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HomeMy WebLinkAboutAgenda - 09-04-2001-8fi ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 4, 2001 Action Agenda Item No. ~~ SUBJECT: Contract Renewal with Total Billin ,Inc. for Animal Tax Mailin DEPARTMENT: ,Health .PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Contract Rosemary Summers, ext 2411 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider renewing the contract between the Orange County Health Department and Total Billing, Inc. for animal tax mailings. BACKGROUND; Since 1998, the Health Department has contracted with Total Billing, Inc. (formerly SCS, Inc.) to print and mail all animal tax renewal notices on a monthly basis. This is the same firm that the Orange County Revenue Department contracts with for other county tax mailings as well. The contract is for the period September 15, X001 to September 15, 2004 with a maximum of $40,1$5 for the entire period. There have been approximately 40,000 tax notices mailed each year and if the number remains the same, there will an approximate annual cost of $11,400. The contract allows for as many as 47,000 to be mailed each year. Invoices are based on the actual number of pieces printed and mailed at 28.5¢ each. Animal Control Services hopes to increase the 40,000 cards mailed to 47,000 per year by the end of the three year period through improved data provided by the new software recently installed in the office. As of July 30, 2001, the database contains 36,485 registered dogs and cats with 28,555 of those with current rabies vaccinations far a 78.3% rabies vaccination rate. FINANCIAL IMPACT: $13,314 has been included in the approved budget for this current fiscal year to cover the cost of this contract, which is more than the annual $11,400 amount for the current level of 40,000. The additional amount may be needed for increased postage costs or numbers mailed at higher than last year's actual level. RECOMMENDATION(S): The Manager recommends that the Board approve the contract as written and authorize the Chair to sign. z BILLING AND/OR NOTICE SERVICES AGREEMENT BETWEEN TOTAL BILLING, INC AND THE COUNTY OF ORANGE ORANGE COUNTY HEALTH DEPARTMENT THIS AGREEMENT is made effective the 15~' day of September 2001 by and between Total Billing, Inc, a North Carolina Corporation, with its primary offices at 3637 Sycamore Dairy Road, Fayetteville, North Carolina 28303 (hereinafter "TBI") and the County of Orange, a unit of local government, for its Health Department (hereinafter "OCHD"). TBI has represented to OCHD that it can offer it's services to OCHD in the processing, printing, labeling, metering, sorting, and handling of bills and/or invoices on a daily basis; and OCHD is willing to provide TBI an opportunity to perform such billing and/or notice services for OCHD according to the following terms: I. DUTIES OF TBI OCHD will provide TBI .with customer collection information including but not limited to collection data for each customer and their current addresses by providing a %z", 9 track mag tape, a 3 %z" or 5 '/a" diskette or compressed data transfer by modem. Upon receipt of such customer collection information, TBI shall be responsible for and agrees to furnish all labor, materials, equipment, quality control procedures and supervision required for the completion in a good and workman-like manner, the services set forth below: 1. Computer Processing. TBI shall process the collection information received from OCHD through a Coding Accuracy Support System (CABS) to certify the list and code each record with carrier-route, zip plus four, DPBC. TBI will standardize records and correct addresses, remove punctuation, and enhance lists where reasonably possible. It will also search and replace strings of information from field to field. Further, TBI will seazch and removed from records mathematical functions,. such as greater than, less than, equal to and not equal to. TBI will search for individual records requested by OCHD. A list of all corrections shall be sent to OCHD. TBI shall also maintain the necessary computer equipment to modem data or load the mag tape/diskette provided by OCHD. TBI shall make all necessary software changes for computer processing and printing at no additional cost to OCHD. 2. Printing. TBI shall print bills and/or notices using the forms attached hereto as Exhibit A. TBI shall print all bills and/or notices on a high quality laser printer using "OCR" fonts for OCHD remittance processor, postal fonts with bar codes for addresses and "UPC" fonts far baz codes for work with WDR reader. TBI shall also maintain the ability to print variable messages on the bills and/or notices when such messages are provided by OCHD and to change messages on /_ each bill and/or notice when requested. Bills and/or notices will be printed on cazd stock and perforated. Minor changes to the format of bills and/or notices will be made by TBI when requested by OCHD at no additional charge. 3. Handling. TBI shall have the ability to print and handle all bills and/or notices far OCFID. TBI will perforate bills and/or notices; meter the cazd stock with the appropriate postage; sort, bundle, tray and deliver to the main branch office of the U.S. Postal Service in Fayetteville, North Cazolina, all bills and/or notices in a timely manner. 4. Time. Within one or two business days of the receipt by TBI of collection information from OCHD, TBI will perform the necessary computer processing, printing and handling services described in this agreement and deliver the bills and/or notices to the U.S. Post Office, main branch office, Fayetteville, North Carolina. TBI expressly recognized that time is of the essence. TBI will take the necessary steps to insure that OCHD's bills and/or notices, which requires bills and/or notices to go out on a daily basis will not be interrupted. TBI shall maintain a relationship with other reliable bill and/or notice processing and mailing services to insure that no significant interruption of service occurs should TBI encounter obstacles preventing it from performing the services set forth herein at its location in Fayetteville, North Carolina. Such back up service shall be at not additional cost to OCHD but TBI shall notify OCHD immediately if it becomes necessary to use a backup service and provide OCHD with the details of the same. TBI will obtain confidentially agreements from such services, which aze as inclusive as the confidentiality provisions agreed to by TBI, prior to TBI providing the back up services with any information from OCHD. S. Postal. TBI will maintain at its expense the necessary postal equipment to affix postage to each of OCHD's bills and/or notices. TBI will provide OCI-iD with an accounting of postage chazges on a monthly basis. TBI also will maintain the necessary soflwaze to receive the lazgest postage discounts for which OCHD may qualify and shall maintain up-to-date knowledge as to all U.S. mail regulations far bulk mailings. TSI shall utilize bar coding and arrange/sort the mail to quality far the lowest postage chazge consistent with USPS's standazds. TBI shall maintain the necessary documentation and equipment to be able to track mail through the postal system. Further, TBI shall update zip codes for OCHD's customers with every bill and/or notice cycle. TBI shall provide OCHD with a monthly manifest which shows details of the total bills and/or notices printed, mailed and dollars billed to OCHD for postage and services. TBI shall also make periodic recommendations for improving mail deliverability, postage savings, and reducing mail cost. 4 6. Supplies. TBI shall provide sufficient card stock, size 4" by 6", on which to print OCHD's bills and/or notices. TBI shall provide printing cartridges and ink for laser printers and for postage machines. TBI .shall provide all necessary storage far materials used in connection with the services performed by TBI under this Agreement. Further, TBI shall maintain additional supplies stored in a facility other than that normally used for printing bills and/or notices far OCHD's customers and at a location that is readily accessible to facilitate minimum interruption of OCHD's mailings should a fire, theft or accident destroy mailing supplies at the printing facilities of TBI. TBI shall also maintain at an alternative facility such equipment, software and accessories as would be necessary to continue OCHD's mailings within three business days or less should an accident or disaster, whether man-made or act of God, were to destroy the primary facilities normally used by TBI to print and mail OCHD's bills and/or notices. TBI shall implement such procedures as aze necessary to ensure that OCHD is not billed for supplies not used in connection with services under this Agreement. TBI shall maintain such records, including daily records, as aze necessary to verify the use of supplies and postage by TBI in connection with. service under this Agreement and shall make those records available to OCHD under reasonable notice. OCHD shall not be responsible for the cost of supplies, which TBI cannot document, were used pursuant to this Agreement. OCHD shall not be responsible for the cost of supplies until they are actually used in the printing of bills and/or notices. 7. Quality. TBI shall deliver bills and/or notices to the U.S. Post Office for OCHD for deliver. TBI shall implement safeguards and checks to avoid doubles, wrong addresses, improper dates, and other erroneous information in bills and/or notices. Every bill and/or notice will be sent each day with the highest level of quality OCHD would expect. Any bills and/or notices which are not presentable or have incorrect information not supplied by OCHD, will be reprinted at TBI's expense. TBI warrants that it has the ability and resources to provide bill and/or notice services to OCHD's customers as set forth here and on a timely basis and at the quality required by OCHD. Bill and/or notice. card stock shall be not less than those in use by OCHD at the time this Agreement is executed. IY. TERM/CANCELLATION 1. Term. The initial term of this Agreement shall be for three yeazs beginning on the first day of the month following successful testing and approval by OCHD to proceed, and upon such approval sha11~ continue for 3 years unless terminated pursuant to the terms set forth herein. Termination without cause at the end of the term shall be effected by ninety days advance written notice to the other party of the intent to terminate the Agreement. ~. 2. Cancellation for Cause. Upon default by either party of its obligations pursuant to this Agreement, including failure of either party to perform or fulfill any covenants or conditions set forth herein, the non-defaulting party may terminate this Agreement upon ten days written notice ifthe default is not cured within seven business days after notice of failure to pay within five business days after notice for any other default. 3. Substitute Performance. OCHD shall have the right to hire a third party to perform any act required of TBI by this Agreement if TBI fails to perform that act or correct the default within twenty-four hours notice. 4. Governmental Action. In the event any regulatory body, court, legislative body or administrative agency prohibits OCIiD from having the bill and/or notice services contemplated under this Agreement performed by a party other than OCI3D or attaches conditions to such performance which would be unduly burdensome in OCHD's opinion, this Agreement shall terminate immediately upon notice to TBI by OCHD. III. PAYMENT TO TSI 1. Initial Price. TBI will invoice OCFID monthly for all services. OCHD agrees to pay TBI within 15 days of receipt of an invoice for services performed as follows: (a) for the initial three-year term of this Agreement, computer processing, printing, handling and other labor costs together with all supplies including bill and/or natice card stock shall be: Estimated Annual Charges (based on numbers) each T~umber of bills -and/or notices Rate Tatal 47,000 Postage $0.105 $ 4,935. $0.18 8 460. Annual total for printing, postage, and mailing: $13,395 (b) A Burn representing an estimate for postage to be metered by TBI shall be paid by OCHD to TBI two weeks prior to the mailing. (c) Total cost of this three-yeaz Agreement will not exceed $40,185. Actual costs aze based on the actual number of cazds printed and mailed. 2. Paper Price Increase. At the end of the first yeaz, TBI shall have the right to increase its costs for card stock, but if it does so, OCHD shall have the option to terminate this Agreement within thirty days of the notice of increased prices, if these price increases aze outside of normal limits established by paper industry standazds. If unforeseen increases or decreases in the paper industry should affect the supply or price of paper products, both parties will have the right to request, an adjustment in card stock prices during the current year. 3. Price Re-negotiation. Within one hundred and twenty days of the end of the three-yeaz term, OCHD and TBI will enter into negotiations concerning the contract price set forth in III 1. (a) above. The price reached pursuant to such negotiations. shall be within a price cap mutually defined by OCHD and TBI. IV. CONFIDENTIALITY AGREEMENT TBI and OCHD agree to execute a confidentiality disclosure agreement in the form attached hereto as Exhibit B and incorporated herein by title. V. INDEPENDENT CONTRACTOR If entering into and complying with this Agreement, TBI acknowledges that it is at .all times performing as an independent contractor. Nothing in this Agreement shall constitute or be construed as a creation of a partnership or joint venture between the parties hereto. VI. INSURANCE 1. Insurance. During the term of this Agreement, TBI shall maintain at its expense, property/public/liability insurance coverage of at least $500,000 and unlimited business interruption insurance not to exceed twelve months. TBI shall provide OCHD with a certificate of insurance. VII. TESTING As part of the consideration for this Agreement, TBI agrees to provide to the OCHD adequate testing of bills and/or notices to insure the accuracy of each individual bill and/or notice. If necessary each category of cycles will be printed in its entirety until the OCHD is satisfied with their correctness. VIII. MISCELLANEOUS 1. TBI shall have no right to assign the obligations or benefits under this Agreement without having first secured the written consent of OCHD. 2. If any part or parts of this Agreement aze held to be invalid, the remaining parts of the Agreement shall continue to be valid and enforceable as to the parties hereto unless the same shall clearly defeat the intent of the parties in entering into this Agreement. 3. A party's waiver of a breach of any term of this Agreement shall not constitute a waiver of any subsequent breach of the same or another provision in the Agreement. 4. The provisions of this Agreement shall be governed by the laws of the state of North Cazolina. 5. OCHD reserves the right to enter upon the premises of TBI and to monitor, inspect and observe TBI operations at the time that it is processing OCHD's bills and/or notices. 6. TBI will perform all services at its facility and agrees not to outsource any work unless authorized by the OCHD. 7. On a daily basis TBI will fax bill and/or notice counts to designated offices. S. TBI will be capable of printing on either side of the customer's bill and/or notice fixed or variable information provided by the OCHD. 9. TBI will be capable of printing OCR, POSTNET, and UPC fonts which can be read by the OCHD's or its vendor's equipment. 10. TBI will provide local representatives to be available to OCHD on a daily basis during normal business hours. 8 IN WITNESS WHEREOF, the parties have hereunto signed this Agreement in their official capacities on the day and year listed below. FOR AND ON BEHALF OF ORANGE FOR AND ON BEHALF OF COUNTY HEALTH DEPARTMENT TOTAL BILLING, INC. Rosemary L. Summers, Health Director Greg C. Stadermann Date: Date: FOR AND ON BEHALF OF THE COUNTY OF ORANGE Stephen Halkiotis, Chair Board of Commissioners Date: "This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act." Kenneth T. 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COUNTY OF ORANGE WITNESSETH: THIS AGREEMENT, made and entered into this 15`x' day of September 1998 by and between GREG C. STADERMANN and TOTAL BILLING, 1NC. (individually and collectively referred to as "STADERMANN") and ORANGE COUNTY, a unit of local government, for its Health Department, (hereinafter referred to as "OCHD"). WHEREAS, OCHD desires to obtain certain confidential and proprietary information from STADERMAN for the sole purpose of determining the applicability of the process developed by STADERMANN as described on the attached Exhibit "A" (the "STADERMANN PROCESS") to the services provided by TOTAL BILLING, INC. to public and private consumers and to otherwise evaluate the STADERMANN PROCESS; and; WHEREAS, STADERMANN is willing to provide such information and describe the STADERMANN PROCESS to OCHD for the limited purpose and under the terms and conditions set forth herein; and WHEREAS, OCHD will provide STADERMANN information concerning the taxpayers of Orange County which, although public in one form or another, will be formatted and require programming to format in a manner otherwise unavailable to the public; and; WHEREAS, OCHD is willing to provide such information to STADERMANN for the limited purpose and under the terms and conditions set forth herein and in the Billing and/or Notice Services Agreement for which this Agreement is an exhibit. NOW, THEREFORE, in consideration of the mutual promises set forth herein, the parties hereto agree as follows: l . DEFINITI N. "CONFIDENTIAL INFORMATION" as used herein shall mean all information, documentation, descriptions; processes, equipment, hazdwaze, and any other matter or thing, whether theoretical, consisting of intellectual properties, equipment or otherwise, disclosed or made available to OCHD by STADERMANN and relating to the STADERMANN PROCESS, and all information, documentation, devices and prototypes developed, produced, disclosed, described, whether or not theoretical, or in concept only, or otherwise. iz Z. TRADE SECRET ACKNOWLEDGMENT. OCHD acknowledges and agrees that the CONFIDENTIAL INFORMATION is a valuable trade secret of STADERMANN, and that any disclosure or unauthorized use of any part thereof of any of the CONFIDENTIAL INFORMATION will cause immediately, irrepazable and substantial harm and loss to STADERMANN. 3. TREATMENT ~~CO~TFIDENTIAL FORMATION. In consideration of the disclosure to OCHD of CONFIDENTIAL INFORMATION, OCHD agrees to treat CONFIDENTIAL INFORMATION in confidence and to undertake the following additional obligations with respect thereof: (a) To us CONFIDENTIAL INFORMATION for the sole purpose of evaluating the ~STADERMANN PROCESS with respect to its usefulness and applicability to the service provided by TBI to the public and private consumers; (b) Not to disclose CONFIDENTIAL INFORMATION outside of TBI; (c) To limit dissemination of CONFIDENTIAL INFORMATION to only those of TBI's employees who have a need to know to perform the limited tasks set forth in pazagraph (a) above; (d) Not to copy CONFIDENTIAL INFORMATION or any portion thereof; and (e) To return CONFIDENTIAL INFORMATION and all documents, notes or physical evidence thereof, recordings, or any other reproduction, whether written, audible or any other medium to STADERMANN upon demand by STADERMANN or at any time that OCHD decides that OCHD is not interested in pursuing the implementation of the STADERMANN PROCESS in any form, whichever occurs first. OCHD and STADERMANN acknowledge that, OCHD is a local government and a political subdivision of the State of North Carolina and as such is subject to the Public Records Laws of the State of North Cazolina. OCHD's agreement contained in this paragraph to protect STADERMANN's confidential information does not require OCHD to violate any such laws and does not require OCHD to litigate and pay for the litigation of its right to withhold access, copies, use or confidentiality of the CONFIDENTIAL INFORMATION. OCHD agrees to notify STADERMANN of any claim it receives under the Public Records Laws of North Cazolina, for access, copies or use of the CONFIDENTIAL INFORMATION and agrees that STADERMANN may, at its election and expense, defend the claim in OCHD's name provided STADERMANN agrees in writing before undertaking such a defense, to indemnify and hold OCHD, its officials and employees, harmless from any 13 consequence of the defense. Nothing in this section requires OCHD, its officials ar employees, to subject itself and themselves to criminal liability and each may independently act in good faith to protect itself and themselves from criminal liability. OCHD is not responsible, in money damages, for the access, use, or copying of the CONFIDENTIAL INFORMATION that is not authorized by OCHD. OCHD agrees, in good faith, to take all reasonable steps to prevent the unauthorized use or transfer of the CONFIDENTIAL INFORMATION. 4. INFORMATION DISCLOSED TO STADERMANN. Any and all information delivered or disclosed to STADERMANN as a result of or related to this Agreement shall be received and treated by STADERMANN on anon-confidential basis, any restrictive or proprietary legend of "TBI" or others to the contrary notwithstanding. Notwithstanding the non-confidential basis upon which information may be delivered or disclosed to STADERMANN, and with the express acknowledgement by STADERMANN of the non-confidential nature of the information delivered or disclosed to STADERMANN, STADERMANN covenants and agrees that it will use the information provided to it by OCHD solely for the purpose of performing its duties under the related Billing and/or Notice Services Agreement and will under no circumstances sell, give or otherwise make available to any third party, for any purpose whatsoever unrelated to its performance under the related Billing and/or Notice Services Agreement, the information provided to it by OCHD. STADERMANN and OCHD agree that the obligation of STADERMANN herein is one which is specifically enforceable by OCHD and STADERMANN agrees that if it becomes necessary for Orange County to bring an action to specifically enforce this agreement that STADERMANN will pay OCHD the cost of the action and its reasonable attorneys' fees in pursuing the action. In the event STADERMANN is presented with a claim under the Public Records Laws of the State of North Carolina for the information provided to it by OCHD, the provisions in the preceding paragraph relating to claims under the Public Records Laws of the State of North Carolina pertain and those provisions shall read as though STADERMANN is OCHD, and OCHD is STADERMANN. 5. VIVAL OF OBLIGATIO S. The restrictions and obligations of paragraphs 3 and 4 of this Agreement shall survive any expiration, termination, or cancellation of this Agreement and shall continue to bind OCHD and STADERMANN, their successors and assigns. 6. NEGATION_ OF LICENSES. Except as expressly set forth herein, no rights or licenses, expressed or implied, are hereby granted to OCHD or STADERMANN as a result of or related to this Agreement. 14 7. APPLICABLE LAW. This Agreement shall be construed and enforced in accordance with the laws of the State of North Carolina. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be fully executed. (SEAL) GREG C. STADERMANN, Individually WITNESS Rosemary L. Summers, Health Director Orange County Stephen Halkiotis, Chair Orange County Board of Commissioners