HomeMy WebLinkAbout11540 ORD - 06/20/1973JRR:HG:JKH:6- 20 -73; 1st i
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AN ORDINANCE
ACCEPTING THE JOINT BID OF CORPUS CHRISTI BANK &
TRUST AND CORPUS CHRISTI STATE NATIONAL BANK AS
i
CITY DEPOSITORIES FOR THE ENSUING TERM; ACCEPTING
AND APPROVING THE PLEDGE OF SECURITIES OF SAID DEPOSI-
TORIES IN LIEU OF BOND AS SUCH DEPOSITORIES; 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.
WHEREAS, the City advertised for bids for City depository for
two (2) successive weeks and a copy of such advertisement was mailed to each
bank in the City,all in accordance with City Charter; and
WHEREAS, bids were opened on the tenth day after the first day of
such advertisement and examined by the City Council and City Manager; and
WHEREAS, on June 13, 1973, at the next regular meeting of the City
Council after such opening the City Council found on the basis of the bids
that it would be most advantageous to the City to select Corpus Christi Bank &
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Trust and Corpus Christi State National Bank as co- depositaries subject to
a joint arrangement of such two banks being worked out on how the funds would
be divided; and
WHEREAS, the two banks have worked out such a joint agreement and
submitted such joint agreement on June 15, 1973; and
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WHEREAS, the City Council finds such joint agreement to be more
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advantageous to the City in that it incorporates the best of all bid items in
each of the original bids and includes all of the terms and conditions of the
Official Bid Form; and
WHEREAS, the City Council hereby finds that it is to the best
interest of the City to name Corpus Christi Bank & Trust and Corpus Christi
State National Bank as co- depositories under the terms and conditions of
•
the aforementioned joint agreement:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. That the joint agreement and application of Corpus
Christi Bank & Trust and Corpus Christi State National Bank, both banking
corporations having their office and place of business in the City of Corpus
Christi, Nueces County, Texas, bearing the date of June 15, 1973, a copy of
11540
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which is attached hereto and made a part hereof, the same as if copied
verbatim herein, and designated as Exhibit "A ",be and the same is hereby in
all things accepted, and said banks are selected and designated as co-deposi-
tories 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)3ears, as provided by the City Charter of the City of Corpus Christi and by
the laws of the State of Texas and in accordance with the aforesaid joint
agreement; and depositories approved by the City Director of Finance shall
be designated for the deposit of securities pledged by the two co- depository
banks 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 of 1943, 48th Legislature, page 67, Chapter 57, 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:
Any securities authorized by and under Article 2560,
V.A.C'. S. ,
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 respective Trustees are authorized to deliver to Corpus Christi
State National Bank and Corpus Christi Bank & Trust any interest received on
account of, or interest coupons clipped from the respective deposited securi-
ties as such is received or the coupons become due.
SECTION 4. The City depositories are required to maintain a total
par value of securities equal to or in excess of the City funds on deposit
with them respectively. The Trustees are authorized to accept the certificate
of either of the City depositories, approved by the Director of Finance of
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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 a 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 effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED, this
the day of June, 1973.
ATTEST:
C2.-t i2_•r__ _ c tl
City Secrets MAYOR
CITY OF CORPUS CHR , TEXAS
APPR D: .-
21) DAY OF JUNE, 1973:
City Attorney
Corpus Christi, Texas
t
20-tLday of Qu r z 19 % 3
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; I, 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,
MAYORPfolTet� n (J
THE TY OF CORPUS C STI, TEXAS
The Charter rule was suspended by the following vote:
Jason Luby
- James T. Acuff
Rev. Harold T. Branch
Thomas V. Gonzales
-
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Ricardo Gonzalezc
e�
Gabe Lozano, Sr,
J. Howard Stark
P�e above ordinance was by the following
passed
CO
vote:
�i Jason Luby
ax-11r01-1
James T. Acuff
0 y�
Rev. Harold T. Branch
Thomas V. Gonzales
Ricardo Gonzalez
U
Gabe Lozano, Sr.
(.J. Howard Stark
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June 15, 1973
Mr. Harold F. Zick
Director of Finance
City of Corpus Christi
Corpus Christi, Texas
Dear Mr. Zick:
Enclosed is our joint proposal bid for the City depository. We
have combined the rates and repurchase agreement bid, as we
indicated in our meeting with you and Mr. R. Marvin Townsend.
This is signed jointly by both banks and indicates the terms of
the joint proposal.
The two banks have agreed to split the depository on a 50 percent
basis, each bank receiving as close as to one half of the money
as is feasible. It is our feeling that the City with little effort can
equalize the total amounts of the certificates of deposit at its
discretion. We,. of course, would hope that a similar break down
of certificates of deposit between the two banks could be accom-
plished thereby keeping the rates paid on these deposits reasonably
similar. Here again we do not propose to ask you to do an impos-
sible job in equating these rates.
As indicated in our meeting prior to the Council Meeting on Wednesday,
we agreed that all the demand accounts would remain in Corpus Christi
Bank and Trust. A proposal is being worked out whereby the banks
between themselves will fairly equate these deposits. The weekend
repurchase agreements will be handled by Bank and Trust with
State National Bank sharing equally this cost.
Each bank will be responsible for collate rali zing in total its share
of the City money deposited with it. Again the additional securities
required to collateralize the demand deposits will be worked out
between the two banks; i. e. , State National Bank will furnish the
collateral for its share of the demand deposits.
Mr. Harold F. Zick
Page 2
June 15, 1973
While the absolute details have not been finalized between the
banks, it is hereby agreed that these details will be worked out
to their mutual satisfaction without causing the City any incon-
venience. We appreciate your cooperation in this matter, and
jointly agree that the depository will be handled in all cases in
the best interest of the City.
Sincerely yours,
Corpus Christi Bank and Trust Corpus Christi State National Bank
By C .�ctTL �G ✓ "(/ c Cao -� By
'
President Executive Vice President
RLA:js '
Enclosure"
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CITY OI•' CORPUS Gl'iTSTI, TrXAS
.. ,OFFIC,L11' ,31D FUR,{
PROPOSAL. FOR CITY DB;
Of —h.al Bid Form "
Page 2
3. Interest lZate on IIankk Loins to Cif:
Loans will be made to the City at the rate of 3.50 % per annum to pay
current expouscs as may be appropriated by ordinance wi.Lh such loans to be
repaid out of the first current tau: collections.
The maximum total loans at any one time will be the largest amount which the
undersigned is legally authorized to loan. At June I5 , 1973 the
Corpus &�lisu 5ta js�&tFiSEhalaBS�nlT rust $2, 250, 000
maximum loan limit of the undersigned is $
1.800,000
(Note: The City has not borrowed under this provision for more than 20 years).
4. Maturity of Time Dc�oaits or. Time Certificates of Ih posit:
The undersigned agrees thai all time deposits or time certificates of deposit
purchased by the City shall remain on deposit and continue with the same
depository to their maturity dates even though such maturity dates extend
past: the date of expiration of the Depository Bank contract. Maturity 'dates
of time deposits shall not extend beyond the expiration of the 60 clay period
established by Article IV, Section 8 of the City Charter. for the orderly
transfer of City funds to the next Depository:
5. Bond Securing,
The City Depository shall furnish to the City a bond in the amount and con-
ditioned as provided by the laws of Texas, the Charter and Ordinances of the
City of Corpus Christi, or in lieu thereof, pledged securities as provided
by the laws of Texas, Charter and Ordinances of the City of Corpus Christi.
Securities pledged in lieu of a bond shall at all times, have a par value
or market value when less than par at least equal. to the total amount of the
City's monies on deposit with the Depository. It is further provided that
no reduction or substitution of bonds or securities pledged in lieu thereof
shall be made without the prior approval of the City.
6. .Investment of City Funds During Transition to Next City Ik:hosito>_ :
During the period of transition to the next City Depository the City Depository
whose contract is terminating may make offers to the City for the investment
of City funds for periods of less than 30. days for repurchase agreements of
U. S. Treasury Bills or other securities which are lawful investments for City
funds. The City reserves the right to accept or reject any or all of such offers.
It is the intent of this section to provide'a procedure by which the City may
keep its funds fully invested during the transition period and at the same
time provide for tho prompt and orderly transfer of funds to the next City
Depository.
OfLicial Bid Fenn
Page 3
7. Rank Services to be Provided {githout 2112 e:
A. Customary demand deposit account service for as many accounts as may be
required by Lhe City. The City has 32 demand deposit accounts at present.
In addition to the customary account- service, the Depository agrees to:
(1) Return checks in numerical sequence.
(2) To submit two monthly reports:
(a) Summary of Monthly Bank Account and Time Deposit Statistics as
reflected in the attached Exhibit A. This report lists by months
the data shown on Exhibit A -1 and includes time deposit data Of
highest total time deposits, lowest time deposits and daily
average tire deposits.
(b) Monthly Bank:'Account Statistics Report of all City accounts as
shown on the attached Exhibit A -1.
(1) Bank account number
(2)' Pund number
(3) Fund name
(4) Average balance
(5) High balance
(6) Low balance
(7) Beginning balance
(8) Number of checks paid
(9) Amount of checks paid
(10) Number of deposits
(11) Amount of deposits
(12) Ending balance
B. Provide complete investment service, counseling and safekeeping service for
securities owned by the City.
C. Provide bank money orders and cashiers checks as required by the City.
D. Supply 3 part voucher checks and payroll checks according to quantity, quality,
design and specifications established by City. (Approximately 16,000 voucher
checks per year; approximately 66,500 payroll checks per year; various imprest
fund checks may approximate 9,000).
E. 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
charged by other paying agent• banks)
F. Provide loci: money bags as needed by the City. Current needs - 45.
Oft. al Bid Font ,
Page 4
7. Bank Service:; to be Provided Without Charge: (Continued)
G. Count and deposit parking meter fees each clay as received from the City with
the counting and depositing to be completed not later than the day following
receipt from the City. Ilia Doposi.tory :;hall assist the City in the disposal
of mutilated United States coins and foreign country coins: Slugs and other
non -coin objects shall be periodically 'delivered to the City.
E. Ci.t Ilay Invest Funds in Bonds, Securities and Other Investments:
The City reserves the right to invest any and all of its funds in any bonds,
securities, or other investments which are authorized by law for the investment
of City funds.
9. It is agreed that all provisions of this bid proposal, which the Depository can
legally perform, will apply to Corpus Christi Municipal Gas Corporation, the
Firemen's Rekief and Retirement Fund and any and all other funds for which the
City may become responsible.
Dated this 15t11 day of June _0973.
Corpus Christi Bank and Trust Corpus Christi State National Bank
-�y
Title President Title Executive Vice President
PLEASE ATTACK A COPY OF TIILi LA\K'S MOST RECENT STe1MIMNT OF FINAPICIAL C014DITION