HomeMy WebLinkAboutReso 2011-1707
RESOLUTION NO. 2011- '-'{)L
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
SUNNY ISLES BEACH, FLORIDA, APPROVING AN AGREEMENT
WITH BRANCH BANKING AND TRUST COMPANY (BB&T) FOR
GOVERNMENT BANKING SERVICES, ATTACHED HERETO AS
EXHIBIT" A", UNDER THE HOUSING AUTHORITY OF THE CITY OF
FORT LAUDERDALE PROPOSAL FOR BANKING SERVICES RFP NO.
2010-05; AUTHORIZING THE MAYOR TO EXECUTE SAID
AGREEMENT; AUTHORIZING THE CITY MANAGER TO DO ALL
THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Sunny Isles Beach, is in need of government banking services to
handle operating cash flow including, but not limited to, deposits, accounts payable checks, payroll
checks, AFT processing, and wire transfers; and
WHEREAS, the Branch Banking and Trust Company (BB&T), a national banking
association, provided a proposal for these services; and
WHEREAS, the City wishes to enter into a three-year Agreement with BB&T for
Government Banking Services with two (2) three-year renewal options, attached hereto as Exhibit
"A", under the Housing Authority of the City of Fort Lauderdale Proposal for Banking Services RFP
No. 2010-5.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Approval of Agreement. The City Commission hereby approves the Agreement with
Branch Banking and Trust Company (BB&T) for Government Banking Services for a period of three
(3) years with two (2) three-year renewal options, attached hereto as Exhibit "A", under the Housing
Authority of the City of Fort Lauderdale Proposal for Banking Services RFP No. 2010-5.
Section 2.
Authorization of Mayor. The Mayor is hereby authorized to execute said Agreement.
Section 3. Authorization of City Manager. The City Manager is hereby authorized to do all
things necessary to effectuate this Resolution.
Section 4.
Effective Date. This Resolution will become effective upon adoption.
PASSED AND ADOPTED this 21st day of April 2011.
R2011- BBT Agmtfor Govt Banking Srvs - I -
ATTEST:
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I Jane A. Hines, CMC, City Clerk
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Seconded by:
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Moved by:
Vote: S-o
Mayor Ede1cup
Vice Mayor Thaler
Commissioner Aelion
Commissioner Gatto
Commissioner Scholl
V" (Yes)
~(Yes)
V (Yes)
~AY es)
_(Yes)
_(No)
_(No)
_(No)
_(No)
_(No)
R2011- BBT Agmt for Govt Banking Srvs - 2 -
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City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-3113 Fax
MEMORANDUM
TO:
The Honorable Mayor and City Commission
FROM:
Minai Shah, Assistant City Manager-Finance
DATE:
4/21/2011
RE:
Resolution to Approve Banking Services with Branch Banking and Trust
Company (BB&T) to house and facilitate transactions for the City's
operating accounts.
RECOMMENDATION:
Staff recommends approval of the resolution awarding a three year agreement with BB&T with
two-three year renewal options for banking services.
REASONS:
The City requires banking services to handle operating cash which includes, but is not limited
to, deposits, accounts payable checks, payroll checks, AFT processing, and wire transfers. The
City currently uses Bank of America to service the City's banking needs. Prior to migrating to
Bank of America, the City utilized Colonial Bank (which is now BB&T). Colonial Bank had
provided exceptional customer service, but did not have the technology in place to efficiently
manage the City's banking needs. Since then, BB&T has acquired Colonial Bank. BB&T
provides the necessary infrastructure for the City to manage its cash and the local branch has
maintained their key branch staff who has always provided exceptional service to the City. In
addtition, BB&T has come in with very competitive package which includes waiving the FDIC
assessment fees and allowing the City to earn interest on available balances above the required
amount for the earnings credit. BB&T's earnings credit rate is .45% while Bank of America's
earnings credit rate is .35%. Bank of America does not offer interest earnings on any excess
balances under the earnings credit method. Below is a comparison of the two banks with the
City's transactions for December.
Bank Services Fees
DECEMBER 2010
Bank of America
1,271.45
BB&1
718.49
Agenda Item I 0 I
http://sibagenda.sibfl.net/agenda/Preview.aspx?ItemID=457&MeetingIl Date ~ -l \
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Excess Cash Balance
4,277,228.11
6,565,426.70
2,288,198.59
1,879,920.07
6,565,426.70
4,685,506.63
Required Cash Balance
City's Average Cash Balance
Interest Rate
Interest Earnings
0.00%
0.45%
1,757.06
December represents a high cash balance due to the receipts of the property taxes. Over the
entire fiscal year, staff estimates a minimum of $1 0,000 in interest earnings on excess balances.
ADDITIONAL INFORMATION:
The City will piggyback the Housing Authority of the City of Fort Lauderdale, Proposal for
Banking Services, RFP Number 2010-05.
ATTACHMENTS:
. Resolution
. Agreement
http://sibagenda.sibfl.net/agenda/Preview.aspx?ItemID=457 &MeetingID=O&MeetingDate... 4/15/2011
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Tax ID #:
BB&T
TREASURY MANAGEMENT AGREEMENT
THIS AGREEMENT is made 2% ; t-( day of
By and between ~.) r nf ~U y\ n ~
Branch Banking and Trust c~pany ("Bank") . .
A-'f> r; }
T s)e< .6e...cC. ~
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("Customer") and
I. Service
Subject to the tenns and conditions contained in this Agreement, the Commercial Bank Services Agreement
("CBSA") and any Attachment which describe specific Treasury Management ("Services") (whether attached
hereto or relating to any Service requested subsequent to the date of this Agreement), each of which are
incorporated herein by reference, Bank will furnish Customer with those Services that it may request. Customer
agrees to pay for all said Services in accordance with this Agreement and the Bank's current fee schedule for such
Services. Initiation by Customer of any Services constitutes acceptance of the tenus and conditions ofthis
Agreement, the CBSA and any applicable Attachment.
2. Customer's Duties. Customer shall:
a) Perform and observe all conditions, covenants and restrictions as set forth in this Agreement and any
Attachments, and if required by a particular Service, maintain, at a minimum, a Deposit Account at Bank
subject to the CBSA.
b) Pay any bill rendered by Bank within 30 days after the billing date and grant to the Bank a right of set-off in
all of Customer's deposit accounts for any bills, costs or expenses owed to Bank under this Agreement or
any Attachment.
c) Warrant that Customer is fully authorized to effect transaction concerning any account, whether or not in
Customer's name, that at Customer's request is the subject of, or is affected by, any Service.
d) Carefully examine any statement, notification or confirmation of a transaction and notifY the Bank within 30
days of the statement date of any errors, discrepancies or fraudulent transactions. Customer agrees that the
Bank will not be liable for any erroneous, unauthorized or fraudulent transaction resulting from the
Customer's failure to safeguard any security or access device used in connection with any Services or its
failure to reasonably supervise its employees or agents entrusted with the security or access devise.
Customer agrees to conduct a detailed background check of all employees or agents having authority to
implement any cash management transaction and to periodically check such others' work. The Customer
further agrees that the Bank will not be liable for any erroneous, fraudulent or unauthorized transaction
which was not otherwise caused by the Bank's gross negligence or willful misconduct.
e) IndemnifY and hold Bank, its affiliates, subsidiaries, officers, directors and employees harmless against any
claim, loss, damage, deficiency, penalty, cost or expense resulting from: (a) any breach or default by the
Customer in the performance or observance of this or any other Agreement; (b) any negligence or willful
misconduct of the Customer; (c) incorrect, incomplete, or inaccurate data or information furnished by
Customer to Bank; (d) any action taken by Bank (i) at the direction of Customer or its agent, (ii) at any
direction authenticated by any device, symbol, or code assigned to or chosen by Customer in connection
with a Service (unless Bank has actual knowledge that such direction is unauthorized), or (iii) in accordance
with the procedures set forth in any Attachment. ""T1I1.'} S('d"DN "j $""1,d -+0 +V1~
P..,.. :+,d IOV\l7 <>6 Scc:+:oN I ~t1J.2.. '8 J rl.9,.. :e4e>t >+-#l+V+e-~~ -f::/D
3. Bank's Duties. Bank shall:
a) Instruct Customer and its personnel in the proper use and operation of the Service(s) furnished herewith.
Exhibit "A"
RETURN COMPLETED DOCUMENT TO:
Treasury Management Implementation
Mailcode 500-96-01-05
Questions Call: 1-800-774-8179
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TSOO I (Rev. 03/3111 0)
b) Exercise ordinary care in the performance of Bank's obligations under this Agreement and any Attachment,
including the maintenance of the confidentiality of Customer's account and of any identification device,
symbol, or code utilized by Customer in obtaining a Service.
c) Not be responsible for any liability, loss or damage resulting from any delay in its performance of, or from
any failure to perform, its responsibilities under this Agreement or any Attachment, or for any error in
transmission which: (i) was not caused by the Bank's gross negligence or willful misconduct; (ii) results
from any malfunction, including date related processing, that may occur in Customer's computer software
or computer system; or (iii) from an act of God; a natural catastrophe or event, whether or not abetted or
aggravated by human or unnatural agencies; the unavailability, interruption, or malfunction of
communications facilities or utilities; acts of, delays, or failures to act by other banks or financial
institutions, intennediaries or their personnel; and criminal acts by persons other than Bank personnel; or
any other circumstances beyond the Bank's control.
d) Consistent with any security procedures agreed upon between Bank and Customer, confirm the identity of
any person executing a transaction pursuant to this Agreement or any Attachment. The Bank, otherwise,
may rely upon any written or verbal instruction by any person if the bank reasonably believes such authority
is genuine and shall not be liable or responsible for any action taken or not taken in accordance thereof.
e) Indemnify and hold Customer harmless against any loss, damage, deficiency, penalty, cost or expense
claims brought against Customer to the extent that such claims arise out of the Bank's gross negligence or
willful misconduct. Any liability of Bank to Customer shall be limited to direct losses suffered by
Customer, not to exceed the sum of the fees and charges then imposed for Services purchased by Customer
hereunder for a period of one year.
EXCEPT AS PROVIDED IN THIS AGREEMENT, THE BANK MAKES NO REPRESENT A TION OR
WARRANTY, WHETHER STATUTORY, EXPRESS, OR IMPLIED, INCLUDING WITHOUT LIMITATION
ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IN NO
EVENT AND UNDER ANY CIRCUMSTANCES SHALL BANK BE LIABLE FOR ANY SPECIAL,
INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR INDIRECT DAMAGES, INCLUDING, WITHOUT
LIMITATION, LOSS OF PROFITS, EVEN IF THE BANK HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.
4. Term.
a) This Agreement shall remain in full force and effect on the same terms and conditions as expressed herein,
or as may be amended, until such time as it is terminated by either party as provided herein. Subject to
section 4(b) and 4(c), either party may terminate this Agreement or any Service by giving thirty (30) days
prior written notice to the other party. The liabilities of the parties shall cease on the effective date of
termination, except as to events that shall have previously occurred.
b) All Services are provided subject to applicable laws and rules. In the event Bank reasonably determines it
is no longer able to provide a Service due to a change in laws or rules, this Agreement or a specific Service
may be terminated immediately upon written notice by Bank to Customer.
c) In the event of Customer's failure to perform or observe any of the conditions, covenants, and restrictions
herein set forth, or if in the good faith opinion of Bank the Customer is involved in illegal or unethical
business practices or is financially unstable and/or the prospect of payment or performance has been
impaired, then in addition to any other available remedies, Bank may terminate this Agreement or any
Service immediately by giving written notice to Customer.
5. Miscellaneous.
Bank may amend this Agreement and any Attachment, including any provision as to fees, by giving Customer
prior written notice of the amendment, but this Agreement may not otherwise be amended or assigned except in
writing signed by both parties.
a) Any notice under this Agreement shall be deemed given: (i) to Bank when such notice is received at its
Corporate Services Division or at such other location as Bank may hereafter provide to Customer in writing;
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TSOOI (Rev. 03/29/ll)
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(ii) to Customer when mailed, postage prepaid, or delivered to Customer's current address, as shown on
Bank's records.
b) All information, whether printed, written or oral, furnished by either party shall be held in confidence and
used only for the purpose of furnishing or utilizing Services rendered herewith and in compliance with the
CBSA.
c) This Agreement, together with the CBSA and any applicable Attachments contain the entire understanding
of the parties and supersedes any previous discussions, proposals, or agreement, whether oral or written. In
the event of any conflict between a provision set forth in this Agreement and a provision contained in an
Attachment, the latter provision shall prevail. This Agreement shall not supersede or govern any other
banking or lending relationship between the parties.
d) The invalidity of any provision of this Agreement, either in its entirety or in any particular circumstance,
shall not impair the validity of the remaining provisions or the validity of such provision in any other
circumstance. This Agreement shall be governed, as to both interpretation and perfonnance by the laws of
the State in which Bank's main office is located, without regard to its conflict of laws provisions.
e) Either party has the option of requiring that all disputes that may arise between the Customer and Bank, or
any affiliate of the Bank, related to this Agreement, any Attachment or Services, or any products or
investments provided to Customer shall be decided by arbitration held in the city where the Bank's main
office is located. The parties are also advised that: (i) Arbitration is final and binding on the parties; (ii)
The parties are waiving their rights to seek remedies in court, including the right to jury trial; (iii) Pre-
arbitration discovery is generally more limited than and different from that in court proceedings; (iv) The
arbitrators' award is not required to include factual findings or legal reasoning and any party's right to
appeal or seek modification of rulings by the arbitrator is strictly limited; and (v) The panel of arbitrators
may include arbitrators who were or are affiliated with the banking or securities industry. Any arbitration
shall be conducted under the Rules of the American Arbitration Association ("AAA"), except that
arbitration of disputes involving a Broker-Dealer affiliate of the Bank may be conducted under the Rules of
the National Association of Securities Dealers ("NASD") or an Exchange or self-regulatory organization of
which the Broker is a member. In matters involving the Broker as a party, the Customer may elect in the
first instance whether arbitration shall be by the AAA, NASD, an Exchange or other self-regulatory
organization of which the Broker is a member, but if the Customer fails to make such election, by registered
letter to the Broker at the Broker's main office, before the expiration of ten days after receipt of a written
request from the Broker to make such election, then the Broker may make such election.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized
officers and to be effective as of the day and year first above written. Customer hereby acknowledges receipt of
copies of this Agreement and any applicable Attachments and consents to the terms and conditions contained therein.
Customer jimher acknowledges and consents to the pre-dispute arbitration clause contained in the paragraph 5(e}
above.
CUSTOMER *
B~
Signnd_ ~ =
By: fllY}-c 63 (U
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Title: t,. Ce g€>; Je"l'"\- f
Individual signing as "Customer" above must be an authorized individual appearing on the BB& T Resolutioll and
Agreemelltfor Deposit Accoullt.
TSOOI (Rev. 03/31110)
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ATIORNEY