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HomeMy WebLinkAbout07568 ORD - 05/12/1965• vMP:5/6/65 AN ORDINANCE r 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 1. THAT THE APPLICATION OF THE CORPUS CHRISTI STATE NATIONAL BANK, A BANKING CORPORATION HAVING ITS OFFICE AND PLACE OF BUSINESS IN THE CITY OF CORPUS CHRISTI, NUECES COUNTY, TEXAS, BEARING DATE OF APRIL 28, 1965, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF AND DESIGNATED AS EXHIBIT "QII BE AND THt/SAME IS HEREBY IN ALL THINGS ' ACCEPTED (SAID BID HAVING BEEN OPENED AND EXAMINED BY THE CITY COUNCIL AND THE CITY MANAGER ON THE 28TH DAY OF APRIL, 1965, 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 l 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 QY 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 67, CHAPTER 57, PARAGRAPH 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 GOVERNMENT, STATES 7568 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 DEPOSI-- TORY, THE TRUSTEE I S 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 4. 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 SO 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 FU LL .FORCE AND EFFECT FROM AND AFTER ITS PASSAGE, IT IS ACCORDINGLY SO ORDAINED THIS THE - DAY OF MAY, 1965. ATTEST: t� CITY SECRETARY THE CITY OF CORPUS CHRISTI, TEXAS APPROVED AS TO GAL F M TH1 '�7tA— DAY OF MAY, 1965: CITY ATTORNEY CORPUS CHRISTI S TAT E NATIONAL }SANK CORPUS CHRISTI TEXAS , April 28, 1965 Honorable McIver Furman and Members of the City Council - City of Corpus Christi' Corpus Christi, Texas r s 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 Depository by the City or its officials and agrees that such funds will be 4 faithfully kept and accounted for by it`as provided by law and , -• that it will faithfully perform all the duties and obligations 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 -4 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 au- thorized 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 one- fifteenth of one percent per annum, ( limited amounts first da ovemspecifiedcareeto bep made sfor each • Honorable McIver Furman and Members of the City Council April 28, 1965 Page Two , fiscal year between the period of August lst (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- before 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 y � particular fiscal year in which the advancements i are made and all such advancements are to be repaid not later Y than December 31st of the fiscal year in which they are made. .1 (d) At the time of the authorization and making of advancements on account of current expenses the Cit shall pass valid ordinances setting Council such amount of the current funds collectedafromplevesaand 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. Before the advancements the assessed valuations forthefi t al year should befinallyade, established and the tax rate fixed and levied for that particular year. bonds or securities selected, d iththe hCity dofs Corpus BChristiefor the pledge 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. ,V, Y ' • • Honorable McIver Furman and Members of the City Council April 28, 1965 Page Three 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: For periods of 30 to 89 days 41/ per annum. For periods of 90 days or longer 4 -1/2% per annum. Interest compounded quarterly subject to the limitations contained in supplement to regulation Q Section 217.6 effective November 24, 1964. 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. Trea- sury Bills or other U. S. Government Securities, or other evidences of indebtedness during the life of this agreement, then such invest- ments 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 (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 other- wise, withdraw the whole or any part of the designated fund deposit or deposits before the end or the period specified for deposit. As to Investments in U. S. Treasury Bills or other U. S. Government Securities (a) Specify in writing the particular fund of funds of City, and the amounts from such funds, which are to be so invested; and Y: Honorable McIver Furman and Members of the City Council April 28, 1965 Page Four (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 very truly, CO US CHRISTI STATE NATIONAL BANK By President CORPUS CHRISTI, TEXAS i _.L..Y �•— DAY OF TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI TEXAS 4 1 FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FORE- GOING OROINANCEp 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 REE MEETINGS OF THE CITY SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT TH COUNCIL; Ip THEREFOREp 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} DR. MCI VER FURMAN 5 JACK BLACKMON %I • PATRICK J. DUNNE DR. P. DIME NEZ, JR. s., KEN MGDANIEL BONN I E $ I ZEMORE .•V /FC��c � „ f WM. H. WALLACE THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE: * - DR. MCIVER FURMAN JACK BLACKMON \ PATRICK J. DUNNE DR. P. JIMENEZ, JR. y KEN MGDANIEL i. , • -• � BONNIE SIZEMORE y .� • WM. H. WALLACE a • . ;ems D