HomeMy WebLinkAboutPinnacle Data Systems, LLC Service Agreement - 2016 11 18 D
PINNACLE
DATA SYSTEMS
DOCUMENT OUTPUT SERVICE AGREEMENT
This SERVICE AGREEMENT ("Agreement"), is made and entered into this _day of , 2016, by and
between, The City of Winter Springs, a Florida Municipal Corporation, whose address is 1126 East State
Road 434,Winter Springs, Florida 32708("City"), and Pinnacle Data Systems, L.L.C, a foreign limited liability
company, whose address is 350 Automation Way, Birmingham, Alabama 35210 ("PDS"), sets forth the
terms and conditions under which PDS will provide services ("Services") to City as set forth in the Exhibit(s)
hereto.
WHEREAS, the City of Winter Springs advertised a Request for Proposals for outside services for bill
printing, inserting and mailing services for the City of Winter Springs Utility Billing; and
WHEREAS, Pinnacle submitted a response to the City's Request for Proposals; and
WHEREAS, PDS represents and warrants to City that it has the personnel, tools, materials, and
experience to provide the services as provided herein.
NOW THEREFORE, in consideration of the provisions contained in this Agreement, and other good
and valuable consideration in which the parties acknowledge,the parties agree as follows:
1. TERM OF AGREEMENT. This Agreement shall be effective on the date last signed by City or
PDS and shall remain in effect for two (2) years (the "Initial Term"). This Agreement may be extended for
successive twelve (12)-month periods ("Extension Period") by mutual written agreement of the parties if
executed in advance of the expiration of the Agreement.
2. SERVICES. PDS shall provide to the City all services as described in Exhibit A, Statement of
Work/Scope of Services ("Services"), attached hereto and fully incorporated herein by this reference..
3. INVOICES: CHARGES. PDS shall provide to the City a monthly invoice broken down by each
data/print file or cycle sent by the City. The invoice shall detail the number of bills processed and the amount
of postage paid for each data/print file along with any other itemized charges. The City shall provide
payment in accordance with the Local Government Prompt Payment Act.
4. CONFIDENTIALITY. PDS agrees that all confidential material received from City is proprietary
to City, and PDS shall not copy, duplicate, disclose or otherwise use any such material and/or information,
except in accordance with the Public Records paragraph 18 herein.
5. INDEMNIFICATION AND HOLD HARMLESS. PDS shall, to the fullest extent permitted by law,
indemnify and hold harmless the City and its employees, officers, and attorneys against all claims, losses,
damages, personal injuries (including but not limited to death), or liability (including reasonable attorney's
fees), directly or indirectly arising from the negligent acts, errors, omissions, intentional or otherwise, arising
out of or resulting from: (i) PDS's performance of any Services provided under this Agreement; (ii) any third
party claim that the Services performed by PDS under this Agreement infringe or violate any intellectual
property right of any person; and (iii) any breach of any term and condition of this Agreement.
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The indemnification provided herein shall obligate PDS to defend at its own expense or to provide for such
defense, at the option of City of all claims of liability and all suits and actions of every name and description
that may be brought against the City or its employees, officers, and attorneys which may result from the
Services under this Agreement whether the Services are performed by PDS or anyone directly or indirectly
employed by PDS. In all events City shall be permitted to choose legal counsel of its sole choice, the fees for
which shall be reasonable and subject to and included with this indemnification. This section 5 shall survive
termination of this Agreement.
6. SERVICE FEES. City agrees to pay the fees for Services charged by PDS as provided for in
Exhibit B, "Pricing,"attached hereto and fully incorporated herein by this reference.
7. TERMINATION. This Agreement may be terminated by City or PDS provided either party gives
ninety(90)calendar days written notice of such termination.
8. MODIFICATIONS, AMENDMENTS, AND WAIVERS. This Agreement, including Exhibits A, B, C ,
and D, may not be modified or amended, or any provision thereof waived, except in writing signed by all the
parties to this Agreement hereto. Failure of City to insist upon performance within any time period or upon a
proper level or quality of performance shall not act as a waiver of City's right to later claim a failure to
perform by PDS.
9. EXCUSABLE DELAY. Any delays in or failure of performance by PDS under this Agreement
shall not be considered a breach if and to the extent such delay or failure is caused by occurrences or
circumstances beyond reasonable control of PDS, including, but not limited to, acts of God, embargoes,
strikes, riots,wars or other military action, civil disorder or sabotage.
10. ENTIRE AGREEMENT. This Agreement, including Exhibits A, B, C, and D (PDS's proposal,
attached hereto and fully incorporated herein by this reference) constitutes the entire and integrated
understanding and agreement between the parties with respect to the subject matter hereof, and
supersedes all prior negotiations, representations, or Agreements, either oral or written, and all such matters
shall be deemed merged into this Agreement.
11. ASSIGNMENT: SUBCONTRACTING. Unless otherwise specifically required by this Agreement,
PDS shall not assign, sublet, or transfer any rights or Services under or interest in (including, but without
limitations, moneys that may become due) this Agreement without the written consent of City, except if any
assignment, sublet, or transfer is mandated by law or the effect of this limitation may be restricted by law.
Unless specifically stated to the contrary in any written consent to any assignment, no assignment will
release or discharge the assignor from any duty or responsibility under this Agreement. Further, PDS shall
subcontract no portion or all portions of the Services without the written consent of City. Nothing under this
Agreement shall be construed to give any rights or benefits in this Agreement to anyone other than City and
PDS, and all duties and responsibilities under this Agreement will be for the sole and exclusive benefit of City
and PDS and not for the benefit of any other party.
12. NOTICES.
All projects, notices, demands, requests, instructions, approvals, and claims shall be in writing. All notices of
any type shall be given by U.S. mail or by hand delivery to an individual authorized to receive mail for the
below listed individuals, all to the following individuals at the following locations:
TO THE CITY:
Kevin L. Smith
City Manager
City of Winter Springs
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P L11
1126 East State Road 434
Winter Springs, Florida 32708-2799
407-327-1800 (Phone)
407-327-4753 (Fax)
TO PDS:
Name: Mitch Anderson
Title: Chief Revenue Officer
350 Automation Way
Birmingham,Alabama 35210
Phone: 205 307 6879
Fax: 205 307 6834
Notice shall be deemed to have been given and received on the date the notice is physically received if given
by hand delivery, or if notice is given by first class U.S. mail, postage prepaid,then notice shall be deemed to
have been given upon the date said notice was deposited in the U.S. Mail addressed in the manner set forth
above. Any party hereto by giving notice in the manner set forth may unilaterally change the name of the
person to whom notice is to be given or the address at which notice is to be received.
13. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the benefit
of all the parties to this Agreement and their successors and assigns.
14. GOVERNING LAW: VENUE. This Agreement shall be governed by and be construed in
accordance with the laws of the State of Florida. Venue of all disputes shall be properly placed in Seminole
County, Florida. The parties agree that the Agreement was consummated in Seminole County, and the site
of the Services is Seminole County. If any dispute concerning this Contract arises under Federal law, the
venue will be Orlando, Florida.
15. SEVERABILITY. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall be ineffective to the extent of such prohibition or unenforceability, but all the remaining
provisions of this Agreement shall remain valid and in full force and effect.
16. COUNTERPARTS. This Agreement may be executed in any number of counterparts each of
which shall be an original with the same effect as if the signatures thereto and hereto were upon the same
instrument.
17. PUBLIC RECORD. Pursuant to Section 119.0701, Florida Statutes and other applicable
public records laws, PDS agrees that any records, documents, transactions, writings, papers, letters,
computerized information and programs, maps, books, audio or video tapes, films, photographs, data
processing software, writings or other material(s), regardless of the physical form, characteristics, or means
of transmission, of PDS related, directly or indirectly, to the services provided to the City under this
Agreement and made or received pursuant to law or ordinance or in connection with the transaction of
official business by the City, may be deemed to be a public record, whether in the possession or control of
the City or PDS. Said records, documents, transactions, writings, papers, letters, computerized information
and programs, maps, books, audio or video tapes, films, photographs, data processing software, writings or
other material(s), regardless of the physical form, characteristics, or means of transmission of PDS are
subject to the provisions of Chapter 119, Florida Statutes, and may not be destroyed without the specific
written approval of the City's designated custodian of public records.
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IF PDS HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO PDS'S
DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE CUSTODIAN OF PUBLIC
RECORDS, THE CITY CLERK, AT (407) 327-5955, CITYCLERKDEPARTMENT @WINTERSPRINGSFL.ORG,
1126 EAST STATE ROAD 434, FLORIDA 32708.
PDS is required to and agrees to comply with public records laws. PDS shall keep and maintain all public
records required by the City to perform the services as agreed to herein. PDS shall provide the City, upon
request from the City Clerk, copies of the requested records or allow the records to be inspected or copied
within a reasonable time at a cost that does not exceed the cost provided by law. PDS shall ensure that
public records that are exempt or confidential and exempt from public records disclosure requirements are
not disclosed except as authorized by law for the duration of the Agreement term. Upon completion of the
Agreement, PDS shall transfer to the City, at no cost, all public records in possession of PDS, provided the
transfer is requested in writing by the City Clerk. Upon such transfer, PDS shall destroy any duplicate public
records that are exempt or confidential and exempt from public records disclosure requirements. However, if
the City Clerk does not request that the public records be transferred, PDS shall continue to keep and
maintain the public records upon completion of the Agreement and shall meet all applicable requirements
for retaining public records. All records stored electronically must be provided to the City, upon request from
the City Clerk, in a format that is compatible with the information technology systems of the City. Should the
City not possess public records relating to this Agreement which are requested to be inspected or copied by
the City or any other person, the City shall immediately notify PDS of the request and PDS shall then provide
such records to the City or allow the records to be inspected or copied within a reasonable time. If PDS does
not comply with a public records request, the City may enforce this Section to the extent permitted by law.
PDS acknowledges that if PDS does not provide the public records to the City within a reasonable time, PDS
may be subject to penalties under Section 119.10, Florida Statutes. PDS acknowledges that if a civil action
is filed against PDS to compel production of public records relating to this Agreement, the court may assess
and award against PDS the reasonable costs of enforcement, including reasonable attorney fees. All public
records in connection with this Agreement shall, at any and all reasonable times during the normal business
hours of PDS, be open and freely exhibited to the City for the purpose of examination, audit, or otherwise.
Failure by PDS to grant such public access and comply with public records laws and/or requests shall be
grounds for immediate unilateral cancellation of this Agreement by the City upon delivery of a written notice
of cancellation. If PDS fails to comply with this Section, and the City must enforce this Section, or the City
suffers a third party award of attorney's fees and/or damages for violating Chapter 119, Florida Statutes,
due to PDS's failure to comply with this Section, the City shall collect from PDS prevailing party attorney's
fees and costs, and any damages incurred by the City, for enforcing this Section against PDS. And, if
applicable,the City shall also be entitled to reimbursement of all attorneys'fees and damages which the City
had to pay a third party because of PDS's failure to comply with this Section. The terms and conditions set
forth in this Section shall survive the termination of this Agreement.
18. SOVEREIGN IMMUNITY. The City intends to avail itself of the benefits of Section 768.28,
Florida Statutes and any other statutes and common law governing sovereign immunity to the fullest extent
possible. Neither this provision nor any other provision of this Agreement shall be construed as a waiver of
the City's right to sovereign immunity under Section 768.28, Florida Statutes, or other limitations imposed
on the City's potential liability under state or federal law. PDS agrees that City shall not be liable under this
Agreement for punitive damages or interest for the period before judgment. Further, City shall not be liable
for any claim or judgment, or portion thereof, to any one person for over two hundred thousand dollars
($200,000.00), or any claim or judgment, or portion thereof, which, when totaled with all other claims or
judgments paid by the State or its agencies and subdivisions arising out of the same incident or occurrence,
exceeds three hundred thousand dollars ($300,000.00). Nothing in this Agreement is intended to inure to
the benefit of any third party for the purpose of allowing any claim which would otherwise be barred under
the doctrine of sovereign immunity or by operation of law. This paragraph 18.0 shall survive termination of
this Agreement.
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19. INTERPRETATION. The parties have participated in the drafting of all parts of this Agreement,
and have each had an opportunity to review this Agreement with legal counsel. As a result, it is the intent of
the parties that no portion of this Agreement shall be interpreted more harshly against either of the parties
as the drafter.
20.0 FURTHER ASSURANCES. From and after the execution of this Agreement, the Contractor
shall fully cooperate with the City and perform any further act(s) and execute and deliver any further
documents which may be necessary or desirable in order to carry out the purposes and intentions of this
Agreement.
21.0 ATTORNEY'S FEES. In the event any litigation or controversy arises out of or in connection
with the parties hereto, each party shall bear their own costs and attorney's fees.
22.0 STANDARD OF CARE. In performing its Services, the Contractor will use that degree of care
and skill ordinarily exercised, under similar circumstances by reputable members of its profession practicing
in the same or similar locality.
Pinnacle Data tems, L.L. --City of Winter Springs
By: By: ---
Name: r't cry" Nam . Kevin L Smith
r
Title: >1 �� Title: City Manager
Date: l 0�� J Date:
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EXHIBIT A—STATEMENT OF WORK/SCOPE OF SERVICES
A. General Scope and Requirements
1. PDS shall print, insert and mail approximately 14,000 plus accounts per month, divided into
4 billing cycles. PDS will provide a #10 double window envelope and #9 window remit.
2. PDS shall mail all statements within 24 hours of receipt of data.
3. PDS shall design, in conjunction with the City, a two-color(black with a second variable laser
highlight color of blue),two-sided bill form that is 8 1/2"x 11" in size.The back of the bill shall
be a preprint of pertinent information, as provided for or as approved by the City in writing,
for customer reference. The bill design shall include an appropriate scan line for remittance
processing, a message area (variable data text messages shall be printed in the highlight
color ink), different sized fonts to enhance readability, a bar chart and a City logo. PDS shall
purchase and maintain a sufficient supply of billing forms and envelopes to ensure an
uninterrupted supply for printing requirements.
4. PDS shall notify the City in writing, and receive approval of any required changes to forms or
envelopes prior to implementation.
5. For additional mailing inserts, PDS agrees to receive a drop shipment of the inserts
necessary to supply for a time frame requested by the City. At the City's option, the City shall
either work with PDS to design the inserts to conform to the specifications required for
successful insertion by the equipment used by the PDS, or, the City shall provide PDS with a
rough design of additional forms to be inserted with the bills. PDS shall render a final design
which shall be approved by the City prior to the use thereof. PDS shall print and insert for a
time frame requested by the City.
6. PDS shall provide a secure File Transfer Protocol (FTP)site for the uploading of data files.
7. All data/address files shall be CASS (Coding Accuracy Support System)/PAVE (Presort
Accuracy, Validation and Evaluation), using certified postal software and barcode presorted
to the lowest rate of automation.
8. Bills shall have a perforated remittance bill stub for return
9. All bills shall print full color.
10. All bills shall have latest IMB bar code and/or optional scan line on return stub.
11. PDS shall insert return envelopes with all bills, except as otherwise provided herein.
12. PDS shall maintain and utilize the ability to print, fold and stuff multiple pages, as well as the
ability to distinguish unique types of bills, unique classes of services, and notices. PDS shall
maintain the ability to segment inserts by unique types with the ability to household
merge/purge multiple bills into the same envelope. PDS shall maintain the ability to identify
unique customer coding, from the data transmission, of customers not requiring a return
envelope.
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13. PDS shall use camera technology on inserting equipment to ensure mail piece integrity.
Cameras shall read/check various fields on the mail piece verifying mail piece sequence,
postage, envelope identification, and outgoing address. The camera system shall produce
verification reports of all mail pieces inserted.
14. PDS shall offer customized insert creation and print services to meet the City's specific
needs, while handling all the inventory and logistics. PDS shall design all such inserts to
comply with its high-speed, automated production environment and USPS (United States
Postal Service)weight limits.
B. Computer Related Processing Requirements
1. Utility data/print files will be transferred to PDS via FTP. It will be the responsibility of PDS to
assist the Utility during the configuration process of the FTP link. The City will transmit 8
data/print files to PDS each month. The City uses New World Systems utility billing software.
2. Currently the City bills four (4) cycles of approximately 3,500 bills per cycle and as such will
transmit eight(8) data/print files to PDS each month. Each one of these data/print files will
be treated as a separate billing, and each shall be subject to the requirements set forth
herein.
3. Before release of the bills for print, PDS will transmit a PDF file of the Bill Run to the City for a
Quality Assurance review. The City will direct PDS to release the print only after the City is
satisfied with the quality of the bill run.
4. PDS shall develop operation documents for printing, inserting and mailing. PDS shall define
procedures for quality control and shall also develop all automated controls necessary to
accurately process the data files when they are received.
5. Any "No-mail" notices, accounts with "bad" addresses or unused inserts will be delivered
back to the City.
6. The City is always seeking ways to be more efficient and to position itself for the future
utilizing the latest technology to meet the needs of the ever-growing variable data
applications. As is relevant, PDS should comment on ancillary services that it is able to
perform, for future use, such as on-line services and electronic bill presentment, along with
other existing or new features and offerings, etc.
C. Performance Requirements
1. PDS will print, insert and mail all water bills for the City within 24 hours after successful
receipt of the data/print file for the City.
2. PDS shall provide the City with a document, or another method confirmed as acceptable to
the City, indicating the number of bills received electronically for printing, as well as the
postage breakdown as USPS Automation Qualified starting at First Class 5-Digit Rate of the
billing cycle prior to the mailing of bills
3. PDS must be ready to accept the first production data/print file on or before November 26,
2016.
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F, M,
D. Record Retention and Data Backup
1. PDS shall retain the City billing data/print file until PDS receives the next data/print file. PDS
shall comment on daily backup rotation and storage of data in the proposal package.
E. Postage Rates
1. All postage costs will be incurred initially by PDS and billed at cost to the City as part of the
monthly bill. The City will allow PDS to set up an escrow account for postage, if needed. PDS
shall provide to the City a monthly manifest detailing the total bills printed, mailed and the
dollars billed for postage services. PDS shall mail the bills starting at the USPS 5-Digit Rate
(or lowest) as qualifies to obtain the largest postage discounts. PDS shall have postal
software in-house to process and sort. PDS must CASS certified each cycle.
2. Bar coding, arranging and sorting of the mail shall be utilized by PDS to qualify for the lowest
postage charges consistent with USPS standards. It is required that PDS have an on-site
Intelligent Mail Barcode [IMB] system for verifying mail quality prior to entry into the USPS
distribution system. The mail shall be delivered to the USPS within 24 hours of receipt of FTP
file(s)from the City.
3. PDS must be Optional Procedures Certified by the USPS, which shall allow for one (1) and
two(2)ounce mail pieces to go into the same mail-stream to maximize the postal discounts.
4. PDS shall make periodic recommendations for improving mail delivery, postage savings and
reducing mailing costs.
F. Paper and Print Quality and Requirements
1. Printing shall be laser quality with a resolution of at least 600 x 600 DPI. The paper should
be of a brightness factor to allow for a contrast ratio of paper to print to ensure reliable OCR
(Optical Character Recognition)scanning.
2. Bills shall be printed on 8 1/2" x 11", 24# bond, with perforation. PDS shall have the
capability to print a bar chart displaying the customer's usage over a 12-month period.
3. PDS shall have the ability to print variable messages and data on the bills by utilizing
highlight color text when requested.
4. Envelopes shall be a double window (#10) that will allow for the outgoing address on the
bottom, with the return address and City's logo in the top window. Being that the City is
migrating from a different looking envelope statement, PDS shall supply (at least on a
temporary basis of no less than 3 months) an envelope with the following wording on the on
the envelope's exterior: "UTILITY BILL ENCLOSED". Payment stubs shall be designed with
the City's payment address revealed when inserted into the return window envelopes
provided by PDS. The appropriate size return window envelopes shall be security tinted on
the inside.
5. The price per piece (bill) as provided by PDS is all-inclusive for the production of the billing
statement. Such price shall include the processing, laser printing in highlight color on form,
folding, inserting, remittance envelope,sorting, and delivery of bills to the USPS.
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G. Customer Service and Quality Controls
1. The customer service organizational structure for the services, including the chain of
command for problem resolution, shall be as described in the proposal submitted by PDS in
response to the City's RFP.
2. The quality assurance and control check points within the printing and inserting operation
shall be as described in the proposal submitted by PDS in response to the City's RFP.
3. Data formatting on the customer bill/statement and return envelopes shall be in accordance
with the requirements of the U.S. Postal Service. Any data receipt problems, print or insert
errors shall be reported to the City immediately upon recognition of such errors.
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EXHIBIT B
Pricing
PRICING FOR BILL PRINTING, INSERTING, AND MAILING SERVICES
FOR THE CITY OF WINTER SPRINGS UTILITY BILLING
Base Price
0.095 Unit price per statement, water bill processed (includes, processing, sorting, printing of
statement in highlight color laser, form, folding, inserting, mailing envelope, return envelope and
delivery to USPS).
$ 0.005 (insertion charge) Charge for additional bill inserts
0.376 Average postage per piece, consider postal sort starting at 5-Digit Rate as qualifies.
(realizing that cost will be estimated, provide best estimate per statement)
$ No Charge Programming fee per hour for initial bill layout set-up. -
$ 125.00 Programming fee per hour for changes requested by the City after initial bill layout set-up.
(PDS and the City shall confirm mutual understanding in writing once initial bill layout set-up has
been finalized such that the City is on notice of programming fees to be charged, prior to incurring
any such charges; no programming charges shall be incurred by the City unless written notice shall
be confirmed pursuant to this provision).
Additional services are offered by PDS as follows:
PDF images: $0.015 per image
Electronic Presentment
Maintenance: $300.00 per month
Email bills: $0.10 per email
Hosting: $0.015 per image
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EXHIBIT C
SPECIAL TERMS AND CONDITIONS
1. POSTAGE. A postage deposit equal to TEN THOUSAND AND FOUR HUNDRED DOLLARS AND
ZERO CENTS ($10,400) will be required prior to the commencement of the service or postage must be
prepaid. This deposit will be retained and utilized during the term of the Agreement and returned to City at
such time that services are no longer provided. Should postage costs increase during the term of this
contract the price increase will be passed through to and paid by the City.
2. MEDIA. If data supplied by City via magnetic tape, cartridge or telecommunications is not
totally machine readable or erroneous, City shall be required to pay for all output produced and postage or
freight charges incurred with regard thereto. City will be billed at the rates agreed to for programming efforts
required to correct or bypass errors or omissions in City-supplied data.
3. WARRANTY. PDS shall use due care in processing all work submitted by the City. PDS shall
rerun or credit, at its own expense, any job which cannot be used in the normal course of business. If any
computer tapes furnished by City are damaged due to PDS's equipment or process, PDS shall replace such
tapes at its own expense. PDS shall not be liable for the loss of any information on City's tapes and shall not
be responsible in any manner for errors in data furnished by City.
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