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HomeMy WebLinkAboutRes 0519 - Banking Services with Peoples National BankCITY OF WASHINGTON RESOLUTION NO. 519 RESOLUTION AUTHORIZING MAYOR TO NEGOTIATE AN AGREEMENT WITH PEOPLES NATIONAL BANK OF WASHINGTON TO PROVIDE BANKING SERVICES WHEREAS, the City of Tukwila has need of a variety of banking services; and WHEREAS, Peoples National Bank of Washington maintains branch offices within the city limits of the City of Tukwila and is qualified to perform said banking services, NOW, THEREFORE, the City Council of the City of Tukwila, Washington does resolve as follows: The Mayor is authorized to negotiate a banking service agreement with Peoples National Bank of Washington, a national banking association, with terms and conditions identical to, or substantially similar to, the banking service agreement, a copy of which is attached hereto as Attachment 1. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA WASHINGTON, At a regular meeting thereof this 15th day of March 1976. Edgar D. Bauch Mayor Doris Phelps Deputy City Clerk BANKING SERVICE AGREEMENT THIS AGREEMENT, made this 16th day of March 1976, between the CITY OF TUKWILA, a municipal corporation of the State of Washington, hereinafter referred to as the "City and PEOPLES NATIONAL BANK OF WASHINGTON, a national banking association, maintaining branch offices within the city limits of the City of Tukwila, State of Washington, hereinafter referred to as "Peoples Bank" or "Bank Attachment 1 Page 1 of 6 W I T N E S S E T H: WHEREAS, by Resolution No. 519 the City Council of the City designated the Bank as one of the official depositories for City Funds; and WHEREAS, the City desires to establish a primary banking relationship with a bank to provide for daily banking services; and WHEREAS, Peoples Bank desires to provide the primary daily banking services to the City, NOW, THEREFORE, the parties to this Agreement, in consideration of the foregoing and the mutual covenants and stipulations set: out herein, agree as follows: SECTION ONE Primary Banking Relationship (A) 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. The City agrees that it will at all times maintain in each demand deposit account an amount at least equal to $0.00, and shall never permit the balance in any such account to fall below $0.00 to a negative or deficit balance, as reflected on the City Treasurer's Checking Account Ledger Balances. All checks shall bear the original or facsimile signature of the City Treasurer or his designated agent. (B) As partial consideration for the provision of banking services under this Agreement, it is agreed that if, in obtaining bids for interim financing, or for investments, including Repurchase Agreements and Certificates of Deposit, Peoples Bank submits a bid that is the low bid or is equal to that of other bidders as the most competitive bid in terms of providing the service promptly, without delay, and within the time needs of the City, as well as price, the City shall make the award of such investment or financing to Peoples Bank. SECTION TWO Provision of Banking Services Peoples Bank will provide the following services to the City without: charge: (A) Demand Deposit Checking Account Services. Peoples Barik will furnish the City with a primary demand deposit checking account. Disbursements from the account will be made by City Treasurer'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. Suffi- cient forms of payroll and claims warrants shall be furnished to the City without charge or the City shall Attachment 1 Page 2 2 Attachment 1 Page 3 3 be reimbursed for the cost of such forms ordered. (B) Receive and Hold City Warrants. Claims warrants,approximately three hundred (300) in number, and payroll warrants, approximately two hundred (200) in number, issued each month by the City will be received and honored in the normal course of business and held by Peoples Bank without being charged to the City's account, unless Peoples Bank has reasonable cause to believe that the City will be unable to redeem its warrants as scheduled; provided, however, Peoples Bank must give the City Treasurer reasonable notice of its intent to no longer accept City warrants as described herein. Orice each week, during the last banking day of each week, Peoples Bank will notify the City Treasurer of the amount held in warrants, and the City Treasurer will write a Treasurer's 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. Peoples Bank will provide the City with additional special purpose checking accounts as the need arises. (D) Competitive Bidding Interim Financing. Peoples Bank agrees to bid competitively, on a prompt basis, on all legally acceptable interim financing loans requested by the City. (E) Escrow Agent Services. Peoples 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. (F) Safekeeping Services. Peoples 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. Peoples 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. Peoples Bank will provide investment information assistance in the manage- ment 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 Agree- ments 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) Other Services. (1) Cashier's Checks and Federal Reserve Drafts will be provided as required by the City. (2) Month -end Statements will be provided on a prompt and current basis and Attachment 1 Page 4 4 at any other time upon request. SECTION THREE Term of Agreement Performance of the obligations under this Agreement shall commence the 1st day of July 1976, and continue for a period of two (2) years from said date. Thereafter, upon mutual agreement of the parties, the Agree- ment may be extended for two (2) additional terms of one (1) year each. SECTION FOUR Termination It is agreed that the City has the right to termin- ate this Agreement by giving written notice to the Bank at least sixty (60) days in advance of said termination. It is further agreed that willful or continuous negligent failure of the City of Tukwila to maintain its account at or above the minimum balance of $0.00 (that is to say that there shall never be a negative balance) shall be considered cause for termination of this Agreement by Peoples Bank. SECTION FIVE 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 Attachment 1 Page 5 5 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. Attachment 1 Page 6 By By 6 THE CITY OF TUKWILA d 4-aeeel Edgar D. Bauch Mayor PEOPLES NATIONAL BANK OF WASHINGTON Its Branch Manager By /.Y/ Its Vice President and Manager Public Funds Department