HomeMy WebLinkAboutAgenda Report - January 20, 1988 (40)C G- N C I L C O M M U N I C A, 1 0 N
FROM: THE CITY MANAGM OFFICE January 20, 1988
SUBJECT: AUTHORIZE THE CITY MANAGER AND CITY CLERK TO ENTER INTO AN AGREEMENT VVIIH THE
FARMERS AND MERCHANTS BANK OF CENTRAL CALIFORNIA REGARDING CITY CREDIT CARDS.
PREPARED BY:
City Manager
RECGMMENDED ACTION: That the City Council authorize the City Manager and
the City Clerk to enter into an agreement with the
Farmers and ML -chants Bank of Central California for
the issuance of City credit cards to certain staff
members as enumerated herein.
,h,. ROUND ll44CRMATICN For the past two years or so the City has utilized
American Express credit cards in conjunction with
attendance by the City. Council and staff at
conferences, training seminars and other
miscellaneous meetings. It is recommended that the City Council authorize a
change to MasterCard issued by the Farmers and Merchants Bank of Central
California for reasons of convenience and cost. The specific limits, which
may be changed from time to time by Council action will be:
AUTHORIZED
NAME TITLE AMOUNT
• PETERSON, Thomas A. City Manager $ 5,000
• GLENN, Jerry L, Assistant City Manager 5,000
• RDMCHE, Alice M. City Clerk 10,000
• HOLM, Robert H. Finance Director 5,000
• SCHROEDER, James B • Community Development Director 5,000
. WILLIAMSON Ronald W • Parks and Recreation Director 5,000
It has been our experience that the use of these
cards provides the City with excellent accountability of expenditures in these
areas.
TAP:br
Respectfully submitted,
Thomas A. Peterson
City Manager
CITY COUNCII
EVELYN ,tit OLSON. Mayor CITY OF L O D I
JOHN R (Randy) SNIDER
Mayor Pro Tempow CITt HALL. 221 WEST PINE STREET
DAVID M. HINCHMAN CALL BOX 3006
JAMES W PINKERTON, Ir LODI, CALIFORNIA 95241-1910
FRED M. REID (209) 334-5634
Tf YEWPIER (209)333.6795
January 21, 1988
Nk Cheryl Rau
Assistant Vice President
Farmers and Merchants Bank of
Central California
P. 0. Box 380
121 W. Pine Street
Dear Ms . Rau.
THOMAS A PETERSON
CitV Manager
ALICE Ni REIMCHE
City Clerk
RONALD M STEIN
City Attorney
This letter will confirm that the Lodi City Council in motion action
taken at a Regular Meeting held January 20, 1987 authorized the City
Manager and City Clerk to enter into an agreement with the Farmers and
Merchants Bank of Central California for the issuance of City credit
cards to certain staff members as enumerated below.
NAME TITLE AUTHORIZED AMOUNT
Peterson, Thomas A. City Manager $5,000
Glenn, Jerry L. Assistant City Manager 5,000
Reimche, Alice M. City Clerk 10,000
Holm, Robert H. Finance Director 5,000
Schroeder, James B. Community Development
Director 5,000
Williamson, Ronald W. Parks and Recreation
Director 5,000
Very truly yours,
ALICE M. FHVICFIE
City Clerk
cc: NSC Robert Holm
Finance Director
January 11, 1988
Mr. Thomas A. Peterson
City Manager
City of Lodi
Call Box 3006
Lodi, CA 95241
Dear Mr. Peterson;
We have received your written authcrization to establish six separate
MasterCard accounts for the City of Lodi.
Upon receipt of written proof of authority from the City Council to
establish these accounts, we will process your request.
Attached, please find a Credit Card Agreement and Disclosure and
an Addendum to the Credit Card Agreement and Disclosure. These are
a sample of the papers that we are preparing for your signature upon
receipt of the MasterCards.
Please do not hesitate to contact me if you have any questions re-
garding this transaction.
Sincerely,
Cheryl Rain
Assistant Vice President
CR/ Imc
encl .
cc: Mr. Robert H. Holm
P.O; BOX 380 • 121 W PINE ST. • LODI, CALIF. 95241 2091334.1101,
N
' FARMERS
ERCHT
RANK COF CENAUFO TRAL
ADDENDUM TO CREDIT CARD AGREEMENT AND DISCLOSURE
The undersigned D corporation O partnership D- association, called the "Company,"
agrees to the following in addition to the terms of the Credit Card Agreement and Disclosure to
which this Addendum is attached:
1. The Bank is authorized to honor any purchase or cash advance transaction negotiated by
anyone the Company authorizes to use any Card issued in connection with MasterCard Account
No. , regardless of the purpose of the transaction.
2. If, between the Company and anyone it authorizes to use the Card, a dispute arises as to
whether the use of the Card was necessary, reasonable or appropriate, such dispute will be
resolved without involving the Bank. For example, if the Company authorizes an employee to use
the Card only for payment of Company expenses but the employee uses the Card for personal
purposes, the Company understands that it will nevertheless be responsible for payment of the
personal charges and, if the employee is to reimburse the Company for such uses, it will be up to
the Company to collect t �e reimbursement directly from the employee.
3. The Company understands that improper use of a Card by an authorized employee
could result in liability to the Bank for amounts in excess of the credit limit assigned to the Account
by the Bank, the credit limit having been established for the Bank's protection and not for that of
the Company. The Company further understands that the Rank may permit use of the Card
beyond the assigned credit limit, in which case the Company will nevertheless be responsible for
the excessive charges.
4. The Company will take all appropriate steps to assure that Cards issued in its name will
not come into the possession of anyone not authorized by the Company to use the Card.
Date:
610.39 tqp
by
Name of Company
(Title)
-_ - ! FARMERS &
®; MERCHANTS
CENTPIAL
BANKC'
CREDIT CARD AGREEMENT AND DISCLOSURE
This Credit Card Agreement and DiSCIOSllre al)I>lies to your MasterCard Account with Farmers 8t Merchants Bank of
Central California ("Rank"). It supersedes all prior agreements and disclosures relating; to your account. If more than one
person applied for ti onr \1asterCard card(s) ("Card")or account ("Account-) each applicant will be jointly and severally
responsible for all payments owed on your Account even if the other applicant(s) do not sign this Agreement.
Purchases -and Advances. You can use, your Card to buy goods and sera ices from any merchant who honors this Card.
You can also use your Card to yet a cash advance from the Rank or ane financial institution authorized to make cash
advances on your Card.
Promise ta_Pay. When you use your Card or permit someone else t o use it to make a purchase or obtain a cash advance,
cou agree to pay the total amount of tile purchase or cash advance. You also agree to pay the finance charges and other
charges described helo\s that may be due on your Account, plus allcosts and expenses, including reasonable attorneys' fees,
that the Bank incurs in enforcing this Agreement.
Credit Limit. Your Credit Limit is estublished by the Hank and is shown below. You agree not to use your Account
beyond that limit. You may request an increase in your Credit Limit. in ochich case the Bank may ask you to furnish
additional financial information.
Statements- Each month you will receive a statement showing your New Balance. wh;ch is your outstanding balance as
of the end of the billing cycle. Your statement will also show the Minimum Payment Due and the Payment Due Date. The
Payment Due Date will be 25 days after the Closing Date of each billing cycle.
Repayment. You can pay off your Nese Balance in full each month or you can pay in monthly installments. The
llinimumPayment Due for each billing cycle will be 5 %o of the New Balance shown on your billing statement, but at least
$10, plus any amount which is past due. If the New Balance is less than 810, you agree to pay the full New Balance.
Payments and credits are credited in the following order: first to pay billed but unpaid finance charges, late charges and
annual membership fees. next to pay purchases and cash advances charged to your Account during previous billing cycles
and then to pay for current purchases and cash advances.
Finance Charges. There are two types of finance charges for your Account - periodic charges and cash advance fees.
Periodic Charges. The periodic charge portion of your FINANCE CHARGE for each billing cycle is figured by
applying a periodic rate of 1.5 `io , which corresponds to a 18 rye ANNUAL PERCENTAGE RATE, to the "Cash Advances
Average Daily Balance" and to the "Purchases Average Daily Balance".
Cash Advances AveragelDaily Balance. If full payment of the New Balance shown on the statement for your
previou billing cycle is receive by us 6y the Payment Due Date shown on that statement, or if that New Balance was
$0, to get the "Cash Advances Average Daily Balance" (including current transactions) the Bank takes the beginning
balance of this portion ofyour Account each day, but, in this instance only, the Bank starts with a beginning balance of
$0 on the first day of the billing cycle, adds any new advances and subtracts any payments and credits allocable to this
portion of your Account balance, not counting in this regard the payments and credits used to pay off the New Balance
shown on your previous billing statement. This gives the daily balance. Then the Bank adds up all the daily balances
for the billing cycle and divides the total by the number of days in the billing cycle. This gives the " Cash Advances
Average Daily Balance".
If you don't pay your previous New Balance in full, to get the "Cash Advances Average Daily Balance" (including
current transactions) the Bank takes the beginning balance of this portion of your Account each day, adds any new
advances and subtracts any payments, credits, unpaid finance charges and late charges allocable to this portion of your
Account. This gives the daily balance. Then the Bank adds up all the daily balances for the billing cycle and divides the
total by the number of days in the billing cycle. This gives the "Cash Advances Average Daily Balance".
Purchases Average. Daily. Balance_. If full payment of the New Balance shown on the statement for your previous
billing cycle is received by the Bank by the Payment Due bate shown on that statement, or if that New Balance was $0,
no periodic finance charge will be assessed for the purchases portion of your Account balance.
If you don't pay your previous New Balance in full, to get the "Purchases Average Daily Balance" (including current
transactions) the Bank takes the beginning balance of this portion of your Account each day, adds any new purchases
and subtracts any payments, credits, unpaid finance charges and late charges allocable to this portion of your Account.
This gives the daily balance. Then the Bank adds up all the daily balances for the billing cycle and divides the total by
the number of days in the billing cycle. This gives the "Purchases Average Daily Balance".
Cach Advance Fee: This FINANCE CHARGE is figured by applying the rate of 4% to the amount of each cash
advance posted to your Account during the billing cycle. There is a minimum $4 Cash Advance Fee for each cash advance.
Annual Membership Fee for Consumer Accounts. You agree to pay a non-refundable Annual Membership Fee of $12.
This fee entitles you to one or two Cards per Account. You agree to pay a non-refundable fee cf $5 per year for each
additional Card for the same Account.
Annual Membership and_Card Fees for Business Accour s. If you area corporation, partnership, sole proprietorship,
or association, you agree to pay a non-refundable Annual Membership Fbeof $12. This fee entitles you to 1 Card. You agree
to pay a non-refundable fee of $5 per year for each additional Card for the same Account.
Late Charge. If we do not receive at least your Minimum Payment by the Payment Due Date at the address shown on
your statement, we will assess a Late Charge of $5 on your Account.
Photocopy Charge. It is important that you retain copies of your sales and cash advance slips, as well as any credit slips
you receive. You will not be sent copies of these slips with your billing statement. Should you request copies of these
documents or past billing statements, a retrieval and photocopy charge of $1.75 per item will be added to your Account.
There will be no charge for copies if they are requested in connection with a billing error (see notice, below).
Returned Payment C;htge- If you make a,payment on your Account by check or dreft and the item is not honored by the
institution upon which it is drawn, the Bank will reverse the payment and will charge your Account a returned item charge
of $7.00. This fee is in addition to any Late Charge which may become payable because your payment is reversed.
Foreign Currency Conversions. If you use your Card in other countries, payments must be made in U.S. dollars for
charges you incur. The foreign merchant or financial institution may impose a conversion fee for converting the transaction
`toU.S. dolls.., and you agree to pay this fee to the Bank "
MC -3 REV. 9-N NP
Security Interest boor Accoont ba,.,nc•e is not secured by any contract. deed of (rust• or security agreement even if the
terms of another contract or u•curit% agreement otherwise provide.
Others Using Your Account - host or Stolen Cards. Sou agree to pay forall purchases and advances madeby anyone to
whom you give your Care! or you o0wr isc autborize to use your Account, whether or not you notify the Bank that such
person will be csint; it. 'I'o cancel our authorization to someone else to use your Card or Account you must let the Bank
knos, in writing and you must recover the (at(] from the person to whom you have given it. If your Card is lost or stolen,
notify the Bank at oil(-(-. You will he responsiblt• for up to $50 if there arc any charges made before you notify the Bank of
the theft or loss. To m,tily the (Sank of it loss or theft, call the Bank at (209) 334.1101 or write to the Bank at P.O. Box577,
Lodi, California 95241. After banking hours call 1-800-556-..678.
ChangeofTerms. The Bank can change the teens of this agreement at any time. Except where limited by applicable law,
the netw terms, including increases in the finance charge rates or the %way we calculate finance charges, late charges and the
minimum payment due. swill apply both to new purchases and cash advances and to the full outstanding balance of your
Account. In accordance with applicable law, the Rank will notify you of any increased charge or change by writing to you
at the most recent address shown for you on the Bank's records.
Cancellation. Except where prior written notice is required by law. tite Dank can cancel your Account at any time by
phone or by writing you at the most recent address shown for you on the Dank'src- ords. You can cancel your Account by
writing the Bank at its address shown on your billing statement. Of course, if your Account is cancelled, you agree to pay
everything you once the Bank, including any amounts that have not hcrn billed to coil yet. Any Card the Bankissued to you
remains the propert} of tile Bank and you agree to return it upon the Bank's request.
Entire Balance Due. If you break any of your promises under this Agreement or any other agreement you have with the
Bank, immediately and without prior notice the Bank can require payment of your entire outstanding balance, close your
Account and cancel all Cards issued on it. Except as limited by applicable law, the Bank can also take such steps if you
become insolvent or if you die. If for any reason the Bank doer not make use of any of its rights under this Agreement on a
particular occasion. that will not limit its rights in the future in any way.
Applicable Law. This Agreement will he governed by the laws of the State of California.
By signing, below, you agree to all of the foregoing, acknowledge receipt of a copy of this Credit Card Agreement and
Disclosure and, if more than one person has applied for this Account, you confirm that you will make this copy available to
him or her since he or she -ill he hound by this Agreement, you understand that your credit limit is $
and acknowledge receipt of Cards for your Account, which is Account No.
Your name is (print)_
for this Account is/are (print)
Date:
The names of lh,; co -applicants
Signature:
THE FOLLOWING APPLIES TO CONSUMER ACCOUNTS
YOUR BILLING RIGHTS — KEEP THIS NOTICE FOR FUTURE USE
This notice contains important information about your rights and responsibilities under the Fair Credit Billing Act.
Notify Us In Case of Errors or Questions About Your Bill
If you think your bill is wrong, or if you need more information about a transaction on your bill write us on a separate sheet
at the address shown on your billing statement. Write to us as soon as possible. We must hear from you no later than 60 days
after we sent you the first bill on which the error or problem appeared. You can telephone us at 209/334-1101, but doing so
will not preserve your rights.
In your letter, give us the following information:
Your name and account number.
• The dollar amount of the suspected error.
Describe the error and explain, if you can, why you believe there is an error. If you need more information, describe
thr item you are not sure about.
Your Rights And Our Responsibilities After We Receive Your Written Bbtice
We must acknowledge your letter within 30 days, unless we have corrected the error by then. Within 90 days, we must
either correct the error or explain why we believe the hill was correct.
After we receive your letter, we cannot try to collect any amount you question, or report you as delinquent. We can
continue to bill you for the amount you question, including finance charges, and we can apply any unpaid amount against
your credit limit. You do not have to pay any questioned amount while we are investigating, but you are still obligated to
pay the parts of your bill that are not in question.
If we find that we made a mistake on your hill, you will not have to pay any finance charges related to any questioned
amount. If we didn't make a mistake, you may have to pay finance charges, and you will have to make up any missed
payments on the questioned amount. In either case, we will send you a statement of the amount you owe and the date that
it is due.
If you fail to pay the amount that we think you owe, we may report you as delinquent. However, if our explanation does
not satisfy you and you write to us within ten days telling us that you still refuse to pay, we must tell anyone we report you
to that you have a question about your bill. And, we must tell you the name of anyone we reported you to. W e must tell
anyone we report you to that the matter has been settled between us when it finally is.
If we don't follow these rules, we can't collect the first $50 of the questioned amount, even if your bill was correct.
Special Rules for Credit Card Purchases
If you have a problem with the quality of property or services that you purchased with your Card, and you have tried in
good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the
property or services. There are two limitations on this right:
(a) You must have made the purchase in your home state or, if not within your home state, within 100 miles of your
current mailing address; and
(b)The purchase price must have been more than $50.
IImw limitations do not 1 if we own or operate the merchant, of if we mailed you the
apply p y advertisement for theProperty
v 1
or services.
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