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HomeMy WebLinkAbout95-14• r 95-14 RESOLUTION Approving Community National Bank as Town Depository and Authorizing the Tawn Manager to F-xecute a Banking Services Agreement WHERF,,.AS, the Town administration determined that it was in the best interest of the Town to seek proposals from area banks for the handling of Town checking accounts and the provision of daily banking services to the Town; and WHEREAS, Premier Bank, Signet Bank, NationsBank, and Community National Bank responded with proposals as to the terms and conditions upon which they would provide various services to the Mown; and WHEREAS, upon review of these proposals, the Town administration and Finance Committee of the Town Council have recommended that the proposal of Community National Bank be accepted with negotiated changes. Therefore, be It Resolved that the proposal of Community Nationai Bank received in March, 1995, with such changes as are negotiated between the Town Administration and said Bank, Is aocepted by the Town Council. Be it further Resolved that the Town Manager is authorized and directed to execute an agreement substantially embodying the terms of said proposal and amendments and subject to the provision that said Institution be approved by the Auditor of Pubiic Accounts of the Commonwealth of Virginia and with such other provisions as the Town Manager and Finance birector deem prudent to protect the interest of the citizens of the Town of Pulaski. Be it further Resolved that the following individuals are authorized to sign checks and other financial Instruments on behalf of the Town, but that two signatures are required: Town Finance director, Town Manager, Assistant Town Manager, Mayor. ~. This Resolution is effective for adoption end Is adapted on this 20th day of .funs, 1995 by recorded vote as follows: John A. Johnston _ AYe Roy H. D'Ardenne, Jr. Ave . John W. Stone ~ W. Edgar Hale Absent Bettye H. Steger Absent Alma H. Holston Ave W. H. Schrader Jr. Ye Elbert G. clack, Jr. Aye By: Andrew L. Graham, Mayor ATT T: ~, Ruth .Harrell THIS BANKING SERVICES AGREEMENT is made and entered into on June 29, 1995, • by and between TOWN OF PULASKI, Virginia (the Town), a municipal corporation, and COMMUNITY NATIONAL BANK (CNB), a national banking association, doing business in Pulaski, Virginia. 1. Pur ose. The purpose of this Agreement is to set forth the terms and conditions upon which CNB will provide specified banking services to the Town and to set forth the terms and conditions upon which the Town will utilize CNB exclusively for designated services. 2. Term. The term of this Agreement will be for an initial one (1) year period. The Agreement will renew automatically for two successive periods for one year each, unless sooner terminated as set forth below. The term of this agreement will commence as of the 1st day of July, 1995. 3. CNB Status. CNB warrants to the Town that it is an approved depository for Town funds in accordance with regulations promulgated by the Auditor of Public Accounts for the Commonwealth of Virginia and all other applicable banking laws and regulations. CNB agrees that it will immediately notify'the Town of any change in said status or of any other material information pertaining to the safety and security of Town deposits. 4. Insurance. All accounts of the Town are to be either fully insured or fully collateralized in a manner approved under state banking regulations for the deposit of • public funds. 5. Basic Account Setug. CNB agrees to set up the following types of .accounts for the Town: A. Deposit Accounts. The Town agrees to maintain one or more deposit accounts at CNB wherein all Town tax revenues, water fund revenues, sewer fund revenues, and miscellaneous general fund revenues are deposited. The Town may, but it is not required, to deposit UDAG funds repayments to such an account. All such accounts shall be Now accounts, and shall bear interest at the federal funds rate, less one-quarter percent, for all accounts once the one hundred thousand dollar ($100,000) noninterest-bearing threshold is reached. B. Checking Account Facility. CNB shall provide a zero balance concentration account upon which the Town shall draw its checks. If said checking account falls below a minimum balance to be determined from time to time by the Town Finance Director or Town Manager, funds in said account will be replenished from the main deposit account of the Town. As an example, at a federal funds rate less one-quarter percent of 5.58%, if the Town maintains an average daily balance for any month of at least two hundred thousand dollars ($200,000.00), it will receive a four hundred sixty- five dollar ($465.00), credit to said account for that month. • CNB will not charge any fees for an account in which there is maintained a one hundred thousand dollar ($100,000.00) compensating balance. Banking Services Agreement Page 1 Of 4 C. Investment Options. CNB agrees that the Town may purchase Certificates of • Deposit and other investment instruments from CNB upon the same or better terms or conditions as are offered to any other customers. Additionally, and not in limitation thereof, CNB will offer two special options for CD purchases: 1. The Town may purchase CD's for a term of up to one year. Any CD offered by CNB for a term of up to one year, can be cashed in by the Town without penalty. 2. The Town may purchase CD's for three year terms with the right to ask for two increases in interest rates to the then offered rates, without penalty. 6. Exclusive/Non Exclusive Services In consideration of the special rates being offered by CNB, the Town agrees to maintain its main deposit account and a checking account facility at CNB during the term of this agreement; provided, however, that nothing contained Herein shall limit the right of the Town to invest its surplus funds or deposit its UDAG or other grant funds with any other bank, brokerage firm, or otfier appropriate institution. The parties acknowledged that while the Town will utilize CNB for its day to day banking activities, the Town has an obligation to its citizens to maximize its return on surplus funds and special funds and cannot restrict itself to using a single institution for said purpose. • 7. Statement Freguency CNB will provide detailed monthly statements to the Town for each of its accounts for the preceding month no later than the 10th day of each month. 8. Reconciliation CNB will offer for the Town full reconciliation service without charge when check registers are furnished by hard copy. Output will be by hard copy unless the parties otherwise agree. CNB will complete full reconciliation within 10 daajs of being furnished the hard copy of the check registers, so long as only one month of reconciliation is furnished at a time. If multip{e months are furnished for reconciliation, CNB will be given a reasonable amount of time to perform the reconciliation. 9. Balance Reporting CNB will report all account balances to the Town daily by 10:00 a.m. to the Town Finance Director or his designee by each business day. 10. Night Deposits • Night deposits will not be available at the beginning of this term as CNB is in the process of constructing a permanent facility. Upon completion of an opening of a new facility, night deposits will be available at the Memorial Drive branch. Banking Services Agreement Page 2 of 4 • 11. Direct Deposits for the Town Employees. CNB will offer Town employees the right to direct deposit payroll checks into employee checking accounts without service charges. Town employees will also be offered a preferred customers benefit including 50 free checks for any checking account into which direct deposits are made. 12. Treasury and Tax Deposits. CNB states that it is a authorized depository for treasury and tax deposits and will accept the same upon physical delivery to the bank. 13. Stop Payments. CNB agrees that it will honor any stop payment request made by the Town Finance Director, or his designee, by telephone so long as it is followed by a written confirmation of the request within one business day. Written confirmation may be faxed, mailed or physically delivered to CMB's Memorial Drive branch. 14. Utility Collections. CNB agrees to act as a collection point for utility bill collection for the Town. All funds • received on behalf of the Town will be deposited into the Town's main deposit account on the day of receipt. This service will be provided to the Town without charge to the Town or to the customer. 15. Check Collections. CNB agrees to act as an agent for the Town to attempt to collect by reasonable means on any checks payable to the Town which are returned for insufficient funds. CNB agrees to make such efforts for a period of 30 days before returning such checks to the Town. 16.Miscellaneous. A. CNB agrees to maintain an office in the Town of Pu{aski, Virginia. If more than one office is maintained, the Town may select the branch to be used for its services. B. CNB will provide a large safety deposit Box for use by the Town without charge. • Banking Services Agreement Page 3 Of 4 17. Remedies. • Each party wilt have all remedies allowed by law, and reasonable alter fees and costs, arising from any breach of this agreement. 18. Termination. This agreement may be terminated for any of the following reasons: A. Violations by the other party of any term of this agreement. B. By written notice by either party to the other delivered at least 90 days prior to the end of one year term that the party does not desire to renew the agreement for additional term. C. By mutual agreement of the parties. D. If it is found that this agreement or any term thereof violates any law or regulation concerning banking practices of the investment and handling of municipal funds. 19. Construction. • This agreement is deemed to have been made in the Town of Pulaski, Pulaski County, Virginia and it will be construed according to the laws of the Commonwealth of Virginia. 20. Modification. This agreement shall not be modified except by written instrument approved by the Town Council of the Town of Pulaski and the duly authorized officer of CNB. Witness the following signatures and seals the day and year first above written. Town f Pulaski Virginia gy: (SEAL) Town Manager ATTEST: ~~ ~~.. Ruth A. Harrell Clerk of Council Community National Bank • By: ~ . (SEAL) Tie ~v~s.a Banking Services Agreement Page 4 Of 4