2j. ACH with Chan Bank 0:1111r,
•
CITY OF
_> 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900 • FAX (612) 937-5739
E� ✓ �
MEMORANDUM
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Del r I rife$?�l
DATE: August 20, 1990 --in wit
' TO: Don Ashworth, City Manager g-a - 50
FROM: Finance Department `�l 1
SUBJECT: Payroll Direct Deposit
For the past several months we have been testing with the Chanhassen
Bank their process for providing direct deposit of employees' payroll
checks. The process has worked very smoothly for the past two pay
periods and we are prepared to implement full scale direct deposit
' for the first time with the pay checks dated August 24, 1990. Ulti-
mately this process should provide us a smoother method of
controlling bank reconciliation and additionally, provide the
employees with more timely depositing of their payroll checks.
We polled the employees as to their interest in this process and to
' date have positive response from 8O% of the permanent employees.
The attached ACH origination agreement should be executed by the City
Council and signed by the Mayor, Manager and Treasurer . Attached is
also a fee schedule for the costs associated with this service. The
service should cost us an average of $8.00 per pay period which is
insignificant compared to the benefits derived.
1
I
I r [EA : E]
II CHANHASSEN
BA:1\11(
1
1
July 25, 1990
' Jean Meuwissen
Tom Chaffee
City of Chanhassen
' 690 Coulter St.
Chanhassen, MN. 55317
Dear Jean and Tom,
The Chanhassen Bank is pleased to offer Direct Deposit
' electronic processing to the City of Chanhassen.
Attached to this letter, you will find the agreement and
schedules for our service. Because of your willingness to
' act as our pilot entity for this project, we will waive all
set up fees and prenotification costs. Your fees will begin
when your first live file is transmitted.
I am encouraged by your employee response and look forward
to a lasting relationship with the City of Chanhassen.
' To execute the agreement, we simply need the authorized
signers of the City to sign and return it to me. Our bank
will then sign the agreement, copy it and forward the
' original back to you.
Thank you again for your enthusiasm in supporting this
' project.
Sincer ly yours,
' Ma k P. Luukkonen
V /Cashier
937-2265
600 West 78th Street •Chanhassen, MN 55317 ■(612)937-BANK
PITHE .41 II
EASTP ACEj It
][EVii\TKI
A
ACH ORIGINATION AGREEMENT
STATE BANK OF CHANHASSEN ,
This agreement is made this day of
19 by and between:
(Company) and State Bank of Chanhassen (Bank) .
The Company has requested that the Bank permit it to '
initiate paperless entries through the Bank to accounts
maintained at the Bank and in other financial institutions,
by means of the Automated Clearing House (the "ACH")
operated by the Upper Midwest Automated Clearing House
Association, Inc. (UMACHA) .
Now, therefore, in consideration of the mutual promises '
in this agreement, it is agreed as follows:
1. The Bank will transmit the credit and debit entries
initiated by the Company directly or indirectly to the ACH
as provided in the Operating Rules of UMACHA (Rules) , as in
effect from time to time, and this agreement. The Rules
incorporate the Operating Rules of the National Automated
Clearing House Association by reference.
2. The Company will comply with the Rules insofar as ,
applicable. The specific duties of the Company provided in
the following paragraphs of this Agreement in no way limit
the foregoing undertaking.
3. The Company will retain the original or a copy of each
authorization received by the Company for two (2) years
after termination or revocation of such authorization.
4. The Company will send prenotification that it intends to
initiate an entry or entries to a particular account within
10 calendar days of the subsequent live entry or entries.
Such notice shall be provided to the Bank in the format and
on the medium prescribed in Enclosure 1. If the Company
receives notice that any such prenotification has been
rejected by a receiving financial institution, or that a
receiving financial institution will not accept entries
without having first received a copy of the authorization
signed by its customer; the Company will not initiate
entries. The Company may initiate entries after correcting
the entry as requested by the receiving financial
institution or after providing the receiving financial
institution with such authorization.
600 West 78th Street .Chanhassen, MN 55317 ■(612) 937-BANK '
IM
(EASYPLACE)
I C \
BANK
1
' ACH ORIGINATION AGREEMENT Page 2
5. The Company will provide entry information in the manner
' specified in Enclosure 1 of this agreement.
6. Each entry or file shall be delivered to the Bank
' according to the schedule and delivery procedure
established by the Bank as set forth in detail in
Enclosure 1 of this agreement.
' 7. The Company will provide immediately available funds to
cover any credit entry initiated by it not later than the
Settlement Date applicable thereto.
' 8. The Company will receive immediately available funds for
any debit entry initiated by it on Settlement Date
' applicable thereto.
9. If the Company discovers that any entry it has initiated
' was in error, it may notify the Bank of such error. If such
notice is received prior to the time provided in Paragraph 6
of this Agreement for the delivery of the erroneous entry,
the• Bank will utilize its best efforts to initiate an
adjusting entry or stop payment of any "on-us" credit entry
within the time limits provided by the Rules. If such
notice from the Company is received after the time provided
' in Paragraph 6 of this Agreement, the Bank will utilize its
best efforts on behalf of the Company, consistent with the
Rules.
' 10. In the event any entries are rejected by the ACH for
any reason whatsoever, it shall be the responsibility of the
Company to remake such entries; provided, however, that the
' Bank shall remake such entries in any case where such
rejection by the ACH was due to mishandling of such entries
by the Bank and sufficient data is available to the Bank to
' permit it to remake such entries. The Company shall retain
and provide the Bank on request all information necessary to
remake any file of entries for five days after midnight of
the Settlement Date.
' 11. The Company will promptly provide immediately available
funds to indemnify the Bank if any debit entry is rejected
' after the Bank has permitted the Company to withdraw
immediately available funds in the amount thereof or if any
adjustment memorandum that relates to any such entry is
' received by the Bank.
1600 West 78th Street •Chanhassen, MN 55317 •(612) 937-BANK
r a EASY PLACE
I
BANK 1
ACH ORIGINATION AGREEMENT Page 3
II
12. The Company will indemnify the Bank if the Bank incurs
any loss or liability on account of the breach, with respect
to any entries initiated by the, Company, of any of the
II
warranties of an Originating financial institution contained
in the Rules, except due to the Bank's own negligence.
13. The Company will compensate the Bank for providing I
services referred to herein at the prices set forth in the
Bank's schedule of charges. The Bank reserves the right to II amend the schedule of charges by giving 30 days written
notice.
14. In the event the Company incurs any loss due to 11 .
mishandling of a particular entry or entries, the Bank's
liability to the Company shall be limited to (i) liability
for its own negligence or willful misconduct; and (ii) the II amount recoverable by the Bank from the ACH, UMACHA, or any
third party pursuant to the Rules or any indemnity
agreement. II 15. In the event that any entry or file of entries is
delivered to the Bank by an agent of the Company, the .Bank
shall be fully protected in acting in reliance on such entry
I
or file of entries and need not inquire of the Company as to
whether the same is duly authorized.
16. This Agreement may be terminated on ten days' written I
notice by either party, provided that applicable portions of
this Agreement shall remain in effect with respect to any
entries initiated by the Company prior to such termination. I
State Bank of Chanhassen
Company I
II
Title Title
II
II
Title
1
600 West 78th Street •Chanhassen, MN 55317 •(612)937-BANK
Title I
[ ASYPLACEI
I cHANH/66sEN
BANK
ENCLOSURE 1
' FORMAT AND MEDIUM FOR ORIGINATION INPUT
The Chanhassen Bank is currently accepting written,
typewritten or computer-printed documentation for manual
' input.
A detail is defined as one credit or debit entry per
' account being accessed. Each detail should originally
include:
' Name of Employee
Employee Number
Routing/Transit Number of account to be credited
Type of account to be credited (checking vs. savings)
' Account Number
Once input by The Chanhassen Bank, the above detail will be
' assigned a detail number. Subsequent input with live data
should include the following minimum data:
Effective Date of payroll
Detail Number
Name of Employee
Dollar Amount of credit
' Total Amount of all dollars credited
Account from which payroll funds are to be debited
Signature of authorized signer
' Input should be submitted in the Priority Processing
envelope provided by The Chanhassen Bank by the following
deadlines.
Early Deadline Input- 9:30 a.m. Day Prior to
Effective Date
(may be submitted earlier
if information available)
' Late Deadline Input- 2:30 p.m. Day Prior to
Effective Date
Input will not be received after 2:30 p.m. for next day
processing.
I
1 600 West 78th Street .Chanhassen, MN 55317 ■(612) 937-BANK
FIE•
EASY ACE
CHANEASSEN
BANK
i
DIRECT DEPOSIT SERVICES 1
PRICING
SET UP FEE $ 2.50 per employee account*
($ 25.00 minimum charge)
EMPLOYEE ACCOUNT MAINTENANCE
Corrections,
additions, $ 8.00 per change
deletions, or
changes
PAYROLL TRANSMISSION $ 5.00 per pay period
On Us Items (Chanhassen Bank Account) I
Early Deadline .03
Late Deadline .04/cr
.05/db
9th District Items (Upper Midwest Bank Account)
Early Deadline .05
Late Deadline .08/cr
.10/db
Non-9th Dist Items (All Other Accounts) '
Early Deadline .06
Late Deadline .09/cr
.12/db
Early deadline items are received by 9:30 a.m. the day
prior to the effective date of the transaction. Entries
received after this time are deemed late deadline items and
must be received by 2:30 p.m. the day prior to the effective
date of the transaction.
Entries after 2:30 p.m. will not be accepted for next day
processing.
* Your employees have the option of depositing their pay into a checking
account, a savings account or a split deposit into more than one account.
There is a $ 2.50 charge for each account elected.
600 West 78th Street .Chanhassen, MN 55317 ■(612)937-BANK 8/90 1