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ATTACHMENT A FEES FOR PRESORT SERVICES 1. Location. Unless you tell us otherwise in writing, we will pick up your mail at the following location(s): City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 2. First Class Letters and Postcards 2.1 Postage — Metered Letters. Customer shall meter all First Class letter mail at the then current Mixed AADC Rate. At the time of this Agreement, the Mixed AADC rate for First -Class letter mail meeting automation requirements pursuant to the USPS Domestic Mail Manual ( "DMM" ®) regulations is: $0.405 per piece of 1 ounce mail. $0.405 per piece of 2 ounce mail. $0.655 per piece of 3 ounce mail. Customer shall reimburse PBPS for all postage metered by PBPS on behalf of Customer. 2.2 Postage — Metered Postcards. Customer shall meter all First Class postcard mail at the then current Presort Rate. At the time of this Agreement, the Presort rate for First -Class postcard mail meeting automation requirements pursuant to the USPS Domestic Mail Manual ( "DMM" ®) regulations is $0.281 per piece. Because PBPS, as the presenter, must pay the USPS for permit postage, Customer shall establish a Postage Deposit or otherwise pay for such postage in advance as provided below. 2.3 Postage — Permit Letters. PBPS will submit Customer's First Class permit indicia letter mail meeting automation requirements pursuant to the USPS DMM regulations at the then current Mixed AADC rate. At the time of this Agreement, the Mixed AADC rate for First -Class letter mail meeting automation requirements pursuant to the USPS Domestic Mail Manual ( "DMM" 4) regulations is: $0.405 per piece of 1 ounce mail. $0.405 per piece of 2 ounce mail. $0.655 per piece of 3 ounce mail. Because PBPS, as the presenter, must pay the USPS for permit postage, Customer shall establish a Postage Deposit or otherwise pay for such postage in advance as provided below. 2.4 Postage — Permit Postcards. PBPS will submit Customer's First Class permit indicia postcard mail meeting automation requirements pursuant to the USPS DMM regulations at the then current Presort rate. At the time of this Agreement, the Presort rate for First -Class postcard mail meeting automation requirements pursuant to the USPS Domestic Mail Manual ( "DMM" ®) regulations is $0.281 per piece. Because PBPS, as the presenter, must pay the USPS for permit postage, Customer shall establish a Postage Deposit or otherwise pay for such postage in advance as provided below. 2.5 Presort Fee. Customer shall pay the following presort fees: • $0.019 per piece of First Class letter mail metered at the Mixed AADC rate • $0.022 per piece of First Class permit letter mail submitted at the Mixed AADC rate • $0.00 per piece for First Class postcard mail metered or submitted at the Presort rate • $0.05 per piece for non- automation compatible First Class letter mail over 2 ounces 2.6 Exception Handling Fee. Mail that is rejected by the MLOCRs ( "Machine Rejected Mail" or "MRM ") and mail that fails Delivery Point Validation ( "DPV ") will be charged the above Presort Fee plus an Exception Handling Fee. The Exception Handling Fee will be applied to a percentage of Customer's mail, regardless of the actual number of pieces of Exception Mail, based upon a testing of your mail. Such percentage may be adjusted by PBPS, in its reasonable discretion, in the event that the readability or accuracy of Customer's mail materially changes, following additional testing and advance notice to you. While PBPS will make reasonable efforts to process MRM /DPV mail the same day, such mail may be delayed because of the extra handling necessary to meet USPS preparation requirements. PBPS may re -date and submit such delayed mail the following business day. Page 2 of 3 Proprietary and Confidential PBPS Contract Management - Rev Nov 2012