HomeMy WebLinkAbout1987-08-04; City Council; 7797-1; Extention of Banking Service Agreement0
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CIT~~,QF CARLSBAD -AGE'•,-.;-BILL ~Oj't?@. _
ABf. 779?-# I
MTG. 8/4./87
TITLE:
DEPT. TRS
EXTENSION OF BANKING SERVICE AGREEMENT-
SAN DIEGO TRUST & SAVINGS BANK
RECOMMENDED ACTION:
Adopt Resolution No. 1//.3 authorizing the extention of the
existing Banking Service Contract.
ITEM EXPLANATION:
On June 19, 1984 the City Council (by minute motion) authorized
the City Treasurer to enter into an agreement with San Diego
Trust & Savings Bank (ST & S). This agreement was to cover a
three year period beginning October 1, 1984 with an optional
two year extension.
The fees for banking services were set in the agreement and were
to be revised by the bank at the time of the extension.
The •City has received excellent service from S'l'&S during the past '
three years in all areas. All representatives of the bank have
been very responsive to the City's needs. In particular Kathy
Blair, Assistant Vice President and Manager of the local branch,
and Linda Parker, Assistant Vice President and Manager of
Business Services, have made every effort to take care of the
City's banking needs including arranging for short term financing
for the Hosp Grove acquisition.
The City Treasurer is recommending that the existing banking
service agreement be extended for a two year period, as allowed
in the agreement, and that the banking service fees be increased-
by 10%. Banking service fees have not been increased since
October 1, 1984 making this increase equal to about 3.3% per
year for the last three years.
FISCAL IMPACT:
During the 12 months ended June 1987 the City's banking services
cost the City $18,000 offset by interest earnings of $58,000 for
a net income of $40,000. For 1987-88 costs will rise to about
$20,000 due to the proposed fee increase. Interest earnings
should remain steady or rise slightly to about $59,000 giving
the City a net income of about $39,000 from our inactive funds
in this account.
EHIBITS:
1. Resolution No. f/,f3 authorizing the extension of the existing
banking service agreement.
2. Agreement for Banking Services, dated September 1, 1984.
l RESOLUTION NO. 010?
.l,LU,.J ----
2 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA AUTHORIZING
3 THE EXTENSION OF THE BANKING SERVICE
AGREEMENT WITH SAN DIEGO TRUS'1' & SAVINGS
4 BANK. ---------------------
5 WHEREAS, on June 19, 1984 the City Council authorized the
6 City Treasurer to execute a contract with San Diego Trust ~nd
7 Savings Bank (The Bank) for banking services, and
8 WHEREAS, this contract was executed as of October 1., 1984,
9 and
10 WHEREAS, the contract allows for a three year period of
11 service with an option to extend services for an additional two
12 years, and
13 WHEREAS, the contract further allows the bank to increase
14 banking service charges on the contract renewal date by up to
15-ten percent, and
16 WHEREAS, the Bank has provided the City with excellent
17 service during the past three years,
18 I NOW, THEREFORE, BE IT RESOLVED by the City Council of the
19 I City of Carlsbad, Caliiornia that the existing banking service
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20 agreement is hereby extended for a period of two years, subject
21 to cancellation under the terms of the contract. Be it further
22 resolved that the banking service fees shown in Exhibit A attached
23 hereto are found to be reasonable and are hereby accepted by the
24 City.
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l PASSED, APPROVED AND ADO~TED at a Regular Meeting of the
2 City Counci 1 of the City of Carlsbad on the 4 th day of
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__ A_u~gu_s_t _______ , 1987, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin. Pettine, Mamaux, Larson
NOES: None
ABSENT: None
ATTEST:
CLAUDE A. LEWIS, Mayor
rk
Account Maintenance
Deoosits Received
Checks Deposited
Checks Paid
Return Items
Stop Payments
Cash U3age
·Rolled Coin
-
CITY OF CARLSBAD FEE SECHEDULE
Effective October 1, 1987
$7.70
,83
.07
.12
2.20
5.50
EXHIBIT 'A'
Account Reconciliation
.83 per thousand
,06
, 11
AGREEMENT FOR a'\N~ING SERVICES
THIS AGREEMENT is made and entered into in the City of Carlsbad on the 1st
day of September , 1984, by and between the CITY OF CARLSBAD, a municipal
corporation, hereinafter referred to as CITY, and SAN DIEGO TRUST & SAVINGS
BANK, hereinafter referred to as AANK.
W I T N E S S E T H ----------WHEREAS, on March 28, 1984, CITY solicited Requests for Proposals for
banking services.
WHEREAS, pursuant to said request, BANK submitted a proposal to CITY by the
closing date of April 25, 1984.
WHEREAS, all proposals received were evaluated by the CITY's Banking Service
Review Committee, which recommended that BANK be selected to provide banking
services to CITY.
NOW, T~~REFORE, in consideration of their mutual promises, obli9ations and
covenants hereinafter contained, the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be for three (3) years frOfl! the
date of initiation of services to CITY by BANK, which is anticipated to be
September 1, 1984. The actual date of service shall commence by mutual
agreement between CITY and BANK at the earliest possible date, but no later than
October 1, 1984, depending on administrative considerations in transferring CITY
accounts to BANK, including but not limited to, ordering and printing check
stock; establishing procedures for direct deposits to CITY's Operating Account;
and establishing procedutes for the acceptance by BANK of CITY' s Federal Incooie
Tax withholding deposits.
This Agreement may be extended for an addttional two (2) 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 0 issued March 28, 1984, hereinafter referred to as RFP~ and BANK' s
"Banking Services Proposal" dated April 16, 1984, hereinafter referred to as
PROPOSAL, are hereby incorporated in and made a part of this Agreement.
3. BANK'S OBLIGATIONS. For and in consideration of the compensation and
agreements hereinafter mentioned to be made and performed by CITY, BANK agrees
with CITY to do ever.ything required by this Agreement, the RFP and proposal to
furnish the following services:
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a. Separate demand deposit accounts for CITY's Operating Payroll and
Worker's Compensation Accounts; and the ability .to accommodate additional
accounts if required by CITY.
b. Safekeeping services for any n~gotiable investments purchased by
CITY from the BANK.
c. Monthly and/or dally bank statements for each account available to
CITY within five (5) working days of the close of the month (or upon demand by
CITY) prov lding all cancelled checks sorted in numerical order, listing of
checks and amounts cleared sorted by check number, date check cleared, date and
amount of deposits, as well as a summary of beginning cash balance,
deposits/credits, checks/debits, and ending cash balance for each day. Bank
statements will be deliverep to CITY by BANK.
d. Monthly Account Analysis Reports for each account and in total for
all accounts, providing the following minimum information: average da~ly cash
balances; average daily float; average daily collected balances; earnings
allowance; overdraft charges (if any); required average daily collected balances
required to compensate for ~ervices; transaction volumes and unit prices; and
BANK earnings or losses for the month.
e. Daily Cash Balance Reports for transactions as of the close of the
previous working day available via telephone by 6:00 a.m. providing at least the
following information for each account: cash balance; collected balance; number
and amount of debits; number and amount of credits.
f. Pick-up CITY' s daily deposit at locations as determined by CITY.
The pick-up shall be made no earlier than 11:00 a.m. to allow sufficient time
for the preparation of the deposit; and no later than required to ensure credit
to the CITY's account on that day.
g. Accept direct deposits to CITY's Operating Account from the State
of California for various subvention payments; and guarantee immediate credit
for such deposits. BANK shall notify CITY via telephone of the receipt and
amount of each said deposit on the same day of the transaction.
h. Ability to accept Letter of Credit payments from the U.S.
Treasury for various federal grant programs; and guarantee immediate credit for
such deposits. BANK shall notify CITY via telephone of the receipt and amount
of said payments on the same day of the transact ion.
1. Guarantee immediate credit on all wire transfers and U.S.
Treasury checks upon receipt.
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j. Guarantee availabil !.ty cf all other checks and deposits based on
the Availabillty Schedule included in BANK's PROPOSAL.
k. Honor all payroll checks presented by the payee at any of the
BANK' s branch locations providing said payees have proper identification.
1. Assurance of proper CITY signature authorizations for all paid
items.
m. Accept and process CITY's Federal Income Tax (FIT) deposits.
n. Payroll direct deposit service to CITY employees (based on
optional selection of this service by the employee) with personal checking
accounts with BANK based on a listing of '7"1Ployee names, account numbers and
amount of deposit as provided by CITY. Said listing shall be available for
collection by BANK from CITY by 9:00 a.m. on the payroll date.
o. St and a rd banking services as detailed in CITY I s RFP and BANK' s
PROPOSAL.
p. All other standard banking documents and serv leas not speci.f ically
referenced in this Agreement aM to be provided to CITY at nq cost ot·
requir.ement for compensating balances, including but not limited to: deposit
slips, stop payment forms, coin wrappers, deposit bags and seals, safe deposit
box, cashier checks, and endorsement stamps. CITY will provide the check stock
for all accounts.
q. Each day BANK shall invest all collected funds in the General City
Account in an investment program approved by the CITY and shall return to CITY
all in~erest earned from such investments.
4. CITY'S OBLIGATIONS.
a. Unit Prices. 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 CHY transdction volumes shall be the sQle basis for determining
the monthly costs of service.
b. Periodic Review and Adjustment. The CITY agrees to pay BANK for
all services provided at the unit prices described in Paragraph a above. !n
addition, the CITY agrees to allow BANK to increase the above referenced prices
by ten percent ( 10%) per year annually on the anniversary date of this
Agreement.
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5. HOLD HARMLESS AHO 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 ornmission 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 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. CITY or BANK may terminate this Agreement for cause upon
thirty (30) 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
muncipal 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 of 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. ANTI-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 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 t·esult in the
termination of this Agreement pursuant to the provisions of Section 7
hereinabove.
9. ~• 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
imposed by State or Federal laws or regulations concerning the confidentiality
of such records.
fO. NOHtE. JU i writ ten not lees to the parties hereto shall be sent by
United States mall, postage prepaid by registered or certified mall addressed
as follows:
CITY:
BANK:
J~mes F. Elliott
Finance Director
City of Carlsbad
1200 Elm,Avenue
Carlsbad, CA 92008
Kathleen Blairr Manager
San Diego Trust and Savings Bank
P.O. Box 428
Carlsbad, Cd 92008
11. NOTIFICATION. In the evP.nt an action is filed by dther party to
enforce any rights under this Agreement, the prevailing party shall~ entitled
to recover reasonable attorney's fees and court costs, in additlon to any oth~r
relief granted by Court.
12. AUTHORITY TO EXECUTE AGREEMENT. Both CITY and BANK do covenant that
each individual executing this agreement on behdlf of each party is a person
duly authorized and empowered to execute Agreements for such party.
IN WITNESS 'M-IEREOF, the parties hereto have caused this instrument to be
executed the day and year first above written.
CITY OF CARLSBAD, A Municipal Corporation
(
ttorney