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HomeMy WebLinkAboutC-4083 - PSA for Printing and Mailing the City Manager's Community Newsletterx AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH NOVAK & NORMAL, INC. DBA THE PM GROUP INC. FOR PRINTING AND MAILING THE CITY MANAGER'S COMMUNITY NEWSLETTER THIS AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT, is entered into as of this 12" day of November 2009, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "CITY"), and NOVAK & NORMAL, INC. DBA THE PM GROUP, INC., a California Corporation, whose address is 21088 Bake Parkway, Suite 100, Lake Forest, California, 92630 ( "CONSULTANT'), and is made with reference to the following: RECITALS: A. On October 14, 2008, CITY and CONSULTANT entered into a Professional Services Agreement, hereinafter referred to as "AGREEMENT," for Printing and Mailing services for the City Manager's Community Newsletter hereinafter referred to as "PROJECT." B. CITY and CONSULTANT have entered into no separate AMENDMENTS of the AGREEMENT. C. CITY desires to enter into this AMENDMENT NO. 1 to reflect additional services not included in the AGREEMENT or prior AMENDMENTS, to extend the term of the AGREEMENT to March 31, 2010 and to increase the total compensation. D. CITY desires to compensate CONSULTANT for additional professional services needed for PROJECT. E. CITY and CONSULTANT mutually desire to amend AGREEMENT, hereinafter referred to as "AMENDMENT NO. 1" as provided here below. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of the AGREEMENT shall be extended to March 31, 2010, 2. ADDITIONAL SERVICES TO BE PERFORMED In addition to the services to be provided pursuant to the AGREEMENT, CONSULTANT shall diligently perform all the services described in AMENDMENT NO. 1 including, but not limited to, all work set forth in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference. The City may elect to delete certain tasks of the Scope of Services at its sole discretion. Exhibit A — Additional Services to be Performed The PM Group, Inc. will provide printing and mailing services for two issues of the City Manager's Community Newsletter prior to March 31, 2010 and at a total cost not to exceed $27,768. SCOPE OF SERVICES PRINTING From City- supplied word documents and digital images, PMG will provide a PDF proof for City review and approval. Newsletters will be printed in black ink on 50# offset, 16.75 x 10.875 flat. They will then fold to 8.375 x 10.875, and finally letterfold to #10 size. MAILING AND DISTRIBUTION PMG will purchase a Resident/Occupant list (one -time use), insert the newsletter into the #10 envelope, image envelope, bag, tag, and deliver to the USPS. This mailing will be addressed to RESIDENT/ OCCUPANT with a physical address imaged onto the envelope. All postage is payable in advance and is based on standard mail, each piece weighing less than 3.3 ounces. Any non - mailing copies, if any, will be boxed and delivered to the City. CERTIFICATION OF UNDERSTANDING 1. The City is to approve a PDF proof prior to printing. 2. PMG is to provide printing, mailing, and delivery services of the newsletter, and deliver the finished pieces to the Santa Ana main post office for mailing to Newport Beach zip codes. Schedule of Billing Rates Newsletter Printing and Mailing Services per issue: $5,478 One 16.75 x 10.875 sheet (4 pages), 54M per mailing Postage per issue: Postage based on standard mail (each piece weighing less than 3.3 oz) at the estimated rate of $.14 each; no increase in postage rates is anticipated through the length of the contract. Sales tax, if required, is additional (usually not required on pieces that mail). 3. COMPENSATION City shall pay Consultant for the services on a time and expense not -to -exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached to the AGREEMENT. Consultant's total additional compensation for all work performed in accordance with this Amendment No. 1 including all reimbursable items and subconsultant fees, shall not exceed Twenty-seven Thousand Seven Hundred Sixty-eight Dollars and no/100 ($27,768.00) without prior written authorization from City, 4. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in AGREEMENT shall remain unchanged and shall be in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT NO. 1 on the date first above written. APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY LA (L By: David R. Hunt City Attorney ATTEST: By: �jk� 6rw- Leilani I. Brown, City Clerk f \Lr FORri CITY OF NEWPORT BEACH, A Municipal Corporation By: D v' A. Kiff City Manager CONSULTANT: NOVAK & NORMAL, INC. DBA THE PM GROUP INC (Corpkr'Vte Officer) Title:�-t- Print Name: PNvt- M C ko N Air-,/ By: (Financial Officer) Title: V, P, Print Name: Paan A `CK;eI r1 7e'(1 Attachments: Exhibit A — Additional Services to be Performed 2 PROFESSIONAL SERVICES AGREEMENT WITH NOVAK & NORMAL, INC, DBA THE PM GROUP, INC. FOR PRINTING AND MAILING THE CITY MANAGER'S COMMUNITY NEWSLETTER THIS AGREEMENT is made and entered into as of this /'#h day of October 2008, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "Cit)"), and NOVAK & NORMAL, INC., a California Corporation, Doing Business As ( "DBA ") THE PM GROUP, INC. whose address is 21088 Bake Parkway, Suite 100, Lake Forest, California, 92630 ( "Consultant"), and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to cant' on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City is planning to continue to produce and distribute the City Manager's community newsletter. C. City desires to engage Consultant to provide printing and mailing services for up to eight (8) issues of the City Manager's Community Newsletter. D. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal member[s] of Consultant for purposes of Project, shall be Paul McKinney, President and Principal. F. City has solicited and received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retain Consultant to render professional services under the terms and conditions set forth in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Agreement shall commence on the above written date, and shall terminate on the 31st day of October, 2009, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Consultant shall diligently perform all the services described in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference. The City may elect to delete certain tasks of the Scope of Services at its sole discretion. 3. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and the services shall be performed to completion in a diligent and timely manner. The failure by Consultant to perform the services in a diligent and timely manner may result in termination of this Agreement by City. Notwithstanding the foregoing, Consultant shall not be responsible for delays due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 3.1 Consultant shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Consultant's control. 3.2 For all time periods not specifically set forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by either telephone, fax, hand - delivery or mail. 4. COMPENSATION TO CONSULTANT City shall pay Consultant for the services on a time and expense not -to- exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed One Hundred Eleven Thousand and Seventy-Two Dollars and no /100 ($111,072) without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City. 4.1 Consultant shall submit monthly invoices to City describing the work performed the preceding month. Consultant's bills shall include the name of the person who performed the work, a brief description of the services performed and /or the speck task in the Scope of Services to which it relates, the date the services were performed, the number of hours spent on all work billed on an hourly basis, and a description of any reimbursable expenditures. City shall pay Consultant no later than thirty (30) days after approval of the monthly invoice by City staff. 2 4.2 City shall reimburse Consultant only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Consultant: A. The actual costs of subconsuftants for performance of any of the services that Consultant agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement. B. Approved reproduction charges. C. Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Consultant in the performance of this Agreement. 4.3 Consultant shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates as set forth in Exhibit B. 5. PROJECT MANAGER Consultant shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Consultant has designated CAROL FERGUSON to be its Project Manager. Consultant shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. Consultant, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of services upon written request of City. Consultant warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. 6. ADMINISTRATION This Agreement will be administered by the City Manager's Office. TARA FINNIGAN shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his/her authorized 3 representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES In order to assist Consultant in the execution of its responsibilities under this Agreement, City agrees to, where applicable: A. Provide access to, and upon request of Consultant, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Consultant's work schedule. 8. STANDARD OF CARE 8.1 All of the services shall be performed by Consultant or under Consultant's supervision. Consultant represents that it possesses the professional and technical personnel required to perform the services required by this Agreement, and that it will perform all services in a manner commensurate with community professional standards. All services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. By delivery of completed work, Consultant certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and local laws and the professional standard of care. 8.2 Consultant represents and warrants to City that it has, shall obtain, and shall keep in full force in effect during the term hereof, at its sole cost and expense, all licenses, permits, qualifications, insurance and approvals of whatsoever nature that is legally required of Consultant to practice its profession. Consultant shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 Consultant shall not be responsible for delay, nor shall Consultant be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to approve or disapprove Consultant's work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 9. HOLD HARMLESS To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, and employees (collectively, the "Indemnified Parties ") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and 0 expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Agreement, any work performed or services provided under this Agreement including, without limitation, defects in workmanship or materials or Consultant's presence or activities conducted on the Project (including the negligent and /or willful acts, errors and /or omissions of Consultant, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Consultant to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Consultant. 10. INDEPENDENT CONTRACTOR It is understood that City retains Consultant on an independent contractor basis and Consultant is not an agent or employee of City. The manner and means of conducting the work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Consultant or any of Consultant's employees or agents, to be the agents or employees of City. Consultant shall have the responsibility for and control over the means of performing the work, provided that Consultant is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Consultant as to the details of the performance or to exercise a measure of control over Consultant shall mean only that Consultant shall follow the desires of City with respect to the results of the services. 11. COOPERATION Consultant agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the work to be performed. City agrees to cooperate with the Consultant on the Project. 12. CITY POLICY Consultant shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 5 13. PROGRESS Consultant is responsible for keeping the Project Administrator and /or his/her duly authorized designee informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings that have been scheduled or are desired. 14. INSURANCE Without limiting Consultant's indemnification of City, and Prior to commencement of work Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behaff shall sign certification of all required policies. C. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. D. Coverage Requirements. i. Workers' Compensation Coverage. Consultant shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employee's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days (10 calendar days written notice of non- payment of premium) prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Consultant for City. C ii. General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. iii. Automobile Liability Coverage. Consultant shall maintain automobile insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each occurrence. iv. Professional Errors and Omissions Insurance. Consultant shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this Agreement in the minimum amount of one million dollars ($1,000,000). E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: i. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Consultant's operations or services provided to City. Any insurance maintained by City, including any self - insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. 7 V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days (10 calendar days written notice of non - payment of premium) written notice has been received by City. F. Timely Notice of Claims. Consultant shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Consultant's performance under this Agreement. G. Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or joint- venture or syndicate or cotenancy, which shall result in changing the control of Consultant. Control means fifty percent (50 %) or more of the voting power, or twenty -five percent (25 %) or more of the assets of the corporation, partnership or joint - venture. 16. SUBCONTRACTING City and Consultant agree that subconsultants may be used to complete the work outlined in the Scope of Services. The subconsultants authorized by City to perform work on this Project are identified in Exhibit A. Consultant shall be fully responsible to City for all acts and omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. The City is an intended beneficiary of any work performed by the subcontractor for purposes of establishing a duty of care between the subcontractor and the City. Except as specifically authorized herein, the services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the prior written approval of City. E 17. OWNERSHIP OF DOCUMENTS Each and every report, draft, map, record, plan, document and other writing produced (hereinafter "Documents "), prepared or caused to be prepared by Consultant, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Consultant shall, at Consultant's expense, provide such Documents to City upon prior written request. Documents, including drawings and specifications, prepared by Consultant pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed Documents for other projects and any use of incomplete Documents without specific written authorization from Consultant will be at City's sole risk and without liability to Consultant. Further, any and all liability arising out of changes made to Consultant's deliverables under this Agreement by City or persons other than Consultant is waived against Consultant and City assumes full responsibility for such changes unless City has given Consultant prior notice and has received from Consultant written consent for such changes. 18. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the services in this Agreement, shall be kept confidential unless City authorizes in writing the release of information. 19. INTELLECTUAL PROPERTY INDEMNITY The Consultant shall defend and indemnify City, its agents, officers, representatives and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in Consultant's drawings and specifications provided under this Agreement. 20. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of City to examine, audit and make transcripts or copies of such records and invoices during regular business hours. Consultant shall allow inspection of all 9 work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 21. WITHHOLDINGS City may withhold payment to Consultant of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Consultant shall not discontinue work as a result of such withholding. Consultant shall have an immediate right to appeal to the City Manager or his /her designee with respect to such disputed sums. Consultant shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 22. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which result in expense to City greater than what would have resulted if there were not errors or omissions in the work accomplished by Consultant, the additional design, construction and /or restoration expense shall be bome by Consultant. Nothing in this paragraph is intended to limit City's rights under the law or any other sections of this Agreement. 23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Consultants in connection with the Project. 24. CONFLICTS OF INTEREST The Consultant or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. If subject to the Act, Consultant shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Consultant shall indemnify and hold harmless City for any and all claims for damages resulting from Consultant's violation of this Section. 10 25. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first -class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Consultant to City shall be addressed to City at: Attn: Tara Finnigan City Manager's Office City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92663 Phone: 949 - 644 -3000 Fax: 949 -644 -3008 All notices, demands, requests or approvals from CITY to Consultant shall be addressed to Consultant at: Attention: Carol Ferguson The PM Group, Inc. 21088 Bake Parkway, Suite 100 Lake Forest, CA 92630 Phone: 949 -597 -1662 Fax: 949 - 597 -1665 26. TERMINATION In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, and thereafter diligently take steps to cure the default, the non - defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. Notwithstanding the above provisions, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving seven (7) calendar days prior written notice to Consultant. In the event of termination under this Section, City shall pay Consultant for services satisfactorily performed and costs incurred up to the effective date of termination for which Consultant has not been previously paid. On the effective date of termination, Consultant shall deliver to City all reports, Documents and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 11 27. 28. 29. 30. 31 32. 33. COMPLIANCE WITH ALL LAWS Consultant shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all work prepared by Consultant shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. WAIVER A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. CONFLICTS OR INCONSISTENCIES In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. INTERPRETATION The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. AMENDMENTS This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. SEVERABILITY If any term or portion of this Agreement is held to be unenforceable by a court of competent jurisdiction, this Agreement shall continue in full force and effect. 12 invalid, illegal, or otherwise the remaining provisions of 34. CONTROLLING LAW AND VENUE The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 35. EQUAL OPPORTUNITY EMPLOYMENT Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. 13 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APP VED AS TO FO Aaron C. Harp, Asst. City Attorney for the City of Newport Beach ATTEST: By: M. "'e' LaVonne Harkless, City Clerk zzr0*& CITY f,NEWPO�T EACH, A M ni ipal Qprpo atJbD 'Edward D. Seli&Pi, Mayor for the City of Newport Beach CONSULTANT: to Officer) Title: Pn2/-Je(�-f Print Name: PA(' ( WK—in 1C j By: �J (Financial:Officer) Title: prLc�' (U Print Name: ���� w� MGK ( �1 n 2, y Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates iC! CITY OF NEWPORT BEACH SCOPE OF SERVICES City Manager Newsletter Printing and Mailing October 1, 2008 Tara Finnigan,APR Public Information Manager City of Newport Beach 3300 Newport Blvd., Newport Beach, CA 92663 October 1, 2008 RE: SCOPE OF SERVICES, CITY MANAGER'S NEWSLETTER, PRINTING AND MAILING Dear Ms. Finnigan, Thank you for the opportunity to offerThe PM Group's printing and mailing services of the City Manager's Newsletter for the City of Newport Beach.The PM Group offers a true turn -key process, offering printing and mailing in a seamless environment.We are one -stop shopping for all your printing and mailing needs. We are very experienced in the services required by government entities, holding contracts with the Cities of Garden Grove, Lake Forest, Norco, Orange, and Rancho Santa Margarita.We are also a preferred supplier for the Los Angeles Unified School District. We welcome your on -going consideration for this and other printing/mailing projects the City requires. I can be reached at any time, day or night, by calling the office at 949- S97- 1662.We look forward to working closely with the City on this project. Sincerely, j z !` CAROL F GUS Account Executive ACCEPTANCE OF TERMS AND CONDITIONS I accept the terms and conditions of the City of Newport Beach's agreement to print the City Manager's Newsletter. The manufacturing costs for this project will remain constant for the duration of the contract. Paper prices, however, fluctuate over time. Increase in paper, above 2%, will be documented in writing by the paper manufacturer, and an adjustment in pricing will be negotiated with the City. The PM Group has no potential conflicts of interest between our personnel and the City of Newport Beach. q - / Principal and President The PM Group, Inc. 21088 Bake Parkway, Suite 100 Lake Forest, CA 92630 949-597-1662, ext. 112 paulm @pmgrp.net SCOPE OF SERVICES PRINTING From City- supplied word documents and digital images, PMG will provide a PDF proof for City review and approval. Envelopes will be completed as a single printing in the quantity projected by the City as its annual usage (54,000 per issue). Envelopes are #10 size, printing on the face only, on 24# white wove in black ink.The envelopes will be pre- printed with the City's return address and PMG's indicia. Newsletters will be printed in black ink on SO# offset, 16.75 x 10.875 flat.They will then fold to 8.375 x 10.875, and finally letterfold to # 10 size. MAILING AND DISTRIBUTION PMG will purchase a Resident/Occupant list (one -time use), insert the newsletter into the #10 envelope, image envelope, bag, tag, and deliver to the US PS. This mailing will be addressed to RESIDENT / OCCUPANT with a physical address imaged onto the envelope. All postage is payable in advance and is based on standard mail, each piece weighing less than 3.3 ounces. Any non - mailing copies, if any, will be boxed and delivered to the City. CERTIFICATION OF UNDERSTANDING PMG is pleased to submit its proposal to the City of Newport Beach for the production of the City Manager's Newsletter. Our understanding of this project includes the following: I. The City is to approve a PDF proof prior to printing. 2. PMG is to provide printing, mailing, and delivery services of the newsletter, and deliver the finished pieces to the Santa Ana main post office for mailing to Newport Beach zip codes. PROJECT SCHEDULE Receipt of word documents and digital_images from the City .. ..... . . ....... ........... Dam Order mailing list . . ........ ... I . ..... . ... .... .......... — . . . ..... - .......... . .r!?F.pFppf to_City_ 1� ay2 _,.I.- q!q_appjNi�o of t_qf_prqof Dz 2 Print newsletter Day A, -------------- -- - --!� I. Postage check from Cit�ia ........ ....... ---- . . ..... ----- - PHA Mailing ,sS7ices . .. .... I .... . .. I ... .. .. 1-- . . 5 . . ....... R4� Deliver to post office Day 7 Please allow 12-15 working days for production of the #10 envelopes. 3 City of Newport Beach City Manager's Newsletter Schedule of Billing Rates October 1, 2008 Envelope Printing:* im The PM Group, Inc. 21088 Bake Parkway, Suite 100 Lake Forest, CA 92630 Newsletter Printing and Mailing Services per issue: Postage per issue: Postage based on standard mail (each piece weighing less than 3.3 oz) at the estimated rate of $.137 each; no increase in postage rates is anticipated through the length of the contract. $ 7, PM Group will provide initial redesign at no charge. *Envelopes will be printed for an entire year, stored and used as needed. The envelopes will be billed in their entirely at the time of the original printing. Pa o Sales tax, if required, is additional (usually not required on pieces that mail). Extended cost ACORDN CERTIFICATE OF LIABILITY INSURANCE 10 /22/z 08 PRODUCER (949)348 -7400 FAX (949) 348 -2373 Insurance Solutions License #0746539 26522 La Alameda, Suite 190 Mission Viejo, CA 92691 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC# INSURED Novak & Normal, Inc. DBA: The PM Group, Inc. 21088 Bake Parkway, Ste. #100 Lake Forest, CA 92630 INSURERA State Comp Ins Fund 830 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, INSURER B' GENERAL LIABILITY COMMERCIAL GENERAL UABILITY CLAIMS MADE F_� OCCUR INSURER C: 3300 INSURER D: EACH OCCURRENCE INSURER E. DAMAGE TO RENTED GES v THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAYBE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR %DD'L NSR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS 830 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, Attn: GENERAL LIABILITY COMMERCIAL GENERAL UABILITY CLAIMS MADE F_� OCCUR BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 3300 Newport Blvd EACH OCCURRENCE S DAMAGE TO RENTED S MEG EXP (Anyone POMDn) S PERSONAL & ADV INJURY S GENERAL AGGREGATE S GEN'L AGGREGATE LIMIT APPLIES PER. POLICY PRO JECT LOG PRODUCTS - OOMPIOP AGO S AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS COMBINED SINGLE LIMIT Ba aWdent) S BODILY INJURY (Per PersoN S BODILY INJURY (PeraccieenU 8 PROPERTY DAMAGE per acclaeno S GARAGE LIABILITY ANY AUTO AUTO ONLY -EA ACCIDENT S OTHER THAN EA ACC AUTOONLY. AGO S S EXCESSAIMBRELLA LIABILITY OCCUR 0 CLAIMS MADE DEDUCTIBLE RETENTION Y EACH OCCURRENCE S AGGREGATE S S $ S A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETORIPARTNERIEXECUTIVE OFFICEWMEMBER EXCLUDED? It yes, describe under SPECIAL PROVISIONS below 1657437 -08 10/01/2008 i 10/01/2009 I X we STATU- OTH- E.L. EACH ACCIDENT S 1,000,0 E.L.OISEASE- EAEMPLOYE S 1,000,00-0 E.L. DISEASE - POLICY LIMB 1 $ 1,000,00 OTHER DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS 10 Days written notice for non - payment of premium. rCOTIPIr ATC LIAI RC:O CAMrGI 1 ATIAM ACORD 25 (2001/08) FAX: (949) 644 -3008 (DACORD CORPORATION 1988 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL City of Newport Beach 830 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, Attn: Tara Finnigan BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 3300 Newport Blvd OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE •�L (�yw Newport Beach, CA 92663 Tony Alessandro HERES "_�� ACORD 25 (2001/08) FAX: (949) 644 -3008 (DACORD CORPORATION 1988 ACORD,R CERTIFICATE OF LIABILITY INSURANCE ATE os PRODUCER (949)472 -6560 FAX (949) 588 -8348 California Southwestern Insurance Agency License Number 0443354 21 Orchard Lake Forest, CA 92630 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED The PM Group 210 -88 Bake Parkway #1000 Lake Forest, CA 92630 -0000 INSURERA American Economy Insurance CO.(S feco) INSURER B: LIMITS INSURER C. 3300 hSURER O 02BO9220930 INSURER E: 06/10/2009 COVFR nFn THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAYBE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ILT R dD TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 3300 GENERAL LIABILITY 02BO9220930 06/10/2008 06/10/2009 EACH OCCURRENCE $ 2,000,000 Jennifer McCloskey, CISR /JLP q" M�- X COMMERCIAL GENERAL [ABILITY DAMAGE TO RENTED $ 2,000,00 CLAIMS MADE a OCCUR MED EXP (Anyone moron) $ 10.000 PERSONAL S ADV INJURY $ 2.000.000 A GENERAL AGGREGATE S 4,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP /OP AGG S 4,000,00 X POLICY PRO- LOC JECT AUTOMOBILE LIABILITY PNV AUTO 02808220830 06/10/2008 06/10/2009 COMBINED SINGLE LIMIT IEa accident) $ 2,000,00 BODILY INJURY (Per �=,I) $ A ALL OWNED AUTOS SCHEDULEDAUTOS HIRED AUTOS NON -OWNED AUTOS X BODILY INJURY (Par accimt) $ X PROPERTY DAMAGE (Per accidanq $ GARAGE LIABILITY AUTO ONLY -EA ACCIDENT S OTHER THAN EAACC $ ANY AUTO S AUTOONLY: AGO EXCESSJUMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR FI CLAMS MADE AGGREGATE $ 8 $ DEDUCTIBLE $ RETENTION $ WORKERS COMPENSATION AND TWO STATU- OTH- EMPLOYERS' LIABILITY ANY PROPRIETORIPARTNER/EXECUTNE E L. EACH ACCIDENT $ EL DISEASE - EA EMPLOYEE $ OFFICER/MEMBER EXCLUDED? If yes, dwribe ur er SPECIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT $ OTHER DESCRIfT19N OF OPERATIONS f LOCfATIONS I VEHICLES / EXCLUSIQNS ADDED j3Y ENDORSEMENT / SPECIAL PROVISIONS ertificate holder is named as addtional insured per attached endorsement BP7057 07/0 with respect to eneral Liability only, MAIL: tfinnigan$city.newport- beach.ca.us except: 10 day notice of cancellation due to non payment of premium. CERTIFICATE HOLDER CANCELLATION ACORD 26 (2001108) ® ACORD CORPORATION 1988 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVORTOMAIL City of Newport Beach3DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, Attn: Tara Finnigan BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY 3300 Newport Blvd OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. Newport Beach, CA 92663 AUTHORIZED REPRESENTATIVE ((��'�����,,���,,� Jennifer McCloskey, CISR /JLP q" M�- ACORD 26 (2001108) ® ACORD CORPORATION 1988 IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 26 (2001108) " REPRINTED FROM THE FORMS LIBRARY ' °' Safec� BUSINESSOWNERS BP 70 57 07 02 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -DESIGNATED PERSON OR ORGANIZATION This endorsement modifies Insurance provided under the following: BUSINESSOWNERS COVERAGE FORM — Section II — Liability SCHEDULE* Name of Person or Organization: WHO IS AN INSURED (Section C) is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out of your operations or premises owned by or rented to you. Information required to complete the Schedule, if not shown on this endorsement, will be shown in the Declarations. Bafem wand the Salem logo are trademarks of Salem Corporation BP 70 57 07 02 EP Business license Finnigan, Tara From: Carol Ferguson ]carolf @pmgrp.net] Sent: Tuesday, October 21, 2008 4:42 PM To: Finnigan, Tara Subject: Business license Hi Tara, Just wanted to let you know that I purchased the business license. The number is below. Thanks, Carol Business License Application - eReceipt 10/21/2006 Congratulations Carol! Your Business License Application has been submitted and your payment has been received. now be reviewed by a staff member and then approved accordingly. Please wait 10 business Business License Certificate via Postal Service. You may login to Quest at any time to view the status of your request. Receipt No: 155010743 Business License #: BT30025677 Total Amount: $227.00 Yours truly, 0 10/27/2008 Page 1 of 1 Your application will days to receive your OCT 14 2008 CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 3 October 14, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Tara Finnigan, Public Information Manager 949 -644 - 3035, tnnigan@cityi.newport- beach.ca.us SUBJECT: Printing and Mailing of City Manager's Community Newsletter — Approval of a Professional Services Agreement with The PM Group, Inc. RECOMMENDATION: Approve a Professional Services Agreement with The PM Group, Inc. of Lake Forest, CA for the printing and mailing of the City Manager's community newsletter at a not to exceed price of $111,072 and authorize the Mayor and City Clerk to execute the Agreement. DISCUSSION: Since its inception 2005, the City Manager's community newsletter has been a popular method for communicating information about current City projects and issues with the residents and businesses of Newport Beach. The document is presented in a straightforward, letter -style format to quickly share facts and information. This year, staff determined that increasing the frequency of the newsletter's distribution — to up to eight times per year — would help to provide more consistent information to the community and meet the City Council's goal of enhancing communication with our residents. Due to the volume of newsletters distributed (54,000 per issue), the printing and mailing tasks are handled by an outside vendor. With the additional newsletters planned for this year, staff determined it would be timely and cost effective to solicit new proposals for the newsletter's printing and mailing. Seven companies submitted bids and The PM Group, Inc. was selected based upon the firm's qualifications and creative, cost - saving approach to the project. The consultant has recommended a minor format change that will save the City approximately $3,000 per issue or about $24,000 per year in mailing costs. In addition, The PM Group, Inc. has outlined a project schedule that provides for • PSA for Printing and Mailing of City Moer's Community Newsletter October 14, 2008 Page 2 a shorter turnaround time, which will result in the more timely delivery of information to our community. As outlined in the attached scope of work, The PM Group, Inc. will coordinate the printing of the newsletter and envelopes, and the postage, mailing, and distribution of up to eight issues of the newsletter during the next 12 months. Environmental Review: The City Council's approval of this item does not require environmental review. Public Notice: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Funding Availability: There are sufficient funds available in the following account: 0310- 8080, City Manager Professional and Technical Services. Submitted by: Tara Finnigan Public Information Manager Attachments: Professional Services Agreement