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Home My WebLink About1992-10-27 - AGENDA REPORTS - RFP BANKING SERVICES (2)AGENDA REPORT City Manager Appr Item to be present Steve Stark CONSENT CALENDAR DATE: October 27, 1992 SUBJECT: Request for Proposal for Banking Services DEPARTMENT: Finance BACKGROUND On June 29, 1992, the City issued Request for Proposals for Banking Services. The City has utilized TransWorld Bank as its primary bank since incorporation; therefore, an updated assessment of the City's current and future banking needs was necessary. Ten (10) Request for Proposals were sent to banks with branches located in the Santa Clarita Valley. Of the ten banks, four submitted completed proposals. The four banks were TransWodd Bank, Valencia National Bank, Bank of America, and First Interstate Bank. The banks were evaluated on the types of services they were able to provide to the City and the cost of those services. Of the four banks, TransWorld Bank offered the lowest monthly fee of $150 per month for one year, while still providing all the necessary services required by the City. The results of the Proposals are as follows: Monthly Fee Compensating Balance TransWorld Bank $ 150 $198,127 Valencia National Bank 1,250 300,000 Bank of America 1,496 413,716 First Interstate Bank 1,808 651,571 In the past, TransWorld Bank has provided good customer service to the City and has been very responsive to the City's changing needs. Staff is confident that they will continue to provide the high level of service the City is accustomed to. RECOMMENDATION Approve TransWorld Bank as the City's primary bank and authorize the City Manager to execute a Banking Services Agreement with TransWorld Bank, subject to City Attorney's approval. ATTACHMENT Appfloffl Agenda Item: Banking Services Agreement BANKING SERVICES AGREEMENT THIS AGREEMENT, dated as of September 28,1992, by and between TransWodd Bank, a state charter (the 'Bank"), and the City of Santa Clarita (the "Depositor"), WITNESSETH: WHEREAS, the Depositor wishes to maintain an account or accounts with the Bank and desires certain banking services in connection therewith; and WHEREAS, the Bank is willing to accept such account or accounts and provide such services upon the terms and conditions hereinafter stated. NOW, THEREFORE, in consideration of the mutual and dependent promises hereinafter set forth, the parties hereto agree as follows: 1. Definitions. Unless the content otherwise requires, the following terms when used in this Agreement shall have the respective meanings setforth in this Section, to be equally applicable to both the singular and plural forms of any of the terms herein defined. "Effective Date" shall mean November 1, 1992. 'Proposal' shall mean the Request for Proposal Banking Services dated June 29, 1992, submitted by the Bank to the Depositor, attached hereto and incorporated herein by this reference as Exhibit A. If any provision of this Agreement conflicts with Exhibit A, the terms of Exhibit A shall control. - 2. Authorization of Accounts. Any account maintained hereunder and all deposits thereto shall be subject to all applicable laws and -to the Bank's present and future by-laws, rules, regulations, practices and charges. The Bank may honor, receive, certify or pay all items drawn, accepted or given by Depositor for payment from any such account when signed or otherwise authorized by such person orpersons as indicated on the signature cards. The Bank may: (A).accept for deposit or collection any check or other instrument payable to the Depositor, cash, or bearer, whether endorsed by written or stamped endorsement with or without designation or signature of the person making the endorsement; (B) at the depositors risk and election, (1) mail or deliver a separate statement for each account maintained hereunder together with related items to the Depositor, or (2) hold or otherwise dispose of separate statements as requested by the Depositor; (C) if given conflicting certifications or demands, either deposit the balance of the account in court or withhold payment from the account pending the joint order or receipt of all parties or an appropriate court order determining those authorized to sign. a 3. Depository Services. The Bank will provide such services in respect of each account of the Depositor as the Depositor may request from time to time, which services will appear on the monthly Account Analysis Statement for each such account as stipulated in the proposal as Exhibit A. 4. Account Manaoement'Multiple accounts maybe maintained hereunder. If more than two accounts are so maintained, all but one of the accounts may be designated zero -balance accounts and the remaining account or accounts designated concentration accounts. Each zero -balance account must have a designated concentration account. Items drawn on any zero -balance account will be honored to the extent of Collected Funds then available forwithdrawal from the designated concentration account. The amount of any funds deposited to any zero -balance account shall be debited to such account and credited to the designated concentration account as of the day of initial deposit. Items deposited but returned unpaid by the drawee may be presented for collection at least one additional time before the Depositor's account is debited. As to any such Item, the Depositor waives notice of non-payment of the Item until it is returned unpaid a second time, and the Bank retains its right of charge -back. 5. .Telephonic Requests for Wire Transfers. The Bank is authorized to honor a telephonic, oral, telegraphic, telex, facsimile or written request which the Bank in good faith believes to have been made by an Authorized Representative for the transfer of funds from any account maintained by the Depositor hereunder to any other such account or for any other purpose, including without limitation to transfer funds to an account of the Depositor or any third party another bank, and to debit and/or credit the Depositor's account(s) therefor. The Bank shall not be deemed to be acting in bad faith hereunder if it does not record the original request or if it makes no call to verify the accuracy and authority of any such request, but the Bank is authorized to record any.such telephone request or verification call if made. The Bank shall not be liable for any act or failure to act on the part of any person not employed by, or acting as an agent of, the Bank, or for loss or damage resulting from the failure to transmit any transfer request or from any error or delay in the transmission of any transfer request caused by the unavailability or interruption or malfunction of communication facilities, war or emergency conditions or other circumstances beyond the control of the Bank. . 6. Prices. Prices for services rendered hereunder shall be $150 per month regardless of volume as stipulated in Section 5.3d of Exhibit A (Proposal). Prices for services rendered hereunder shall remain in effect until each succeeding anniversary of the Effective Date so long as this Agreement remains in effect. On each such anniversary date, such prices may be adjusted upward .by a mutually agreed upon amount. Any services in addition to those described in Exhibit A hereof which the Bank agrees to provide to the Depositor shall be at such prices as may be agreed to by the Depositor and the Bank at the time, subject to increase as provided herein. 7. Notices. Except as otherwise provided - herein, all notices, bank statements and other communications pursuant to this Agreement shall be sent to the depositor at the following address: City of Santa Clarita Finance Department 23920 W. Valencia Blvd., Suite 303 Santa Clarita, CA 91355 All notices and other communications to the Bank hereunder shall be sent to the Bank at the following address: TransWorld Bank 18411 Soledad Canyon Road Santa Clanta, CA 91351 8. Termination. Unless renewed, this Agreement shall terminate automatically on October 31, 1995, three (3) years following the Effective Date. This Agreement may also terminate as provided in this Section. (a) By Bank. If, on or before the 15th day of the second month next succeeding any month during which services were rendered hereunder, the Depositor has neither (i) paid the Bank the price of such services (ii) nor maintained its accounts at levels sufficient to enable the Bank to debit the depositor's accounts for the. price of such services, or the Depositor maintains its accounts in a manner contrary to its request for proposal and resulting Bank proposal, or in a manner contrary to federal or state regulations or Bank policies, the Bank may terminate this Agreement on sixty (60) days' notice. (b) By Depositor. Depositor may terminate this Agreement at any time upon sixty (60) days' prior written notice to bank. 9. Bonding. All employees of the Bank engaged in the performance of depository services hereunder shall be covered by the Bank's standard blanket bond. IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the day and year first above written by their officers thereunto duly authorized. TransWodd Bank Date:cr�c_ I `7g"Z� By: Z- •n�— Name: E. William Patterson II Title: Vice President Date: ATTEST: Donna M. Grindey, City Clerk Approved as to Form: City Attorney KB/gh apmlbnkm By: Name: Title: City of Santa Clarita George Caravalho City Manager