HomeMy WebLinkAboutAgenda Report - May 18, 2011 I-02AGENDA ITEM***10000
CITY OF LODI
COUNCIL COMMUNICATION
Im
AGENDA TITLE: Adopt ResolutionAuthorizing the City Manager and Treasurer to ExecuteAll
Agreements Necessary to Award Contracts to Bank of the West for General
Banking Services and to Bank of America for Lockbox Services
MEETING DATE: May 18,2011
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Adopt resolution authorizing the City Manager and Treasurerto
execute all agreements necessary to award contracts to Bank of the
West for General Banking Services and to Bank of America for
Lockbox Services.
BACKGROUND INFORMATION: The City of Lodi has received banking services from a local banking
institution, Farmers and Merchants Bank, for an extended period of
time. While services have been adequate, the City desired to
formalize the banking relationship in terms of a banking services agreement. City and bank staff
attempted for approximately one year to obtain a banking services agreement, but were unable to
develop an agreement that was satisfactoryto both parties.
On February 3,2011, the City issued a Requestfor Proposalsfor General Banking Services (RFP). The
RFP was segregated into Mandatory Services and Optional Services. Mandatory Services represent the
basic banking services that the City needs to operate (deposit services, checking, wire transfers, payroll
and accounts for general liability, workers compensation and PCE/TCE clean-up). Optional Services
include lockbox services, remote deposit capture, overnight sweep account, debit/credit card processing
and a line of credit.
The City currently receives all of the Mandatory Services along with the Optional Services of Debit/Credit
Card Processing and Line of Creditthrough Farmers and Merchants Bank, or through a third party in
conjunction with the bank. Costs for these services for the year ended October 2010 totaled $99,958.
Extrapolating these costs over the next five years would yield a cost of $499,750.
The City does not currently utilize an external lockbox, remote deposit capture services, or an overnight
sweep account. All of the services proposed in the RFP are discussed separately below.
Mandatory Services are a package of services that will be awarded to a single vendor. The City can
choose to award Optional Services to the same vendor as the Mandatory Services, to another vendor on
an individual service basis, or could choose to not award the services.
radt Baia r, qty Manager
2
The City received proposals from a total of seven vendors, five of whom provided proposals on
Mandatory Services. Proposals were reviewed by a panel of five City staff. The results of the aggregate
ratings are shown in the table below.
Ranking of Proposals
After evaluating the proposals received, staff interviewed selected vendors regarding their proposals and
performed reference checks.
Staff narrowed the proposals to three vendors for Mandatory Services and related Optional Services and
two vendors for Lockbox Services. The total five-year service costs for the proposals considered are as
follows:
Bank of
Bank of
Bank
Farmers
JP
Process
RT
$218,155
America
Agriculture
of the
and
Morgan/
Pink
Lawrence
$126,531
$182,661
and
West
Merchants
Chase
..... .......................
Debit/Credit Card
Processing
$22032
Commerce
$26268
Bank
Line of Credit
$0
Mandatory Services
4
5
1
3
2
$283,809
$224,499
Lockbox
3
4
2
5
1
Remote Deposit
6
2
1 5
3
7
4
Capture
Overnight Sweep
1
4
3
2
Debit/Credit Card
5
4
2
6
1
7
3
Processing
Line of Credit
1
2
3
After evaluating the proposals received, staff interviewed selected vendors regarding their proposals and
performed reference checks.
Staff narrowed the proposals to three vendors for Mandatory Services and related Optional Services and
two vendors for Lockbox Services. The total five-year service costs for the proposals considered are as
follows:
After reviewing the proposals and the results of the vendor interviews, staff believes it would be in the
City's best interests to bundle the Mandatory Services, Remote Deposit Capture, Debit/Credit Card
Processing and Line of Credit services with a single vendor. Staff is recommending that a contract for
Mandatory Services and the Optional Services of Remote Deposit Capture, Debit/Credit Card Processing
and Line of Credit be awarded to Bank of the West. Estimated costs for the five-year contract for the
bundled services are $135,700.
Staff recommends that Lockbox Services be awarded to Bank of America with a five-year cost estimated
to be $182,661.
Staff is recommending that Overnight Sweep Services not be awarded as this service did notfare well in
the proposal process.
Bank of
the West
F&M
JPMorgan/
Chase
RT
Lawrence
Bank of
America
Mandatory Services
$101,524
$218,155
$174,615
Lockbox
$126,531
$182,661
Remote Deposit
Capture
$12,144
$27,600
$23,616
..... .......................
Debit/Credit Card
Processing
$22032
=—,054
$26268
Line of Credit
$0
$0
$0
Total Cost -5 Year
Contract
$135,700
$283,809
$224,499
$126,531
$182,661
After reviewing the proposals and the results of the vendor interviews, staff believes it would be in the
City's best interests to bundle the Mandatory Services, Remote Deposit Capture, Debit/Credit Card
Processing and Line of Credit services with a single vendor. Staff is recommending that a contract for
Mandatory Services and the Optional Services of Remote Deposit Capture, Debit/Credit Card Processing
and Line of Credit be awarded to Bank of the West. Estimated costs for the five-year contract for the
bundled services are $135,700.
Staff recommends that Lockbox Services be awarded to Bank of America with a five-year cost estimated
to be $182,661.
Staff is recommending that Overnight Sweep Services not be awarded as this service did notfare well in
the proposal process.
3
Total costs for banking services for the five-year contract period are estimated to be $318,361 plus
interchangefees associated with debit/credit card processing.
Mandatory Services
All five of the vendors proposing on Mandatory Services are capable of providing the services required by
the City of Lodi.
Bank of the West was the top selection for Mandatory Services. Its proposal was the lowest cost
proposal as well. Bank of the West has a local branch at the corner of Lodi Avenue and Church Street.
This branch will be the local servicing branch. Bank of the West has a significant presence in the public
agency marketwith over440 public agency clients and more that $1.1 billion of public agency deposits.
Both Bauer Financial and Bankrate.com rate Bank of the West with three stars, on a five-star scale.
Bank of the West has a "Satisfactory" Community ReinvestmentAct rating.
Significant elements of the Bank of the West proposal include waiving FDIC charges for the term of the
contract (potential savings of $72,000 over the five-year term) and providing an Earnings Credit Rate
floor of 0.85% for the term of the contract (City had requested a floor rate of 0.75%). Additionally, Bank
of the West r offering a three-month service charge credit to the City and will accommodate the City's
requirement for a separate collateral pool at no cost. References spoke very highly of the bank's
customer service focus and simplicity of its technology.
Optional Services
Lockbox
Lockbox is a service whereby our customers mail their utility payments to a central location and the
service provider processesthe payments. We currently operate this service in-housewith City staff. The
City has aging equipmentthat will need significant upgrades or replacement in the very nearfuture. The
City is in the final year of vendor support for the current processing equipment. Replacement cost for the
existing equipment is estimated to be a minimum of $60,000 with ongoing annual maintenance costs
exceeding $10,000. Existing staff spends approximatelyfour hours daily processing utility payments that
are mailed to the City. Contracting out this process will relieve the City of a significant capital outlay as
well as free customer service staff for other duties, such as working a customer service window,
responding to customers over the phone or for back office reconciliation -type activities.
Staff recommends that Lockbox Services be awarded to Bank of America. The mailing address for our
utility bills will be San Francisco, CA. The City will incur nominal one-time costs to reformat our billing
stock and envelopes for the lockbox service. These costs will be offset by the savings associated with
eliminating the current remittance processing equipment and maintenance agreement at the end of the
2011 calendar year. City cash flow will also be enhanced as the lockbox service will convert paper
checks into electronic deposits. Electronic deposits clear through the banking system much faster and at
a lower cost than paper checks.
While not the lowest -cost or h ighest-rated vendor proposing on these services, Bank of America presents
a stable company with solid financials and appropriate levels of bonding and insurance to protect the
City's interests. The lowest cost vendor for Lockbox Services, RT Lawrence, presents some challenges
to the City regarding coverage for corporate malfeasance. RT Lawrence maintains a Crime Policy that
covers up to $500,000 for employee malfeasance. RT Lawrence does not carry a bond that would
protect the City against corporate malfeasance. It is expected that the Lockbox operation will handle
approximately $200,000 of the City's money on a daily basis. Moreover, RT Lawrence's balance sheet
does not reflect significant assets to meet any un -bonded claims. As such, staff is not recommending RT
Lawrence for Lockbox Services. The proposal`From Bank of America, the second -lowest cost proposal, is
$56,130 higherthan RT Lawrence over the proposed five-year contract period.
0
Remote Deposit Capture
Remote Deposit Capture (RDC) is a banking service that allows for the conversion of a paper check into
electronic media that can be passed through the banking system. RDC will speedup the deposit process
by allowing electronic deposit of checks. Currently, checks received by the City are sent from outlying
locations to Finance, processed by Finance and then sent by courier service to our bankfor processing.
This flow typically takes two or three days from the day the check is presented to City staff to the day it
arrives at the bank. With RDC, checks presented at outlying locations and at Financewill be "deposited"
electronically on the same day they are received. This will increase the City cash flow and reduce
banking cost.
Staff is recommending that RDC services be awarded to Bank of the West, who is also recommendedfor
award of Mandatory Services. Additionally, Bank of the West was also the highest ranked and lowest
cost vendor for this service. While the City reserved the right to award these services independent of the
award for Mandatory Services, the review committee believes that it is in the City's best interests to
bundle RDC services with the Mandatory Services.
RDC services are billed monthly based upon the volume processed. Additionally, costs of the equipment
can be billed as a one-time cost or as a monthly cost. Estimated costs for the five-year term of the
agreement are $12,144.
DebitlCredit Card Processing
The City accepts a variety of debit and credit card products as a way for our customers to pay for fees
and services. Pricing for processing is currently underthe "Tiered or Category" pricing structure. All
vendors proposed that the City pay for such services on an "interchange plus" fee basis. Interchange
fees are fees that are set by the card issuers and charged to the merchants who accept the cards. The
intermediary processor adds a percentage on to the interchange fees to cover its processing costs. The
intermediary processor may also add additional per transaction fees, if it so choose.
Staff is recommending that Debit/Credit Card Processing services be awarded to Elavon, the firm that
partnered with Bank of the West for this service. The Elavon/Bank of the West proposal was the lowest
cost proposal for this service. While the City reserved the right to award these services independent of
the award for Mandatory Services, the review committee believes that it is in the City's best interests to
bundle Debit/Credit Card Processing services with the Mandatory Services.
Key elements of the Elavon/Bank of the West proposal include the lowest rate of add-on percentage (10
basis points) and no per -transaction fees. By comparison, other vendors considered included up to a 19
basis point add-on rate and transaction fees up to $0.07 pertransaction. Debit/Credit Card Processing
services are billed monthly. Estimated costs, excluding interchange fees, for the five-year term of the
agreement are $22,032.
Line cf Credit
The City currently has a $3 million line of credit to support working capital needs of the Electric Utility.
This line of credit is provided at no cost to the City by our current bank. In the event the line of credit was
drawn upon, the City would be required to secure the amount of the draw with a CD. Interestwould be
based upon the 30 -day LIBOR rate plus 1.5 percent, with a minimum rate of 5.5 percent or a negotiated
rate.
All respondents provided some form of facility with regard to a line of credit, however, most respondents
conditioned the line of credit upon award of the Mandatory Services portion of the RFP. All respondents
indicated that aline of credit would be subject to credit approval. Staff recommends that the City pursue
a line of credit with Bank of the West, the vendor awarded the Mandatory Services. Staff will bring back
to Council the actual line of credit for approval.
5
Overnight Sweep
An overnight sweep is an investment vehicle used to maximize interest earnings for idle City funds. City
staff currently manages this type of a process manually by moving funds between accounts within our
current bank or between our current bank and LAI F. A number of the vendors recommended that we not
utilize a sweep account in the current interest rate environment. Staff concurs with this recommendation
and is not recommending that we use a sweep account with any of the vendors. Staff will continue to
maximize interest earnings with our current processes.
Summary
Staff evaluated all proposals on an equal basis and considered the impacts of moving our banking
relationship away from our current provider. Staff recognizes the value of the long-term relationship we
have enjoyed with Farmers and Merchants Bank and does not take lightly the recommendation to move
to another vendor. However, our duty to be fiscally responsible stewards of the public funds, particularly
in difficult economic times, guides our recommendation.
Awarding the contracts will begin a transition period between the awarded vendor and our current bank
for the Mandatory Services and selected Optional Services. As we are not currently contracting for
Lockbox Services, we will separately work with that vendor to transition the services from City -provided
services to contracted services. All vendors were required to provide a conversion plan as part of their
proposal. It is anticipated that conversion will be completed by July 1, 2011.
FISCAL IMPACT: The five-year combined cost of services recommended to be awarded is
$318,361. The recommendation includes adding Remote Deposit Capture
and Lockbox services. Adding these additional services will allow existing
staff to provide a higher level of customer service.
Current costs for Mandatory Services along with Debit/Credit Card Processing and a Line of Credit would
be approximately $499,750 for the next five years under our current operating model and does not
include Remote Deposit Capture and Lockbox services. Projected savings by awarding the
recommended contract for all services except Lockbox is $364,050 over five years, as compared with our
current provider, and includes the additional service of remote deposit capture.
FUNDING AVAILABLE: Annual appropriations wilI be included in each budget year to provide for
the costs of banking services.
Jordan Ayers
Deputy City Manager
JA/ja
RESOLUTION NO. 2011-
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER AND TREASURER
TO EXECUTE ALL AGREEMENTS NECESSARY TO
AWARD CONTRACTS TO BANK OF THE WEST FOR
GENERAL BANKING SERVICES AND TO BANK OF
AMERICA FOR LOCKBOX SERVICES
WHEREAS, the City issued a Request for Proposals for General Banking
Services on February 3, 2011, and
WHEREAS, said Request for Proposals allowed vendors to propose separately
on Mandatory and Optional Services, and
WHEREAS, the City received proposals from the following vendors for the
services noted in the table below:
WHEREAS, a team of City staff evaluated all proposals and interviewed selected
vendors and performed reference checks on selected vendors, and
WHEREAS, staff believes it is in the City's best interest to award the
combination of Mandatory Services along with Remote Deposit Capture, Debit/Credit
Card Processing (through their partner firm, Elavon) and Line of Credit services to Bank
of the West, and
Mandatory
Lockbox
Remote
Overnight
Debit/ Credit
Line of
Services
Deposit
Sweep
Card
Credit
Capture
Processing
Bank of
X
X
X
America
Bank of
X
X
X
X
X
X
Agriculture
and
Commerce
Bank of the
X
X
X
X
X
X
West
Farmers
X
X
X
X
X
and
Merchants
Bank
JPMorgan/
X
X
X
X
X
X
Chase
Process
X
X
Pink
RT
X
X
X
Lawrence
WHEREAS, a team of City staff evaluated all proposals and interviewed selected
vendors and performed reference checks on selected vendors, and
WHEREAS, staff believes it is in the City's best interest to award the
combination of Mandatory Services along with Remote Deposit Capture, Debit/Credit
Card Processing (through their partner firm, Elavon) and Line of Credit services to Bank
of the West, and
WHEREAS, staff believes it is in the City's best interest to award Lockbox
Services to Bank of America, and
WHEREAS, staff believes it is not in the City's best interests to award Overnight
Sweep services at this time.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi
does hereby authorize the City Manager and Treasurer to execute all agreements
necessary to award contracts to Bank of the West for General Banking Services (to
include Mandatory Services, Remote Deposit Capture, Debit/Credit Card Processing
(through their partner firm, Elavon), and Line of Credit Services as defined in the
Request for Proposals) and to Bank of America for Lockbox Services.
Dated: May, 18, 2011
------------------------------------------------------------------
------------------------------------------------------------------
hereby certify that Resolution No. 201 1- as passed and adopted by the City
Council of the City of Lodi in a regular meeting held May, 18, 2011, by the following
votes:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS—
ABSENT: COUNCIL MEMBERS—
ABSTAIN: COUNCIL MEMBERS—
RANDI JOHL
City Clerk
2011-
Banking Services Contracts
Lodi City Council
May 18, 2011
Existing Banking Services
. Provided By Farmers and Merchants
Bank for approximately 60 years
. Basic Services (deposits, checking, payroll,
wire transfers)
. Debit/Credit card processing through third
party (Elavon)
. Line of Credit
. Annual Cost of about $100,000
2
Request for Proposals
. City issued RFP in February 2011
. RFP included Mandatory Services and
Optional Services
• Seven responses
3
Mandatory Services
. Deposits
. Checking
. Payroll
. Wire Transfers
• Special accounts for Liability, Workers
Comp,, PCE/TCE clean-up
0
Optional Services
. Lockbox
. Remote Deposit Capture
• Overnight Sweep
. Debit/Credit Card Processing
. Line of Credit
5
Mandatory Services Costs
. Current annual cost
. 5 -year total cost
. Proposed 5 -year cost
. Bank of the West
. IPMorgan/Chase
. F&M
$41,088
$205,440
$101,524
$174,615
$218,155
0
Lockbox
. Ideal for high volume services
. Utility billing
. Currently handled in-house by City staff
• Aging equipment
• Time intensive
. Advantage to contracting out
• Eliminate need to replace equipment
• More efficient way of doing business with fewer
staff
Lockbox Costs
. Service not currently provided
. Proposed 5 -year cost
. RT Lawrence $126,531
. Bank of America $182,F661
Remote Deposit Capture
. Converts paper checks to electronic media
. Speeds processing through the banking
system
. Allows for electronic deposits from outlying
locations
. Reduces dollar volumes turned over to
courier service
. New service for the City of Lodi
9
Remote Deposit Capture Costs
. Service not currently provided
. Proposed 5 -year cost
. Bank of the West $ 1 2, 144
. IPMorgan/Chase $26,r616
. F&M $27,F600
10
Overnight Sweep
. Investment vehicle to maximize interest
earnings
• Currently handled in-house manually
. Not recommended by most vendors due
to low interest rate environment
. City concurs and is not recommending this
service
11
Debit/Credit Card Processing
. Applicable to cards received by the City
for payment of services
. Moving from "Tiered or Category,"'
pricing to ""Interchange Plus"" pricing
. Currently provided through a third party
(Elavon) to F&M
12
Debit/Credit Card Processing
Costs
. Current annual cost
. 5 -year service cost
. Proposed 5 -year cost*
. Bank of the West (Elavon)
. IPMorgan/Chase
. F&M (Elavon)
*Plus interchange fees
$58,870
$294,350
$22,032
$26,268
$38,054
13
Line of Credit
• $3 million line of credit available for
liquidity needs of Electric Utility
• Currently provided by F&M Bank at no
cost
. Proposed to be provided by Bank of the
West at no cost
14
Evaluation Process
. Team of City staff rated each proposal
based upon common criteria
. Team selected 3 vendors to interview
for Mandatory Services and Optional
Services
. Team selected two additional vendors
to review solely for Lockbox Services
15
Evaluation Results -Rankings
*Bank did not initially submit a proposal for this item
16
Bank of
Bank of
Bank of
Farmers
JP
Process
RT
America
Agriculture
the West
and
Morgan/
Pink
Lawrence
and
Merchants
Chase
Commerce
Bank
Mandatory Services
4
5
1
3
2
Lockbox
3
4
2
5
1
Remote Deposit
6
2
1
5
3
7
4
Capture
Overnight Sweep
1
4
3
2
Debit/Credit Card
5
4
2
6
1
7
3
Processing
[Line of Credit
1
2
3
*Bank did not initially submit a proposal for this item
16
Cost Summary
17
Bank of the
West
Farmers
and
Merchants
JPMorgan/
Chase
RT
Lawrence
Bank of
America
5 Year Total Cost
Mandatory Services
$101,524
$218,155
$174,615
Lockbox
126,531
182,661
Remote Deposit Capture
12,144
27,600
23,616
Overnight Sweep
Debit/Credit Card Processing
22,032
38,054
26,268
Line of Credit
0
Total 5 year cost, excluding Lockbox
$135,700
$283,809
$224,499
5 year cost, Lockbox
$126,531
$182,661
17
Recommendations
. Bank of the West
. Award Mandatory Services and the
Optional Services of Remote Deposit
Capture, Line of Credit and Debit/Credit
Card Processing (to partner firm Elavon)
. Bank of America
. Award Lockbox Services
IN
Rationale -Mandatory Services
. Bank
of the West
offering
significantly
lower
overall cost
for the
recommended
services
• Significant public agency presence
. References spoke highly of the
customer service focus and ease of
using the banks' technology platform
19
Rationale -Lockbox
. Bank of America offers a solid product
and appropriate levels of insurance
coverage
. Highest rated vendor, RT Lawrence, did
not have bonding to cover corporate
malfeasance
20
Action Requested
. Adopt resolution authorizing City
Manager and Treasurer to execute
agreements necessary to award
contracts to Bank of the West for
General Banking Services (including
Debit/Credit Card Processing to partner
firm Elavon) and to Bank of America for
Lockbox Services
21
Questions?
farmers & Merchants flank of Central California
August 27,2010
Jordan Ayers
Deputy City Manager
City of Lodi
310 W. Ef Street
Lodi, CA 95240
Dear Jordan:
KEN SMITH
Executive Vice President
Heal of Business .11eo*ets
We are pleased to provide you with Agreements for the following cash management services
between the City of Lodi, a municipal corporation of the State of California (City) and Farmers
and Merchants Bank of Central California (Bank).
1. Online Banking for Business Agreement
2. ACH Agreement
3. Wire Transfer Agreement
4. Positive Pay Agreement
5. Contract for Deposit of Moneys
Services described in the above Agreements are provided to the City for a period of Five
(5) years from the date of the execution of the above referenced Agreements unless the
Agreements are otherwise extended or modified. The City shall have the right to extend
the Agreements for 3 additional one year terms.
The cost of services provided under the above referenced Agreements shall be fixed for a
period of five years from the date of execution at the rate described in the attached
pricing addendum. You will be provided with a monthly Analysis Statements detailing
the City's monthly activity, associated charges and the earnings allowance. If the monthly
charges exceed your monthly earnings allowance the City's general account will be
charged 10 days after the month end.
All services not covered in the above referenced Agreements are fully described and
subject to the terms and conditions outlined in the Customer Agreement and Schedule of
Charges which you have been provided.
Equal Member
U Le de►9 111 West Pine Street• Lodi, California 95240-2110• (209)367-2465' fax (209) 367-2467 FDIC
As you know we consider it to be a privilege to be able to provide banking services to the City
of Lodi. We believe that our long relationship has been a great benefit to both of us and has
helped build this great community.
Thank you again for your business and look forward to our continuing relationship.
Sincerey
Addendum
City of Lodi Exception Pricing
CUSTOMIZED PRICING FOR CITY OF LODI
Service Provided
Unit Price
Account Maintenance
15.00
FDIC Insurance Charge
3% 30/365 basis
Checks Paid
0.10
Deposits,,
0.90
Deposit Adjustments
5.00
Charge Back
8.00
Local Items D66ositdd,.0.05
Transit Items t)epositqdl1,�.'',�,.�,-..":;
Remote Deposit Capture Items Deposited
0.03
Non Sufficient Funds - NSF
32.00
ACH Debits/Credits
0.00
Currency Furnished - Per $1
.0012
Currency/Coin Deposited - Per $1
.0012
Telephone Transfer
0.00
Incoming Dourest c/Interna: anal Wire
Out oin Domestic VVira.�
�ooa
Outgoing International Wire
50.00
Stop Payments
25.00
Positive Pay
50.00
Positive Pay Exception
1.00
Account Reconciliation
50.00
Business Online Banking
0.00
Business Online Banking w/ ACH or Wires
20.00
Business Online Banking w/ ACH & Wires
20.00
Business Bill Pa waived with $10k ADB
9.95
ACH Ori .: ation Deb1WCredits
Remote Deposit Capture
75.00
• Highlighted items are exception priced
City of Lodi
r. Actual 2010 Account Analysis and Proposed Charges
:.
Service Provided
Monthly
Quantity
Unit Price
2010 Actual Analysis
Charges
Monthly RFP
Quantity
RFP New
Charges
Annual New
Charges
Account Maintenance
7
15.00
1,260.00
5
$
15.00
$
900.00
FDIC Insurance Charge
1
3604.79
3,604.79
1
$
3,604.79
Debits
1350
0.15
21430.00
1,455
$
0.10
$
1,746.00
Deposits
79
0.90
853.20
83
$
0.90
$
896.40
On Us Items Deposited
2751
0.05
1,650.60
2,295
$
0.05
$
1,377.00
Local Items Deposited
8930
0.05
5,358.00
.9 ,721
$
0.05
$
5,832.60
Transit Items Deposited
1987
0.05
1,192.20
2183
0.05
$
1,309.80
Incominq Wire
1
10.00
120.00
1
$
10.00
$
120.00
Outgoing Wire Transfer
11
10.00
1,320.00
11
$
15.00
$
1,980.00
CurrencyDeposited $1.20/$1000
678
1.20
9,763.20
705
$
0.90
$
7,614.00
Non Standard Coin Ba
88
7.00
7,392.00
90
7.00
7,560.00
Positive Pay Service Fee
1
50.00
600.00
1
$
50.00
$
600.00
ACH Module
1
20.00
240.00
1
$
20.00
$
240.00
ACH Origination Debits/Credits
2062
0.10
2,474.40
2,180
$
0.10
2,616.00
ACH Debits/Credits
1,814
0.10
2,176.80
Safekeeping
1
$
100.00
$
1,200.00
Account Reconciliation
1
$
50.00
$
600.00
Deposit Adjustments
2
$
5.00
$
120.00
Stop Payment
2
$
20.00
$
480.00
Positive Pay Exceptions
8
$
0.50
$
48.00
Account Recon Add'I Account
1
$
30.00
$
360.00
Char eback
.: Analos
Total 2010 Gross Analysis Charges
Net Analysis: Char es for 2010 ::
Elavon Merchant Processing
Total Bank Charges 2010
Summary
$
$
$
1
38,258.39
57,892.00
ti1' 991.4&
34
$
8.00
$
$
3,264.00
41,040.60
Balance :Summa ..for 20.110
Average Collected Balance Group Analysis $ 3,871,516.37
Average Collected Balance Money Market Accounts $ 11,888,150.23
Earnings Allowance Rate 0.75%
Scenario #1
Scenario #2
Scenario #3
Combined Account
Combined Account
Checking Account
Money
Market Account
Avera a Collected Balances
$
15,759,666.00
$
15 759 666.00
$
7,879,833.00
$
7,879,833.10
Earnings Credit Rate Allowance/Interest Rate
0.75%
0.75%
0.75%
Earnings
$
118 197.50
$
118 197.50
$
59 098.75
Cost of Services
$
43 470.64
$
43 470.64
$
43 470.64
Excess Earnings
$
74 726.86
$
74 726.86
$
15 628.11
.55% on $9,963.581
0.55%
Interest Earned
$
54,799.70
$
43,339.08
*No interest aid on excess
*Hybridoffering interest on
excess earnings
*Separateaccounts no
earnings on excess in
Checkin Account
OCC: Enforcement Actions
tVice ref the Comptroller of the Currency
%..II:uM1SY:S.N .d :�aM:n.N H�tkS
Ensuring a Safe and Sound National Banking System for all Americans.
IS t1-IWUW A of 1. T.an ,,
Home About OCC News and Issuances Publications Tools and Forms Topics
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Enforcement Actions
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The following financial institutions, organizations, or affiliated parties have been the subject of OCC enforcement actions.
Selection criteria: Bank Action' None individual Action -All From MonthNear - 0111987 ToMonthNear-1212011 IAP'sName- (Blank ) Bank
Name- Bank ofAmerica NA Company Name- (Blank) EA Number- (Blank) Docket Number -(Blank) Bank City - (Blank) State/Terr - All
New Search
Action
Party Subject to Action Organization I Type
Row (Name, Company Name, Bank Name) Location And
Amount
1
Arias, Norma, Bank of America National Trust and Savings
San Francisco,
Date Docket
Association
CA
2
Arroyo, Gabriela M., Bank Of America Na
Charlotte, NC
3
DeArruda, Denise, Bank of America National Trust and Savings
San Francisco,
Association
CA
4
Del Aguila, Mark, Bankof America National Trust and Savings
San Francisco,
Association
CA
5
Faulkner, Lynne, Bank of America National Trust and Savings
San Francisco,
Association
CA
6
Ford, GingerA., Bank of America National Trust and Savings
San Francisco,
Association
CA
7
Gonzalez, Steven D., Bank Of America National Trust And
San Francisco,
Savings Association
CA
8
Maloney, Maureen, Bank of America National Trust and Savings
San Francisco,
Association
CA
9
Mark, Jason, Bank of America National Trust and Savings
San Francisco,
Association
CA
10
McRoyal, Shonn, Bank Of America National Trust & Savings
San Francisco,
Association
CA
11
Panlilio, Jairoski, Bank of America National Trust and Savings
San Francisco,
Association
CA
12
Sta-Iglesia, Charlynne, Bank of America National Trust and
San Francisco,
Savings Association
CA
13
Thornton, La'Qual Mela, Bank of America National Trust and
San Francisco,
Savings Association
CA
14
Villanueva, William G., Bank Of America National Trust And
San Francisco,
SavingsAssociatio
CA
New Search
IIla29
1a29
1a29
Start Date
Term
And
Date Docket
EA
And Number
Number
TermDoc
10/2/1996
5/1912000
611212001
713D11997
1 a29
611211996
1 a29
12110 996
1a29
311212003
N/A
1829
5/1912000
1829 8/1211996
1a29 3111/1997
REM 11/8/1997
97-86
1829 2/23/1996
1829 11/19/1996
1a29 4/23/1997
REM 3/28/2000
2000-41
This list reflects the most recent name of banking organizations; the most recent names may or may not be the banking organizations' names when the
enforcement documents became final.
"Closed" denotes documents for banking organizations without active charters.
Denotes an exception to the enforcement action. For example, 1829 "Removals"do not have associated document numbers. Please contact the
Communications Division at (202) 874-4700for further information about the exception.
These lists are NOT guaranteed to be comprehensive.
The Office of the Comptroller of the Currency expressly disclaims any responsibility for the acts of any individual or entity subject to an enforcement action,
whether or not that individualor entity appears on these lists.
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..,.b.. . ... .
Office of the Comptroller of the Currency Site Map IText Size: BM L
ConKdndw ue IM CvnvlrY
NHnx+ahal.x nt NaM+nat H.VkS
Ensuring a Sate and Sound National Banking System for all Arre»cans,
us mmmm�W M It" T• mry
Home About OCC News and Issuances Publications Tools and Forms Topics
Home> Tools and Forms> EnforcementActions Search
EnforcementActions
The following financial institutions, organizations, or affiliated parties have been the subject of OCC enforcement actions.
Selection criteria: Bank Action -All Individual Action -None From Month/Year - Of11987 To Month/Year -1212011 IAP's Name -(Blank) Bank
Name- Bank of America Company Name -(Blank) EA Number -(Blank) Docket Number - (Blank) Bank City - (Blank) State/Terr - All
New Search
Row Party Subject to Action
(Name, Company Name, Bank Name)
1 Bank Of America Nw, National Association
2 Bank of America, NationalAssociation
3 Bank of America, NationalAssociation
4 Bank of America, NationalAssociation
5 Bank Of America, NationalTrust And Savings Association
6 Bank Of America, Nt& Sa
New Search
Action Start Date Term Date
OrZnnatlon n I T e AnAnd And Docket Number
/�i�noc
ounfd EA Number TermDoc
BCMP
6/15/1994
Seattle, WA $75,000
94-103
Charlotte, NC C&D
4/13/2011
2011.048
Charlotte, NC FA
2/9/2005
2005-10
Charlotte, NC FA
12/7/2010
2010-239
San Francisco, CA BCMP
$100,000
1/15/1992
974
1/14/1992
San Francisco, CA SEB
974
AA -EC -11-12
2/27/2007 AA -EC -04-35
2007-012
1/31/1997 AA -SCP -92-04
97-10
This list reflectsthe most recent name of banking organizations; the most recent names mayor may not be the banking organizations' nameswhen the
enforcement documents became final.
"Closed" denotes documents for banking organizations without active charters.
Denotes an exception to the enforcement action. Forexample, 1829 "Removals" do not have associated document numbers. Please contact the
Communications Division at (202) 874-4700for further information about the exception.
These lists are NOT guaranteed to be comprehensive.
The Office of the Comptroller of the Currency expressly disclaims any responsibility for the acts of any individualor entity subject to an enforcement action,
whether or not that individualor entity appears on these lists.
Accessibility I Web Site Privacy Policy I Web Site Policies I Contact Us I Departmentof the Treasury I USA.gov I No FearAct I Freedom of Information Act I Contact
Webmaster
Each depositor insured to at least $250,000 per insured bank
Horn > Recutation & Examinations > Bank Examinations > FDIC EnforcementDecisionsand Orders
FDIC Enforcement Decisions and Orders
FDIC: Enforcement Decisions and Orders - Search Results
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Numberof matches: 12 Page 1 of 1
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DoDockett8
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Individual
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mmlddl yy)
(mmlddl yy)
organization
9
action
Numbers)
BANK OF THE
WEST
% 20_10-05 _35
1
'312010
ORDER TO PAY
SAN FRANCISCO.
FDIC -10-253k
11CALIFORNIA
I�
NOTICE OF
INTENT[UN TO
PROHIBIT FROM
BANK OF THE
FURTHER
WEST; FARMERS
PARTICIPATION,
TRUST& SAVINGS
NOTICE OF
2009-10-85
BANK
ASSESSMENTOF
2
3/6/2009
CIVIL MONEY
FDIC -09-396e
SAN FRANCISCO;
PENALTY,
FDIC -09-397k
EARLING,
FINDINGSOF
CALIFORNIA;
FACTAND
IOWA
CONCLUSIONSOF
LAW, ORDER TO
PAY, AND NOTICE
OF HEARING
BANK OF THE
WEST (FOMERLY
COMMERCIAL
FEDERALBANK,
KENNETH D.
ORDER TO PAY,
1[291p.Q2�a
OMAHA, NE) AND
WAITE
ORDER OF
3
/1712010
FARMERS TRUST
PROHIBITION
FDIC -09-396e
SAVINGS BANK,
SAN FRANCISCO,
FROM FURTHER
FDIC -09-397k
EARLING.IA
CALIFORNIA
PARTICIPATION
SAN FRANCISCO,
CALIFORNIA
BANK OF THE
WEST, THE
1[-2�'IQ�2-_48
4
/22/2010
ORDER TO PAY
THOMAS,
FDIC -09-429k
OKLAHOMA
BANK OF THE
SEMIDIESEL—��—
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§L
ii n r•l• ..,._ 5/1R/201
5
3/1/2008 SAN FRANCISCO. FURTHER FDIC -08-044e
CALIFORNIA CALIFC MOM PARTICIPATION
CActic
date
Party subject to action
Action taken
Issue
Termination
Banking Individual
Enforcement
action
Dou et&
�oc�ce
(mm/ddlyy)
(mm/dd/yy)
organization
�
u
Number(s)
BANK OF THE CASSIDY ORDER OF 12009-07-24
WEST JANOSKY
6
PROHIBITION
7/1612009
SAN FRANCISCO, SAN FRANCISCO, FROM FURTHER FDIC -08-134e
PARTICIPATION
CALIFORNIA CALIFORNIA
7
8
10/22/1991
BANK OF THE ORDER
WEST WITHDRAWING 115352
NOTICE OF FDIC -91-197b
PARKER, CHARGES AND OF
COLORADO HEARING
BANK OF THE ORDER
WEST TERMINATING11f 5369
11/25/1991
SECTION 8(A) FDIC -91-199a
PARKER, PROCEEDING
COLORADO
BANK OF THE DONICE MEDINA ORDER OF
9
611512010
SAN FRANCISCO, FROM FURTHER FDIC -10-075e
SAN FRANCISCO, CALIFORNIA PARTICIPATION
CALIFORNIA 1II
10
512012008
BANK OF THE
WEST
SAN FRANCISCO,
CALIFORNIA
ANITA R. LUONG
SAN FRANCISCO,
CALIFORNIA
to action
ORDER OF
PROHIBITION 12008-05-05
FROM FURTHER FDIC -07-202e
PARTICIPATION
Action taken
c7�f once
Parti subject
❑(�
Document &
Issue
Termination
Banking
Individual
Enforcement Docket
(mm/dd/yy)
(mm/dd/yy)
organization
action Number(s)
BANK OF THE
WEST
ORDER TO PAY 115Z_�_
11
12/10/1998
CIVIL MONEY FDIC -98-102k
WALNUT CREEK,
PENALTY
CALIFORNIA
BANK OF THE
KEVIN J. DAVIS
ORDER OF
12
WEST
PROHIBITION 112624_
FDIC
6/5/2006
SAN FRANCISCO,
FROM FURTHER -06-097e
SAN FRANCISCO,
CALIFORNIA
PARTICIPATION
CALIFORNIA
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Page 2 of
5/1 R/7(11
May 18, 2011
Farmers & Merchants Bank of Central California
KEY POINTS FOR THE CITY COUNCIL'S CONSIDERATION
FOR MAINTAINING A BANKING RELATIONSHIP WITH F&M BANK
1. F&M Bank has maintained a strong banking relationship with the City of Lodi
for over 60 years.
2. The Bank's local Executive Management Team quickly responded to the
City's need for a $3,000,000 Line of Credit to help protect its credit rating,
with no origination or renewal fees.
3. The Bank committed to pricing for a period of 5 years in August 2010, with
individual contracts in place for all services.
4. The City of Lodi's net charges were only $4,099.45 in Calendar 2010.
5. The City was able to use their Money Market Balances in their Account
Analysis to offset service charges.
6. The Bank paid the City of Lodi $47,938.95 in interest on their Money Market
accounts, at an above market rate.
7. We believe that errors have been made in the calculation of the historical
and proposed service charges. For example: A savings of $72,000 was
estimated on FDIC Insurance from Bank of the West. The total FDIC charges
in 2010 were only $3,600/yr or $18,000 over a five year period.
8. The Bank remains committed to the citizens and City of Lodi as
demonstrated through our
a. employment of over 200 individuals in the city of Lodi;
b. and support, in both dollars and time, of community events and
human care programs;
c. annual purchases of over $4 Million from local merchants.
d. The majority of our shareholders live in the area and have received
annual cash dividends totaling $40.6 Million over the past 5 years.
12YH
ousing Member
Lender Sacramento • Elk Grove • Galt• Lodi • Linden ® Stockton • Modesto • Turlock • Hilmar® Merced FDIC