HomeMy WebLinkAbout1989-11-07; City Council; 10325; Award of Contract for Banking Services0
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CIT?~OF CARLSBAD -AGEND~!:JILL
TITLE:
AWARD OF CONTRACT FOR BANKING SERVICES
RECOMMENDcD ACTION:
CITY ATTY~~
• CITY MGR-~-·
Adopt Resolution No.8z:<3'7(p authorizing the Mayo"' to execute an agreement
with San Diego Trust & Savings Bank for banking services.
ITEM EXPLANATION:
On June 19, 1984, the City Council authorized the City Treasurer to enter
into an agreement with San Diego Trust & Savings Bank for the provision of
banking services to the City of Carlsbad. This agreement was to cover a
three-year period beginning October 1, 1984 with an optional two-year
extension. On August 28, 1987, the City extended the existing banking
services agreement with San Diego Tr~st and Savings for two years, ending
October 1, 1989. On August 23, 1989, the City Treasurer authorized a three-
month extension of the San Diego Trust & Savings Bank contract from October
1, 1989 to January 4, 1990 to allow the Treasurer to request proposals for
banking services from the banking industry, to review these proposals and
to present his findings to the City Council.
The City Treasurer distributed a Request for Proposal for Banking Services
to five (5) institutions. The City received four proposals from the
following institutions: San Diego Trust & Savings Bank, Security Pacific
Bank, Bank of America, and La Jolla Bank.
After a review of all proposals including cost for services, range of
services, and the institution's ability to meet the City's requirements, the
City treasurer is recommending that the. City Council award the banking
services contract to San Diego Trust & Savings B,.nk. San Diego Trust &
Savings has offered the City a combination of competitive prices for
services with the ability to meet all the City's mandatory service
requirements. In addition, San Diego Trust & Savings has offered to provide
all the optional services the City may require in future years as detailed
in the RFP. The responses to the RFP were also reviewed by the Assistant
City Manager and the Finance Director who concur with the recommendation to
retain San Diego Trust & Savings Bank as the City's banking institution.
A summary of the proposals received by the City is attached for information
purposes.
FISCAL IMPACT:
The City's experience with San Diego Trust & Savings Bank indicates that
banking services under this contract will cost approximately $25,000 to
$30,000 per year. These costs for services are more than offset by interest
earnings received from the sweep account arrangement with San Diego Trust
& Savings Bank which pays interest on all funds that remain in the City
accounts overnight. The net effect of this agreement on City should be
positive with interest earnings in excess of banking services costs.
Page Two of Agenda Bill No. /0, :3 ~5
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EXHIBITS:
1. Resolution No. 8ft-'3fJ(o authorizing the Mayor to execute an agreement for banking services.
2. Agreement between San Diego Trust & Savings Bank and the City of Carlsbad for banking services.
3. A summary of ba11ki ng services proposals.
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RESOLUTION NO. 89-37.6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AUTijORIZING THE
MAYOR TO EXECUTE AN AGREEMENT FOR BANKING
SERVICES WITH SAN DIEGO TRUST & SAVINGS BANK
WHEREAS, the City of Carlsbad requires a wide range of banking
services to adequately meet the City's cash management needs; and
WHEREAS, the quality of these services has a direct effect upon the
City's ability to properly manage its fund; and
WH"EREAS, the City Treasurer has requested proposals from several
banking institutions capable of providing these services to the City of
Carlsbad; 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.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of
Carisbad, California as follows:
1. That the above recitations are true and correct.
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2. That the Mayor is hereby authorized to execute the attached
agreement Exhibit A for banking serv'ices with San Diego Trust & Savings
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Bank covering the period January 4, 1990 through January 3, 1993.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad, California, held on the 7th day
of __ N=o ..... v-'em..;.;;b_e_r __ , 1989, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and !:,arson
NOES: None
ABSENT: None
12 ATTEST:
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(SEAL)
AGREEMENT FOR BANKING SERVICES
THIS AGREEHENT, made and entered into as of the ___ day of
______ , 19 __ , 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 "BANK."
WITNESSETH
WHEREAS, on September 1, 1989, CITY solicited Requests for Proposals for
banking services.
WHEREAS, pursuant to said request, BANK submitted a proposal to CITY by
the closing date of September 29, 1989.
WHEREAS, all proposals received. were evaluated by the CITY's Banking
Service Review Committee, which recommerded that BANK be selected to provide
banking services to CITY.
NOW, iHEREFORE, in consideration of their mutual promises, obligations
and covenants hereinafter contained, the parties hereto agree as follows:
{I) TERM
(2)
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 actua 1 date of service sha 11 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 exp1ration of the initial term hereof.
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.
(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 of the 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
cl eared, data and amount of deposits, as well 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 daily float; average daily collected balances; transaction
volumes and prices.
d. Daily cash Balance Reports for transaction as of the close of the
previous working day via telephone by 8:00 a.m. providing at least
the following information for each account: cash balance; collected
balance.
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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California 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.
h. Guarantee immediate credit on all wire transfers and U.S. Treasury
checks upon receipt.
i. Guarantee availability of all other checks and deposits based on
the Availability Schedule provided by the firm in the ·Proposal
Submission Package.
j. Honor all payro'll checks presented by the payee at any of the BANK' s
branch locations.
k. MasterCard and Visa accounts should be established for the CITY at
the most favorable rate possible.
l. Assurance of proper CITY signature authorizations for paid items.
m. Accept and process Federal Income Tax (FIT) Deposits.
n. 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.
o. Provide standard banking services as detai :ed in the Proposal
Submission Package.
p. 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.
q. Investment services are specifically not included within the
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(4}
(5)
provisions of this RFP. The CITY will continue its current
investment policy of placing its investments based on competiti~P.
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.
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 ClTY's representative.
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 representutives as to any such
claims, lawsuits, liabilities or damages.
Any amendment, modification or variation from the terms and conditions
cf 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 incluJe, 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 _deposit1ries failure to cooperate upon
receiving reasonable requests for information or service; or improper
act"i ons of BANK' s or CITY' s officers, employees, or suocontractors,
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 ·ti'iis section, BANK and CITY shall
cooperate in the timely and effective transition of services to another
depository. Thereafter, neither partJ shall have any future duties,
obligations, responsibilities, or rights under this Agreement.
(8} JERMJNATION 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 th~ address shown in Section i8 of this
Agreement.
(9) NON-DISCRIMINATIQ!:!
ln the performance of the terms of this Agreemen~, BANK agrees that it
will not engage in, nor permit such suhr.ontractors cs 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 ~ncestry, or religion of such
.pe;·sons. \/.iolat'ioils of tnis provision may result in the termination of
this Agreement pursuant to the provisions of Section 7 hereinabove.
(10) AUDIT
( 11)
{12)
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.
PAYMENT OF ~E[S 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 dedu~t from
the agreement price or ·consideration, or otherwise recover, t~e full
amount of such fee, commission, percentage, brokerage fee, gift or
contingent fee.
DISPUHS
If a dispute should arise regat·ding the performance of work under this
Agreement, the following procedure shall be used to resolve any question
of fact or interpretat'ion not otherwise settled by agreement between
parties. Such questions, if they become identified as a part of a
dispute among pers6~s operating under the provisions of this Agreement,
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{13)
{14)
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 c~lendar 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 r~medies ava1lable
to tllcm in law.
ASSIGNMENT OF CONTRACT
BANK sha11 not "assign this contract or any part thereof or any monies
due thereunder without tha prior written consent of the CITY.
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 apprcved in writing by CITY.
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{ 15)
(16)
(17)
{18)
1 l9)
PROHIBITED INTEREST
No official of the CITY who is authorized in such capacity on behalf of
the CITY to negotiate., make, accept, or approva, or take part in
negotiating, making, acteptfog, or approving of any agreement, shall
become directly or indirectly interested personally in this Agreement
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 CITY
to exercise any executive, supervisory, or other similar functions in
connection with the performance of this agreement shal, become directly
or indirectly interested personally in this agreement or any part
thereof.
VERBAL AGREEMENT ,QR CONVERSATION
No verbal agreement or conversation with any officer, agent, or employee
of the CITY, either before, during, or after the execution of this
Agreement, shall affect or modify any of the terms or obl'igations herein
contained nor such verbal agreement or conversation entitle BANK to ~ny
additional payment whatsoever under the terms of this Agreement.
SUCCESSORS OR ASSIGNS
Subject to the provisions of paragraph {5), Hold Harmless Agreement, all
terms, conditions, and provisions hereof shall inure to and shall bind
each of the parties hereto, and each of their respective heirs,
executors, administrators, successors and assigns.
EFFECTIVE DATE
This Agreement shall be effective on and from the day .anJ year first
above written.
NOTICES
All written notices to the parties hereto shall be sent by United States
mail, postage prepared by certified mail addressed as follows:
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CITY:
BANK:
William C. Esterline
City Treasurer
1200 Elm Avenue
Carisbad, cA 92008
Kathleen Blair, Manager
San Diego Trust and Savings Bank
P.O. Box 428
Carlsbad, CA 92008
(20} AUTHORITY TO EXECUTE AGREEMENT
Both CITY and BANK do covenant that each individual executing this
Agt-ee:nent on behalf of each party is a person duly authorized and
empowered to execute Agraement 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
City Attorney By------------,-Cl ~ude IA. Lewis, Mayor
SAN DIEGO TRUST & SAVINGS BANK
By---------~--
Title
ATTEST:
Aletha L. Rautenkranz, City C1~rk
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~ity o+ Carlsbad
Summary of Bank Proposals
October 13, 1989
________________ ..;... Bank ---->---------,-------
Name -------
MANDATORY SERVICES son,s
Security
Paci·hc
Bani, of
America
•La .Jolla
Bank
------------------------------------------------------------------------
Separate Demand Accounts
Daily Bank Stmts -Avail 1n 5 Days
Monthly Account Analysis Hepts
Daily Cash Bai Phone Repts
Mrmored ~ar Service
Accept Direct l:itate I/lire frns+ers
Accept Govt Letters of Credit ~mts
Immediate Credit on Wire rrans+ers
Chec}:s and Deposits Available
Honor Payroll Chks at ali Branches
Mastercard and Visa
Si«;/nature Author12at1cn
FIT Deposits
Employee Direct Deposits
YES
V'ES
YES
YES -at brancn
·tES
YES
YE::i
YES
"/ES
YES
YES
YES
YES
YES
All Accounts Earn Interest YES -sweep acct
OPTIONAL SERVICES
-----------------
~tatement Reconciliation YES
Accounts Rece1v~ble Service ~tES
Employee Special Services +REE ACCT d11·ect d~p
PRICIMG -------------
Account Maintenance 8.47
,)
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES -central toll freeYES-Toll free <system·?>Yes -at branch
YES
YES
YES
YES
?
YES -ID
YES
YES -by request?
YES
YES -set up· fee
YES-AUTOMATED
YES
YES-wts one day delay
YES
YES
YES
YES -ID
YES
YES
YES
YES-setup -fee,mo chg
YES-LIMITED (4.25%)
YES-recommend parti.a1 YES-see proposal costs
YES
Rl::DUCED -~ l i'm1 ted •
NO BID
NO 1).lD
YES
YES
YES
YES·-1 n-fo verbal
YES
YES
YES
YES
YES
YES
YES -NOW 4. 15%
NO BID
NO SID
$13 per acct-$78 mo $13 per acct-est S2,054Zl2 per acct
i;
;~
Cash Management -Acct Chg
Per Deposit Received
1-'er Check F-'a1d
Per Check Deposited
Per Ueposited Keturned item
Cash Deposited/Furnished
kolled ~oin Furnished
Per Stop Payment
Wire Transters:
Incoming
Outgoing
Account to Account Transfer
Account Rec0ncil1ation
ch,ck Sequencing/Sorting
Documents Col l'ected
Special Statements
Internal Statements
Balance Reporting:
First Account
Secondary Acr-cunts
Zero Balance Accounts:
Concentration Accounts
5ubs1d~ary Accounts
Armored car Services
$25 mo fund sweep accctUnable identi+y
. '-12
.14
• IJE:i
2.4:.::
.'i2 per thousand
.06
S:6.00
NO' CHARGE
$10.00
:t2.00
.13 per item
YES
YES
. 07 per checl:
$:5.00
no charge
no charge
$1.25 + ~1.50 armored
1 •,• . -
• ()',I
~.uu -$1 reclear
. '10-:U. 20 per thous "?
.OB
$8.00
$6.00
1:;.00
Unable to ident1fy
?
?
:t5.00
:rs.oo
Unable to locate
Unable identif·y
$1.25
.10
.o83
..s.ou
.90 per thousand
.06
$10.00
Unable idelnti+y . '
!l'l • 0(1
. 12
.OB
4.0u
s1.oo per thousand
.08
:$:10.00
S7.50 S12.50
$15 <THRU BRANCH :f.25) $;:?5. 00
Branch by phone $200 No charge given
.036 per item-:!=100 min .12 per item
? w04 ?
Unable to locate $:lO.OC>
?
$4,01.l
Net mentioned
Not mentioned
:.75 per monti-,
No chg da1'l y cal 1 s ?Vc,1 ce :t-55 m~, $35 acct :.95 per mo, comp c1ccess'tSee statement samples
:i:2::. mc-dai l y ci<.l ls none
•$35 :r35
:t30 X 5 = :.150
AT COST AT COST-chg per deposit
S15 per account 7
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AT COST AT COST