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HomeMy WebLinkAbout2007 07 23 Consent 209 Contract with Advanced Xerographics Imaging Systems, Inc. COMMISSION AGENDA ITEM 209 CONSENT X INFORMATIONAL PUBLIC HEARING REGULAR July 23, 2007 Meeting MGR ;r/fDEPT @ Authorization REQUEST: The Finance Department Is Requesting Authorization From The City Commission To Piggyback Off Of The City Of Melbourne, Florida's Contract With Advanced Xerographies Imaging Systems (AXIS), Inc. For Utility Bill Printing Services. PURPOSE: The purpose of this Agenda item is to request authorization to piggyback off of the City of Melbourne, Florida's contract with AXIS, Inc. for utility bill printing services at a cost of $0.18342 per bill printed. This would be payable from the Utility Billing Division of the Finance Department and reimbursed by the Water and Sewer Utility Fund. CONSIDERATIONS: The City has outsourced the meter reading function in the Utility Division of the Finance Department since July 2002 to Severn Trent Environmental Services, Inc. It is the desire of the City to outsource the printing of the weekly utility bills. Each week approximately 12 hours are spent printing, stuffing and mailing utility bills. Problems with the stuffing machine have become an almost weekly occurrence whereby the equipment maintenance company must correct the problem. There have also been problems when multiple inserts have been included in the utility bill envelope. Outsourcing this function would allow the contractor to handle maintenance issues with their stuffing equipment, enable the City to insert multiple stuffers into the utility bill, reduce the volume printed on the City's printers each week, utilize current staff in a more efficient manner for customer service issues and allow current department staff to serve an ever-increasing customer base. AXIS currently contracts with all Cities in Seminole County, except for Winter Springs, for the outsourcing of utility bill printing services. The City of Melbourne's contract with AXIS is valid through May 31, 2008, at which time the City will either have to prepare a bid for these services or piggyback off another contract. FUNDING: Funding would be payable from the Utility Billing Division of the Finance Department (in the General Fund) at a cost of $0.18432 per utility bill printed under the contractual services line code (1360-53188). The General Fund will be reimbursed by the Water and Sewer Utility Fund for 100% of the fees charged. The contract will be for approximately $30,815 per year, based on our estimated customer count. Funding is available in the FY Consent Agenda Item 209 July 23, 2007 Page 2 of2 2007 budget for the approximately 4 weeks that may get printed by AXIS after setup and testing takes place. However, the FY 2008 Final Budget document that will be presented in September 2007 will need to be revised to reflect this contract. RECOMMENDATION: It is recommended that the authorization be granted to piggyback off of the City of Melbourne, Florida's Contract #02-024-0-2003 with Advanced Xerographies Imaging Systems (AXIS), Inc. for utility bill printing services at a cost of $0.18342 per utility bill through May 31, 2008. ATTACHMENTS: 1. City of Melbourne Contract #02-024-0-2003 COMMISSION ACTION: / ",-----" .Oty of Melbourne AMENDMENT 2 TO SERVICE AGREEMENT Utility Billing Services CONTRACT NO. (02-024-0-2003) '\ This Amendment to the Service Agreement for Utility Bilfing Services is made and entered Into as of March 17, 2006, between the City of Melbourne and Advances Xerographies Imaging Systems (AXIS), Inc; Orlando, Florida. The Agreement, entered into on May 13, 2003, is hereby amended to renewthe term of the contract, for tvv~nly-four (24) months, commencing on June 1, 2006 and ending on May 31, 2008. The Agreement, is also revisedto chang,e pri.cing: · Items B-1, B-2, B-3, & B-4 combIned into new pricing structure: :Pee. c..yCLb 1tv3,000 Utility notIces 3,001 N 9,000 Utility notices 9,001 N 11,000 Utility notices 11,001 tv 15,000 Utility notices $.19637 each $.15580- each $.1111t. each $ .10663 each · Item B-5, #9 Remittance window envelope - new price $.02762 · Minimum flat rate shop charge of $300 applies. This charge Is not In addition to regular contract prices. The parties hereto duly execute this Amendmentto become effp.ctIve 'as of June 1, 2006. '; em OF MELBOURNE 900 East Strawbridge Avenue Melboume, FL 32901 AXIS, INC David N. McCue, Purchasing Manager ~~d (Signature) 3}" l1-00h (Date) By: ~ f, ~ ~""'w kl""'.J. d1~ (Name tle) . ~ d~~ (Signature) (Date) City of Melbourne SERVICE AGREEMENT (02-024-0-2003) Utility Billlne Services Award Date: Awarded by Melbourne City Council on AprilS, 2003. nus Agreement is entered into this tJ +'- day of ~ ' for the period June 1.2003 through May 31. 2004 I by and between the City of Melbourne, Florida, hereinafter referred to as the City; and Advanced Xerographies Imaging Svstems (AXIS). rnc: 6851 TPC Drive: Orlando FInnell! 3282.).-S141. herein after referred to as the Contractor. NOW THEREFORE, the Parties do mutually agree that: I. Scope of Senrice: Contractor shall furnish all labor, materials, equipment, facilities, and services to provide CASS certificlltion, laser printing, and mailing services to the City of Melbourne, in accordance with General Processinl! Assumptions, for the prices listed below: Item Description Unit Unil Cusl A Non-recurring fees A-I Initial development, data programming, data layout, form design, and envelope design A-2 Additional customer requested data programming or set-up changes Swu $375.00 perlHr $ 75.00 B Statement MaterialslProcessing Charges B-1 First page Each $.02961 B-2 Postal optimization Each $.03722 B-3 Uncoated long-grain white paper stock, 8 Yz' xii ", Each $.02212 60 Ib offset or 24 lb bond, with blue printed City logo B-4 Single window mailing envelope, #10, 241b, Each $.02216 with printed information in blue ink B-5 Remittance closed-face envelope, #9, 201b, Each $.01781 with printed information in hlue ink* Totallf-fateria[s/Proce~'~'ing Cost: Each $.12892 * Alternate #9 envelope with red color-block/or accounts with "past-due" account balance C Optional Charges C-l Additional inserted pages C-2 Variable highlight laser printing C-3 CD rom archival C-4 Color remittance closed-face envelope, #9, 201h, with printed information, for optional "past~due" identification Bach $.01000 Each $.00500 Each $.01500 Each $.01997 2. Performance: Perfonnance under this Agreement shall be in accordance with the Contractors RFP response, dated March 5, 2003 and General Processin~ Assumptions as detailed below: A. Contractor shall handle the laser printing and mailing of the City's utility bills. The volume is approximately 12.750 bills per week or 51.000 bills per month. B. Contractor will receive data for the utility bills from the City four (4) times per month. The City will supply a schedule thirty (30) days prior to each month. The City reserves the right to change the billing date and/or the number ofbilUng cycles, as necessary. C. Contractor will receive data in a fonnat mutually detennined by both the Contractor and the City, via FTP transmission. A record layout will be supplied by the City. All data will be supplied in separate fields and the City shall compress the file using compression software (e.g. WINZIP). D. Contractor shall simplex (one side) la<;er print the data on 1/1 color pre-printed 8 WI x 11'. 60# offset or 24# bond white paper. The paper shall hav~ a horizontal perforation and shall be "long-grain". The Contractor shall supply the paper. . E. Contractor shall fold and insert the utility bill(s) into #10 white, single window envelope. The Contractor shall insert a #9 white courtesy reply envelope (CRE) for utility bills requiring a mailtX1 r~mittance. The #9 eRE will have a red color-block for utility bills designated as ''past due". Utility bills that are designed for ACH payments will not require. the #9 CRE. Both the #10 and #9 envelope will be pre- printed on the front in blue ink and shall be supplied by the Contractor. F. Contractor shall set up the Utility Bill fonn and program to include scan lines for multiple page matching (intelligent inserting). The City will provide the matching criteria for the multiple page programming. G. There may be periodic requests for inserts to be mailed with the utility bills. The City shall supply the inserts to the Contractor at least one week prior to the mailing. The City will provide clear instructions with the insert detailing which print run (cycle) requires the insert. All inserts supplied must be within the specifications supplied by the Contractor to meet the machine requirements for automated inserting. H. Contractor is required to perfonn special progranuning on the data that the City supplies. Some of the programming that is required is: (1) Process the files for CASS certification (delivery point barcode). (2) Contractor creation of a 'keyline" that will appear above the name and address block for quality control purposes.. (3) Three (3) of nine (9) barcode for return payment processing (if applicable). (4) Special message to be printed on the notice for each cycle (if applicable). '2 / ,../ 00. // 4. if/ 5. ;;!~ A ~;~1v ~~. j 1\ 3. .......... I. Contractor snaIl supply all printouts to the postal s.ervice to document the postage discounts where applicable (e.g. zip distribution reports, CASS certificates, and pre~ sort summary reports). J. Contractor shall provide a postage report to the City for each billing run. K. Each job will be sorted and bundled to the lowest qualifying First Class rate for postal discounts (USPS CASS certified). NCOA and "MOVE UPDATE" requirements are the responsibility ofthe City. L. Contractor will develop operation documents for printing as well as inserting and mailing; define procedures for quality control; and develop all the automated controls that will be necessary to accurately process the data files when they are received by the Contractor. M. Any "no-mail" notices, accounts with "bad" addresses or unused inserts will be delivered back to the City at no extra charge. N. The City will pre-pay two (2) weeks of estimated postage to the Contractor, to be held in reserve for the duration of the contrllCt. Thc Contractor shall invoice tbe City for postage applicable to each billing run. Payment: Blanket purchase orders will be issued by the using departments/divisions for specific periods of time to cover invoices for contract serviCe performed for the City of Melbourne. The Contractor shall be paid within thirty (30) calendar days after receipt of an ilemized invoice from the Contractor and acceptance of the service/work by the City, less any deductions or assessments. /'.. 3 .. Renewal of Aereement: The Agreement may be renewed for two (2) addition~ty- four (24) month successive terms, at the same rate(s), by mutual agreement of both parties. Terms and Conditions: Delivery and Acceptance Receipt of services/supplies shall not constitute acceptance. Final acceptance and authorization of payment shall be given only after thorough inspection indicates that the services/supplies delivered meet the specifications, terms WId conditions. Should the services/supplies differ in any respect from the specifications, payment will be withheld until such time as the Contractor takes necessary corrective action. If the proposed corrective action is not acceptable to the City or the Contractor, fmal acceptance of the services/supplies may be refused, in which case the City shall not be liable for payment. Itemized invoices must be submitted for each bill run to Accounts Payable. The City must approve all invoices prior to payment. Time is ofthe essence in this contract, and failure to deliver as specified within the time period required shall be considered a default. In the case of default, the City may procure the services/supplies from other sources and hold the Contractor responsible for all costs occasioned thereby and may immediately cancel the agreement. 3 B. Non-Appttn>riation of Funds . In the event sufficient budget funds are not available for a new fiscal period, the City shall notify the Contractor of such occurrence and the contract shall tenninate on the last day ofthe current fiscal period, without any penalty or expense to the City of any kind whatsoever. C. Indemnification As respects acts, errors, or omissions in the performance of professional service, the Contractor agrees to pay on behalfofand hold harmless, indemnify, and defend the City of Melbourne, its officers, elected officials, and employees from and against any and all claims, action, loss, demands, defense costs, liability or consequential damnges of nny kind or nature (including, but 110t by way oflimilation, attorneys' fees, and court costs) arising out of, or incidental to, the performance of the contract to be executed or service performed thereunder. D. Assiflnment The Contractor, hislher assigns or representative, shall not enter into any agreements with third parties to delegate any or all of the responsibilities or rights herein set forth without prior written approval of the City. E. Independent Contractor The Contractor shall perfonn the conditions of this Agreement as an independent contractor and nothing contained herein shall be construed to be inconsistent with this relationship of status. Nothing in this Agreement shall be, in anyway, construed. to constitute the Contractor or any of hislher agents or his/her employees as the agent, employee orrepresentative of the City. F. Insurance . The Contractor agrees to furnish a certificate of insurance naming the City of Melbourne as an additional insurance with General Liabilitv of$l ,000,000 combined single limit per occurrence for bodily injury, personal injury, and property damage; Professional Liability with $1,000,000 combined single limit per occurrence; Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage; and Workers' Compensation and Emplovers Liability limits of$l,OOO,OOO per accident. G. TermlnaJi()u {QT. Convenience The performance of service under the contract may be terminated by the City in whole or in part whenever the City determines that termination is in the City's best interest. Any such termination shall be effected by thc delivery to the Contractor of a written notice of termination at least fifteen (15) days before the date of termination. H. Cancellation of Contract If the Contractor, upon the award of any agreement, fails to satisfactorily perfonn any condition ofthe agreement, the City may in its sole discretion within ten (10) calendar days, cancel the agreement. 4 WITNESS these signatures: CITY OF MELBOURNE 900 East Strawbridge A venue Melbourne, Florida 32901 Jt~ City Manager Attest: (Seal) By: ~Uu '-i-- ~ Catil) <f:r,!OI, Cit) Clerk Catherine L. Baker Acting City Clerk Distribution: DepartmentJI1ivision Purchasing AXIS, INC /1h.,(AJ f ~ /-:JAr~__ ~ /ila-.r Name/title of authorized representative ~ (Signature) ?/Ub'1 (Date) Attest or Witness: By ()~;}~4 5