HomeMy WebLinkAboutMINUTES - 05181993 - 1.56 TO: BOARD OF SUPERVISORS Contra
FROM: ALFRED P. LOMELI, Costa
TREASURER-TAX COLLECTOR
County
DATE: MAY 18, 1993 C�rTq COUN�`Pv
SUBJECT: INDEMNIFICATION AGREEMENT WITH WELLS FARGO BANK
SPECIFIC REQUESTS)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDED ACTION:
Authorize Alfred P. Lomeli, Treasurer-Tax Collector, to sign an
indemnification agreement with. Wells Fargo Bank on the County' s
checking accounts for the interim period of time until full
reconcilement with the bank is initiated and/or the accounts are
closed.
FINANCIAL IMPACT:
Presently none. If additional fraudulent checks are circulated, the
County will assume the financial liability., Since circulation is an
unknown factor, the impact cannot be determined..
REASONS FOR RECOMMENDATION/BACKGROUND:
Recently several fraudulent checks were cashed against a Contra Costa
County checking account. The last such check was processed on
May 4, 1993 . Since then, no other checks have been circulated.
Investigation of the case by the Bank in cooperation with authorities
is in progress.
The purpose of the indemnification is to assure Wells Fargo Bank that
they will not be liable for further fraudulent checks in so far as the
County prefers not to close the account as requested by Wells Fargo. ,
Wells Fargo' s procedures require the closing of an account upon which
fraudulent warrants are drawn.. This is impractical for the County at.
this time. Therefore, the indemnification of the Bank is in the best
interest of the Bank and County.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE S:
ACTION OF BOARD ON 3 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS N THE DATE SHOWN.
Media Contact: Alfred P. Lomeli
CC: CAO 646-4125 ATTESTED �/I� - 3
Auditor PHIL BATCHEL ,CLERK OF THE BOARD OF
County Counsel SUPERVISORS AND COUNTY ADMINISTRATOR
Risk Management
Treasurer-Tax Collector
(�
M382 (10/88) BY DEPUTY
f
CONSEQUENCES OF NEGATIVE ACTION:
Tf indemnification is not approved., we will be forced to close the
checking accounts and open new ones. This action will require time .
to change the check formats as well as costs associated with the
destruction of old forms and the printing of new ones. Furthermore,
this action will require involving the schools. and special districts
in addition to county departments. Approximately 70 different
formats of checks are currently in use. A stock. of one or more
years is usually maintained for each. Current cost of inventory
could run in the tens of thousands of dollars.