HomeMy WebLinkAbout86-16 - City National Bank AgreementRESOLUTION NO. 86 -16
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
• OF NEWPORT BEACH AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT BETWEEN THE
CITY OF NEWPORT BEACH AND CITY NATIONAL BANK
IN CONNECTION WITH THE CITY'S BANKING SERVICES
WHEREAS, the current Agreement for Banking Services
between the City and City National Bank expires March 31, 1986;
and
WHEREAS, the City Council has reviewed the terms and
conditions of a new Agreement for Banking Services between the
City of Newport Beach and City National Bank, a copy of which is
attached to this Resolution, and finds the proposed Agreement to
be satisfactory.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport Beach that the Agreement for Banking
Services, attached as Exhibit "A," is hereby approved and the
Mayor and City Clerk are hereby authorized to execute the same on
behalf of the City of Newport Beach.
ATTEST:
City Clerk
•
ADOPTED this 10th day of March , 1986.
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AGREEMENT FOR BANKING SERVICES
THIS AGREEMENT dated the 1 of /%� 1T C � � _ _, 1986,
is between the CITY OF NEWPORT BEACH, hereinafter "City," located
at 3300 Newport Boulevard, Newport Beach, California, and CITY
NATIONAL BANK, hereinafter "Bank," located at 3388 Via Lido,
Newport Beach, California is made with respect to the following
facts, the materiality of which is hereby agreed to between the
parties:
RECITALS
A. Bank, pursuant to a re.quest therefor by City, has
submitted a proposal to provide certain banking services.
B. City wishes to accept Bank's proposal to provide
services for an estimated average monthly cost of $1,432.50 with
demand deposit and money market accounts earning credit utilized
to reduce the estimated monthly cost on a semi - annual basis.
AGREEMENTS
1. Term: This Agreement shall be for a term
of three (3) years, commencing on the 1st day of April, 1986, and
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ending on the 31st day of March, 1989, subject to earlier termi-
nation as provided in Paragraph 3.
• 2. Services to be Furnished by Bank: Bank agrees
to provide the following services to City:
a. Bank and City agree that Bank shall act
as the sole demand depository of City (City reserves the right to
place term deposits with other institutions or to invest in
securities of the United States Government and Federal agencies
as may be determined by City to be in its best interest) as
follows:
(1) General Account. Bank shall accept
deposits of City, endorse and photograph all checks deposited and
return to City all paid checks, in numerical order, with an auto-
mated account reconciliation.
(2) Payroll Account. Bank shall accept
deposits of City or honor other authorized transfer of funds to
the account. Each payroll check drawn will be paid by Bank and
returned with an automated account reconciliation, on a regular
schedule, to be determined by City.
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(3) Checks and Supplies. Bank shall
furnish to City, pre - printed at City specifications, all checks,
deposit slips and other instruments pertaining to transactions
• for different accounts.
(4) Depository for Funds. Deposits to
the credit of City will be provided for as stated below. Every
check received will be endorsed by Bank, and all previous
endorsements will be guaranteed. A photocopy of each deposited
check will be taken and maintained by Bank for a period of two
(2) years.
(5) Reconcilement Services. The City
will require at least the following reconcilement services:
(a) A monthly statement for the
period ending the last day of each month showing all deposit
transactions, returned items transactions, redeposit
transactions, check clearing transactions, and any other transac-
tions affecting the account.
(b) Statement shall be supported by
an account reconcilement recap and a detailed listing of checks
in number sequence, and listings of paid and outstanding checks.
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(c) Statements, cancelled checks
and supporting documents for the month are to be received by the
• Finance Department within fifteen (15) calendar days after the
end of the preceding month.
(6) Investment Counsel. It is the poli-
cy of the City to invest any surplus funds on deposit in the
checking account. In order to carry out an effective cash
management and investment program, the successful bidder will be
required to provide the Finance Director or authorized employee,
by 8:30 a.m. each working day, with up -to -date information
concerning the status of the checking account. The Bank will
assist the City in developing a comprehensive cash management and
investment program utilizing Repurchase Agreements, Time Certifi-
cates of Deposit and other authorized securities directly through
the Bank. The goal is to invest all available funds at the
highest rate of return. The successful bidder should have the
capacity to make it possible for the City to invest its idle
funds in any and all authorized investments. It has been the
policy of the City to place some of its excess funds with other
local financial institutions at competitive rates. The. City
reserves the right to continue this practice.
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(7) Night Depository Services: Night
depository services will be provided by Bank for, but not limited
to, the following City uses:
(a) Parking Meter Receipts. These
receipts, it is understood, will consist of coins, to be counted
by Bank. A deposit slip for these monies will be prepared by
Bank and forwarded daily to City.
(b)
Parking
Lot
Receipts.
These
receipts, it is understood, may
or may
not be
accompanied
by a
deposit slip, depending on circumstances and the discretion of
City. A deposit slip will be prepared, or the accompanying one
will be verified by Bank and forwarded daily, to City.
In handling of night deposits,
which will consist largely of currency, Bank will provide thirty
(30) depository bags and secure seals to be used by personnel in
making such deposits. Additional bags will be available for
purchase.
(8) Line of Credit: Bank will ext.end a
Five Hundred Thousand Dollae ($500,000) line of credit to City
for a three (3) year period. Interest on borrowings will be at
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prime rate, as charged from time to time. Conditions of the line
will require City to be in a non (line) borrowing position for a
minimum of thirty (30) consecutive days during each (line)
year. Bank will require that City's budget is in balance for
each fiscal year.
3. Termination: City reserves the right to
terminate this Agreement in the event Bank fails to perform any
of the duties required by this Agreement. City shall give Bank
written notice of its intent to terminate at least ninety (90)
days prior to the effective date of termination.
'APPROV7 ASC FO
City Attorney
ATT�TE,�S :
City Clerk
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CITY OYL NEWPORT BEACH
a n-ic' al— CDT poration
C
Vices e i' nt- E. Stockwell
By:4�n3
Assistant Vice President
Gordon D. ElmquiSt