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Home My WebLink About02-22-2005 ITEM VIII-B-4CITYOF - l�iB AGENDA BILL APPROVAL FORM WASHINGTON Agenda Subject: Data: Resolution No. 3820 January 28, 2005 Department: Attachments: Budget Impact: Finance Resolution No. 3820 and Exhibit "A" Administrative Recommendation: City Council adopt Resolution No. 3820. Background Summary: At the end of August 2004, our current vendor that prints and mails our utility bill statements, Puget Sound Energy, notified us that they would no longer provide this service, as they sold this portion of the business operations to a contractor in Texas. They would however, continue to provide our lockbox service indefinitely. We have been a satisfied client for 3 years. The Finance Department used this opportunity to search for competitive bids through the RFP process. In early November 2004, we published a Request for Proposal for both printing and lockbox services. We received seven proposals, six of which were for printing only services and one for lockbox only services. There was one proposal for printing services that stood out among the others, DataProse, located in Oxnard, CA. Of significant value was that DataProse was selected by our new utility billing vendor, Springbrook Software, as their preferred statement provider. This partnership will combine their capabilities and provide clients the most flexibility to meet the changing demands of the industry. Another feature provided solely by DataProse, was their on-line services to store, view, print, and email statements electronically. This will provide our front line CSR's with an advantage to assist the customer more effectively and efficiently. And finally, the cost difference for the same services we are currently receiving plus the on-line services was only an additional $0.01 per statement. N0222-1 F4.5.4, A3.16.3 Reviewed by Council & Committees: Reviewed by Departments & Divisions: ❑ Arts Commission COUNCIL COMMITTEES: ❑ Building ❑ M&O ❑ Airport ® Finance ❑ Cemetery ❑ Mayor ❑ Hearing Examiner ❑ Municipal Serv. ❑ Finance ❑ Parks ❑ Human Services ❑ Planning & CD ❑ Fire ❑ Planning ❑ Park Board ❑Public Works ❑ Legal ❑ Police ❑ Planning Comm. ❑ Other ❑ Public Works ❑ Human Resources Action: Committee Approval: ❑Yes ❑No Council Approval: ❑Yes []No Call for Public Hearing Referred to Until Tabled Until Councilmember: Backus Staff: Coleman Meeting Date: February 22, 2005 Item Number: VIII.B.4 AUBURN *MORE THAN YOU IMAGINED Agenda Subject: Date: Resolution No. 3820 January 28 2005 After several cities were contacted as references, the Finance staff recommends that the bid for printing and mailing services be awarded to DataProse. Implementation would be simultaneous with the utility billing upgrade with a target date of 5123105. Since only one bid was received for lockbox services and it was out of state, the recommendation of staff is to retain PSE as the lockbox service provider. Page 2 of 2 Annual Count Rate/ ear Annual Total PSE Actual 2003 116,694 $0.180 $21,005 2004 122,777 $0.180 $22,100 DataProse Est 2006 125,233 $0.190 $23,794 2007 127,738 $0.193 $24,653 2008 130,293 $0.195 $25,407 Page 2 of 2 RESOLUTION NO. 3 8 2 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT FOR UTILITY BILLING SERVICES BETWEEN THE CITY OF AUBURN AND DATAPROSE, INC FOR THE PURPOSE OF PROVIDING FOR AND MAINTAINING PRINTING AND MAILING SERVICES FOR THE CITY'S UTILITY BILLING SYSTEM THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, IN A REGULAR MEETING, DULY ASSEMBLED, HEREWITH RESOLVES AS FOLLOWS: Section 1. The Mayor and City Clerk of the City of Auburn are hereby authorized to execute a Production Agreement between the City and DataProse, Inc. for the purpose of providing printing and mailing services for the City's utility billing system. A copy of said Agreement is attached hereto, designated as Exhibit "A" and incorporated by reference in this Resolution. Section 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 3. This Resolution shall be in full force and effect upon passage and signatures heron. DATED and SIGNED this day of 2005. CITY OF AUBURN PETER B. LEWIS MAYOR Resolution No. 3820 January 28, 2005 Page 1 of 2 ATTEST: Danielle Daskam, City Clerk APPROVED AS TO FORM: City Attorney Resolution No. 3820 January 28, 2005 Page 2 of 2 DATAProse PRODUCTION AGREEMENT e ■ ■M Last updated: 1.26.2005 Smarter Statements (0, Better Results This Production Agreement (Agreement) is made and entered into as of the 1st day of May, 2005 (Effective Date), by and between DataProse, Inc., a California Corporation (DataProse), and the Cty of Auburn, WA, organized under the laws of WA (Client). In consideration of the mutual promises and benefts contained herein, the parties hereby agree as follows: ARTICLE 1 SCOPE OF PRODUCTION AGREEMENT. DataProse agrees to provide to Client services defined in Schedule 1.0, and Client agrees that DataProse shall be Its exclusive provider of these goods and/or services during the term of this Agreement. During the tens of this Agreement, the Client agrees to produce a minimum monthly quantity of 8,000 invoices ("Minimum Commitment") for a period of 12 months, based upon the rates and terms provided herein. In the event that the Client does not fulfill the Minimum Commitment during any given month, or for the required period, then Client shall pay to DataProse a Minimum Processing Fee In an amount that shall be calculated based upon the Minimum Commitment and the rates and tennis provided herein. ARTICLE 2 COMPENSATION. In full and complete compensation for all goods and/or services provided by DataProse hereunder, Client agrees bo pay -DataProse according to the rates set forth In Schedule 1.0. DataProse will provide an Invoice to Client after each production run consisting of the fees, as outlned In Schedule 1.0 and postage used. Invoices are due upon receipt and will be considered past due If not paid within 30 days. A monthly late charge will be assessed on statements not paid within thirty (30) days. The late payment charge will be 1-1/2% per month applied to the Invoke amount unpaid (30) thirty days after billing to Client. The prices charged by DataProse to Client for the services listed in Schedule 1.0 will not be Increased for a period of 36 months from the Effective Date of this Agreement ("Pricing Period"). All DataProse prices are subject to Increase following this iridal Pricing Period or any subsequent Pricing Period, and upon written notice to Client. The rate of any price Increase shall not exceed 10% at the completion of any pridng period. ARTICLE 3 TERM The Initial term ofthis Agreement shall commence as ofthe Effective Date, and shall continue for three (3) years uniessterminated earlier In accordance with provisions found elsewhere in this Agreement This Agreement shall renew Itself for successive one (1) year terms unless written notice of cancellation Is received by one party from the other If a party exercises Its right to terminate the Agreement at the end of the Initial term or atthe end of any succeeding one (1) year renewal berm(s) by sending written notice of harp -renewal be the other party no later than thirty (30) days before the expiration of the current term. ARTICLE 4 POSTAGE. DataProse will require that Client maintain a permanent postage deposit In connection with this agreement, Oient shall deposit In advance with DataProse the Initial sum specified on Sdhedule 2.0 as the permanent postage deposit. The amount required to be deposited with DateProse may be changed by DataProse on a periodic basis based upon changes In Cllent's volume, postage usage, or payment history. Client will be notified In writing and in advance If the deposit Is changed. upon termination of this Agreement, DataProse shall return the deposit amount to Client after payment for all Services and postage has been paid by the Client If this Agreement is terminated due to default of Client, DataProse may apply any of Cllent's funds R holds against any sum owed by Client to DataProse upon termination of this Agreement. IF CLIENT FAILS TO MAINTAIN THE DEPOSIT AT THE ADIUSTED LEVELS, OR IF CLIENT FAILS TO MAINTAIN CURRENT STATUS OF ALL INVOICES AS DESCRIBED IN ARTICLE 2, DATAPROSE MAY IMMEDIATELY SUSPEND ITS PERFORMANCE UNDER THIS AGREEMENT AND WILL HOLD CUSTOMER'S MAIL UNTIL THE DEPOSIT IS RECEIVED. ARTICLE 5 EXPENSES. Client will reimburse DataProse for costs and expenses associated with the performance of services for Client, as requested by client, such as cost of travel, expenses associated with travel, freight, delivery service and other required supplies in connection with providing the DataProse services associated with this Agreement. ARTICLE 6 TERMINATION Client or DataProse may terminate this Agreement for an event of default defined below if such default remains uncured PCI thirty days after written notice of the default has been received from the party declaring the default (1) Failure of Client co pay for all goods and/or services as provided in this Agreement. In addition to other remedies provided by this Agreement and pursuant to law, DataPmse has the right to withhold production and mailing of any further production cycles until Clients account Is brought current. (2) Any other breach by Client or DataProse of a term or condition of this Agreement. (3) Bankruptcy or insolvency of either party. If DataProse terminates this Agreement in accordance with Artie 6 herein, or the Client terminates this Agreement for any reason otherthan those specified in Article 6 prior to satisfying Its Minimum Commltment, the Client agrees that it shall be liable. to DataProse for liquidated damages ("Liquidated Damagesl for Its early termination, It being understood and agreed to by the parties that the measure of actual damages noted would be difficult to determine. The Liquidated Damages shall be an amount equal to the product of (a) the Minimum Commitment and (b) the sum of the number of months remaining In the current term of the Agreement and the number of months that any Invoices remain unpaid by the Chent. ARTICLE 7 FORGE MA3EURE. Neither party shall be responsible for delays or failures In performance resulting from ads or occurrences beyond the reasonable control of such party, including, without limitation: fire, explosion, power failure, flood, earthquake or other ad of Cod; war, revolution, civil commotion, bemarism, or acts of public enemies; any law, order, regulation, ordinance, or requirement of any government or legal body or any representativeof any such government or legal body; or labor unrest, Including without limitation, strikes, slowdowns, picketing or boycott';. In such evert, the party affected shall be excused from such performance (other than any obligation to pay money) on a day -today basis to the extent of such Interference (and the other party shall likewise be excused from performance of Its obligations on a day -today bass to the extent such party's obligations relate to the performance so Interfered with). ARTICLE 8 CONFIDENTIALITY. DataProse agrees that any and all data, reports and documentation supplied by Client or its affitwbas or third parties on Client's behalf, which are confidential and which are dearly designated as confidential, shall be,. subject only to the disclosure required for the performance Of DataProses obligations hereunder, held In skid confidence and shall not be disclosed or otherwise disseminated by DataProse without the consent of Client ARTICLE 9 INDEMNIFICATION. Client agrees to Indemnify and hold DataProse harmless foranyand all claims from any person, firm, or entity Whatsoever that may arise In connection with Client's supplying to DataProse the data, reports or other documentation necessary to perform Its dudes under this Agreement, except that such Indemnification shall not extend to any claims that result from action by DataPKre, Its officers, employees or agents or anyone acting on behalf of DataProse if such action is In violation of one or more terns of this Agreement ARTICLE 10 WARRANTIES. DataProse shall provide all goods and/or services In a good and first class workmanlike manner Inaccordance with the terms specifically set forth In Schedule 1.0. The parties hereto agree that this Agreement is only for the production of goods and/or services. THIS WARRANTY CONSTITUTES THE ONLY WARRANTY WITH RESPECT TO THE GOODS AND SERVICES TO BE PROVIDED TO CLIENT. THE STATED WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, WRITTEN OR ORAL, STATUTORY, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE WARRANTY OF MERCHANTABILITY AND THE WARRANTY OF FITNESS FOR PARTICULAR PURPOSE. ARTICLE 11 LIMITATION OFLITY. The liability of DataProse with respect to any failure to provide the goods arid/or services as required under this Agreement shall in each ase be limited to the compensation paid to DataProse ferthe defective goods or services. DATAPROSE IS NOT LIABLE FOR INCIDENTAL Page I of 4 Client: DataProse: DATAProse® PRODUCTION AGREEMENT ■ ■ Last updated: 1.26.2005 Smarter Statements X61 Beuer Resulu OR CONSEQUENTIAL DAMAGES, INCLUDING LOST PROFIT OR INCOME, even if DataProse has been advised of the possibility of such loss or damage. This provision will not be affected by DataProse's failure to correct any defect or replace any defective work product to Client's satisfaction. Client has accepted this restriction on its right to recover consequential damages as a part of Its bargain with DataProse. Client acknowledges what DataProse charges for its goods and services would be higher If DataProse were requited to bear responsibility for Client's damages. ARTICLE 12 GOVERNING LAW AND JURISDICTION. This Agreement shall be governed and Interpreted in accordance with the laws of the state of California, without giving effect to the principles of choice of laws of such state. The parties each consentto the jurisdiction and venue of the Superior Court of Ventura County, Ventura, California, as to any matters Initiated In state court, and to the courts of the Central District of California for any matters initiated in federal court ARTICLE 13 WAIVER: MODIFICATION OFAGREEMEN7. No waiver, amendment or modification of any of the terms of this Agreement shall be valid unless In writing and signed by authorized representatives of both parties hereto. Failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of such rights, nor shall a waiver by either party in one or more Instances be construed as constituting a contlnuing waiver or as a waiver in other Instances. ARTICLE 14 NOTICE. All notices must be in writing and If not personally delivered, be sent by facsimile or by first dass mail, or by electronic mall. Notices will be effective on the day when delivered, addressed to the other party at the address show in this Agreement Either party may change the address to which notices are to be sent by giving notice of such a change to the other party. Addresses for purpose of giving notice are as follows: If to DataProse: If to Client: DataProse, Inc. City of Auburn, WA 1451 North Rice Avenue, Suite A 25 West Main Street Oxnard, CA 93030 Auburn, WA 98001-4998 Attention: Chief Executive Officer Ms. Shelley Coleman ARTICLE 15 ENTIRE AGREEMENT. This Agreement and Its exhibits constitute the final, complete, and exclusive statement of the terms of the agreement between the parties pertaining to the production of goods and services for Client by DataProse, and supercedes all prior and contemporaneous understandings or agreements of the parties. No party has been induced to enter Into this Agreement by, nor Is any party relying on, any representation or warranty outside those expressly set forth in this Agreement. ARTICLE 16 ATTORNEY FEES. In the event of any dalm, dispute or controversy arising out of or relating to this Agreement, including an action for declaratory relief, the prevailing party in such action or proceeding shall be entitled to recover Its court costs and reasonable out-of-pocket expenses not limited to taxable costs, including but not limited to phone calls, photocopies, expert witness, travel, etc., and reasonable attorney fees to be fixed by the court. Such recovery shall Induce court costs, out-of-pocket expenses and attorney fees on appeal, if any. The court shall determine who is the prevailing parry, whether or notthe dispute or controversy proceeds to final judgment If either party is reasonably required to incur such out-of-pocket expenses and attorney fees as a result of any daim arising out of or concerning this Agreement or any right or obligation derived hereunder, then the prevalli ng party shall be entitled to recover such reasonable out-of-pocket expenses and attorney fees whether or not action Is filed. ARTICLE 17 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and shall Inure to the benefit of the successors and assigns of the Wes hereto. The parties hereto execute this Agreement through their duty authorized officers, as of the day and year first written above. DATAPROSE, INC.: CLIENT: By: Glenn A. Carter, President Date: Title: Date: Schedule 1.0 — Fees for Goods & Senecas Paper Bill (Includes: data processing & simplex, 2 -color, laser Imaging, 8.5x11 at 3.5" from bottom, #10 $0.135 Per Bill/P year double window env., #9 single window reply env., folding, Inserting, presorting and delivery to USPS) $0.138 Per BIIV2nd year ;0.14 - Per Bill/3`° year Search & ViewBill (includes: data processing, pdf creation, search &access capabilities & hosting of pdf files for 3 months from creation date) -Option $0.02 Per Bill Additional Search & VlewBill Sborage beyond 3 months (As requested try dient)-Option $0.005 Per Statement Per Month VlewBiil (Includes: data processing, pdf creation) -Option $0.02 Per Bill Per $100.00 Transmisslon/CDROM $0.50 Per Address Correction $0.035 Per Impression $0.20 Per Bill $4.00 Per Bill $0.01 Per Insert (up to 2) $0.018 Per Insert (3 or more) $0.01 Per Insert (3 or more years 2 & 3 $250.00 $125.00 Per Hour Cost Per Request $75.00 Per Day Page 2 of 4 Client: DataProse: D TAProSe' PRODUCTION AGREEMENT ■ ■ last updated: 1.26.2005 Smarter Statements (0� Better Rm b Medule 2.0 — Permanent Postmae Deposit Permanent Postage Deposit (Based on two (2) months estimated volume} Actual Postage $5,350 (2 mos. Volume' .301) Schedule 3.0 — Performance Guarantee DataProse will deliver clients bills within an average of one (1) Business Day after the applicable Determination Date (as Defined herein). Such average time period will be determined by measuring the number of elapsed Business Days between each respective determination date and the date which a majority amount of the Client'sbills were mailed for consecutive three (3) month period. The "Determination Date" is the date which data is received — either via electronic transmission (FTP or Modem) or hard copy media (tape or disk) if prior to 10:00 AM, local time. If data is received after 10:00 AM, local time, or not on the date of the agreed upon production schedule, the Determination Date is the Business Day immediately following the date data Is received. Page 3 of 4 Cllent: DataProse: 107M I I ' BILLING SOLUTIONS Schedule 4.0 — Glossary of Terms Impression USPS Laser Imaging Simplex Duplex OE RE Presorting Business Day U.S. federal holiday 24x7 Additional Inserts Container Bill Laser Imaging of one side of one piece of paper. United States Postal Service PRODUCTION AG can MENT The process where the application of dry toner (Ink) Is electro statically applied and bonded to a piece of paper. Laser Imaging of one (1) side of a piece of paper only. Laser Imaging of both (2) sides of a piece of paper. Ali statements processed as duplex will be charged for duplex imaging whether or not there is information on the back page. Outer Envelope — This envelope is used as the carrier mechanism for all Information contained In a package to be mailed. Reply Envelope —This envelope is usually utilized by a customer to return information/payment requested by on organization. The act of organizing mall according to the rules and regulations defined by the USPS in order to achieve lower postage rates and Increase deliverebgity of mall. Any day In which the USPS as well as the U.S. Federal Reserve are open for business. All Holidays as defined by the U.S. federal Reserve. - 24 hours a day, 7 days a week. Any item requested to be placed Into the mall container above and beyond (a) the hill and (b) the RE . One complete piece of mail packaged Into one OE. Data and other Information pertaining to one (1) account number and usually in reference to one customer Page 4 of 4 Client: DataProse: