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HomeMy WebLinkAboutRes 0968 - Banking Services with Peoples Bank RESOLUTION NO. 968 A RESOLUTION OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE MAYOR TO EXTEND A BANKING SERVICES AGREEMENT WITH PEOPLES BANK. WHEREAS, the City entered into a banking services agreement with Peoples Bank, which expires on July 31, 1985, and WHEREAS, The Finance Director recommends that the City of Tukwila renegotiate and extend an agreement with Peoples Bank for primary banking services for the period August 1, 1985 thru December 31, 1985, and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO RESOLVE AS FOLLOWS: The Mayor is hereby authorized to enter into an agreement for primary banking services with Peoples Bank through December 31, 1985, at which time new bids will be reviewed on a cost -of- service basis for a two -year period. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a regular meeting thereof this S day of I�Z 1985. APPROVED: C u 0J U P N T, EDGAR D. B AUCTT ATTEST /.AUTHENTICATED: CITY CLERK, MAXINE ANDERSON APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: By G�� r FILED WITH THE CITY CL`4: J�aa 8s PASSED BY THE CITY COUNCIL: RESOLUTION NO. F4� 8 BANKING SERVICE AGREEMENT THIS AGREEMENT, made this 1st day of August 1985 between the City of Tukwila, a municipal corporation of the State of Washington, hereinafter referred to as the "City and Peoples Bank, a national banking association maintaining branch offices within the city limits of the City of Tukwila, State of Washington, hereinafter referred to as the "Bank SECTION ONE Primary Banking Relationship The City shall establish its primary daily banking relationship with the Bank and shall maintain its primary demand deposit account (sometimes referred to herein as "checking account with the Bank. All checks shall bear the original or facsimile signature of the Finance Director or his desig- nated agent. SECTION TWO Provision of Banking Services Bank will rovide the following services to the City: P 9 (A) Demand Deposit Checking Account Services. Bank will furnish the City with a primary demand deposit checking account. Disbursements from the account will be made by Finance Director's checks, which are written (among other purposes) to redeem City warrants, satisfy the City's debt service, make refunds, purchase investments and redeem deposited N.S.F. checks. Payroll and claims warrants, checks and deposit slips shall be provided to the City for the cost of such forms ordered. (B) Receive and Hold City Warrants. Claims warrants and payroll warrants, issued by the City will be received and honored in the normal course of business and will be held by the "Bank Once each week, during the last banking day of each week, the "Bank" will notify the Finance Director of the amount held in warrants, and the Finance Director will write a check on the City's checking account to redeem the warrants, and deliver said check to the Bank on the same business day on which notification is made. (C) Additional Accounts. Bank will provide the City with additional special purpose checking accounts as the need arises. (D) Competitive Bidding Interim Financing. The "Bank" agrees to bid competitively, on a prompt basis, on all legally acceptable interim financing loans requested by the City. (E) Escrow Agent Services. The "Bank" will provide the City with needed escrow agent services to administer and maintain retainage deposits from contractors who contract for public works' projects, in accordance with RCW 60.28.010, et seq., or as such statutory provisions may be amended during the term of this agreement. BSA Page Two (F) Safekeeping Services. The "Bank" will provide safekeeping facilities and services for all securities which the City purchases through the Bank. In doing so, the Bank will comply with all state and federal regulations regarding safekeeping of City securities. (G) Night Depository Services. The "Bank" will provide its standard night depository service, including provision of two (2) bags for deposit of City funds collected after normal banking hours. (H) Investment Assistance. The "Bank" will provide investment information assistance in the management of the City's investment portfolio as permitted by pertinent federal and state laws and regulations. The Bank will make available to the City, Repurchase Agreements and Certificates of Deposit, and will purchase Government and Federal Agency Securities for the City upon request. Only collected funds shall be used for investment. (I) Safe Deposit Box. The "Bank" will provide safe deposit facilities to the City as required. (J) Other Services. (1) Cashier's Checks, Federal Reserve Drafts and Travelers Checks will be provided as required by the City. (2) Month -end Statements will be provided on a prompt and current basis and at any other time upon request. SECTION THREE Term of Agreement Performance of the obligations under this Agreement shall commence the 1st day of August 1985, and continue until the 31st day of December, 1985. SECTION FOUR Cost of Services Attachment A "Cost of Services Basis 8/01/85 12/31/85" is the method by which the "Bank" will be compensated. SECTION FIVE Termination It is agreed that the City has the right to terminate this Agreement by giving written notice to the Bank at least sixty (60) days in advance of said termination for nonperformance, inadequate or poor performance or service, reports, etc. BSA Page Three SECTION SIX Entire Agreement This instrument contains the entire agreement between the parties, and no statement, promise or inducement made by either party or agent of either party that is not contained in this written contract shall be valid or binding and this contract may not be enlarged, modified or altered, except in writing signed by the parties and endorsed hereon. IN WITNESS WHEREOF, the parties hereto have executed this Agreement at Tukwila, Washington the day and year first above written. THE CITY OF TUKWILA G R N US YOR By By Its ATTACHMENT A City of Tukwila Banking Services Bid Cost of Services Basis 3/1/85 12/31/85 Service Item Price 1. Checking Account Services Checks Posted .11 each Deposits Posted .13 each Items Deposited Peoples Bank .035 each Local Clearing House Banks .040 each Local Federal Reserve Bank .055 each Other Federal Reserve Banks .070 each Correspondent Banks .080 each Monthly Account Maintenance 5.00 each NSF Items Processed 1.00 each Stop Payments Processed 8.00 each Occasional Ledger Balance Overdraft 10.00 each Occasional Use of Uncollected Funds Avg. Monthly 91 -Day T -Bill Rate 2. Warrant Account Services: Warrants Processed .12 each Warrant Float Charge Avg. Monthly 91 -day T -Bill Rate Warrant Information on Computer Tape 3.00 /Tape 3. Wire Transfer Services: Wire Transfer In $5.00 each Wire Transfer Out 8.00 each This service is available through direct terminal access so that wires can be initiated and wire information received via computer terminal located in the City's office. 4. Daily Balance Reporting Services Basic Service includes Daily Ledger Balance, Daily Collected Balance, Average Daily Balance, One and Two Day Float Totals, Total Debits and Total Credits Basic Service Via Voice Communication /Account $60.00 /month Basic Service Via Terminal /Account $90.00 /month C2/0503/A.1 'Attachment A -2 When Terminal Access is used, additional account detail is available $.20 /item. 5. Security Clearance Services: Receipt or Delivery of: Instruments issued by Peoples (Repo's, C.D.'s, NC etc.) Municipal Bonds (Local) $15.00 each Security Clearance at New York Agent $30.00 each Includes: D.T.0 eligible transactions Municipals, Corporates, U.S. Agencies and Money Market Items U.S. Government transactions eligible through New York FRB only Through Federal Reserve Bank, Seattle Branch: Receipt /Purchase U.S. Government Securities $10.00 each Delivery /Sale U.S. Government Securities $12.00 each Drafts for Collection (all type of securities) $30.00 each 6. Security Safekeeping Registration Services: Safekeeping: (Instruments issued by Peoples NC) In /Out. $10.00 each Monthly Account Maintenance -per receipt number 1.00 each Credit Advice 5.00 each Cashiers Check Issued 2.50 each Security Report of Holdings: One report /month NC Additional reports $10.00 each Security Registration: Municipals $20.00 each U.S. Government Physical (Registered) $30.00 each U.S. Government Physical (Bearer w /coupons) $30.00 each 7. Night Depository Services (including 6 bags) 3.50 /month 8. Check and Warrant Printing Services: Provide up to 30,000 printed warrants At Actual Cost Provide up to 2,000 printed checks w /deposit slips (Based on Printer's Invoice) C2/0503/A.2 'Attachment A -3 9. Official Check Services: Cashiers Checks S 2.50 each Federal Reserve Drafts 2.50 each 10. Escrow Agent Services: NC EARNINGS CREDIT ON CITY'S BALANCES Peoples proposes to accumulate an earning credit on the City's daily collected checking account balance after Federal Reserve requirements at a rate equal to the monthly average of the 91 day T -Bill rate (8.553% for April 1985). This rate is calculated by averaging the actual results of the T -Bill auctions occuring during the month. BANK COMPENSATION After each month end, Peoples will provide the City with an account analysis statement. This statement would list all service costs and would calculate the earnings credit on checking account balances. The earnings credit would then be applied to offset service costs. Using this method, if the service costs during the month exceeded the earnings credit, the City would be billed for the difference. If the City did not wish to be billed, then balances could be increased the following month to pay for the previous month's service cost overage. If the earnings credit during the month exceeded the service costs, the bank would apply the excess earned credit toward the service costs the following month. C2/0503/A.3 ALTERNATE PROPOSALS RECEIVED JUNE, 1985 (1) Peoples Sea First Rainier TYPICAL MONTH Deposited Items (1034) 36 41 52 Deposits Posted 38) 5 17 5 Warrants Posted 586) 70 88 70 Checks Posted 26) 3 2 3 Wires Out 6) 48 39 48 162 187 178 (1) Does not include fixed type costs which are the same for all three banks. The largest cost item will be paying for uncollected funds i.e., the warrant and checks deposited float. The City will receive credit for deposited balances on -hand as a reduction of this cost.