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HomeMy WebLinkAbout06878 ORD - 04/24/1963AN ORDINANCE ACCEPTING THE BID OF THE CORPUS CHRISTI STATE NATIONAL BANK AS CITY DEPOSITORY FOR THE ENSUING TERM; ACCEPTING AND APPROVING THE PLEDGE OF SECURITIES BY SAID DEPOSITORY IN LIEU OF BOND AS SUCH DEPOSITORY; PROVIDING FOR THE DEPOSIT OF SUCH SECURITIES WITH THE FROST NATIONAL BANK AT SAN ANTONIO, TEXAS, AS TRUSTEE FOR SAFEKEEPING; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 7. THAT THE APPLICATION OF THE CORPUS CHRISTI STATE NATIONAL BANK, A BANKING CORPORATION HAVING ITS OFFICE AND PLACE OF BUSINESS 1 IN THE CITY OF CORPUS CHRISTI, NUECES COUNTY, TEXAS, BEARING DATE OF APRIL 15, 1963, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF AND DESIGNATED AS EXHIBIT "A °, BE AND THE SAME IS HEREBY IN ALL THINGS ACCEPTED SAID BID HAVING BEEN OPENED AND EXAMINED BY THE CITY COUNCIL AND THE CITY MANAGER ON THE 77TH DAY OF APRIL, 1963, TEN DAYS AFTER THE FIRST DAY OF ADVERTISEMENT FOR BIDS, AS PROVIDED BY THE CITY CHARTER), AND SAID BANK IS SELECTED AND DESIGNATED AS DEPOSITORY FOR ALL FUNDS OF THE CITY OF CORPUS CHRISTI FOR THE TERM OF TWO (2) YEARS AS PROVIDED BY THE CITY CHARTER OF THE CITY OF CORPUS CHRISTI AND BY THE LAWS OF THE STATE OF TEXAS; AND THE FROST NATIONAL BANK AT SAN ANTONIO, TEXAS, IS DESIGNATED FOR THE DEPOSIT OF SECURITIES PLEDGED BY THE SAID CORPUS CHRISTI STATE NATIONAL BANK AS SECURITY FOR SUCH DEPOSITS IN LIEU OF BOND AS PROVIDED BY ARTICLE 2560 OF THE REVISED CIVIL STATUTES OF THE STATE OF TEXAS, AS AMENDED BY THE ACTS 1943, 48TH LEGISLATURE, PAGE 671 CHAPTER 57, PARAGRAPH 7. SECTION 2. THE FROST NATIONAL BANK IN SAN ANTONIO, TEXAS, AS TRUSTEE, IS HEREBY AUTHORIZED TO ALLOW THE CITY DEPOSITORY TO SUBSTITUTE, FROM TIME TO TIME, FOR ALL OR PART OF THE SECURITIES HELD BY IT TO SECURE CITY FUNDS AN EQUIVALENT PAR VALUE AND OF THE FOLLOWING DESCRIBED SECURITIES WHICH ARE HEREBY APPROVED AS SECURITIES TO SECURE CITY FUNDS: UNITED STATES BONDS, CERTIFICATES OF INDEBTEDNESS OF THE UNITED STATES, TREASURY NOTES OF THE UNITED STATES, AND OTHER EVIDENCES OF INDEBTEDNESS OF THE UNITED STATES WHICH ARE GUARANTEED AS TO BOTH PRINCIPAL AND INTEREST BY THE UNITED STATES GOVERNMENT OR BONDS ISSUED UNDER THE FEDERAL FARM LOAN ACT, BONDS, PLEDGES OR OTHER EVIDENCES OF INDEBTEDNESS ISSUED BY THE BOARD OF REGENTS OF THE UNIVERSITY OF TEXAS, NOTES OR BONDS SECURED BY MORTGAGES INSURED AND DEBENTURES ISSUED BY THE FEDERAL HOUSING ADMINISTRATOR OF THE UNITED STATES GOVERNMENT, s -6 AND FURTHER TO ACCEPT FROM TIME TO TIME ANY OF THE ABOVE DESCRIBED SECURITIES AS ADDITIONAL SECURITY TO BE DEPOSITED FOR CITY FUNDS. SECTION 3. IN THE ABSENCE OF NOTICE OF DEFAULT BY THE CITY DEPOSITORY, THE TRUSTEE IS AUTHORIZED TO DELIVER TO CORPUS CHRISTI STATE NATIONAL BANK ANY INTEREST RECEIVED ON ACCOUNT OF, OR INTEREST COUPONS CLIPPED FROM THE DEPOSITED SECURITIES AS SUCH IS RECEIVED OR THE COUPONS BECOME DUE. SECTION I;. THE CITY DEPOSITORY IS REQUIRED TO MAINTAIN A TOTAL PAR VALUE OF SECURITIES EQUAL TO OR IN EXCESS OF THE CITY FUNDS ON DEPOSIT. THE TRUSTEE IS AUTHORIZED TO ACCEPT THE CERTIFICATE OF THE CITY DEPOSITORY, APPROVED BY THE DIRECTOR OF FINANCE OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT DUE TO CHANGE IN AMOUNT OF CITY FUNDS ON DEPOSIT,A SPECIFIED AMOUNT OF THE SECURITIES MAY BE LAWFULLY RELEASED FROM THE DEPOSIT WITH THE TRUSTEE, AND TO RELEASE TO THE DEPOSITORY SECURITIES SELECTED BY IT IN THE AMOUNT SD CERTIFIED. SECTION 5. THE FACT THAT THERE IS AN IMPERATIVE NEED FOR SECURITIES TO BE ON DEPOSIT AT ALL TIMES REGARDLESS OF THE DESIGNATION AS REQUIRED BY LAW OF CERTAIN DEPOSITORIES AT CERTAIN INTERVALS AND AN IMPERATIVE NEED TO HAVE SECURITY AS PROVIDED BY LAW FOR CITY FUNDS, CREATES AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR, HAVING DECLARED THAT SUCH EMERGENCY AND NECESSITY EXIST, AND HAVING REQUESTED THE SUSPENSION OF SAID CHARTER RULE AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND TAKE EFFECT AND BE IN FULL FORCE AND EFF CT FROM AND AFTER ITS PASSAGE, IT IS ACCORDINGLY SO ORDAINED THIS THE Ay OF APRIL, 1963. ATTEST: 0 d CI TY ,7ECRETAIY .`. THE CITY OF CORPUS CHRISTI, TEXAS AP ROVED AS TO L AL FO M THIS DAY OF APRIL, 1963: Y ATTORNEY CORF S CT IRI S T lI S TAT E NAT101"TAL BANK CORD -US CEMIISTII, TEXAS _ ! 0 GEO. J.MeaatwtnN / /l /ELI April 15, 1963 L` / f / Hon. James L. Barnard and Members of the City Council City of Corpus Christi Corpus Christi, Texas Gentlemen: The undersigned, a national banking association, hav- ing its place of business in the City of Corpus Christi, County of Nueces, State of Texas, submits this its bid for designation as City Depository for all City funds for and during the period of time prescribed by law: 1. If selected as City Depository, the undersigned Bank agrees to handle and assume the custody and safekeeping of all City funds actually deposited with it as City Deposi- tory by the City or its officials and agrees that such funds will be faithfully kept and accounted for by it as provided by law and that it will faithfully perform all the duties and ob- ligations devolving by law upon it as depository. 2. If selected as City Depository, the undersigned Bank further agrees to make advancements during and for each fiscal year, not to exceed Four Hundred Thousand Dollars ($400,000.00) during each fiscal year for the current expenses of the City lawfully chargeable to and payable as current ex- penses; provided that such advancements shall be expressly con- ditioned and subject to the requirements and agreements as follows: (a) The advancement of either funds are to be made upon regularly issued City warrants or vouchers duly authorized by appropriate ordinance for valid purposes, which City warrants or vouchers shall be issued from time to time as funds are needed and shall bear interest at the rate of nine- tenths of one percent (,9 %) per annum, (b) Advancements for current expenses in the limited amounts first above specified are to be made for each Hon. James L. Barnard and Members of the City Council Page Two April 15, 1963 fiscal year between the period of August 1st (the commencement date of the fiscal year) and December 31st (of the same year) and such advancements are to be repaid in any event on or be- fore December 31st of the same fiscal year; (c) Advancements made by the Depository to the City on account of current expenses are to be repayable out of the first current tax collections from tax levies and assess- ments for the particular fiscal year in which the advancements are made and all such advancements are to be repaid not later than December 31st of the fiscal year in which they are made. (d) At the time of the authorization and making of advancements on account of current expenses the City Council shall pass valid ordinances setting aside and appropriating such amount of the current funds collected from levies and assess- ments for that particular year as will fully discharge the prin- cipal and interest of all warrants issued in payment of such advancements, and thereafter, the so appropriated portion of such current funds shall not be used for any purpose other than to discharge said warrants. (e) Before making the advancements for current expenses provision is to be made in the finally approved budget for adequate appropriations and allocations, out of the current revenues anticipated to be collected as a result of tax levies and assessments for the particular fiscal year, in such amounts as are sufficient to pay the principal and interest of said warrants evidencing the advancements; (f) Before the advancements to the City are made, the assessed valuations for the fiscal year should be finally established and the tax rate fixed and levied for that parti- cular year. 3. If selected$ the undersigned Bank agrees to pledge bonds or securities with the City of Corpus Christi for the purpose of securing such City funds in an amount equal to the amount of said City deposits, such securities to be of the kind specified in Article 2560 of the Revised Civil Statutes of the State of Texas, as amended, with such pledge to be in accordance with said Act. Hon. James L. Barnard and Members of the City Council Page Three April 15, 1963 4. If selected as Depository, the undersigned Bank will pay the following rates of interest on certificates of de- posit of funds belonging to the funds of the City in the follow- ing amounts and for the following periods of time: 1 % - 30 to 89 days 2-,'% - 90 to 179 days 3N - 180 days to 1 year 4 % - 1 year and over (Interest is payable quarterly subject to the limitations con- tained in the supplement to regulation Q, Section 217.6, effec- tive January 1, 1962.) The aforegoing rates of interest to be paid by the Depository are subject to the following understanding: Should the City desire to invest temporarily idle funds of the City in time deposits, certificates of deposit, U. S. Treasury.Bills or other U. S. Government Securities, or other evidences of indebtedness during the life of this agree- ment, then such investments will be made by the City Depository, and the City shall: As to Time Deposits - (a) Specify in writing the particular fund or funds and the amounts thereof which are to be and remain as time deposits in contemplation of law and the regulations promulgated by the Board of Governors of the Federal Reserve System; and (b) Specify in writing the period for which the fund or funds are to remain on deposit as time deposits, such period to be not less than the dates heretofore set forth herein; and Hon. James L. Barnard and Members of the City Council Page Four April 15, 1963 (c) Agree in writing that such designated funds are to be and remain subject to all the rules and regulations provided by law and promulgated by the Board of Governors of the Federal Reserve System and that the depositor will not, by voucher or otherwise, withdraw the whole or any part of the designated fund deposit or deposits before the end or the per- iod specified for deposit. As to Investments in U. S. Treasury Bills or other U. S. Government Securities - (a) Specify in writing the particular fund or funds of City, and the amounts from such funds, which are to be so invested; and (b ) Specify_in_ writing the particular issue of U. S. Treasury bills or other U. S. Government security to be purchased for the account of each particular fund of City. In your invitation for bid, you asked that the bid specify the rate of interest which will be paid on daily bal- ances. This bank is prohibited from paying any interest on daily balances by reason of the provisions of Regulation Q, Section 24 of the Federal Reserve System. Yours truly, CORPUS CHRISTI STATE NATIONAL BANK By President .o CORPUS CHRISTI, TEXAS _DAY OF W / 19 Ld TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI, TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FORE- GOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPENSION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT IS INTRODUCED, AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; I, THEREFORE, HEREBY REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDINANCE FINALLY ON THE DATE IT IS INTRO- DUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY, MAYOR THE CITY OF CORPUS CHRISTI, TEXAS. THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: JAMES L. BARNARD JAMES H. YOUNG JACK R. BLACKMON JOSE R. DELEoN M. P. MALDONADO W. J. ROBERTS W. H. WALLACE, JR. THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOW G VOTE: JAMES L. BARNARD JAMES H. YOUNG JACK R. BLACKMON JOSE R. DELEON M. P. MALDONADO W. J. ROBERTS W. H. WALLACE, JR. y r 1 CORPUS CHRISTI S TAT E NATIONAL BANK CORPUS CHRISTI, TEXAB W. H. KIRK April 26, 1963 VICE -IDENT Frost National Bank San Antonio, Texas Gentlemen: The undersigned Bank has been selected as City Depository for the City of Corpus Christi for the ensuing term of two years and, as such, has pledged to the City of Corpus Christi the securities herein listed and described to secure the funds deposited with it under the conditions perecribed in Article 2560 of the Revised Statutes of the State of Texas as amended by the Act 1943s 48th Legislature, page 7, with such pledge to be in accord- ance with such act. In accordance with said transaction and the law, the City Council of the City of Corpus Christi has agreed that the securities pledged shall be de- posited with you as Trustee and for Safekeeping, subject to the conditions of the pledge and the final release of the pledge by the City. The list of securities, together with the obligor's amounts and the rates of interest are as follows: $500000.00 U. S. Treasury Notes E -1964 3 -3/47, due 8- 15 -64✓ $1,000,000.00 U. S. Treasury Notes E -1964 3 -3/4% due 8- 15 -64� $500,000.00 U. S. Treasury Notes E -1964 3 -3147. due 8-15-W- $500,000.00 U. S. Treasury Notes B -1966 3 -5/8% due 2- 15 -66- $1,000,000.00 U. S. Treasury Notes B -1966 3 -5/8% due 2- 15 -66✓ $2500,000.00 U. S. Treasury Notes A -1966 4% due 8 -15 -66 $200,000.00 U. S. Treasury Notes A -1966 47 due 8- 15 -661 $700,000.00 U. S. Treasury Notes B -1967 3 -5/87. due 2 -15 -67 $150,000.00 U. S. Treasury Bonds 2 -5/87. due 2 -15 -651 $100,000.00 U. S. Treasury Bonds 2 -5/8% due 2- 15 -65'' $2009000.00 U. S. Treasury Bonds 47 due 8- 15 -72✓ Your acceptance to the trust to hold these securities, as pledged to secure the City deposits in accordance with the contract of the law, may be indicated by signing triplicate originals of this letter; one of which will be delivered CORPUS CHRISTI S TAT E NATI ONAL BANK CDRPUS CHRISTI, TEXAS W. H. KIRK VICE PRESIDENT Page #2 Frost National Bank to the City of Corpus Christi, one delivered to this Bank and the other retained by you. Yours very truly, w. H. KIRK Vice President ACCEPTED: FROST NATIONAL BUNK San /Antonio, Texas By: VICE PRUI'mf Wmu 1 j CORPUS CHRISTI STATE NATIONAL BANK CORPUS CHRISTI, TEXAS W. H. KIRK May 3, 1963 Mr. Harold Zick Director of Finance City of Corpus Christi P. O. Box 1622 Corpus Christi, Texas Dear Mr. Zick: We are enclosing receipt from Federal Reserve Bank covering securities pledged to the City of Corpus Christi, together with their acceptance of Trutee- ship. Yours very truly, H. R Vixe President WRK- 19 Encls. CORPUS CHRIST I S TAT E NATIONAL BANK CORPVS CHRISTI, TEXAS W. H. KIRK April 26, 1963 Mr. Harold Zick Director of Finance City of Corpus Christi Corpus Christi, Texas Dear Mr. Zick: Below listed are securities deposited with Frost National Bank of San Antonio, Texas, as Trustee, such deposit having been made by the Corpus Christi State National Bank to secure funds of the City of Corpus Christi, Texas, provided by Article 2560, Revised Civil Statutes of Texas: COVERNmENT SECURITIES $50,000.00 U. S. Treasury Notes E -1964 3 -3/4% due 8- 15 -64v $1,000,000.00 U. S. Treasury Notes E -1964 3 -3/4% due 8- 15 -64- $500,000.00 U. 5. Treasury Notes E -1964 3 -3/4% due 8- 15 -64- $500,000.00 U. S. Treasury Notes B -1966 3 -5/8% due 2- 15 -66' $1,000,000.00 U. S. Treasury Notes B -1966 3 -5/8% due 2- 15 -66� $100,000.00 U. S. Treasury Notes A -1966 47. due 8- 15 -66, $2,500,000.00 U. S. Treasury Notes A -1966 47. due 8- 15 -66✓ $200,000.00 U. S. Treasury Notes A -1966 4% due 8- 15 -66' $7002000.00 U. S. Treasury Notes B -1967 3 -5/8% due 2- 15 -67' $1509000.00 U. S. Treasury Bonds 2 -5/87 due 2- 15 -65V $100,000.00 U. S. Treasury Bonds 2 -5/87 due 8- 15 -65, $200,000.00 U. S. Treasury Bonds 4% $7,000,000.00 - Total Yours very truly, CORPUS CHRISTII�STATE NATIONAL BANK .e Vice President We hold the Securities listed FROST NATIONAL BANK San Antonio, Texas By: gZ6 X/ RACE PRESIDENT