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HomeMy WebLinkAboutReso. 1987 - 168 - Agreement between the city of redding and first interstate bank of california for automatic payroll deposits for employees •_ • I RESOLUTION NO. g7/L p A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE AGREEMENT BETWEEN THE CITY OF REDDING AND FIRST INTERSTATE BANK OF CALIFORNIA FOR AUTOMATIC PAYROLL DEPOSITS FOR EMPLOYEES AND AUTHORIZING THE CITY TREASURER AND DIRECTOR OF FINANCE TO SIGN SAME. WHEREAS, on July 21 , 1986 , the City Council approved a Request for Proposal of Banking Services with First Interstate Bank. At that time, the City entered into a contract for direct deposit accounts and a Fiscal Automatic Investment Account; and WHEREAS, during union negotiations , the City agreed to provide automatic payroll deposits for employees who wish to sign up for this type of service; and WHEREAS, it is deemed to be in the best interests of the City and its employees to enter into such an agreement; IT IS THEREFORE RESOLVED by the City Council of the City of Redding as follows : 1 . That the City Council of the City of Redding hereby approves the attached Agreement between the City of Redding and First Interstate Bank of California; 2. That the City Treasurer and Director of Finance of the City of Redding are hereby authorized and directed to sign said Agreement and all necessary documents on behalf of the City of Redding, and the City Clerk is hereby authorized and directed to N4 . . . •. •. 1 attest the signatures of the City Treasurer and Director of Finance and to impress the official seal of the City of Redding on the aforesaid Agreement, when appropriate; and 3. That a true copy of said Agreement is attached hereto and incorporated herein by reference. I HEREBY CERTIFY that the foregoing Resolution was intro- duced and read at a regular meeting of the City Council of the City of Redding on the 2nd day of June , 1987, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Carter, Fulton, Gard, Johannessen, & Dahl NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None MIKE DAHL, Mayor City of Redding ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVED: t1�DALL A. HAYS, C ./ 17 Attorney -2- • • First Interstate Bank SURE-PAY AGREEMENT This Agreement is made on , 19. , by and between ("Company") and First Interstate Bank of California ("Bank"). Company has requested that Bank permit it to initiate electronic signals.for paperless entries through the Bank to accounts maintained at the Bank and at other Participating Financial Institutions by means of the Automated Clearing House("ACH") operated by Calwestern Automated Clearing House Association ("CACHA"). In consideration of the mutual promises contained in this agreement, Company and Bank agree as follows: 1. Bank will transmit the credit and/or debit entries initiated by Company to the ACH as provided in the Operating Rules of CACHA in effect from time to time (the "Rules") and this Agreement. 2. Company will comply with all applicable Rules and Laws. The specific duties of the Company provided in the following paragraphs of this Agreement in no way limit the foregoing undertaking. 3. The Company will secure an authorization from its Customers authorizing credit and/or debit entries to the Customer's account at a Participating Financial Institution. For debit entries, Company will provide Customer with a copy of his or her authorization. Company will retain the original or a copy of each authorization received by the Company for six (6) years after termination or revocation of such authorization. 4. Company will send prenotification that it intends to initiate an entry or entries to a particular account within the time limits prescribed for such notice in the Rules. Such notice shall be provided to the Bank in the format and on the medium specified by Bank.After the Company has received notice that any such prenotification has been rejected by a Receiving Financial Institution, or that a Receiving Financial Institution will not receive entries without having first received a copy of the authorization signed by its Customer, the Company will not initiate any entry to such customer without providing the Receiving Financial Institution with such authorization, within the time limits provided by the Rules. 5. Company will provide entry information on the mutually agreed upon medium and in the format specified by Bank. 6. Each entry or entries shall be delivered in accordance with delivery points and schedules specified by the SurePay desk. For the purposes of this Agreement, the "Settlement Date" with respect to any entry shall be the day when the entry is finally debited or credited in accordance with Company's instruction. 7. Company will provide immediately available funds to cover any credit entry initiated by it no later than the Settlement Date for the entry. 8. Company will receive immediately available funds for any debit entry initiated by it on the Settlement Date for the entry. 9. Company may notify Bank from time to time to make adjusting entries to accounts. If such notice is received after the time provided for in Bank's instructions, Bank, at its sole discretion, may attempt to initiate an adjusting entry. Such adjustments may not be accomodated under CACHA Rules and are undertaken by the Bank without warranty. Company agrees to indemnify, defend and hold Bank harmless from each and every claim, demand, loss, damage, action, cost, and attorney's fee arising out of or associated with such adjustments. • 10. In the event any entries are rejected by the ACH for any reason whatsoever, it shall be the responsibility of the Company to remake such entries; Bank shall remake such entries, however, in any case where rejection by the ACH was due to the mishandling of such entries by the Bank and sufficient data is available to the Bank to permit it to remake such entries. Company shall retain and provide Bank, upon request, with all information necessary to remake any file of entries until midnight of the third day following the Settlement Date. 11. In the case of Company initiated credits, Company agrees to indemnify, defend and hold Bank, CACHA, and each Participating Financial Institution, and Automated Clearing House harmless from each and every claim, demand, loss, action,damage, cost and attorney's fee arising out of or incident to the operation of this plan, including(without limitation) any claim based on an alleged loss resulting from the non-credit of any deposit, and any claim which may be made •.by any Customer as a result of the rejection of any of the Customer's checks or transactions because of insufficient funds arising from the failure to credit deposits to the Customer's account, provided that any such claim or claims are caused in whole or in part by Company's negligence, willful misconduct, or breach of contract. OU-1260 4-82 12. In the case of Company initiated debits, Company agrees to indemnify, defend and hold Bank, CACHA, and each Participating Financial Institution, and Automated Clearing House harmless from each and every claim, demand, loss, action, damage, cost and attorney's fee arising out of or incident to the operation of this plan, including(without limitation) any claim based on payment of any charges in the wrong amounts or at lesser or more frequent intervals than provided in the Customer's authorization, any claim based on alleged loss to the Customer as a result of nonpayment of any charge, and any claim which may be made by any Customer as a result of the rejection of any of the Customer's checks or transactions because of insufficient funds arising from the charging of payments hereunder to the Customer's account, provided that any such claim or claims are caused in whole or in part by Company's negligence, willful misconduct, or breach of contract. 13. In the event the Company incurs any loss due to mishandling of a particular entry or entries, the Bank's liability to the Company shall be limited to actual damages resulting from the Bank's active negligence or willful misconduct. Under no circumstances will Bank be liable for consequential damages or loss of profits or revenues. 14. Either party may terminate this Agreement by giving the other party 10 days prior written notice,at the address set forth below.This Agreement shall remain in effect with respect to any entries initiated by the Company prior to such termination. First Interstate Bank of California (Company Name) Address Address By By Title Title By By Title Title