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HomeMy WebLinkAbout1993-08-03; City Council; 12339; EXTENSION OF BANKING SERVICES AGREEMENTI 0 3 0 CG k 4 z 0 F: 0 a 8 z 3 8 fP 1 - Cw OF CARLSBAD - AGEWA BILL -"(.-I -. d AB # /2!33? TITLE: DEPT. HD.[ MTG. a/?/?? EXTENSION OF BANKING SERVICES AGREEMENT C'TY ATTc D€PT. TRIS CITY MGR RECOMMENDED ACTION: Adopt Resolution No. banking services from the San Diego Trust & Savings Bank. 7 3 - &aa, extending the agreement for ITEM EXPIANATION: In January 1990 the City entered into an agreement with San Diego Trust & Savings Bank for banking services. The original agreement had a term of three years and expired in January 1993. It included an option to mutually extend the period for an additional three years, until January 1996. For the past several months the City Treasurer and Bank have been reviewing the terms of the agreement while working with month-to-month extensions under the terms of the original agreement. The City Treasurer and Bank have reached concurrence regarding terms for an extension of the agreement. The proposed terms effective from the date approved by Council until January 1966. The original agreement included an option for the Bank to increase unit prices up to 10% after two years (January 1992). The Bank did not exercise this option. Thus, this proposed 10% increase will be the only increase over a six year period, applying only to the last two-and-a-half years. A recent market survey indicated that the proposed unit prices, reflecting the 10% increase, are reasonable and competitive. San Diego Trust & Savings Bank is financially sound and profitable. Based on research by Bauer Financial Reports, an independent bank-rating firm, San Diego Trust & Savings was rated as Itwell capitalizedtt. Banking services from San Diego Trust & Savings Bank have been responsive to the needs of the city. would increase by 10% the current unit prices and would be FISCAL IMPACT: Annual expenditures for banking services are currently $40,000. This recommendation would allow a 10% increase to an approximate annual expenditure of $44,000 from the date approved by Council until January 1996. EXHIBITS: 1. Agreement for Banking Services dated June 15, 1993 2. Resolution No. 93-3,a%- I . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 RESOLUTION NO. 93-222 A RESOLUTION OF THE CITY COUNCIL OF THE CITYOF CARLSBAD, CALIFORNIA, APPROVING THE EXTENSION OF THE AGREEMENT FOR BANKING SERVICES WITH SAN DIEGO TRUST AND SAVINGS BANK WHEREAS, the City of Carlsbad entered into an agreement with San Dit Trust and Savings Bank in January 1990 for the provision of banking servic and WHEREAS, said contract was for the period of three years with condition that the agreement could be extended by mutual consent for additional three years; and WHEREAS, San Diego Trust and Savings Bank has provided the City u excellent service over the past three years; and WHEREAS, the price for banking services charged to the City under 1 contract has been competitive with similar services provided by other institutio and WHEREAS, the City Treasurer is recommending that the City COUI extend the existing agreement for an additional three years from January 19 NOW THEREFORE BE IT RESOLVED by the City Council of the CiQ Carlsbad, California as follows: 1. That the Mayor is hereby authorized to sign the attacl agreement, Exhibit A, extending the City's agreement for banking services VI San Diego Trust and Savings from the date of Council approval to Januaq 1996. * 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I i i i 0 0 2. That the fee for these services shall be as described in the fc scheduled titled, "City of Carlsbad Fee Schedule Effective June 15, 1992 included in the Agreement dated June 15, 1993. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Ci Council of the City of Carlsbad, California on the 3rd day of AUGUST , 1993, by the following vote, to wit: AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finn NOES: None ABSENT: None A.TTEST: k 8. * ALETHA L. RAUTENKRANZ, City Clerk (SEAL) a 0 c Agreement for Banking Services for The City of Carlsbad June 15, 1993 0 0 San Diego Trust & Savings 3ank submits this Extension of Original Agreement to: The City of Carlsbad San Diego Trust & Savings Bank Business Services Department 530 Broadway, Suite 608 San Diego, CA 92101 Telephone:(619) 557-3007 F=:(619) 557-3049 The information in this proposal/agreement is of proprietary nature and may not be reproduced in any way without the written approval of San Diego Trust & Savings Bank. This proposal/agreement expires January 04, 1996. 0 0 1 Agreement for Banking Services (Extension of the Original Agreement) This Agreement, made and entered into as of the 4th day of Januarv, 1993; extended to Janu2 1996, by and between the City of Carlsbad, a municipal corporation, hereinafter referred to "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 service: Whereas, pursuant to said request, Bank submitted a proposal to City by the closing date September 29, 1989. Whereas, all proposals received were evaluated by the City's Banking Service Revi Committee, which recommended that Bank to be selected to provide banking services to Ci Now, therefore, in consideration of their mutual promises, obligations, and covenar hereinafter contained, the parties hereto agree as follows: 1. Term The term of this Extension shall be for three (3) years from the date of initiation services to City by Bank, which was January 4, 1993. The proposed prices would effective on the date the Council approves the Extension and will remain in effect u January 4, 1996. 2. Incorporation by Reference City's "Request for Proposal for Banking Services" issued September 1, 19 hereinafter referred to as RFP, and Bank's "Banking Services Proposal" dated Septem 22, 1989, hereinafter referred to as Proposal, are hereby incorporated in and made a 1 of this Agreement. 3. Bank's Obligation For and in consideration of the compensation and agreements hereinafter mentionec be made and performed by City, Bank agrees with City to do everything required 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 accomma additional accounts if required by the City. 3 b. C. d. e. f. g- h. 1. J. k. 1. m. 0 0 Daily bank statements for each account available to the City within five (5) working days, providing all canceled checks, listing of checks and amounts cleared sorted by check number, date check cleared, data and amount of deposits, as well as a summary of beginning cash balance, deposits/credits, checkddebits, and ending cash balance for the day. 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, and transaction volumes and prices. Daily Cash Balance Reports for transactions as of the close of the previous business day via telephone, by 8:oO A.M. providing at least the following information for each account: Cash Balance and Collected Balance. Armored car service to pick up the City’s daily deposits at two locations as determined by the City. The pick-up shall be no earlier than 2:30 P.M. to allow sufficient time for the preparation of deposits; and no later than required to ensure proper credit to the City’s account on that day. Accept direct deposits to the City’s account from the State of California and the Federal Government for various subvention and grant payments; and guarantee immediate credit for such deposits. Accept Letter of Credit payments from the U.S. Treasury for various federal grant programs; and guarantee immediate credit for such deposits. 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 Availability 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. Merchant Credit Card Services will be established for the City at a favorable merchant discount rate. City will accept Mastercard and VISA credit card transactions from their customers as payment for services. Assurance of proper City signature authorizations for paid items. Accept and process Federal Income (FIT.) Deposits. 4 0 0 3 n. Provide direct deposit service to City employees (based on optional selection this service by the employee) with personal checking accounts at the local bran based on a listing of employees names, account numbers, and amount of depc as provided by the City. 0. Provide standard banking services as detailed in this Proposal Submiss, Package. p. All other standard banking documents and services not specifically referenced this Agreement will be provided to the City at no cost, including but not limi to: deposit slips, stop payment forms, coin wrappers, deposit bags, safe depc box, cashiers checks, and endorsement stamps. q. Investment services are specifically not included within the provision of this Rl The City will continue its current investment policy of placing its investme 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 check number. t. Provide On-Line Balance Reporting which enables the City to retrieve daily c position by in-house personal computer and telephone modem. u. Zero Balance Accounting (ZBA) system allows the City to centralize cash con in a Concentration Account. Each individual operating account continues normal disbursing or depositing functions. 4. City’s Obligations a. The unit price shown in Bank’s Proposal shall be used by Bank and Cit determining the monthly cost of services based on actual City transac volumes. Extension of this Agreement, effective on the date approved Council, incorporates by reference revised service fees as outlined on page 1 this extension. The unit prices specified in the attached Proposal extended against actual ( transaction volumes shall be the sole basis for determining the monthly cos services. b. The City agrees to pay Bank for all services provided at the unit prices descr in the proposal. In addition, Bank agrees to hold prices at the level shown ir Proposal for the term of the extension. 5 e 0 5. Hold Harmless of Indemnification The Bank agrees to indemnify, defend and hold harmless City, its officials, officers, employees, representatives, and agents from and against all claims, lawsuits, liabilities, or damage 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 sub-contractors, 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 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, Banks’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 action of Bank’s or City’s officers, employees, or sub-contractors, 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 sub-contractors 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 result in the termination of this Agreement pursuant to the provision of Section 7 hereinabove. 6 0 0 10. Audit City shall have the option of inspecting and/or auditing all records and other writtc materials used by Bank in preparing Monthly Account Analysis Report to City, subje to any restrictions which may be imposed by State or Federal laws or regulatio concerning the confidentiality of such records. 11. Payment of Fees or Commission Bank warrants that Bank has not employed or retained any company or person, 0th than a bona fide employee working for Bank, to solicit or secure this Agreement, a that Bank has not paid or agreed to pay any company or person, other than a bona fi employee, any fee, commission, percentage, brokerage fee, gift, or any ott consideration contingent upon, or resulting from, the award or making this Agreeme] For breech or violation of this warranty, the City shall have the right to annul t Agreement without liability, or, in its discretion, to deduct from the agreement price consideration, or otherwise recover, the full amount of such fee, commissil percentage, brokerage fee, gift, or contingent fee. 12. Disputes If a dispute should arise regarding the performance of work under this Agreement, following procedure shall be used to resolve any question of fact or interpretation otherwise settled by agreement between parties. Such questions, if they beco identified as a part of a dispute among persons operating under the provisions of I Agreement, shall be reduced to writing by the principal of the Bank or the C Treasurer. A copy of such document dispute shall be forwarded to both parties invol along with recommended methods of resolution, that would be of benefit to both part The City Treasurer or principal receiving the letter, shall reply to the letter along Y a recommended method of resolution within ten calendar days. If the resolution t obtained is unsatisfactory to the aggrieved party, a letter outlining the dispute shall forwarded to the City Council for their resolution through the office of the City Manal The City Council may then opt to consider the directed solution to the problem. In P cases, the action of the City Council shall be binding upon the parties involved, althc nothing in this procedure shall prohibit the parties seeking remedies available to the1 law. 13. Assignment of Contract Bank shall not assign this contract or any part thereof or any monies due thereul without prior written consent of the City. 7 e e 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 the City. 15. Prohibited Interest No official of the City who is authorized in such capacity on behalf of the City to negotiate, make, accept, or approve, or take part in negotiating, making, accepting, 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 shall become directly or indirectly interested personally in this agreement or any part thereof. 16. Verbal Agreement or 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 obligations herein contained nor such verbal agreement or conversation entitle Bank to any additional payment whatsoever under the terms of this Agreement. 17. 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. 18. Effective Date This Agreement shall be effective on and from the day and year first above written. 8 0 0 19. Notices All written notices to the parties hereto shall be sent by United States Mail, postage prepared by Certified Mail addressed as follows: City: James Stanton City Treasurer 1200 Elm Avenue Carlsbad, CA 92008 Bank: Kathleen Blair, Vice President & Manager San Diego Trust & Savings Bank P.O. Box 428 Carlsbad, CA 92008 9 0 0 20. Authority to Execute Agreement Both City and Bank do covenant that each individual executing this Agreement on beh of each party is a person duly authorized and empowered to execute Agreement for su PmY - In Witness Whereof, the parties hereto have caused this instrument to be executed 1 day and year first above written. Approved as to Form: Cmf Carlsbad: By: /La& By: Attest: By: Aletha L. Rautenkranz, City Clerk San Diego Trust & Savings Bank: By: ,~+$T/?'L- k-GA/ L~LJ ,I/? Li3 4PrintlType &me) /; 4 I, , ,' /y&/&&; , ,. Signature /&Fg&&/L+ Title ., 10 0 a City Of Carlsbad Fee Schedule Effective June 15, 1993 11 Account Maintenance I $ 9.32 II I Deposits Received Checks Deposited $ 1.01 $ .09 II ~ I 11 Checks Paid I $ .15 II 11 Returned Items I $ 2.66 II I Stop Payments Waived Rolled Coin $ 1.01 Cash Usage (Per Thousand) Waived II I I Check Sorting $ 10.00 Wire Transfers Incoming $ -05 II Wire Transfers Outgoing Zero Balance Accounting (ZBA) Master Account $20.00 $ 35.00 11 Zero Balance Accounting (ZBA) Sub-Account I $ 15.00 On-Line Balance Reporting $75.00 11