HomeMy WebLinkAbout1989-11-07; City Council; Resolution 89-376'I e 0
I /I RESOLUTION NO. 89-376
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AUTHORIZING THE
MAYOR TO EXECUTE AN AGREEMENT FOR BANKING
SERVICES WITH SAN DIEGO TRUST & SAVINGS BANK
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WHEREAS, the City of Carlsbad requires a wide range of banking
services to adequately meet the City's cash management needs; and
7 !! WHEREAS, the quality of these services has a direct effect upon the
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City's ability to properly manage its fund; and
WHEREAS, the City Treasurer has requested proposals from several
banking institutions capable of providing these services to the City of
Carl sbad ; and
WHEREAS, a review of these proposals has found that San Diego Trust
& Savings Bank to be the most responsive institution providing banking
services that most closely meet the City's needs at reasonable expense.
l5 (1 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of
1611Carlsbad, California as follows:
l' I/ 1. That the above recitations are true and correct.
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I. II 2. That the Mayor is hereby authorized to execute the attached 2
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agreement Exhi bit A for banking services with San Diego Trust & Savings
Bank covering the period January 4, 1990 through January 3, 1993. 4/1 PASSED, APPROVED AND ADOPTED at a regular meeting of the City
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Council of the City of Carlsbad, California, held on the 7th d aY
of November , 1989, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ABSENT : None
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(SEAL)
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AGREEMENT FOR BANKING SERVICES
THIS AGREEMENT, made and entered into as of the day of
, 19 , by and between the CITY OF CARLSBAD, a municipa'
corporation, hereinafter referred to as "CITY," and SAN DIEGO TRUST & SAVING!
BANK, hereinafter referred to as "BANK."
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WHEREAS, on September 1, 1989, CITY solicited Requests for Proposals for
ban ki ng services.
WHEREAS, pursuant to said request, BANK submitted a proposal to CITY b)
the closing date of September 29, 1989.
WHEREAS, a1 1 proposal s received were evaluated by the CITY'S Bankin!
Service Review Committee, which recommended that BANK be selected to providt
banking services to CITY.
NOW, THEREFORE, in consideration of their mutual promises, obligations
and covenants hereinafter contained, the parties hereto agree as follows:
(1) TERM
The term of this Agreement shall be for three (3) years from the date
of initiation of services to CITY by BANK, which is anticipated to be
January 4, 1990. The actual date of service shall commence by mutual
agreement between CITY and BANK at the earliest possible date.
This Agreement may be extended for an additional three (3) year period
by mutual agreement in writing not less than thirty (30) days prior to
the expiration of the initial term hereof.
(2) INCORPORATION BY REFERENCE
CITY's "Request for Proposal for Banking Services" issued September 1,
1989, hereinafter referred to as RFP, and BANK'S "Banking Services
Proposal" dated September 22, 1989, hereinafter referred to as PROPOSAL,
are hereby incorporated in and made a part of this Agreement.
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(3) BANK'S OBLIGATION
For and in consideration of the compensation and agreements hereinafter
mentioned to be made and performed by CITY, BANK agrees with CITY to do
everything required by this Agreement, the RFP and proposal to furnish
the following services:
a. Separate demand deposit accounts for each ofthe CITY's accounts and
to accommodate additional accounts if required by the CITY.
b. Daily bank statements for each account available to the CITY within
five (5) working days, providing all cancelled checks, listing of
checks and amounts cleared sorted by check number, date check
cleared, data and amount of deposits, as we1 1 as a summary of
beginning cash balance, deposits/credits, checks/debits, and ending
cash balance for the day.
c. Individual Monthly Account Analysis Reports for each account
receiving service charges and in total for all accounts, providing
the following minimum information: average daily cash balances;
average dai ly fl oat; average dai ly coll ected bal ances ; transaction
volumes and prices.
d. Daily cash Balance Reports for transaction as of the close of the
previous working day via telephone by 8:OO a.m. providing at least
the following information for each account: cash balance; collected
bal ance.
e. Armored car service to pick up the CITY's daily deposit at two
locations as determined by the CITY. The pick-up shall be made no
earlier than 2:30 p.m. to allow sufficient time for the preparation
of the deposit; and no later than required to ensure proper credit
to the CITY's account on that day.
f. Accept direct deposits to the CITY's account from the State of
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Cal ifornia and the federal government for various subvention and
grant payments; and guarantee immediate credit for such deposits.
g. Accept Letter of Credit payments from the U.S. Treasury for various
federal grant programs; and guarantee immediate credit for such
deposits.
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Guarantee immediate credit on all wire transfers and U.S. Treasury
checks upon receipt.
Guarantee availability of all other checks and deposits based on
the Avai 1 abi 1 i ty Schedule provided by the firm in the Proposal
Submission Package.
Honor all payroll checks presented by the payee at any of the BANK'S
branch locations.
Mastercard and Visa accounts should be established for the CITY at
the most favorable rate possible.
Assurance of proper CITY signature authorizations for paid items.
Accept and process Federal Income Tax (FIT) Deposits.
Provide direct deposit service to CITY employees (based on optional
selection of this service by the employee) with personal checking
accounts at the local branch based on a listing of employee names,
account numbers, and amount of deposit as provided by the CITY.
Provide standard banking services as detailed in the Proposal
Submission Package.
All other standard banking documents and services not specifically
referenced in this Agreement will be provided to the CITY at no cost,
including but not limited to: deposit slips, stop payment forms,
coin wrappers, deposit bags, safe deposit box, cashier checks, and
endorsement stamps.
Investment services are specifically not included within the
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provisions of this RFP. The CITY will continue its current
investment pol icy of placing its investments based on competitive
quotes from a wide variety of investment sources.
r. All Demand Account Balances shall earn interest on a daily basis.
s. Checks from the CITY’s general operating and payroll accounts shall
be sorted by check number.
(4) CITY’S OBLIGATION
a. The unit prices shown in BANKS PROPOSAL shall. be used by BANK and
CITY in determining the monthly cost of services based on actual CITY
transaction volumes.
The unit prices specified in the attached PROPOSAL extended against
actual CITY transaction volumes shall be the sole basis for
determining the monthly costs of service.
b. The CITY agrees to pay BANK for all services provided at the unit
prices described in Paragraph 4a above. In addition, BANK agrees
to hold prices at the level shown in PROPOSAL for two (2) years from
the date of this Agreement. At the end of this period BANK may, at
BANK’S option, increase unit prices up to 10% In the event of an
extension of this contract, future rate increases will be negotiated
with the CITY’s representative.
(5) HOLD HARMLESS AND INDEMNIFICATION.
BANK agrees to indemnify, defend and hold harmless CITY, its officials,
officers, employees, representatives, and agents from and against all
claims, lawsuits, liabilities or damages of whatsoever nature arising
out of or in connection with, or relating in any manner to any act or
omission of BANK, its agents, employees, and subcontractors or employees
thereof pursuant to this Agreement. The BANK shall investigate and
indemnify the CITY and do whatever is necessary to protect the CITY, its
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officials, officers, employees, agents and representatives as to any such
claims, lawsuits, liabilities or damages.
(6) AMENDMENTS
Any amendment, modification or variation from the terms and conditions
of this Agreement shall be in writing and shall be effective only upon
approval by the Treasurer of the CITY.
(7) TERMINATION FOR CAUSE
CITY or BANK may terminate this Agreement for cause upon thirty (30)
calendar days written notice. Cause for termination may include, but
not be limited to, BANK's or CITY's failure to promptly and faithfully
abide by any of the terms or conditions contained herein; violation of
any law governing municipal depositories failure to cooperate upon
receiving reasonable requests for information or service; or improper
actions of BANK's or CITY's officers, employees, or subcontractors,
which, in the opinion of CITY or BANK, would adversely affect its
interests or endanger the safety or liquidity of CITY or BANK funds.
In the event or termination pursuant to this section, BANK and CITY shall
cooperate in the timely and effective transition of services to another
depository. Thereafter, neither party shall have any future duties,
obligations, responsibilities, or rights under this Agreement.
(8) TERMINATION OF AGREEMENT WITHOUT CAUSE
Either party to this Agreement may upon ninety (90) calendar days written
notice terminate this Agreement without cause. Such notice shall be
delivered by certified mail to the address shown in Section 18 of this
Agreement.
(9) NON-DISCRIMINATION
In the performance of the terms of this Agreement, BANK agrees that it
will not engage in, nor permit such subcontractors as it may employ, to
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engage in discrimination in the employment of persons because of the
age, race, color, sex, national origin or ancestry, or religion of such
persons. Violations of this provision may result in the termination of
this Agreement pursuant to the provisions of Section 7 hereinabove.
(10) AUDIT
CITY shall have the option of inspecting and/or auditing all records and
other written materials used by BANK in preparing the Monthly Account
Analysis Report to CITY, subject to any restrictions which may be imposec
by State or Federal laws or regulations concerning the confidentialitj
of such records.
(11) PAYMENT OF FEES OR COMMISSIONS
BANK warrants that BANK has not employed or retained any company or
person, other than a bona fide employee working for BANK, to solicit or
secure this Agreement, and that BANK has not paid or agreed to pay any
company or person, other than a bona fide employee, any fee, commission,
percentage, brokerage fee, gift, or any other consideration contingent
upon, or resulting from, the award or making this Agreement. For breach
or violation of this warranty, the CITY shall have the right to annul
this Agreement without liability, or, in its discretion, to deduct fron
the agreement price or consideration, or otherwise recover, the full
amount of such fee, commission, percentage, brokerage fee, gift or
contingent fee.
(12) DISPUTES
If a dispute should arise regarding the performance of work under this
Agreement, the foll owing procedure shall be used to resolve any question
of fact or interpretation not otherwise settled by agreement between
parties. Such questions, if they become identified as a part of a
dispute among persons operating under the provisions of this Agreement,
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shall be reduced to writing by the principal of the BANK or the City
Treasurer. A copy of such documented dispute shall be forwarded to both
parties involved along with recommended methods of resolution that would
be of benefit to both parties. The City Treasurer or principal receiving
the letter shall reply to the letter along with a recommended method of
resolution within ten calendar days. If the resolution thus obtained
is unsatisfactory to the aggrieved party, a letter outlining the dispute
shall be forwarded to the City Council for their resolution through the
office of the City Manager. The City Council may then opt to consider
the directed solution to the problem. In such cases, the action of the
City Council shall be binding upon the parties involved, although nothing
in this procedure shall prohibit the parties seeking remedies available
to them in law.
(13) ASSIGNMENT OF CONTRACT
BANK shall not assign this contract or any part thereof or any monies
due thereunder without the prior written consent of the CITY.
(14) SUBCONTRACTING
BANK shall not subcontract any of the services to be provided under this
Agreement by BANK unless approved by CITY in writing. BANK shall be
fully responsible to CITY for the acts and omissions of BANK's
subcontractor and of the persons either directly or indirectly employed
by the subcontractor, as BANK is for the acts and omissions of persons
directly employed by BANK. Nothing contained in this Agreement shall
create any contractual relationship between any subcontractor of BANK
and CITY. BANK shall bind every subcontractor and every subcontractor
of a subcontractor by the terms of this Agreement applicable to BANK's
work unless specifically noted to the contrary in the subcontract in
question approved in writing by CITY.
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(15) PROHIBITED INTEREST
No official of the CITY who is authorized in such capacity on behalf oi
the CITY to negotiate, make, accept, or approve, or take part ir
negotiating, making, accepting, or approving of any agreement, shall
become directly or indirectly interested personally in this Agreemenl
or in any part thereof. No officer, employee, or attorney, of or for
the CITY who is authorized in such capacity and on behalf of the CITl
to exercise any executive, supervisory, or other similar functions ir
connection with the performance of this agreement shall become direct13
or indirectly interested personally in this agreement or any par1
thereof.
(16) VERBAL AGREEMENT OR CONVERSATION
No verbal agreement or conversation with any officer, agent, or employe(
of the CITY, either before, during, or after the execution of thi!
Agreement, shall affect or modify any of the terms or ob1 igations hereir
contained nor such verbal agreement or conversation entitle BANK to an3
additional payment whatsoever under the terms of this Agreement.
(17) SUCCESSORS OR ASSIGNS
Subject to the provisions of paragraph (5), Hold Harmless Agreement, al-
terms, conditions, and provisions hereof shall inure to and shall bin(
each of the parties hereto, and each of their respective heirs.
executors, administrators, successors and assigns.
(18) EFFECTIVE DATE
This Agreement shall be effective on and from the day and year firsi
above written.
(19) NOTICES
All written notices to the parties hereto shall be sent by United State!
mail, postage prepared by certified mail addressed as follows:
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CITY: William C. Esterline
City Treasurer
1200 Elm Avenue Carl sbad, CA 92008
BANK : Kathl een Bl air, Manager
San Diego Trust and Savings Bank P.O. Box 428
Carl sbad, CA 92008
(20) AUTHORITY TO EXECUTE AGREEMENT
Both CITY and BANK do covenant that each individual executing this
Agreement on behalf of each party is a person duly authorized and
empowered to execute Agreement for such party.
IN WITNESS WHEREOF. the parties hereto have caused this instrument to be
executed the day and year first above written.
APPROVED AS TO FORM: CITY OF CARLSBAD
BY City Attorney Claude A. Lewis, Mayor
SAN DIEGO TRUST & SAVINGS BANK
ATTEST:
BY
Title
Aletha L. Rautenkranz, City Clerk
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