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HomeMy WebLinkAboutAgenda - 06-19-2001-8i 6 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 19, 2001 ,~ 1 Action Agenda Item No. $ - ~ SUBJECT: Contract with BB & T for Receivin and Processin Mailed Tax Pa ments DEPARTMENT: Revenue PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Contract Listing of Current Users INFORMATION CONTACT: Jo Roberson, Tax Collector, ext 2727 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 9fi8-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To approve an agreement under which payments for Orange County properly tax bills can be mailed directly to BB&T for receipt, processing, and crediting to Orange County's bank account. BACKGROUND: The Revenue Director, Finance Director, and their staffs have examined a proposed agreement with the County's financial institution, BB&T, that would enable tax payers to mail their payments for property tax bills (real, personal, and/or registered motor vehicles) directly to BB&T. Among other outcomes, this arrangement would: • reduce the amount of mail processed daily by the Revenue Director's staff • ensure same day deposits of revenues, resulting in faster crediting of payment to the County's bank account • produce greater investment earnings due to faster deposits • enable Revenue staff to shift a substantial number of work hours weekly away from mail processing to other high priority activities such as collection of delinquent accounts Staff estimates that in a one year period of time, one staff member spends approximately 1200 hours sorting, opening, preparing for processing, keying and balancing. During the month of December and early January, the entire office staff of 11 members is involved. in some facet of the mail process the majority of every working day (because tax payments increase leading up to the statutory January 5 deadline for the imposition of interest on delinquent property tax bills). The total annual effort for mail processing is approximately 1800 hours in staff time. Workload statistics reflect an approximate 21 % increase in the number of-Registered Motor Vehicles (RMV) billings since 1995-1996, from 67,557 to 85,151 annually. The number of property tax bills sent each year in late July or early August has grown from approximately 44,800 in FY 1995-1996 to 49,0000 in FY 2000-2001. There are currently 19 other North Carolina counties using the BB&T payment processing system. Additionally, the Orange Water and Sewer Authority (OWASA) has been using this system for approximately 1 year. OWASA staff report that the system is precise and the customer service has been excellent. It should be noted that Revenue staff will continue to process all tax payments mailed to the Hillsborough office, as vvell as tax payments made over the counter or left in the County's 24-hour dropbox outside the Government Services Center. FINANCIAL IMPACT: As noted in the table below, staff believes that the cost of this service will be offset by the savings and additional revenue to be realized by diverting staff hours saved to other productive collection efforts. The projected revenue collection in the Manager's recommended 2001-02 budget has been increased by $40,000 to reflect anticipated increased collection of bills for emergency medical services. Lock-lfox 1~"~nan Contract w/ Bank 38, Add scan-line to bill (one-time) Program Savings and Revenue Same-day deposit revenue increase 6,400 Increased EMS collections 40,000 Net Lock Box Program Cost RECOMMENDATION(S); The Manager recommends that the Board approve the contract with BB&T and authorize the Manager to sign it, subject to final review by staff and the County Attorney: BB&T TREASURY SERVICES AGREEMENT THIS AGREEMENT is made this day of , 20 , by and between ("Customer") and ()Branch Banking and Trust Company ("Bank") ()Branch Banking and Trust Company of South Carolina (`Bank ~ ()Branch Banking and Trust Company of Virginia ("Bank') 1. Services: Subject to the terms and conditions contained in this Agreement, the Commercial Bank Services Agreement ("CBSA") and Attachment which describe specific Treasury Services ("Services") (whether attached hereto or relating to any Service requested subsequer the date of this Agreement), each of which are incorporated herein by reference, Bank will famish Customer with those Services that it ~ request. Customer agrees to pay for all said Services in accordance with this Agreement and the Bank's current fee schedule for such Servi Initiation by Customer of any Services constitutes acceptance of the terms and conditions of this Agreement, the CBSA and any applic Attachment. 2. Customer's Duties. Customer shall: a) Perform and observe all conditions, covenants and restrictions as set forth in this Agreement and any Attachments, and if required 1 particular Service, maintain, at a minimum, a Deposit Account at Bank subject to the CBSA. b) Pay any bill rendered by Bank within 30 days after the billing date and grant to the Bank a right of set-off in all of Customer's deF accounts for any bills, costs or expenses owed to Bank under this Agreement or any Attachment. c) Warrant that Customer is fully suthoriaed to effect transaction concerning any account, whether or not in Customer's name, the Customer's request is the subject of, or is affected by, any Service. d) Carefully examine any statement, notification or confirmation of a transaction and notify the Bank within 30 days of the statement dot any errors, discrepancies or fraudulent transactions. Customer agrees that the Bank will not be liable for any erroneous, unauthorize~ fraudulent transaction resulting from the Custarner's failure to safeguard any security or access device used in connection with any Serv or its failure to reasonably supervise its employees or agents entrusted with the security or access devise. Customer agrees to condu detailed background check of all employees or agents having authority to implement any cash management transaction and to periodic check such others' work. The Customer further agrees that the Bank will not be liable for any erroneous, fraudulent or unauthor transaction which was not otherwise caused by the Bank's gross negligence or willful misconduct. e) Indemnify and hold Bank, its affiliates, subsidiaries, officers, directors and employees harmless against any claim, loss, dam deficiency, penalty, cast or expense resulting from: (a) any breach or default by the Customer in the performance or observance of thi any other Agreement; (b) any negligence or willful misconduct of the Customer; (c) incorrect, incomplete, or inaccurate date information famished by Customer to Bank; (d) any action taken by Bank (i) at the direction of Customer or its agent, (ii) at any direc authenticated by any device, symbol, or code assigned to or chosen by Customer in connection with a Service (unless Bank has ac knowledge that such direction is unauthorized), or (iii) in accordance with the procedures set forth in any Attachment. 3. Bank's Duties. Bank shall: a) Instruct Customer and its personnel in the proper use and operation of the Service(s) furnished herewith. b) Exercise ordinary care in the performance of Bank's obligations under this Agreement and any Attachment, including the maintenanc the confidentiality of Customer's account and of any identification device, symbol, or code utilized by Customer in obtaining a Service. c) Not be responsible for any liability, loss or damage resulting from any delay in its performance of, or from any failure to perform responsibilities under this Agreement or any Attachment, or for any error in transmission which: (i) was not caused by the Bank's g negligence or willful misconduct; (ii) results from any malfunction, including date related processing, that may occur in Custom computer software or computer system; or (iii) from an act of God; a natural catastrophe ar event, whether or not abetted or aggravates human or unnatural agencies; the unavailability, interruption, or malfunction of communications facilities or utilities; acts of, delays failures to act by other banks or financial institutions, intermediaries or their personnel; and criminal acts by persons other than B personnel; or any other circumstances beyond the Bank's control. d) Consistent with any security procedures agreed upon between Bank and Customer, confirm the identity of any person executin transaction pursuant to this Agreement or any Attachment. The Bank, otherwise, may rely upon any written or verbal instruction by person if the bank reasonably believes such authority is genuine and shall not be liable or responsible for any action taken or not take accordance thereof. e) Indemnify and hold Customer harmless against any loss, damage, deficiency, penalty, cost or expense claims brought against Customs the extent that such claims arise out of the Bank's gross negligence or willful misconduct. Any liability of Bank to Customer shaT limited to direct lasses suffered by Customer, not to exceed the sum of the fees and charges then imposed for Services purchased Customer hereunder for a period of one year. EXCEPT AS PROVIDED IN THIS AGREEMENT, THE BANK MAKES NO REPRESENTATION OR WARRANTY, WHETF STATUTORY, EXPRESS, OR IMPLIED, INCLUDING WITHOUT LIlVIITATION ANY WARRANTIES OF MERCHANTABILITY FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT AND UNDER ANY CIRCUMSTANCES SHALL BANK BE LIABLE FOR A Rev. 3/99 F0003560027 SPECIAL, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR INDIRECT DAMAGES, INCLUDING, WITHOUT LIMITATION, LOSS O] PROFITS, EVEN IF THE BANK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 4. Term. a) This Agreement shall remain in full force and effect on the same terms and conditions as expressed herein, or as may be amended, anti such time as it is terminated by either party as provided herein. Subject to section 4(b) and 4(c), either party may terminate this Agreemen or, any Service by giving thirty (30) days prior written notice to the other party. The liabilities of the parties shall cease on the effectiv date of termination, except as to events that shall have previously occurred. b) All Services are provided subject to applicable laws', and rules. In the event Bank reasonably determines- it is no longer able to provide Service due'to a change in laws or rules, this Agreement or a specific Service may be terminated immediately upon written notice by Ban: to Customer. c) In the event; of Customer's failure to perform or observe any of the conditions, covenants, and restrictions herein set forth, or if in the goo faith opinion of Bank the Customer is involved in' illegal or unethical business practices or is financially unstable and/or the prospect c payment or performance has been impaired, then in addition to any other available remedies, Bank may terminate this Agreement or an Service immediately by giving written notice to Customer. 5. Miscellaneous. Bank may amend this Agreement and any Attachment, including .any provision as to fees, by giving Customer prior written notice of th amendment, but this Agreement may not otherwise be amended or assigned except in writing signed by both parties. a) Any notice under this Agreement shall be deemed given: (i) to Bank when such notice is received at its Corporate Services Division or ~ such other location as Bank may hereafter provide to Customer in writing; (ii) to Customer when mailed, postage prepaid, or delivered t Customer's current address, as shown on Bank's records. b) All information, whether printed, written or oral, furnished by either party shall be held in confidence and used only for the purpose c . famishing or utilizing Services rendered herewith and in compliance with the CBSA. c) This Agreement, together with the CBSA and any applicable Attachments contain the entire understanding of the parties and supersede any previous discussions, proposals, or agreement, whether oral or written. In the event of any conflict between a provision set forth in thi Agreement and a provision contained in an Attachment, the latter provision shall prevail. This Agreement shall not supersede or gover any other banking or lending relationship between the parties. d) The invalidity of any provision of this Agreement, either in its entirety or in any particular circumstance, shall not impair the validity of th remaining provisions or the validity of such provision in any other circumstance. This Agreement shall be governed, as to bot interpretation and performance by the laws of the State in which Bank's main office is located, without regard, to its conflict of lave provisions. e) Either party has the option of requiring that all disputes that may arise between the Customer and Bank, or any affiliate of the Bank, relate to this Agreement, any Attachment or Services, or any products or investments provided to Customer shall be decided by arbitration he] in the city where the Bank's main office is located. The parties are also advised that: (i) Arbitration is final and binding on the parties; (i The parties are waiving their rights to seek remedies in court, including the right to jury trial; (iii) Pre-arbitration discovery is generall more limited than and different from that in court proceedings; (iv) The arbitrators' award is not required to include factual findings < legal reasoning and any party's right to appeal or seek modification of rulings by the arbitrator is strictly limited; and (v) The panel ~ arbitrators may include arbitrators who ,were or are affiliated with the banking or. securities industr Any arbitration shall be conducted under the Rules of the American Arbitration Association ("AAA"), except that arbitration of dispueE involving aBroker-Dealer affiliate of the Bank may be conducted under the Rules of the National Association of Securities Deale ("NASD") or an );xchange or self-regulatory organization of which the Broker is a member. In matters involving the Broker as a party, tl Customer may elect in the first instance whether arbitration shall be by the AAA, NASD, an Exchange or other self-regulatory organizatic of which the Broker is a membei, but if the Customer fails to make such election, by registered letter to the Broker at the Broker's ma' office; before the expiration of ten days after receipt of a written request from the Broker to make such election, then the Broker may mal such election. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers and to be effective as ~ the day and year first above written. Customer hereby acknowledges receipt of copies of this Agreement and any applicable Attachments ar consents to the terms and conditions contained therein. Customer further acknowledges and consents to the pre-dispute arbitration clan: 'contained in the paragraph 5(e) above. CUSTOMER BANK - Signed• Signed• gy; By: Title• Title• xP., ~/nn F0003560027 5 Branch Banking and Trust Retail Reference List County Tax Accounts Vehicle and Property Tax Processing Buncombe County Brunswick County Cabarrus County Chatham County Celveland County Davie County Durham County Edgecombe County Gaston County Harnett County Lexington County Lincoln County New Hanover County Moore County Onslow County Rockingham County Robeson County Union County - Wilson County **** OWASA