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CITY OF AUBURN, WASHINGTON
ORDiNANCE NO. 5167
AN ORDiNANCE of the City of Auburn, Washington, relating to banking
services and contracting indebtedness; providing for approval of a Banking Services
Agreement with Key Bank National Association.
13 WHEREAS, the City of Auburn, Washington (the "City"), is in need of an ongoing
14 banking services relationship; and
15 WHEREAS, the Finance Director of the City has carried out a competitive process
16 to select a bank to provide a range of banking services including the deposit of cert~dn City funds,
17 checking, short term borrowing and other services; and
18 WHEREAS the Finance Director has determined that Key Bank National
19 Association has made a proposal most advantageous to the City; and
20 WHEREAS, the City Council deems it to be in the best interest of the City to enter
21 into the Banking Services Agreement substantially in the form of Exhibit A attached and
22 incorporated herein by reference; NOW, THEREFORE,
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24 THE CITY COUNCIL OF THE CITY OF AUBURN, WASHiNGTON, DO ORDAIN
25 AS FOLLOWS:
26 Section 1. The Banking Services Agreement attached as Exhibit A is approved, and the
27 Finance Director of the City is authorized and directed to execute that agreement on behalf of the
28 City in substantially the form of Exhibit A, with such modifications as she may determine are
29 consistent with the purposes of this resolution.
30 Section 2. All actions previously taken in accordance with this ordinance are hereby
31 ratified and confirmed.
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Section 3. This ordinance shall take effect and be in force from and after its passage and
five days following its publication as required by law.
ATTEST:
Danielle Daskam, City Clerk
INTRODUCED:
PASSED:
APPROVED:
CHARLES A. BOOTH, Mayor
November 2, 1998
November 2, 1998
November 2~ 1998
25 APPROVED AS TO FORM:
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3 Attorney
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32 PUBISHED:
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EXHIBIT "A"
BANKING SERVICES AGREEMENT
CONTRACTING PARTIES
This AGREEMENT is entered into by and between the CITY OF AUBURN, hereinafter
referred to as the "City," and Key Bank National Association, fully qualified under the
terms and conditions outlined by the Washington Public Deposit Protection Commission
and licensed to conduct business in the state of Washington, and hereinafter referred to
as the "Bank."
HEREBY WITNESSETH:
The City of Auburn, acting by and through the Finance Department, issued a Request for
Proposal (RFP), dated in August of 1997, for the purpose of obtaining proposals for
providing banking services for the City of Auburn's Banking Services. Key Bank
responded with a proposal dated August 27, 1997 (the "Proposal"). The RFP and the
Proposal are attached hereto and incorporated by reference herein, are together with
this document and its other attachments, referred to below as the "Agreement"
The City hereby awards to Key Bank National Association, this Agreement For banking
services, hereinafter referred to as the "Services," as described in the RFP for the City of
Auburn Banking Services and in the Proposal, attached hereto at the prices stated
therein and further clarified by attaching the Bank's complete pricing schedule, in
accordance with the terms of this Agreement.
ADDITIONAL SERVICES
The parties further agree, that additional services (other than item 3b. below),
appropriate to the scope of the Agreement, may be added to this Agreemen~t only with
the written mutual consent of both parties. Such writing shall include a specific
description of the additional services, pricing and additional terms and conditions as
relevant. The additional services shall be available under the same terms and
conditions established herein except as specifically amended between the parties.
The parties further agree that a provision of the RFP and the Proposal is to ~provide an
overdraft line-of-credit (the "LOC") in the amount of not to exceed $2 million for the life of
this Agreement and any legal extensions thereto. The City acknowledges that this
Agreement will be utilized as the authorization for its designated representative to
obligate the City to the repayment of any amounts drawn under the LOC and the
payment of any interest or fees relative to those draws and the LOC. The Bank agrees
that the sole compensation for the LOC will be the interest paid (calculated at a taxable
rate of 75% of Key Bank's Prime Rate using an actual/365-day basis) and any normal
Bank fees and charges relating to such a credit facility. The City irrevocable pledges to
include in its budget and levy taxes annually within the constitutional and statutory tax
limitations provided by law without a vote of the electors on all taxable property within
the City in an amount sufficient, together with other money legally available therefore, to
pay the LOC when due. The City pledges its full faith and credit to the repayment of the
LOC.
Exhibit "A", Ordinance No. 5167
4. CONSIDERATION
In consideration whereof, the mutual promises made to each other, as hereinafter set
forth, the parties further agree as follows:
The City and the Bank agree that the Agreement is the complete and exclusive
statement between the parties which supersedes all proposals or prior agreements, oral
or written, and all other communications between the parties relating to the subject
matter of this Agreement. The parties agree that to the extent the Bank provides
choices to the City in the Proposal, those options remain options for the City to utilize.
Any notice or demand which under this Agreement or applicable law must or may be
given by the Bank, or City shall be in writing, properly addressed and, as an alternative
to personal delivery, made by U.S. Mail,
if to the Bank, at:
Key Bank National Association
Public Sector Division
Attn: Herb Neufeld
Mail Code: WA-31-10-4848
700 Fifth Avenue, 48th Floor
P.O. Box 90
Seattle, WA 98111-0090
if to the City, at:
City of Auburn
Finance Department
Attn: Diane Supler
25 West Main Street
Auburn, WA 98001-4998
5. TERM
This Agreement shall be for a period of three (3) years, renewable for two (2) additional
one-year periods upon the written agreement of the parties and including such changes
upon which the parties may agree. This Agreement shall be come effective immediately
upon execution by all parties, with implementation of all specified services to take place
on June 1, 1998. The Agreement entered into between the Parties shall extend for a
term through and including May 31, 2001. Fees are fixed for the initial three-year period,
with fees and terms subject to renegotiation at the end of the first three years and each
subsequent renewal period.
Either party may terminate this Agreement at any time upon 90-days written notice to the
other party.
In Witness Whereof: The City and Bank have executed the Agreement as of the date and
year written below.
APPROVED
City of Auburn
Diane L. Supler
Finance Director
Date
APPROVED
Key Bank National Association
~-'/Herbe r'F,F.:'l~e u feld~ Vice President
I/'- ?d
Date
5C047691.01