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HomeMy WebLinkAbout23-City Treasurer CITY OF SAN BERNaDINO - REQUEST FQ:t COUNCIL ACTION From: CRAIG A. GRAVES, City Treasurer Dept: OFFICE OF THE CITY TREASURER Date: May 23, 1988 Synopsis of Previous Council action: NONE Subject: . Resolut1on for Agreement for REG'U.-h~,"Rf9tFrelephone with National Payments Network ~,~ CJ H,\Y 2h ;': 10: u6 ~ ~ Recommended motion: Adopt the Resolution Contact person: eraiq A. Graves Supporting data attached: Yes Phone: ~1l4-S021 Ward: Sixth FUNDING REQUIREMENTS: Amount: None Source: Finance: Council Notes: 75-0262 Agenda Item No. ..:l ~'3 ~IT~ OF SAN BERN.DINO - REQUEST.... COUNCIL ACTION STAFF REPORT General Telephone has notified the City as of June 17, 1988 they will no longer take telephone payments directly from the City, through the Postal and Utility Payment Center. General Telephone has contracted all of its off-site collections to be handled by a group called National Payment Network. National Payment Network has contacted this Office about continuing to collect General Telephone payments at the Center for them. They will be providing equipment at the Postal Center that will greatly automate the operation. They will provide the equipment and training and the City will provide the site and the personnel to operate the payment recording equipment and process the payments. National Payments Network will pay the City 10~ a stub to process the payments. National Payment Network will also provide advertising about the location of the Payment Center to the general public. The automating of payments will provide better and faster service to the customers of General Telephone. The approval of the agreement will allow the City to continue to be an authorized agent to receive General Telephone payments and also to receive compensation for providing this service, We can continue to provide this service to the people and merchants of that area who have trouble commuting longer distances. 75-0264 o tmfi3 General Telephone Company of California 295 N, Sunrise Way Palm Springs, CA 92262-5295 81(F~ May 2, 1988 In Reply Refer To 6610 C5.2A West Highland Postal 2050 North Mt. Vernon San Bernardino, CA 92411 Dear Agent: General Telephone is introducing an automated system that will streamline the processing of telephone bills that are paid in person. The system will be installed and maintained by a company called National Payment Network (NPN). Because NPN will be responsible for the collection of all in-person payments, your contract as an authorized payment agent for us will be can- celled on June 17. 1988. NPN will be contacting you in the next few weeks regarding the establishment of an NPN payment terminal in your location. NPN will install a computerized system that may provide you with some unique business opportunities. NPN will provide the terminal (installed). maintenance and repairs. all supplies, and all training and support for your personnel. In addition. they provide all required documentation. a sign to publicize the service. and a toll-free telephone number for questions and service. NPN has the fu1l support of General Telephone. We encourage you to consider the benefits of this system in your place of business. Sincerely, ~~ Division Manager EM:nd . :- '. -' A pan of GTE Cor po, al,on v , , o NATIONAL, PAYMENTS NETWORK o .' California Agent Agreement o AGENT AGREEMENT o This Agreement. effective ss of this 1st day of MIY ,111 lB by and between , ('Agent') and Natlonaf Payment Partne"" a New York Partnership, doing business as National Payments Network, tnc. ('NPN'),lndlvldually and as agents for such utility companlesaa may becoma participants In and users of the NPN System, all,of such utility companies being and sometimes collectively referred to herein as .Partlclpan.... . WITNESSETH: " " Where.., subject to approval of regulatory agencies. NPN has Installed and may hereafter InetaH. electronic facilities at agreed-upon locations within the United States to provide utility payment servlcas for Partlclpan"; and Wherea.. other utility companies may become Partlcfpan" in and users of the NPN electronic facllltl~ and may elect In writlnll to become ParticIpants pursuant to the terms of this Agreement; and Wherea.. AlIent desires to accept (and be compensated for) payments made by Partlclpan'" customers; and Wh.,.... as sn.xpress condition for receipt of the compensation specified herein, Agent agre~ to accept payments in the manner specified herein; . Now. Therefore. in consideration of the mutual promises and covenants herein contained, it Is hereby agreed aa follows: 1. NPN agrees to provide electronic payment facilities for the purpose of trensacting Particlpan'" paymenta, Including facillti~ to permit interfacing of computer serviceS with NPN supplied computer equipment at the Agent', location listed In Schedule A annexed hereto. " _ 2. NPN has acquired the hardware and software, or the right to use the same, necessary for the operation of electronic fscilltles In the AlIenf' locations as set forth In Schedule A as may be supplemented or modified In the future with the consant of both parties hereto. Agent will operate the NPN System and related services during normal AlIent business hours. NPN repair servica personnel maintain the equipment and shall have access to the Agent locations upon presentation of proper Identification during normal Agent business hours. 3. The establishment and continuation of the electronic facilities herein referred to shall be In compliance with and subject to the laws of the United States and the State of New York and such other laws and regulations as may from time to time be applicable. It is understood and agreed that NPN shall be entitied to contract with other Psrtlclpants for the use of the electronic facilities Identified herein. 4. NPN will acquire and Install electronic transaction terminals In the AlIents' location(s) listed In Schedule A. Electronic transaction terminals will be located at cashier counters at which other store customer service functions are performed, Agent agrees to accept payments from cllstomers during normal business hours. Agentfurther agrees that all payments taken from customers of Partlclpsnts shall be entered into the NPN transaction terminals on the same day such payments are made to Agent by customers of the Partlclpan". 5, Agent will allowNPN to use Its existing telephone'system to uplosd transactions from Agent's terminal to NPN', central processing facility. 6. It Is agreed and understood that as a result of this Agreement, Agent will become an Authorized Agent for the purpose of collscting Participants' payments. 7. The procedures governing the acceptance of payment transactions are detailed in the attached 'Addendum A' and In the NPN Agent Guide to Operations manual. Such procedures may be amended irom time to time by NPN. 8. The settlement and payment procedures between NPN and Agent shall be as set forth in Schsdule Band Schedule C and in the NPN Agent Guide to Operations manual. Such procedures may be amended from time to time by NPN. 9. NPN shall provide the following services to 'Agent: (a) Train such necessary employees of Agent locations so as to Insurs that at least one trained smployee will be on duty at all times In such locations who is proficient In the use of the electronic transaction terminal and the NPN System. (b) Provide signage for each store serviced, to Inform the public of the availability of electronic processing of payments at Agent's iocations. (c) Provide the NPN Agent Guide to Operations msnual (and all applicable amendlTients to the manual) setting forth the procedures for the dally operations and routine maintenance of the electronic payment facilities. 10. Agent shall, at its sole expense: (a) Provide an adequate, convenient and readily accessible location in each store serviced by NPN for installation of electronic equipment (b) Provide adequate power and satisfactory outlets for equipment operation. (c) Provide such personnel as NPN and Agent shall deem reasonably necessary for efficient staffing and operation of the electronic payment services. (d) Provide for cash requirements to Insure adequate operating monies are available for customer change requirements. ' . 11. Agent shall be entitled toQnsactlon fees as setforth In Schedule c2,ent shall not be entitled to receive ~nYfee for services performed under this Agreement employing NPN's electronic facilities, either from NPN or from any of the Partlcl,.nts or customers of the PartIcIpants, except as specifically provided In this Agreement . , 12. Agent agrees to fully comply with the procedures of dally operation and maintenance as set forth In the NPN Agent Guld. to Operations manual. ' , 13. Agtntagrees to idemnlfyand hold NPN harmless,lncludlng attorn.ys' fees, against any and allloss8l,damag.. orclaims resulting from the Intentiona' or negligent acts or omissions of Ag.nt,lts officars and .mployees arising, In any manner whatsoever. from its conduct and operation of the payment facility under this Agreem.ntln addition, Ag.nt agrees to Idemnlfy and hold NPN harmleSllncludlng attorneys' fsea. against any and alIIOll88l, damsg.. or claims for personal injury or property damage resulting. In any manner whatsoever, fro,m Ag.nt's conduct and operation of the psyment facility under this agreement . 14. Ag.nt agrees to assume complete responsibility for any and all errors or defalcations by store P.8rsonnel. In addition, Agent acknowledges and agrees that It shall bear sole responsibility for any and all Ion.. occasioned by theft or robbery occurring althe Agent location listed In Schedule A. Agent shall be required to completely reimburse NPN for all monies lost or stolen from Agenrs locatlon(s) within thirty C3O) days of said loss or th.ft. 15. Agtnt und.rstands the confidentiality of payment Information and will make certain that payment Information Is not disclosed to any third party without NPN's knowledge and written cons.nt 16. The term ofthlsAgreement shall be for three (3) years from the date hereof, and shall automatically renew for 1 one year period upon the terms and conditions contained herein provided. however, that either party may terminate this Agreement upon six (6) months notice In writing of cancellation prior to the end of Iny such original or renewal ~~ .. , 17. Termlnstlon By NPN. This Agreement may be terminated by NPN upon the occurrence of any of the following events: . Ca) Failure by Agent to comply with the settlement procedures set forth In Schedule B and/or In the NPN Agent Guide to Operations manual; . ' Cb) Failure by Agent to comply with or adhere to any proviSions of this Agreement other than those identified In Paragraph 17 Ca) within ten (10) days after written notlca to Agent of default or non-adherence and demand that the default or non-adherence be cured; " Cc) In the event that Insolvency proceedings of any nature are commenced by or against Agent; Cd) Ensctment of legislation or determination by a Judicial or administrative authority having Jurisdiction over NPN rendering Its Involvement In electronic payment processing facilities pursuant to this Agreement Illegal; Ce) Termination of the Agreement between NPN and any of the ParticIpants; Cf) A demand by any of the PartIcipants that NPN terminate Agent's authority to accept any of the Participants' payments; and ., (g) violation of the provisions of Paragraph 15. 18. Termlnstlon by Agent. This Agreement may be terminated by Agent upon the occurrence of any of the following events: Ca) In the event that insolvency proceedings of any nature are commenced by or against NPN; (b) Enactment of legislation or determination by a judicial or administrative authority having jurisdiction over Psrtlclpent rendering Its involvement in electronic payment processing facilities pursuant to this Agreement illegal: or Cc) Failure to pay Agent fees in accordance with Schedule C, after Agent has provided NPN with written notice of said failure to pay and NPN has not made payment within twenty (20) days after Its receipt of said notice. 19. TermInation By Either Party. In addition to the proviSions of Paragraph 17 and 18, either party may terminate this agreement for any reason by providing (90) days written notice to the other party. 20. It Is understood that NPN will enter into agreements with other merchants identical or similar to those within the Agreement 21. In theevent of a sale or transfer ofthe business of the Agent, Agent agrees to utilize Its best efforts to require the purchaser and/or transferee to accept an assignment of this Agreement. However, this Agreement may not be assigned by Agent without the express written consent of NPN. 22. No failure to Insist upon strict performance of any term or condition ofthls Agreement by NPN shall operate ase waiver of such provision or operate to preclude the assertion of such provision at a later date or to prevent NPN from insisting upon strict performance of any term or condition 01 this Agreement. 23. NPN shIll not be held liable for any delay or failure in performance of any part of this Agreement from any caus. beyond Its control Including, but not limited to, acts of God. acts of civil or military authorities, government regulations, embargoes. epidemics, war. terrorist acts, riots. Insurrections. fire. explosions, flood, strikes. power blackouts. Inability to reasonably secure products or services of other persons or transportation facilities, including data communications transport. or acts or omissions of telecommunications common carriers. 24. This Agreement and attached Schedules A-C with Addendum A constitute the entire Agreement between the parties hereto and this Agreement may not be modified or.amended except in writing signed by the parties hereto. 25. This Agreement shall be binding upon and Inure to the benefit of the parties, and t!leir successors and assigns. 26. This Agreement shall be governed by and construed In accordance with the laws of the State of New York. 27. Any notice or request required pursuant to this Agreement shall be in writing, signed by the party giving it and be . , Settlement refers to the dO balancing process that each Agent Oducts to reconcile all utility payments processed that day. . , The settlement procedure between the Agent and the network shall be as follows: ' 1. (a) Each day the Agent will balance his/her terminal totals to the total amount due (or an amount paid If a partial payment Is made) onall the Agenrs copies of payment recelpta processed that day. ' (b) Terminal totals Include both the number of payments processed and their dollar value by type (I.e., cash or check). ' (c) Using the network dally balance sheet, the Agent will reconcile the terminal teitals to the Agent receipt totals. (d) The total amount due to the network will be depOSited Into the Agenrs corporate bank account by 12 noon on the nexi regular banking day followIng the day that the customer made the payment. (e) Agent hereby authorizes NPN to electronically debit the Agenrs corporate bank account (bank account numbar at bank) the first banking day Immediatelyfollowing Agent's receipt of Psrtlclpant's paymenta. The electronic debit will be for the entire amount of said payments, Including checks, cash, etc. If Agent's Bank will allow Agent to plsce a limit on the amount that NPN will be permitted to debit on anyone dsy, then the parties will attempt to mutually agree upon the amount of said upper limit. NPN agrees that It will only debit the amount that it Is entitled to receive from Agent on a particular day. If, for any reason, NPN debits at least twenty (2O'IIt) percent more than the amount that It Is entitled to debIt on a particular dsy, NPN will pay Agent fifteen (15%) percent annual Interest on the entire amount of the excess debit until said excess debit Is returned to AgenL Agent warrants that during the term of this Agreement It will maintain a corporate account with balance sufficient to cover the debit Identified above. 2. Additional details concerning the procedures that must ba followed by Agent In all respects are contained In the NPN Agent Guide to Operations manual. Said manual Is Incorporated herein by reference. 3. The 'TransacUon Day' Is the day the transaction was processed. The 'Balance Day' Is the day NPN reconciles totals to determine settlement figures. The 'Settlement Day'ls the day NPN moves the settlement monies between the Agent's account and the Partlclpsnt's account. The following Is the schedule utilized by NPN: Trsnsactlon Day Balance Day Settlement Day Monday Tuesday Tuesday Tuesday Wednesday Wednesday Wednesday Thursday Thursday Thursday Friday Friday Friday Monday Monday Saturday/Sunday Monday Monday Settlement Day may change to reflect bank holldsys. Merchant initial Date NPN Initial BIc::-/J Date 'fl-rkf NPN 7/87 . de'ivered either personally or bYJillllistered or certified mail, return recelp~quested addressed as follows: NaUonal Payment. NetwC\J V The Atrium ' BO Route 4 Paramus, N.J. 07652 Attention: Contracts Administrator.:. Agent Name: , lest Hi\#11cm Postal (San Bemardiro Ci~), .,; Agent Address: 1505 lest Hi\#11arxl Averue, San Beniai'diri:>, California 92411 Attention: lraig Q-aves (City of San Bemardiro T~): ' In WJtne.. Whereof. the parties herelo have caused these present to duly execute their authority as officera as of the day and year written below. ' Agent: lest Hi\#11arxl Postal (City of San Bemardiro) Address:1505 \est Highlarxl Averue,San Bemardiro, California 92411 Date: '4-4-83 By: " lraig G-aves (City of San Bemardiro Treasurer)- NaUoneIPa~entP.rtnera The Atrium BO Route 4 Paramus, N.J. 07652 Date: ~ 4-4-88 ~ By: I~ . O. ~ PetersaI SCHEDULE A Agent LocaUonl . . Agent shall be entilled to fe^" each utility payment processed on IIC'1IPN system. As additional services and participants ars added, addillon1Ptees may be added as Indicated below. PlYment will be disbursed to Agent by check no later than thirty (30) days afte'r the transacllon month. 1. General Telephone of California Payments Tranaa/llon Fee $ 0":7 2. Other Utilities (list) 3. Miscellaneous Fees (list) 4. Banking Allowance 5. TOTAL 6. Other Service Fees ADDENDUM A The following limitations govern the acceptance of payments through the NPN Network for any Participant 1. Payments may consist of: . (a) Personal checks made payable io ParticIpant (b) Cash (c) Travelers Checks (keyed In as personal checks) (d) Money Orders (keyed In as personal checks) (e) Bank Cards (from participating banks or networks) (f) Utility Gift Certificates (keyed In as personal checks) (g) Any combination of the above are acceptable but must be keyed In as two separate transactions I.e., one cash and one check. 2. Partial payments may be accepted. 3. If a personal check exceeds the amount due to the bill, the excess must be applied as future credit. Forexample, when a personal check for $56.00 Is presented as payment for a $40.00 utility bill, the enllre $56.00 must be applied to the bill. No change Is to be given back to the customer. Psrtlclpantandlor NPN will flccept ultimate responsibility for personal checks processed through the NPN Network as payment for their bills provided: : (a) The checks are made payable to the PartlclpanL (b) Checks have been validated by the terminal. (c) Full amount of check has been applied as payment. (d) Customer's account number Is written on the face of the check. Merchant initial Date NPN initial 6(<.1 Date Lfl t.{ ( ~ ~ NPN 7/87 .u. - . IMPACT ON TREASURY. . . BANK ACCOUNTS. Managing numerous bank accounts just for these payments. The cost in bank fees (or compensating balances), the staff time to reconcile the accounts. LOST MONEY. How long do your agents hold payments before sending them in? How long before all payments are cash ready to invest? EXQ. COST. Staff required to balance, pro- cess, and reconcile agent payments. Staff cost to find, train, and manage an agent network. CUSTOMER IMPACT. . , AGGRAVATION. "Why can't I pay my bill on weekends or after work when I have free time". INCONVENIENCE. "Why do I have to walt on line atthe bank...1 don't even have an account there". THE NPN SOLUTION TO IN".PERSON PAYMENTS NPN uses a proven, "turn key" approach to collecting and managing over-the-counter payments. NPN sets up a network of retail agents and equips each agent with an electronic payment terminsl to accurately capture cus- tomer payments. At day's end, NPN's nation- wide electronic network consolidates all payment sctlvlty and telEitransmlts them to your data center for processing. WHY IS NPN A BETTER APPROACH? SIMPLICITY. You have a single point of accountability for this important part of your business. With NPN you have only two sources of information and funds: mail and NPN. COST. NPN sets up and manages the agent network, furnishes the payment terminals, and provides the nationwide network to move your payments electronically. Your only cost is a transaction fee for each payment processed. THERE IS NO CAPITAL INVESTMENT REQUIRED. SPEED. NPN's electronic network teletransmits all customer payment data to your data center overnight. Now you can update customer records within 24 hours of payment... not2-10 days. . ACCURACY. NPN electronically edits and validates each payment as it enters the network. Errors are detected and corrected at the source. IN-PERSON P.Qv.ENTS ARE A HEADACHE THAT WON'T GO AWAY. CONSIDER THESE FACTS.. . Nationwide, 33% of households pay their bills . in person. Almost 57% of lower income families don't have checking accounts. They must pay in-person or buy expensive money orders. BANKS no longer want to be payment agents. Since deregulation, many major banks have said.. . "We will no longer accept polyments . . . has become too burdensome". (unprofitable) "Itinterferes with our offering high quality and efficient service to vslued customers." ( Lobby Congestion) When all costs are examined, in-person payments cost $0.42 - $0.67 on average, much more at public offices. Mail payments are much cheaper, but some people still Insist on paying in person and state regulators support them. OVERTHECOUNTERPAYMENTS IMPACT YOUR COMPANY CUSTOMER SERVICE. . . DELAYS. Lack of automation at agent locations means Customer Accounts cannot be updated for 2, 4 . . . 10 days. Service and collection staff must work with inaccurate data. COMPLAINTS. "I paid at the bank, but you still sent me a disconnect notice". . , 1 2 3 4, 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 o o RESOLUTION NO. RESOLUTION OF THE CITY OF SAN BERNARDINO AU~HORIZING THE EXECUTION OF AN AGREEMENT WITH NATIONAL PAYMENT PARTNERS DOING BUSINESS AS NATIONAL PAYMENTS NETWORK, INC., RELATING TO UTILITY PAYMENT SERVICES. BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THg CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Mayor is hereby authorized and directed to execute on behalf of said City an Agreement with National Payment Partners doing business as National Payments Network, Inc., relating to utility payment services, which Agreement is attached hereto marked Exhibit "A", and incorporated herein by reference as fully as though set forth at length. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof, held on the day of , 1988, by the following vote, to wit: AYES: Council Members NAYS: ABSENT: City Clerk 5-25-88 DAB:cm 1 . . ilESO: NPN/Cro - UTILITY PAYMENT SERVICO 1 2 The foregoing resolution is hereby approved this day of , 1988. 3 4 5 6 7 8" " 9 ' ~:~-l . J~-'-c.. 0/ City Attorney 10 11 Evlyn Wilcox, Mayor City of San Bernardino Approved as to form and legal content: 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 5-25-88 DAB: em , o o A G R E E MEN T (Utility Payment Services) THIS AGREEMENT, effective as of this ______ day of 19__, by and between the City of San Bernardino ("Agent") and National Payment Partners, a New York Partnership, doing business as National Payments Network, Inc. ("NPN"), individually and as agents for such utility companies as may become participants in and users of the NPN System, all of such utility companies being and sometimes collectively referred to herein as "Participants". WITNESSETH: WHEREAS, subject to approval of regulatory agencies, NPN has installed and may hereafter install, electronic facilities at agreed-upon locations within the United States to provide utility payment services for Participants; and WHEREAS, other utility companies may become Participants in and users of the NPN electronic facilities and may elect in writing to become Participants pursuant to the terms of this Agreement; and WHEREAS, Agent desires to accept (and be compensated for) payments made by Participants' customers; and WHEREAS, as an express condition for receipt of the compensation specified herein, Agent agrees to accept payments in the manner specified herein; NOW, THEREFORE, in consideration of the mutual promises 1 o o and covenants herein contained, it is hereby agreed as follows: 1. NPN agrees to provide electronic payment facilities for the purpose of transacting Participants' payments, including facilities to permit interfacing of computer services with NPN supplied computer equipment at the Agent's location listed in Schedule A annexed hereto. 2. NPN has acquired the hardware and software, or the right to use the same, necessary for the operation of electronic facilities in the Agent's locations as set forth in Schedule A as may be supplemented or modified in the future with the consent of both parties hereto. Agent will operate the NPN System and related services during normal Agent business hours. NPN repair service personnel maintain the equipment and shall have access to the Agent locations upon presentation of proper identification during normal Agent business hours. 3. The establishment and continuation of the electronic facilities herein referred to shall be in compliance with and subject to the laws of the United States and such other laws and regulations as may from time to time be applicable. It is understood and agreed that NPN shall be entitled to contract with other Participants for the use of the electronic facilities identified herein. 4. NPN will acquire and install electronic transaction terminals in the Agents' location(s) listed in Schedule A. 2 ...- . o o Electronic transaction terminals will be located at cashier counters at which other store customer service functions are performed. Agent agrees to accept payments from customers during normal business hours. Agent further agrees that all payments taken from customers of Participants shall be entered into the NPN transaction terminals on the same day such payments are made to Agent by customers of the Participants. 5. Agent will allow NPN to use its existing telephone system to upload transactions from Agent's terminal to NPN's central processing facility. 6. It is agreed and understood that as a result of this Agreement, Agent will become an Authorized Agent for the purpose of collecting Participants' payments. 7. The procedures governing the acceptance of payment transactions are detailed in the attached "Addendum A" and in the NPN Agent Guide to Operations manual. Such procedures may be amended from time to time by NPN. 8. The settlement and payment procedures between NPN and Agent shall be as set forth in Schedule B and Schedule C and in the NPN Agent Guide to Operations manual. Such procedures may be amended from time to time by NPN. 9. NPN shall provide the following services to Agent: (a) Train such necessary employees of Agent locations so as to insure that at least one trained employee will be on duty at all times in such locations who is proficient in the 3 . o o use of the electronic transaction terminal and the NPN System. (b) Provide signage for each store serviced, to inform the public of the availability of electronic processing of payments at Agent's locations. (c) Provide the NPN Agent Guide to Operations manual (and all applicable amendments to the manual) setting forth the procedures for the daily operations and routine maintenance of the electronic payment facilities. 10. Agent shall, at its sole expense: (a) Provide an adequate, convenient and readily accessible location in each store serviced by NPN for installation of electronic equipment. (b) Provide adequate power and satisfactory outlets for equipment operation. (c) Provide such personnel as NPN and Agent shall deem reasonably necessary for efficient staffing and operation of the electronic payment services. (d) Provide for cash requirements to insure adequate operating monies are available for customer change requirements. 11. Agent shall be entitled to transaction fees as set forth in Schedule C. Agent shall not be entitled to receive any fee for services performed under this Agreement employing NPN's electronic facilities, either from NPN or from any of the Participants or customers of the Participants, except as 4 o o specifically provided in this Agreement. 12. Agent agrees to fully comply with the procedures of daily operation and maintenance as set forth in the NPN Agent Guide to Operations manual. 13. Agent agrees to indemnify and hold NPN harmless, including attorneys' fees, against any and all losses, damages or claims resulting from the intentional or negligent acts or omissions of Agent, its officers and employees arising, in any manner whatsoever, from its conduct and operation of the payment facility under this Agreement. In addition, Agent agrees to indemnify and hold NPN harmless including attorneys' fees, against any and all losses, damages or claims for personal injury or property damage resulting, in any manner whatsoever, from Agent's conduct and operation of the payment facility under this agreement. 14. Agent agrees to assume complete responsibility for any and all errors or defalcations by store personnel. In addition, Agent acknowledges and agrees that it shall bear sole responsibility for any and all losses occasioned by theft or robbery occurring at the Agent location listed in Schedule A. Agent shall be required to completely reimburse NPN for all monies lost or stolen from Agent's location(s) within thirty (30) days of said loss or theft. 15. Agent understands the confidentiality of payment information and will make certain that payment information is not disclosed to any third party without NPN's knowledge and 5 o o written consent. 16. The term of this Agreement shall be for three (3) years from the date hereof, and shall automatically renew for a one-year period upon the terms and conditions contained herein provided, however, that either party may terminate this Agreement upon six (6) months' notice in writing 0 cancellation prior to the end of any such original or renewal term. 17. Termination By NPN. This Agreement may be terminated by NPN upon the occurrence of any of the following events: (a) Failure by Agent to comply with the settlement procedures set forth in Schedule B and/or in the NPN Agent Guide to Operations manual. (b) Failure by Agent to comply with or adhere to any provisions of this Agreement other than those identified in Paragraph 17(a) within ten (10) days after written notice to Agent of default or non-adherence and demand that the default or non-adherence be cured; (c) In the event that insolvency proceedings of any nature are commenced by or against Agent; (d) Enactment of legislation or determination by a judicial or administrative authority having jurisdiction over NPN rendering its involvement in electronic payment processing facilities pursuant to this Agreement illegal; (e) Termination of the Agreement between NPN and any 6 o o of the Participants; (f) A demand by any of the Participants that NPN terminate Agent's authority to accept any of the Participants' payments; and (g) Violation of the provisions of Paragraph 15. 18. Termination by Agent. This Agreement may be terminated by Agent upon the occurrence of any of the following events: (a) In the event that insolvency proceedings of any nature are commenced by or against NPN; (b) Enactment of legislation or determination by a judicial or administrative authority having jurisdiction over Participant rendering its involvement in electronic payment processing facilities pursuant to this Agreement illegal; or (c) Failure to pay Agent fees in accordance with Schedule C, after Agent has provided NPN with written notice of said failure to pay and NPN has not made payment within twenty (20) days after its receipt of said notice. 19. Termination By Either Party. In addition to the provisions of Paragraph 17 and 18, either party may terminate this Agreement for any reason by providing ninety (90) days' written notice to the other party. 20. It is understood that NPN will enter into agreements with other merchants identical or similar to those within the Agreement. 21. In the event of a sale or transfer of the business 7 o o of the Agent, Agent agrees to utilize its best efforts to require the purchaser and/or transferee to accept an assignment of this Agreement. However, this Agreement may not be assigned by Agent without the express written consent of NPN. 22. No failure to insist upon strict performance of any term or condition of this Agreement by NPN shall operate as a waiver of such provision or operate to preclude the assertion of such provision at a later date or to prevent NPN from insisting upon strict performance of any term or condition of this Agreement. 23. NPN shall not be held liable for any delay or failure in performance of any part of this Agreement from any cause beyond its control including, but not limited to, acts of God, acts of civil or military authorities, government regulations, embargoes, epidemics, war, terrorist acts, riots, insurrections, fire, explosions, flood, strikes, power blackouts, inability to reasonably secure products or services of other persons or transportation facilities, including data communications transport, or acts or omissions of telecommunications common carriers. 24. This Agreement and attached Schedules A-C with Addendum A constitute the entire Agreement between the parties hereto and this Agreement may not be modified or amended except in writing signed by the parties hereto. 25. This Agreement shall be binding upon and inure to 8 o 0 the benefit of the parties, and their successors and assigns. 26. This Agreement shall be governed by and construed in accordance with the laws of the state of California. 27. Both parties agree and commit that in the performance of this Agreement they shall not discriminate in employment or service or in any other respect on the basis of race, color, creed, religion, sex, national origin, or physical handicap. 28. Any notice or request required pursuant to this Agreement shall be in writing signed by the party giving it and be delivered either personally or by registered or certified mail, return receipt requested, addressed as follows: City/Agent NPN City of San Bernardino 300 North D street San Bernardino, CA 92418 Attn: City Treasurer National Payments Network The Atrium 80 Route 4 Paramus, New Jersey 07652 Attn: Contracts Admin. IN WITNESS WHEREOF, the parties hereto have caused these present to duly execute their authority as officers as of the day and year written below. CITY OF SAN BERNARDINO ATTEST: By City Clerk Evlyn Wilcox, Mayor 9 " . AGREEMENT: uc:rity Payment Services Approved as to form and legal content: 1\ ,~ 10 o NATIONAL PAYMENTS NETWORK By Title