HomeMy WebLinkAbout10393 ORD - 08/04/1971TEXAS:
AN ORDINANCE
ACCEPTING THE BID OF THE CORPUS CHRISTI BANK AND TRUST
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 DEPOSITORIES THAT ARE
APPROVED BY THE CITY DIRECTOR OF FINANCE, AND SUCH OTHER
SECURITY HOLDER, AS TRUSTEE FOR SAFEKEEPING; AND DECLARING
AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
SECTION 1. THAT THE APPLICATION OF THE CORPUS CHRISTI BANK AND
TRUST, A BANKING CORPORATION HAVING ITS OFFICE AND PLACE OF BUSINESS IN 11
THE CITY OF CORPUS CHRISTI, NUECES COUNTY, TEXAS, BEARING DATE OF JULY 14,
1971, A COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF AND DESIG-
NATED 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 14TH DAY OF JULY, 1971, 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 ON DEMAND DEPOSIT. AND ALL FUNDS INVESTED BY THE CITY IN
CERTIFICATES OF DEPOSIT, 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 DEPOSITORIES APPROVED BY THE CITY DIRECTOR OF FINANCE SHALL
BE DESIGNATED FOR THE DEPOSIT OF SECURITIES PLEDGED BY THE SAID CORPUS
CHRISTI BANK AND TRUST AS SECURITY FOR'SUCH DEPOSITS IN LIEU OF BOND AS
PROVIDED BY ARTICLE 256o OF THE REVISED
11 CIVIL STATUTES OF THE STATE OF
TEXAS, AS AMENDED BY THE ACTS"OF 1943, 48TH LEGISLATURE, PAGE 67,
CHAPTER 571 PARAGRAPH 1.
SECTION 2. DEPOSITORIES APPROVED BY THE CITY DIRECTOR OF FINANCE
AND SUCH OTHER SECURITY HOLDER, AS TRUSTEE, ARE HEREBY AUTHORIZED TO ALLOW
THE RESPECTIVE CITY DEPOSITORIES 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:
IL®393
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, SONDS,.PLEDGES OR OTHER EVI-
DENCES 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
AND FURTHER TO ACCEPT FROM TIME TO TIME ANY OF THE ABOVE DESCRIBED SECURI-
TIES AS ADDITIONAL SECURITY TO BE DEPOSITED FOR CITY FUNDS.
SECTION 3. IN THE ABSENCE OF NOTICE OF DEFAULT BY THE CITY
DEPOSITORY THE RESPECTIVE TRUSTEE IS AUTHORIZED TO DELIVER TO CORPUS
CHRISTI BANK AND TRUST ANY INTEREST RECEIVED ON ACCOUNT OFD OR INTEREST
COUPONS CLIPPED FROM THE RESPECTIVE DEPOSITED SECURITIES AS SUCH IS RECEIVED
OR THE COUPONS BECOME DUE.
SECTION b. THE CITY DEPOSITORY IS REQUIRED TO MAINTAIN A TOTAL
PAR VALUE OF SECURITIES EQUAL TO OR IN EXCESS OF THE CITY FUNDS ON DEPOSIT
WITH THEM RESPECTIVELY. THE TRUSTEE IS AUTHORIZED TO ACCEPT THE CERTIFICATE
OF EITHER OF THE CITY DEPOSITORIES APPROVED BY THE DIRECTOR OF FINANCE OF
THE CiTT OF CORPus CHRISTI TrXAS, THAT DOE TO CHANGE IN AMOUNT Or CI it
FUNDS ON DEPOSIT, A SPECIFIED AMOUNT OF THE SECURITIES MAY BE LAWFULLY
RELEASED FROM THE DEPOSIT WITH THE TRUSTEEy AND TO RELEASE TO THE DEPOSI-
TORY SECURITIES SELECTED BY IT IN THE AMOUNT SO CERTIFIED.
SECTION 5. THE FACT THAT THERE IS AN IMPERATIVE NEED FOR SECURI-
TIES TO BE ON DEPOSIT AT ALL TIMES REGARDLESS OF THE DESIGNATION AS
REQUIRED BY LAW OF CERTAIN DEPOSITORIES AT CERTAIN INTERVALS AND AN IMPERA-
TIVE NEED TO HAVE SECURITY AS PROVIDED BY LAW FOR CITY FUNDS CREATES A
PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPEN-
SION OF THE CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED
FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDINANCE OR RESOLU-
TION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCILS AND THE
MAYOR HAVING DECLARED THAT SUCH EMERGENCY AND NECESSITY EXISTS 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
-2-
FULL FORCE AND EFFECT FROM AND AFTER ITS PASSAGE, IT IS ACCORDINGLY SO
ORDAINED, THIS THE _/ DAY OF AUGUST, 1971.
ATTEST:
c
CITY SECRE AR
APPj20VE0:
� DAY OF AUGUST, 1971:
CITY ATTORNEY
O
e
AYOR
THE CITY OF CORP HRISTI, TEXAS
.• orFl:cznL niu Farm '
PROPOSAL FOIL Crr I)r:posI'1'ORY*
The City Of Corpus Christi
Corpus Christi, Texas
Gentlemen:
Subjact to the terms of the Proposal for City Depository, the undersigned, a banking
corporation, association or individual banker doing business within the City of
Corpus Christi, Texas, submits the following bid for the privilege of acting as
City Depository for the City of Corpus Christi,:Texas for the ensuing two year
period In accordance witli the laws of Texas, Charter and Ordinances of the City
Of Corpus Christi, Texas.
1. Interest Pates to be Paid on Single Maturity Time Deposits:
A. Deposits of $100,000 or more:
Fed. Res. Sys.
Basis for compounding
Maturity
Max. Rates
at 11 -25 -70
Interest Rate
interest:
Bid
Continuously
30 - 59 days
No. Max.
7.76 y
60 - 89 days
No. Max.
7,76
90 - 179 days
6 3 / /k%
6 3/4 11
180 - 364 days
7%
7
Over 1 Year
7 1/2%
7 1 2
B. Deposits of less than $100,000:
Basis for compounding
30 - 59 days
5%
5 '
interest:
60 - 89 days
5%
5 i
Continuously
90 - 179 days
5%
5
1'30 - 364 days
5%
5
1 Year to 2 Years
5 1/2%
5 :1
2 Years and Over
5 3/4%
5 3/4
2. Fepurchace Frrccncntr:
xne undersigned agrees to sell u. S. Securities to the City on or before 12:00 noon
on each Friday and simultaneously, with the sale, agrees to repurchase on or about
12:00 noon on the next following Monday the'•same securities at the same price as
sold, with interest calculated on the invested amount. If a holiday falls on Friday,
the sale will occur on the preceding Thursday. If a holiday falls on Monday, the
repurchase will occur on the following Tuesday. The City will determine the amount
of demand deposit balances available in any or all accounts for week -end investment
kepurchase agreements. Repurchase transactions are to be recorded in the City bank
accounts by bank debit and credit memo.
Interest earnings resulting from each repurchase agreement shall be paid to the City
on the day of repurchase by either delivery of a check with details of accounts and
amounts attached or by delivery of deposit slips showing each account and the amount
of interest deposited to the account, whichever procedure will minimize the clerical
workload of both the bank and the City.
The undersigned agrees to pay the City interest on each repurchase agreement at the
rate of not less than 51 %* of the average of the bid and asked yields for
90 day U. S. Treasury Bills for the date on which the repurchase agreement is
executed. *(For example: If the average of the bid and asked yields is S% and
the bank bid 75% of the average yield, the bank would pay 75% of the 5% or 3.757
per annum on the invested amount for the term of the repurchase agreement).
The City reserves the right to enter into repurchase a0eements for periods of
time longer than weekends as may be agreed upon by the bank and the City.
Tot-,
i•
3. Interest Rate on Bank loans to City:
Loans will be made to the City at the rate of -0- % per annum to pay
current expenses as may be appropriated by ordinance with such loans to be repaid
out of the first current tax collections.
The maximum total loans at any one time will be the largest amount which the under-
signed is legally authorized to loan. At July 14 , 1971 the maximum
loan limit of the undersigned is $ 2,000,000.00
(Note: The City has not borrowed under this provision for more than 20 years). -
4. Bank Services to be Provided Without Charge:
A. Operating Fund checking account service for as many accounts as may be required
by the City. (Approximately 1,200 voucher checks per month) (Approximately 500
deposits per month containing an estimated 60,000 checks) (12 demand deposit
accounts).
(1) Return checks in numerical sequence.
(2) Provide daily report for each account showing total number of debit entries
and total debit dollars, total number credit entries and total credit
dollars and the account balance.
B. Payroll account service. (Approximately 5,000 checks per month) (Approximately
20 deposits per month)
(1) Return checks in numerical sequence.
(2) Provide daily report shooing total number of debit entries and total debit
dollars, total number of credit entries and total credit dollars and the
account balance.
C. Provide complete investment service, counseling and safekeeping service for
securities owned by the City.
D. Storage of paid bonds and interest coupons.
B. Periodic cremation of paid bonds and interest coupons with certification of
cremation. Certificate to identify each bond issue, bond numbers and interest
coupons cremated. (Approximately 2,250 bonds and 4,500 interest coupons per yea
.P.. Provide bank money orders and cashiers checks as required by the City.
G. Supply 3 part voucher checks and payroll checks according to quantity, quality,
design and specifications established by City. (Approximately 15,000 voucher
checks per year and approximately 60,000 payroll checks per year) Voucher
checks purchased May 1969, 20,000 cost $366; 20,000 purchased October 1970
cost $384. Payroll checks purchased July 1969, 100,000 cost $1,350; 100,000
purchased March 1971 cost $1,150.
H. Provide paying agent services for those matured City bonds and interest coupons
which are presented by the holders thereof directly to the City Depository Bank
for payment. (The City will continue to pay paying agent fees which are charges
by non - resident paying agent banks).
I. Provide lock money bags as needed by the City.
•
CORPUS CHRISTI, TEXAS
11
DAY OF , 19_2�
TO THE MEMBERS OF THE CITY COUNCIL
CORPUS CHRISTI, TEXAS
FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING
ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPEN-
SION 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; 12 THEREFORE,
REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDI-
NANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESENT MEETING OF THE
CITY COUNCIL.
RESPECTFULLY,
V
MAY
THE CITY OF CO CHRISTI, TEXAS
THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE:
RONNIE SIZEMORE
CHARLES A. BONNIWELL
ROBERTO BOSQUEZ
REV. HAROLD T. BRANCH
THOMAS V. GONZALES
GABE LOZANO, SR.
J.' HOWARD STARK
THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE:
RONNIE SIZEMORE
CHARLES A. BONNIWELL
ROBERTO BOSQUEZ
REV. HAROLD T. BRANCH + '„
THOMAS V. GONZALES
GABE LOZANO, SR.
J. HOWARD STARK
i'
SEPTEMBER 28, 1971
MR. R. MARVIN TOWNSEND
CITY MANAGER
CITY OF CORPUS CHRISTI
CITY HALL
CORPUS CHRISTI, TEXAS 78408
DEAR MR. TOWNSEND:
IT IS MY UNDERSTANDING THAT THE CITY OF CORPUS CHRISTI DESIRES
4
TO AMEND ITS ORDINANCE No. 10,393 OF AUGUST , 1971, AND RECORD THE TRUE
INTENT OF THE COUNCIL AND ALL THE BIDDERS, WHEREBY CORPUS CHRISTI BANK
AND TRUST HAS BEEN DESIGNATED CITY DEPOSITORY FOR A TWO -YEAR TERM. BY
THIS AMENDMENT CORPUS CHRISTI STATE NATIONAL BANK AND GUARANTY NATIONAL
BANK, BOTH OF CORPUS CHRISTI, SHALL BE DESIGNATED AS CO- DEPOSITORIES, AS
4
OF AUGUST , 1971, FOR THE LIMITED PURPOSE OF CONTINUING THE INVESTMENT
OF CERTIFICATES OF DEPOSIT HELD BY THE SAID BANKS FOR THE CITY OF CORPUS
CHRISTI UNTIL THEIR RESPECTIVE MATURITIES, ACCORDING TO THE ATTACHED
SCHEDULE.
FOR GOOD AND VALUABLE CONSIDERATION RECEIVED, CORPUS CHRISTI
BANK AND TRUST HEREBY AGREES THAT SUCH ADDITION OF CO- DEPOSITORIES, FOR
THE LIMITED PURPOSE AFORESAID, MAY BE MADE BY THE CITY OF CORPUS CHRISTI
WITHOUT LIABILITY, DEBT OR CHARGE TO CORPUS CHRISTI BANK AND TRUST THEREFOR,
AND ACKNOWLEDGES THAT THE CITY'S DEPOSITORY CONTRACT WITH CORPUS CHRISTI
BANK AND TRUST SHALL NOT BE IMPAIRED THEREBY.
VER TRULY YOURS,
Jatri'cK =A.4lynn, for ice President
CORPUS CHRISTI BANK AND TRUST
ACCEPTED:
«iil�.ap_ al/
R. MARVIN TOWNSEND, CITY MANAGER
CITY OF CORPUS CHRISTI
TIME DEPOSITS AS'OF'AOGUST 4, 19
CORPUS CHRISTI STATE NATIONAL BANK:
CERTIFICATE N0. MATURITY DATE DATE ISSUED AMOUNT RATE DAYS TO MATURITY
143841 8 -10 -71
14648 8-31-71
1'4 0 9- -71
7 7 9 -17 -71
14z5 9 -30 -71
133987 9 -30 -71
11t84o 10 -7 -71
14411 10 -20 -71
14 o 11 -26 -71
14843 11 -30 -71
14611 11 -30 -71
`14758 11 -30 -71
N4437 12 -17 -71
14455 t -14 -72
14288 4 -6 -72
14481 5 -8-72
14759 6 -30 -72
GUARANTY NATIONAL BANK & TRUST:
7 -8-71
2-g-71
6- -71
6 -18 -71
3-31 -71
2 -17 -71
7 -8 -71
4 -22 -71
5 -28 -71
7-8 -71
5 -31 -71
6 -30 -71
12 -16 -71
4 -330 -71
4 -6 -71
5 -7 -71
6 -30 -71
$600,000
195,000
550,000
157,000
276,000
536,000
200,000
221,000
100,000
100,000
324,000
300,000
34o,000
100, 000
2,350,000
161,000
X100 000
,6 610,000
5-1/4% 33
6 -3/4% 927
6 -3/4% 91
7% X83
7% 225
73/4% 91
7 181
677-3/4% 185
6 '-3/4% 1533
7 l /2%
2 366
7 66
7 -1 2 /% 3
7 1
-1 %2% 366
CERTIFICATE ND.
MATURITY DATE
DATE ISSUED
AMOUNT
RATE
DAYS TO MATURITY
2696
8 -10 -71
4 -23 -71
$102,000
6 -3/4%
tog
2594
8 -31 -71
2 -5 -71
100,000
7%
207
26o7t
2187
9 -30 -71
11-30 -71
2 -17 -71
7 -8 -71
150,0oo
100,000
77%
6-314%
225
145
2672
4 -6 -72
4 -6 -71
150,000
7 -1/2%
366
2779
7 -7-72
7 -1 -7t
140 000
7 -1/2%
372
$742,000