1998 S Tax - Staffdermann Consulting Services Inc SCS Direct Mail Marketing Professional Services Contract 06-22-1998-9b

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3. Handling. SCS shall have the ability to print and handle all bills and/or notices for OCTD. SCS will fold, perforate and insert bills and/or notices with a #9 return envelope, seal the envelopes; insure that the addresses are visible through the window envelopes; meter the envelope with the appropriate postage; sort, bundle, tray and deliver to the main branch office of the U.S. Postal Service in Fayetteville, North Carolina, all bills and/or notices in a timely manner. 4. Time. Within one to two business days of the receipt by SCS of collection information from OCTD, SCS 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. SCS expressly recognizes that time is of the essence. SCS will take the necessary steps to insure that OCTD's bills and/or notices, which requires bills and/or notices to go out on a daily basis, will not be interrupted. SCS 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 SCS 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 no additional cost to OCTD but SCS shall notify OCTD immediately if it becomes necessary to use a back up service and provide OCTD with the details of the same. SCS will obtain confidentially agreements from such services, which are as inclusive as the confidentiality provisions agreed to by SCS, prior to SCS providing the back up service with any information from OCTD. 5. Postal. SCS will maintain at its expense the necessary postal equipment to affix postage to each of OCTD's bills and/or notices. SCS will provide OCTD with and accounting of postage charges on a monthly basis. SCS also will maintain the necessary software essential to receive the largest postage discounts for which OCTD may qualify and shall maintain up-to-date knowledge as to all U.S. mail regulations for bulk mailings. SCS shall utilize bar coding and arrange/sort the mail to qualify for the lowest postage charge consistent with USPS's standards. SCS shall maintain the necessary documentaion and equipment so as to be able to track mail through the postal system. Further, SCS shall update zip codes for OCTD's customers with every bill and/or notice cycle. SCS shall provide OCTD with a monthly manifest which shows details of the total bills and/or notices printed, mailed and dollars billed to OCTD for postage and services. SCS shall also make periodic recommendations for improving mail deliverability, postage savings and reducing mail cost. 6. Supplies. SCS shall provide sufficient stationery, size 8 1/2"xl 1", on which to print OCTD's bills and/or notices. SCS shall provide Number 10 outside envelopes, Number 9 return envelopes, printing cartridges and ink for laser printers and for postage machines. SCS shall provide all necessary storage for materials used in connection with the services performed by SCS under this Agreement. Further, SCS shall maintain additional supplies stored in a facility other than that normally used for printing bills and/or notices for OCTD's customers and at a location that is readily accessible to facilitate minimum interruption of OCTD's mailings should a fire, theft or accident destroy mailing supplies at the printing facilities of SCS. SCS shall also maintain at an alternative facility such equipment, software and accessories as would be necessary to continue OCTD'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 SCS to print and mail OCTD's bills and/or notices. SCS shall implement such procedures as are necessary to ensure that OCTD is not billed for supplies not used in connection with services under this Agreement. SCS shall maintain such records, including daily records, as are necessary to verify the use of supplies and postage by SCS in connection with service under this Agreement and shall make those records available to OCTD under reasonable notice. OCTD shall not be responsible for the cost of supplies which