County of Los Angeles Treasurer and Tax Collector KENNETH HAHN HALL OF ADMINISTRATION 500 WEST TEMPLE STREET, ROOM 437 LOS ANGELES, CA 90012 March 21, 2002 TELEPHONE (213) 974-2101 FACSIMILE (213) 626-1812 The Honorable Board of Supervisors County of Los Angeles 383 Kenneth Hahn Hall of Administration 500 West Temple Street Los Angeles, California 90012 Dear Supervisors: RECOMMENDATION TO APPROVE AMENDMENT WITH ALL DIRECT MAIL SERVICES, INC. TO INCREASE THE CONTRACT SUM FOR MAILING SERVICES (3 VOTES) IT IS RECOMMENDED THAT YOUR BOARD: Approve and instruct the Chairman to sign the attached amendment to the current contract with All Direct Mail Services, Inc., Contract No. 72839, for the provision of mailing services, to increase the annual maximum contract sum from $138,000 to $200,000 due to an increase in workload, and to incorporate required contract language, effective upon Board approval. PURPOSEJUSTIFICATION OF RECOMMENDED ACTION The Treasurer and Tax Collector (TTC) bills and collects taxes on behalf of the County of Los Angeles, the County s 88 incorporated cities, over 100 school districts and all other taxing agencies located in the County. The TTC has utilized outside mailing firms since 1987 to mail the approximately 2.3 million annual property tax bills. The Contractor s services include collating and assembly of material, inserting and sealing of envelopes, and application of appropriate postage. As a service provider to other County departments, e.g., Child Support Services Department, the Probation Department, and Department of Public Works, TTC provides mailing services through an in-house mailroom. Recent workload increases in TTC s mailing needs, as well as those of client departments, exceed the capacity and scope of
the TTC mailroom. In order to meet volume requirements or conflicting deadlines of our client departments, the TTC requires some flexibility in utilizing the Contractor for large volumeshort deadline mailings, particularly for the new Child Support Services Department. Implementation of Strategic Plan Goals Utilization of this contract is consistent with the County s Strategic Plan Goal of Organizational Effectiveness. This contract improves internal operations through the utilization of the contractor s expertise to effectively provide these as-needed mailing services in a timely and cost-effective manner. FISCAL IMPACTFINANCING The net increase of $62,000 will be offset by billings to client departments with no additional net County cost. FACTS AND PROVISIONSLEGAL REQUIREMENTS The current contract with All Direct Mail Services, Inc., Contract No. 72839, was adopted by the Board on June 20, 2000. The attached amendment has been approved as to form by County Counsel. This amendment increases the maximum annual contract amount from $138,000 to $200,000 and incorporates required and supplemental contract language as follows: additions to the contract term and sum provisions whereby the Contractor is required to monitor the contract s term notifying the TTC when the contract is within six months of expiration and when services provided but not yet billed meet or exceed 75% of the total contract amount to enhance our monitoring and reporting obligations; modification to the provision for consideration of GAIN participants to include GROW program participants; supplemental language added to require the Contractor to provide a price quote for as-needed mailing jobs that will remain constant for equivalent services during the term of the contract; modification to the requirement that the Contractor will return all spoilage (e.g., damaged property tax bills, postage metered envelopes, non-metered envelopes, inserts, etc.) for enhanced accountability and postage credits for TTC; modification in the services provided to include Certified and Registered mail processing; and an additional provision that all surplus supplies provided by TTC be returned for enhanced accountability and cost containment.
IMPACT ON CURRENT SERVICES This contract enables the TTC to meet critical mailing deadlines such as those imposed by the Revenue and Taxation Code with respect to Secured Property Tax bill mailings, notices required by statute, and meet obligations to other County departments. CONCLUSION Instruct the Executive OfficerClerk of the Board to return two (2) signed original Amendments and one (1) adopt stamped Board letter to TTC. Respectfully submitted, MARK J. SALADINO Treasurer and Tax Collector MJS:WMH:mh D:\wmh\Mailing Services\Amendment No 1\Bd Ltr.doc Attachment (1) c: Chief Administrative Officer County Counsel Executive Officer, Board of Supervisors
CONTRACT FOR THE PROVISION OF MAILING SERVICES CONTRACT NO. 72839 AMENDMENT NO. 1 This Amendment Number One is entered into by and between the County of Los Angeles (hereinafter, COUNTY ), a political subdivision of the State of California, by and through its Treasurer and Tax Collector (herein after, TTC ), and All Direct Mail Services, Inc., (hereinafter, CONTRACTOR ) with regard to the following recitals: WHEREAS, on June 20, 2000 the COUNTY entered into a Contract with CONTRACTOR, for the provision of Mailing Services; and WHEREAS, Section 3, Changes and Amendments, Paragraph C of the aforementioned Contract allows for revisions to any term or condition included in this Contract by a negotiated Amendment to this Contract, which shall be executed by COUNTY s Board of Supervisors and CONTRACTOR; NOW, THEREFORE, it is agreed to between the parties that the Contract shall be amended on this day of, 2002, as follows: I. Section 5, TERM, of the Contract shall have the following sub-paragraph added: D. CONTRACTOR shall notify TTC when this Contract is within six (6) months from the expiration of the term as provided for hereinabove. Upon occurrence of this event, CONTRACTOR shall send written notification to TTC at the address herein provided in Section 34, Notices. II. Section 6, CONTRACT SUM, of the Contract shall be amended as follows: A. The maximum Contract Sum under the terms of this Contract shall be the total monetary amount payable by COUNTY to CONTRACTOR for the provision of the Services herein in accordance with Exhibit B, Fee Schedule, and shall not exceed $200,000 annually, except as set forth in Section 3.C. B. CONTRACTOR shall maintain a system of record keeping that will allow CONTRACTOR to determine when it has incurred seventy-five percent (75%) of the total contract authorization under this Contract. Upon occurrence of this event, CONTRACTOR shall send written notification to TTC at the address herein provided in Section 34, Notices.
III. Section 23, CONSIDERATION OF GAIN PROGRAM PARTICIPANTS FOR EMPLOYMENT of the Contract shall be amended as follows: CONSIDERATION OF GREATER AVENUES FOR INDEPENDENCE (GAIN) OR GENERAL RELIEF OPPORTUNITIES FOR WORK (GROW) PARTICIPANTS FOR EMPLOYMENT Should CONTRACTOR require additional or replacement personnel after the effective date of this agreement, CONTRACTOR shall give consideration for any such employment openings to participants in the COUNTY'S Department of Public Social Services' Greater Avenues for Independence (GAIN) Program or General Relief Opportunities for Work (GROW) Program who meet CONTRACTOR'S minimum qualifications for the open position. COUNTY will refer GAINGROW participants, by job category, to CONTRACTOR. IV. Exhibit A, STATEMENT OF WORK, Section 2, SPECIFICATIONS FOR AS-NEEDED MAILINGS, shall have the introductory paragraph amended as follows: As-needed Mailings, i.e., one-time or recurrent mailings other than what is specified in Section 1 above, will occur throughout the year. At the onset of an As-needed Mailing, typically three to five business days prior to the mailing, TTC will request Contractor to provide a price quote. Upon acceptance by TTC, this price quote will establish the rate for subsequent mailings of this type. Therefore, a separate price will be established for each uniquely identifiable mailing job (e.g., Notice of Auction, Custodial Parent, Absent Parent Multiple, Postmaster Letter, Employer Letter, Parent of Minor Letter, etc.) that will remain in effect for successive jobs of a similar type and nature over the term of this Contract. Subsequently, Exhibit B, Fee Schedule, shall be modified in accordance with Section 3.B, Changes and Amendments, of this Contract. Volumes may range from 10,000 to 900,000, with most mailings averaging 50,000-100,000 outgoing envelopes. Typical assembly involves folding and inserting of a bill, a notice or letter and a return envelope(s) into mailing envelopes. Contractor shall meter with appropriate postage the outside of the mail-out envelopes to achieve the lowest possible postage rate prior to pick up by TTC s contract pre-sort vendor. The mailing address must be visible in the window of all mail-out envelopes. TTC reserves the right to perform these mailings in-house. TTC reserves the right to perform the bar-coding process in-house at TTC. In the event TTC does perform its own bar coding, Contractor shall still meter the envelopes for the appropriate amount of postage. The time schedule for completion of as-needed mailings is usually three to five business days. The mailings discussed below are typical samples; additional mailings may require other steps and may be more complicated or less complicated. These mailing examples are provided to illustrate the volume and timeframes of potential mailing projects and are not intended as a promise of ongoing mailings.
V. Exhibit A, STATEMENT OF WORK, Section 3, SPECIFICATIONS FOR ALL MAILING ACTIVITIES, shall have the below listed sub-paragraphs amended as follows: C. Contractor shall set aside all spoilage (e.g., damaged property tax bills, postage metered envelopes, non-metered envelopes, inserts, etc.) and deliver the items to TTC on a daily basis. D. Contractor will credit TTC with an amount equal to the postage and the per item construction cost for any mailings returned by the Post Office to TTC as undeliverable due to Contractor error. Such credit shall appear on the next invoice from Contractor, or at TTC s option, be paid directly to TTC. VI. Exhibit A, STATEMENT OF WORK, Section 3, SPECIFICATIONS FOR ALL MAILING ACTIVITIES, shall have the following sub-paragraphs added: H. When requested by TTC, Contractor will prepare Certified and Registered Mail documents in conjunction with specifically identified mailing jobs. Contractor will ensure that the proper postage is metered on the outgoing envelopes and that the proper CertifiedRegistered Mail documents (i.e., stickers and return receipts) are affixed to the mailings. TTC will supply all needed Certified and Registered mail documents. I. All surplus and unused supplies provided by TTC to Contractor (e.g., envelopes, inserts, CertifiedRegistered mail documents, etc.) shall be returned to TTC within two (2) business days after a particular mailing job is complete, unless otherwise directed by TTC. In the event there is a surplus of standard supplies, excluding CertifiedRegistered mail documents, which will be utilized for a subsequent TTC mailing, Contractor may retain these items in their warehouse. VII. Except for the changes set forth herein, all other terms and conditions of the Contract shall remain the same.
IN WITNESS WHEREOF, CONTRACTOR has executed this Contract, or caused it to be duly executed and the County of Los Angeles, by order of its Board of Supervisors, has caused this Amendment to be executed on its behalf by the Chairman of said Board and attested by the Executive Officer-Clerk of the Board of Supervisors thereof, the day and year first below written. CONTRACTOR COUNTY OF LOS ANGELES Chairman, Board of Supervisors ATTEST: Violet Varona-Lukens Executive Officer-Clerk of the Board of Supervisors Deputy APPROVED AS TO FORM: LLOYD W. PELLMAN County Counsel Principal Deputy County Counsel D:\wmh\Mailing Services\Amendment No 1\Amend No 1.doc