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2009-037S:\Our Documents\0rdinances\09Tidelity Express.doc ORDINANCE NO. ~D09 0'7 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO APPROVE AN AGREEMENT WITH FIDELITY EXPRESS TO PROVIDE ADDITIONAL PAYMENT LOCATIONS FOR UTILITY CUSTOMERS; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby authorizes the City Manager, or his designee, to execute an agreement between the City of Denton and Fidelity Express, substantially in the form that is attached hereto, and made a part hereof as Exhibit "A" (the "Agreement"), on behalf of the City. SECTION 2. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2009. A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: .PVED AS/TO LEGAL FORM: A BURGESS, CITY ATTORNEY BY: c C- , c Exhibit A THE STATE OF TEXAS COUNTY OF DENTON AGREEMENT THIS AGREEMENT, by and between THE CITY OF DENTON, TEXAS (hereinafter called "CITY') with its principal offices at 215 East McKinney Street, Denton City Hall, Denton, Texas 76201 and FIDELITY EXPRESS, a division of GSC ENTERPRISES, INC. (herein called "Fidelity Express"), a Texas corporation, having its principal offices at 128 Jefferson, Sulphur Springs, Texas 75482. WITNESSETH WHEREAS, CITY desires to provide its utility rate`paymg customers with retail payment processing services that will improve overall the CITY'S current bill collection and processing; and which will result in convenience to the CITY'S customers; and WHEREAS, Fidelity Express operates or currently provides money orders and other services at convenient, readily accessible, retail locations, which are capable of processing the CITY'S utilities customer payments in an efficient, effective fashion; depositing said payments in designated CITY accounts at specified banldng institutions; and transmitting payment information to the CITY; and WBI REAS, Fidelity Express agrees and will at all times during the term of this Agreement provide a minimum oftwelve (12) locations in the CITY and in contiguous cities to accept the CITY'S utility customer payments, and Fidelity Express will perform the necessary remittance processing; and In consideration of the mutual covenants and promises, and the premises hereinafter contained, CITY and Fidelity Express hereby AGREE as follows: 1. Description of Services Fidelity Express stall provide the following payment processing services to CITY during the term of this Agreement, until amended by a writing that is signed by both the CITY and Fidelity Express, or until terminated as provided for herein. A. Fidelity Express shall provide a minimum of twelve (12) retail locations for the collection and processing of CITY'S utility customer payments, in the CITY and in contiguous cities. B. A CITY utility customer pays to the Fidelity Express agent a CITY utility service bill, as well as paying to the Fidelity Express agent a transaction fee (solely for the benefit of Page 1 of 11 Fidelity Express) not to exceed $1.50 per service bill, and the agent immediately enters the information into an agreed-upon database. Such database shall be agreed upon by the CITY and Fidelity Fxpress before this Agreement commences. This payment may be in any combination of cash, personal check, cashier's check, ce ti$ed check or money order. The agent's terminal transmits this data immediately to Fidelity Express. C. On the same business day (Day 1), Fidelity Express shall enter payment information into its database system; it shall process said information; it shall reconcile output with details and batch totals at 3:00 p.m.; it shall create an electronic file and then transmit the information to the CITY by 3:3 0 p.m. Fidelity Express shall notify CITY electronically, at customer.semce@cityofdenton.com, or at a designated fax number, to report the total number of items and the total dollar amount transmitted from Fidelity Express to the CITY for that batch. D. One business day following that (Day 2 Fidelity Express forwards via ACH the monies obtained from CPTY'S utility customers, into the designated CTI'Y accounts at approved banking institutions so that the finds are available for the CITY'S use on the second business day following the payments (Day 3). Fidelity Express shall notify the CITY electronically immediately thereafter, at customer.service@cityofdenton.com or at a designated fax number, to report the exact dollar amount that Fidelity Express deposited. E. The above is only a general description of services. Fidelity Express will accept reasonable modifications of the procedures described in the procedures set forth in this Paragraph 1 herein, with any such reasonable modifications to be submitted by one party to the other party to this Agreement in writing from time-to-time and as agreed-upon. 2. Term This Agreement shall become effective upon execution by the CITY and Fidelity Express and shall remain in force and effect for a period of one (1) year from the 1-4 day of April, 2009 and expires the 31 st day of March, 2010. However, this Agreement will automatically renew for additional one-year terms unless written notice of termination is received by either Party at least thirty (30) days prior to the date of expiration of this Agreement. It is expressly understood that CITY and Fidelity Express may continue renewing this Agreement, however, only until the fifth anniversary of the signing of this original Agreement, at that time this Agreement is deemed terminated. 3. Termination 3.01 Termination for Convenience The CITY or Fidelity Express may terminate this Agreement for any reason by written notice provided to the other party, at least ninety (90) days before Page 2 of 11 the expiration of the one-year term or extension of term. Upon service of said notification the parties shall have no further obligation to each other under this Ageement other than to faithfully perform this Agreement until its expiration date, and to maintain the confidentiality of any proprietary information previously provided. Fidelity Express shall cease all operations required under this Agreement on the date of termination and return to CITY, as soon as possible any and all of the CITY'S property which it may be in possession of, on the date of termination. 3.02 Termination for D » t In any event, this Agreement may be terminated by CITY in the event Fidelity Express shall breach anymaterial obligation or material covenant hereunder, and such breach is not fully remedied within thirty (30) days after receipt of written notice thereof provided to Fidelity Express, setting forth the specific instances of default complained of and stating what actions must be done by FIDELITY EXPRESS to cure said default. In any event, this Agreement may be terminated by Fidelity Express in the event that the CITY shall breach any material obligation or material covenant hereunder, and such breach is not fully remedied within thirty (30) days after receipt of written notice thereof to CITY, setting forth the specific instances Of default complained of, and stating what actions must be done by CITY to cure said default. 3.03 Termination for Bankruntcv Either party hereto shall have the absolute right to terminate this Agreement upon the receipt of fifteen (15) days prior written notice in the event of a filing, by or on behalf of the other party, in any court, of a petition of bankruptcy, or insolvency or for a reorganization, or for an appointment of a receiver or trustee of all or part of that party's property. 4. Risk of Loss Fidelity Express shall bear all of the risk of loss for all CITY'S utility customer's payments that are received its A by gents, its retail outlets, or its subcontractor(s) that may be lost, stolen, destroyed, embezzled, or mysteriously disappear, for anyreason prior to the CITY' S bank accounts being properly, credited. Fidelity Express shall, in order to protect CITY'S interests, maintain insurance, at its sole cost, and in sufficient amounts and form to adequately and completely cover any such loss to the CITY. Page 3 of 11 In the event Fidelity Express shall suffer such a loss, it shall reconstruct the missing payments, and shall deposit in CITY'S bank account an amount of equal value, within seventy-two (72) hours of the time the loss was first discovered by CITY or by Fidelity Express. Timely Performance Both patties hereto acknowledge that all parts of this Agreement will be executed in a timely manner. Fidelity Express agrees and will communicate to its agents that its performance will be executed diligently and without interruption to insure that the CITY'S banking accounts will be credited within the parameters set forth in Article 1 hereof, 'Description of Services,. Notwithstanding that the CI f YS designated bank accounts have been credited within the parameters set forth in this Agreement, Fidelity Express bears the full responsibility for daily reconciliation and balancing of CITY'S utility customer accounts. Fidelity Express shall perform any transaction research necessary to reconcile the CITY'S utility customer accounts, which are out of balance due to the action or inaction of Fidelity Express within five (5) days of notification thereof by the CITY and at no cost to the CITY. 6. Force Mweure Neither party hereto shall. be held liable for any delay or Failm in the performance of any part of this Agreement from any cause beyond its control as a result of the folio God, acts of civil or mill~authoriti wings acts of military es, govemmentregulations,embergoes, epidemics, war, terrorist acts, riots, insuaections, earthquakes, nuclear accidents, floods, or volcanic action. 7. Payment Locations Fidelity Express operates an agency consisting of many retail locations and/or sells money orders and other services in retail locations, which among other things, collects utility bill payments on behalf of the CITY. A list ofthese payment outlet locations will be provided to the CITY prior to the commencement of this Agreement. CITY shall retain the right to approve the list of payment outlets to be used by its utility customers and may request Fidelity Express to add other locations, which may be mutually agreed upon between the parties. The listing of authorized agents will be kept confidential by both parties and shall not be released to any third party as it is proprietary information. X in CITY'S sole opinion, a certain payment outlet or group of outlets are not providing for efficient, convenient, courteous and secure processing ofpayments, the CITY shall so notify Fidelity Express in writing. If the problem is not resolved to CITY'S satisfaction within seven (7) calendar days, Fidelity Express shall desist in the collection of the CITY payments at that outlet or group of outlets, and deposit into the CITY'S account(s) all customer Page 4 of 11 Payments received to date, and modify its signs and promotional materials to indicate such change. 8. Independent Coftac+.or CITY agrees that in the performance of the work contemplated hereunder, Fidelity Express shall be an independent contractor and is not an employee of the CITY. Workers engaged by Fidelity Express regarding this Agreement shall at all times be considered the employees Fidelity Express, and not those of the CITY. That Fidelity of exclusive liability and shall hold the CITY harmless in the apayment and assume contributions, assessments and deductions made on behalf of Fidelit Express's Exporessfs any and all engaged in the performance of the work hereunder. employees Notwithstanding any existing principal/agency relationship between Fidelity Express and any other party, such as in store outlets or subcontractors, Fidelity Express agrees that it shall bear the sole responsibility for the performance of the work as specified hereunder and shall solely bear all risk of loss as specified in Article 4. Fidelity Express reserves the right to select and engage Fidelity Express locations. The MY Y also agrees not to meet or discuss any contractual relations that Fidelity Express has or might have with any Fidelity Express agent or any other third party. An exception to the foregoing is communication to any regulatory authorities. 9. Co ensation Fidelity Express agrees that CITY utility account customers who elect to transact their payment using the services of Fidelity Express or its agents, shall be charged a transaction fee by Fidelity Express not to exceed $1.50 for each payment they make at an authorized Fidelity Express aged. The above represents the sole and exclusive compensation payable to Fidelity Express. The CITY shall receive no part of the fee. 10. Check Processing Fidelity Express shall notify the CITY by facsimile or a mutually-agreed upon format of any customer payments by check received by agents which are dishonored (i.e. NSF checks). Following receipt and notification of NSF checks, Fidelity Express will recover the total amount of any returned NSF check principal by deducting the total amount of such NSF check principal from the next day's settlement deposit or by some other method that is acceptable to both CITY and Fidelity Express. However, appropriate back-up information must accompany any such deduction. In other words, Fidelity Express will provide returned check amounts with corresponding customer account numbers from the notice by facsimile or another mutuall g the amount deducted y agreed upon format, and Fidelity Express Page 5 of 11 shall mail such dishonored check or a-mail thereof and a separate United States mail, first class ~~Y thereof in the postage in Section 17 hereof. All Bank Service Fees will addressed to CITY at the address set forth presentment of return checks to the CITY on a mbe essed ono th and billed at a rate of $3. S 0 per again any settlement Y axis, and shall not be applied deposits. At this point in time the parties hereto specifically agree that Fidelity any CITY utility customer payments that are payable b may collect evaluate the progress of this method of y Personal check. The CITY shall continue this method of payment and communicate its desire to modify or payment 11. CITY'S File Transmission Renuirement If the CITY currently, or subsequently during the period of this Agreement Express to transmit requires Fidelity payment files over a virtual Private Network, data cloud, secure network, etc., in a manner which requires Fidelity Express to acquire additional hardware or software to communicate or transmit the files, the CITY agrees that any and all costs related to the purchase of the necessary software, licensing, fees, etc., as well to transmit the daily files, shall be bome solely by CITY. Otherwise, normal installation, set up and daily file transmissions are at no cost to the CITY. 12. Records 12.1 During the term of this Agreement and for a period of five Fidelity Express shall k ~ ~ Years thereafter, alternate secure location, maintain and preserve, at FidelityExprew's principal office or in n, in the form of hard copy, microfiche, microfilm, or electronic media full records of all transactions relating to the work Fidelity Express performed under this Agreement. Upon ten (10) days reasonable advance written notice, which notice shall specify the accounts, records and books requested for viewing, the CITY and its auditors shall be afforded adequate work space and shall have full access during normal business hours to inspect, audit and reproduce any and all such accounts, Express. records and books ofFidelity Agreements between Fidelity Express and any of its subcontractors or Agents shall contain a provision identical to that stated above. To assure the quality of services provided to the CITY, Fidelity Express shall maintain a routine audit of its subcontractors'/Agents' facilities throughout the performance of this Agreement, which audit may be time-to-time by the CITY upon ten days advance written notice. guested from 12.2 All books, records, documents and other evidence pertaining to this Agreement shall be made available at its home offices at Sulphur Springs, Texas. The cost ofsuch audit shall be borne by the CITY, provided that the end result of same is that there has been a one-half percent or less underpayment to the CITY. If there has been a greater than one-halfpercent underpayment to the CITY, the reasonable cost of the audit, including any travel costs of the CITY auditor(s), must be borne byFidelityExpress, which amount shall be due and Page 6 of 11 payable within fifteen (15) days after Fidelity Express' receipt of an itemized and documented invoice from the CTTY. Failure to comply with the Provisions of this Pa a r graph 12.2 shall be deemed a ragraph material breach of this Agreement: 12.3 CITY shall have the right, with reasonable Express or its for advance written notice to Fidelity payment locations, to enter upon the premises of its payment locations in order to observe the operation of the payment locations and to conduct such tests as it deems necessary and appropriate to verify the integrity of the payment Processin Furthermore, upon reasonable notice to Fidelig Procedures. four (24} hours, the CITY Express, which shall not be less than twetrty- shall have the right to observe Fidelity Express's operation in order to verify compliance with the terms and conditions of this Agreement. 13. Indemni{cation Fidelity Express shall indemnify and hold the CITY harmless from and against any and all loss, damage and liability and from any and all claims and demands, suits, actions and judgments for damages on account of or by reason of bodily injury, includin and all damages to pmpm ty incl ~ g ,and any -to-have - been -sustained-b Property of Cam, which may b e sustained or claimed of any subcontractor or ~anyP~n' including employees ofthe CITY, FidelityExpress and such agents, servants or employees and from all costs and expenses in any suits, demands, actions, claims or proceedings, whether groundless or not, which ma'be broom against CITY caused by or arising out o& or claimed to have been caused by or arisen out of or in connection with any work done or performed by Fidelity Express or Fidelity Express's failure to do or perform any work required to be done under the terms of this Agreement or the negligence of Fidelity Express, its agents, servants or employees in connection therewith, or Fidelity Express's failure to comply with any provisions or requirements of any laws, rules, regulations or permits of any duly constituted governmental authority, which are or may be imposed upon the MY or Fidefi obligations assumed by Fidelity Express hereunder, and Fidelity E Fidelity Fjqnvss or any cost and expense, defend any such suits, actions, at its own cost and or not which may be commenced against the ' c CITY is by or reason th thereof; ereowhether groundless therewith, and Fidelity Express shall pay and satisfy any and all judgments which may be recovered in any such suits, actions, demands, claims or proceedings, and defray or reimburse any and all expenses, including costs and attorney's fees, which may be incurred in or by reason of such suits, actions, demands, claims or Proceedings and keep the property of the CITY'S five and unencumbered of any charge or lien against it of any kind The taking out and maintenance of any insurance shall not relieve Fidelity Express from its obligation to defend and protect the CITY to the full extent and, for any failure so to do, to indemnify and save harmless the CITY, all as herein provided, without any limitation as to amount and regardless of the limits of insurance. The liability of Fidelity Express under this Agreement and its oblii s absolute and continuous and survives completion or g indemnify CITY hereunder, and by the termination offid Fideli lity Express's work acceptance and payment thereof. Neither the approval by CITY of the Page 7 of 11 methods of doing the work for under this Agreement nor the failure of CITY to call attention to improper or inadequate methods nor to require a change in methods nor the neglect of the CITY to direct Fidelity Express to take any particular precautions or to refrain from doing any particular thing shall excuse Fidelity Express in case of any such injury to person or damage to Property or release it from liability hereunder. 14. Confidentiality Any information provided to or received by Fidelity Express regarding COY utility customer accounts shall be held in the highest confidence and not disclosed to any third party without the express written permission of CITY. Additionally, any proprietary Fidelity Express to CITY shall not be disclosed b CITY to an Provided express written consen of Fideli by Y thirdParty without the tY Express, and each party agrees to treat such information with the same standardtof care that it uses with respect to its own prevent the informatioes disclosure to third parties. Proprietary information to 15. h ci 15.1 The CITY, at its option, may provide Fideli promotional material intended to inform CITY utility customers owith f Fidelity Eor other xpress locations, which are approved to handle its bill payments. The CITY shall in no way be responsible for promoting or advertising the services of Fidelity Express. 15.2 All advertising or promotional material utilized to promote use of Fidelity Express services to CITY customers shall be pre-approved by the CITY in writing prior to any use. 16. Compliance with Law In the performance of this Agreement, Fidelity Express agrees to comply local, City, County, State and Federal laws and regulations as they with any and all provided hereunder (including OSHA). Y apply to the services 17. Notices Any written notice required by the terns of this Agreement shall be deemed to be sufficiently given when sent by certified or registered mail, postage prepaid, to the respective parties as follows: City of Denton, Texas and City of Denton, Texas Customer Service Department City Manager 601 East Hickory Street Ste F 215 East McKinney Street Denton, Texas 76205 Denton, Texas 76201 Page 9 of 11 Attn: Ethan Cox - Manager Telephone (940) 349-7421 Fax: (940) 349-7411 Electronic: Ethan.Cox@cityofdenton.com Fidelity Express A Division of GSC Enterprises, Inc. P.O. Box 768 1301 Main Street Sulphur Springs, TX 75482 Attn: Ms. P. Odom - Division Manager Telephone: 800-621-8030 ext. 236 Fax: 877-812-2470 Electronic: podom@fidelityexpress.com The foregoing addresses the other party. and information may be changed at any time by written notices to . 18. Headings The headings in this Agreement are for convenience only and shall not be construed to define or limit any terms. 19. Waiver of Right No course of dealing or failure of either party to strictly enforce any ternis, right or condition of this Agreement shall be construed as a waiver of such team, right or condition. 20. Bng Nature and AM ent This Agreement shall be binding upon the parties and their successors and permitted assigns. The CITY reserves the right to assign this Agreement to any who affiliate company of Fidelity Express Va d subsidiary any , provided that the subsidiary ry or or affiliate of Fid idelity Express is of equal or greater creditworthiness, as reasonably determined by the CITY. 21. Governing Law/Jurisdiction This Agreement shall be construed under and governed by the laws of the State of Tex. The parties agree that any action arising out of this Agreement or breach thereof as shall as commenced in the court of appropriate jurisdiction that is located in Denton County, Texas and the parties hereby consent to the jurisdiction and venue of any such court. Page 9 of 11 22. Severabi ity In the event that one or more provisions contained in this Affeement to be unenforceable in any respect, such unenforceabili are for any reason held condition of this agreeme and this tY shall l not not affect any other term or agreement shall be construed as if the unenforceable provision was not contained in this agreement 23. Entire Agreement The parties acknowledge that they have read this Agreement and understand it and agree to be bound by its terms and conditions. Further, the parties agree that it is a complete and exclusive statement of the Agreement between them which supersedes all other proposals and prior agreements, oral or written, and any other communications between the parties relating to the subject matter of this Agreement. 'TWELITY EXPRESS" A ,GSC Enterprise, Inc. By. Print Title Date Q- U ATTEST: UCI TV CITY OF DENTON, TEXAS A Texas Municipal Corporation ~ By. Title://~~ Date: D2 l7 Page 10 of l l ATTEST: JENNIFER WALTERS, CITY SECRETARY Br. APP TO LEGAL FORM: ANITA BURGESS, Crff ATTORNEY ~ j Z N N uj u N N N w O U Q N O U Q N Q Ln LL. Z 5 N ^ Q U ~ Q N CL 0- N CL a U < Q O N Q O. Q' K Q LL- y U p J O a O 0 2 o p o ~ :E Q op Q ao a a :E Q CO Q a a J Q o COQ, o L 0 p ; ^ a CO ~E w M = ~ ~ a N r ~ O. w r ^ d CO ccoo ='L p = D N S 1-- N o a c~ o c! m o a i ccoo > - --L p = Q :E •QO C co M co N n •0 O M t - 00 Q 10 10 O ^ - '.t NV O CO N H o. m O. O .O ^ o. •O •O ^ a •O 10 o o. 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