HomeMy WebLinkAbout1993-08-03; City Council; Resolution 93-222.
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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.
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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)
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Agreement for Banking Services
for
The City of Carlsbad
June 15, 1993
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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.
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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.
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b.
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e.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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)
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I, , ,' /y&/&&;
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Signature /&Fg&&/L+
Title .,
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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
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