HomeMy WebLinkAbout25E - AGMT MAIL PROCESSINGREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MARCH 5, 2019
TITLE:
AGREEMENT FOR MAIL PROCESSING
SERVICES WITH PITNEY BOWES
PRESORT SERVICES, INC. ($20,000)
(STRATEGIC PLAN NO. 7,5)
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 18'Reading
❑ Ordinance on 2ndReading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager and Clerk of the Council to execute an agreement with Pitney Bowes
Presort Services, Inc. to provide mail processing services for a three-year period beginning
February 1, 2019 and expiring February 28, 2022, in an amount not to exceed $20,000 annually
for a total aggregate of $100,000 (including extensions), with provision for two, one-year extensions
exercisable by the City Manager and City Attorney, subject to non -substantive changes approved
by the City Manager and City Attorney.
DISCUSSION
The Finance and Management Services Agency Central Services Division ("Central Services")
currently utilizes Pitney Bowes Presort Services, Inc. ("PBPS") to pick up and process City mail.
PBPS is a presort house that barcodes and presorts the mail by zip code. When mail is barcoded
and presorted, PBPS delivers the items to the local United States Postal Service ("USPS")
processing facility and subsequently USPS assesses the City a reduced postage rate for utilizing
the service.
In addition to standard mail, the City mails out various Bulk mailings for City functions including but
not limited to, Business Tax and Dog Licensing. These mailings necessitate the use of envelopes
with a pre-printed permit imprint indicia. PBPS is permitted for this service with the USPS and
processes these large mailings on behalf of the City.
Furthermore, to facilitate the payment of fees under this Agreement, the City will pay to Pitney
Bowes Presort services all amounts due and owing to Pitney Bowes Presort Services as of
November 2, 2018 through the date of this Agreement, which total approximately $2,000.00. The
services were continued to be provided by the vendor (November 2018 through February 2019)
with no interruptions to service levels.
Previously on November 3, 2015, an agreement was approved for Pitney Bowes Presort Services,
Inc. to provide City mail processing services. The agreement was approved after research to
determine the availability of other vendors who may provide similar services. The Central Services
division solicited price quotes and two vendors responded for the pick-up, sort and delivery of
regular mail, and bulk mailings. A summary of offers received in 2015 were as follows:
25E-1
Agreement with Pitney Bowes Presort Services, Inc. for Mail Processing Services
March 5, 2019
Page 2
Vendor
Location
Offer
It was determined that United Business Mail in Vernon, CA, is non-responsive, as they could not
meet the City's end of business day pick-up for the Santa Ana area. PBPS remains the national
provider of presort services for First -Class Letters, Flats, and Standard Mail partnered with the
USPS. Utilizing Pitney Bowes Presort Services ensures City business mail is processed in a cost
effective and timely manner. For the reasons set forth, Staff recommends the approval of this
agreement (Exhibit 1).
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #7 Team Santa Ana; Objective #5
(create a culture of innovation and efficiency within the organization.)
FISCAL IMPACT
Annual allocations of $20,000 will be budgeted and available in the Finance/Management — Central
Services account (no. 07110100 62300) for expenditure in the following fiscal years:
Contract Period
Letters -Metered $0.0267/ea.
Pitney Bowes Presort Services, Inc.
Rancho Dominquez,
Letters- Permit $0.0298/ea.
2018-19 (Mar -June)
CA
Pick-up time daily 4:30 PM
United Business Mail
Vernon, CA
Price offer not received.
It was determined that United Business Mail in Vernon, CA, is non-responsive, as they could not
meet the City's end of business day pick-up for the Santa Ana area. PBPS remains the national
provider of presort services for First -Class Letters, Flats, and Standard Mail partnered with the
USPS. Utilizing Pitney Bowes Presort Services ensures City business mail is processed in a cost
effective and timely manner. For the reasons set forth, Staff recommends the approval of this
agreement (Exhibit 1).
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #7 Team Santa Ana; Objective #5
(create a culture of innovation and efficiency within the organization.)
FISCAL IMPACT
Annual allocations of $20,000 will be budgeted and available in the Finance/Management — Central
Services account (no. 07110100 62300) for expenditure in the following fiscal years:
Contract Period
Fiscal Year
Amount
2018-19 (Nov -Feb)
$ 1,400
2018-19 (Mar -June)
$ 6,667
2019-20
$20,000
2020-21
$20,000
2021722 (July -Feb)
$13,333
APPROVED AS TO FUNDS AND ACCOUNTS:
iVk,r4-_ b_t '
Kathryn Dowhs, CPA
Executive Director fb
Finance and Management Services Agency
EG/DH
Exhibit: 1. Agreement
Renewal Period
Fiscal Year Amount
2021-22 (Mar -June) $ 6,667
2022-23 $20,000
2023-24 (July -Feb) $11,933
25E-2
Pitney bowel ,
EXHIBIT 1
MASTER SERVICES AGREEMENT
This Master Services Agreement ("Agreement") by and between Pitney Bowes Presort Services, Inc., a Delaware corporation,
("PBPS"), with offices located at 10110I Street, Omaha, NE 68127, and City of Santa Ana, a California municipality, ("Client"),
with offices located at 20 Civic Center Plaza, Santa Ana, CA 92701, is entered into as of February 1, 2019 ("Effective Date').
For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto mutually
agree as follows:
1. Services Provided By PBPS.
1.1 PBPS will provide the agreed upon services as described in the Statement(s) of Work (each an "SOW") attached
hereto or added from time to time and incorporated herein by this reference. The terms of this Agreement shall apply
to each SOW attached hereto, except as expressly provided in any SOW. This Agreement and each SOW, to the extent
reasonably possible, will be construed to be consistent with each other. I£ and to the extent, however, that this
Agreement and any SOW cannot reasonably be construed as consistent with each other, then (i) the SOW will control
with respect to its subject matter and (ii) this Agreement will control in all other respects.
1.2 This Agreement does not contemplate the handling of mail containing any credit, debit or gift cards (`Plastics") or
mail containing cash, checks, money orders, or other negotiable documents ("Negotiables'). If the parties decide to
expand the services to include Plastics or Negotiables, the parties shall confer to address additional concerns of both
parties and enter into a mutually agreed amendment(s) prior to beginning such services.
2. Client's Responsibilities. Client must present only mail prepared in compliance with all United States Postal Service'
("USPS" 11) regulations and all other applicable laws, Hiles, and regulations and meeting the requirements as set forth in the
SOW.
3. Fees For Services. For the services provided by PBPS, Client shall pay the fees specified in each SOW.
4. Invoices. PBPS shall submit monthly invoices to Client at the address specified above for Client, or such other address as
is specified by Client to PBPS in writing. Such invoices shall show the total number of mail pieces handled, the fees charged,
postage, and such other information as PBPS may elect to include on its invoices. Invoices shall be due within thirty (30)
calendar days from the date of the invoice, payment by bank to bank transfer is preferred. Client will, in addition to payment
of fees under this Agreement, pay to PBPS all amounts due and owing to PBPS as of November 2, 2018 through the date of
this Agreement. If Client fails to make payment for all undisputed invoice charges when due, PBPS may, upon five (5) days
prior written notice, suspend performance under this Agreement until such payment is made. Any amounts owed and past
due for services rendered or expenses (other than postage) incurred shall bear interest at a rate of one and one-half percent
(1.5%) per month or the maximum amount allowed by law (if less) until paid. An amount is not in dispute unless Client, in
good faith, has notified PBPS in writing by the due date that it disputes the charges in the invoice and has provided sufficient
detail for PBPS to research and respond to such dispute. Any claim to dispute an invoice, either before or after payment,
must be communicated to PBPS in writing no later than one -hundred -eighty (180) days following the invoice date. Client
payment for postage paid by PBPS to the USPS on behalf of Client shall be as set forth in the SOW. Client will be responsible
for any and all excise, sales and/or use taxes, and like charges imposed with respect to the services provided by PBPS
hereunder. PBPS shall be responsible for any and all taxes and like charges based upon or determined by reference to the
net income of PBPS.
5. Warranty - Disclaimer. PBPS shall perform all duties and obligations required of it pursuant to this Agreement in a
professional and workmanlike manner and in accordance with accepted presort mail processing industry standards.
EXCEPT AS SET FORTH IN THE IMMEDIATELY PRECEDING SENTENCE, PBPS MAKES NO WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE WITH RESPECT TO THE SERVICES AND ANY SUCH WARRANTIES ARE HEREBY
EXPRESSLY DISCLAIMED.
6. Compliance. Each party shall comply with all local, state, and federal laws and regulations applicable to such party as it
relates to the services, including USPS, labor and employment, immigration, health and safety, environmental, and data
privacy laws and regulations.
7. Term. This Agreement shall be in force and effect for a period of three (3) years from the Effective Date ("Initial Term').
This Agreement may be extended for two (2) additional one-year periods ('Renewal Term") by a writing executed by PBPS
and by Client's City Manager and City Attorney. Notwithstanding the foregoing, the specific term of any SOW, ifany, shall
be as set forth in the SOW. If no specific term is set forth in the SOW, the SOW shall be coterminous with this Agreement.
If this Agreement is terminated while any SOW is still in effect, the terms and conditions of this Agreement shall continue
to govern the SOW until such time as the SOW expires or is otherwise terminated. The total sum to be expended by Client
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PBPS Contract Management—Rev Oct 2018
for fees (including postage reimbursement) under this Agreement shall not exceed twenty thousand dollars ($20,000)
annually, including for any Renewal Terms.
8. Events of Default. The occurrence of any of the following events will constitute an Event of Default hereunder. (a) a
material breach of this Agreement or any SOW unless cured within a period of thirty (30) days after written notice of such
breach is given to the defaulting party by the other party hereto; or (b) a party becomes insolvent or makes a general
assignment for the benefit of creditors, or takes advantage of any insolvency act, or commences a case or other proceeding
naming the party as debtor under the United States Bankruptcy Code, or any proceeding is instituted against the party seeking
liquidation of the party or the party's assets and the party fails to take appropriate action resulting in the withdrawal or
dismissal of such proceeding within thirty (30) days, or there shall be appointed a receiver, liquidator, conservator, trustee
or similar official in respect of the assets of the party.
9. Rights and Remedies Upon Default. Upon an Event of Default, the non -defaulting party may, at its option: (a) terminate
this Agreement or the affected SOW immediately upon written notice to the defaulting party or upon any future date specified
in such notice; or (b) continue this Agreement, without waiving the defaulting party's continuing obligation to cure; and, in
either case the non -defaulting party may take whatever action available at law or in equity to enforce performance of any
obligation under this Agreement or seek damages for such Event of Default, subject to any limitations set forth in this
Agreement
10. Early Termination. This Agreement or any SOW may be terminated prior to the end of its term as then in effect upon the
occurrence of any of the following events: (a) an Event of Default set forth in paragraph 8 above, following which the non -
defaulting party elects to terminate the Agreement or the affected SOW; or (b) as permitted under a SOW in the event that
the USPS adopts any new postal regulations, procedures, rates or incentives that directly impact the services.
11. Force Maleure. PBPS shall maintain a commercially reasonable business continuity plan; however, PBPS shall not be
responsible for or incur any liability for any delay or failure in performance of any service or obligation under this Agreement
and shall be excused from the performance to the extent that PBPS is prevented, restricted, delayed or interfered with by
causes beyond its control, including but not limited to acts of God, fire, floods, severe weather, explosions, utility or
communication failures, earthquakes, wars (declared or undeclared), labor disputes, strikes, lockouts, riots, epidemics, acts
of terrorism, blockades, embargoes, government orders or requirements having legal effect of any government or any judicial
authority, or any other situations, whether similar or dissimilar to those referred to in this clause, which are beyond the
reasonable control of PBPS ("Force Majeure"). In case of a Force Majeure event, PBPS will notify Client as soon as
reasonably possible by whatever means are available. PBPS shall not be liable for the loss of any postage savings, and Client
shall reimburse PBPS for the difference between the contracted postage discount rate and any postage upgrades required to
submit the mail while the Force Majeure effects continue.
12. Confidentialitv.
12.1 "Confidential Information" means all confidential and proprietary information of either party ("Disclosing Party"),
including, each party's: (i) customer and prospect lists, suppliers and terms of existing agreements with business
partners and other third parties; (ii) pricing, financial and other business information, data processes and plans,
security measures, business continuity and disaster plans, policies and procedures; (iii) research and development
information, analytical methods and procedures, hardware design, technology and non-public personnel data; (iv)
information concerning or belonging to the customers and potential customers of either party; (v) business practices,
know-how, including but not limited to Trade Secrets (as defined by applicable law), and marketing or business plans;
(vi) this Agreement, any orders and training materials; and (vii) any other information identified in writing as
confidential or information that the receiving party knew or reasonably should have known was confidential, disclosed
to the other party ("Receiving Party") or to which the Receiving Party gains access in connection with this Agreement.
12.2 Client acknowledges that the information contained in data files ofnames and updated addresses resulting from Return
Mail Solutions services ("Output File") may include nonpublic personal information (as defined by various state and
federal laws and regulations) and that the Output File is intended only for Client's internal legitimate business
purposes and may not be sold, licensed, or otherwise distributed to third parties, except that Client may share the
resulting updated addresses with Client's customers as it relates to mailing list management. Client shall advise its
customers in writing of the above restrictions on use of the information. Client agrees to take reasonable measures to
maintain the confidentiality of the information contained in the Output File. Client agrees to certify, if so requested,
that its use of the Output File complies with these requirements.
12.3 The parties acknowledge that Receiving Party may be provided, have access to or be exposed to Confidential
Information of the Disclosing Party. The Receiving Party agrees (i) to hold the Disclosing Party's Confidential
Information in strict confidence, and apply at least the standard of care used by the Receiving Party in protecting its
own Confidential Information, but not less than a reasonable standard of care, (if) not to disclose such Confidential
Information to any third party or use such Confidential Information except as reasonably required to exercise its rights
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or perform its obligations under this Agreement or upon written permission of the Disclosing Party, and (iii) upon
written request of the Disclosing Party, to return or destroy such party's Confidential Information and provide written
confirmation of compliance; however, the Receiving Party may retain such copies as may be necessary for legal or
accounting purposes in accordance with its records retention policies. Each party agrees to cause its employees,
agents, subcontractors or other persons over whom the Receiving Party has control and who require access to such
information, to abide by such obligations.
12.4 The foregoing obligations do not apply to information that: (i) is already public or becomes available to the public
through no breach of this Agreement; or (d) was lawfully in the Receiving Party's possession before receipt from the
Disclosing Party; or (iii) is lawfully received independently from a third party who is not bound by a confidentiality
obligation to Disclosing Party; or (iv) is independently developed by or on behalf of the Receiving Party without use
of the Disclosing Party's Confidential Information.
12.5 If compelled by a requirement of a government agency, a court, or by law or discovery to disclose any of the
Disclosing Party's Confidential Information, the Receiving Party will, unless prohibited by law or order, notify the
Disclosing Party in writing prior to making any disclosure in order to provide the Disclosing Party a reasonable
opportunity to either waive any objection to such disclosure or request a remedy from the appropriate authority. The
Receiving Party will reasonably cooperate with the Disclosing Party in its efforts to obtain such a remedy. If the
Disclosing Party waives its objections or is unsuccessful in its request or fails to make such a request, the Receiving
Party will furnish only that portion of the Confidential Information that is legally required.
13. Independent Contractor. It is expressly understood and agreed that each party will act as an independent contractor and
that this Agreement is not intended and shall not be construed to create the relationship of agent, servant, employee,
partnership, joint venture or other association between Client and PBPS. Neither party may make any commitments binding
on the other, nor may either party make any representation that they are acting for, or on behalf of, the other, unless otherwise
specified in writing and signed by the parties. Neither party nor the employees of such party performing any obligation
hereunder shall be considered to be employees of the other party for any purpose, including but not limited to, compensation
for services, employee welfare and pension benefits, fringe benefits of employment or workers' compensation insurance.
14. Insurance. PBPS shall at all times during the tern of this Agreement maintain commercially reasonable insurance for loss
from property damage, bodily injury, death, and workers' compensation claims appropriate to the services provided. PBPS
will list Client as additional insured, and upon request, will provide a certificate for each insurance policy required under
this Agreement.
15. LIMITATION OF LIABILITY.
15.1 PBPS' TOTAL LIABILITY TO CLIENT RELATING TO THIS AGREEMENT, WHETHER BASED ON
CONTRACT OR TORT, UNDER LEGAL OR EQUITABLE GROUNDS, SHALL BE LIMITED TO AN
AMOUNT EQUAL TO THE REASONABLE COST TO RECREATE THE AFFECTED MAIL PIECES, BUT NOT
TO EXCEED $0.50 PER PIECE OF MAIL AND IN NO EVENT SHALL SUCH LIABILITY EXCEED THE
LIMITS OF ANY APPLICABLE INSURANCE CARRIED BY PBPS.
15.2 IN NO EVENT SHALL PBPS BE LIABLE TO CLIENT FOR ANY INDIRECT, INCIDENTAL, PUNrFIVF,
EXEMPLARY, STATUTORY, SPECIAL, OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER,
INCLUDING BUT NOT LIMITED TO LOSS OR DEMAND AGAINST THE CLIENT BY ANY THIRD PARTY,
EVEN IF PBPS HAS BEEN ADVISED OF,KNEW, OR SHOULD HAVE KNOWN THE POSSIBILITY OF SUCH
DAMAGES, ARISING OUT OF, OR RELATING TO THIS AGREEMENT. CLIENT FURTHER AGREES THAT
IN NO EVENT SHALL PBPS BE LIABLE FOR ANY DAMAGES OR INJURIES, INCLUDING BUT NOT
LIMITED TO CLEAN-UP COSTS, RESULTING FROM OR IN CONNECTION WITH ANY HAZARDOUS
SUBSTANCE, EXPLOSIVE, OTHER POLLUTANT OR SIMILAR SUBSTANCE, CONTAINED IN MAIL
SUBMITTED BY CLIENT.
16. Indemnification. Each party agrees to indemnify, defend, and hold harmless the other from and against any liability, loss,
cost, expense, claim, or damage, including reasonable attorneys' fees, in any action or claim (collectively "Claim") brought
by any third party, alleging bodily injury (including death) to the extent caused by the negligent actlomission or willful
misconduct of the indemnifying party. In addition, Client shall indemnify, defend and hold harmless PBPS from all Claims
by third parties, resulting from or in connection with any hazardous substance, explosive, other pollutant or similar substance
contained in mail submitted by Client A party seeking indemnification must give the indemnifying party prompt written
notice of any Claim and will provide reasonable cooperation in the investigation, defense or settlement of such Claim. No
compromise or settlement of the Claim may be effected by the indemnifying party without the indemnified party's prior
written consent (which will not be unreasonably withheld or delayed), unless (a) there is no finding or admission of any
violation of law by the indemnified party, and (b) the sole relief provided is monetary damages that are paid in fitll by the
indemnifying party.
Proprietary and Confidential lnfonnation M25
PBPS Contract Management— Rev Oct 2018
17. No Third Partv Beneficiaries. The parties intend that there shall be no third party beneficiaries under this Agreement, and
that no person or entity, except the parties hereto, shall have any rights or remedies under this Agreement, including the right
to bring any action on account of its breach or in any relation to it whether in contract, in tort, or otherwise.
18. Headings. The paragraph headings which appear in this Agreement are intended solely for convenience of reference and
shall not amplify, limit, modify or otherwise be used in the interpretation of any provision of this Agreement.
19. Integration. This Agreement, including all SOWS, exhibits, schedules and any addendum, appendices and attachments
hereto or thereto which are incorporated herein by reference, constitutes the entire Agreement between the parties with
respect to the subject matter hereof, and there are no other agreements, promises, covenants or conditions, oral or written,
except as are set forth herein or in the schedules and addendum, appendices and attachments, if any. Any prior agreements
between the parties with regard to similar services provided at any location covered by any SOW attached hereto are
superseded by this Agreement.
20. Severability, if any provision of this Agreement, or portion thereof, is held to be invalid, illegal or unenforceable by a court
of competent jurisdiction, such provision will be severed and the remaining provisions of this Agreement will remain in
force and effect
21. Waiver. The failure to enforce any provision of this Agreement shall not operate as a waiver thereof nor preclude the
enforcement of any such provision in the future. All waivers shall be in writing and signed by the party to be charged.
22. Modification. This Agreement may be modified only by a written document signed by the parties hereto. The terms and
conditions of this Agreement shall supersede any and all standard terms and conditions on either party's preprinted forms,
including but not limited to Purchase Orders, Pickup Slips and Invoices.
23. Assignment Neither party may assign this Agreement without the prior written consent of the other party. Any assignment
in violation of this provision will be null and void. Notwithstanding the foregoing, without the other party's consent, either
party may assign this Agreement in whole or in part to an affiliated company or a successor in interest of all or substantially
all of the assets of such party, provided that, in the case of an assignment by Client, such affiliated company or successor in
interest satisfies PBPS' creditworthiness standards. A party making such assignment shall promptly notify the other party
in writing. This Agreement will be binding upon and inure to the benefit of the parties and their respective permitted
successors and assigns.
24. Reference. Client agrees that PBPS can use Client's name in a client list and/or identify Client as such when communicating
with prospective clients, in each case along with the PBPS service Client uses.
25. Marketing. Client agrees that PBPS can use Client's name and logo in marketing content, including in an advertising
campaign, with the prior consent from C1ienL
26. Governing Law. This Agreement shall be governed by, interpreted, construed and enforced in accordance with the laws of
the State of California, without regard to its conflicts of law principles, irrespective of the fact that any one of the parties is
now or may become a resident of a different state.
27. Notices. All notices, consents or waivers required or permitted in this Agreement shall be in writing and be deemed to have
been duly given when (a) delivered personally; (b) upon delivery according to the records of an overnight courier service;
or (c) upon USPS records if sent by certified mail (postage prepaid), using the address set forth for each party in the opening
paragraph on page 1 of this Agreement. A party may change the address for notice by notice satisfying the requirements of
this paragraph.
28. Authorized Signature. Each party represents and warrants to the other that it has full and complete authority to enter and
perform this Agreement and that the person signing in its behalf has been duly authorized to sign this Agreement.
[Signatures only on new page]
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Proprietary and Confidential Information 25E-6
PBPS Contract Management— Rev Oct 2018
PITNEY BONES PRESORT SERVICES, INC.
M
Name:
Title:
Date:
ATTEST
By:
Name: Norma Mitre
Title: Acting Clerk of the Council
"PROVED AS TO FORM
By: t:l6I
B, - •&'�"�t
Name: Lisa Storck
Title: Assistant City Attorney
Proprietary and Confidential Information
PBPS Contract Management— Rev Oct 2018
CITY OF SANTA ANA
Name: Steven Mendoza
Title: Acting City Manager
Date:
RECOMMENDED FOR APPROVAL
By.
Name: Kathryn Downs, CPA
Title: Executive Director, Finance and Management
Services Agency
2199-7
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
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PBPS Contract Management — Rev Oct 2018
applicable to such services are set forth on Schedule 5.0. Additional locations or distinct mailstreams may be
assigned their own Schedule 5.x, e.g., 5.1, 5.2, etc. Any reference to Schedule 5.0 also applies to any Schedule
5.x.
6.4. Readability: Mail meeting the Mail Specifications is expected to process well on the PBPS equipment, meaning
that PBPS can read the address and obtain a valid delivery point on the fust pass. Specific expectations for the
readability of Client's mail may be set forth on Schedule 2.x. If PBPS observes that Client's mail readability has
degenerated, PBPS will provide Client with samples of the rejected mail and recommendations to resolve the
readability and/or address accuracy problems. Client will cooperate with efforts to promptly restore the readability
to reasonable levels.
6.5. Client's mail failing to meet the Mail Specification requirements of this paragraph 6 may be subject to return of
the mail, exception handling or ancillary fees set forth on Schedules 2.0 and 3.0, and/or USPS penalties. Client
shall promptly, upon receipt of appropriate documentation, reimburse PBPS for all penalties or assessments levied
against PBPS by the USPS as a result of Client's (or its customer or print provider) improper preparation and
finishing of its mail.
7. USPS Changes. Notwithstanding any other language in the Agreement or this SOW regarding pricing or changes, in
the event the USPS adopts any new/revised postal regulations, procedures, rates, or incentives that directly affect the
cost or provision of the services, PBPS may modify or terminate this SOW on fifteen (15) days written notice to Client.
8. CPI Adi ustment. Not more than once each calendar year and upon fifteen (15) days prior written notice to_Client, PBPS
may adjust the fees set forth in this SOW based upon increases in the most current published Consumer Price Index
("CPI") for the previous twelve-month period (each, a "CPI Adjustment"). The CPI will be measured as indicated in the
column for Urban Wage Earners and Clerical Workers, U.S. City average (base index year 1982-1984=100) as published
by the Bureau of Labor Statistics. The base rate to which the CPI will be applied for calculating the presort fee in
connection with a CPI Adjustment is the total cost per piece (postage and fees combined) at the time of calculation less
the then -current USPS 5 digit discount rate.
9. Fixed Rate Pricing.
9.1. Except for the annual CPI Adjustment and any PBPS modifications due to USPS changes as described above, the
fees set forth in this SOW are fixed for the Initial Term set forth below.
9.2. Client will be charged the amounts set forth herein regardless of whether the actual postage qualification rates for
Client's mail are higher or lower than the postage discount rate set forth on Schedule 2.0 and 3.0. Client hereby
authorizes PBPS to receive and retain any USPS postage refunds, incentives or rebates based on the amount of
Client's mail that qualifies for any lower presort mailing rates to PBPS, and all such refunds, incentives or rebates
will become the property of PBPS as pari of its compensation for performance of the services. (ref for metered
mail: USPS form 8096).
10. Term. The Initial Term and Renewal Terms of this SOW will coincide with those of the Agreement. Other than a notice
provided relative to the Term or termination of this SOW, which shall be governed by the Notice provision of the
Agreement, all other written notices permitted or required under this SOW or the Schedules attached hereto, may be
accomplished by e-mail with system delivery confirmation. The total sum to be expended by Client for fees (including
postage reimbursement) under this SOW shall not exceed twenty thousand dollars ($20,000) annually, including for any
Renewal Terms.
Page 2 of 9
Proprietary and Confidential Information 25E-9
PBPS Contract Managemmt — Rev Oct 2018
SOW #1- SCHEDULE 1.0
ADDRESSES AND TIMES FOR MAIL PICK UP
Upon mutual agreement PBPS and Client may add Client locations where the services will be made available. PBPS reserves
the right to decline services at any Client location if the factors of Average Daily Volume and distance to the nearest PBPS
facility make providing the services commercially unreasonable. For current locations, PBPS will pick up Client's mail at the
address(es) specified below. Client shall assemble and make available for pick up its mail on such schedule as may be
mutually agreed upon by the parties, in writing (e-mail is sufficient), with the initial schedule set forth below.
Client Location
Pick Up Time(s)'
Pick Up Time(s)'
Average Daily
Same Day Dated
Next Day Dated
Volume=
20 Civic Center Plaza
4:30PM
N/A
1,000
Santa Ana, CA 92701
Notes:
1 — All pick up times are local time zone Monday through Friday, excluding holidays, unless otherwise noted. First Class
Flat mail may be picked up at the same time as First Class letter mail; however, such Flat mail is always Next Day.
Consolidated letter mail to certain commercial delivery points may be submitted to the USPS the following business day, but
is then delivered using USPS priority mail. In the event that the mail is not ready at the agreed time and PBPS is able to wait
for the mail, while PBPS will use reasonable efforts to meet the regular schedule, such delay may result in the mail being
submitted to the USPS one business day later than scheduled.
2 - Client and PBPS agree that there is no minimum guaranteed volume required under this SOW, however, Client
acknowledges that PBPS's pricing is based upon receiving the Client estimated volume. Client will provide the approximate
average daily volume of mail set forth above for each location, for pick up and processing by PBPS. If the average daily
volume submitted decreases by 20% or more during any calendar quarter, it may be presumed that a reasonable pricing
adjustment is appropriate and the parties shall negotiate in good faith to agree upon such adjustment and issue an amended
Schedule(s) to this SOW.
Page 3 of 9
Pwp'ietwy and ConfidwfW Information 25E-1 0
PBPS Contract Mamg=ent—Rev Oct 2018
SOW #1- SCHEDULE 2.0
FEES FOR AUTOMATED PRESORT SERVICES
For automated First Classy presort services provided by PBPS for mail meeting the Mail Specification requirements, read
and accepted on the fust pass through PBPS's mail processing equipment, Client shall pay to PBPS the following:
2.1 Postage and Presort Fee.
2.1.1 Metered/Permit Postage and Presort Fee. Client shall meter the First Class mail, or be charged for
postage on First Class permit indicia mail, at the then current USPS Discount Rate designated below for each mail
type and shall pay the presort fee per piece as shown below for the applicable mail type and service level:
2.1.2 Postage Discount Rates at the time of this SOW are attached hereto as Appendix A.
2.2 Special Handling: First Class mail otherwise meeting the Mail Specifications, but which requires additional
handling due to the size or content, will be charged the Presort Fee as set forth above plus a Special Handling Fee
for.
2.2.1 6"x9" of $N/A per piece.
2.2.2 #14 envelopes of $N/A per piece.
2.2.3 Negotiables (including checks, stock certificates, cash) of $N/A per piece.
2.2.4 Plastics (debit/credit(gift cards) of $N/A per piece.
2.2.5 Other. N/A of $N/A per piece.
2.3 Intelligent Mail Barcode DiscounL PBPS will use its commercially reasonable best efforts to prepare Client's
First Class letters and postcards in accordance with the then current USPS requirements for Full Service IMb
processing. PBPS anticipates that it will be successful in such processing and will receive from the USPS, in addition
to other workshare discounts, a discount on such Full Service IMb compliant and qualifying First Class mail ("IMb
Discount"). Accordingly, the IMb Discount is factored into the presort fee in paragraph 2.1 above. In the event that
the USPS eliminates or reduces the IMb Discount, PBPS may adjust the presort fee following written notice to Client
as provided in paragraph 7 of this SOW.
2.4 Exception Handling Fee. Mail that is rejected by the sorting equipment ("Machine Rejected Mail" or "MRM',
including mail that fails Delivery Point Validation ("DPVr`P'), mail with a pre-printed barcode that is not Full
Service Intelligent Mail Barcode ("Full Service IMb") compliant, mail that can't be barcoded, or which for any other
reason PBPS cannot mechanically read and process as a Full Service IMb compliant mailpiece as a insult of the way
the mail was prepared by Client, including but not limited to poor print quality, incompatible fonts and incorrect
addressing (collectively "Exception Mail"), will be charged the above Presort Fee plus any applicable Exception
Handling Fee as set forth below. The per piece amount of each Exception Handling Fee is related to USPS rates and
may be revised by PBPS upon USPS changes as provided in paragraph 7 of this SOW. While PBPS will make
reasonable efforts to process Exception 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.
2.4.1 Machine Reiected Mail (MRM) Fees: At the time of this SOW, based on the readability of Client's mail,
the applicable MRM Fee will be applied to the determined percentage of Client's mail for each mail type and USPS
discount rate set forth in the table below. The MRM Fee will be applied to such percentage regardless of the actual
number of pieces of Exception Mail on any given day.
Presort Fee Per Piece
Mail Type
USPS Discount Rate Name
Same Day
Next Da
Letters—Metered
Mixed AADC
$0.0267
$N/A
Letters—Permit
Mixed AADC
$0.0298
$NIA
Postcards—Metered
Presort
$0.0226
$N/A
Postcards—Permit
Presort
$0.0226
$N/A
2.1.2 Postage Discount Rates at the time of this SOW are attached hereto as Appendix A.
2.2 Special Handling: First Class mail otherwise meeting the Mail Specifications, but which requires additional
handling due to the size or content, will be charged the Presort Fee as set forth above plus a Special Handling Fee
for.
2.2.1 6"x9" of $N/A per piece.
2.2.2 #14 envelopes of $N/A per piece.
2.2.3 Negotiables (including checks, stock certificates, cash) of $N/A per piece.
2.2.4 Plastics (debit/credit(gift cards) of $N/A per piece.
2.2.5 Other. N/A of $N/A per piece.
2.3 Intelligent Mail Barcode DiscounL PBPS will use its commercially reasonable best efforts to prepare Client's
First Class letters and postcards in accordance with the then current USPS requirements for Full Service IMb
processing. PBPS anticipates that it will be successful in such processing and will receive from the USPS, in addition
to other workshare discounts, a discount on such Full Service IMb compliant and qualifying First Class mail ("IMb
Discount"). Accordingly, the IMb Discount is factored into the presort fee in paragraph 2.1 above. In the event that
the USPS eliminates or reduces the IMb Discount, PBPS may adjust the presort fee following written notice to Client
as provided in paragraph 7 of this SOW.
2.4 Exception Handling Fee. Mail that is rejected by the sorting equipment ("Machine Rejected Mail" or "MRM',
including mail that fails Delivery Point Validation ("DPVr`P'), mail with a pre-printed barcode that is not Full
Service Intelligent Mail Barcode ("Full Service IMb") compliant, mail that can't be barcoded, or which for any other
reason PBPS cannot mechanically read and process as a Full Service IMb compliant mailpiece as a insult of the way
the mail was prepared by Client, including but not limited to poor print quality, incompatible fonts and incorrect
addressing (collectively "Exception Mail"), will be charged the above Presort Fee plus any applicable Exception
Handling Fee as set forth below. The per piece amount of each Exception Handling Fee is related to USPS rates and
may be revised by PBPS upon USPS changes as provided in paragraph 7 of this SOW. While PBPS will make
reasonable efforts to process Exception 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.
2.4.1 Machine Reiected Mail (MRM) Fees: At the time of this SOW, based on the readability of Client's mail,
the applicable MRM Fee will be applied to the determined percentage of Client's mail for each mail type and USPS
discount rate set forth in the table below. The MRM Fee will be applied to such percentage regardless of the actual
number of pieces of Exception Mail on any given day.
Page 4 of 9
Proprietary and Confidential Information 25E-1 1
PBPS Contract Management— Rev Oct 2018
MRM FEE
Mail Type
USPS Discount Rate Name
MRM Fee Determined
Per Piece Percentage
Letters
Mixed AADC
1 $0.00 0%"
Page 4 of 9
Proprietary and Confidential Information 25E-1 1
PBPS Contract Management— Rev Oct 2018
Postcards Presort $0.00 0%
In the event the readability of Client's mail (or a specific mail type or job) has degraded and Client has not been
successful in restoring the readability as provided in paragraph 6.4 of this SOW, PBPS may revise the MRM Fee
and/or applied percentage upon fifteen (15) days advance written notice. The revised MRM Fee will be applied to a
percentage of Client's mail representing the Exception Mail, as determined by the most recent readability report
attached to the notice. If Client has taken steps to improve the mail readability, Client may request a more recent
readability report be used to determine the Exception Mail percentage applied.
2.4.2 IMb Downgrade: If Client pre-barcodes its mail with a barcode that is not Full Service IMb compliant or
presents mail on which PBPS cannot print a Full Service IMb, Client may be charged an IMb Downgrade based
upon any penalties, postage assessments or forfeiture of discounts (collectively, "Downgrade") which may be
imposed by the USPS on PBPS, based upon PBPS' calculation of Client's pro -rata share of such non-compliant
mail.
2.5 Default Pricing Terms. Upon any Event of Default (paragraph 8 of the Agreement) by Client for failure to make
timely payment of invoices or required postage payments, PBPS may elect to continue processing Client's mail, but
will no longer accept any permit mail or meter any mail on behalf of Client, and Client will pre -meter all of its mail.
Any mail that has not been metered will be returned to Client. Further, Client shall not pre -meter First Class mail
at the rates specified above, and instead shall pre -meter all First Class mail at the then -current Presort Rate. PBPS
will rebate back to Client the difference between the Presort pre -metered rate and the contract pricing herein for mail
processed at the Presort rate, after setting off against such rebate amount any sums then due from Client to PBPS
pursuant to this Agreement. If Client fails to pre -meter the mail at the Presort rate, PBPS may pursue other options
as permitted under the Agreement.
Page 5 of 9
Proprietary and Conflidential Information PBPS 25E-1 n ''
PBPS Contract Marogemeot — Rev Oct 2018
SOW #1- SCHEDULE 3.0
FEES FOR OTHER SERVICES
For other services identified herein, Client shall pay to PBPS the following:
3.1 AncillaryFees. PBPS reserves the right to charge the applicable fee for services performed to correct Client's mail
not in compliance with the Mail Specifications. The ancillary services described below may also be performed upon
request of Client While PBPS will make reasonable efforts to process mail requiring additional services according
to the scheduled service level, the required additional handling may result in the mail being delayed and submitted
to the USPS on the following business day. Client will pay the applicable Ancillary Fee, as well as reimburse PBPS
for any additional postage required. Charges for the ancillary services listed below are as follows:
Service
Fee Per Piece unless otherwise indicated
Meter Date Correction
$0.01
Missing Endorsement
$0.01
Metering Fee — Letters
$0.0206
Meterin Fee — Flats
$0.06
Meter Strip
$0.10
Labelin L — Sorter
$0.05
Labeling ML — Hand
$0.05 +$25.00 per hour, perperson)
Sticky Mail
$25.00 (per hour, per person—minimum 1 hour
Billable Hourly Work
$25.00 (per hour, per person—minimum 1 hour
Excessive Waiting Time at Pickup:
Straight truck or van
$60.00 per hour (minimum 1/2 hour after 30 minutes)
Excessive Waiting Time at Pickup:
Tractor trailer
$100.00 per hour (minimum 1/2 hour after 30 minutes)
3.2 Transportation. For the mail transportation services described in paragraph 1 of the SOW, Client shall pay PBPS
a fee of $0.00 per pick up, which shall be invoiced and payable according to paragraph 4 of the Agreement
3.3 Fuel Surcharee. In addition to the transportation fee set forth above, Client shall pay PBPS a fee of $0.00 per mail
pick up on account of.f iel costs associated with performing the services described in this SOW.
Page 6 of 9
Proprietary and Canfideatial Information PBPS 25E-1
PBPS Cont act Management — Rev Oct 2018
SOW #1- SCHEDULE 4.0
POSTAGE PAYMENT
4.1 Postaee Payment. If Client presents mail that requires PBPS to pay the USPS for postage on Client's behalf, Client
will maintain a postage deposit or otherwise pay for such postage in advance of processing, using the method
described below.
4.2 Initial Pa«nent. Client shall provide an advance postage payment equal to an estimated one (1) months' worth of
postage before submitting permit, 5 -Digit or unmetered mail for the fust time under this SOW.
4.3 Payment Process. In addition to the initial payment, Client shall provide a postage payment for each month job
sufficient to cover the estimated postage to be used during the following month job. Postage payment may be made
by:
43.1 Client initiated payment to PBPS; or
432 Client authorization for PBPS to withdraw from Client's designated bank account
Unless otherwise agreed by the parties in advance, such postage payment shall be made via electronic transfer. Client
will receive a postage statement of postage charges and payment receipts for reconciliation purposes. Any shortage
of postage funds received will be paid by Client with the next regular postage payment (but in any event no more
than thirty days after service) and any excess postage funds received may be deducted from the next postage
paymenL
4.4 Interest. PBPS shall not be required to pay any interest to Client on such postage funds received. Interest paid or
fees charged by any banking entity, shall be between Client and the banking entity.
4.5 Returnof Balance. Upon the termination of this SOW, PBPS shall return any excess funds to Client after all Fees
for services and postage charges have been paid to PBPS by ClienL
4.6 Failure to Maintain. IF CLIENT FAILS TO MAINTAIN THE POSTAGE PAYMENTS AT THE THEN
APPLICABLE LEVEL(S), PBPS MAY IMMEDIATELY SUSPEND ITS PERFORMANCE UNDER THIS SOW
AND WILL, AT CLIENT'S OPTION, EITHER: (i) HOLD CLIENT'S MAIL UNTIL PAYMENT IS RECEIVED
OR (ii) RETURN THE MAIL TO CLIENT. IN THE EVENT THAT CLIENT'S POSTAGE FUND BALANCE IS
NEGA= FOR MORE THAN THREE (3) CONSECUTIVE DAYS,, ON THE FOURTH DAY AND EACH
DAY THEREAFTER THAT THE BALANCE CONTINUES TO BE NEGATIVE, CLIENT SHALL PAY A
POSTAGE DEFICIT SURCHARGE EQUAL TO ONE-QUARTER OF A PERCENT (%%) OF THE NEGATIVE
BALANCE AMOUNT, BUTNOT TO EXCEED $2,500 PER DAY, OR THE MAXIMUM AMOUNT ALLOWED
BY LAW, IF LESS.
Page 7 of 9
sR tBco,t�r Oc2018 25E-14
SOW #1- SCHEDULE 5.0
MOVE -UPDATE REQUIREMENT
5.1 Move -Update Option. Client will complete a Certification of Move Update Compliance form as maybe reasonably
requested by PBPS from time to time in order to confirm the Move Update Option selected by Client on a job by
job basis. Client's selections include the following move -update option(s):
Indicate the selected option for Move Update Solution by placing an "X" in each column under the mail category
t e indicated
Option
First Class
First Class
First Class
Letter Mail
Postcard Mail
Flat Mail
Not Applicable
X
A USPS approved Move Update Solution provided and
X
X
utilized by Client on all Client mail of this type
PBPS Move Update Solution (an MLOCR-based software
application such as Siemens UMove) provided by PBPS on
all Client mail of this type
A USPS approved Move Update Solution provided and
utilized by Client on all Client mail of this type, except for
designated jobs within the mail type as agreed by the parties
on which PBPS shall utilize the PBPS Move U date Solution
The USPS uses a census method of testing to determine if a mail owner's addresses are being updated as required
by USPS Move Update Compliance regulations. Mailpiece compliance is measured per calendar month and results
are reported on the USPS Mailer Scorecard. Mailer Scorecards are available for individual mail owners and for
PBPS, the mail presenter. The USPS will assess penalties or postage assessments against PBPS as the eDoc submitter
associated with the mailing if the total Move Update failures submitted by PBPS per operating center under its USPS
Customer Registration ID (CRID) is over the USPS established threshold for the month. If Client has its own USPS
Mailer ID (MID), Client agrees that it will monitor its own failure rate for performance on the USPS Mailer
Scorecard by the MID/CRID, which can be accessed through the USPS Business Customer Gateway. The parties
will cooperate to identify and resolve failures involving Client's mail if either party has reasonable concerns about
meeting the Mailer Scorecard threshold requirements. The parties shall also cooperate to promptly appeal any
penalty or assessment by the USPS if there are reasonable grounds to advocate an appeal.
5.1.1 As to each job(s) for which Client elects to rely on its own application of a USPS Move Update Solution,
Client will reimburse PBPS for any penalties or postage assessments imposed by the USPS against PBPS due to, or
caused in part by, Client's mailpiece Move Update failures which exceed the Mailer Scorecard threshold, based
upon PBPS's calculation of Client's pro -rata portion of such penalty or assessment for that month
5.1.2 As to each jobs) for which Client elects the PBPS Move Update Solution applied by PBPS, Client will not
be charged for such Move Update penalties of postage assessments imposed by the USPS against PBPS, on
mailpieces processed by PBPS under those jobs even if the Move Update failures on those jobs exceed the Mailer
Scorecard threshold
5.2 Physical Requirements for PBPS Move Update Solution: PBPS can only spray baroodes on mail pieces that are
non -glossy with a sufficient clear zone in the lower right quadrant. Client will be required to use another approved
Move Update method for non -conforming mail pieces.
5.3 PBPS Move Update Solution - Fee:
Application Fee of $N/A per each piece of Letter mail scanned.
Application Fee of $N/A per each piece of Postcard mail scanned.
Page 8 of 9
Pwprietary and lbnfideatial tnfocmatim 25E-1 5
PBPS Contract Maogement— Rev Oct 2018
APPENDIX A
To SOV #1
First Class Letters, Postcards and Flats - USPS Postage Discount Rates
USPS Postage Rates as of January 27,2019:
Letters
Postage Rate Level
Postage
1 oz Letter
Full Rate Metered
$0.500
1 oz Letter
Non -automation Presort
$0.459
1-oz.1etter
Mixed AADC
$0.428
1 oz Letter
AADC
$0.412
1 ov, Letter
. 5 -Digit :
10.383 .
Postcards
Postage Rate Level
Postage
Postcard '
, Full Rate.
:1'10.350 : .
Postcard
Non -automation Presort
$0.280
Postcard .
_ Mixed AADC
$0.274•
Postcard
AADC
$0.268
Postcard :
5-D!6it ' ..
' . $0.257
Flats
Posta a Rate Level
Postage
1 oz; Flat ..
Full Rate :
$1.000
1 oz Flat
Non -automation Presort
$0.799
1 o7 -:Flat
3 -Digit
$0.605..
1 oz Flat
I 5 -Digit
$0.486
Additional ounce postage as set by the USPS
Public Injomwion 29Cf l v
USPS Rata Efectim w Shown