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STATEMENT OF WORK NO, 1
<br />FIRST CLASS MAIL
<br />This Statement of Work ("SOW") is entered into as of November 3, 2015, ( "Effective Date ") pursuant to the Master Services Agreement
<br />(the "Agreement ") dated November 3, 2015, between City of Santa Ana ( "Client ") and Piracy Bowes Presort Services, Inc. ( "PBPS "),
<br />the terms of such Agreement being incorporated herein by this reference, and governing this SOW for First Class Mail services.
<br />1. Services Provided By PBPS, PBPS will pick up the Client's pre - metered, permit imprint or pre carected stamp mail, whichever
<br />applies, at Client's designated address(es) as specified on Schedule 1.0, barcode (if not pre- batcoded by Client), sort said mail at
<br />PBPS's business location and submit said mail to the United States Postal Service" ( "USPS "). Provided that the mail is prepared by
<br />Client according to the Mail Specifications and is made available for pick up by PBPS on or before the daily pick up times specified
<br />on, or mutually agreed as permitted by, Schedule 1.0, the mail shall be submitted to the USPS on the same USPS business day
<br />( "Same Day ") or the fallowing USPS business day ( "Next Day's as specified on Schedule 1.0. Client agrees that, in performing its
<br />services pursuant to this Agreement, PBPS may move Client's mail from one PBPS operating center to another PBPS operating
<br />center as permitted by the USPS. Additional locations or distinct mailstreams may be assigned their own Schedule 1.x, e.g., 1.1, 1.2,
<br />etc. Any reference to Schedule 1.0 also applies to any Schedule Lx.
<br />2. Quantity of Mail. Client will provide the approximate number of pieces of mail per day and per month for pick up and processing
<br />as specified on Schedule 1.0, but not less than all of the presort compatible mail produced at the facility.
<br />3. Pees For Automated Presort Services. For First- Classe automated presort services provided by PBPS, Client shall pay the fees
<br />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.
<br />Any reference to Schedule 2.0 also applies to any Schedule 2.x.
<br />4. Fees For Other Services. For other services provided by PBPS, Client shall pay the fees specified on Schedule 3.0. Additional
<br />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
<br />applies to any Schedule 3.x.
<br />5. Postage Payment, If Client uses permit mail, pre- meters mail at the 5 digit automation rate or regularly requires PBPS to mater
<br />mail on Client's behalf, Client will maintain a postage deposit or otherwise pay for such postage in advance of processing. The
<br />method and amount of such deposit or advance payment is set forth on Schedule 4.0. Additional locations or distinct mailstreams
<br />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. .
<br />6. Mail Specifications. Client's mail shall meet all USPS requirements for automation compatible mail as set forth in the Domestic
<br />Mail Manual ( "DMM ") and its attendant documentation applicable to each type of mail submitted and the requirements set forth in
<br />this paragraph 6 ( "Mail Specifications ").
<br />6.1. Presentation: Client's mail shall be submitted to PBPS upright in trays with all envelopes facing in the same direction,
<br />properly addressed and scaled. if Client's avail is (i) pre - metered, it shall be affixed with the correct postage rate, the correct
<br />data and appropriate "pre- sorted" notations; (it) permit imprinted, it shall be separated and presented by the correct weight
<br />and affixed with the appropriate "pre- sorted" and indiala imprint and a return address; (iii) pre - canceled stamp, it shall be
<br />affixed with a pre - canceled stamp and shall contain a return address. Client shall complete and sign pick up slips at each
<br />location indicating the number of trays and /or pieces of mail to be processed by PBPS. If Client pre - meters its mail, Client -
<br />shall provide PBPS with its current license numbers, and notify, PBPS within five (5) business days of any changes. Client
<br />agrees to promptly execute or produce all PBPS or USPS documents to meet requirements of the USPS. Client further
<br />agrees to make appropriate changes in the way Client addresses and handles its mail as reasonably requested by PBPS and as
<br />required by the USPS.
<br />6.2. Barcode Requirements:
<br />6.2.1, If Client pre- barcodos its mail, Client must: (1) utilize the USPS Coding Accuracy Support System (CASS) to satisfy
<br />the USPS zip code accuracy requirements in Delivery Point Validation; and (2) apply only barcodes compliant with
<br />the then current Full Service Intelligent Mail Barcode (IMb) requirements of the USPS.
<br />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
<br />paper must be nom glossy.
<br />6.3. Move Update Requirements: USPS regulations require that mailers utilizing First Class discounted postage rates select one
<br />or more authorized tuovo- update options. Client will utilize the authorized move- update option(s) indicated on Schedule 5.0.
<br />If Client utilizes the PBPS Move Update Solution, additional terms and conditions applicable to such services are set forth
<br />on Schedule 5.0. Additional locations or distinct mailstmams may be assigned their own Schedule S.x, e.g., 5.1, 5.2, etc. Any
<br />reference to Schedule 5.0 also applies to any Schedule 5.x.
<br />6.4. Readability: PBPS expects that mail meeting the Mail Specifications will process on its equipment at a 97% roadability rate
<br />or better, meaning that PBPS can read the address and obtain a valid delivery point on the first pass. If PBPS observes that
<br />Client's mail readability rate has degenerated, PBPS will provide Client with samples of the rejected mail and
<br />recommendations to resolve the readability and /or address accuracy problems. Client will cooperate with efforts to promptly
<br />restore the readability rate to reasonable levels.
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<br />Pieprietary and Confidential Information
<br />PBPS Contract Management — Rev April 2014
<br />25C -8
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