HomeMy WebLinkAbout13756 ORD - 05/25/1977•
AN ORDINANCE
ACCEPTING THE BID OF CORPUS CHRISTI NATIONAL BANK AS
CITY DEPOSITORY BANK FOR THE ENSUING TERM; ACCEPTING
AND APPROVING THE PLEDGE OF SECURITIES OF SAID DEPOSITORY
BANK IN LI €U OF BOND AS SUCH CITY DEPOSITORY BANK; PRO-
VIDING 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 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 May 18, 1977, the tenth day after the
first day of such advertisement and examined by the City Council and City
Manager; and
WHEREAS, on May 25, 1977, 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 National Bank
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 proposal of Corpus Christi National.Bank, banking
corporation having its office and place of business in the City of Corpus Christi,
Nueces County, Texas, bearing the date of May 18, 1977, 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,
. M�ORO�j�MEO
43756 `��� 0 7 1980
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 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 des-
cribed 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
Bank, the respective Trustees are authorized to deliver to Corpus Christi National
Bank 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 intro-
duction and take effect and be in full force and effect from and after its passage,
IT IS ACCORDINGLY SO ORDAINED, this the ;K— day of May, 1977.
ATTEST: G
C' -Secretary MAYOR �
THE CITY OF CORPUS CHRISTI, TEXAS
APP D:
tqtb DAY OF MAY, 1977:
J"d�'
owt City Attorney
CITY OF CORPUS CHRISII, IEXA-
• OFFICIAL BID FORM •
PROPOSAL FOR CITY DEPOSiTORY•FOR TWO YEARS 1977 -79
pjCity of Corpus Christi 0 D 'r u I G
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 No year period in accordance with the laws
of Texas, Charter and Ordinances 'of the City of Corpus Christi, Texas.
Interest Rates to be Paid on Single Maturity Time ime Deposits:
A. Fixed Interest Rates on Deposits of $100,000 or more:
Maturity
6.37 °d
60-89 88 Days
30 -69 Days
6.37
6.. 3 �
�
60 -89 Days
-6.37
1 Year to 2 Years
90 -179 Days
6.93
180 -364 Days
6.61
°G
Over 1 Year
6.81
Compounded
simple
B. Fixed Interest Rates on Deposits of less than $100. 3'000
Maturity
30 - Days
6.37 °d
60-89 88 Days
.37 �
90 -179 Days -
6.. 3 �
�
180 -364 Days
.61
1 Year to 2 Years
2 Years and Over
Compounded simple
2. Repurchase Agreements:
The undersigned agrees to sell U. 5. Securities to the City, on rre before
ur hase on
noon on each Friday and simultaneously, with the sale, agrees P
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.
City Will week-end ai�nvestmenterepurchasei agr available in any
eements
The undersigned agrees to pay the City interest'on each repurchase agreement at .
the rate of _ 60 of the bid yield (from latest Wall Street Journal)
for 91 day U. S. Ireasury 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_
4K . `�
*of Corpus Christi, •
N icial Bid Form
Page 2
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 total loans at any one time will be the largest amount which the
undersigned is legally authorized to loan: At May 16 , 1977,
the maximum loan limit of the undersigned is 3.373,836.85
(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. The City shall
purchase such time deposits so that the maturity dates shall not extend beyond
the expiration of the 60 day period established by Article IV, Section 8 of
the City Charter for the orderly transfer of City funds to the next Depository.
6. Bond Securing Deposits:
The City Depository shall furnish to the City a bond in the amount and conditioned
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 bond shall at all times, have a par value or market value
tienen 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 keel
its funds fully invested during the transition period and at the same time provM
for the prompt and orderly transfer of funds to the next City Depository.
Corpus Christi
*of
ial Bid Form •
Page 3
8. Bank Services to be Provided Without Charge:
A.' Customary 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
agrees addition to the customary account service, the Depository
(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 maned 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 accoru22t000,vouality,
design and specifications established by City. (Approximately
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 - 96.
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 follo-wing
teceipt'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 objects shall be periodically delivered to the City.
9. City May Invest Funds in Bonds, Securities and Other Investmenfis:
The City reserves the right to invest any and ail 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 $75,000,000.
10. It is agreed that all provisions of this bid proposal, which the Depository can
legally perform, will apply to the Firemen's Relief and Retirement Fund and any
and all other funds and non - profit corporations for which the City may become
responsible, however, the City reserves the right to exclude from the provisions
of this bid proposal the City's Deferred Compensation Plan Fund and the City s
Over 49 Retirement Plan Fund for the reason that investments of the funds assets
may necessarily be made for periods of time substantially longer than the two
year depository contract.
of Corpus Christi
Official Bid Form •
Page 4
all bids and to
11. The City reserves the right.to reject any and waive irregularities.
Dated this lath day of M
• 1977.
Corpus Christi National Bank
By
Jerry W. Gates
Title Senior Vice President
ar. etnc-r Drr.FNT STATEMENT OF
•
Corpus Christi, Texas
AT day o 19-il
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 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, request
that you suspend said Charter rule or requirement and pass this ordinance
finally on the date it is introduced, or at the present meeting of.the City
Council.
Respectfully,
YR
THE CITY OF CORPUS CHRISTI, TEXAS
The Charter rule was suspended by th following vote:
Jason Luby
Eduardo de Ases
David Diaz
Ruth Gill
Bob Gulley
Gabe Lozano, Sr.
Edward L. Sample C/
The above ordinance was passed by the ollowing vote:
Jason Luby
Eduardo de Ases
David Diaz
Ruth Gill
Bob Gulley
Gabe Lozano, Sr.
Edward L. Sample
137."ig