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HomeMy WebLinkAboutInfoSend, Inc. - 2018-10-15City of Huntington Beach File #: 18-361 MEETING DATE: 10/15/2018 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Gilbert Garcia, Chief Financial Officer Subject: Approve and authorize execution of a three-year contract with InfoSend, Inc. to provide Utility Bill Statement Design, Print, Mail and Electronic Delivery Service Statement of Issue: City Council approval is requested for a three-year contract with InfoSend, Inc. to provide utility bill design, print, sorting, bill inserting, and electronic delivery or mailing of documents, including, but not limited to: utility bills (water, sewer, refuse, and FireMed), as well as business license tax certificates and renewal notices for both residential and commercial customers. Financial Impact: Sufficient appropriations are budgeted in the current fiscal year in the Finance Department accounts 10035206.63395 (Postage) and 10035206.69505 (Printing Services) in the amount of $219,000 and $86,000, respectively for a total of $305,000. Funds for future years will be budgeted accordingly. Over a three-year period, the total amount of this contract is $978,000, or approximately $326,000 per year. $47,000 of the total contract is to cover citywide printing service and insertion fees for any requested inserts going into the City's utility or business license billing distribution and will be funded through various department's budgets as needed. No additional appropriations are requested Recommended Action: Approve and authorize the Mayor and City Clerk to execute "Service Agreement Between the City of Huntington Beach and InfoSend, Inc. for Bill Statement Printing, Processing and Delivery Services" in an amount not to exceed $978,000 over a three-year term; and authorize the City Manager to execute the attached contract. Alternative Action(s): Do not approve the recommended action and direct staff accordingly. Analysis: The City of Huntington Beach Finance Department manages the processing, printing, and mailing City of Huntington Beach Page 1 of 3 Printed on 10/10/2018 69 powered by Legistar- File #: 18-361 MEETING DATE: 10/15/2018 operations for the following City services: utility billing (water, sewer, refuse, and FireMed), delinquent notices and billing inserts, as well as business license tax certificates and renewal notices. The City has been contracting with a third party vendor, InfoSend, Inc. to process, print, and mail Municipal Services bills since 2003. In May of 2018, the Finance Department conducted an RFP for "Professional Bill Statement Print and Processing Services." The City received proposals from five vendors, including the current vendor, InfoSend, Inc. Proposals were reviewed for methodology, a conversion plan (if a new vendor was to be selected), and cost. The City also annualized costs to arrive at estimated printing and processing fees. Between Municipal Services and Business License activities, approximately 573,800 billings are produced annually. Vendor Total 3 Year Cost InfoSend $ 978,000 Data Center $ 990,000 QuestMark $ 1,300,000 Ricoh $ 1,300,000 T/O Printing $ 1,500,000 * Estimated costs are rounded to the nearest thousand. Based on current production volumes and the proposed pricing, printing services and materials are estimated at $258,000. Postage is estimated at $673,000 over three years. Fees related to inserting various approved flyers into the City's billing (utility and business license) will be absorbed citywide and are estimated at $47,000 over the three-year period. Therefore, staff recommends a three-year agreement with InfoSend, Inc. not to exceed $978,000. The following chart details the breakdown of the contract. Estimated Costs Year 1 Year 2 Year 3 Three -Year Tot Printing Services 86,00 86,00 86,00 258,000 Postage* 219,00 224,00 230,00 673,000 Cit wide Inserts** NIA NIA NIA 47,000 Total 305,000.01$ 310,000.Od $ 316 000.01s 978,000.012 * Postage includes an annual 1.9% increase. ** Estimated amount to cover citywide inserts to be funded through various department b needed. Company Background InfoSend, Inc. was founded in 1996 and provides print and mailing services for over 400 City of Huntington Beach Page 2 of 3 Printed on 10/10/2018 70 powered by LegistarT'" File #: 18-361 MEETING DATE: 10/15/2018 organizations across the U.S. Their corporate headquarters and main production facility are located in Anaheim, CA. InfoSend solely owns and operates its data processing, printing, and mailing platforms and has recently expanded its manufacturing environment to include envelope production. This will allow material costs to remain stable and considerably lower than its competitors. Additionally, the United States Postal Service (USPS) established a Detached Mail Unit (DMU) at InfoSend's production facility. Meaning, USPS personnel are at the production facility to inspect all of the outbound first class mail. After the mail is inspected, it is cleared directly from InfoSend into the USPS system, thereby removing the need for the mail to be inspected after delivery and expediting mail turnaround and delivery time. InfoSend support staff have been providing the City with prompt and excellent customer service since 2003. Additionally, InfoSend has held their cost for paper and envelopes steady for the past three years and has agreed to hold those prices steady for another three years. Environmental Status: Not Applicable. Strategic Plan Goal: Enhance and Maintain City Service Delivery Attachment(s): 1. Service Agreement Between the City of Huntington Beach and InfoSend, Inc. for Bill Statement Printing, Processing, and Delivery Services. 2. Certificate of Insurance City of Huntington Beach Page 3 of 3 Printed on 10/10/2018 71 powered by LegistarT'" SERVICE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND InfoSend Inc. FOR Bill Statement Printing, Processing, and Delivery Services THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Huntington Beach a municipal corporation of the State of California, hereinafter called "City," and InfoSend, Inc. a California hereinafter referred to as "Contractor." Recitals A. The City desires to retain a Contractor having special skill and knowledge in the field of Bill Statement Printing, Processing, and Delivery Services B. Contractor represents that Contractor is able and willing to provide such services to the City. C. In undertaking the performance of this Agreement, Contractor represents that it is knowledgeable in its field and that any services performed by Contractor under this Agreement will be performed in compliance with such standards as may reasonably be expected from a comparable company or firm in the field. Contractor has been selected to perform these services pursuant to Huntington Beach Municipal Code Chapter 3.02, NOW, THEREFORE, it is agreed by City and Contractor as follows: 1. Scope of Services Contractor shall provide all services as described in Exhibit "A," which is attached hereto and incorporated into this Agreement by this reference. These services shall sometimes hereinafter be referred to as the "Project." Contractor hereby designates Russ Rezai who shall represent it and be its sole contact and agent in all consultations with City during the performance of this Agreement. 2. City Staff Assistance City shall assign a staff coordinator to work directly with Contractor in the performance of this Agreement. Page 1 of 17 18-6854/188762 3. Compensation a. City agrees to pay, and Contractor agrees to accept as total payment for its services, the rates and charges identified in Exhibit A. The total sum to be expended under this Agreement, shall not exceed Nine Hundred and Seventy Eight Thousand Dollars $978,000 during the term of this Agreement. b. Payment by City shall be made within thirty (30) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. C. Contractor shall be paid pursuant to the terms of Exhibit "B." 4. Term Time is of the essence of this Agreement. The services of Contractor are to commence as soon as practicable after the execution of this Agreement by City (the "Commencement Date") and terminate August 1, 2021 unless terminated earlier in accordance with the provisions of this Agreement. All tasks specified in Exhibit "A" shall be completed no later than three (3) years from the Commencement Date. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in Exhibit "A." This schedule and Term may be amended to benefit the Project if mutually agreed to in writing by City and Contractor. In the event the Commencement Date precedes the Effective Date, Contractor shall be bound by all terms and conditions as provided herein. 5. Extra Work In the event City requires additional services not included in Exhibit "A" or changes in the scope of services described in Exhibit "A," Contractor. will undertake such work only after receiving written authorization from City. Additional compensation for such extra work shall be allowed only if the prior written approval of City is obtained. 6. Disposition of Plans, Estimates and Other Documents Contractor agrees that title to all materials prepared hereunder, including, without limitation, all original drawings, designs, reports, both field and office notices, calculations computer code, language, data or programs, maps, memoranda, letters and other documents, shall belong to City, and Contractor shall turn these materials over to City upon expiration or termination of this Agreement or upon Project completion, whichever shall occur first. These materials may be used by City as it sees fit. Page 2 of 17 18-6854/188762 7. Hold Harmless Contractor hereby agrees to protect, defend, indemnify and hold harmless City,.its officers, elected or appointed officials, employees, agents, and volunteers from and against any and all, claims, damages, losses, expenses, judgments, demands and defense costs, and consequential damage or liability of any kind or nature, however caused, including those resulting from death or injury to Contractor's employees and damage to Contractor's property, arising directly or indirectly out of the obligations or operations herein undertaken by Contractor, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractors, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, including but not limited to concurrent active or passive negligence, except where caused by the active negligence, sole negligence, or willful misconduct of the City. Contractor will conduct all defense at its sole cost and expense and City shall approve selection of Contractor's counsel. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Contractor. 8. Workers Compensation Insurance Pursuant to California Labor Code Section 1861, Contractor acknowledges awareness of Section 3700 et seq. of this Code, which requires every employer to be insured against liability for workers' compensation; Contractor covenants that it will comply with such provisions prior to commencing performance of the work hereunder. Contractor shall obtain and furnish to City workers' compensation and employer's liability insurance in an amount of not less than the State statutory limits. Contractor shall require all subcontractors to provide such workers' compensation and employer's liability insurance for all of the subcontractors' employees. Contractor shall furnish to City a certificate of waiver of subrogation under the terms of the workers' compensation and employer's liability insurance and Contractor shall similarly require all subcontractors to waive subrogation. 9. General Liability Insurance In addition to the workers' compensation and employer's liability insurance and Contractor's covenant to defend, hold harmless and indemnify City, Contractor shall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage covering the Project/Service. This policy shall indemnify Contractor, its officers, employees and agents while acting within the scope of their duties, against any and all claims arising out or in connection with the Project/Service, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($1,000,000) for this Project/Service. This policy shall name City, its officers, elected or appointed officials, Page 3 of 17 18-6854/188762 employees, agents, and volunteers as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the Project/Service shall be deemed excess coverage and that Contractor's insurance shall be primary. Under no circumstances shall said above -mentioned insurance contain a self -insured retention, or a "deductible" or any other similar form of limitation on the required coverage. 10. Automobile Liability Insurance Contractor shall obtain and furnish to City an automotive liability insurance policy covering the work performed by it hereunder. This policy shall provide coverage for Contractor's automotive liability in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and a separate "Additional Insured Endorsement" page listing both the policy number and naming the "City of Huntington Beach, its officers, elected or appointed officials, employees, agents and volunteers" as additional insured on the endorsement. The above -mentioned insurance shall not contain a self -insured retention, "deductible" or any other similar form of limitation on the required coverage except with the express written consent of City. 11. Certificate of Insurance Prior to commencing performance of the work hereunder, Contractor shall furnish to City a certificate of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement; the certificate shall: a. provide the name and policy number of each carrier and policy; b. state that the policy is currently in force; and c. promise that such policy shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice; however, ten (10) days' prior written notice in the event of cancellation for nonpayment of premium. Contractor shall maintain the foregoing insurance coverage in force until the work under this Agreement is fully completed and accepted by City. The requirement for carrying the foregoing insurance coverage shall not derogate from Contractor's defense, hold harmless and indemnification obligations as set forth in this Agreement. City or its representative shall at all times have the right to demand the original or a copy of the policy of insurance. Contractor shall pay, in a prompt and timely manner, the premiums on the insurance hereinabove required. 12. Independent Contractor Contractor is, and shall be, acting at all times in the performance of this Agreement as an independent contractor herein and not as an employee of City. Contractor shall secure at its own cost and expense, and be responsible for any and all payment of all taxes, social security, state disability insurance compensation, unemployment compensation and other payroll deductions for Page 4 of 17 18-6854/188762 Contractor and its officers, agents and employees and all business licenses, if any, in connection with the Project and/or the services to be performed hereunder. 13. Conflict of Interest Contractor covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 14. Termination This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Contractor shall be entitled to receive and the City shall pay Contractor compensation for all services performed by Contractor prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Contractor to deliver to the City all work product completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Contractor consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 15. Exclusivity and Amendment This Agreement represents the complete and exclusive statement between the City and Contractor, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Contractor. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Contractor or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein. 16. Assignment Inasmuch as this Agreement is intended to secure the specialized services of Contractor, Contractor may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Contractors retained by City. Page 5of17 18-6854/188762 17. City Employees and Officials Contractor shall employ no City official nor any regular City employee in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement in violation of the applicable provisions of the California Government Code. 18. Notices Any notices, certificates, or other communications hereunder shall be given either by personal delivery to Contractor's agent (as designated in Section 1 hereinabove) or to City as the situation shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, to the addresses below. City and Contractor may designate different addresses to which subsequent notices, certificates or other communications will be sent by notifying the other party via personal delivery, a reputable overnight carrier or U.S. certified U.S. certified mail -return receipt requested: To City: City of Huntington Beach Attn: Gilbert Garcia Finance Department 2000 Main Street Huntington Beach, CA 92648 19. Consent To Contractor: InfoSend, Inc. ATTN: Russ Rezai 4240 E. La Palma Ave. Anaheim, CA 92807 When City's consent/approval is required under this Agreement, its consent/approval for one transaction or event shall not be deemed to be a consent/approval to any subsequent occurrence of the same or any other transactions or event. 20. Modification No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 21. Section Headings The titles, captions, section, paragraph and subject headings, and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. Page 6of17 18-6854/188762 22. Interpretation of this Agreement The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 23. Duplicate Original The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 24. Immigration Contractor shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 25. Legal Services Subcontracting Prohibited Contractor and City agree that City is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. Contractor understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for City; and City shall not be liable for payment of any legal services expenses incurred by Contractor. 26. Confidentiality Contractor recognizes that in the performance of its duties under this Agreement, it must conduct its activities in a manner designed to protect information of a sensitive nature from improper use or disclosure. Contractor warrants that it will use reasonable efforts consistent with practices customary in the facilities management industry in recruiting, training and supervising employees and in otherwise performing its duties hereunder in order to achieve this result. In the furtherance of this, Contractor agrees, at the request of the City, to require its employees to execute written undertakings to comply with the foregoing confidentiality provision. Page 7of17 18-6854/188762 27. Discrimination Contractor shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other employment related activities. Contractor affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 28. Jurisdiction - Venue This Agreement and all questions relating to its validity, interpretation, performance, and enforcement shall be government and construed in accordance with the laws of the State of California. This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 29. Professional Licenses Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Huntington Beach and all other governmental agencies. Contractor shall notify the City immediately and in writing of their inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 30. Attorney's Fees In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the nonprevailing party. 31. Survival Terms and conditions of this Agreement, which by their sense and context survive the expiration or termination of this Agreement, shall so survive. 32. Governing Law This Agreement shall be governed and construed in accordance with the laws of the State of California. Page 8 of 17 18-6854/188762 33. Signatories Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. 34. Entirety (a) The parties acknowledge and agree that they are entering into this Agreement freely and voluntarily following extensive arm's length negotiation, and that each has had the opportunity to consult with legal counsel prior to executing this Agreement. The parties also acknowledge and agree that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by that party or anyone acting on that party's behalf, which are not embodied in this Agreement, and that that party has not executed this Agreement in reliance on any representation, inducement, promise, agreement warranty, fact or circumstance not expressly set forth in this Agreement. (b) All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. 35. Effective Date IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers. This Agreement shall be effective on the date of its approval by the City Attorney. This Agreement shall expire when terminated as provided herein. Page 9 of 17 18-6854/188762 CONTRACTOR InfoSend By: rint name ITS: (circle one) Chairman(resident ice President AND By: V, ;o ,pmLn ame ITS: (circle oiQ Secretary hief Financial Officer/Asst. Secretary - Treasurer COUNTERPART CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California City Manager INITIATED AND APPROVED: Director of Finance APPROVED AS TO FORM: City Attorney Date RECEIVE AND FILE: Date Page 10 of 17 City Clerk CONTRACTOR InfoSend Inc. print name ITS: (circle one) Chairman/President/Vice President AND CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California City Manager INITIATED AND APPROVED: thief Financial Officer print name ITS: (circle one) Secretary/Chief Financial APPROVED AS TO FORM: Officer/Asst. Secretary - Treasurer City Atto, ey Date RECEIVE AND FILE: COUNTERPART Date Page 10 of 17 City Clerk 18-6854/188762 CONTRACTOR InfoSend Inc. By: int name ITS: (circle one) Chairrna resident ice President AND By: "' riot name ITS: (circle o>!Secretary/ hief Financial Officer/Asst. Secretary - Treasurer COUNTERPART CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California PF . ty Manager INITIATED AND APPROVED: Director of Finance APPROVED AS TO FORM: City AttAiey �,6V Date RECEIVE AND FILE: City Clerk Date 10J/g J/ k Page 10 of 17 EXHIBIT A EXHIBIT "A" A. STATEMENT OF WORK: (Narrative of work to be performed) Infosend will design, print, sort, insert and deliver (electronically)/mail documents including, but not limited to, utility bills and business tax notices for both residential and commercial customers. Infosend will provide payment service options to the City for its customers, allowing payment to be remitted to city on a timely and secure basis. B. CONSULTANT'S DUTIES AND RESPONSIBILITIES: All services will continue with the City's current utility billing system (Advanced CIS Infinity), which includes water, sewer, refuse, FireMed, Fats, Oils, and Grease services as well as business license tax certificates and renewal notices, delinquent notices, and billing inserts. At a minimum, InfoSend must provide all required services as proposed in response to the RFP in order to meet the City's expected service levels, including ensuring current service levels are maintained. Statement Design 1. InfoSend will provide in house design services for the redesign of the utility bill. 2. InfoSend will provide proof copies of redesigned bill statement. 3. InfoSend will be able to print a single -sided bill with a pre-printed back or duplex designed bill. 4. InfoSend must be able to assist with as needed bill statement design services for business license renewal notices and business license tax certificates. Daily Processing 1. InfoSend will produce the printed bill statement, fold, insert return envelopes and/or notices, and process for mailing all from the same facility location. Sub -contracting of this work is not allowed. Exceptions will require City approval. 2. InfoSend will accept daily bill files using a secure online upload or a standard FTP or SFTP transmission. The City must be able to connect to the Vendor's server and transmit the files daily. An e-mail file transmission is not acceptable. InfoSend should be able to Page 11 of 17 EXHIBIT A accept the City's bill files in their current format, using the current transmission method at a minimum. 3. InfoSend will be able to connect to the vendor's secure server. 4. InfoSend will give the City the ability to view and approve sample bills online before they are printed and mailed. 5. InfoSend will mail bills within one business day of receipt. Same day printing and mailing is preferred. 6. InfoSend will mail bills at the First Class carrier route presort rate. 7. InfoSend will certify that the mailing conforms to all United States Postal Service regulations, such as CASS certification, Move Update standards or any other regulations that may apply. InfoSend will provide the City the ability to verify proof of delivery to the USPS on an as -needed basis. 9. InfoSend will mail multiple bills to the same customer and mailing address together. Bills shall be matched and inserted into one appropriate size envelope and metered first-class separately, and delivered to the USPS at the same time as all other bills are delivered. These bills require only a single return envelope and single inserts. 10. InfoSend must have the capability to suppress the printing of bills and/or envelopes for certain customers, based on City requirements. Suppression shall be available on a one- time or continual basis. 11. InfoSend must be able to produce the City's bill in the current format or propose a new bill format. 12. InfoSend will design and produce the bill stub in the same format to meet the specification of other city billing statements; e.g. ensuring the scan line on the stub includes account information and a check digit that is calculated via a specific algorithm. 13. InfoSend will have the capability to print: a) Intelligent bill messages based on customer type b) Logos and usage history graphs c) Multiple page bills as needed 14. Bills must be mailed via presorted first class mail. More details about mailing requirements are provided below. 15. InfoSend will enable the City to track all files that have been sent to the vendor - before, during, and after processing. Page 12 of 17 EXHIBIT A 16. InfoSend will provide status reports daily after processing is complete. 17. Bill Inserts and Messages a) InfoSend will provide an interface that will allow the city to update requirements for bill messages and bill inserts on a monthly basis. b) The interface must allow the City to include/exclude inserts and messages based on City requirements. c) InfoSend will provide specific information about this interface, including screen shots and details about the process for new requests and updates to existing requests. 18. InfoSend will be able to provide inserts in black ink or color, 1/3 page or 8 '/2" x 11" with a tri-fold. 19. InfoSend will implement quality control procedures, the ability to pull a bill from production, and procedures for ensuring that the bill file transmissions are completed successfully. 20. Delinquent Notices: InfoSend will be able to: a) Receive electronic data of delinquent only accounts either as raw data or PDF file format. b) Post PDF proof versions online for City review and approval. 21. Business License Renewal Notices: InfoSend will utilize uploaded data files in CSV file format provided by the City to populate onto renewal invoice design, fold, and prepare for USPS mailing. a) InfoSend must be able to post PDF proof versions online for City review and approval. 22. Business License Tax Certificates: InfoSend will utilize uploaded data files in CSV file format provided by the City to populate onto paid certificate design, fold, and prepare for USPS mailing. a) InfoSend must be able to post PDF proof versions online for City review and approval. Archive and Mail 1. InfoSend must be able to provide "Bill Image Archives": a) All "valid" (bills not in error) bill images must be archived as PDF files on the same day the bill files are received by the vendor. This includes bills that are not printed based on requirements from the City. b) Archive files must be easily accessible to City staff via an online interface. c) Bill archiving system must have a secure, encrypted API to allow third party integration to access bill images, if necessary. (Invoice Cloud must be able to call vendor to allow customer viewing of invoices). Page 13 of 17 EXHIBIT A d) Bill images must be stored for 24 months. Reporting 1. InfoSend will provide: a) File Confirmation Report — Confirm receipt of file transmission. The File Transfer Acknowledgement Report provides information on the file name, byte size, page/record count, and file receipt date. 2. Daily Production Confirmation Reports via email — immediately after processing is complete: a) Volume of bills 1) received for processing 2) printed 3) not printed b) Changes of Address: 1) Customer Name 2) Utility Account number 3) Previous address 4) New address Security 1. InfoSend must meet all current security protocols to protect the City's data from unauthorized access. 2. InfoSend must allow site visits by City personnel. Paper Supplies InfoSend must be able to reproduce the preprinted and perforated paper stock that can match or exceed the quality of the current stock and provide the same number of preprinted colors. a) Pricing should include standard 8.5" x I I" as well as 8.5" x 14" paper options. b) The following envelopes must be provided by the vendor: A double window 410 mailing envelope A single window 49 security return envelope 2. InfoSend will receive shipments and store/warehouse all forms and envelopes used to process the City's bills. Inserting and Design Services Page 14 of 17 EXHIBIT A 1. InfoSend will accept inserts printed by other vendors and provide insert printing services as well. 2. InfoSend will assist with insert layout and design if necessary. 3. InfoSend will assist with envelope snipe design if necessary. 4. InfoSend will provide selective inserting services. 5. InfoSend will provide the option to be able to display inserts in a digital format with archived bills. 6. InfoSend will receive shipments of inserts and store/warehouse all forms used in City's bills. Customer Support and Disaster Recovery Customer Support a) The vendor must provide unlimited customer support during the hours of 8:00 am — 5:00 pm, Pacific Time b) Provide procedures for after-hours support. c) Provide a list of company holidays. d) Provide contact points for customer service. 2. Disaster Recovery a) The vendor must have a disaster recovery facility to process the City's bills if the main facility becomes inoperable. b) Provide locations and information about these facilities. c) Provide a summary of the disaster recovery plan. d) Indicate the resources the City will be required to provide if a disaster Additional Services InfoSend must be able to provide optional additional services per the City's request as needed during the term of this contract. Should the City request such services, it must be in addition to, and readily distinguishable from costs for document printing and mailing services and in accordance with the fees outlined in Exhibit B. C. CITY'S DUTIES AND RESPONSIBILITIES: City will provide Infosend with regular data files to enable the production of utility billing statements and business tax notices, etc. City will review and approve files for printing, delivery/mailing of statements and notices to the customer. City will provide Infosend with Page 15 of 17 EXHIBIT A information to enable specific data to be suppressed from daily print file. City will review and authorize payment of invoices. City will provide regular updates to the bill statement message and billing inserts. D. WORK PROGRAM/PROJECT SCHEDULE: C0 Page 16 of 17 EXHIBIT B EXHIBIT "B" Payment Schedule (Fixed Fee Payment) 1. CONSULTANT shall be entitled to monthly progress payments toward the fixed fee set forth herein in accordance with the following progress and payment schedules. Total fees shall not exceed Nine Hundred and Seventy Eight Thousand Dollars ($978,000) as outlined in the fee proposal. 2. Delivery of work product: A copy of every memorandum, letter, report, calculation and other documentation prepared by CONSULTANT shall be submitted to CITY to demonstrate progress toward completion of tasks. In the event CITY rejects or has comments on any such product, CITY shall identify specific requirements for satisfactory completion. 3. CONSULTANT shall submit to CITY an invoice for each monthly progress payment due. Such invoice shall: A) Reference this Agreement; 13) Describe the services performed; C) Show the total amount of the payment due; Upon submission of any such invoice, if CITY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, CITY shall approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by CITY. Such approval shall not be unreasonably withheld. If CITY does not approve an invoice, CITY shall notify CONSULTANT in writing of the reasons for non -approval and the schedule of performance set forth in Exhibit "A" may at the option of CITY be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. 4. Any billings for extra work or additional services authorized in advance and in writing by CITY shall be invoiced separately to CITY. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by CITY if the work performed is in accordance with the extra work or additional services requested, and if CITY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. Page 17 of 17 EXHIBIT B Fee Proposal Complete the table below. Initial and Ongoing Professional Services Fees One -Time Implementation Fee S Not Onc-Time Fee Includes all phases of the project prior to the production Applicable - phase: initial programming, testing, and implementation. Already Live Professional Services Charges S 175.00 Per Hour For requested programming changes after initial implementation. Professional Services Charges $ 175.00 Per Hour For requested Bill Statement design changes or statement upload changes (PDF to raw data file). Cost of Materials Statement Paper Stock Cost $ 0.016 Per Sheet 8.5x 11", 24 pound paper stock with a micro -perforation. Statement Paper Stock Cost $ 0.016 Per Sheet 8.5x11", 24 pound paper stock with a micro -perforation. Outgoing Envelope Cost S 0_017 Per Envelope Double window #10 envelope with security tint. Outgoing Envelope Cost $quote at Per Envelope Single window #10 envelope with security tint and City of spec Huntington Beach logo and other snipe requests. Return Envelope Cost $ 0.016 Per Envelope Single window #9 envelope with security tint. Return Envelope Cost *single window as currently used` $ 0.016 Per Envelope lotxblv*window #9 envelope with security tint. w/ Green Bar Flat Envelope Cost $ 0.17 Per Envelope Applies only to multi -page bills that do not fit in the standard double window #10 envelope. Standard 9x12 envelope * Same -day processing - Add $0.003 per unit (samples must be approved by 9:00am) Page 10 of 13 56 89 EXHIBIT B Service Fees 1 Page Bill Service Fee $ 0.06 Per 1 Page Bill Includes file transnussion, data processing, duplex black plus one color (blue, red, or green) bill printing, mail preparation (folding, inserting a 1-page bill and the return envelope into an outgoing envelope), and delivery to the USPS. Additional Bill Pages Service Fee $ 0.06 Per Additional Per -page cost to print and insert additional pages if the bill Page contains more than 1 page. Optional Marketing Insert Fee $ 0.01 Per Additional Charge for inserting client -provided marketing insert. Insert For example: Monthly newsletter. Provide cost for all insert related services (i.e. cutting, folding) Optional Move Update Service Fees $ 0.25 Per Reported NCOALink or ACS service. Change Optional Archive Fee $ Per PDF Images must be stored in PDF fonrrat for 36 months. 0.004 for 6 mo. Archived List other archive options and fees. 0.008 for 12 mo 012for 18m . U.U1 b Tor G4 mo. 0.02 for 30 mo. 0.024 for 36 mo. 5. PROCESS FOR SUBMITTING PROPOSALS s Content of Proposal The proposal must be submitted using the format as indicated in the proposal format guidelines. s Preparation of Proposal Each proposal shall be prepared simply and economically, avoiding the use of elaborate promotional material beyond those sufficient to provide a complete, accurate and reliable presentation. s Submission of Proposals Complete proposals must be submitted electronically via PlanetBids Online in PDF format and received no later than 4:00 PM (PST) on June 4, 2018. Proposals will not be accepted after this deadline. Faxed or e-mailed proposals will not be accepted. s Inquiries Questions about this RFP must be directed in writing, via a -mail to: Jun Slobojan, Fiscal Services Manager islobojanLusurfcity-lib,gig From the date that this RFP is issued until a firm is selected and the selection is announced, firms are not allowed to communicate for any reason with any City employee other than the contracting officer listed above regarding this RFP, except during the pre - Page 11 of 13 57 90 EXHIBIT B Business Tax Pricing: Data Processing, Print & Mail Service Monthly Fees Monthly Fees — Turnkey Data Processing, Print & Mail Service: The individual prices shown in the table below apply only to the turnkey data processing, printing, and mailing service for the following document types. Other types of document printing and or mailing can be quoted later, if needed.InfoSend's Per Item Options Turnkey Data Processing, Below: Print & Mail service Business License Notice Renewals (Per Sheet) Est. Volume 2,200/month Price is per physical page. Price for monthly file transmissions Includes processing of your Price includes printing of variable data and form elements Price per unique data, CASS address on the front of the page onto white form with a perforation piece validation, presorting, printing, and mail insertion. Finished mail B&W simplex printing $0.13 pieces are delivered to the USPS within one (1) business Highlight Color (green, red, blue) simplex printing $0.15 day. Surcharge for duplex (B&W or Highlight) $0.015 Excludes materials, sales tax Batch fee per file transmission $0.00 — Waived (where applicable), and for monthly files postage. A postage deposit will be required. Business License Certificates (Per Sheet) Est. Volume 1,750/month For the quoted prices to apply InfoSend must have the right to Price for weekly file transmissions combine data files sent by your Price includes simplex printing of variable data and form Price per 0elements organization with other files you on the front onto a white form with a perforation piece a, have sent, when possible. B&W simplex printing $0.15 Higher pricing applies if files Surcharge for duplex $0,02 must be printed separately. Highlight Color (green, red, blue simplex printing (9 ) P P 9 $0.17 m E Pricing assumes the use of Surcharge for duplex $0.02 a materials options listed in the below section. Full Color printing simplex $0.21 Surcharge for duplex $0.04 Batch fee per file transmission $0.00 — Waived for weekly files Price for daily file transmissions (if needed) Price includes black simplex printing of variable data and form elements on the front of the page onto white form with Price per a perforation piece B&W simplex printing $0.30 Highlight Color (green, red, blue) simplex printing $0.33 Surcharge for duplex (B&W or Highlight) $0.03 Full Color printing simplex $0.37 Surcharge for duplex $0.04 Batch fee per file transmission $30.00 for daily files Postage (for all job types) Pass Through You will be invoiced for the exact postage used 58 EXHIBIT B Material Component Fees — Data Processing, Print & Mail Service Forms Business License Notices: 8.5x11" white paper stock with perforation. Per Sheet $0.017 Paper is 8.5x11" and 241b. Price includes all inventory costs. N f9 Q, Business License Certificates: custom paper stock with perforation. Per Sheet $0.017 M Paper is 8.5x11" and 241b and has a static pre-printed backer. Variable data is printed on the front of the bill. Price includes all inventory costs. OR Please note that forms use regular paper stock. 30% post -consumer recycled paper stock is available for $0.005 additional per piece. InfoSend Standard Window Envelopes Standard Window Envelopes Per Standard Envelope Options N � Below: •C: These envelopes include security tint printed on #10 InfoSend Standard $0.017 the inside of the paper stock and clear film that Double Window Outgoing 2 prevent the contents of the envelope from being viewed. These envelopes also use sustainably #9 InfoSend Standard $0.016 logged paper (SFI). Single Window Return Envelope 59 INFOINC-01 SHEHNER i ACOR®" CERTIFICATE OF LIABILITY INSURANCE E (MAVD DATE 018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in Ileu of such endorsement(s). PRODUCER License # OD28764 c T CT Orion Risk Management Insurance Services, Inc. 1800 Quail Street, Suite 110 Newport Beach, CA 92660 V Nt o, EA); (949) 263-8650 t No);(949) 263.8860 'A RES : INSURERS AFFORDING COVERAGE 0 INSURER A: Federal Insurance Company �NAIC 2_0281 INSURED INSURER a: AXIS Insurance CampanV 37273 INSURER c: INFOSEND, Inc. / Reza! and Son, LLC INSURER D: 4240 E. La Palma Ave Anaheim, CA 92807 INSURER E: 1NSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL D SUBR VD POLICY NUMBER POLICY EFF POLICY EXP D LIMITS A X COMMERCIAL GENERAL LIABILITY CLAIMS -MADE 7xOCCUR X 36031149 02/01/2018 02/01/2019 EACH OCCURRENCE 1,000,000 DAMAGE TO RENTED PREMtSEs fE a 1,000,000 MED_EXP An one arson $ 10,000 PERSONAL & ADV INJURY 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: POLICY ❑ jEaFILOC GENERAL AGGREGATE $ 2,000,000 PRODUCTS -COMPlOPAGG 2,0009000 $ OTHER: A AUTOMOBILE LIABILITY .d..tSINGLE LIMIT C eMBINED $ 1,000,000 BODILY INJURY Per person)$ ANY AUTO 73587120 02/01/2018 02/01/2019 Ix AUTOS ONLY AUUTOSyUyLED BODILY INJURY Per accident $ PPe�Pc dent SAGE $ AU7� ONLY X AUTOS ONLY A X UMBRELLA LIAB X OCCUR EACH OCCURRENCE 51000,000 _ AGGREGATE $ 5,000,000 EXCESS LIAB CLAIMS -MADE 79B96856 02/01/2018 02/01/2019 DED I I RETENTION $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE Y❑ endatorylnNH)CLUDEDT NIA %� 71749812 02/01/2018 02/01/2019 X STATUTE ETH- E.L. EACH ACCIDENT 1,000,000 E.L. DISEASE -EA EMPLOYE _ 1'00�'000 S If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE -POLICY LIMIT S 1,000,000 B E&O; $25,000 DIED MCN00222831701 12/01/2017 12/01/2018 E&O Limit 5,000,000 B Cyber; $25,000 DIED MCN00222831701 12/01/2017 12/01/2018 Cyber Limit 1,000,000 DESCRIPTION OF OPERATIONS J LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, maybe attached If more spacers required) The City of Huntington Beach, Its officers, elected and appointed officials, employees, agents and volunteers are hereby named as an additional Insured with regards to General Liability. Waiver of subrogation applies to workers compensation. APPROVED AS TO FM By; _Slw P---zaA h MICHAEL E. GATES CITY ATTORNEY CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE The City of Huntington Beach THE EXPIRATIODATE THEREOF, ACCORDANCE WITH THE POLICY ROVISIONS�E WILL BE DELIVERED IN 2000 Main Street Huntington Beach, CA 92648 AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD C H U B B• Liability Insurance Endorsement Policy Period FEBRUARY 1, 2018 TO FEBRUARY 1, 2019 Effective Date FEBRUARY 1, 2418 Policy Number 3643-11-49 NBO Insured INFOSEND INC Name of Company FEDERAL INSURANCE COMPANY Date Issued SEPTEMBER 7, 2018 This Endorsement applies to the following forms: GENERAL LIABILITY Under Who Is An Insured, the following provision is added. Who Is An Insured Addi oval Insured - Persons or organizations shown in the Schedule are insureds; but they are insureds only if you are Scheduled Person obligated pursuant to a contract or agreement to provide them with such insurance as is afforded by Or Organization this Policy. However, the person or organization is an insured only; • if and then only to the extern the person or organization is described in the Schedule; • to the extent such contract or agreement requires the person or organization to be afforded status as an insured-, • for activities that did not occur, in whole or in part, before the execution of the contract or agreement; and • with respect to damages, loss, cost or expense for injury or damage to which this insurance applies - No person or organization is an insured under this provision: • that is more specifically identified under any other provision of the Who Is An Insured section (regardless of any limitation applicable thereto). • with respect to any assumption of liability (of another person or organization) by them in a contract or agreement This limitation does not apply to the liability for damages, loss, cost or expense for injury or damage, to which this insurance applies, that the person or organization would have in the absence of such contract or agreement. Liability Insurance AdditlonalInsured - scheduled Person OrOrganLmtlon congnued Form 804Z2387(Rev. 5-07) Endorsement Page 1 CH U B B6 Liablifty Endorsement (continued) Under conditions, the following provision is added to the condition titled Other Insurance. Conditions Other Insurance — If you are obligated, pursuant to a contract or agreement, to provide the person or organization Primary, Noncontributory shown in the Schedule with primary insurance such as is afforded by this policy, then in such case Insurance — Scheduled this Insurance is primary and we will not seek contribution from insurance available to such person Person Or Organization or organization. Schedule THE CITY OF HUNTINGTON BEACH, ITS OFFICERS, ELECTED AND APPOINTED OFFICIALS, EMPLOYEES, AGENTS AND VOLUNTEERS 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 All other terms and conditions remain unchanged. Authorfrad RaprosenfatW Liability Insurance Adc9b"W Insured - Scheduled Person or organL-affon Fban 80-a2-2387 (Rev. 5.07) Endowment last page Page 2 City of Huntington Beach 2000 Main Street ♦ Huntington Beach, CA 92648 (714) 536-5227 • www•huntingtonbeachca.gov Office of the City Clerk - Robin Estanislau, City Clerk October 18, 2018 InfoSend, Inc. Attn: Russ Rezai 4240 E. La Palma Ave. Anaheim, CA 92807 Dear Mr. Rezai: Enclosed is a copy of the fully executed "Service Agreement between the City of Huntington Beach and InfoSend Inc. for Bill Statement Printing, Processing, and Delivery Services" Sincerely, Robin Estanislau, CIVIC City Clerk RE:ds Enclosure Sister Cities. Anjo, Japan ♦ Waitakere, New Zealand