CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report

July 2, 2018
CONSENT AGENDA

TO: Honorable Mayor and City Council Members

SUBMITTED BY: Sharon Friedrichsen, Director of Budget and Contracts

APPROVED BY: Chip Rerig, City Administrator

Resolution No. 2018-067, authorizing the City Administrator to execute Amendment No.
1 to a Professional Services Agreement with Peninsula Messenger Service for a new
SUBJECT:
contract term to end December 31, 2018 and an increase in the contract of $60,900 in
FY 18-19 budgeted funds for a new not-to-exceed amount of $203,025.

RECOMMENDATION:
Adopt Resolution No. 2018-067, authorizing the City Administrator to execute Amendment No. 1 to a
Professional Services Agreement with Peninsula Messenger Service for a new contract term to end December
31, 2018 an increase in the contract of $60,900 in FY 18-19 budgeted funds for a new not-to-exceed amount of
$203,025.

BACKGROUND/SUMMARY:
At its May 1, 2018 regular meeting, as part of the budget evaluation process, the Council was presented with a series
of options regarding home mail delivery: (1) continue to fund the service with no changes; (2) continue to provide the
service to participants who meet certain eligibility criteria; (3) reduce the number of home mail delivery days per week;
or (4) discontinue funding for home mail delivery service.

Council directed staff to explore option (2) and work with the City Attorney's Office to fully understand all of the legal
implications of the implementation of a process for applying standards, terms and conditions for home mail delivery
going forward and to work with Peninsula Messenger Service to streamline internal processes for managing the
service.

The City currently has a three-year contract with Peninsula Messenger Service for residential mail delivery with a
term set to expire June 30, 2018 and a not-to-exceed amount of $142,125. Funds in the amount of $60,900 for the
continued provision of mail service were approved as part of Fiscal Year 2018-2019 Budget.

According to the Carmel-by-the-Sea Municipal Code, contracts exceeding $24,999 shall be entered into only by
Council authorization. The proposed recommendation for City Council consideration is to authorize the City
Administrator to execute an amendment to an existing agreement with Peninsula Messenger Service to extend the
contract six (6) months for a term ending December 31, 2018 with a new not-to-exceed amount of $203,025. The
additional time will allow us to build capacity to address the Council's direction during the next several months, and
return with solutions for the Council's consideration.
FISCAL IMPACT:
Funds in the amount of $60,900 for the continuance of home mail delivery service were approved in the Fiscal
Year 2018-2019 budget.

PRIOR CITY COUNCIL ACTION:

The City has contracted to provided home mail delivery service for the past 17 years.
ATTACHMENTS:

Attachment 1 - Resolution 2018-067, PMS contract amendment

Attachment 2 - Exhibit A - PMS Contract amendment
 Attachment 1

RESOLUTION 2018-067
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA
AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE AMENDMENT NO. 1 TO A
PROFESSIONAL SERVICES AGREEMENT WITH PENINSULA MESSENGER SERVICE
FOR A NEW CONTRACT TERM TO END DECEMBER 31, 2018 AND A NEW NOT-TO-
EXCEED AMOUNT OF $203,025.

WHEREAS, part of the City’s character is the absence of house addresses and the use of post
office boxes at the local post office; and

WHEREAS, some residents are unable to collect their mail at the local post office; and

WHEREAS, the City currently utilizes a contracted firm for on-site mail delivery service; and

WHEREAS, the contract with Peninsula Messenger Service, was originally entered into on
September 14, 2015, with the contract term ending June 30, 2018 and a not to exceed amount of
$142,125; and

WHEREAS, at its June 5, 2018 regular meeting Council provided staff direction for the
modification of the on-site home mail delivery program; and

WHEREAS, funds in the amount of $60,900 for the continued provision of mail service were
approved as part of the Fiscal Year 2018-2019 Budget; and

WHEREAS, to continue to provide for on-site mail delivery while staff implements Council
direction the contract will require an amendment to extend the contract through December 31, 2018
with a new not to exceed amount of $203,025.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF

CARMEL-BY-THE-SEA does hereby:

Authorize the City Administrator to execute Amendment No. 1 to a Professional Services

Agreement with Peninsula Messenger Service for a new contract term to end December 31,
2018 and a new not-to-exceed amount of $203,025.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA

on this 2nd day of July 2018 by the following roll call vote:
 Attachment 1

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

SIGNED: ATTEST:

Steve G. Dallas, MAYOR Thomas A. Graves, MMC

City Clerk

RESOLUTION 2018-067
 Attachment 2

Exhibit A

Amendment No. 1 to Contract AGREEMENT

ADM-PSA-PMS-0028-15-16

1. This amendment (the "Amendment") is made by City of Carmel-by-the-Sea and Peninsula

Messenger Service, parties to agreement ADM-PSA-PMS-0028-15-16AMEND (the "Agreement")
dated 14 September, 2015.

2. The Agreement is amended as follows:

a. The Term of the Agreement is modified as follows:

The work under this Contract shall be extended to December 31, 2018, unless services are no
longer needed prior to December 31, 2018. The parties may agree to extend or amend this
contract prior to its expiration.

b. The Compensation of the Agreement is modified as follows:

The contract is amendment to increase by $60,900. The total amount of the contract from
September 14, 2015 to December 31, 2018 shall not exceed $203,025. This amount shall be
based upon the hourly rates as stipulated within Exhibit A of the original agreement.

3. Except as set forth in this Amendment, the Agreement is unaffected and shall continue in full force
and effect in accordance with its terms. If there is conflict between this amendment and the
Agreement or any earlier amendment, the terms of this amendment will prevail.

CONSULTANT:

By: _____________________________ Date: ______________________

CITY:

By: _____________________________ Date: ___________________

Chip Rerig, City Administrator

ATTEST:

By: _____________________________ Date: ______________________

Thomas A. Graves, MMC
City Clerk