HomeMy WebLinkAboutRDA BANKING SERVICES 05-03-93WILLIAM A. HUSTON, EXECUTIVE DIRECTOR OF TUSTIN COMMUNITY
TO: REDEVELOPMENT AGENCY
FROM: RONALD A. NAULT, TREASURER OF REDEVELOPMENT AGENCY
SUBJECT: APPROVAL OF BANKING SERVICES PROPOSAL
RECOMMENDATION:
Authorize the Agency Treasurer to enter into an agreement with
First Interstate Bank of Tustin to provide banking services for a
three year period beginning approximately June 1, 1993 through May
31, 1996.
FISCAL IMPACT:
This change is not anticipated to materially increase costs to the
Agency.
DISCUSSION:
At its meeting of February 16, 1993, the City/Agency approved the
Request for Proposal developed and recommended by the City's Audit
Committee. Staff mailed twenty RFP's directly and published a
public notice of the agencies request for banking service
proposals. We received five proposals; Sunwest Bank; Sanwa Bank;
Bank of America; Union Bank and First Interstate Bank. A summary
of the costing of the basic service level requirements is attached.
The Committee made their evaluation based on the quality of the
proposal, the capitalization levels; the service delivery systems
and the investment capabilities. After a full discussion, the
Committee unanimously selected First Interstate Bank as meeting the
overall needs of the Agency and directed the Treasurer to bring
their recommendation to the Agency.
Attached is a copy of the summary information from each proposal.
The full proposals are available for review.
Ronirld A. Nault
Treasurer
RAN:ls
Attachments
a:za7kserv.prp
RDA N0.
7
5-3-93
01
Inter -Com
DATE.
APRIL 27, 1993�5,�'T):
WILLIAM A. HUSTON, EXECUTIVE DIRECTOR OF TUSTIN COMMUNITY
TO: REDEVELOPMENT AGENCY
FROM: RONALD A. NAULT, TREASURER OF REDEVELOPMENT AGENCY
SUBJECT: APPROVAL OF BANKING SERVICES PROPOSAL
RECOMMENDATION:
Authorize the Agency Treasurer to enter into an agreement with
First Interstate Bank of Tustin to provide banking services for a
three year period beginning approximately June 1, 1993 through May
31, 1996.
FISCAL IMPACT:
This change is not anticipated to materially increase costs to the
Agency.
DISCUSSION:
At its meeting of February 16, 1993, the City/Agency approved the
Request for Proposal developed and recommended by the City's Audit
Committee. Staff mailed twenty RFP's directly and published a
public notice of the agencies request for banking service
proposals. We received five proposals; Sunwest Bank; Sanwa Bank;
Bank of America; Union Bank and First Interstate Bank. A summary
of the costing of the basic service level requirements is attached.
The Committee made their evaluation based on the quality of the
proposal, the capitalization levels; the service delivery systems
and the investment capabilities. After a full discussion, the
Committee unanimously selected First Interstate Bank as meeting the
overall needs of the Agency and directed the Treasurer to bring
their recommendation to the Agency.
Attached is a copy of the summary information from each proposal.
The full proposals are available for review.
Ronirld A. Nault
Treasurer
RAN:ls
Attachments
a:za7kserv.prp
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Sur usnStreet
CA 9260Elank
(714)832-5200
March 12, 1993
Ronald A. Nault
Director of Finance
City of Tustin
Community Redevelopment Agency
15222 Del Amo Avenue
Tustin, CA 92680
Dear Mr. Nault:
Sunwest Bank has been happy to serve the City of Tustin's banking needs for the past
several years. We appreciate the opportunity to continue meeting the needs of the
Tustin Community Redevelopment Agency.
As a local bank headquartered in Tustin, we are proud to be the oldest community
bank in Orange County. With five offices and current assets of $225 million, we are
large enough to meet your requirements, yet small enough to respond rapidly to your
needs. The Bank's strong net worth is reflected in a Leverage Capital Ratio of
6.82%, which exceeds the regulatory requirement of 6.50%. The Bank's Risk Based
Capital Ratio is 9%, a full percentage point over the minimum required by law.
Sunwest Bank is not rated by Standard & Poors and Moody's.
Based on a review of the requirements set forth in the Request for Banking Services
Proposal forwarded by your office, Sunwest Bank is pleased to present the attached
proposal for your consideration.
We invite the City of Tustin to take all the factors contained in this proposal into
consideration in its financial institution evaluation process. We are confident that you
will choose to continue your relationship with Sunwest Bank.
Sincerely,
Assistant Vice Pi
Deposit Services
SHE:dg
Attachments
I.
TUSTIN CONIMUNITY REDEVELOPMENT AGENCY
BANKING SERVICES PROPOSAL
CHECKING ACCOUNT
* All account charges, except NSF/OD charges and OD interest, can be offset by account
earnings credits.
H. WIRE TRANSFERS
Outgoing wire transfers are restricted by the Funds (Wire) Transfer Authorization which
specifies those individuals who may authorize a wire verbally. As an added security
measure, the Funds Transfer Authorization provides for a call-back verification. A Bank
employee calls to verify the authenticity of the verbal or telephonic wire transfer
instructions. Maximum transfer amounts can be specified in the authorization (see the
attached Funds Transfer Authorization card).
Unit
Minimum
Cost
Extension Cost
Account Maintenance
$ 15.00
$ 15.00
Items Paid - 33 Checks
.15
4.95
Items Deposited - 15 Checks
.15
2.25
Encoded
.15
Unencoded
.15
Items Returned 3
5.00
15.00
Items Returned 2 (Reclear)
5.00
10.00
Wire Transfer/Out 4
15.00
75.00
Wire Transfer/In 5
10.00
40.00
Stop Payments
10.00
Other
Credits
1.00
Cashier Checks
4.00
NSF/OD Charges
15.00
OD Interest
24% actual overdraft
FDIC Insurance
.23 per
$100 of.deposits per annum
TOTAL MONTHLY COST
$ 162.20
* All account charges, except NSF/OD charges and OD interest, can be offset by account
earnings credits.
H. WIRE TRANSFERS
Outgoing wire transfers are restricted by the Funds (Wire) Transfer Authorization which
specifies those individuals who may authorize a wire verbally. As an added security
measure, the Funds Transfer Authorization provides for a call-back verification. A Bank
employee calls to verify the authenticity of the verbal or telephonic wire transfer
instructions. Maximum transfer amounts can be specified in the authorization (see the
attached Funds Transfer Authorization card).
IV.
V.
SECURITIES CLEARANCE/SAFEKEEPING
Sunwest Bank provides clearance and safekeeping for the Agency's investment portfolio.
Next day advice of credits and debits to the safekeeping account along with a monthly
safekeeping report are available. Securities are currently purchased through and
safekeeping provided by First Interstate Bank as our correspondent bank. Unit costs for
these services are as follows:
Transfer of a Security (in trust)
$ 25
Sell a Security (in trust)
$ 25
Maturity of a Security (in trust)
$ 25
Monthly Maintenance Fee
$ 50
Monthly Trust Administration Fee
$ 5/security
BALANCE REPORTING
Sunwest is pleased to offer an on-line Account Management System (AMS) which
provides ledger and collected balances, total credits, total debits and account activity.
Based on your two existing Sunwest accounts and your historical account activity, AMS
will cost $50 per month with a one time set up fee of $150. A demonstration diskette is
included for your review.
ACCOUNT ANALYSIS
Account analysis allows the balances carried by the City of Tustin to provide earnings
which may offset the cost of servicing. The attached example is based on the Agency's
actual balances and activity for ten months of 1992 and January and February of 1993.
There is no additional cost for account analysis and it is beneficial in providing earnings
credits to cover all or a portion of the cost of services such as the Account Management
System. A sample account analysis is attached (see Exhibit A).
VI. PAYMENT FOR SERVICES
As Exhibit A indicates, your balances will provide account earnings from which the
monthly cost of your services are deducted. If the cost of services exceeds the earnings
allowance, the shortfall will be deducted from your account on a monthly basis. Sunwest
Bank will reconcile analysis charges quarterly and defers monthly charges until quarterly
reconcilement has been completed. Quarterly earnings credits will be carried forward to
the next reconcilement period.
In reviewing your 1992 analysis, excluding the cost of securities clearance/safekeeping,
the Agency's earnings were able to support its expenses. With the additional cost of the
Account Management System of $50 per month, we anticipate that some months will have
a shortfall (see Exhibit B).
We propose a fixed annual fee of $300, exclusive of securities clearance/safekeeping cost
which will be billed separately. The monthly fee will be $25 provided you maintain an
average collected balance of $50,000 in the payroll account and an average collected
balance of $300,000 in the Redevelopment account on an annual basis. Activity on the
accounts may vary by 20%. In all cases, a year end reconcilement will be provided with
a rebate or billing as appropriate.
VII. GENERAL CONDITIONS
Sunwest Bank currently meets the collateral requirements as set forth in the California
Government Code, Sect 53651-53678. We have available Treasury Securities in the
amount of $1.4 million for the purpose of collateralizing local public deposits.
The Bank is committed to this proposal for a period of three years. If the additional three
year option is exercised, the unit cost will increase based on the Consumer Price Index.
Our standard Service Agreement is attached for your review.
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
BANKING SERVICES PROPOSAL
TABLE OF ATTACHMENTS
• December 31, 1992 Financial Report
• Funds Transfer Authorization
• Account Management System Demonstration Diskette
• Account Analysis - Exhibit A
• Account Analysis with Account Management System - Exhibit B
• Service Agreement
• Business Account Agreement and Disclosures
Federal Financial Institutions Examination Council
7n�
Oard Of GO.'Cn10rS OI II,C I-fdl`ral fZCSCrvC $y5lem
)MB Number. 7100.0036
rld,A Deposit buurancc Cnrpnrabon
OMB Number3064-0052
Of 6ce of the Comptroller of the Currency
OMB Number 1557-0081
Expires February 28. 1995
please ref" to page i.
r Table of Contenes. for
t th,,equoeddisc1osure
R4��1
of estimated burden.
Consolidated Reports of Condition and Income for
A Bank With Domestic Offices Only and Total Assets of
$100 Million or More But Less Than $300 Million—FFIEC 033
(921231)
Report at the close of business December 31, 1992 t�S"l
This report is required by law: 12 U.S.C. §324 (State member
banks); 12 U.S.C. §1817 (State nonmember banks); and
12 U.S.C. §161 (National banks).
NOTE: The Reports of Condition and Income must be signed
by an authorized officer and the Report of Condition must be
attested to by not less than two directors (trustees) for State
nonmember banks and three directors for State member and
National banks.
I Cabell F. Cobbs, II
Name and Title of Officer Authorized to Sign Report
of the named bank do hereby declare that these Reports of
Condition and Income (including the supporting schedules)
have b n prepared in conformance with the instructions
iss y the pro ederal re ry � and
a e to e y o ie
7
Signature of Officer Authorized to Sign Report
January 28, 1993
For Banks Submitting Hard Copy Report Forms:
State Member Banks: Return the original and one copy to the
appropriate Federal Reserve District Bank.
State Nonmember Banks: Return the original only in the
special return address envelope provided. If express mail is used
in lieu of the special return address envelope, return the
original only to the FDIC, c/o Quality Data Systems, 2139
Espey Court, Crofton, MD 21114.
FDIC Certificate Number, 21 01 11 61 41
lacni en.ot
This report form is to be filed by banks with domestic offices
only. Banks with branches and consolidated subsidiaries in
U.S. territories and possessions, Edge or Agreement subsid-
iaries, foreign branches, consolidated foreign subsidiaries, or
International Banking Facilities must file the FFIEC 031.
The Reports of Condition and Income are to be prepared in
accordance with Federal regulatory authority instructions.
NOTE These instructions may in some cases differ from
generally accepted accounting principles.
We, the undersigned directors (trustees), attest to the correct-
ness of this Report of Condition (including the supporting
schedules) and declare that it has been examined by us and to
the best of r knowledge and belief has been prepared in
confon/%with th>ons issued by the appropriate
Federal latoryau o d is true and rrect.
Sieur, 111, President & CEO
irec
National Banks: Return the original only in the special return
address envelope provided. If express mail is used in lieu of the
special return address envelope, return the original only to
the FDIC, c/o Quality Data Systems, 2139 Espey Court,
Crofton, MD 21114,
CALL Nn. 182 ;
C_ -�1: 20104 J1 -IO`,
}i):4WL 11 DANK
V.U. BOX 1-2E•
TUSTIN, CA ')2680
L'.,. I .d r,,....",,,,... ..� �i... �._.... �..
12-31-9?
�IdK J6 -1:17o
Lam" Title of Bank: SUNVEST BANK Call Date: 12/31/92 ST -BK: 06-1856 FFIEC 033
.s. 535 East First Street Page RI -1
C. „ State Zip: Tustin, CA 92680
FDIC Certificate No.: 12101116141
Consolidated Report of Income
for the period January 1, 1992—December 31, 1992
All Report of Inane schedules are to be reported on a calendar year-to-date basis in thousands of dollars.
Schedule RI --Income Statement
(1) See instructions for loan classifications used in this schedule.
(2) Includes interest income on time certificates of deposit not herd in trading accounts.
Dollar Amounts in Thousands
1 1 my I
RIAD Mil Thou
<-
1. Interest income:
a.
Interest and fee inane on loans(1):
(1) Real estate loans.........................................................................
4246 7,398
t.a.0 )
(2) Installment loans.........................................................................
4247 1,069
t.a.(2)
(3) Credit cards and related plans............................................................
4248 382
t.a.(3)
(4) Commercial (time and demand) and all other loans .................. I.......................
4249 11,115
1.a.(4)
b.
Income from lease financing receivables:
(1) Taxable leases............................................................................
4505 1,068
1.b.(1)
(2) Tax-exempt leases.........................................................................
4307 0
1.b.(2)
c.
Interest income on balances due from depository institutions(2) ...............................
4115 0
1.c.
d.
Interest and dividend income on securities:
(1) U.S. Treasury securities and U.S. Goverrment agency and corporati on obligations ...........
4027 140
1.d.(1)
(2) Securities issued by states and political subdivisions in the U.S.:
(a) Taxable securities....................................................................
4506 0
t.d.(2)(a)
_
(b) Tax-exempt securities.................................................................
4507 9
t.d.(2)(b)
(3) Other domestic debt securities............................................................
3657 0
1.d.(3)
(4) Foreign debt securities...................................................................
3658 0
1.d.(4)
(5) Equity securities (including investments in mutual funds) .................................
3659 0
1.d.(5)
e.
Interest income from assets held in trading accounts ..........................................
4069 0
1.e.
f.
Interest income on federal funds sold and securities purchasez under agreements to resell .....
4020 476
t.f.
g.
Total interest income (sum of items 1.a through 1.f) ..........................................
1 4107 21,657 1
1.9.
(1) See instructions for loan classifications used in this schedule.
(2) Includes interest income on time certificates of deposit not herd in trading accounts.
Legal Title of Bank: SUNVEST BANK Call Date: 12/31/92 ST -BK: 06-1856 FFIEr n33
Address: 535 East First Street Pac `
City, State Zip: Tustin, CA 92680
FDIC Certificate No.: 12101116141
Schedule RI --Continued
Describe on Schedule RI-E--Explanations-
4
I Year-to-date
Dollar Amounts in Thousands
I RIAD Mil Thou 1
2.
Interest expense:
a. Interest on deposits:
(1) Transaction accounts (NW accounts, ATS accounts, and
telephone and preauthorized transfer accounts) .......................
1 4508 450 1
2.a.(1)
(2) Nontransaction accounts:
(a) Money market deposit accounts (MMDAs) ............................
14509 1,080
(b) Other savings deposits ...........................................
14511 247 I
2.a.(2)(b)
(c) Time certificates of deposit of $100,000 or more .................
1 4174 1,392 1
2.a.(2)(c)
(d) All other time deposits ..........................................
14512 3,005 I
2.a.(2)(d)
b. Expense of federal funds purchased and securities sold under
agreements to repurchase .................................................
14180 0 I
2.b.
c. Interest on demand notes issued to the U.S. Treasury and on
other borrowed money .....................................................
1 4185 0 I
2.c.
d. Interest on mortgage indebtedness and obligations under
capitalized leases .......................................................
4072 42 1
2.d.
e. Interest on subordinated notes and debentures ............................
14200 154 1
2.e.
f. Total interest expense (sum of items 2.a through 2.e) ....................
14073 6,370 1
2.f.
3.
Net interest income (item 1.9 minus 2.0 ....................................
1 ////////////// I
RIAD 4074 1
15,287A 3.
4.
Provisions:
i ////////////// I
a. Provision for loan and lease losses ......................................
I ////////////// I
RIAD 4230 I
4,320 1 4.a.
b. Provision for allocated transfer risk ....................................
I ////////////// I
RIAD 4243 I
0 1 4
5.
Noninterest income:
a. Income from fiduciary activities .........................................
14070 0 I
5.a.
b. Service charges on deposit accounts ......................................
1 4080 992 I
5.b.
c. Trading gains (losses) and fees from foreign exchange
transactions.............................................................
1 4075 0 I
5.c.
d. Other foreign transaction gains (losses) .................................
14076 0 I
5.d.
e. Gains (losses) and fees from assets held in trading accounts .............
14077 0 I
5.e.
f. Other noninterest income:
(1) Other fee income .....................................................
15407 90 I
5.f.(1)
_
(2) All other noninterest income• ........................................
15408 2,673 1
5.f.(2)
g. Total noninterest income (sum of items 5.a through 5.f) ..................
1 ////////////// I
RIAD 4079 1
3,755 I 5.9.
6.
Gains (losses) on securities not held in trading accounts ...................
I ////////////// I
RIAD 4091 1
431 6.
7.
Noninterest expense:
a. Salaries and employee benefits ...........................................
1 4135 5,759 1
7.a.
b. Expenses of premises and fixed assets (net of rental income)
(excluding salaries and employee benefits and mortgage interest) .........
i 4217 2,038 1
7.1b.
c. Other noninterest expense" ...............................................
14092 7,573 I
7.c.
d. Total noninterest expense (sum of items 7.a through 7.0 .................
I ////////////// I
RIAD 4093 1
15,3701 7.d.
8.
Income (loss) before income taxes and extraordinary items and
other adjustments (item 3 plus or minus items 4.a, 4.1a, 5.9, 6, and 7.d) ....
I ////////////// I
RIAD 4301 I
(605)1 8.
9.
Applicable income taxes (on item 8) .........................................
i ////////////// I
RIAD 4302 I
(413)1 9-
10.
Income (loss) before extraordinary items and other adjustments
(item 8 minus 9)............................................................
I ////////////// I
RIAD 4300 I
(192)1 10.
11.
Extraordinary items and other adjustments:
a. Extraordinary items and other adjustments, gross of income taxes* .-------
1 4310 (1,458)1
lt.a.
b. Applicable income taxes (on item tl.a)'..................................
j 4315 0 111.1b.
c. Extraordinary items and other adjustments, net of income taxes
(item 11.a. minus 11.6) ..................................................
! ////////////// I
RIAD 4320 I
(1,458)1 11.c.
12.
Net income (loss) (sun of items 10 and ll.c) ................................
////////////// 1
RIAD 4340 I
(1,650)1 12.
Describe on Schedule RI-E--Explanations-
4
L` Title of Bank: SUNVEST BANK
:s: 535 East First Street
C. „ State Zip: Tustin, CA 92680
FDIC Certificate No.: 12101116141
Schedule RI --Continued
Call Date: 12/31/92 ST -SK: 06-1856 FFIEC 033
Page RI -3
Memoranda I
Dollar Amounts in Tho. ands I
Year-to-date
R)AD Mil Thou I
1. Interest expense incurred to carry tax-exempt securities, loans, and leases acquired after
August 7, 1986, that is not deductible for federal income tax purposes .............................I
4513 0 I
M.1.
2. Not applicable....................................................................................
otal equity capital originally reported in the December 31, 1991, Reports of Condition and I -come
3. Estimated foreign tax credit included in applicable income taxes, items 9 and 11.b. above .........
4309 0
M.3.
4. Number of full-time equivalent employees on payroll at end of current period (round to
//// Number 1
1 3216
nearest whole number)............................................................................ 14150
145 I
M.4.
5. Interest and fee income on tax-exempt obligations (other than securities and leases) of states
1 3217
15,354 I
and political subdivisions in the U.S. (reportable in Schedule RC -C, item 8.b) included in
4.
Net income (loss) (must equal Schedule RI, item 12) ...............................................
Schedule RI, item 1.a, above...................................................................... i
4504 0 I
M.S.
6- To be completed by banks with loans to finance agricultural production and other loans
sale, conversion, acquisition, or retirement of capital stock, net ................................
1 4346
to farmers (Schedule RC -C, item 3) exceeding five percent of total loans.
5.
6.
Interest and fee income on agricultural loans included in item 1.a. above ......................... 1
4251 N/A I
M.6.
Schedule RI -A --Changes in Equity Capital
Indicate decreases and losses in parentheses.
`Describe on Schedule RI -E --Explanations.
V
1283 I
Do[ tar Amounts in Tho -sands
I RIAD
Mil Thou I
otal equity capital originally reported in the December 31, 1991, Reports of Condition and I -come
1 3215
15,354 1
1.
2.
Equity capital adjustments from amended Reports of Income, net' ...................................
1 3216
0 I
2.
3.
Amended balance end of previous calendar year (sum of items 1 and 2) ..............................
1 3217
15,354 I
3.
4.
Net income (loss) (must equal Schedule RI, item 12) ...............................................
1 4340
(1,650)1
4.
5.
sale, conversion, acquisition, or retirement of capital stock, net ................................
1 4346
0 1
5.
6.
Changes incident to business combinations, net ....................................................
1 4356
0 1
6.
7.
LESS: Cash dividends declared on preferred stock ...................................................
1 4470
0 1
7.
8.
LESS: Cash dividends declared on common stock .....................................................
1 4460
0 1
B.
9.
Cumulative effect of changes in accounting principles from prior years` (see instructions for
I//////////////
I
this schedule)....................................................................................
1 4411
0 I
9.
10.
Correction of material accounting errors from prior years* (see instructions for this schedc.e) ..
1 4412
0 110.
11.
Change in net unrealized loss on marketable equity securities .....................................
14413
0 1
11.
12.
Other transaction with parent holding company* (not included in item 5, 7, or 8 above) ...........
i 4415
2,000 1
12.
13.
Total equity capital end of current period (sum of items 3 through 12) (must equal Schedule F_,
item 28)..........................................................................................
j 3210
15.704 113.
`Describe on Schedule RI -E --Explanations.
V
Legal Title of Bank: SUNVEST BANK
Address- 535 East First Street
City, State Zip: Tustin, CA 92680
FDIC Certificate No-: 12101116141
Call Date: 12/31/92 ST -BK: 06-1856 FFIEC 033
Pag
Schedule RI -B --Charge-offs and Recoveries and Changes in Allowance
for Loan and -Lease Losses
I. Charge-offs and Recoveries on Loans and Leases
(1)
Part
11286 I<
Part I excludes charge-offs and recoveries through the
I (Colum A) I
(Column B) I
I Charge-offs I
Recoveries
allocated transfer risk reserve.
calendar rear -to -date I
Dollar Amounts in Thousands
I RIAD Mil Thou I
RIAD Mil Thou I
14256 809 14257
0 11.
1. Real estate loans................................................................
14258 512 14259
54 12.
2. Installment Loans--------------------------------------------••----------••--•••-
14262 331 14263
14 13.
3. Credit cards and related plans ----------------------------------------------••---
14264 3,031 14265
1,641 14.
4. Commercial (time and demand) and all other loans .................................
103 15.
S. Lease financing receivables---------------------------------•�--�•..........
14266 370 16267
14635 5,052 14605
1,812 I,
b.
6. Total (sun of items 1 through 5) ....
Memoranda
Dollar Amounts in Thousands
I RIAD Mil Thou I
RIAD Mil Tho I
1. Loans to foreign governments and official institutions included in
I
14643 0 14627
C. I
M.I.
part 1, items 1 through 4 above --------------------------------------------------
2. To be completed by banks with loans to finance agricultural production
and other loans to farmers (Schedule RC -C, item 3) exceeding five percent of
I
total loans.
Agricultural loans included in part 1, items 1 through 4 above ...................
A
14268 N/A 16
4269269 N/A I
M.2.
Cumulative I
Cumulative
Charge-offs I
Recoveries
Jan. 1, 1986
I Jan. 1, 1986
I
Item 3 is to be completed by national banks only.
I through
I through
I
3. Charge-offs and recoveries of Special -Category Loans, as defined for this
I Dec. 3/. 1989
I Report Date
Call Report by the Comptroller of the Currency
1 //////////////
1 4784 N/A
I M.3.
(Colum A)
I (Colum B)
I
Charge-offs
I Recoveries
Memorandum items 4 and 5 are to be completed by all banks.
I calendar year-to-date
I
4. Loans to finance commercial real estate, construction, and land development
I RIAD Mil Thou
I RIAD Mil Tho
(not secured by real estate) included in Schedule RI -B, part 1,
activities
15443 0
15444 0
I M.4.
items 2 through 4, above ..............................................
loans (sun of Memorandum items 5.a through 5.e must equal
5. Real estate
Schedule RI -B, part 1, item 1, above):
217
15446 0
I M.5.a.
a. Construction and land development.............................................15445
15447 0
J 5448 0
I M.5.b.
b. Secured by farmland...........................................................
c. Secured by 1-4 family residential properties:
//////////////
(1) Revolving, open-end loans secured by 1-4 family residential properties
I
0
and extended under lines of credit ........................................
15449 0
15450
I
M.5.c.(2)
- - ..............
(2) All other loans secured by 1-4 family residential properties
15451 202
� 5452
I
M.5.d.
d. Secured by multifamily (5 or mare) residential properties .....................
15453 0
15454 ?
0
I
I M.5.e.
e. Secured by nonfarm nonresidential properties .......... ........................
I S45S 390
5456
(1) See instructions for loan classifications used in this schedule.
L!
I Title of Bank: SUNOEST BANK Call Date-. 12/31/92
ST -BK: 06-1856 FFIEC C33
;s: 535 East First Street
Schedule RI -E is to be completed each quarter on a calendar year-to-date basis.
L._„ State Zip: Tustin, CA 92680
Detail all adjustments in Schedules RI -A and RI -B, all extraordinary items and other
Page :.;-5
FDIC Certificate No.: 12101116141
significant items of other noninterest income and other noninterest expense in Schedule
RI. (See
instructions for details.)
Schedule RI -B --Continued
. 1 1295
1 <-
Part II. Changes in Allowance for Loan and Lease Losses
1 Year-to-date 1
Dollar Amounts in Thousands
in Thousands
1 RIAD Mit Thou 1
RIAD
Mil Thou
1. Balance originally reported in the December 31, 1991, Reports of Condition and income ........
i 3124
3,974
1 1.
2. Recoveries (must equal part 1, item 6, column B above) .......................................
4605
1,812
1 2.
3. LESS: Charge-offs (must equal part 1, item 6, colum A above) ................................
4635
5,052
3.
4. Provision for loan and lease losses (must equal Schedule RI, item 4.a) .......................
4230
4,320
4.
5. Adjustments- (see instructions for this schedule) ............................................
1 4815
0
1 5.
6. Balance end of current period (sun of items 1 through 5) (must equal Schedule RC, item 4.b) ..
13123
5.054
1 6.
-Describe on Schedule RI -E --Explanations.
Schedule RI -C --Applicable Income Taxes by Taxing Authority
Schedule RI -C is to be reported with the December Report of Intone
1 1289 <-
Dollar Amounts in Thousands I RIAD Mil Thou 1
1. Federal...................................................................................... 1 4780 (290)1 1.
2. State and local.............................................................................. 1 4790 (123)1 2.
3. Foreign....................................................... ...... 1 4795 0 1 3.
4. Total (sum of items 1 through 3)(must equal sun of Schedule RI, items 9 and tt.b) ............ 1 4770 (413)1 4.
5. Deferred portion of item 4 ............ j RIAD 4772 1 (1,186)1 ////////////// 1 5.
edule RI -E --Explanations
Schedule RI -E is to be completed each quarter on a calendar year-to-date basis.
Detail all adjustments in Schedules RI -A and RI -B, all extraordinary items and other
adjustments
in Schedule RI, and all
significant items of other noninterest income and other noninterest expense in Schedule
RI. (See
instructions for details.)
-
. 1 1295
1 <-
1 Year-to-date 1
Dollar Amounts
in Thousands
1 RIAD Mit Thou 1
1. All other noninterest income (from Schedule RI, item 5.f.(2))
Report amounts that exceed 10% of Schedule RI, item 5.f.(2):
a. Net gains on other real estate owned .....................................................
1 5415 0 1
1. a.
b. Net gains on sales of loans..............................................................
1 5416 568 1
1.b.
c. Net gains on sales of premises and fixed assets ..........................................
1 5417 0 1
1.c.
Itemize and describe the three largest other amounts that exceed 10% of Schedule
R1,
item 5.f.(2):
d. 1 TEXT 4461 1 Legal Settlement
1 4461 1,555 1
1.d.
e. 1 TEXT 4462 1
1 4462
i.e.
I. I TEXT 4463 1
1 4463
1 1.f.
2. Other noninterest expense (from Schedule RI, item 7.c):
a. Amortization expense of intangible assets ................................................
1 4531 0
1 2.a.
Report amounts that exceed 10% of Schedule R1, item 7.c
b. Net losses on other real estate owned .................................................
...
1 5418 1,719
1 2.1b.
c. Net losses on sales of loans.............................................................
5419 0
1 2.c.
d. Net losses on sales of premises and fixed assets .........................................
1 5420 0
1 2.d.
Itemize and describe the three largest other amounts that exceed 10% of Schedule
RI, item 7.c:1
e. I TEXT 4464 1 Loan and Collection Expense
1 4464 930
12.e.
f. 1 TEXT 4467 1 Holding Company Overhead
1 4467 1,102
1 2-f-
9. J TEXT 4468
4468
12.9'
7
Legal Title of Bank: SUNwEST BANK
Address: 535 East First Street
City, State zip: Tustin. CA 92680
FDIC Certificate No.: 12101116141
Schedule RI -E --Continued
Call Date: 12/31/92 ST -BK: 06-1856 FFIEC 033
Par 5
9. Other explanations (the space below is provided for the bank to briefly describe, at its
option, any other significant items affecting the Report of Income):
No comment J%j (RIAD 4769)
Other explanations (please type or print clearly):
(TEXT 4769)
Dollar Amounts in Thousands
I Year-to-date 1
I RIAD Mil Thou I
3.
Extraordinary items and other adjustments (from Schedule R1, item tt.a) and applicable
intone tax effect (from Schedule RI, item 11.b) (itemize and describe all extraordinary
items and other adjustments):
a. (1) 1 TEXT 4469 1 Early Adoption of FASB 109
1 4469 (1,458)1
3.a.0)
(2) Applicable income tax effect I RIAD 4486 1 0
I ////////////// 1
3-a.(2)
b. (1) 1 TEXT 4487 1 -
1 4487 13.b.(1)
(2) Applicable income tax effect I RIAD 4488 I
I ////////////// 13.b.(2)
c. (1) 1 TEXT 4489 1
i 4489 13.c.(1)
(2) Applicable income tax effect I RIAD 4491 I
I ////////////// 13.c.(2)
4.
Equity capital adjustments from amended Reports of Income (from Schedule RI -A,
item 2) (itemize and describe all adjustments):
a. I TEXT 4492 1
1 4492 14-a.
b. I TEXT 4493 I
1 4493 1
4.1b.
5.
Cumulative effect of changes in accounting principles from prior years (frau
Schedule RI -A, item 9) (itemize and describe all changes in accounting principles):
a. I TEXT 4494 I
1 4494 (
5-a.
b. 1 TEXT 4495 I
1 4495 1
5.1b.
6.
Corrections of material accounting errors from prior years (from Schedule RI -A, item 10)
(itemize and describe all corrections):
a. I TEXT 4496 1
1 4496 1
6.a.
b. I TEXT 4497 1
14497 1
6.b.
7.
Other transactions with parent holding company (from Schedule RI -A, item 12) (itemize
and describe all such transactions):
a. 1 TEXT 4498 I Additional Paid -in Capital
14498 2,000 1
7.a.
b. I TEXT 4499 1
14499 17.1b.
8.
Adjustments to allowance for loan and tease tosses (from Schedule RI -B, part 11, item 5)
(itemize and describe all adjustments):
a. I TEXT 4521 1
1 4521 1
8.a.
b. I TEXT 4522 1
1 4522 18-b-
9. Other explanations (the space below is provided for the bank to briefly describe, at its
option, any other significant items affecting the Report of Income):
No comment J%j (RIAD 4769)
Other explanations (please type or print clearly):
(TEXT 4769)
Leal Title of Bank: SUNUEST BANK
ss: 535 East First Street
State zip: Tustin, CA 92680
FUnC Certificate No.: 12101116141
Call Date: 12/31/92 ST -OK: 06-1856 FFIEC 033
Page RC -1
Consolidated Report of Condition for Insured Commercial
and State -Chartered Savings Banks for December 31, 1992
All schedules are to be reported in thousands of dollars- Unless otherwise indicated,
report the amount outstanding as of the last business day of the quarter.
Schedule RC --Balance Sheet
(1) Includes cash ite in process of collection and unposted debits.
(2) Includes time certificates of deposit not held in trading accounts.
6
1 CZUU 1
<-
Dollar Amounts in
Thousands
RCON Nil Thou
ASSETS
1.
Cash and balances due frac depository institutions (from Schedule RC -A):
a. Noninterest -bearing balances and currency and coin(1).......................................
0081 20,999 1
1.a.
b. Interest-bearing balances(2)................................................................
0071 0
1.b.
2.
securities (from Schedule RC-B)................................................................
1 0390 2,851 1
2.
3.
Federal funds sold and securities purchased under agreements to resell:
.................................................. ........... .............
a. Federal funds sold1
0276 9,845
3.a.
b. Securities purchased under agreements to resell .............................................
0277 0
3.b.
4.
Loans and lease financing receivables:
a. loans and leases, net of unearned incase (frau Schedule RC -C) ....... RCON 2122
180,285
1 ////////////// I
4.a.
b. LESS: Allowance for loan and lease losses ........................... I RCON 3123
5,054
1 //////////////
4.b.
c. LESS: Allocated transfer risk reserve ............................... I RCON 3128 I
0
//////////////
4.c.
d. Loans and leases, net of unearned incase, allowance, and reserve (item 4.a
minus 4.b and 4.c)..........................................................................
1 2125 175,231
4.d.
s,-
Assets held in trading accounts................................................................
1 2146 0 1
5.
lremises and fixed assets (including capitalized leases) .......................................
1 2145 2,509 1
6.
other real estate owned (from Schedule RC -M) ...................................................
1 2150 12,032 I
7.
B.
Investments in unconsolidated subsidiaries and associated conpanies (frau Schedule RC -M)
.......
1 2130 0 1
B.
9.
Customers' liability to this bank on acceptances outstanding ...................... :............
1 2155 0 1
9-
10.
Intangible. assets (frau Schedule RC -M) .........................................................
1 2143 0 1
10.
11.
Other assets (frac Schedule RC-F)..............................................................
2160 1,993 1
11.
12.
Total assets (sun of items 1 through 11) .......................................................
12170 225,460 1
12.
(1) Includes cash ite in process of collection and unposted debits.
(2) Includes time certificates of deposit not held in trading accounts.
6
Legal Title of Bank: SUNVEST BANK
Address: 535 East First Street
City, State Zip: Tustin, CA 92680
FDIC Certificate No.: 12101116141
Schedule RC --Continued
Call Date: 12/31/92 ST -BK: C6-1856 FFIEC 033
pa .2
Memorandum
To be reported only with the March Report of Condition.
1. Indicate in the box at the right the number of the statement below that best describes the most
comprehensive level of auditing work performed for the bank by independent external auditors as Number
of any date during 1991........................................................................ I RCON 6724 1 N/A I M.1.
1 : Independent aucit of the bank conducted in accordance
with generally accepted auditing standards by a certified
public accounting firm which submits a report on the bank
2 = Independent au:it of the bank's parent holding company
conducted in accordance with generally accepted audit-
ing standards by a certified public accounting firm which
submits a repo--. on the consolidated holding company
(but not on the hank separately)
3 = Directors' exar,.'nation of the bank conducted in accor-
dance with ge-erally accepted auditing standards by a
certified public accounting firm (may be required by state
chartering auth_-ity)
4 = Directors' examination of the bank performed by other ex-
ternal auditors (may be required by state chartering
authority)
5 = Review of the bank's financial statements by external
auditors
6 = Compilation of the bank's financial statements by external
auditors
7 = Other audit procedures (excluding tax preoaration work)
8 = No external audit work
(1) Includes total camard deposits and noninterest -bearing time and savings deposits.
10
Dollar Amounts in
Thousands
I RCON Mil Thou
I
LIABILITIES
13.
Deposits=
a. In domestic offices (sun of totals of column A and C from Schedule RC -E) ..............
......
1 2200 2C8,423
1 13.a.
(1) Noninterest-bearing(j) ............................................ I RCON 6631 1
68,484
1 //////////////
1 13.a.(1)
(2) Interest -bearing .................................................. I RCON 6636 1
139,939
1 //////////////
1 13.a.(2)
b. In foreign offices, Edge and Agreement subsidiaries, and IBFs.................................
(1) Noninterest-bearing.........................................................
(2) Interest-bearing..........................................................................
14.
Federal funds purchased and securities sold under agreements to repurchase:
a. Federal fun's purchased.......................................................................
1 0278 0
1 14.a.
b. Securities sold under agreements to repurchase ................................................
1 0279 0
1 14.b.
15.
Demand notes issued to the U -S. Treasury.........................................................
1 2840 0
1 15,
16.
Other borrowed acney.............................................................................
2850 0
1 16.
17.
Mortgage indebtedness and obligations under capitalized leases ...................................
1 2910 434
1 17.
18.
Bank's liability on acceptances executed and outstanding .........................................
1 2920 0
1 18.
19.
Subordinated noses and debentures................................................................
1 3200 0
19.
20.
Other liabilities (from Schedule RC -G) ...........................................................
1 2930 899
120.
21.
Total liabilities (sun of items 13 through 20) ...................................................
1 2948 207,756
1 21.
1
22.
Limited -life preferred stock and related surplus .................................................
1 3282 0
1 22,
EQUITY
CAPITAL
23.
Perpetual preferred stock and related surplus ...................... ..............................
1 3838 0
1 23.
24.
Common stock.....................................................................................
1 3230 1,059
1 24
25.
Surplus (exclude all surplus related to preferred stock) ........................................
1 3839 10,056
1 25.
26.
a. Undivided profits and capital reserves........................................................
1 3632 :,589
1 26.a.
b. LESS: Net unrealized loss on marketable equity securities .....................................
1 0297 0
1 26.1b.
27.
Cumulative foreign currency translation adjustments ..............................................
28.
Total equity capital (sun of items 23 through 27) ................................................
1 3210 15,704 128.
29.
Total liabilities, limited -life preferred stock, and equity capital (sum of items 21, 22,
and 28)
13300 225,460 129.
Memorandum
To be reported only with the March Report of Condition.
1. Indicate in the box at the right the number of the statement below that best describes the most
comprehensive level of auditing work performed for the bank by independent external auditors as Number
of any date during 1991........................................................................ I RCON 6724 1 N/A I M.1.
1 : Independent aucit of the bank conducted in accordance
with generally accepted auditing standards by a certified
public accounting firm which submits a report on the bank
2 = Independent au:it of the bank's parent holding company
conducted in accordance with generally accepted audit-
ing standards by a certified public accounting firm which
submits a repo--. on the consolidated holding company
(but not on the hank separately)
3 = Directors' exar,.'nation of the bank conducted in accor-
dance with ge-erally accepted auditing standards by a
certified public accounting firm (may be required by state
chartering auth_-ity)
4 = Directors' examination of the bank performed by other ex-
ternal auditors (may be required by state chartering
authority)
5 = Review of the bank's financial statements by external
auditors
6 = Compilation of the bank's financial statements by external
auditors
7 = Other audit procedures (excluding tax preoaration work)
8 = No external audit work
(1) Includes total camard deposits and noninterest -bearing time and savings deposits.
10
Bank of America
March 12, 1993
Mr. Ronald A. Nault
Director of Finance
Tustin Community Redevelopment Agency
15222 Del Amo Avenue
Tustin, CA 92680
Dear Mr. Nault:
4. 4 j •r �w
We appreciate the opportunity to bid on the Tustin Community
Redevelopment Agency's banking services. Based on your request for
proposal, it appears the Agency's primary needs are:
• local, convenient banking;
• checking account services, timely balance information and
account support;
• convenient investments of idle funds; and
• a stable, financially secure financial institution.
Bank of America can meet each of these needs.
We have several branches conveniently located to the Agency office. While
you will have all the advantages of local branch service and the option of the
local branch address on your checks, we propose managing the Agency's
account relationship from the South Orange County Commercial Banking
Office in Costa Mesa to provide you with our most sophisticated cash
management services. Your relationship manager would be Jan Cox, who is
currently managing your City's banking relationship.
As the largest check processor in the nation, we are well equipped to handle
the Agency's processing needs. The Bank currently has over 1,500 Public
Agency deposit relationships including cities, counties, the state, water districts
and school districts.
Our balance reporting service provides early morning computer access to the
Agency's account information.
Page 1
Flank of Ar, re. % ,bona] Trust a.-- $a, ---,s Assoaation
Bank of America has enjoyed a long history of serving public agencies,
including the City of Tustin. Our commitment continues to remain strong.
We hope that after evaluating your alternatives, you select Bank of America.
We want your business.
Sincerely,
Sylvia A. Coyle
Vice President & Manager
South Orange County Commercial Banking Office
3233 Park Center Drive
Costa Mesa, CA 92626
(714)850-6463
Jena R. Hamilton
Vice President
Government Services
333 S. Beaudry Avenue, W26-45
Los Angeles, CA 90017
(213)345-2578
Page 2
PROPOSAL FOR BANIGNG SERVICES
TUSTIN COMMUNITY REDEVELOPMENT
R!� ��ZWA
Bank of America NT & SA
March 12, 1993
Page 3
BACKGROUND
Relationship Philosophy
The Bank manages public agency relationships through both its local branches and
commercial banking units. Primary and back-up account officers are assigned to
meet your daily needs. Bank of America is a full service bank for public agencies,
with specialists in Government Services, Cash Management, Corporate Trust, Public
Finance, Security Sales, Safekeeping and Clearance and Pension Trusts. Product
specialists work with you and your account officers tailoring bank services to meet
your specifications.
Bank Experience with Government Accounts
Bank of America maintains a strong presence in the public agency marketplace.
With over $1.6 billion in public agency deposits, Bank of America is the leading
bank in the State of California. Our commitment to serving public agencies is
demonstrated by our support of public agency organizations such as CMTA, CSMFO
and MTA US&C.
It is our goal to provide state-of-the-art products and excellent service. Our Quality
of Service Report for July 1991 - March 1992 serves as testimony to our high service
standards with regard to public agency and commercial customers and is included
for your review.
Depository Collateral and Insurance
Bank of America is federally chartered and balances are insured by FDIC as required
by Section 53648 of the State Government Code. Public agency deposits are
collateralized as required by State law. Please refer to our sample Contract for
Deposit of Moneys in Exhibit A for specific information.
exi-
The Bank has moved to calculating FDIC on ledger balances as of the end of each
calendar quarter. Our charge to our customers reflects the rate that is charged to the
Bank Increases and decreases are passed along to you as they occur.
Contract Terms
The accepted proposal typically acts as a contract between the customer and the
Bank Fees and conditions outlined in this proposal remain firm for 60 days from
the date the proposal was submitted. Standard Bank contracts must be signed before
initiating each of the selected services. Additional contracts would include:
Page 4
BACKGROUND (CONT.)
- Contract for Deposit of Moneys
- Oral Funds Transfer Agreement
- Reclear Agreement
- Public Agency Signature Card
The Contract for Deposit of Moneys (Exhibit A) can be amended to require 90 days
prior written notice by either party prior to canceling services as requested by the
Agency.
Branch Office
We propose managing your account relationship through the South Orange County
Regional Commercial Banking Office (RCBO) at 3233 Park Center Drive, Costa Mesa
where we now manage the City of Tustin relationship. The South Orange County
RCBO will give you access to the Bank's most sophisticated systems and service.
The RCBO utilizes the Bank's Corporate Demand Accounting (CDA) system which
was developed for large corporate and public agency customers. The CDA system
offers expanded information and some products; -such as -on-line stop payments,.
which are not available through the retail branches. Your account servicing team
also specializes in high volume customers and brings 50 years of experience with
public agency and corporate accounts.
In addition to the RCBO, the Agency will have access to the Tustin branch located at
13341 Newport Avenue. Other conveniently located branches are:
Northwood branch #1223 4820 Irvine Boulevard, Irvine
Walnut Village branch #2341 14477 Culver Drive, Irvine
17th & Tustin branch #625 2127 East 17th Street, Santa Ana
South Santa Ana branch #451 2001 South Main Street, Santa Ana
Pricing
Monthly charges and average monthly balance requirements are based on average
volume and activity provided by you and are only estimates (see the summary of
bank charges on page #20, and the Schedule of Charges in Exhibit B). As monthly
activity and interest rates fluctuate, so will monthly charges and/or balance
requirements. All unit charges are subject to change. The Bank, from time to time,
reviews prices based upon market conditions and correspondingly adjusts prices as
appropriate. You will receive notice 30 days prior to any price changes, which are
generally implemented each January 1. The prices quoted in this bid will be held
through June 30, 1994. Price increases thereafter will not exceed the Consumer Price
Index (CPI) for the previous year in California. Bank of America cannot guarantee
those prices/rates that are not under our control and/or are governed by Federal
regulation, such as FDIC charges, reserve requirements and interest rates for such
things as daylight overdrafts.
Page 5
BACKGROUND (CONT.)
Bank Credit Ratings and Capitalization Figures As of 02/25/93
Period Ending
12/89 12/90 12/91 12/92
Assets (in $000) $86,712,000 $96,281,000 $101,020,000 $133,449,000
Capital (in $000) $4,414,000 $4,895,000 $5,124,000 $10,748,000
Capital/Assets 5.09% • 5.09% 5.08% 8.06%
Rating
Agency Security Date Rating
Standard & Poor's Corp. BAC Senior Debt
11/28/89
A
BAC Subordinated Debt
11/28/89
A -
BAC Preferred Stock
11/28/89
BBB+
BAC Commercial Paper
11/28/89
A-1
Nf&SALOC =LongTerm
05/02/91
A+
NP&SA LOC — Short Term
11/28/89
A-1
NI'&SACD—Long Term
05/02/91
A+
NI'&SACD—Long Term
11/28/89
A-1
Moody's Investors Service BAC Senior Debt
03/05/90
A2
BAC Subordinated Debt
03/05/90
A3
BAC Preferred Stock
03/05/90
a2
BAC Commercial Paper
03/05/90
P-1
Nf&SA LOC—Long Term
03/05/90
Aa3
NC&SA LOC — Short Term
09/20/89
P-1
Nr&SA CD—Long Term
03/05/90
Aa3
NP&SACD— Long Term
09/20/89
P-1
Bank of America's current capitalization as of January 1993 is 6.51%. This exceeds
the required minimum of 3%.
Page 6
ACCOUNT STRUCTURE
Analyzed Interest Checking
With a Public Agency Analyzed Interest Checking you may make unlimited
deposits and withdrawals throughout the month, however you must maintain at
least a minimum balance of $1,500.00 or the account is subject to a monthly service
charge of $9.00. Collected balances in your account %%-ill earn interest on a simple
interest basis at a variable annual interest rate that may change daily. The interest
rate that we pay depends on the tier into which the collected balance in your
account falls. The daily rate is 1/365 (or 1/366 in a leap year) of the annual rate. We
calculate daily interest by applying the daily interest rate to your collected balance
for that day. The current interest rate as of March 8, 1993 for balances under
$500,000 is 1.35%.
Public Agency Savings
The current savings account rate is 2.50%. Deposits and withdrawals can be made
through the mail, in person, or by telephone instruction. Federal regulation limits
phone initiated withdrawals to 6 per month.
Public Agency Time Deposits
( Terms can be as short as seven days. Interest may be paid monthly or quarterly.
Final interest payments are at maturity. Please note our Public Agency Time Deposit
Rates as of March 4, 1993:
Term
7-13 days
14-29 days
30-89 days
90-179 days
180-364 days
12-23 months
24-60 months
Public Agency COR Accounts
$10,000 Minimum
2.15%
2.15%
2.20%
2.30%
2.40%
2.80%
3.20%
$100,000 Minimum
2.15%
2.20%
2.25%
2.35%
2.45%
3.00%
3.40%
Public Agency COR is a money market deposit account which pays interest on
deposited funds. Transfers are limited to six each month when you transfer money
by check, by draft, by telephone transfer debit, or by preauthorized debit to a third
party. (A third party is another person, an organization or another financial
institution where you have an account.) You're limited to making three transfers by
check each month. Transfers and withdrawals are unlimited when made in person
at any branch or by mail.
Page 7
ACCOUNT STRUCTURE (CONT.)
March 4, 1993 COR Rates:
Minimum
Rate
Yield
$2,500
2.40%
2.43%
$50,000
2.407o
2.43%
$100,000
2.45%
2.48%
$500,000
2.45%
2.48%
$2,000,000
2.45%
2.48%
Bank Statements for RCBO Customers
Bank statements are mailed within 3 days of period end. Monthly statements
listing activity by day are provided at no charge; however, daily statements cost $6.50
per statement, or $143.00 per month ($6.50 X 22 days). Several format options are
available for additional fees including a check paid listing in check number order.
An example of each is located in Exhibit C.
Checks Paid
The Bank charges $.10 per check paid against your account.
Deposit Options
Bank of America can accept deposits through various means to provide same day
credit. To ensure the best pricing and same day credit, we encourage the Agency to
continue using the armored carrier used by the City and add this account to that
contract. The Agency checks can be deposited through several locations including
the branch.
• At the branch between 9 a.m. and 4 p.m.
Monday through Thursday and between
9 a.m. and 7 p.m. on Friday for same day $1.40/deposit
credit. Deposits made on Saturday between
9 a.m. and 2 p.m. will be credited on the
next business day.
• The Night Drop is emptied by the
branch once daily at 7 a.m. The Bank uses an $1.10/deposit
armored carrier to transport deposits to the
Special Vault for counting.
• At the Cash Vault until 4 p.m., $1.10/deposit
Monday -Friday for same day credit.'
An additional surcharge of $1.90 will be assessed for deposits received after 4:00.
Page 8
ACCOUNT STRUCTURE (CONT.)
• The Special Vault can accept deposit deliveries
from Armored Carrier for same day credit if
received before 4 p.m.
• Cash Deposits:
Coin - Rolled (only available at branch)
Miscellaneous Loose
Currency
Returned Items
$1.10/deposit
$.03/$1.00
$.12/$100.00
Returned Items can be mailed to the Agency or delivered to the branch for Agency
pick-up within twenty-four hours.
Redepositing Returned Items
By executing a Reclear Agreement (see Exhibit A), the Bank automatically makes a
second attempt to clear checks returned for insufficient funds. Usually, half of the
returned checks are good if deposited a second time.
Returned items are debited from the account they were deposited to unless other
instructions are in place and are included on the deposit endorsement stamp. Debit
notifications and returned checks can be interbranched to the Tustin branch or
mailed to the Agency offices.
Service
Returned Items
Recleared Items
Unencoded vs. Encoded Checks
Per Item Fee
$3.00/ item
$1.15/ item
Since the City of Tustin currently encodes checks for deposit, the Agency can save
costs by utilizing the encoding equipment already available.
Service Per Item Fee
Unencoded Checks
On -us " $.085/item
Other Banks $.095 /item
• After the merger Bank of America will have a check marketshare of 28%a in California.
Page 9
ACCOUNT STRUCTURE (CONT.)
Service Per Item Fee
Encoded Checks
On -us " $.042/item
Calif. Clearing House $.048/item
Local Fed Reserve $.055/item
Other Items $.075/item
Reject Rate Charge" $.30 /item
" After the merger Bank of America will have a check marketshare of 28% in California.
This charge is assessed to each item that exceeds a .70% Reject Rate. Bank of America works with
customers to resolve reject problems and does not automatically begin to assess the charge until 90
days after initial notification to customer of the problem.
Incoming Wire Confirmations
Incoming wires cost $8.50 per wire. Incoming wire transfers received by the Bank
are immediately available for your investment. The Agency can have standing
instructions for the Bank to call the Agency.when incoming wires are credited to
your account ($10.00 per call) or the Agency can subscribe to the personal computer
based BAMTRAC Current Day Reporting Service to keep updated on both incoming
and outgoing wires as well as ACH credits received. Incoming and outgoing wires
can be confirmed on the following day through BAMTRAC Balance Reporting (by
total wire debits and credits) or Detail Reporting (by each wire).
Incoming Wire Confirmations Pricing Options
Service Per Item Fee
Written Confirmation
- mailed next day $2.00
or
Phone Confirmation
- same day $10.00
or
Current Day Reporting
- updated every 15 minutes
Monthly maintenance $50.00
Per Wire/ACH item printed $.60
Page 10
- ACCOUNT STRUCTURE (CONT.)
Out -going Wires
The Agency may initiate wires by phone through the branch, the Money Transfer
Center's 800 number and/or a dial-up terminal or personal computer with a
modem using Global Money Transfer Service (GMTS). Given a volume of 5 wires
or less per month, our Money Transfer Center's 800 number is the most cost
effective alternative. For 6 or more wires, GMTS is the least expensive option.
Wires Initiated by Phone through the Branch or Money Transfer Center
Compared to initiating wires through the branch, the Agency can save $8.00 per
outgoing wire and increase security by using our Money Transfer Center's 800
number. All conversations are tape recorded. You may initiate repetitive and non-
repetitive wires through this center. Customers receive call-backs on all wires. The
branch uses the information on your funds transfer agreement to set-up the Agency
with the center. All changes are managed through the branch.
Wires Initiated Through Personal Computer
Global Money Transfer Service (GMTS) is the Bank's computer based wire service.
- To access this service you must use an IBM compatible PC with a modem or dial-up
( terminal. It has many safety features to protect the Agency 's funds. Customers
with 6 or more wires monthly reduce the cost of initiating repetitive and non-
repetitive wires by using GMTS. The direct processing allows the Bank to offer later
cut-off times for wire initiation. Global Money Transfer Service provides Bank of
America and Federal Reserve reference numbers to confirm wire initiation and to
facilitate research.
The GMTS security system consists of company level and operator level user I.D.'s
and passwords which are essential to enter the system. Passwords may be
periodically changed by the Agency using a security code. A lockout occurs after four
failed attempts at entering the password at which time BAMTRAC Support will call
a designated officer at the Agency.
Additional security features include:
• up to 9 levels of approval;
• maximum transaction limits by operator;
• maximum number of wires per day; and
• maximum daily dollar limit by customer.
The Agency has the option to preformat wires designating beneficiaries. Changes to
these preformatted wires may be made on the GMTS system by authorized
operators. The bank may take as little as one day to verify the wire instructions.
Page 11
ACCOUNT STRUCTURE (CONT.)
GMTS Service Per Item Fee
Monthly Maint. $50.00/mo.
Outgoing wire $ 7.50/wire
Book Transfer $ 5.50/wire
Repetitive Wire Storage $ 1.50/record
Cut off times
Wires 2:30 p.m.
Book Transfer 4:00 p.m.
Outgoing Wire Pricing Options
Service Per Item Fee
Branch Wire $26.00
or
Money Transfer Center
(800 phone number)
$18.00
or
Global Money Transfer Service
Monthly Maintenance
$50.00
Per Wire Sent
$7.50
Wire Transfer Security Measures
• The Bank's employee's are bonded for fraud.
• To the extent that is possible, the Bank will assist the Agency in recovering funds
in the case of Agency employee fraud.
• Wire transfers can be initiated over the phone only by persons authorized
to do so on the Agency's Oral Funds Transfer Agreement.
• Wire instructions are called into a restricted area to one of eight operators. The
wire is reviewed by one and/or two people, depending on the dollar amount.
The account is verified for sufficient funds prior to wire initiation.
• The wires are encrypted to safeguard the wire.
• Our State Wire Center has an "800" number for repetitive wire transfers.
Repetitive wire information is preestablished thereby eliminating errors and
reducing initiation time.
Page 12
ACCOUNT STRUCTURE (CONT.)
• All conversations are taped.
• Other safety restrictions can be established, such as:
- No international wires, - Call back to designated person for verification,
- No out-of-state wires, - No third party wires.
- No non -repetitive wires,
Stop Payments for RCBO Customers
The CDA system has extended stop payments for up to seven years. The Agency will
be able to initiate an extended stop payment by telephone through asupport center
or through a personal computer via a new BAMTRAC module.
Phone Initiated Stop Payments
• Phone initiated stops, renewals
and cancellations.
• Phone access to 45 days of
account history.
Terms
6 MONTHS
12 MONTHS
18 MONTHS
24 MONTHS
36 MONTHS
48 MONTHS
60 MONTHS
72 MONTHS
84 MONTHS
Range Stops
Check Paid
Inquiry
Expiration and Stop
History Reports
Stop Payment
Cancellation
BAMTRAC Initiated Stop Payments
• PC initiated stops, renewals and
cancellations.
• On-line access to 45 days of account
history.
• Hard copy receipts and confirmations
can be printed on your PC immediately.
• Features two reports, 'Expiring Stops"
and "Stop History," for $ .10 per line
printed.
Phone Initiated
BAMTRAC Initiated
$10.00
/item
n/a
$14.00
/item
$ 8.00/item
$18.00
/item
n/a
$22.00
/item
$13.00/item
$28.00
/item
$18.00/item
$34.00
/item
$22.00/item
$48.00
/item
$32.00/item
$62.00
/item
n/a
$80.00
/item
$54.00/item
Same as above + $1.00 n/a
for each subsequent item
n/a $ .50/check
n/a $ .10/line printed
n/a $ 1.00/cancellation
Page 13
ACCOUNT STRUCTURE (CONT.)
Securities Custody and Clearance
Please see the safekeeping pricing and information in Exhibit D.
Balance Reporting
BAMTRAC Balance Reporting Service provides early access to balance information
on your accounts. You can receive a variety of printed reports summarizing the
previous business day's balances and activity using a computer terminal or by
computer voice via touch-tone telephone as early as 5:30 a.m. Pacific Time.
BAMTRAC Balance Reporting provides both ledger and collected balances, average
balances month -to -date (both ledger and collected), total credits, total debits and
approximately 20 other fields of information. Please refer to the sample report in
Exhibit E.
_Service
Per Item Fee
Balance Reporting - 1st Account $95.00
Additional Accounts - Balance Reporting $60.00
Monthly Information
Service Fee Access Provided
BAMTRAC BalancePhone
$95.00
or PC
Daily, MTD, YTD ledger and
collected balance information.
Reporting
P . g
after 5:30 a.m.
Debit and credit summary.
Touchtone
Phone
Daily ledger balance,
Limited BAMTRAC
$25.00
after 5:30 a.m.
total debits, and
total credits.
Off-peak BAMTRAC
Phone or PC
Daily, MTD, YTD ledger and
Balance Reporting
$50.00
after 10:00 a.m.
collected balance information.
Debit and credit summary.
Page 14
ACCOUNT STRUCTURE (CONT.)
Detail Reporting
BAMTRAC Detail Reporting Service provides a daily statement of credit and debit
transactions, along with reference numbers such as check serial numbers. To limit
the number of transactions printed, you can specify daily report parameters, such as
dollar amount or class of activity (checks, deposits, wire transfers, etc.) Please refer to
Exhibit E.
Service Per Item Fee
Detail Reporting - 1st Account $95.00
Additional Accounts - Detail Reporting $70.00
Detail Per Transaction Printing Charge $ .17
Account Analysis
Monthly account analysis statements are provided by the 20th of the following
month. The -reports analyze each account separately and the combined relationship.
A sample statement is located in Exhibit F.
Fees are the same whether the account is settled using compensating balances or
direct billing for the shortfall.
Float
Float is assigned according to the Bank's Availability Schedule (Please see Exhibit G).
Incoming wires and checks drawn on Bank of America receive same day credit. In
general, checks drawn on other California banks are assigned one day of float.
Cash and wires
BofA checks
California bank checks
U.S. Treasury checks
State of California Warrants
Northern California
Southern California
- same day
- same day
- generally one day
- one day
- one day*
- one to two days*
* One day, except when deposited through our Sacramento office with the Bank's Direct Deposit
program. Subvention payments and LAIF deposits are deposited to the Agency's account for same
day credit.
Float information is available daily through BAMTRAC Balance and Detail
Reporting and monthly through the Account Analysis statement.
Page 15
COMPENSATION METHODS
Compensating balances are collected balances maintained in non-interest bearing
accounts adjusted to meet the Federal Reserve requirements. The compensating
balance requirement for a given month varies based upon the current earnings
allowance rate and services used. The earnings allowance rate is developed
monthly based on the average of the 90 -day Treasury Bill auction discount rates for
the previous month. Collected balances are ledger balances adjusted for float. Float
is assigned to deposits based on our published availability schedule. (See Exhibit G)
The daily collected balance must be positive to avoid uncollected funds charges.
Uncollected funds will be charged interest at 120% of Reference Rate.*
To determine the compensating dollar amount, a compensating balance factor is
calculated:
Calendar Days in Year X $1.00
Earnings Allowance Rate X (I -Reserve) X Calendar Days in Month
Reference Rate: The rate of interest publicly announced from time to time by the Bank of America in San Francisco,
California, as its reference rate. The reference rate is set by the Bank based upon various factors, including the
Bank's costs and desired return, general economic conditions and other factors, and is used as a reference point for
pricing some loans. The Bank may price loans at, above or below the refcrence rate. Any change in the reference rate
shall lake effect on the day specified in the public announcement of such change.
To arrive at the required compensating balances, multiply the compensating balance
factor times service charges. The March 1993 analysis uses a 2.95% Earnings
Allowance Rate, which translates to a $443.47 collected balance equivalent for each
dollar of service fees.
Using compensating balances, excess balances can be carried forward to offset deficits
incurred during a calendar quarter and to cover charges in subsequent quarters, but
cannot be carried beyond one calendar year. Shortfall is due and payable within 10
days of presentment of the analysis for the final month of the quarter. If it is found
that during any quarterly period there are no positive balances (i.e., every month a
shortfall occurs), the Agency will automatically convert to a direct monthly fee
method.
Direct Fee Method -- Section 53682 of the California Government Code allows
public entities to pay direct fees for services. Using this alternative eliminates the
collected balance required in the compensating balance option. The daily collected
balance must be positive to avoid uncollected funds charges. Any positive daily
collected balances remaining after the float and reserve computations will earn a
credit, based on the current earnings allowance rate. This rate is based on the 30 -day
average of the 90 -day Treasury Bill Auction discount rate for the preceding month.
The earnings allowance credit will reduce the activity expense to arrive at the net
amount due the Bank. Conversely, uncollected funds are charged interest daily
based on 120% of reference rate. This interest will be added to the activity expense to
arrive at a total amount due.
Page 16
COMPENSATION METHODS (CONT.)
If the Agency selects the direct fee method, fees will be billed at the time the account
analysis for the month is presented (which is generally by the 20th of the following
month); charges are due and payable within 10 days. Excess balances from one
month can be carried forward to offset charges for a succeeding month.
Paying in direct fees generally provides a savings when compared to compensating
balances. If your investment rate exceeds 90% of the 90 day T-bill rate, then paying
direct fees each month will save you money. We can directly debit your account or
bill you for the service fees each month. Under the direct fee method, collected
balances left in your account continue to earn an earnings credit to offset fees. You
are only billed for fees not covered by your earnings credit from balances.
Inactive Deposit Method -- The Agency can maintain a zero percent inactive deposit
on which earnings accrue to offset activity charges. Using a zero time deposit, the
Agency eliminates the 10% reserve requirement imposed upon demand deposit
accounts. Time deposits of any length have no reserve requirements. An earnings
credit based on the current earnings allowance rate is computed and used to offset
expenses monthly. The earnings allowance rate is based on the 30 -day average of the
90 -day Treasury Bill Auction discount rate for the preceding month. We will
reconcile payment vs. charges at the end of each month. Uncollected funds charges
are calculated on a daily basis. The uncollected funds position at month-end may be
offset by funds in the zero -percent inactive deposit. For example, if at month-end
the Agency has used an average of $500,000 a day in uncollected funds, your time
deposit which we will hypothetically set at $600,000, would be netted against the
$500,000 and there would be no interest charged. In this scenario, the balance of
$100,000 would earn credit at 100% of the earnings allowance rate. If at month-end
the average uncollected funds balances exceeded the time deposit, any amount not
offset would be charged at 120% of Reference Rate. As the earnings allowance rate
or expenses fluctuate, the Agency will increase or decrease checking account balances
accordingly or pay excess fees directly.
The inactive deposit amount projected to cover activity expenses is calculated using
the following formula:
Projected Annual Activity Expense = Estimated Principal
(Current Earnings Allowance Rate) X (3601365) amount for services
only.
Under the inactive deposit method, shortfall will be billed quarterly provided at
least one month during the quarter is positive. If during any quarterly period, all
months are negative, shortfall will automatically become due and payable monthly.
Excess balances can be carried forward during a quarter to cover charges in
subsequent quarters, but can not be carried beyond one calendar year.
Page 17
OPTIONAL SERVICES
Bank Investment Securities Division
Bank of America NT & SA's Bank Investment Securities Division (BISD) is
dedicated to providing superior investment services. Our services are carefully
designed to assist clients in selecting among the investments with a view towards
meeting their investment objectives.
Bank of America NT & SA is registered with the Office of the Comptroller of the
Currency as a dealer in government securities, and with the Securities and Exchange
Commission as a dealer in municipal securities. Bank of America is the only
primary dealer in the government securities market headquartered on the west
coast, and can therefore offer very competitive pricing of U.S. Treasury bills, bonds,
and notes.
Bank of America is the largest dealer on the west coast in short-term U.S.
government agency securities, including those offered by the Federal Home Loan
Bank System, the Farm Credit System, the Federal National Mortgage Association,
the Federal Home Loan Mortgage Corporation, and the Student Loan Marketing
Association. As a member of dealer selling groups for securities issued by these
agencies, Bank of America can supply these securities for customers without
secondary market expense - again providing competitive prices.
Bank of America is a major west coast seller of commercial paper and can also
provide banker's acceptances, repurchase agreements, Eurodollar deposits, and
negotiable certificates of deposit. Bank of America is also the largest west coast -
headquartered underwriter of California municipal securities.
Payments in connection with the purchases and sale of securities by BISD clients can
be made directly from and to Bank of America checking accounts.
BISD Service Charge Schedule
Service Per Item Fee
Overnight Repurchase Agreements of more than
$1MM par or with a maturity of 7 days or more No Charge*
Dealer Commercial Paper of more than $1MM
par or a maturity of 7 days or more No Charge*
All Direct Issue as agent commercial paper $50.00
All U.S. Treasury Tenders $50.00
* $50.00 charge when security purchased is less than the stated minimum term or par value.
Page 18
OPTIONAL SERVICES (CONT.)
Service Per Item Fee
Odd lots of $100,000 par or more:
BofA Acceptances
No Charge*
U.S. T -Bill
No Charge*
U.S. T -Notes
No Charge*
U.S. T -Bonds
No Charge*
Fed Agency -Discounts
No Charge
Fed Agency Notes/Bonds
No Charge
Mortgage Backed Securities
No Charge*
* $50.00 charge when security purchased is less than the stated minimum term or par value.
Community Development Loan Program
BankAmerica Corporation has set a 10 year community lending goal of $12
billion supportive of the Community Reinvestment Act. Please refer to Exhibit
H for further information.
Page 19
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
REQUEST FOR BANICING SERVICES PROPOSAL
Basic Service Levels Required on a Monthly Basis
I. Checking Account
Other:
Total Monthly Cost 5148.75
(Included Minimum where Applicable)
* Unit cost is per deposit ticket. Assumes one deposit per week at 4 deposits per month.
•* After the merger Bank of America will have a check marketshare of 28% in California. Break:ut
Of encoded items is based on a similar California public entity that encodes its deposits.
'*`This charge is assessed to each item that exceeds a .70% Reject Rate. Bank of America works kith
customers to resolve reject problems and does not automatically begin to assess the charge until PO
days after initial notification to customer of the problem.
Page 20
Unit
Minimum
Cost
Extension
Cost
Account Maintenance
15.00
15.00
15.00
Items Paid - 33 checks
.10
3.30
n a
Items Deposited - 15 checks
1.10*
4.40
n a
( Very rarely is cash deposited)
Encoded
n a
On -us** - 5 items
$.042/item
.21
Calif. Clearing House - 5 items
$.048/item
.24
_Local Fed Reserve - 5 items
$.055/item
.28
Other Items
$.075/item
Reject Rate Charge***
$.30 /item
Unencoded
n a
On -us** - 6 items
$.085/item
.51
Other Banks - 9 items
$.095 /item
.86
Items Returned - 2
300
6.00
n a
Items Returned - 3 (Recleared)
1.15
3.45
n a
Wire Transfer/Out - 4
18.00
72.00
n a
Wire Transfer/In - 5
8.50
42.50
n a
Stop Payments
10.00
n a
n a
Other:
Total Monthly Cost 5148.75
(Included Minimum where Applicable)
* Unit cost is per deposit ticket. Assumes one deposit per week at 4 deposits per month.
•* After the merger Bank of America will have a check marketshare of 28% in California. Break:ut
Of encoded items is based on a similar California public entity that encodes its deposits.
'*`This charge is assessed to each item that exceeds a .70% Reject Rate. Bank of America works kith
customers to resolve reject problems and does not automatically begin to assess the charge until PO
days after initial notification to customer of the problem.
Page 20
EXHIBITS
A. Sample Contracts:
- Contract for Deposit of Money
- Reclear Agreement
- Oral Funds Transfer Agreement
- Account Signature Card
B. Schedule of Charges
C. Sample Bank Statement
D. Securities Custody and Clearance
E. BAMTRAC
- Balance Reporting Information
- Detail Reporting Information
F. Sample Account Analysis
G. Availability Schedule
H. Community Development Loan Program
ENCLOSURES
1991 Annual Report
Quality of Service Report for July 1991 - March 1992
Page 21
BANKING PROPOSAL
FOR THE REDEVELOPMENT AGENCY
CITY OF TUSTIN
UNION BANK
March 12, 1993
Government Services
445 Figueroa Street
Los Angeles, California, 90071-1602
Post Office Box 3100
Los Angeles, California 90051-1100
800.358.8956/FAX:213.236.5954
- t �)OII/Il .iil0�
March 12, 1993
Mr. Ronald A. Nault
Director of Finance
Redevelopment Agency
City of Tustin
15222 Del Amo Ave.,
Tustin, CA 92680
Covernmcm Services Unit
445 South Figueroa Street
Los Angeles, California 10071
Post Office Box 3100
Los Angeles, California 90051
213.236.5135
Dear Ron:
I would like to thank you for providing Union Bank's Government Services
Department the opportunity to present our banking services proposal to
the Redevelopment Agency of the City of Tustin. our focus in preparing
the proposal has been to meet all of your requirements and provide
service recommendations which offer the highest quality service and m'
competitive rate structure.
This proposal was prepared for the exclusive and confidential use of the
management of the Agency and is not rendered as a public document under
the Public Information Act.
Our proposal has addressed each of the Agency's required services. The
optional services include our automated Sweep and terminal initiated
l wire transfers through Money Transfer Service.
j Union Bank is committed to supporting the governmental marketplace. We
believe Union Bank's specialized Government Services Department staffed
with Bankers knowledgeable of the needs of government, and managed as a
dedicated unit, will promote a more effective banking relationship for
the Agency. Union Bank's well earned reputation is due to our
relationship management focus and dedication to serving the needs of the
California community.
Union Bank is looking forward to the opportunity to provide quality
services to the Redevelopment Agency of the City of Tustin.
Sincerely,
Tom McClenahan
Vice President
(800) 358-8956
(213) 236-7479
f
Um nn Rank
ti� �oK
TABLE OF CONTENT'S
I UNION BANK PROFILE
II ACCOUNT ANALYSIS
III AGENCY PRICE SCHEDULE and PROPOSAL TERMS
IV SWEEP PRODUCT and FDIC
V STATE of CALIFORNIA INTERFACE
VI BALANCE REPORTING and MONEY TRANSFER SERVICE
VII CUSTODIAL, INVESTMENTS, and CORPORATE TRUST SERVICES
VIII ANNUAL REPORT, RATIOS and CREDIT REPORTS
IX SCHEDULE OF FEES
Uni.. "u.k
u..roe rDl
UNION BANK PROFILE
Union Bank is the result of the November 1, 1988 acquisition of Union Bank, Los Angeles, by
California First Bank, San Francisco. The merger of California First and Union Bank has
resulted in a well-balanced bank that is stronger and more competitive than its predecessors.
The new organization, headquartered in San Francisco, has a rich and colorful heritage dating
back to the nineteenth century. California First's broad retail base and international expertise
fit well with the former Union Bank's middle market and real estate lending experience and
established reputation as California's premier business bank.
The new Union Bank, with over 200 locations in California, is a super -regional financial
institution with over $18 Billion in assets. It is the fourth largest commercial bank in California
and is among the 25 largest banks in the United States, based on deposits of $13 Billion.
With its competitive advantages, Union Bank is well-positioned to capitalize on the continued
growth of the California economy. Union Bank has always focused on building long-term
quality relationships with its customers by providing the services of a major bank while enjoying
the personal attention and responsiveness of a local bank.
GOVERNMENT SERVICES PROFILE
Successful market penetration and customer retention depend primarily on the innovation and
personal responsiveness a bank demonstrates to its market. Acknowledging this requirement for
personal service, Union Bank now specializes in the public agency sector.
Your account will be managed by the Government Services Department. This dedicated unit
handles public entities exclusively. As you are aware, the Agency has unique needs and we feel
you are better served by Bankers who have a good understanding of the California Government
Codes, government accounting and the needs of your Agency. In Southern California, Tom
McClenahan, Vice President, is your Government Relationship Consultant. The Government
Services Department is managed by Donna Hodgson, Vice President and Nor -them California
Government Relationship Consultant.
MEMEL
i
Union Batik
mom. rot
Government agencies each have an assigned Account Executive and a Deposit Relationship
Officer. The Account Executive will be the daily contact the Redevelopment Agency of the City
of Tustin makes with the bank. Your Account Executive is Linda MacArthur and your Deposit
Relationship Officer is Kathy Haro, responsible for the day-to-day operational issues of the
Agency. Dependent upon the nature of the situation and the solution, they will either attend to
it directly, enlist the aid of appropriate personnel or introduce into the relationship additional
professional assistance.
GOVERNMENT -SERVICES DEPARTMENT PERSONNEL
DONNA HODGSON, VICE PRESIDENT and MANAGER - Nineteen years banking
experience, the last twelve servicing government relationships.
TOM MCCLENAHAN, VICE PRESIDENT - Twenty-six years in banking, the last thirteen
years servicing relationships. Responsible for the Agency's relationship.
LYNDA MAC ARTHUR, VICE PRESIDENT - Twenty-eight years in banking centered in
cash management products. Responsible for the management of the Agency's relationship.
CATHY HARD, ASSISTANT VICE PRESIDENT - Nineteen years in banking operations.
Responsible for the daytoday operations of the Agency's accounts.
TUSTIN OFFICE
GARRY MOORE, VICE PRESIDENT and MANAGER
13300 Newport Avenue
Tustin, CA 92680
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O
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
REQUEST FOR BANKING SERVICES PROPOSAL
Basic Service Levels Required on a Monthly Basis
I. Checking Account
Unit
Cost Extension
Account Maintenance
$15.00
15.00
Items Paid 33 Checks
$ .12
$3.96
Deposited 15 Checks
(Very Rarely is Cash deposited)
Encoded (Average)
.08
$1.20
Unencoded (Average)
.055
$ .82
Items Returned 2
$3.00
$6.00
Items Returned 3 (Reclears)
1.00
$3.00
Wire Transfer/Out 4
$12.00
48.00
Wire Transfer/In 5
$8.00
40.00
Stop Payments
$7.00
Other: Balance Reporting (one-time set-up fee: $100.00)
First Account
$80.00
Per Item Reported
.18
Connect Time (Per Hour)
$12.00
Deposit Tickets Processed (Each) x 21 1.20 $25.20
Total Monthly Cost 242.38
(Include Minimum Where Applicable)
Minimum
Cost
Union flank
u.mm nor
TERMS OF PROPOSAL
Union Bank extends this proposal to the Redevelopment Agency of the City of Tustin for a
period of sixty (60) days from the date of this proposal. Any changes made at that time will be
communicated in writing at least thirty days prior to the implementation date.
Union Bank can service the Agency's banking needs of a three (3) year contract with the first
year at fixed unit prices (as indicated in our Fee Schedule). The Bank reserves the right to share
service fee information with the Agency and request additional compensation should it become
necessary in the subsequent years of this agreement. Any such price increases after the first
year will be provided with a 30 -day notice as required by law.
Pricing for FDIC, Courier/Armor Car, and Merchant Card Services are not included in the
above pricing agreement.
Termination of Agreement: Union Bank recommends that either the Redevelopment Agency
of the City of Tustin or the Bank may terminate their agreement upon 30 days written notice to
either party disclosed in the Contract for Deposit of Monies as required by the California
Government Code.
UNCOLLECTED FUNDS CHARGES
Customer usage of uncollected funds (UCF) is charged the Union Bank Reference Rate plus 2%
per annum computed on the average daily usage of uncollected funds for the month in question
and assessed through account analysis.
OVERDRAFTS
Union Bank realizes that it is not the intent of the Redevelopment Agency of the City of Tustin
to overdraw your account. Should this occur overdraft balances and related fees are charged the
Union Bank Reference Rate plus 2% per annum, computed daily, with a minimum daily charge
of $10.00, assessed from the time such overdraft balances are created and related fees incurred.
The minimum daily charges and accrued interest is then added to the overdraft balance. The
service charge will be added to your monthly account analysis.
jY
Y
Won Bank
�a, sac
CON'T'RACT FOR BANKING SERVICES
This CONTRACT FOR BANKING SERVICES (hereinafter "CONTRACT"), effective
May1 . 1993, by and between UNION BANK (hereinafter "BANK"), and the Redevelopment
Agency City of Tustin (hereinafter "Redevelopment Agency"), in accordance with California
Government Code 53682.
Whereas, in the judgement of the Treasurer this CONTRACT is to public advantage; and,
Whereas, Redevelopment Agency desires to secure a wide range of banking services to be
provided by a single financial institution pursuant to a CONTRACT; and,
Whereas, Redevelopment Agency solicited proposals to provide such banking services from the
financial institutions qualified to provide such services; and,
Whereas, BANK submitted a proposal which Redevelopment Agency deems to be the most
complete and responsive to Redevelopment Agency request for proposals, and will provide
Redevelopment Agency the desired types, availability and quality of services; and,
Whereas, BANK represents to Redevelopment Agency that it meets the requisite legal and other
qualifications and possesses sufficient financial strength and capacity to render the banking
services sought by the Redevelopment Agency.
Now, therefore, in consideration of mutual covenants it is agreed that BANK will service the
Redevelopment Agency's banking needs as presented in the proposal, dated March 12, 1993,
The Redevelopment Agency will be the sole selector of services to be utilized as outlined in the
proposal.
The terms of this CONTRACT are as stated in the Bank's proposal and is an integral part of
this CONTRACT. Any mutual amendments to this CONTRACT will be an addendum to this
CONTRACT.
This CONTRACT may be terminated on thirty (30) days notice by either party by delivering
written notice of such termination to the other party.
Redevelopment Agency City of Tustin
Treasurer
UNION BANK
Vice President
Dated: Dated:
Union ISank
Mneme. rm(
TERMS OF COMPENSATION
Union Bank will provide the Redevelopment Agency of the City of Tustin with any of the
banking services itemized in this proposal on a compensating balance, direct fee basis, non-
interest bearing Certificate of Deposit, or a combination of the three.
Compensating Balances: Account profitability will be reviewed on a monthly basis and any
deficiency will require an increase in the following month's balances. If compensating balances
are not made up within a calendar quarter any deficient amount owed will be invoiced and
payment required within 30 days of receipt. Compensating collected balances are ledger
balances less deposit float and reserves. Monthly earnings derived from any collected balances
will be applied to reduce the monthly charge for banking services rendered. Union Bank uses
the month's average 91 -day Treasury Bill Auction Rate less 10 basis points as a basis for
establishing the monthly earnings allowance. The earnings allowance rate is subject to change
without prior notice.
Direct Fees: On a direct fee basis, account profitability will be reviewed on a monthly basis.
Any deficiency, due to service charges owing will be invoiced to the Agency, with payment due
within 30 days of receipt or you may conveniently have your general checking account debited.
Non -Interest Bearing Certificate of Deposit: The Agency could maintain a non-interest
bearing Certificate of Deposit in which we would disburse earnings by means of a credit of
service charges. The Agency could select a maturity of 30 days, 90 days, 180 days, or 365 days
to suit its fund management. Interest is computed and credited against expenses monthly.
Should the interest credit not be sufficient to cover the expenses, additional demand balances
would be required in the succeeding month to supplement the shortfall or as an alternative the
Agency could be billed direct for the difference. Sufficient gross daily average ledger balances
are required to cover float only under this methodology. This method is only available if the
Agency decides not to implement the Sweep Account.
The description of services in this proposal does not constitute a commitment on the Bank's part
to sell. Sale and delivery of services will require customer qualification based on certain credit
standards established by Union Bank and the Agency's ability to execute standard agreements
for services rendered. Should you accept this proposal, a credit analysis will be performed prior
to installation of the services.
k
m m¢
SWEEP PRODUCT
We are pleased to offer the Agency a product which will maximize the investment potential of
excess collected funds. We will sweep excess collected checking account balances into a
repurchase agreement. Funds are also returned to your checking account as required to support
checks in progress. The checking account would automatically return to a preassigned peg
balance.
Interest is paid daily. At month end, the Agency would receive an accounting of the
transactions. Interest is calculated on the Fed Funds rate less 25 basis points. There are no
direct fees for the Sweep Product.
FDIC ASSESSMENT
Union Bank is assessed premiums for insuring customer deposits by the Federal Deposit
Insurance Corporation (FDIC). The monthly federal deposit insurance customer charge is the
rate paid by the bank to the Federal Deposit Insurance Corporation. Customer charges are
computed based on the agency's quarter -end ledger balance. The FDIC calculation is as follows:
• Quarter -end closing positive ledger balance adjusted down by one-sixth for the estimated
float,
• Multiplied by one-fourth of the FDIC assessment rate in effect at the time to arrive at the
quarterly fee,
• Divided by three to arrive at the aggregate monthly assessment,
• The resulting monthly assessment is then passed on in the account analysis for each of the
next three months.
YL4T 1'e,
u3
Union Rank
.M,r,,. rug
COLLATERAL - CALIFORNIA GOVERNMENT CODES
Union Bank collateralizes public fund deposits in accordance with Section 53601 et.seq. of the
California Government Code.
STATE SUBVENTIONS
Government agencies periodically receive scheduled state subventions from the State of
California. You may elect to direct these to Union Bank for being conveniently deposited on
a same day basis. Our staff will pick the warrants up from the State Controller and exchange
the warrants for checks at the State Treasurer's office for further crediting to your account. The
State provides Union Bank with same day monies if exchanged by the State's deadline of 10:30
a. in.
LOCAL AGENCY INVESTMENT FUND
Union Bank is a direct depository of the State of California. Therefore, all Local Agency
Investment Fund (LAIF) transactions are handled quickly and efficiently at no additional charge.
Simply call our Service Center with your account and confirmation number and the monies will
be moved to or from LAIF on a same day basis.
1
l
1
1
1
J
City of Tustin
Community Redevelopment Agency
Banldng Services Proposal
Submitted By: Fust Interstate Bank
March 12, 1993
OFist Mterstate Bank
TABLE OF CONTENTS
/Ij
City of Tustin - Community Redevelopment Agency
Section I.
Introduction
Section IL
Banking Services Proposal
Section III.
Basic Service Level Fee Schedule
Pro Forma Fee Schedule
Fee Schedule
Section IV.
Sample Account Analysis Statement
Section V.
Computer Specifications
Sample ACTION Reports
Section VI.
Daily. Investment and Safekeeping Services
Trading and Safekeeping Fee Schedule
Section VII.
Institutional Trust and Investment Management
Section VIII.
Bank Staff Resumes
Section IR.
References
Section X.
Contract for Deposit of Moneys
Cash Management Terms and Conditions
Section XI.
Banking Financial Highlights
How First Interstate Safeguards Depositors' Funds
Comments from the Stock Market Analysts
1992 December - Call Report
btFrst lMerstafe Bank
I r
Introduction
BANKING SERVICES PROPOSAL
1 The City of Tustin - Community Redevelopment Agency (RDA) will benefit from the
following advantages of establishing a banking relationship with First Interstate Bank:
j Service First Interstate is staffed with professional relationship managers who are
J measured by their ability to serve you promptly and efficiently. Providing
outstanding service is an integral part of the culture at First Interstate, and
j it is emphasized at all levels of the organization.
Continuity The RDA's relationship management team at the Bank will be thoroughly
l knowledgeable about you and your accounts. Because of the depth provided
J by this team, you can always count on being able to contact a team member
who knows you.
>` Creativity Our relationship managers are professional financial specialists with a
history of. experience in working with commercial accounts. Their thorough
1 knowledge of public funds, commercial lending, cash management, corporate
J trust, and investments will provide the City of Tustin - Community
Redevelopment Agency with creative, experienced bankers ready to help
maximize your funds management opportunities.
I
11
I
Competitive You can depend on First Interstate offering excellent products and service
Pricing. at fair, competitive -prices.
First Interstate is committed to the governmental segment and maintains several hundred
public funds relationships throughout the state. We have extensive knowledge and
experience in providing credit, cash management, and employee banking services to the
public sector. Please refer to Section IX. for references whom we encourage you to contact.
. Conditions of Oualification
o First Interstate Bank is a State of California chartered banking institution. It is a
member of the Federal Reserve System and has access to all Federal Reserve
services.
0. Fust biterstaft Bank
i
INTRODUCTION
I' March 12, 1993
Fust Interstate Bank of California is pleased to be granted this opportunity to present the
City of Tustin - Community Redevelopment Agency with a comprehensive proposal for
banking services. Our proposal includes responses to the Request for Proposal and
j descriptions of bank services to include: Depository Services, PC -Based Balance Reporting
j and Account Reconcilement, Direct Deposit of Payroll, Wire Transfers, Employee Banking,
and Institutional Trust.
!' First Interstate Bank's commitment to the governmental sector is evidenced by the Bank's
Government Services Group and the significant resources dedicated to it. This Group
actively supports First Interstate's more than 300 branches and commercial banking centers
throughout the state in maintaining and soliciting municipality relationships. Government
Services ensures that the specialized financial needs of the public funds sector are met
j through the professional delivery of sophisticated, cost-effective services.
First Interstate Bank's philosophy focuses on total relationship management. Our. Branch
Managers and Corporate Banking Officers are dedicated professionals committed to
developing and maintaining strong, long-term relationships. The Tustin Office, Government
Services Group, and Cash Management will all support the Redevelopment Agency
relationship. This team approach ensures that there is always someone available who is
familiar with your accounts to act promptly on requests or to answer any questions.
Delivering quality customer service is deeply ingrained in First Interstate's corporate culture.
Our commitment to service is exemplified by the "#1 Overall Customer Service" rating that
we were recently awarded by an outside marketing firm. Market Trends conducted over
8,000 "mystery shop" visits throughout California to measure quality service levels at First
Interstate and other financial institutions, including all of the major California banks.
Ninety-seven percent of all First Interstate branches were rated "at or above the expected
level of good performance." These results show that every day, year after year, First
Interstate is meeting the challenge of providing "#I Overall Customer Service."
First Interstate Bank of California is a wholly-owned subsidiary of First Interstate Bancorp.
With assets of $50 billion, we are the twelfth largest bank holding company in the United
States, serving more than five million households. Our territory is unique in that it
encompasses almost 1,000 branch locations in 13 western states.
I F. Fist MierstM* Bank
-I- —
Conversion Costs
If awarded the City of Tustin - Community Redevelopment Agency's business, First
Interstate Bank will agree to the following concessions and waivers to facilitate your
conversion to our Bank.
o We will pay for your initial check order;
o Setup charges for ACTION Balance Reporting will be waived; and
o The initial pricing period will be fixed from the date of any agreement to July 1, 1994.
aThe above waivers represent significant savings for the City of Tustin - Community
Redevelopment Agency. .
What follows is a brief presentation on services that Fust Interstate Bank recommends for
the City of Tustin - Community Redevelopment Agency's consideration.
Bank Accounts
First Interstate can provide the City of Tustin - Community Redevelopment Agency with
non-interest bearing or interest bearing demand deposit accounts (RDAs). These checking
accounts can accommodate your General, Payroll, and other deposit and disbursement
activity.
JNon-interest bearing demand deposit accounts will earn a monthly earnings credit rate that
will be applied to your available balances (collected balances less reserves). The earnings
credit rate will generate an earnings allowance which can be used to cover monthly account
activity. The earnings credit rate is based on the prior month's average 91 -day T -Bill
discount rate.
The earnings credit rates for the past twelve months are outlined below:
March, 1993
2.95%
September, 1992
3.15%
February, 1993
3.08%
August, 1992
3.28%
January, 1993
3.25%
July, 1992
3.70%
December, 1992
3.13%
June, 1992
3.66%
November, 1992
2.83%
May, 1992
3.81%
October, 1992
2.95%
April, 1992
4.05%
Depository Services
} Daily deposits can be made directly to the Tustin Office by the City of Tustin - Community
Redevelopment Agency's staff or to First Interstate Bank's Los Angeles Cash Vault via
deposit or armored carrier. Based upon the RDA's relatively low deposit activity, we
recommend the RDA consider the Tustin Office for local, cost-effective processing.
First Interstate can also coordinate daily or weekly deposit courier pickups from the RDA
to the Los Angeles Cash Vault on the RDA's behalf. This service is designed for non-cash
deposits and would allow the RDA to bypass branch depositing.
I
I
I
J
J
Upon receipt of the deposits at our Cash Vault, manifests are signed by the Cash Vault
staff, and duplicate deposit tickets can be provided. The City receives same-day ledger
credit for all deposits made to the Cash Vault as long as the deposits reach our facility by
the deposit deadline and are packaged according to the Bank's specifications.
Change orders can be facilitated by using Tele -Entry, First Interstate Bank's touch-tone
service whereby the City can request change orders on a regular or as -needed basis. The
change orders will be delivered to. you by your armored carrier when it picks up your daily
deposits
When the City uses First Interstate Bank's Cash Vault for deposits and change orders, it
will benefit from:
o State-of-the-art computer system for accuracy and speed in processing your deposits
and change orders.
o Stringent procedures to ensure the integrity of deposits, from receipt to teller
assignment, verification under dual custody, and posting to your accounts.
o The latest in security equipment to protect your deposits.
o Qualified, experienced customer service representatives to respond to inquiries and to
advise you of any deposit adjustments.
receive its ARP statements within approximately ten (10) business days after the end of the
preceding month.
1 Full ARP- The RDA provides the Bank with checks issued information in the form of tape
input, data transmission, diskette, or voucher copies that are MICR encoded. An
outstanding check file is created, and as checks pay against the RDA's accounts, the Bank
matches them against the issue file. The Bank provides you with the checking account
statement with checks listed in serial number order, reports of checks paid, checks
outstanding, and an exceptions report.
Partial ARP - No issue information is submitted by the City of Tustin - Community
Redevelopment Agency. The Bank provides the RDA with a bank statement and output
transmission or tape at the end of the reconciliation period which includes your checks paid
data. This data can then be run against the RDA's own reconcilement system to match the
paid items against the issued items.
1 PC - Based Reconcilement - First Interstate offers ACCURET, an inexpensive service that
is best utilized for monthly check volumes of under 5,000 and for users who wish to use a
1 personal computer for check ledger reconciliation, rather than a mini -computer or
J mainframe computer.
J Direct Deposits
First Interstate Bank maintains a direct relationship with the State of California whereby
the Bank has the ability to accept direct deposits to the City of Tustin - Community
_J Redevelopment Agency's account from the State for various payments and handle Local
JAgency Investment Fund (LAIF) activity.
The fee associated with each deposit in to LAIF is $10.00, while withdrawals from LAIF to
your First Interstate Bank account are performed free of charge. State warrants picked up
in Sacramento and credited directly to your account cost $4.00 each.
Wire Transfers
First Interstate Bank's wire transfer system offers a convenient way for the City of Tustin -
Community Redevelopment Agency to handle its wire needs. We offer our customers the
ability to initiate outgoing wires via touch-tone telephone or terminal and to receive
notification of incoming wires by telephone, terminal, or fax.
o Record storage costs are reduced for blank and canceled payroll checks.
o The time that would otherwise be spent in releasing, holding, and mailing out checks
for employees who are on vacation, sick leave or away on business travel is eliminated.
o Employees enjoy immediate funds availability, without waiting several days for payroll
checks to be deposited and cleared.
First Interstate Bank's state-of-the-art processing system provides timely and accurate
electronic deposit of your payroll on payday, streamlining the process for the RDA and its
employees.
Direct Deposit information can be transmitted to the Bank by tape, data transmission, or
PC initiation. The price per transmission is as follows: Tape ($65.00 per tape); CPU -CPU
Data Transmission ($25.00 per input); and PC Transmission ($10.00 per input). ACTION
ACH is recommended as it has low monthly costs and programming flexibility associated
with it. Please refer to Section V. for computer specifications for PC initiation.
Direct Deposit is also available through third -party payroll processors such as ADP or
Control Data. Implementation of the service can be facilitated by using a third -party
processor, as the communication link to the Bank is already established.
Employee Banking
First Interstate Bank will offer City of Tustin - Community Redevelopment Agency
employees who participate in Direct Deposit of Payroll a special banking package (The
Bank That Works With You), as well as offer VISA or MasterCard credit cards, subject to
t credit approval, to key employees for business use.
The Bank That Works With You is a program that can provide the City of Tustin -
Community Redevelopment Agency's employees certain First Interstate banking services at
a discounted rate or with some fee waivers. The Bank That Works With You program
combines an extensive array of time -saving and money -saving benefits for you and your
employees' convenience.
VISA/MasterCard Business Card
VISA or MasterCard credit cards can be provided to the City of Tustin - Community
Redevelopment Agency for its employees' and administrators' use. Issuance of credit cards
is subject to the execution of required documentation and to credit approval by the Bank's
Credit Administration.
The City of Tustin - Community Redevelopment Agency will enjoy the added convenience
and extra benefits of the First Interstate VISA/MasterCard Business Card.
o WorldwideAcceptance: Accepted by over eight million merchants around the world
- more than three times as many as American Express.
o A Comprehensive Package of BeneCts: Including 24-hour toll-free customer service,
medical and legal emergency service, travel emergency service, lost or stolen card
replacement, guaranteed hotel reservations, travel accident insurance, and more.
j o Auto Rental Insurance: Automatically provides coverage against collision, vehicle
j theft or damage caused by an accident during the rental period when
VISA/MasterCard . Business Card is used to rent a car (excess reimbursement
insurance). This represents a savings of up to $12 a day.
o Purchase Protection and WarrantyExtension: Automatically extends the warranty
and insures most purchases against loss, theft, damage or fire (certain restrictions
and exclusions apply).
o Tailored Spending Limits: Allows the customer to set a different credit limit for
each card, helping you better manage employee expenses.
!� o Flexible Payment Options: Monthly payments may be made in full or in part for
easier cash control.
1 o Cash Access When Traveling: Cash advances . at any participating financial
institution and at over 24,000 cash machines (if approved by the customer).
�] o Corporate Liability Protection: Customers with ten or more Business Cards are
automatically protected from card misuse by terminated employees (certain
;:u restrictions and exclusions apply).
Implementation/Customer Service
First Interstate Bank is dedicated to providing full implementation support and maintenance
of services geared to the City of Tustin - Community Redevelopment Agency's specific
needs.
A Cash Management Representative, Hans Heim, and a Cash Management Support
Specialist will be assigned to the Community Redevelopment Agency's relationship. They
will be responsible for the implementation and training of all cash management services.
This ensures the highest level of consistency and service possible through the initial
conversion stages. We will work to ensure a timely and error -free conversion which is
anticipated to take approximately 30 days. After training and implementation, your account
is supported by a dedicated cash management customer service team.
' t Contact Personnel
The City of Tustin - Community Redevelopment Agency's relationship will be serviced by
several departments within the Bank and will be housed at First Interstate's Tustin Office.
Mike Patterson will be your primary contact and will work closely with Cash Management,
' 1
Government Services, and other
groups to coordinate all activity associated with the
relationship.
The individuals who are authorized
to represent First Interstate Bank are highlighted below:
Mike Patterson
Hans Heim
Vice President & Manager
Vice President
Tustin Office
Cash Management Sales
j 1140 Irvine Blvd.
707 Wilshire Blvd., W12-17
Tustin, CA 92680
Los Angeles, CA 90017
(714) 558-5966
.(213) 614-5166
Dale A. Paterson H
Tom Dobyns
J Assistant Vice President
Senior Vice President & District Manager
Government Services Group
Orange County/Inland District
5000 Birch Street, Suite 10,000
1010 North Main Street, Suite 615
Newport Beach, CA 92660
Santa Ana, CA 92701
(714) 253-4427
(714) 953-4611
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
l
REQUEST FOR BANKING SERVICES
PROPOSAL
1
Basic Service Levels Required on a
Monthly Basis
1
I. Checking Account
Unit
Mb-&=
Cost
Extension
Cos
jAccount
Maintenance $15.00
$15.00
N/A
Items Paid 33 checks .13
4.29
NIA
Items Deposited 15 checks 10•
1.50
N/A
(Very rarely is cash deposited)
11
J
Encoded (processing at cash vault o48*
.72
N/A
Unencoded checks processed at _10
1.50 -
N/A
1
local branch.)
Items Returned 2 c;. no
10.00
N/A
Items Returned 3 C; - on
1r;_00
N/A
Wire Transfer/Out 4
An An
N/A
1
J
Wire Transfer/In 9 - --9- p •
-A5�
-u4L-
Stop Payments 12.00
12.00
N/A
Other:
Wire transfer account monthly maintenance 5.50
5.50
NIA
ACTION (Information Reporting) 10.00 + •20per 35.20
10.00
item
i
Deposit Ticket (branch) 1.35
1.35
N/A
Total Monthly cost
(Include Minimum Where Applicable)
s2n4.84
�m
*Mutually exclusive
l**Includes
J
mail advice
pI.ST IlpTERSTATE SAM O8' IB'OMN!A
City OL Talon
Wka Yattarsoa-_
6WX t413OWM2MRT 9MVICES REPORT
• CCMWVjMD M • 71/2" tam tj3M AN taecaot Cma aas! Cr 2,95% am • zx� 1010= t t� Q 1t.004
1
15.0000
15.00 _
6,652
33
0.1300
4.29
1,902
15
0.1000
1.50
665
5
5.0000
25.00
11,087
1
1.3500
1.35
599
47.14
20,905
4
15.0000
60.00
26,608
5
7.5000
37.50
16,630
5
1.5000
7.50
3,325
1
5.5000
5.50
2,439
110.50 49,004
1 10.0000 10.00 414�5
126* 0.2000 25.20 1
--35.20 15,610
192.84. 85,519
�� • It was'assumed that the RDA would receive opening ledger and collected balances,
one -and two-day float, and the total dollar of credits and debits each day. These
six summary fields, multiplied by 21 business days in each month, results in 126
items reported each month.
PAGE: 1
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1
FIRST INTERSTAra BAA or C CFJUA
city of Tustin
UA9E
Mike Patterson--
RT 8MVICES REPO
ns et 2,M AMD a �
�.. � � i2.00%
ACCOUNT 815=CZ2
VOLX= UNIT PRICE TOTAL
COLLECTED
PR= B%LANC8 ROD
DDA SEF=Cffi
ACCOUNT
1
15.0000
15.00
6,651
DEBIT POSTIN0
33
0.1300
4.29
1,902
®(St DEPOSITED _ LOCAL
15
0.1000
1.50
655
1
RiWM 1T229f
5
5.0000
25.00
110087
I
SIT - Egg
1
1.3500
1.35
599
.�
SUSTOMU, -
47.14
20,905
)KNU TRAXSVZR/Wn=
MCWEMANSPER WME
4
15.0000
60.00
36,608
j
INOOKM WIRE TRANSPER(AD'1'CKUM)
5
7.5000
37.50
16,630
J
MAIL ADVICE
5
1.5000
7.50
3,325
WIM TRAMM ACCOUNT no )g1"
1
3.5000
5.50
1,439
SAL
110.50
49,004
ACV= (INFORNMUCN REPORTING)
- ))i1T, REpOW April Smog WAINT
1
10.0000
10.00
4,435
PMZWIOpg DAY 80l9MRY ITEMS IN
126 "
0.2000 -
25.20
11,176
SUBTOTAL
35.20
15,610
SEICM Tom
192.84.
83,319
I
1
1J�'
It was assumed that the RDA would
receive opening ledger and collected balances,
one-and two-day float, and the total dollar of credits
and debits
each day. These
six summary fields, multiplied by
21 business days in
each month,
results in 126
it
items reported each month.
1�
E
z
PAGE. 1
I�
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
REQUEST FOR BANKING SERVICES PROPOSAL
Basic service Levels Required on a Monthly Basis
I. Checking Account
Unit
Mlnlmm
Cost
Extension
Cos
']
Account Maintenance $15.00
$15.00
N/A
Items Paid 33 checks 13
4.29
N/A
Items Deposited 15 checks .10*
1.50
N/A
(very rarely is cash deposited)
�JEncoded
(processing at cash vault .048*
.72
N/A
Unencoded checks processed at .10
1-9n
N/A
I�
local branch.)
Items Returned 2 s -On
10 0�-
n
Items Returned 3 Q
it; Dn
N/A
J{
Wire Transfer/Out 4 19; nn
An nn
N/A
�1
Wire Transfer/IA 5
JJ
stop Payments 12.00
12.00
N/A
other:
Wire transfer account monthly maintenance 5.50
5.50
N/A
1�
ACTION (Information Reporting) 10.00 + .20per 35.20
19144_
item
Deposit Ticket (branch) 1.35
1-35
N/A
I
Total Monthly cost
(Include Minimum Where Applicable)
s2n4
84
*Mutually exclusive
**Includes mail advice
Implementation/Customer Service
l First Interstate Bank is dedicated to providing full implementation support and maintenance
J of services geared to the City of Tustin - Community Redevelopment Agency's specific
needs.
A Cash Management Representative, Hans Heim, and a Cash Management Support
Specialist will be assigned to the Community Redevelopment Agency's relationship. They
will be responsible for the implementation and training of all cash management services.
This ensures the highest level of consistency and service possible through the initial
conversion stages. We will work to ensure a timely and error -free conversion which is
j anticipated to take approximately 30 days. After training and implementation, your account
1 is supported by a dedicated cash management customer service team.
'
Contact Personnel
The City of Tustin - Community Redevelopment Agency's relationship will be serviced by
several departments within the Bank and will be housed at First Interstate's Tustin Office.
Mike Patterson will be your primary contact and will work closely with Cash Management,
Government Services, and other
groups to coordinate all activity associated with the
relationship,
The individuals who are authorized
to represent First Interstate Bank are highlighted below:
Mike Patterson
Hans Heim
Vice President & Manager
Vice President
+
J
Tustin Office
1140 Irvine Blvd.
Cash Management Sales
707 Wilshire Blvd., W12-17
Tustin, CA 92680
Los Angeles, CA 90017
(714) 558-5966
.(213) 614-5166
Dale A. Paterson H
Tom Dobyns
!
Assistant Vice President
Senior Vice President & District Manager
Government Services Group
Orange County/Inland District
5000 Birch Street, Suite 10,000
1010 North Main Street, Suite 615
Newport Beach, CA 92660
Santa Ana, CA 92701
i�(714)
253-4427
(714) 953-4611
13
I
VISA/MasterCard Business Card
VISA or MasterCard credit cards can be provided to the City of Tustin - Community
Redevelopment Agency for its employees' and administrators' use. Issuance of credit cards
is subject to the execution of required documentation and to credit approval by the Bank's
Credit Administration.
The City of Tustin - Community Redevelopment Agency will enjoy the added convenience
and extra benefits of the First Interstate VISA/MasterCard Business Card.
o WorldwideAcceptance: Accepted by over eight million merchants around the world
- more than three times as many as American Express.
o A Comprehensive Package of Benefits: Including 24-hour toll-free customer service,
medical and legal emergency service, travel emergency service, lost or stolen card
replacement, guaranteed hotel reservations, travel accident insurance, and more.
o Auto Rental Insurance: Automatically provides coverage against collision, vehicle
theft or damage caused by an accident during the rental period when
VISA/MasterCard Business Card is used to rent a car (excess reimbursement
insurance). This represents a savings of up to $12 a day.
o Purchase Protection and Warranty Extension: Automatically extends the warranty
and insures most purchases against loss, theft, damage or fire (certain restrictions
and exclusions apply).
o Tailored Spending Limits: Allows the customer to set a different credit limit for
each card, helping you better manage employee expenses•
o Flexible Payment Options: Monthly payments may be made in full or in part for
easier cash control.
o Cash Access When Traveling: Cash advances . at any participating financial
institution and at over 24,000 cash machines (if approved by the customer).
o Corporate Liability Protection: Customers with ten or more Business Cards are
automatically protected from card misuse by terminated employees (certain
restrictions and exclusions apply).
11
o Record storage costs are reduced for blank and canceled payroll checks.
o The time that would otherwise be spent in releasing, holding, and mailing out checks
for employees who are on vacation, sick leave or away on business travel is eliminated.
o Employees enjoy immediate funds availability, without waiting several days for payroll
checks to be deposited and cleared.
First Interstate Bank's state-of-the-art processing system provides timely and accurate
electronic deposit of your payroll on payday, streamlining the process for the RDA and its
employees.
1 Direct Deposit information can be transmitted to the Bank by tape, data transmission, or
PC initiation. The price per transmission is as follows: Tape ($65.00 per tape); CPU -CPU
Data Transmission ($25.00 per input); and PC Transmission ($10.00 per input). ACTION
ACH is recommended as it has low monthly costs and programming flexibility associated
with it. Please refer to Section V. for computer specifications for PC initiation.
Direct Deposit is also available through third -party payroll processors such as ADP or
-� Control Data. Implementation of the service can be facilitated by using a third -party
processor, as the communication link to the Bank is already established.
Employee Banking
First Interstate Bank will offer City of Tustin , - Community Redevelopment Agency
employees who participate in Direct Deposit of Payroll a special banking package (The
Bank That Works With You), as well as offer VISA or MasterCard credit cards, subject to
t credit approval, to key employees for business use.
The Bank That Works With You is a program that can provide the City of Tustin -
Community Redevelopment Agency's employees certain First Interstate banking services at
a discounted rate or with some fee waivers. The Bank That Works With You program
combines an extensive array of time -saving and money -saving benefits for you and your
employees' convenience.
0
receive its ARP statements within approximately ten (10) business days after the end of the
preceding month.
Full ARP- The RDA provides the Bank with checks issued information in the form of tape
input, data transmission, diskette, or voucher copies that are MICR encoded. An
outstanding check file is created, and as checks pay against the RDA's accounts, the Bank
matches them against the issue file. The Bank provides you with the checking account
statement with checks listed in serial number order, reports of checks paid, checks
outstanding, and an exceptions report.
Partial ARP - No issue information is submitted by the City of Tustin - Community
Redevelopment Agency. The Bank provides the RDA with a bank statement and output
"1 transmission or tape at the end of the reconciliation period which includes your checks paid
j data. This data can then be run against the RDA's own reconcilement system to match the
paid items against the issued items.
PC - Based Reconcilement - First Interstate offers ACCURST, an inexpensive service that
is best utilized for monthly check volumes of under 5,000 and for users who wish to use a
1 personal computer for check ledger . reconciliation, rather than a mini -computer or
mainframe computer.
J
Direct Deposits
l First Interstate Bank maintains a direct relationship with the State of California whereby
1 the Bank has the ability to accept direct deposits to the City of Tustin - Community
Redevelopment Agency's account from the State for various payments and handle Local
Agency Investment Fund (LAIF) activity.
The fee associated with each deposit in to LAIF is $10.00, while withdrawals from LAIF to
J your First Interstate Bank account are performed free of charge. State warrants picked up
in Sacramento and credited directly to your account cost $4.00 each.
' Wire Transfers
First Interstate Bank's wire transfer system offers a convenient way for the City of Tustin -
Community Redevelopment Agency to handle its wire needs. We offer our customers the
ability to initiate outgoing wires via touch-tone telephone or terminal and to receive
notification of incoming wires by telephone, terminal, or fax.
7
Depository Services
1 Daily deposits can be made directly to the Tustin Office by the City of Tustin - Community
Redevelopment Agency's staff or to First Interstate Bank's Los Angeles Cash Vault via
deposit or armored carrier. Based upon the RDA's relatively low deposit activity, we
I recommend the RDA consider the Tustin Office for local, cost-effective processing.
f First Interstate can also coordinate daily or weekly deposit courier pickups from the RDA
to the Los Angeles Cash Vault on the RDA's behalf. This service is designed for non-cash
deposits and would allow the RDA to bypass branch depositing.
Upon receipt of the deposits at our Cash Vault, manifests are signed by the Cash Vault
staff, and duplicate deposit tickets can be provided. The City receives same-day ledger
credit for all deposits made to the Cash Vault as long as the deposits reach our facility by
1 the deposit deadline and are packaged according to the Bank's specifications.
Change orders can be facilitated by using Tele -Entry, First Interstate Bank's touch-tone
service whereby the City can request change orders on a regular or as -needed basis. The
change orders will be delivered to. you by your armored carrier when it picks up your daily
deposits. _
When. the City uses First Interstate Bank's Cash Vault for deposits and change orders, it
will benefit from:
o State-of-the-art computer system for accuracy and speed in processing your deposits
and change orders.
o Stringent procedures to ensure the integrity of deposits, from receipt to teller
assignment, verification under dual custody, and posting to your accounts.
o The latest in security equipment to protect your deposits.
o Qualified, experienced customer service representatives to respond to inquiries and to
advise you of any deposit adjustments.
1 5
(1 Conversion Costs
1 If awarded the City of Tustin - Community Redevelopment Agency's business, First
{ Interstate Bank will agree to the following concessions and waivers to facilitate your
{ conversion to our Bank.
o we will pay for your initial check order;
o Setup charges for ACTION Balance Reporting will be waived; and
o The initial pricing period will be fixed from the date of any agreement to July 1, 1994.
The above waivers represent significant savings for the City of Tustin - Community
Redevelopment Agency.
what follows is a brief presentation on services that First Interstate Bank recommends for
the City of Tustin - Community Redevelopment Agency's consideration.
Bank Accounts
First Interstate can provide the City of Tustin - Community Redevelopment Agency with
non-interest bearing or interest bearing demand deposit accounts (RDAs). These checking
accounts can accommodate your General, Payroll, and other deposit and disbursement
activity.
Non-interest bearing demand deposit accounts will earn a monthly earnings credit rate that
will be applied to your available balances (collected balances less reserves). The earnings
credit rate will generate an earnings allowance which can be used to cover monthly account
activity. The earnings credit rate is based on the prior month's average 91 day T -Bill
discount rate.
The earnings credit rates
for the past twelve months are outlined
below:
1 March, 1993
2.95 %
September, 1992
3.15%
J February, 1993
3.08%
August, 1992
3.28%
3.70%
January, 1993
3.25%
July, 1992
3.66%
=� December, 1992
3.13%
June, 1992
3.81%
November, 1992
2.83%
May, 1992
4.05%
October, 1992
2.95%
April, 1992
3
I
I
I
i
BANKING SERVICES PROPOSAL
Introduction
The City of Tustin - Community Redevelopment Agency (RDA) will benefit from the
following advantages of establishing a banking relationship with First Interstate Bank:
Service First Interstate is staffed with professional relationship managers who are
measured by their ability to serve you promptly and efficiently. Providing
outstanding service is an integral part of the culture at First Interstate, and
it is emphasized at all levels of the organization.
Continuity The RDA's relationship management team at the Bank will be thoroughly
knowledgeable about you and your accounts. Because of the depth provided
by this team, you can always count on being able to contact a team member
who knows you.
Creativity Our relationship managers are professional fmancial specialists with a
history of. experience in working with commercial accounts. Their thorough
knowledge of public funds, commercial lending, cash management, corporate
trust, and investments will provide the City of Tustin - Community
Redevelopment Agency with creative, experienced bankers ready to help
maximize your funds management opportunities.
Competitive : You can depend on First Interstate offering excellent products and service
Pricing at fair, competitive -prices.
First Interstate is committed to the governmental segment and maintains several hundred
public funds relationships throughout the state. We have extensive knowledge and
experience in providing credit, cash management, and employee banking services to the
public sector. Please refer to Section IX. for references whom we encourage you to contact.
Conditions of Qualification
o First Interstate Bank is a State of California chartered banking institution. It is a
member of the Federal Reserve System and has access to all Federal Reserve
services.
1
UFist Interstate Bank
INTRODUCTION
} March 12, 1993
1
First Interstate Bank of California is pleased to be granted this opportunity to present the
J City of Tustin - Community Redevelopment Agency with a comprehensive proposal for
banking services. Our proposal includes responses to the Request for Proposal and
1 descriptions of bank services to include: Depository Services, PC -Based Balance Reporting
l and Account Reconcilement, Direct Deposit of Payroll, Wire Transfers, Employee Banldng>
and Institutional Trust.
First Interstate Bank's commitment to the governmental sector is evidenced by the Bank's
Government Services Group and the significant resources dedicated to it. This Group
l actively supports First Interstate's more than 300 branches and commercial banking centers
throughout the state in maintaining and soliciting municipality relationships. Government
Services ensures that the specialized financial needs of the public funds sector are met
through the professional delivery of sophisticated, cost-effective services.
First Interstate Bank's philosophy focuses on total relationship management. Our Branch
Managers and Corporate Banldng Officers are dedicated professionals committed to
developing and maintaining strong, long-term relationships. The Tustin Office, Government
Services Group, and Cash Management will gill support the Redevelopment Agency
i relationship. This team approach ensures that there is always someone available who is
J familiar with your accounts to act promptly on requests or to answer any questions.
Delivering quality customer service is deeply ingrained in First Interstate's corporate culture.
Our commitment to service is exemplified by the "kl Overall Customer Service" rating that
J we were recently awarded by an outside marketing firm. Market Trends conducted over
8,000 "mystery shop" visits throughout California to measure quality service levels at First
Interstate and other financial institutions, including all of the major California banks.
Ninety-seven percent of all First Interstate branches were rated "at or above the expected
1 level of good performance." These results show that every day, year after year, First
Interstate is meeting the challenge of providing Vl Overall Customer Service."
First Interstate Bank of California is a wholly-owned subsidiary of First Interstate Bancorp.
With assets of $50 billion, we are the twelfth largest bank holding company in the United
States, serving more than five million households. Our territory is unique in that it
encompasses almost 1,000 branch locations in 13'western states.
1
19 Fwst Interstate Bank
Section I.
Section H.
Section M.
Section IV.
Section V.
Section VI.
Section VII.
Section VIII.
Section IX.
Section X.
Section XI.
TABLE OF CONTENTS
City of Tustin - Community Redevelopment Agency
Introduction
Banking Services Proposal
Basic Service Level Fee Schedule
Pro Forma Fee Schedule
Fee Schedule
Sample Account Analysis Statement
Computer Specifications
Sample ACTION Reports
Daily. Investment and Safekeeping Services
Trading and Safekeeping Fee Schedule
Institutional Trust and Investment Management
Bank Staff Resumes
References
Contract for Deposit of Moneys
Cash Management Terms and Conditions
Banking Financial Highlights
How First Interstate Safeguards Depositors' Funds
Comments from the Stock Market Analysts
1992 December - Call Report
0. Fsst kiterstate Bank
City of Tustin
Community Redevelopment Agency
Banking Services Proposal
Submitted By:.Fust Interstate Bank
March 12, 1993
btFrst kin staff Bank
Sanwa Bank
California
March 11, 1993
Mr. Ronald A. Nault
Director of Finance
City of Tustin
Community Redevelopment Agency
15222 Del Amo Avenue
Tustin, CA 92680
RE: Request for Proposal
Banking Services
Dear Mr. Nault:
Tustin Office
701 East First Street
Tustin, Caifomia 92680
(714) 8382781
First of all, thank you for this opportunity. Hopefully we can
establish a relationship that is both convenient and worthwhile to
you and the Redevelopment Agency.
In response to your letter, Sanwa Bank
rated in debt and C.D. ratings for both
have enclosed a Ratings Matrix comparing
capital disclosure indicating our Tier 1,
Capital position. Our deposit ratings
indicate that Sanwa Bank California has a
minimum you are looking for. A copy of
financial statement as well as fiscal
enclosed.
California is favorably
short and long term. I
debt ratings as well as a
Leveraged and Risk-based
are A -1+/A. This would
stronger ranking than the
our most recent interim
year end statement is
Sanwa Bank Tustin Office is located within the corporate boundaries
of the City of Tustin. In fact the bank is just around the corner
from the City Hall once you move back to your offices on
Centennial. Our headquarters and service center are located in Los
Angeles.
Sanwa is a well capitalized bank with the technology to offer you
personal, accurate and timely responses to your banking needs. we
are very familiar with the requirements of most municipalities
including secured deposits, account reconcilement, balance
reporting and investments including requirements under California
Government Laws.
Along with this letter I am enclosing a summary listing the
estimated number of monthly transactions, their unit fee, estimated
monthly cost and compensating balances that would be required to
avoid charges during the month of March, 1993. Included in that
summary is a discussion about our SanLine (Balance Reporting)
service.
In the event you would prefer to use earnings from funds on deposit
to pay for services, credit is tied to the 91 day Treasury Bill
average auction rate for the previous month. This rate changes
each month
Security and safety is extremely important in every aspect of our
daily transactions. When ordering a wire transfer, following a
preagreed upon procedure, with direct access to our wire room, a
preauthorized person from the City would call in a wire order. Our
wire department would call and confirm the order with someone other
than the originator of the order. In the event you would prefer
to deal solely with the local branch office, we would perform the
same confirmation with a second preauthorized person.
Our Treasury Department is able to accept direct orders for
purchase and sale of investment securities. Securities may include
Repurchase Agreements, secured by Treasury Notes and Bonds, which
have maturities of one to thirteen days, Eurodollar time deposits,
commercial paper of prime corporations (rated A1P1) such as GE
Capital Corp, American Express Credit and ITT financial to name a
few. Unlike Repos and Eurodollars, commercial paper transactions
carry a service charge of $60.00 per transaction.
Bankers Acceptances are available with maturities of one to six
months; treasury bills for one year or less and for longer terms we
have discount notes issued by the Federal Home Loan Banks, Fed Farm
Credit Banks, etc. These may be liquidated prior to maturity.
When purchasing Treasury bills at auction, there is a fee of $60.00
per transaction.
When considering the cost of services, fees and earnings may be
reconciled monthly or quarterly allowing for an average for each
quarter. We would consider a fixed annual fee paid monthly, but
believe monthly or quarterly analysis would result in a more
equitable cost to the Redevelopment Agency.
As a side note, Sanwa Bank California is prepared to offer all
employees of the City of Tustin our Corporate Employee Program.
This includes a standard checking account at no charge, the first
order of checks Free, and a .50% interest rate reduction on
consumer loans when the payment is deducted from an account. We
are prepared to handle service requests from foreign drafts to
domestic money orders.
To take care of our diverse population, Sanwa Bank California has
more than 100 branch offices around California offering full
commercial banking services for more than 100 years.
Our local office can provide night drop as well as drive up and ATM
services. Depositors with personal accounts can call and receive
information about their accounts 24 hours a day.
No doubt you already know that the Tustin Office of Sanwa Bank
California has been in the City for more than 100 years. During
that time we have been dedicated to serving the community,
providing a secure and safe place for deposits and offering
excellent banking services at reasonable prices.
I would appreciate an opportunity to discuss any or all of the
above at your convenience. One call is all that is necessary.
Sin erely,
A: Baker
Assistant Vice President
and Manager
ALB:b
encl.
SAN LINE INTERNATIONAL INFORMATION MANAGEMENT SERVICE
Sanwa Bank California offers San Line International Information Management Service to assist Tustin
Community Redevelopment Agency in achieving top cash management performance. Through San Line
International and your microcomputer or terminal, Tustin Community Redevelopment Agency is provided
with account information. You can subscribe to the San Line International services that meet today's needs,
and add additional services in the future.
Account Information
Information reported by Sanwa Bank California is either summary balance information, such as closing
balances, funds availability and transaction totals; or detail transaction information, such as individual
deposits credited or checks paid. Each day's information is available for access by 6:00 a.m. Pacific Time
the following business day. Data will be stored for five banking days, and can be retrieved at any time
during that period.
Balance History
Balance History Report is a separate report option. Balance History provides an account summary report
for any time period in the previous sixty-three banking days. Each day's balances are listed and averages
determined.
Security
San Line International provides several levels of security regardless of module requested. Unique company
numbers and passwords restrict access to authorized individuals.
Benefits
Sanwa Bank California's San Line International will allow Tustin Community Redevelopment Agency to
improve efficiency of current cash operations by:
Receiving timely information on Tustin Community Redevelopment Agency's
accounts at Sanwa Bank California.
2. Clarifying float and collected balance status of each account.
3. Helping to reduce information gathering errors in your cash projections.
PRO FORMA FEE ANALYSIS
TUSTIN COMMUNITY REDEVELOPMEN/ AGENCY
Volumes Provided In RFP and Regular Earnings Credit Rate for March '93
UNIT
MON
SERVICE
VOLUME
SANWA`
SANWAY
SANWAE
Earning Credit
DEMAND DEPOSIT ACCOUNTS
Rate 2.45%
Maintenance
1
15.00000
15.00
8,009.66
Deposits
1.25000
Checks Deposited
15
0.08500
1.28
680.82
Checks Paid
33
0.12500
4.13
2,202.66
Incoming Wires
5
8.00000
40.00
21,359.08
Outbound Wires, Domestic (DIRECT ACCESS)
4
12.00000
48.00
25,630.90
Outbound Wires, International
*
30.00000
Telephone Transfers
*
6.50000
Currency Deposited/Supplied, per $100
*
0.11500
Rolled Coin Deposited/Supplied, per roll
0.10000
Returned Items
5
3.25000
16.25
8,677.13
Recleared Items
*
1.10000
Stop Payments
*
10.00000
NSF Items
*
10.00000
FDIC Assessment
*
0.00019
SUBTOTAL
58.550.58
SAN LINE INTERNATIONAL INFORMATION
REPORTING SERVICES
BALANCE AND DETAIL
Maintenance
Balance
1
40.00000
40.00
21,359.08
Detail
25.00000
Balance History
10.00000
(in addition to Balance or Detail)
Per Account
1-5
1
15.00000
15.00
8,009.66
6-10
10.00000
11 and up
5.00000
Per Item Output, all
168
0.20000
33.60
17,941.63
(8 Fields of info on 1 account x 21 days)
Connect Time, per minute
30
0.20000
6.00
3,203.86
Implementation one-time not in total
75.00000
SUBTOTAL94.60
50,514.23
ESTIMATED"
FEES AND CHARGES
204.25
109,064.81
*Volume Unknown
Please see attached Schedule of Fees and Charges for any additional charges that may apply.
Fees stated in this proposal are valid for ninety days from delivery.
Page 4 of 4
DEPOSIT CONCENTRATION SERVIC
Base charge
balance, less float and reserves.
Implementation and maintenance
First account
$100.00
Company set-up
$ 75.0
Each additional
75.00
Location maintenance (included in initial setup) 5.(
Depository Transfer Check (DTC)
.10
Location storage
1.Ot,
Per transfer
1.00
Miscellaneous
1.25
Minimum per month
15.00
Retumed items
25.00
Electronic Depository Transfer (EDT)
Vendor charges
Cost + 25%
Per transfer
.17
SUREPAY ELECTRONIC PAYMENT &
COLLECTION
Monthly maintenance
50.00
Surepay PC
PC Software Sublicense
395.00••
Magnetic tape input
Transmission fee
25.00
Direct input
30.00
25.00
Transaction processed
.08
Service bureau input
Transaction processed
.08
Implementation
Direct input
100.00
Data transmission input
Service bureau input
50.00
Direct input
35.00
Installation testing (Over 31', each
75.00
Service bureau input
25.00
Transaction processed
.08
Miscellaneous
Bad input processing
60.00
Corporate Trade Payment
Recall item
20.00
Transaction received
,40
Returned item
10.00
Addenda record
,01
Phone call
5.00
"Installation testing - New customer implementation charge includes three input tests. Charge of $75.00 assessed on fourth,
subsequent, data transmission or magnetic tape tests.
"This fee cannot be paid for with compensating balances.
BUSINESS CHECKING ACCOUNT ANALYZED'
An earnings credit, based on the 91 -day Treasury Bill average auction rate for the previous month is applied to the average ledger
balance, less float and reserves.
Maintenance charge
13.00
Currency deposited or supplied, per $1,000
1.15
Item paid
.125
Rolled coin depositor or supplied, per roll
.10
Item deposited
.085
Returned Items
3.25
Deposit
1.25
Stop payments
10.00
FDIC assessment - at bank assessment
Interest charge for overdrafts or use of unavailable funds is reference rate + 2%.
"Additional fees apply as stated in the current business Banking Services Schedule of Fees and Charges.
XPZ91006.111C 09/04/92
CONTROLLED DISBURSEMENT
Maintenance
staccount
Jditional account
Presentment notification
Early notification, per account
Regular notification
Previous day detail reporting
Via Prime Connection, per month,
Up to 1,000 checks paid
1,001 - 2,000 checks paid
2,001 - 3,000 checks paid
Over 3,000 checks paid
Via San Line International
DDA charges
Checks paid
Stop payment
Paid check inquiry
Returned check
WHOLESALE LOCKBOX
Account Reconcilement fees
$155.00 Partial Reconcilement
100.00 Base charge
Check paid (includes DDA)
100.00 Additional cut-off
See San Line Int'I.
per account
100.00
135.00
180.00
220.00
See San Line Int'I. &
First Tennessee Fees
.125
10.00
2.50
10.00
Full Reconcilement
Base charge
Check paid (includes DDA)
Additional cut-off
Input fees
Per item
Per tape
Per transmission
Output fees
Magnetic tape output, per tape
Data transmission output, per trans.
Per item
Check sequencing, per item
Page 2 of 4
$ 65.00
.175
65.00
75.00
.175
75.00
.03
10.00
20.00
15.00
20.00
.03
.03
Monthly maintenance
150.00
Exception processing
.10
Remittance processing, per item
Stapling
,02
Basic plan
.35
Open mail by hand
.05
Check photocopy (in addition to Basic fee)
^ °irst photocopy
.08
Special notations, handling
Quote
ldditional photocopy
.07
Invoice photocopy
.50
Lockbox reporting
Non-standard photocopy
.50
Telephone call
Return envelope (in addition to Basic fee)
.05
Daily, per month
100.00
Journal listing
Occasional/On request, each
7.50
Per item (in addition to Basic fee)
,10
Terminal (San Line International)
Per field
_07
See San Line fee schedule
Programming, per hour (non-standard)
75.00
Magnetic tape
Processing options
Per tape
$ 10.00
A.M. clearing, per month
25.00
Per transaction
.01
Cash received
2.50
Data transmission
Foreign Item received
2.50
Per transmission
10.00
Certified mail received
2.50
Per transaction
.01
Verify multiple payees (Over 10)
.03
Miscellaneous fees
Sorting, per item, per sort Imanual)
.10
Post Office Box rental
Cost
Fine sort (programmatically)
,01
Postage
Cost + 15%
Multiple payees (sorted) (Over 3)
.08- .18
Courier
Cost + 25%
Correspondence
.15
Interoffice Delivery
No charge
MPZ91006.M1C
09/04092
SBCL capital strength
continues to shine
"Well Capitalized" Sanwa
(FDICIA Requirements) (9/30192)
Risk-based
Tier 1 Capital 6% 10.63%
Leverage
Capital 5% 8.92%
Risk-based
Total Capital 10% 13.77%
Whether one compares Sanwa Bank California to the
top 10 largest banks in California or the federal gov-
ernment's own guidelines for a "well capitalized"
bank, SBQ's capital ratios stand head and shoulders
above the rest (See chart). Capital provides on objec-
tive gauge of an institution's financial strength, show-
ing the "cash cushion" of equity and reserves that
support a bank's balance sheet.
..
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