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CM-11-05-108ROU N D ROCK, TEXAS PURPOSE. PASSION. PROSPERITY. Item Caption: City Manager Approval Summary Sheet Consider executing a Customized Statement of Agreed Pricing with UPS Freight Approval Date: May 27, 2011 Department: Finance Department Project Manager: Cheryl Delaney, Director of Finance Item Summary: Attached is a copy of the city's customized Statement of Agreed Pricing (SOAP) with UPS Freight. This SOAP will provide the City a discount rate to our already existing agreement with UPS Freight. This agreement should provide the City with an estimated savings of sixty (60) percent below what we are currently paying for items that don't fall within UPS's Small Parcel Shipment Designation. Strategic Plan Relevance: 8.0 Maintain and enhance public confidence, satisfaction and trust in City government. 13.0 Continue and enhance sound business and financial practices and tools. Cost: No funding directly tied to this agreement Source of Funds: REV. 6/10/10 UPS Fright P.O. Box 1216U Richmond, VA 23218-'1216 S 2eA Statement of Agreed Pricing This is not a transportation contract. This document reflects the pricing agreement of UPS Freight (hereinafter 'Carrier') for Customer and shall supersede and cancel all existing pricing provisions on the effective date shown below. Customer: CITY OF ROUND ROCK 221 E MAIN ST ROUND ROCK TX 78664 Customer Number: 35493054 Pricing Group: 00321886 Effective Date: Expiration Date: Pricing Assumptions: Average monthly revenue: $300.00 Prices are subject to change in the event Carrier does not realize anticipated efficiencies due to changes in the volumes, mix of freight, or if operating conditions are materially different than advertised by Customer or profit targets are not realized. Pricing Provisions: U.S.: UPGF 560 Base Rates: Canadian: UPGF 525 U.S. Class Ratings: Actual class ratings shown in the STB NMF 100 Series Canadian Class Ratings: Actual class ratings shown in the STB NMF 100 Series Fuel Surcharge: See Appendix B Discounts Between U.S. and U.S. OB PREPAID OB COLLECT IB COLLECT 3rd PARTY LTL and MC IntraState Direct: 68.00% 68.00% 68.00% 68.00% Absolute Minimum Charge: $85.00 $85.00 $85.00 $85.00 LTL and MC InterState Direct: 68.00% 68.00% 68.00% 68.00% Absolute Minimum Charge: $85.00 $85.00 $85.00 $85.00 LTL and MC InterState InDirect: 68.00% 68.00% 68.00% 68.00% Absolute Minimum Charge: $85.00 $85.00 $85.00 $85.00 Discounts Between U.S. and Canada OB PREPAID OB COLLECT IB COLLECT 3rd PARTY LTL and MC InterState Direct: 68.00% 68.00% 68.00% 68.00% Absolute Minimum Charge: $147.00 $147.00 $147.00 $147.00 LTL and MC InterState InDirect: 68.00% 68.00% 68.00% 68.00% Absolute Minimum Charge: $147.00 $147.00 $147.00 $147.00 NOTE 1: OB means outbound from Customer's Iocations(3). IB means inbound to Customer's locations(s). NOTE 2: 3rd Party means Customer is neither the shipper nor consignee, but is shown on the bill of lading as the 3rd Party payor. NOTE 3: Direct means the origin and destination points are both serviced direct by UPS Freight. NOTE 4: INDIRECT means the origin or destination point is not a direct service point and UPS Freight must interline the shipment with another carrier for delivery completion. If the Base Rates shown above are the UPGF 560 U.S./U.S. and UPGF 525 Canadian - Current level in effect at time of shipment, then Direct discounts apply toINDIRECT shipments, regardless of the INDIRECT discounts shown (if any). Other Pricing Provisions: Trade Show Shipment Pricing: Charges for shipments picked up from or delivered to convention centers or temporary warehouses for Trade Shows will be determined by applying a class 125 rating from the applicable base rates, less any applicable discount shown herein. Commodity rates, unit or pallet rates, freight of all kinds (FAK) class exceptions and STB NMF 100 series class exceptions shown herein (if any) do NOT apply. A trade show shipment charge of $42.00 will apply in addition to all other applicable charges. The trade show shipment charge when on shipments to or from zips 60601-60699 and 27260 shall be $64.00. e.M.f 1-05-1o4 2 of 8 Proprietary and Confidential Quote#: P20110329114423200 Accessorial Services: Additional services beyond pick up, line haul and delivery can be provided for additional charges upon request, or will be assessed where required to complete the transportation service in accordance with the bill of lading contract. When the bill of lading requests an additional service, unless otherwise provided on the bill of lading, the charges will be assessed against the party paying the line haul freight charges. Where the bill of lading is silent with respect to any additional services, and additional services are later requested or required to complete shipment delivery, charges shall be collected from the party requesting or requiring the service irrespective of whether the line haul charges are prepaid or collect unless the party responsible for the line haul freight charges agrees to pay for the additional charges. Except where specifically provided otherwise below, all shipments are subject to rates and charges for additional services as provided in the UPGF 102 Rules Tariff at the level in effect at time of shipment. A complete listing of rules can be viewed online or downloaded from our website at www.upsfreight.com. See Appendix A for frequently used accessorial charges. Liability Limitations: All shipments by Carrier are subject to the cargo liability limits show in UPGF 102 items 166 and 780. Carrier's liability for shipments lost or damaged in its possession shall not exceed the lower of the following: 1) actual invoice value; 2) value limits shown on the bill of lading or in the STB NMF 100 series; 3) value limits for articles other than new, class exception (FAK) ratings or specific named commodities; or 4) $25.00 per pound per package. Carrier's maximum liability is $100,000 per shipment. Excess liability coverage is available. Complete details regarding liability limits can be viewed online or downloaded from cur website at www.upsfreight.com. High Cost Service Area Surcharges: Shipments not rated using current UPGF 560 rates in effect at time of shipments, and destined to the following areas are subject to a High Cost Service Area Surcharge. Manhattan, NY; San Francisco Peninsula, CA; Chicago Loop, IL; Houston, TX; Washington Metro, DC; Los Angeles Metro; CA and Boston Metro, MA. (See UPGF 102 Rules Tariff, Item 757). Other Key Governing Provisions: Governing Tariffs: 1) STB NMF 100 Series (Freight Classification or NMFC); 2) UPGF 102 Series rules tariff; 3) US and Canadian Zip Code Directories; and 4) CFR 49 Hazardous Material Regulations; in effect at tirne of shipment. Discount Limits: Discounts and reductions apply only on shipments that weigh and are rated at weights of less than 20,000 lbs. and occupy 25 linear feet or less of trailer space. In no case shall the after discount charge fall below the established absolute minimum charge. Cube Minimums: Shipments consuming 750 cubic feet or more of the trailer will be subject to a minimum charge if the freight has a density of less than 6 pounds per cubic feet. Shipments exceeding 25 linear feet will be subject to a capacity load minimum charge. The minimums will often be higher than normal LTL rates. See UPGF 102 Rules Tariff, Items 390 and 575. Late Pay Fees: Discount offerings are dependent upon prompt payment of freight invoices within 15 days of receipt for Customers who have been extended credit. In the event payment is not made within 30 days of receipt of freight bill, Carrier reserves the right to retain the services of a collection agency and/or legal counsel to collect any outstanding indebtedness and the liable party shall pay Carrier a collection fee equal to 35% of the unpaid balance. In addition, a service charge of 1.5% per month (or fraction thereof) will be assessed and due on the unpaid balance. (see UPGF 102 Rules Tariff, Item 721). Rate Increases/Cancellation: Unless otherwise specifically provided herein, rates and charges are subject to change periodically without notice when a company -wide annual general rate increase is implemented. In the event Carrier receives no shipments rated under the pricing provisions herein for a period of 120 days, this Statement of Agreed Pricing will be deemed obsolete and subject to cancellation at the sole discretion of Carrier. Commodity Descriptions: To insure assessment of correct freight charges and avoid infractions of federal and state laws, Customer or shipper is required to acquaint themselves with the proper description of articles for the commodities being shipped in accordance with the NMFC. Abbreviated descriptions are permitted provided the NMFC item number and appropriate sub number are shown on the bill of lading. Carrier reserves the right to inspect the contents of packages and weigh the shipment to verify shipper has recorded accurate descriptions and weights on the bill of lading. In the event Carrier determines the commodities have been incorrectly described, Customer will be liable for the freight charges based on the correct descriptions and weights as determined by Carrier. (see NMFC Series 100 Item 360; UPGF 102 Rules Tariff, Items 360, 362, 365, and 990). 3 of 8 Proprietary and Confidential Quote#: P20110329114423200 Customer Locations: This SOAP only applies to the shipping and receiving locations and names listed below. Shipments tendered by or for Customer under other names or for other locations not shown below will be rated at full undiscounted class rates from the applicable tariff at the level in effect at the time of shipment. Carrier invoicing and 3rd party requirements: Carrier and Customer agree all invoices for the above referenced Customer locations are to be mailed to the addresses indicated below. To change or add an alias name, invoicing addresses, or new locations to this pricing or to request a pricing change, contact your Account Manager. Customer agrees to notify UPS Freight of any changes to the invoice mailing address including, but not limited to, changes in paying agents 30 days in advance. Invoice Address CITY OF ROUND ROCK 221 E MAIN ST ROUND ROCK TX 78664 (Invoiced in US Funds) Location 1 CITY OF ROUND ROCK 221 E MAIN ST ROUND ROCK TX 78664 Cust #: 35493054 Alias Names: None Customer payment obligations: Customer agrees to pay Carrier within 15 days of the invoice date. Customer acknowledges that in the event it wishes to pay any Carrier invoice by check, the address to which payment should be sent varies depending upon the location of the "Bill To" address for the applicable shipment. Accordingly, Customer hereby agrees to mail any check for payment of an invoice from Carrier to the address as shown on that invoice. Customer agrees to reference the pro number and amount paid for each pro number on the remittance information accompanying the check. In the event customer disputes the amount charged by Carrier, customer agrees to pay the amount their records indicate is owed Carrier, and submit documentation with their check to explain why freight was short paid. Late payment fees apply. See UPGF 102 rules item 721. 4 of 8 Proprietary and Confidential Quote#: P20110329114423200 Agreement This document fully represents Carrier's pricing agreement with Customer and includes the invoicing requirements of the Customer. Signatures below confirm this Statement of Agreed Pricing has been explained to the Customer including all applications, rules, liability limits, payment requirements, etc. applicable to the transportation service provided by Carrier for Customer. Account Manager Name (print): Account Manager Signature: Customer Contact Name (print): Customer Signature: Date Reviewed with Customer: Charlotte Crawford Sandi Talbert 1. -CU ltie Ackt).EY City ;of Round Rock (,�ssMck,,i.Cal Muter 4-t y IYI aaa R e_]' Date 6- HI 5 of 8 Proprietary and Confidential Quote#: P20110329114423200 Special Service Appendix A Frequently Used Accessorial Services Effective as of October 18, 2010 UPS Freight 102 Rules Tariff UPGF 102 Item Border Processing Fee (Canada C.O.D. Fee Corrected Bill of Lading Detention of Vehicle with Power Detention of Vehicle without Power Extreme Length / Over Dimension Freight (equals or exceeds 15 feet) Hazardous Material 486 430 Rate Flat Charge Or Minimum Charge Maximum Charge None $19.00 6% of C.O.D. amount $84.00 361 500 501 670 565 None $41.50 for each 15 minutes after "free time" expires $113.00 per vehicle per 24 hour period after "free time" expires $23.00 before del. $32.00 after del. $74.00 None None None $79.50 $28.50 per shipment $19.00 per permit $6.00 per off route mile None $5,400 None None None m. - None None Inside Pick Up or Delivery no elevator (stairs) At NY zips 10001-99 and 10101-10292 no elevator (stairs) Lift -gate Service Limited Access Pickup or Delivery (Churches, Construction sites, Schools, etc.) Notification Prior to Delivery 647 Redelivery 830 566 892 755 Residential Pickup or Delivery At NY zips 10001-99 and 10101-10292 753 Reweigh 990 Saturday, Sunday, Holiday, Non -Business Hours Pickup or Delivery Sorting and Segregating 754 751 Storage -Terminal Storage -Public Warehouse 910 $8.26 per cwt. $9.79 per cwt. $20.33 per cwt. $24.72 per cwt. $86.50 $101.50 $104.00 $123.00 $6.35 per cwt. $140.00 $873.50 None $942.50 None $273.00 None None $8.70 per cwt. None None $168.50 per person, per hour $.74 per piece or $1.98 per cwt., whichever is higher $2.49 cwt. per day $3.47 cwt per day $90.00 $38.00 $87.00 $90.00 $106.50 $23.50 None None $912.00 None $377.00 None $80.50 None $23.50 per day None $87.00 per shipment $987.00 NOTE: This chart represents an abbreviated forrn or quick reference guide to frequently used accessorial service charges in effect as of October 18, 2010. Rules and charges are subject to change without prior notice. For full details and updates, see the UPS Freight rules tariff (UPGF 102) on our website (www.upsfreight.com). 6 of 8 Proprietary and Confidential Quote#: P20110329114423200 Appendix B FUEIL RELATED INCREASE APPLICATION OF PERCENTAGE INCREASE (SEE NOTES A, B, C, D and E) All charges for line haul transportation resulting from rates and/or charges named in tariffs, contracts or other agreed pricing provisions making reference to this tariff, are hereby or will on their effective dates be increased as provided below. In applying the provisions of this item, first determine the applicable line haul charge including all applicable increases and/or discounts, if any. The line haul charge so determined will be subject to the percentage increase as provided below. Fuel Price At Least: cents cents 0 cents 0 cents cents cents cents 1 cents 20: cents 20• cents cents 211 cen s 12 cents 1 cents 214 cents cen.. 2 6 cents cents 218 cents 11 1. But Less Than: 1 ,11 1,...1 20 2 cents cents 0 cents 0 cents 0 cents 1. II 11 1811 cents cents cents 0 .00 cents X11 6.60 cents cents 212.00 cents 2 3.00 cents 214.01 cents 11 215.00 cents .11 cents ....v ,..M...,,......,_,.. 21 - 11 cents 21:.00 cents ,..,.. 219. cents 2 9 cents 220.00 cents cens 2 11 cents 2 cents 22 .00 cents 2 cents .0 cents 22 cents 24.0cents 2 cents ........ ......... cents ..11 cents 226 cents L%2 .00 cents 2 cents 8.0 cents 2 : cents X129 06 cents 229 cents 230.00 cents 2 0 cents 3 11 cents 231 cents 232.00 cents 232 cents 33.0 cents 233 cents 234.00 cents 234 cents 235.00 cents 235 cents 36 cents 37 cents 38 cents 9 cents 241.00 cents 0 cents 4 .00 cents 241 cents 24.00 cents 42 cents 4 cents cents cents cents 2 cents 2 8 cents 49 cents 0 cents cents 252 cents 253 cents 254 cents 55 cents 11 On LTL, AQ or Minimum Charge Shipments •.•1•° 11.,0,0 .....1.0 .21.. o 0'0 41 0 1 0'0 On Volume or Truckload Shipments 1• .40 o .1' :1• 11' 2 .4 0 1'r 0 24.00° 24.20' o 24.40%o 24.60 /o :1• 2 .0 1' 0 2 .41'o 6 :1• 0 6.00' o ._ 1• 1' 0 0 cents 3. 0' o 26.60 o 23 .00 cents 238.00 cents 239.06 cents 0 cents 4 11 cents 24..10 cents 246.60 cents cents 248.00 ceras 11 1, .00'/0 4.10°o 14.20% 14.31'o ...................:.. . 14.40' o 4. 0'o 14.60' o 14. 0'o 14.80' o 14.90' o 49.00 cents 0.10 cents r25'I.Od cerds cents 253.00 ceras 2 ceras 25 .10 ceras 256.00 cents 11 4.0 7 of 8 cents cents 258 cents . 11 cents 25 00 cents 259.00 cer is 16.10°0 16.20°o ......:.....:........................... 16.31'o 16.40°o • 16.60 16.70 /o ._:1• i1• 1' 0 V o 2 .60'o 27.80' o 28.00 0 28.20 o 8.40' o 28.60% 28.80' o 9.00' o ... .......:.:.. 29.20°o 29.40 o 2•.60°o 29.80% 1.11' 0 0.1/o 0.4 0. .1 fo 30.80' o 1 11' 0 100 .41 /o 31.60' 1 0'0 11' .20' o 32.40°o 32..0°o 32.81'o 11' 33.20 o 3 Proprietary and Confidential Quote#: P20110329114423200 269 cents 286.00 cents f6 VA- 600 X60 cents 61. cents I6 901 26t cents , �.O0 cents4. ....,_.......... ......_,_..,.....,.w......., y Y,.:,.,,.:........M OO o 262 cents 263.00 cents 17.10 o 34.20 o 263 cents ( 64.00 cents 17.206/0 34.4 00 265 cents • cents 267 cents " .,,... 68 cents •9 cents 270 cents 2'7i cents /72 cents X273 cents 274 cents 75 cents 27cents 266. 0 cents 1 .40°0 -Nib() cents 6 cents 06.6d cents _ n, _.. 7 /.f(5b/o 1 .8 1' 6:60610..... 2�3.0o cents 18.10/0 273*.brcents 27 .00 cents 76.60 cents 34.80 3 4* o 36.601/4' 35.80g/o....... 6.20% 1$.40bo 0 cents 2 8 cents 27 .0 cents 2t9 cents .0 cents • 280 cents • 281.00 cents 281 cents 2$x.66 <cents 82 cents 283.00 cents 18.�6b10 1:.6 x ..................38.60 Vo 0'0 .60'o Witig 2:3 cents 284.00 cents 284 cents,285.00 cerrts 285 cents 286.00 cents 286 cents 287.00 cents 2$f cents 286 cents '289 cents 290 cents 291 cents 29rL cents .................... 263 cents 294 cents /65 cents 298 cents 88.00 cents 289.06 Cents - i96.60 cents 291.60 cents 292.00 cents 293.00 cents 264:0o Cents 38.00 38.40% 19.50% 19.66410 .90°o 26.66% ., 295.00 cents '- 266.06 ceras 267.o6 ceras 297 cents 298.00 cents 20.10°0 26.60/0..... 20.3 1 ' o 0.60.0/0 ......_. 98 cents 299.00 cents 299 cents 300.00 cents 38.80% 39.00% 39.26% .:,. 39. 0 o 39.60% 39.80% 40.00' ...,..... _,�. 40.20/0 4b.40blo ............................. 4' •0'0 40.80% 41.00' o ........... 4 2 0 26'00/0 _.....,_........... 4.41; o :1' 20.90% 4 .60 4i.e66/o Note A - Subject to a minimum fuel adjustment charge of ;$2.00 per shipment when the DOE Diesel Fuel Price Index is at least 115 cents per gallon. Note B - The term "line haul charges" referred to herein applies to all charges other than accessorial charges. Note C - For the purposes of the truckload fuel surcharge application, volume or truckload shipments are defined as: 1. Shipments rated per truckload, per vehicle, per van, o.' per container; 2. Shipments which weigh or are rated at weights of 20,000 lbs. or more; 3. Shipments subject to special volume rates or spot quctes which occupy 25 linear feet or more of trailer space; 4. Shipments considered a capacity load or moving under exclusive use rates. Note D - All shipments will be subject to a fuel adjustment (surcharge) based on a weekly fuel price index. The index shall be the Department of Energy 's National Average Diesel Fuel Price Index, after 4:00 PM on Monday of each week. Said Index may be ascertained direct from the DOE by calling (202) 586-6966 each Monday afternoon. If Monday falls on a holiday, the index for the next business day that is not a holiday will be used to determine the applicable fuel surcharges. The surcharge for each (Monday through Sunday) will be based on Monday's DOE index of the previous week. Note E - For each one cent ($ .01) increase over 300 cents in the DOE Diesel Fuel Price Index, the fuel surcharge will increase by an additional .1% on LTL shipments and an additional .2% on Volume car Truckload shipments. For each one cent ($ .01) decrease below 200 cents in the DOE Diesel Fuel Price Index, the fuel surcharge will decrease by .1% on LTL shipments and .2% on Volume or Truckload shipments. When the DOE Diesel Fuel Price Index falls below 115 cents, the fuel surcharge will not apply. OTHER - 8 of 8 Proprietary and Confidential Quote#: P20110329114423200