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HomeMy WebLinkAbout12690 ORD - 07/09/1975JKH:VMR:7-8-75 ;1ST F AN ORDINANCE ACCEPTING THE BID OF CORPUS CHRISTI BANK & TRUST AS CITY DEPOSITORY BANK FOR THE ENSUING TERM; ACCEPTING AND APPROVING THE PLEDGE OF SECURITIES OF SAID DEPOSI- TORY BANK IN LIEU OF BOND AS SUCH CITY DEPOSITORY BANK; PROVIDING FOR THE DEPOSIT OF SUCH SECURITIES WITH DE- POSITORIES 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 BANK 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 JUNE 251 1975, THE TENTH DAY AFTER THE FIRST DAY OF SUCH ADVERTISEMENT AND EXAMINED BY THE CITY COUNCIL AND CITY MANAGER; AND WHEREAS, ON JULY 2, 1975, 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 Sc TRUST AS THE CITY DEPOSITORY BANK: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THAT THE PROPOSEL OF CORPUS CHRISTI BANK & TRUST, BANKING CORPORATION HAVING ITS OFFICE AND PLACE OF BUSINESS IN THE CITY OF CORPUS CHRISTI, NUECES COUNTY, TEXAS, BEARING THE DATE OF JUNE 25, 1975, A COPY OF 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 BANK IS SELECTED AND DESIGNATED AS CITY DEPOSITORY BANK 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 IN ACCORDANCE WITH THE AFORESAID PROPOSAL; AND DEPOSITORIES APPROVED BY THE CITY DIRECTOR OF FINANCE SHALL BE DESIGNATED FOR THE DEPOSIT OF SECURITIES PLEDGED BY THE DEPOSITORY 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 OF 1943, 48TH LEGISLATURE, 12690 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 CITY DEPOSITORY BANK 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 256o, 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 DEPOSI- TORY BANK, THE RESPECTIVE TRUSTEES ARE AUTHORIZED TO DELIVER TO CORPUS CHRISTI BANK & TRUST ANY INTEREST RECEIVED ON ACCOUNT OF, OR INTEREST COUPONS CLIPPED FROM THE RESPECTIVE DEPOSITED SECURITIES AS SUCH IS RECEIVED OR THE COUPONS BECOME DUE. SECTION 4. THE CITY DEPOSITORY BANK IS REQUIRED TO MAINTAIN A TOTAL PAR VALUE OF SECURITIES EQUAL TO OR IN EXCESS OF THE CITY FUNDS ON DEPOSIT WITH IT. THE TRUSTEES ARE AUTHORIZED TO ACCEPT THE CERTIFICATE OF THE CITY DEPOSITORY BANK, 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 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 9 DAY OF JULY, 1975- ATTEST: IT ECRE ARY z f e4 APNOVED: DAY OF JULY, 1975= ACTING CITY ATTORNEY / � �a- j4l�� AYOR THE CITY OF C As CHRISTI, TEXAS ' CITY OF CORPUS CHRISTI, TEXAS C'ofPusC�rtST1 % J� OFFICIAL BID FORM PROPOSAL FOR CITY DEPOSITORY FOR TWO YEARS 1975 -77 City of Corpus Christi Corpus Christi, Texas Gentlemen: The undersigned, a banking corporation, association or individual banker, 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 with the laws of Texas, Charter and•Ordinances of the City of Corpus Christi, Texas. 1. Interest Rates to be Paid on Single Maturity Time Deposits: A. Fixed Interest Rates on Deposits of $100,000 or more: Maturity 30 -59 Days 6.76 60 -89 Days 6,.80 % 90- 179.Days 6.85 % 180 -364 Days 7.03 % .Over 1 Year 7.36 % Compounded : NO - B. Alternate Bid to Fixed Rates in "A" Above - Floating Interest Rates on Deposits of $100,000 of more. The floating interest rate is the s of the bid yield for U. S_ Treasury Bills of the nearest ma ty date as shed in the latest available edition of the Wal reet Journal and {2) t er'centage herein below offered. Percent Addit " to Id d for Total Floating Interest Ne taring Rate Limits Maturity S. Treas. 'll Minimum Maximum 3D -59 Days 1.00 6.20 % 7.00 % 60 -89 s 1.00 % 6.30 % 7.00 % 180 -364 Days Over 1 Year Compounded NO C. Fixed Snterest Rates on Deposits of less than $100,000: Maturity 30 -59 Days 6.76 % 60 -89 Days 6.80 % 90 -179 Days 6.85 % 180 -364 Days 7.03 % 1 Year to 2 Years 7 36 1 2 Years and Over 7. 3 % Compounded NO g of Corpus Christi _facial Bid Form Page 2 2. Repurchase Agreements: The 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 repurchase agreements. The undersigned agrees to pay the City interest on each repurchase agreement at the rate of 20.0 % of the bid yield (from latest Wall Street Journal) for 91 day U. S. Treasury Bills maturing nearest to the date on which the re- purchase agreement is executed. The City reserves the right to enter into repurchase agreements for periods of time longer than week -ends as may be agreed upon by the Depository and the City_ 3. Interest calculations shall be on a 360 day basis paid for 365 days a year. 4. Interest Rate on Bank Loans to City: Loans will be made to the City at the rate of 4.25 % 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 totai loans at any one time will be the largest amount which the undersigned is legally authorized to loan. At June 25 , 1975, the maximum loan limit of the undersigned is $2,500,000.00 (Note: - The City has not borrowed under this provision for more than 20 years). 5. -Maturity of Time Deposits or Time Certificates of Deposit: The undersigned agrees that 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 day period established by Article I0, Section 8 of the City Charter for the orderly transfer of City funds to the next Depository. C. ,f Corpus Christi Official Bid Form Page 3 6. Bond Securing Deposits: 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, pledge 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. 7. Investment of City Funds During Transition to Next City Depository: 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,foi the prompt and orderly transfer of funds to the next City Depository. 8. Bank Services to be Provided Without Charge: A. dustomary demand deposit account service for as many accounts as may be re —• quired by the City. The City has. 30 demand deposit accounts at present. In addition to the customary account service, the Depository agrees to: (1) - Return checks in numerical sequence. .(2) To furnish a daily report of the balances in each account. 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 17,500 voucher checks per year; approximately 85,000 payroll checks per year; various imprest fund checks may approximate 11,000). 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 lock money bags as needed by the City. Current needs — 90. of Corpus Christi Official Bid Form Page 4 8. Bank Services to be Provided Without Charge* (Continued) G. Count and deposit parking meter fees each day as received from the City with the counting and depositing to be completed not later than the day following receipt from the City. The Depository shall assist the City in the disposal of mutilated United States coins and foreign country coins. Slugs and other non —coin object shall be periodically delivered to the City. 9. City May 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. This reservation applies to funds in excess of the sum of demand deposits and time deposits totaling $15,000,000. 1D. 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 Relief and Retiremeut Fund and any and all other funds for which the City may become responsible. -11. The City reserves the right to reject any and all bids and to waive irregularities. Dated this 25th day of June 1975. _CORPUS CHRISTI BANK AND TRUST ' G. Ivan Wilson Title Chairman of the Board PLEASE ATTACH A COPY OF THE BANK'S MOST RECENT STATEMENT OF FINANCIAL CONDITION CORPUS CHRISTI, TEXAS DAY OF Lt4, . 19 TSB TO THE MEM3ERS OF THE CITY COUNCIL COPPUS 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; 1, 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, (MAYOR R -TE✓YI THE CITY OF CO S CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: JASON LUBY OR. BILL TIPTON EDUARDO DE ASE3 RUTH GILL ' BOB GULLEY 1 GABE LOZANO, SR. EDWARD L. SAMPLE THE ABOVE ORDINANCE WAS PASSED BY THE VOLLOWING VOTE: JASON LUBY DR. BILL TIPTON EDUARDO DE ABES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE