting in June and through the month of September. Average volumes for each group of certificates that are printed and mailed varies depending upon the response to the reminder notices described above. An approximate count would be approximately 2,800 mailed in July; 4,000 sent in August; 2,000 sent in September. A copy of the business license certificate will be provided. Utility Billing Shutoff Notices Each week the city mails approximately 300 shutoff notices. A sample will be provided. - 2 - C7-11 Section A DESCRIPTION OF WORK Mailing Services All statements produced for printing and mailing shall be folded and inserted into individual envelopes with a return envelope included. All envelopes prepared for mailing shall have the most economical rate of postage applied to maintain the lowest possible cost to the city. All materials sent for mailing shall be mailed within two (2) days of receipt by vendor. Vendor shall allow the city to maintain a deposit account that will be used to pay for postage and replenished as needed. No more than one month’s average postage expense shall be maintained in the account unless circumstances warrant a different amount and city agrees to the higher amount. City may replenish the account with payment made by check or electronic means at the discretion of the city. The city is currently using Springbrook postal link to validate the customer mailing addresses an provide the Postal Full Version Intelligent Bar Code that is shown on the face of the sample utility bill provided and appears within the window envelope opening. Invoicing Requirement Vendor must be able to generate an invoice that itemizes the costs for sending statements separately from the costs for printing and mailing inserts in order to allow the City to charge the costs to the appropriate internal departments. Utility Billing Doorhangers Each week the city prints and delivers approximately 20 door hangers. A sample will be provided. City Approved Fonts and Format - 3 - C7-12 Section C SPECIAL TERMS AND CONDITIONS PROPOSAL REQUIREMENTS 1.Requirement to Meet All Provisions. Each individual or firm submitting a proposal shall meet all of the terms, and conditions of the Request for Proposals (RFP) specifications package. By virtue of its proposal submittal, the bidder acknowledges agreement with and acceptance of all provisions of the RFP specifications. 2.Proposal Submittal. Each proposal must be submitted in the format described in the RFP specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be received by the Finance and IT Department no later than 3:00 p.m. on Friday, October 3rd. The submittal package shall include 1 (one) hardcopy version and a thumb drive containing electronic versions of the documents provided in hardcopy form. Each electronic document provided on the thumb drive shall be properly labeled with regard to the order in which it appears in print. The exterior of the submittal package shall be clearly labeled with the words “Utility Bill and Business License Correspondence Mailing Services proposer name, and time and date of the proposal opening and Spec. #91339”. No FAX submittals will be accepted. It is the responsibility of each firm submitting a proposal to ensure that the electronic document(s) submitted are protected to ensure that no changes can be made to the submittal once it is in the possession of the city. Attention to the details required by the submittal process will be part of the overall evaluation and scoring. 3.Insurance Certificate. Each proposal must include a certificate of insurance showing: a.The insurance carrier and its A.M. Best rating. b.Scope of coverage and limits. c.Deductibles and self-insured retention. The purpose of this submittal is to generally assess the adequacy of the bidder’s insurance coverage during proposal evaluation; as discussed under paragraph 11 below, endorsements are not required until contract award. The City’s insurance requirements are detailed in Section E. 4.Proposal Quotes and Unit Price Extensions. The prices quoted by the proposer must be entered in figures in the spaces provided on the Proposal Submittal Form. 5.Proposal Withdrawal and Opening. A proposer may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the City Clerk for its withdrawal, in which event the proposal will be returned to the proposer unopened. No proposal received after the time specified or at any place other than that stated in the "Notice Requesting Proposals" will be considered. All proposals will be opened and declared publicly. 6.Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested in more than one proposal, except as part of an alternative proposal when specifically requested; however, an individual or business entity that has submitted a sub- proposal to a proposer submitting a proposal, or who has quoted prices on materials or services to such proposer, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other proposers submitting proposals. 7.Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged, but will be - 4 - C7-13 Section C SPECIAL TERMS AND CONDITIONS permitted, if directed to the Director of Finance and Information Technology, Wayne Padilla. However, any such oral communication shall not be binding on the City. CONTRACT AWARD AND EXECUTION 1. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 90 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See the "special terms and conditions" in Section C of these specifications for proposal evaluation and contract award criteria. 2. Competency and Responsibility of Bidder. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of proposers. Proposers will provide, in a timely manner, all information that the City deems necessary to make such a decision. 3. Contract Requirement. The proposer to whom award is made (Contractor) shall execute a written contract with the City within ten (10) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications. 4. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Section E of these specifications within 10 (ten) calendar days after notice of contract award as a precondition to contract execution. 5. Business Tax. The Contractor must have a valid City of San Luis Obispo business tax certificate before execution of the contract if their place of business is within the city limits. Additional information regarding the City's business tax program may be obtained by calling (805) 781-7134. CONTRACT PERFORMANCE 1. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 2. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 3. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay. 4. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 5. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. - 5 - C7-14 Section C SPECIAL TERMS AND CONDITIONS 6. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 7. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor's operations, it shall be replaced or restored at the Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 8. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 9. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. 10. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 11. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment or services provided by the Contractor (Net 30). Payment may be made from proceeds of the debt issuance if this is customary for the type of financing, but only upon the acceptance and approval by the city of an original invoice identifying the basis for the fees charged. 12. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 13. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 14. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with - 6 - C7-15 Section C SPECIAL TERMS AND CONDITIONS the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 15. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees, agents or officers that arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 16. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 17. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. (The City may also terminate the contract for convenience or financial necessity upon giving Contractor 30 days written notice of such action.) If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall workscope. - 7 - C7-16 Section C SPECIAL TERMS AND CONDITIONS The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. 1. Contract Term. The term of the contract shall be for a period of 5 (five) years. 2. Proposal Content. Your proposal must include the following information: Submittal Forms a. Proposal submittal cover letter. (item 1 in submittal) b. Certificate of insurance. (item 5 in submittal) c. References from at least three California municipalities for whom you have provided similar services within the past 2 (two) years. (item 4 in submittal) Note: For ease of proposal preparation, proposers are asked to prepare their own proposal submittal forms as long as they contain the information requested below, in the same order that each item is listed here. . Qualifications (item 2 in submittal) a. General qualifications of your firm to provide the mailing services described in this document within the timeframes listed. b. Experience in providing similar services required by the City to comparable California cities. c. Describe the quality control measures utilized by your firm to ensure that the work performed to accomplish the scope of work described here will be completed on time and with the level of accuracy that is standard within the industry. d. Description of particular and interesting issues, problems or complications that arose in previous engagements and how these were resolved. e. Resumes and responsibilities of the individuals who would be assigned to work with the City and the identification of the person who would be the City’s lead contact. f. Any other information that would assist us in making this contract award decision. Compensation (item 6 in submittal) a. Provide the cost associated with each of the elements of the work scope. Please keep distinct costs separate from the others. For example, provide the cost of printing envelopes as a separate fee (if costs are different for the different sizes of envelopes, - 8 - C7-17 Section C SPECIAL TERMS AND CONDITIONS please distinguish between the two. If the volumes requested can be obtained at a cheaper rate based on minimum orders, please provide the quantity needed to obtain the next price break) Printing of inserts as described in this document should be shown as a separate charge from printing the utility bills. b. Postage costs (piece rates) for each type of mailing proposed should be represented along with the postal code/rate designation for each amount shown. Statement of Litigation, Investigations, Conflicts of Interest and Disqualifications (item 3 in submittal) a. Statement and explanation of any instances where your firm or anyone proposed to be assigned to this project has been removed from a project or disqualified from proposing on a similar scope of work. b. Any instances in which your firm or anyone assigned to this project was the subject of an investigation by a state or federal agency related to a similar scope of work. Describe the outcome and status of that investigation. Network Security Describe in detail, the levels of security used to prevent unwanted access to your computer system from both within and outside your organization. Include the name of the vendor providing the security software in use and the version number of that program if applicable along with the date of the last security update applied to your system. 3. Proposal Length Format and Copies. Proposals should meet the following guidelines. a. Proposals should not exceed 15 pages, including attachments and supplemental materials. The proposal should be prepared simply and economically, providing a straightforward, concise presentation of the information requested. Please keep marketing material to a minimum and emphasize factual material. b. The required font size is 12 point, with minimum left and right margins of one-inch, and top and bottom margins of 0.7 inches. c. One (1) copy of the proposal must be submitted. Along with a write protected electronic version on a thumb drive. 4. Proposal Evaluation and Selection. Proposals will be evaluated by the Director of Finance based on the following criteria: a. Understanding of the work required by the City b. Quality, clarity and responsiveness of the proposal, including attention to form submittal requirement details - 9 - C7-18 Section C SPECIAL TERMS AND CONDITIONS c. Demonstrated competence and professional qualifications necessary for satisfactory performance of the work required by the City d. Recent experience in successfully performing similar services for comparable cities e. Adequacy of internal oversight of investment planning and transaction execution f. References g. Background and related experience of the specific individuals to be assigned to this work h. Proposed compensation As reflected above, contract award will not be based solely on price, but on a combination of factors as determined to be in the best interest of the City. After evaluating the proposals and discussing them further with the finalists or the tentatively selected financial advisor, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation. 5. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award: a. Issue RFP 9/07/14 b. Conduct pre-proposal teleconference 9/15/14 c. Receive proposals 10/03/14 d. Complete proposal evaluation 10/16/14 e. Conduct finalist interviews 10/30/14 f. Finalize award recommendation 11/06/14 g. Execute contract 11/19/14 6. Pre-Proposal Teleconference. To answer any questions that prospective proposers may have regarding this RFP, an optional pre-proposal teleconference is tentatively scheduled for: Monday, September 15, 2014 10:00 AM While not mandatory, proposers are strongly encouraged to participate in this teleconference. Proposers interested in participating in the pre-proposal teleconference should contact Michelle Bulow, Administrative Assistant, at (805) 781-7521 or mbulow@slocity.org to receive a phone number and password and to confirm the date and time. 7. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by or assembled by the firm as part of the work or services under these specifications shall be the property of City and shall not be made available or sold to any individual or organization by the firm. 8. Copies of Reports and Information. If the City requests additional copies of reports or any other material in addition to what the firm is required to furnish in limited quantities as part of the work or services under these specifications, the firm shall provide such additional copies as - 10 - C7-19 Section C SPECIAL TERMS AND CONDITIONS are requested, and City shall compensate the firm for the costs of duplicating of such copies at the firm's direct expense. 9. Non-Exclusive Contract. The City reserves the right to contract with other firms for similar services during the contract term. - 11 - C7-20 Section D SAMPLE FORM OF AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on _________________________, 2014, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [ ], hereinafter referred to as Consultant. W I T N E S S E T H: WHEREAS, on September 3, 2014, City requested proposals for Utility Bill and Business License Correspondence Printing and Mailing Services per Specification No. 91339. WHEREAS, pursuant to said request, Consultant submitted a proposal, which was accepted by City for said services. NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be for a period of 5 years, from the date this Agreement is made and entered, as first written above. 2. INCORPORATION BY REFERENCE. City Request for Proposal Document for Specification No. 91339 and Consultant’s proposal dated _________________, are hereby incorporated in and made a part of this Agreement. 3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Consultant shall receive therefore compensation as set forth in Exhibit A of this Agreement. 4. CONSULTANT'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Consultant agrees with City to do everything required by this Agreement. 5. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Manager. - 12 - C7-21 Section D SAMPLE FORM OF AGREEMENT 6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Consultant [ ] [ ] [ ] [ ] 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Consultant do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation By: City Clerk City Administrative Officer APPROVED AS TO FORM: Consultant By: City Attorney - 13 - C7-22 Section E INSURANCE REQUIREMENTS The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Errors and Omissions Liability insurance as appropriate to the consultant's profession. Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 4. Errors and Omissions Liability: $1,000,000 per occurrence. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. - 14 - C7-23 Section E INSURANCE REQUIREMENTS 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A: VII. Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. - 15 - C7-24 PROPOSAL SUBMITTAL FORM UTILITY BILL AND BUSINESS LICENSE CORRESPONDENCE PRINTING The authorized representative identified below declares that she or he: 1. Has carefully examined Specification No. 91339, which is hereby made a part of this proposal. 2. Is thoroughly familiar with its contents. 3. Is authorized to represent the proposing firm. 4. Agrees to perform the work as set forth in this proposal. Certificate of insurance attached; insurance company’s A.M. Best rating: __________________. Firm Name and Address Contact Phone Authorized Representative Date - 16 - C7-25 REFERENCES Number of years engaged in providing the services included within the scope of the specifications under the present business name: . Describe fully the work completed for 3 (three) California clients within the last 2 years that demonstrate your ability to provide the services required by the scope of the specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Below, please provide current contact information for each of these three clients. Reference No. 1 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Reference No. 2 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Reference No. 3 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome - 17 - C7-26 City of San Luis Obispo 990 Palm Street  San Luis Obispo, CA 93401 ADDENDUM DATE: September 17, 2014 PROJECT: Utility Bill and Business License SPECIFICATION NO. 91339 Printing and Mailing Services ADDENDUM NO.: 1 SUBMIT DATE: October 3, 2014 NOTICE TO ALL CONSULTANTS SUBMITTING PROPOSALS: You are hereby notified of the following changes, clarifications or modifications to the Request for Proposals. This addendum shall supersede the original Request for Proposals and subsequent addenda. Wherein this addendum contradicts the original Request for Proposal and previous addenda, this addendum shall take precedence. All other conditions shall remain unchanged. A. CHANGES AND/OR CLARIFICATIONS TO THE NOTICE REQUESTING PROPOSALS: 1.Attached is a FAQ sheet from the pre-proposal teleconference hosted on September 15, 2014. Also attached are samples of currently printed forms. Consultants are required to base their proposal on the Request for Proposals and any issued addenda. If you have any questions contact Michelle Bulow at (805) 781-7521 or a mbulow@slocity.org C7-27 City of San Luis Obispo, Finance and Information Technology, 990 Palm Street, San Luis Obispo, CA, 93401-3249, 805.781.7130, slocity.org FAQs from Pre-Proposal Teleconference for Utility Bill and Business License Printing and Mailing Services 1)Are billing statements and business license renewal forms 1 page, double sided? Yes, all forms are double sided with the back side being non-variable information. 2)How are forms and data transmitted? Forms: The forms themselves will have to revised/newly designed by the chosen vendor, adhering to the City’s new style guide. Lockups will be provided and the vendor must have the required fonts available: Holland Title and Helvetica Neue. Attached are pages from the City Style Guide with specifics. Form design will also have to work with billing (Springbrook) and business license renewal software (HdL). The only changes to the current formats will be the new City lockup and font types. Data: Data for the utility billing (from Springbrook) will be transmitted weekly via email or FTP site in a pdf format. File sizes range from 32GB to 36GB. Data for business license renewals and certificates can be transmitted by pdf; however, the software company is currently working on providing a module that will allow data to be transmitted with a CSV file. 3)Are all envelopes (including #9) printed by the chosen vendor? Yes, all envelopes, forms, and inserts are printed by the vendor per page 2, Section A of the RFP. 4)Will sort reports be provided for the post office? Yes, the Springbrook software produces sort reports and the data file is transmitted in the order of the report. 5)Will all inserts be 1/3 sheet and on colored paper? Yes, and with black font. 6)On page one of the RFP, you ask for prices exclusive of postage costs, and on page 9, you request a piece rate for postage. Please explain. Please include postage rates but breakdown all costs separately. 7)Do you want proposers to quote exactly as the RFP stipulates or give suggestions to enhance the process? Please provide the information requested in the RFP in the order listed, per the instructions on Page 8, Section 2. If a vendor wishes to identify suggestions for change and cost assumptions related to those changes, that information should be clearly labeled and provided after all information requested in the RFP document has been provided. We would appreciate any suggestions on making the process more cost effective while continuing to provide outstanding service to our residents. C7-28 8)Does the City provide an e-billing option? The City does not provide this option. Residents are able to pay online but we do not provide billing notices by email. 9)Is the City open to householding if vendor is able to provide presorting outside of the current process? Yes, the City is open to this wherever applicable; however, care would have to be taken as some addresses have more than one meter for separate units. 10)Is there a local vendor preference? The City of San Luis Obispo’s purchasing policies do not provide for a local vendor preference to be considered when evaluating the pricing proposals. 11)Is the City open to using a two window #10 envelope? This envelope style will not work with our statements/billing software. 12)Does the Springbrook software presort the accounts? Yes, see Question 4. 13). Can the bar code in the mailing line be turned off in the billing software? Yes. The fixed, printed material that will be generated by the vendor must conform to the style guide font requirements described in item #2 above. Material printed that is variable, such as the content of utility and business license billings will not be required to conform to the style guide. It has been noted that the proposal submittal form does not include spaces for entering pricing as instructed on Page 4, Item #4. Please submit pricing on your own document for Item #4. 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