Resolution No. 2011-068RESOLUTION NO. 2011-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
LETTER OF AGREEMENT BY AND BETWEEN THE CITY OF
VERNON AND UNITED BUSINESS MAIL FOR MAIL METERING
SERVICES
WHEREAS, the City desires to obtain the services of a
qualified vendor to provide mail metering services to the City (the
"Services"); and
WHEREAS, the Director of Business Services has determined
that United Business. Mail ("UBM") is qualified and capable of
providing the Services; and
WHEREAS, by memo dated April 6, 2011, the Director of
Business Services recommends the City enter into a letter of agreement
with UBM setting forth the terms and conditions under which UBM will
perform the Work (the "Agreement").
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the Letter of Agreement with United Business Mail, a copy of
which is attached hereto as Exhibit A.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for,
and on behalf of, the City of Vernon and the City Clerk, or Deputy
City Clerk, is hereby authorized to attest thereto.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to take whatever
actions are deemed necessary or desirable for the purpose of
implementing and carrying out the purposes of this Resolution and the
transactions herein approved or authorized.
SECTION 5: The City Council of the City of Vernon hereby
directs the City Clerk, or the City Clerk's designee, to send a fully
executed Agreement to:
United Business Mail
Attention: Erik Hansen, Business Development Manager
4551 Loma Vista Avenue
Vernon, CA 90058
SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the,City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 19th day of April, 2011.
24.E
Name: Hilario Gonzales
AT'dST:
Title: Mayor /
2
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution
No. 2011-68, was duly passed, approved and adopted by the City Council
of the City of Vernon at a regular meeting of the City Council duly
held.on Tuesday, April 19, 2011, and thereafter was duly signed by the
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this 21� day of April, 2011, at Vernon, California.
(SEAL)
r
Willard G. a agu City Clerk
3
EXHIBIT A
Letter of Acireement
Vo ume: Mail volume will be approximately 5,000 pieces of letter mail and/or fiat mail per
month. All mail available for presort by City of Vernon will be provided to
United Business Mail (UBM) for processing.
All First Class mail will be submitted to the USPS the same day that it is
received.
Rates: First Glass Letters/Postcards:
• One ounce, First Class Letter Mail will be metered at.414 (Full Rate is
$.44). NO SORT FEE SHALL APPLY*
• Two ounce, first Class Letter Mail will be metered at $.539 (Full Rate is
$.61). NO SORT FEE SHALL. APPLY*
• Three ounce, First Class Letter Mail will be metered at $.664 (Full Rate
Is $.78). NO SORT FEE SHALL APPLY*
• All qualifying First Class Postcards.will be metered at $.245 (Full Rate is
$.28). NO SORT FEE SHALL APPLY*
First Class Flats (OX121 Up to 1/2" thickness.
Flats will be metered at the 3 Digit Automation Rate, A SORT FEE OF
$.27 PER PIECE SHALL APPLY. This results in a net savings for the
customer of $.068 per flat processed.
Customer may provide flats to United Business Mail for metering and
processing. Only USPS full rate postage will be chai66?d back to the
customer (no additional service fee).
Move Update Endorsernent: MOVE Update will be completed by United Business Mail at no additional
charge. Customer has signed and returned necessary USPS paperwork.
Pick-up Fee: No pick-up fee to he charged for mail picked up at schedule pick-up time(s).
Fuel Surcharges; No fuel surcharges to be charged.
Reiect Fees: No fee's will be charged for rejects/non-reads or DPV.
Supplies 51ockln4: Should supplies (USPS Mail Trays) be. requested and delivered as a part of United
Business Mai►'s normal pici.<-up, no fee shall apply.
Metering Services: United Business Mail will provide -daily metering services and advise with service
on metering machines in accordance with USPS Specifications. A metering
service fee will be invoiced as fellows.
$.026 per letter
$.068 per Flats
$.15 per Certified or Parcel
Pick -Up Location:
Mail will "be picked upat:
city of Vernon
-
- 4.3iiS Sant6.PP..#ve, -
Vernon, Ck 9'005i3
Pick -tin Time:
t:0(1, P,M:
Certifiedri4ail:
Certified Mail saill be picked up'Md deliVered to the USPS at ro additional
rliarye: .
Term:
Pricing will be held firm for 7onths from start date, unless cliatigr's occur in
USPS processing rates or regulations,
cancellation
Should City of Vernon, at any decide to cancel this Agreement, ihiitt-rd
BI-Is hers Wail requests 34 day notice of this decision.
Star' _Date:
Upon Signature_
Accepted:
City ofX/jerhon: United Business Mail:
(Sinned) --
(5igried) %: ;✓. �:
Printed Nar+?:
a.
Printerl Nafne: Wiliam T 1�ietze
Title:
Title: Ti'easurer
Date:
Date: April 6`h, 2011
i.
(Signed}
i:.
Printed Narne: l illiam A �le, V
Title: Vice President
Date: April 6", 2011
OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
April 25 2011
United Business Mail
Attn: Erik Hansen, Business Redevelopment Manager
4551 Loma Vista Avenue
Vernon, CA 90058
Re: Mail Metering Services Agreement
Dear Mr. Hansen:
Transmitted herewith is an original fully executed agreement as referenced above, approved by
City Council on April 19, 2011, through Resolution No. 2011-68.
If you have any questions regarding this matter, please call Martha Valenzuela at (323) 583-8811
ext. 226.
Very , ly yours,
r
WILLARD G. Y GUC
City Clerk
WGY:dj
Enclosure
c: 'Martha Valenzuela
Purchasing Department
Resolution No. 2011-68
Agreement No. 11-050
E Ccfusivefy Industriaf
UNITED BUSINESS MAIL
Letter of Agreement
Volume: Mail volume will be approximately 5,000 pieces of letter mail and/or flat mail per
month. All mail available for presort by City of Vernon will be provided to
United Business Mail (UBM) for processing.
All First Class mail will be submitted to the USPS the same day that it is
received.
Rates: First Class Letters/Postcards:
• One ounce, First Class Letter Mail will be metered at $.414 (Full Rate is
$.44). NO SORT FEE SHALL APPLY*
• Two ounce, First Class Letter Mail will be metered at $.539 (Full Rate is
$.61). NO SORT FEE SHALL APPLY*
• Three ounce, First Class Letter Mail will be metered at $.664 (Full Rate
is $.78). NO SORT FEE SHALL APPLY*
• All qualifying First Class Postcards will be metered at $.245 (Full Rate is
$.28). NO SORT FEE SHALL APPLY*
First Class Flats (9x12): Up to 1/2" thickness.
• Flats will be metered at the 3 Digit Automation Rate. A SORT FEE OF
$.27 PER PIECE SHALL APPLY. This results in a net savings for the
customer of $.068: per flat processed.
• Customer may provide flats to United Business Mail for metering and
processing. Only USPS full rate postage will be charged back to the
customer (no additional service fee).
Move Update Endorsement: MOVE Update will be completed by United Business Mail at no additional
charge. Customer has signed and returned necessary USPS paperwork.
Pick -Up Fee: No pick-up fee to be charged for mail picked up at schedule pick-up time(s).
Fuel Surcharges: No fuel surcharges to be charged.
Reject Fees: No fee's will be charged for rejects/non-reads or DPV.
Supplies Stocking, Should supplies (USPS Mail Trays) be requested and delivered as a part of United
Business Mail's normal pick-up, no fee shall apply.
Metering Services: United Business Mail will provide daily metering services and advise with service
on metering machines in accordance with USPS specifications. A metering
service fee will be invoiced as follows:
$.026 per letter
$.068 per Flats
$.15 per Certified or Parcel,
Pick -Up Location: Mail will be picked up at:
City of Vernon
4305 Santa Fe Ave.
Vernon, CA. 90058
Pick -Up Time: 4:00 P.M.
Certified Mail: Certified Mail will be picked up and delivered to the USPS at no additional
charge.
Term: Pricing will be held firm for 24 months from start date, unless changes occur in
USPS processing rates or regulations.
Cancellation: Should City of Vernon, at any time, decide to cancel this Agreement, United
Business Mail requests 30 day notice of this decision.
Start Date: Upon Signature.
Accepted:
City of Vernon:
(Signed) 3�w -Ann�— �
Printed Name: Hilario Gonzales
Title: Mayor
Date:
AT ST: A,
it and GI. Yam hi, y Clerk
Start Date: April 19, 2011
United Business Mail:
(Signecl)_17�25-1) c� `�
Printed Name: 1� t-- I c-e
Title: V kC-e' P6Lej 07T ? �xt-_C5
,,// jj 1
Date: �` 1 (o I t l
VEll 1' UKM:
rd am g chi terim City Attorney
RECEIVE
APR 12 2011
CITY CLERK'S OFFICE
STAFF REPORT
PURCHASING DEPARTMENT
DATE: April 6, 2011
DECEIVED
APR 12 2011
CITY�11N1STRATION
TO: Mayor and City Council
FROM: Martha Valenzuela, Director of Business Services/Personnel
RE: Mail Services
1iv
Purpose
The Purpose of this Staff report is to obtain approval from you and
the City Council to enter in an agreement with United Business Mail
(UBM) for providing mail services to the City.
Background
The Finance Department currently processes our daily mail through
our Neopost machine which weighs and places the appropriate
postage on the mail (metering).
Recommendation
UBM provides metering and presorting services. They will pick up
our sealed mailed and meter as First Class Business mail. It is
logged and tagged for quality control, accurately weighed and the
appropriate postage is applied. It is the run through machines to
verify deliverability of the address, bar-coded and sorted by the zip
code. The mail is commingled with other letters going to the same
zip code destination. After this process the mail is delivered to the
Post Office.
A reduced postage rate is obtained for sorted bulk mail and thus a
lower rate is received which is passed on to the City. Also, the
expenses incurred to maintain the mailing machine is eliminated.
Based on the above information, I recommendwe enter into a
contract with UBM for the mail services.
Fiscal Impact
The City would save approximately $4,000.00 per year by using UBM
services.
Page 1 of 3
Jauntemis, Dolores
From: Yamaguchi, Willard
Sent: Wednesday, March 23, 2011 2:02 PM
To: Jaunzemis, Dolores
Subject: FW: United Business Mail
Attachments: Memo & United Business Mail Certificate.PDF
I will accept their coverage. Welcome back!
From: Jaunzemis, Dolores
Sent: Wednesday, March 23, 2011 1:55 PM
To: Yamaguchi, Willard
Subject: United Business Mail
Willard,
I have advised United Business Mail of the City's requirement of a limit of one million dollars for
California's Workers Compensation. The vendor is requesting consideration be taken since they have 4
million dollar umbrella coverage.
Just to clarify the services performed here at the City will only be that of a driver daily picking up the
mail.
If there is no flexibility allowed then I will advise the vendor that the City cannot utilize their services.
Please advise.
Thank you,
Dolores _7aunzemis
City of Vernon
(Purchasing Assistant
323-583-8811 e.V. 234
From: Erik Hansen [mailto:ErikHansen@unitedbusinessmail,com]
Sent: Wednesday, March 23, 2011 12:59 PM
To: Jaunzemis, Dolores
Subject: RE: Presort Savings
Dolores,
Do you think we can get a waiver of exception given we have a 4 million dollar umbrella on our policy?
I sure hope so ... Glad you are feeling better.
Erik
From: Jaunzemis, Dolores [mailto:DJaunzemis@ci.vernon.ca.us]
3/23/2011
v
CITY ATTORNEY'S OFFICE
INTER -DEPARTMENT MEMORANDUM
DATE: March 22, 2011
TO: Dolores Jaunzemis, Purchasing Assistant
FROM: Willard G. Yamaguchi, Interim City Attorney
RE: Mail Services
I have received and reviewed your Memorandum dated March 14, 2011,
regarding and the attachments thereto.
United Business Mail must carry California's Workers Compensation
limit of One Million Dollars.
Otherwise the Letter of Agreement with United Business Mail is
approved as to form.
WY:em
A'R 14 2011
or ATTORNEY DEPT.
MEMO
PURCHASING DEPARTMENT
DATE: March 14, 2011
TO: Willard Yamaguchi, City Clerk/Risk Manager
FROM: Dolores Jaunzemis, Purchasing Assista J�AY
RE: Mail Services
Attached is a proposal from United Business Mail (UBM). This company provides
metered and presort services. Our sealed mail will be picked up and metered as First
Class business mail. It is logged and tagged for quality control, accurately weighed and
the appropriated postage is applied. It is then run through machines to verify
deliverability of the address, sprayed a barcode and sorted by zip code. Then the mail
is commingled with other letters going to same city destination. After this process the
mail is taken to the USPS bulk mail entry unit which is 3 miles from the UBMflocation.
The drivers arrive in fleet company owned truck and bring the mail to a secure facility for
processing. Numerous cameras are placed in strategic areas for tight security. I
contacted 3 references and all gave positive feedback with this company. Their volumes
were over 5,000 envelopes per day. We currently send out about 5,000 per month.
Not one company experienced loss of any piece of mail nor have had any incident of
checks being stolen.
have attached the proposal; however the vendor will accept our -purchase ord& as the
agreement. Also, attached is their insurance coverage. The language on the proposal
allows us to terminate the services with a 30 day notice which I will carry over onto our
purchase order.
The vendor has extended an open invitation to visit the facility in order to see for
ourselves how efficient and secure the operation center is.
Based on the high increasing cost of maintaining our postage machine and the money
to be saved on a lower postage rate the City would save over $4,000.00 per year using
United Business Mail. Please advise if you need any more information.