HomeMy WebLinkAbout14961 ORD - 06/20/1979• vp:6/19/79:1st
AN ORDINANCE
ACCEPTING THE BID OF CORPUS CHRISTI NATIONAL BANK
AS CITY DEPOSITORY BANK FOR THE ENSUING TERM 1979-81;
ACCEPTING AND APPROVING THE PLEDGE OF SECURITIES OF
SAID DEPOSITORY BANK IN LIEU OF BOND AS SUCH CITY
DEPOSITORY BANK; 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.
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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 6, 1979, the tenth day after the
first day of such advertisement and examined by the City Council and City Manager;
and
WHEREAS, on June 13, 1979, 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, a
banking corporation having its office and place of business in the City of Corpus
Christi, Nueces County, Texas, bearing the date of June 6, 1979, 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, Page 67, Chapter 57,
Paragraph 1.
14961
MICROFILMED
JUL 0819E0
• •
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 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 suspen-
sion of the Charter rule that no ordinance or resolution shall be passed finally
on the date of its introduction but 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 9r/)day of June, 1979.
ATTEST:
City Secretary
APPROVED:
2-f DAY OF JUNE, 1979:
J. BRUCEYCOCK,_CITY ATTORNEY
By
Assistant City rney
TH TY OF CORPUS CHRISTI, TEXAS
•
CITY OF CORPUS CHRISTI, TEXAS
OFFICIAL BID FORM FOR BID UNIT I - ALL CITY FUNDS
PROPOSAL FOR CITY DEPOSITORY FOR TWO YEARS 1979-81
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,
the City Charter and the Ordinances of the City.
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 8.60
60-89 Days 8.65 %
90-179 Days 8.70
180-364 Days 8.80
Over 1 Year 8.80
Compounded None
B. Fixed Interest Rates on Deposits of less than $100,000:
Maturity
30-59 Days 8.00 %
60-89 Days 8.00 %•
90-179 Days 8.00
180-364 Days 8.00 %
Over 1 Year 8.00 %
Compounded
None
2. Repurchase Agreements
The undersigned agrees to sell those U. S. Securities in which the City can legally
invest its funds, 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.
Bit I - All City Funds
Pa
2. Repurchase Agreements (continued)
The undersigned agrees to pay the City interest on each repurchase agreement at the
rate of 60 % of the bid yield (from the latest Wall Street Journal) for
91 day U. S. Tr:!asury Bills maturing nearest to the date on which the repurchase
agreement is executed.
The City reserves the right to enter into repurchase .agreements fox 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
5.50 % 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 June 1 , 1979, the
maximum loan limit of the undersigned is $ 2,778,542.83
(Note: The City has not borrowed under this provision for more than 23 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 make an effort to 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 City Charter and the Ordinances of the City,
or in lieu thereof, pledge securities as provided by the laws of Texas, the City
Charter and the Ordinances of the City. Securities pledged in lieu of 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 Depositary. 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.
01
B t I - Ail City Funds
Y
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 io.tent 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 the
prompt and orderly transfer of funds to the next City Depository.
8. Bank Services to be Provided Without Charge:
A. Customary demand deposit account service for as many accounts as may be required
by the City. In addition to the customary account service, the Depository agrees
to:
(1) Return checks in numerical sequence.
(2) To furnish a monthly report of the high and low totals of demand and time
deposits and the dates on which each occurred.
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 the City. (Approximately 32,000 voucher
checks per year; approximately 85,000 payroll checks per year; various imprest
fund checks may approximate 12,000).
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 - 200.
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 objects
shall be periodically delivered to the City.
Bi X I — All City. Funds
Pag
9. City May Invest Funds in Bonds, Securities and Other Investments:
A. 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 aiid time deposits totaling $18,000,000. For investment of funds in excess
of the $18,000,000, the Depository Bank will be given the opportunity to match the
asked rates for U. S. Treasury Bills nearest the proposed investment maturity date
as published in the most current Wall Street Journal.
B. The City Depository will and shall aid and assist the.City in the acquisition of
any investment security without charge.
C. The City Depository shall act as advisor to the City in connection with the
investment of City funds under the provision of Paragraph 9.
10. It is agreed that all provisions of this bid proposal, which the Depository can legally
perform, will apply to 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.
11. The City reserves the right to reject any and all bids and to waive irregularities.
Dated this 6th day of June , 1979.
CORPUS CHRISTI NATIONAL SANK
By� \v
J
W. Gates
Title Senior Vice President
PLEASE ATTACH A COPY OF THE BANK'S MOST RECENT STATEMENT OF FINANCIAL CONDITION
CITY OF CORPUS CRRISTI, TEXAS
BID TABULATION FORM
DEPOSITORY BANK CONTRACT
1979-81
BID UNIT I - ALL CITY FUNDS
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1977-78
Total .Interest Interest
Days Time Deposits Rate Bid Amount
30-59 $ 80,929,000 8.60 z $ 6,959,894.00
60-89 25,418,000 8.65 z 2,198,657.00
90-179 72,079,000 8.70 % 6,270,873.00
180-364 46,005,000 8.80 q, 4,048,440.00
Over 1 Year 5,369,000 8.80 % 472,472.00
-.Total amount from Time Deposits.
$ 19,950,336.00
(1) 60%
Repurchase Agreements $689,127,000 X (9.47% X rate bid)= 5.682%
1/120 = interest calculated for three days $
326,301.63
Total Interest Amount $ 20,276,637.63
Name of Bank Corpus Christi National Bank
(1) Average 91 day Treasury Bill rate for six months
prior to bid request on City repurchase agreements.
CITY OF CORPUS CHRISTI, TEXAS
BID TABULATION FORM
DEPOSITORY BANK CONTRACT
1979-81
BID UNIT II - OPERATING FUNDS
•
1977-78•
Total Interest Inkexest
Days Time Deposits Rate Bid Amount
30-59 $ 13,233,000 9.80 X $ 1,296,834.00
60-89 4,882,000 - 9.85 x • 480,877.00
90-179 •• 3,741,000 9.90 % 370,359.00
180-364 4,907,000 10.05 X 493,153.50
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Over ].Year 63,000 10.05 6,331.50
• • Total Amount from Time Deposits
•$ 2,647,555.00
(1) 507
•Repurchase Agreements $538,580,000 X (9.47Z X rate bid) = 4.735 '
•
1/120 - interest Calculated for three days $ 212,554.15
Total Interest Amount
Name of Bank Corpus Christi National Bank
$ 2,860,109.15
(1) Average 91 day Treasury Bill rate for six months prior to bid
request= on City repurchase agreements.
CITY OF CORPUS CURISTI, TEXAS
• BID TABULATION FORM
DEPOSITORY BANK CONTRACT
1979-81
BID UNIT III - DEBT SERVICE FUNDS
• 1977-78
Total Interest Interest
Days Time Deposits Rate Bid ' Amount
30-59 $ 6,459,000 8.05 % $ 519,949.50
60-89 3,879,000 8.10 % ' 304,199.00
70-179 17,891,000 8.15 % - 1,458,116.50
180-364 12,236,000 8.25 . % 1,009,470.00
. Over 1 Year 3,621,000 8.25 % 298,732.50
• Total amount from Time Deposits
$ 3,600,467.50
(1) 50%
Repurchase Agreements $ 11,666,000 X (9.47% X rate bid)= 4.735%
•
.. 1/120 = interest calculated for three days $ 4,603.21
Total interest amount $ 3,605,070.71•
Name of Bank Corpus Christi National Bank
(1) Average 91 day Treasury Bill rate for six months
prior to bid request on City repurchase agreements.
. CITY OF CORPUS CHRISTI, TEXAS
BID TABULATION FORM
DEPOSITORY BANK CONTRACT
1979-81
BID UNIT IV - CAPITAL PROJECTS FUNDS •
. 1977-78
Total Interest Interest
Days Time Deposits Rate Bid Amount
30-59 $ 61,237,000 7.80 % $ 4,776,486.00
60-89 16,657,000 7.85 % 1,307,574.50
90-179 50,447,000 7.90 % 3 985,313.00.
180-364 28,862,000 . 8:00 % 2,308;960.00
Over 1 Year 1,685,000 8.00 % 134,800.00
Total amount from Time Deposits
$ 12,513,133.50
(1) 50%
Repurchase Agreements $138,781,000 % (9.47% % rate bid) =4.735%
I. 1/120 = interest calculated for three days $ 54,760.67
Total Interest Amount
.Name of Bank Corpus Christi National Bank
(1) Average{91 day Treasury Bill rate for six months
prior to bid request on City repurchase agreements.
$ 12,567,894.17
CORPUS CHRISTI NATIONAL HANK
CORPUS CHRISTI, TEXAS
Statement of Condition
As of June 1, 1979
ASSETS
Cash and Due from Banks
U. S. Treasury Securities
State, County & Municipal Securities
U. S. Government Agencies
Other Securities
Total Loans & Discounts
Federal Funds Sold
Bank Building & Equipment
Other Assets
Total Assets
LIABII,ITTRS
66,235,088.73
23,872,330.03
57,629,413.04
16,239,732.36
1,006,234.54
211,064,052.80
56,123,914.05
4,729,207.44
23,936,476.89
460,836,449.88
Deposits 347,271,352.21
Federal Funds Purchased & Securities Sold 57,048,509.63
Other Liabilities 30,172,004.60
Total Liabilities 434,491,866.44
CAPITAL
Capital Stock
Surplus
Undivided Profits
Net Gains to Date
Total Liabilities,' Reserve & Capital
8,000,000.00
8,000,000.00
8,676,470.79
1,668,112.65
460,836,449.88
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Corpus Christi, Texas
OrQday of
19 7?
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,
HE CIi7 OF CORPUS CHRISTI, TEXAS
The Charter rule was suspended by the following vote:
Luther Jones
CCA -1F--)
Edward L. Sample )
Dr. Jack Best C.7
David Diaz ao4..)
Jack K. Dumphy €
Betty N. Turner 0IIF.
Cliff Zarsky
The above ordinance was passed by the following vote:
Luther Jones ajlE3
Edward L. Sample °L11 -6 -)
Dr. Jack Best
()LAIC)
David Diaz air.)
Jack K. Dumphy `(E)
Betty N. Turner
Cliff Zarsky()n P/�
1 4901