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STATEMENT OF WORK #1 FIRST CLASS MAIL This Statement of Work ("SOW") is entered into as of February 1, 2019 ("Effective Date"), pursuant to the Master Services Agreement (the "Agreement") dated February 1, 2019, between City of Santa Ana ("Client") and Pitney Bowes Presort Services, Inc. ("PBPS"), die terms of such Agreement being incorporated herein by this reference, and governing this SOW for First Class Mail services. 1. Services Provided By PBPS. PBPS will pickup the Client's prepared mail at Client's designated address(es) as specified on Schedule 1.0, barcode (if not pre -barcoded by Client), sort and submit said mail to the United States Postal Service® ("USPS"). Provided that the mail is prepared by Client according to the Mail Specifications and is made available for pick up by PBPS on or before the daily pick up times specified on, or mutually agreed as permitted by, Schedule 1.0, the mail shall be submitted to the USPS on the same USPS business day ("Same Day") or the following USPS business day ("Next Day") as specified on Schedule 1.0. Client agrees that, as permitted by the USPS, PBPS may move Client's mail from one PBPS operating center to another PBPS operating center and may consolidate letters addressed to certain commercial delivery points for induction as USPS priority mail. Additional locations or distinct mailstreams may be assigned their own Schedule l.x, e.g., 1.1, 1.2, etc. Any reference to Schedule 1.0 also applies to any Schedule lx. 2. Ouantity of Mail. Client will provide the approximate number of pieces of mail for pick up and processing as specified on Schedule 1.0, but not less than all of the presort compatible mail produced at the facility. — 3. Fees For Automated Presort Services. For First -Class® automated presort services provided by PBPS, Client shall pay the fees specified on Schedule 2.0. Additional locations or distinct mailstreams may be assigned their own Schedule 2.x, e.g., 2.1, 2.2, etc. Any reference to Schedule 2.0 also applies to any Schedule 2.x. 4. Fees For Other Services. For other services provided by PBPS, Client shall pay the fees specified on Schedule 3.0. Additional locations or distinct mailstreams may be assigned their own Schedule 3.x, e.g., 3.1, 3.2, etc. Any reference to Schedule 3.0 also applies to any Schedule 3.x. 5. Postage Payment. If Client uses permit mail, pre -meters mail at the 5 digit automation rate or regularly requires PBPS to meter mail on Client's behalf, Client will maintain a postage deposit or otherwise pay for such postage in advance of processing. The method and amount of such deposit or advance payment is set forth on Schedule 4.0. Additional locations or distinct mailstreams may be assigned their own Schedule 4.x, e.g., 4.1, 4.2, etc. Any reference to Schedule 4.0 also applies to any Schedule 4.x. 6. Mail Specifications. Client's mail shall meet all USPS requirements for automation compatible mail as set forth in the Domestic Mail Manual ("DMM") and its attendant documentation applicable to each type of mail submitted and the requirements set forth in this paragraph 6 ("Mail Specifications'). 6.1. Presentation: Client's mail shall be submitted to PBPS upright in trays with all envelopes facing in the same direction, properly addressed and sealed. If Client's mail is (i) pre -metered, it shall be affixed with the correct postage rate, the correct date and appropriate "pre-sorted" notations; (ii) permit imprinted, it shall be separated and presented by the correct weight and affixed with the appropriate "pre-sorted" and indicia imprint and a return address; (iii) pre -canceled stamp, it shall be affixed with a pre -canceled stamp and shall contain a return address. Client shall complete and sign pick up slips at each location indicating the number of trays and/or pieces of mail to be processed by PBPS. If Client pre -meters its mail, Client shall provide PBPS with its current license numbers, and notify PBPS within five (5) business days of any changes. Client agrees to promptly execute or produce all PBPS or USPS documents to meet requirements of the USPS. Client further agrees to make appropriate changes in the way Client addresses and handles its mail as reasonably requested by PBPS and as required by the USPS. 6.2. Barcode Requirements: 6.2.1. If Client pre-barcodes its mail, Client must: (1) utilize the USPS Coding Accuracy Support System (CASS) to satisfy the USPS zip code accuracy requirements in Delivery Point Validation and provide a current certificate upon request; and (2) apply only barcodes compliant with the then current Full Service Intelligent Mail Barcode (IMb) requirements of the USPS. 6.2.2. If Client is not pre-printing a barcode on its mail, Client must leave a clear zone as specified in the DMM and the paper must be non -glossy. 6.3. Move Update Requirements: USPS regulations require that mailers utilizing First Class discounted postage rates select one or more authorized move -update options. Client will utilize the authorized move -update option(s) indicated on Schedule 5.0. If Client utilizes the PBPS Move Update Solution, additional terms and conditions Page 1 of 9 Pmprietary and Confidential Information PBPS PBPS Contract Management — Rev Oct 2018