Loading...
2021-119 Schedule A Internal Ontario Southwest Region 275 Dundas Street, 9th Floor London, ON N6C 3L1 Telephone No.: (519) 663-5724 Email: robin.foley@td.com October 12, 2021 The Corporation of the Town of Tillsonburg 200 Broadway St. 2nd Fl Tillsonburg, ON N4G 5A7 Attention: Sheena Pawliwec, Director of Finance Thank you for the opportunity to present a renewal agreement of the Business Banking agreement to the Corporation of the Town of Tillsonburg. We are committed to continue to work with you to provide a high level of service for your banking and financial needs. As you will find in our proposal below, we have outlined the existing services, their transaction volumes and associated published prices. We have modified the pricing of Cash Management services for Tillsonburg Hydro's BPRS, which will result in an estimated $1,851.00 in new savings per year for you. Our decision to amend these fees was based on an extensive review of your banking business and the value of our existing relationship. TERMS OF COMMITMENT Pricing is based on information from past business and activity volumes. Should business and/or activity volumes differ by 10% +/- from historical volumes or there are significant changes in the market, we reserve the right to reopen discussions with you with a view to negotiating alternative compensation arrangements. Any pricing changes would be reviewed and mutually agreed to by the Corporation of the Town of Tillsonburg and TD Bank Financial Group (TD) prior to their implementation. The products and services outlined in this proposal comply with the Bank Act of Canada and the Canadian Payments Association and are subject to change from time to time Either party may terminate the arrangements outlined herein by providing proper written notice to the other party upon 180 days written notice. Internal SUMMARY OF CASH MANAGEMENT SERVICES AND FEES Cash Management services currently used by the Corporation of the Town of Tillsonburg. (volumes based on August 2021 transactions volumes) Product Service Description Published Pricing Volumes (Aug '21) Tillsonburg's Pricing Monthly Savings over Published Price (Aug '21) Balance Reporting View all accounts/companies with one logon. Customize each users' access rights to only those accounts they need access to. $15/mth/account 16 accounts $0/mth/account $240 Payments & Transfers Make bill payments and transfers between accounts/companies. Restricted Bill payments – only those payees signed off by appropriate signing officers can be lodged to this service (fraud prevention). $2/transfer $1/bill payment $8/stop payment 10 transfers 6 stop payments $0/transfer $0/bill payment $0/stop payment $68 Bill Payment Receiver Service Allows customers (rate payers) to pay online at any financial institution. Gives Merchants the ability to consolidate the delivery of their bill payment details through a single channel – File Transfer on Web Business Banking $75/mth/mailbox $0.05/payment 2 Mailboxes (1 Township + 1 Hydro) 2,052 payment – Town 3,475 payment – Hydro Township $0/mth/mailbox $0/payment Hydro (Current) $50/mth/mailbox $0.03/payment Hydro (NEW) $0/mth/mailbox $0/payment $266 Electronic Funds Transfer Send payments electronically to vendors in lieu of cheques. Debits tax payors electronically for amounts owing. $50/mth/org id $10/file $0.10/item $2.50/NSF return 3 Org ids 7 files 4,987 items 20 NSF returns $0/mth/org id $0/file $0/item $0/NSF return $768 Internal Fraud prevention: DUAL authorization on outgoing payments in place and reducing paper cheques Remote Deposit Capture Scan and deposit incoming cheques right at your desk. 1 scanning location. Credits into your account with 2-4 hours. $35/mth/scanner $10/mth/addt'l acct $1/deposit $0.22/item 1 scanner 1 account 24 deposits 1,041 items $35/mth (inclusive) $249 Wire Payment Service Send wires anywhere in the world Fraud prevention: Dual authorization in place $0/mth $20/wire TD - TD $40/ CAN/USA $50/International no activity $0/mth $20/wire TD - TD $40/ CAN/USA $50/International Cheque Imagine Archive Monthly DVD Rom delivered which includes images of all cleared cheques $25/mth $0.02/image 1 DVD 111 images $0/mth $0 /image $27 Recommended New Service Cheque Fraud Protection Service Our Cheque Fraud Protection Service is an effective fraud protection tool that provides you with a Web-based facility for managing cheques clearing through your Canadian accounts. Recommended Service Type: Positive Pay with Payee Match (See appendix for full details) $35/mth $0.90/item $5/file Ancillary fees(see attached) Note: $12.50/exception fee 1/account 110 cheques 4 files $35/mth $0.45/item $5/file (NEW estimated monthly fee) $104.95 $49 Total Monthly Fees Paid Total Monthly Fee Saved Totals $139.95 $1,667 Internal BANKING SERVICES AGREEMENT Below is a recap of the existing agreement, with respect to Cash Management Services, Account Fees, Interest Compensation and Loan Fees Cash Management Services Cash Management Services are considered separate and contractual in nature and are subject to pricing that is independent of the above-mentioned compensation arrangements. Based on your historical activity volumes, the above pricing amendments represent a savings of $20,004 per year, over published pricing, for the Corporation of the Town of Tillsonburg. Account Fees (unchanged) Monthly Account Flat Fees (all accounts) Account Flat Fee of $0.00. This fee was determined based on average monthly volumes over the past 12 months, represent a savings of $14,150 per year, over published pricing. (see chart below for transaction volumes) Interest Compensation Interest will be calculated and paid monthly on the average daily credit balances maintained, at the following rates: • Canadian Account Balances: TD Prime Rate – 1.90% (Prime rate as of Oct 5th, 2021 is 2.45%) Term Investments - Recommended Indicative term rates as of Oct 5th follows: 1m - 0.36% 6m - 0.48% 2m - 0.43% 9m - 0.53% 3m - 0.45% 12m - 0.58% 4m - 0.46% Internal AVERAGE MONTHLY CANADIAN DOLLAR ACCOUNT ACTIVITY CREDITS Monthly Average Published Price Charge To Customer In-Branch Deposits # of deposits 51 $1.25 $63.75 # of RDC deposits 22 $1.25 $27.50 # of CTS deposits 0 $1.25 $0.00 # of items within deposits 702 $0.22 $154.44 $ value of cash & coin deposited $44,929.10 $2.50 per $1,000 $112.32 # of Automated Credits 145 $1.25 $181.25 DEBITS Monthly Average Charge To Customer # of Cheques issued 106 $1.25 $132.50 # of Automated Debits 22 $1.25 $27.50 SUNDRY Monthly Average Published Price Charge To Customer # of month end statements 2 $5.00 $10.00 # of charge backs 1 $5.00 $5.00 # of ATS Transfers 21 $0.95 $19.95 SUNDRY Monthly Average Published Price Charge To Customer Mirror Accounting - # Operating Accts 5 $30.00 $150.00 Mirror Accounting - # Concentration Accts 1 $70.00 $70.00 Interest Allocation Service - # Accts 5 $45.00 $225.00 $1,179.21 $0.00 Volume & Pricing Recap SUMMARY - CAD Accounts CURRENT ACCOUNT ACTIVITY TOTAL CURRENT ACCOUNT ACTIVITY Published Price Proposed Flat Fee Loan Fees The Corporation of the Town of Tillsonburg Operating Line – Demand Facility - $4,000,000 TD Prime less 1.00% TD Prime as at October 12, 2021 2.45% Tillsonburg Hydro Capital Expenditure Facility - $5,500,000 authorized* ($5,000,000 drawn) TD Prime less 0.65% Letter of Credit - $956,406 currently issued 0.75% per annum TD Prime as at October 12, 2021 2.45% * Increase of $500K authorized September 14 th, 2021 with amending credit agreement to be issued. - There are no monthly admin fees or annual renewal fees associated with either borrower. Internal DEDICATED SERVICE TEAM TD Commercial Banking has a dedicated team of 5 members that is familiar with your portfolio including Account Manager, Customer Service Officers and Manager of Cash Management, along with our District Vice President. If there are changes within our team, we hope you will find any transition seamless. TERMS OF COMMITMENT Pricing is based on information from past business and activity volumes. Should business and/or activity volumes differ by I 0% +/-from historical volumes or there are significant changes in the market, we reserve the right to reopen discussions with you with a view to negotiating alternative compensation arrangements. Any pricing changes would be reviewed and mutually agreed to by the Corporation of the Town of Tillsonburg and TD Bank Financial Group (TD) prior to their implementation. The products and services outlined in this proposal comply with the Bank Act of Canada and the Canadian Payments Association and are subject to change from time to time Either party may terminate the arrangements outlined herein by providing proper written notice to the other party upon 180 days written notice. If the terms and conditions as detailed herein to renew our Banking Services Agreement are acceptable to the Corporation of the Town of Tillsonburg, please confirm your acceptance by signing below. Upon receipt of this executed agreement, we will program the new fees proposed above. We appreciate the opportunity you have afforded us. If you have any questions, please do not hesitate to call Robin Foley at (519) 663-5724. Thank you for your business. ~(ir!-- Robin Foley, Manager Cash Management (dated Nov I 5th,202 I) TO THE TORONTO-DOMINION BANK The Corporatio e Town ofTillsonburg hereby accepts the foregoing offer this · d;Y~O~c.,\J~, 2021. The Borrower confirms that, except as may be set e crf!cfft facilities detailed herein shall not be used by or on behalf of any third party.