HomeMy WebLinkAbout19778 RES - 06/04/19870
A RESOLUTION
AUTHORIZING THE EXECUTION OF A MAIN DEPOSITORY AGREEMENT
AND AN INVESTMENT DEPOSITORY AGREEMENT WITH FIRST CITY BANK
OF CORPUS CHRISTI.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the City Manager is hereby authorized to execute a
depository agreement and an investment depository agreement with First City Bank
of Corpus Christi substantially in the form attached hereto as Exhibit A and
Exhibit B.
ATTEST:
City Secretary NEAYOR Q
THE CITY OF CORPUS CHRISTI, TEXAS
APPROVED: DAY OF��/fi�„u 19.0'72HAL GEORGE, CITY ATTOR Y
05P.091.01
19778 MICROFILMED
0
THE STATE OF TEXAS §
§
COUNTY OF NUECES §
EXHIBIT A
CITY OF CORPUS CHRISTI
INVESTMENT DEPOSITORY AGREEMENT
0
This City of Corpus Christi Investment Depository Agreement (this
"Agreement") is entered into by and between the City of Corpus Christi, Texas, a
municipal corporation having home rule powers (the "City"), and
, a banking association
(the "Depository");
WHEREAS, the City shall periodically request solicit applications from
depositories for the deposit of time or interest-bearing deposits of City funds
for varying amounts and maturities;
WHEREAS, the Depository desires to submit competitive bids for the deposit
of City funds under the terms and conditions of this Agreement;
NOW, THEREFORE, IN CONSIDERATION of the mutual benefits to be derived from
this Agreement, and the representations, warranties, covenants, conditions, and
agreements hereinafter set forth, the City and Depository agree as follows:
Article 1
Definitions
For purposes of construing this Agreement, -the terms set forth below shall
have the following meanings:
"Account Executive" shall mean the officer, employee or agent designated by the
Depository ,to handle problems and questions concerning the implementation and
operation of this Agreement.
"Account Transfers" shall mean written, telephonic, telegraphic or oral requests
or orders issued by an Authorized City Representative for the transfer of City
funds on deposit from City accounts maintained at the Depository to other banks
for credit to persons or accounts designated by the Authorized City
Representative.
"Authorized City Representative" means the City Manager or the persons
designated by the City Manager of the City of Corpus Christi by execution of an
Authorization for Depository Accounts, a copy of which is attached hereto as
Addendum A, to perform the duties of the City as required by and set forth in
this Agreement.
"Collateralized Investments" means all investments held by Depository which
Depository is required to pledge securities or interest in them and required by
Article 2529b-1, Vernon's Texas Civil Statutes of this Agreement.
066.610.03.14
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"Deposits" shall mean both time and interest-bearing deposits. Time deposits
shall mean deposits of funds subject to a contract between the City and the
Depository under which the City may not withdraw any of the funds by check or by
other manner until the expiration of a certain period following written notice
of the City's intent to withdraw the funds.
"Total City Balance" means the aggregate sum of principal and accrued interest
to date of all collateralized investments held by Depository.
Article 2
Provision of Investment Deposits
2.1 Investment Deposits. The Depository agrees to accept time or other
interest bearing deposits made by the City during the term of this Agreement.
The time deposits shall be for investment purposes in the form of certificates
of deposit in varying amounts and maturities at rates to be determined by the
Depository's competitive bid submitted in accordance with periodic bid
solicitations conducted by the City. The City reserves the right to invest in
certificates of deposits, government securities, fully collateralized repurchase
agreements or similar instruments authorized by law.
2.2 Authority of Authorized City Representative. An Authorized City
Representative may approve or request bank services as required to deposit and
transfer City funds or otherwise implement this Agreement.
2.3 Account Executive Service. The Depository agrees to assign one bank
officer or employee to coordinate and handle the banking relationship
established under this Agreement with the City.
2.4 Re orts. The Depository shall provide the City a Report of Market
Evaluationoedged Collateral for the prior- month'by the 10th day of the
following month, and quarterly reports of income/condition (required by the
FDIC) by the 10th day fallowing the report°ng deadline for each quarter.
Article 3
Security for Deposits
3.1 Qualification as Depository. Within five days after the date the
Depository is selected as a municipal depository, the Depository shall qualify
by providing security for the municipal funds by pledging securities or
interests in them as provided by Article 2529b-1, Vernon's Texas Civil Statutes.
Only such securities as specifically permitted under this Agreement shall be
acceptable as eligible and lawful security for all deposits made under this
Agreement.
3.2 Permissible Security. The Depository may pledge with the City as
security under this Agreement with the prior approval of an Authorized City
Representative ("Permissible Securities"), the following:
06G.610.03.14
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(a) a bond, certificate of indebtedness, or treasury note of the United
States, or other evidence of indebtedness of the United States that is
guaranteed as to principal and interest by the United States;
(b) a general obligation bond (no revenue bonds) of the State of Texas or
of a county, municipality, independent school district, common school
district, or other school district in Texas;
(c) a bond issued under the federal farm loan acts;
(d) a road district bond;
(e) a bond, pledge, or other evidence of indebtedness issued by the board
of regents of The University of Texas System;
(f) a note or bond secured by mortgages insured and debentures issued by
the Federal Housing Administration;
(g) a bond issued by a municipal corporation in this state which is
secured by a pledge or levy of ad valorem property taxes.
3.3 Representations of Depositor. This Agreement for the pledge of
securities is conditioned upon the Depository to:
(a) faithfully keep the municipal funds and faithfully perform the duties
and obligations imposed by law on the Depository;
(b) honor a transfer request on a time deposit or other interest-bearing
account after the required period of notice; and
(c) account for the City funds as required by law.
A suit on this Agreement for the pledge of securities shall be tried in Nueces
County.
3.4 Amount of Securities. Securities pledged to secure City funds on
deposit in the Depository must have a fair market value equal to the amount of
the Total City Balance. The value of the security is determined by the
Authorized City Representative on behalf of the City, and said determination is
final and binding on the Depository.
3.5 Federally Insured Deposits. The Depository is not required to provida
security for the deposit of City funds to the extent deposits are insured under
12 U.S.C.A, Sections 1811-1832.
3.6 New Security. An Authorized City Representative on behalf of the City
may by written order require the Depository to pledge additional or other
Permissible Securities at any time it is determined to be advisable or necessary
for the protection of the City. If for any reason the Total City Balance with
the Depository exceeds the market value of pledged security, the Depository
shall immediately pledge additional Permissible Securities with the City. The
City may investigate the value of securities pledged by the Depository to secure
City funds. Should the Depository fail to pledge the required Permissible
Securities within five days after the date the Depository is served with a copy
of said order, an Authorized City Representative may transfer a portion or all
City funds on deposit with the Depository to such other municipal depository to
assure that all City funds are adequately collateralized. Failure to provide
new security shall also be sufficient cause to terminate this Agreement.
3.7 Substitution of Securities. The Depository may substitute one type of
security for another if the substituting security meets the requirements of a
Permissible Security and is approved by an Authorized City Representative.
066.610.03.14
3.8 Release of Security. If the securities pledged by the Depository
exceed the amount required under this Agreement, an Authorized City
Representative may release the excess.
3.9 Surrender of Interests on Securities. Upon the request of the
Depository, the City shall surrender, when due, interest coupons or other
evidence of interest on securities deposited by the Depository with the City if
the value of the securities remaining pledged by the Depository are adequate to
meet the requirements of this Agreement.
Article 4
Wire Services
4.1 Telephonic, Telegraphic or Oral Requests for Account Transfers. The
Depository is authorized to honor, execute and charge to such City accounts
designated below all telephonic, telegraphic or oral requests or orders;
(a) for the transfer of funds from such designated City accounts to any
other City bank account, whether such account is with the Depository
or other financial institution; or
(b) for the transfer of funds from such designated City accounts to the
account of or the credit of a third party, whether such third party
account is with the Depository or other financial institution.
All such requests or orders must be properly identified as being made by an
Authorized City Representative in compliance with the Depository's transfer
procedures.
4.2 Records. The City agrees to report any. discrepancies between the
City's records of wire transfers and the Bank statement to the Depository's wire
transfer department in writing within forty-five (45) days after the statement
date;
4.3 Instructions for Transfer. The Depository shall act upon all transfer
requests, including written requests, on the date received, use any means for
the transmission of the funds the Depository may consider suitable. The
Depository shall provide verbal confirmation and written advice to the City of
each transfer.
4.4 Discrepancies/Loss of Interest/Error. In the event there is a loss of
interest or use of funds as a result of a Depository error for failure to
execute a transfer request on the date received, or such other error within the
Depository's control, the Depository agrees that compensation for such loss
shall be corrected, at the option of the Depository, by:
(a) adjusting the aggregate ledger and collected balances of the City
accounts to reflect properly the average balances of the amounts that
would have resulted had no error occurred; or
(b) reimbursement by check at the average federal funds interest rate for
the period and amount in question, computed on a 365 -day basis.
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The compensation provided by this section shall not exceed the loss incurred for
a period not exceeding 61 days from the initial date of a discrepancy (the
notification period for discrepancies) or the date of actual transfer or error
correction whichever comes first.
Article 5
General Provisions
5.1 Confidentiality, Audits and Inspections. Any reports, information,
data or studies given to or assembled by the Depository under this Agreement
shall be kept confidential and shall not be made available to any individual or
organization without the prior written approval of the City. During regular
business hours and as often as the City deems necessary, the Depository will
make available for examination by the City, its duly authorized agent,
accountant, or legal representative, all of its records and data with respect to
all matters covered by this Agreement. The Depository shall permit the City to
audit, examine, and make excerpts or transcripts from such records and to make
audits of all contracts, invoices, materials, and other data relating to the
matters covered by this Agreement.
5.2 Compliance with Laws. The Depository agrees to comply with all
federal, state and local laws, rules, regulations and ordinances. The
Depository represents to have the personnel required and necessary to perform
the services under this Agreement. Said personnel and the Depository are fully
qualified and authorized under federal, state and local law to perform the
services under this Agreement.
5.3 Term. The term of this Agreement shall commence on , and
shall continue for a term of three (3) years or until a successor Depository is
appointed and qualified. The City may by 90 -day written notice terminate this
Agreement. Any deposits accepted by Depository while this Agreement is in
effect shall be subject to the terms and conditions of this Agreement. This
Agreement shall be effective between the parties upon the appointment and
qualification of the Depository for the deposit of City funds.
5.4 'No Endorsement. The Depository shall not advertise or publish,
without City's prior written consent, the fact that the City has entered into
this Agreement, except as may be necessary to comply with proper requests for
information from or filing of reports of federal, state, or local government
agencies.
5.5 Amendment. This Agreement may be amended only by written agreement
executed by the Depository and the City Manager. Upon 90 -day written notice,
the City may alter, amend or modify this Agreement. Should Depository fail to
agree to such terms and conditions, all funds held by the Depository shall be
subject to the preceding Agreement until such funds mature or are transferred to
another duly appointed and qualified depository. In the event any provision
contained herein shall be invalid, illegal, or unenforceable by operation of
law, such provisions shall be of no effect, and this Agreement shall be
construed as if such provision was not a part of this Agreement.
06G.610.03.14
5.6 Notices. Notices provided herein shall be delivered to:
On behalf of the City to:
On behalf of Depository to:
City of Corpus Christi
Director of Finance
P. 0. Box 9277
Corpus Christi, Texas 78469-9277
5.7 Assignment. This Agreement may not be assigned by any party hereto
without the prior written consent of the other party.
5.8 Conflicts of Interest. Except as may otherwise be provided by City
Charter, the fact that an employee or an officer of the City, who is not charged
with the duty of selecting a Depository, is an officer, director, or stockholder
of the Depository shall not disqualify the Depository from serving as a
Depository of the City. The Depository agrees to maintain current, updated
disclosure of information on file with the Director of Finance throughout the
term of this Agreement as may be required by the City Code of Ordinances.
5.9 Equal Employment Opportunity. Depository agrees that during the
performance of this Agreement it will:
(a) treat all applicants and employees without discrimination as to race,
— - color, religion, sex, national origin, marital status, age, or
handicap, and
(b) identify itself as an "Equal Opportunity Employer" in all help wanted
and advertising or request.
The Depository shall be advised of any complaints filed with the City alleging
that the Depository is not an Equal Opportunity Employer. City reserves the
right to consider its reports from its Human Relations Administrator in response
to such complaints.
5.10 Entire Agreement. This Agreement and all Addendums and Exhibits, as
may hereafter be executed, constitute the entire agreement between the parties
and shall supersede all previous negotiations, commitments and contracts.
5.11 Governing Law. To the extent this Agreement is not governed by
applicable federal laws and regulations, this Agreement shall be governed by and
construed in accordance with laws of the State of Texas.
06G.610.03.14
IN WITNESS WHEREOF, the parties have executed this Agreement in duplicate
originals, to be effective as of , 1987.
ATTEST: CITY OF CORPUS CHRISTI
By
Armando Chapa, City Secretary Craig A. McDowell, City Manager
Approved this day of , 1987
By HAL GEORGE, City Attorney
By
Assistant City Attorney "Depository"
By
, its
ADDENDUM A: Authorization for Depository Account
066.610.03.14
ADDENDUM A
Attached to and made a part of the
City of Corpus Christi Investment Depository Agreement
AUTHORIZATION FOR DEPOSITORY ACCOUNTS
I, the undersigned, being the duly appointed and authorized City Manager of
the City of Corpus Christi, hereby designate the officers set forth below as the
duly authorized representatives of the City of Corpus Christi to perform the
duties of Authorized City Representative as required by and set forth in the
City of Corpus Christi Investment Depository Agreement.
The signatures below are the signatures of the Authorized City
Representatives vested with full authority to sign and transact business for the
City including, but not limited to, place and request transfers, request
reports, or authorize other signatories to specific deposit accounts. The
signatures of the officers subscribed below are true and genuine:
Name Title
Juan Garza Asst. City Mgr. -
Admin. Services
Debra J. Andrews Director of Finance
Jorge G. Garza Asst. Director of
Finance
Manual Signature
Rosie Vela Chief Accountant
Dorothea L. Montoya Investments Manager
This Authorization for Depository Accounts is entered into in addition to
and shall not amend, modify, waive, or revoke any of the terms of the City of
Corpus Christi Investment Depository Agreement except as expressly provided
herein.. This authorization is entered into to facilitate the transfer of funds
or administration of the services to be provided pursuant to the City of Corpus
Christi Investment Depository Agreement. It is not intended to empower
Authorized City Representatives to approve or accept amendments, waivers, or new
provisions or terms to the Investment Depository Agreement on behalf of the City
of Corpus Christi. Authorized City Representatives shall continue to be
authorized until such time as Depository receives written notification that said
authorization has been revoked.
THIS AUTHORIZATION FOR DEPOSITORY ACCOUNTS is effective this day of
, 1987.
ATTEST:
By
CITY OF CORPUS CHRISTI
Armando Chapa, City Secretary Craig A. McDowell, City Manager
Approved this day of , 1987
By HAL GEORGE, City Attorney
By
Assistant City Attorney
06G.610a.03.14
THE STATE OF TEXAS §
COUNTY OF NUECES §
Exhibit B
CITY OF CORPUS CHRISTI
MAIN DEPOSITORY AGREEMENT
This City of Corpus Christi Main Depository Agreement (this "Agreement") is
entered into by and between the City of Corpus Christi, Texas, a municipal
corporation having home rule powers (the "City"), and
First City Bank of Corpus Christi, a State banking association (the
"Depository");
IN CONSIDERATION of the mutual benefits to be derived from this Agreement,
and the representations, warranties, covenants, conditions, and agreements
hereinafter set forth, the City and Depository agree as follows:
Article 1
Definitions
For purposes of construing this Agreement, the terms set forth below shall
have the following meanings:
"Account Executive" shall mean the officer, employee or agent designated by the
Depository to handle problems and questions concerning the implementation and
operation of this Agreement.
"Account Transfers" shall mean written, telephonic, telegraphic or oral requests
or orders issued by an Authorized City Representative for the transfer of City
funds on deposit from City accounts maintained at the Depository to other banks
for credit to persons or accounts designated by the Authorized City
Representative.
"Authorized City Representative" means the City Manager or the persons
designated by the City Manager of the City of Corpus Christi by execution of an
Authorization for Depository Accounts, a copy of which is attached hereto as
Addendum A, to perform the duties of the City as required by and set forth in
this Agreement.
"Bank Services" means all services, products, or other items required to be
provided to the City pursuant to this Agreement as more specifically specified
in the attached Addendum B, Bank Services and Fees.
"Collateralized Investments" shall mean all investments held by Depository which
Depository is required to pledge securities or interest in them as required by
Article 2529b-1, Vernon's Texas Civil Statutes or this Agreement.
"Deposits" shall mean both demand deposits and time deposits. Demand deposits
shall mean deposits of funds that may be withdrawn on the demand of the City.
Time deposits shall mean deposits of funds subject to a contract between the
05G.511.03.14
City and the Depository under which the City may not withdraw any of the funds
by check or by other manner until the expiration of a certain period following
written notice of the City's intent to withdraw the funds.
"Operating Accounts" means all accounts held by the City at the Depository
excluding all accounts in which the City acts as trustee, or established for a
quasi -governmental purpose in which the account is under the control of an
instrumentality of the City.
"Quasi -Governmental Accounts" means those accounts in which the City acts as
trustee. Such'accounts include but are not limited to:
Corpus Christi Housing Improvement Corporation (CCHIC);
Corpus Christi Industrial Development Corporation (CCIDC);
Coastal Bend Health Facilities (CBHLTH);
Corpus Christi Health Facilities (CCHLTH);
Corpus Christi Retirement Plan (CGRP); and
Corpus Christi Housing Finance Corporation (CCHFC).
"Sales Tax Allocation Warrants" shall mean the warrants issued to the City of
Corpus Christi by the State of Texas in payment for the reimbursement of the
City sales and use tax allocation.
"Total City Balance" means the aggregate sum of all ledger balances of operating
accounts held by Depository, accounts held by the City as trustee, or
Quasi -Governmental Accounts maintained by the City at the Depository.
"Total City Collected Balance" means the aggregate sum of collected funds of the
Total City Balance held by the Depository.
Article 2 _
Provision of Bank Services
2.1 Bank Services and Fees. The Depository agrees to provide such
services, materials, and other items set forth on Addendum B and City agrees to
pay such fees computed according to the unit prices set forth and described on
Addendum B Bank Services and Fees. Payment for services shall be by written
invoice setting forth the banking services rendered per account and in summary.
A written invoice evidencing the charges for services shall be provided to
the City each month. The City shall have five working days to confirm the
services performed prior to authorization of the debit advice. Fees shall be
allocated among such accounts as designated by an Authorized City
Representative.
At the option of Depository, upon 90 -day prior written notice to the City,
Depository may elect to increase the fees set forth on Addendum B to such amount
not to exceed the proportionate increase of the Consumer Price Index as
determined by the United States Department of Labor, Bureau of Labor Statistics
for the same period of the initial three-year term of this Agreement.
05G.511.03.14
Depository may exercise this option only prior to commencement of the first
one-year option term.
2.2 Authority of Authorized City Representative. An Authorized City
Representative may approve or request bank services as required to deposit and
transfer City funds or otherwise implement this Agreement.
2.3 Deposits. The Depository agrees to accept all deposits made by the
City during the term of this Agreement. The City reserves the right to invest
in certificates of deposits, government securities, fully collateralized
repurchase agreements or similar instruments authorized by law. The City also
reserves the right to exclude from the terms of this Agreement, deposits made on
behalf of the Corpus Christi Firemen's Relief and Retirement Fund and any other
special funds which are controlled by entities separate and apart from the City
but of which the City is a member or participant.
2.4 Deposit Locations. The City will have the option to make deposits at
the motorbank, main bank and automated teller machine locations. The use of
automated teller machines shall be restricted to deposit transactions. A
deposit ticket shall be presented to the Depository with each Deposit.
Depository agrees to route specified deposit ticket copies to the City on a
daily basis. The Depository agrees to accept Deposits for ledger credit up
until 5:00 p.m. each banking day for the benefit of the City at the main bank or
motorbank locations. Ledger credit for deposits at automated teller machine
locations shall be given for deposits prior to 2:30 p.m. each day.
2.5 Account Executive Service. The Depository agrees to assign one bank
officer or employee to coordinate and handle the banking relationship
established under this Agreement with the City.
2.6 Wire Transfers. Except for automated clearing house payments, the
Depository shall notify by telephone an Authorized City Representative of all
incoming wire transfers or other electronic payments made to City accounts. The
City shall be notified of automated clearing house payments by memo posting on
the daily bank link report. Except for wire transfers by written request issued
by an Authorized City Representative, all outgoing wire transfers shall be
requested and verified as provided under Article 4, Wire Services.
2.7 Bank Link. The previous day's ledger, collected, float, debit/credit
detail for the total City relationship, as well as by individual account, needs
to be accessed by 8:30 a.m. daily. As additional accounts may be required, the
new accounts shall be linked into the total relationship. Prompt notification
by 9:30 a.m. to an Authorized City Representative of the City shall be required
for any improvement or deprovement in excess of $5,000.00.
2.8 Reports. The Depository shall provide the City a Report of Market
Evaluation of Pledged Collateral for the prior month by the 10th day of the
following month, and quarterly reports of income/condition (required by the
FDIC) by the 10th day following the reporting deadline for each quarter.
2.9 Transfer from Water Account. A daily transfer from the Water Account
shall be required by written notification to the Account Executive. Copies of
the entries made shall be sent to an Authorized City Representative by the next
banking day.
050.511.03.14
2.10 Insufficient Funds (NSF)/Returned Items. A complete description
shall be provided on all NSF/returned items deposited in City accounts. The
description should include the Payor's name and applicable City department.
Each NSF item shall be processed twice before being returned. All NSF items
shall be charged back to the Combined Operating Account except for checks
deposited by the Public Utilities Department of the City. Public Utilities
shall "purchase" the NSF items by 9:30 a.m. each morning.
2.11 Bank Statements. All bank statements except Payroll shall be on a
monthly cycle ending on the last business day of each month. The City shall
pick up all bank statements no later than the third working day following the
bank cut-off date. Payroll is bi-weekly and the bank cut-off dates are provided
on the attached Addendum C, City Payroll Calendar. A bank statement checklist
shall be completed by the Depository and sent with the bank statements.
2.12 Fine -sorting Checks/Deposit Tickets. Any account that has more than
100 checks shall be fine -sorted. All Combined Operating Account deposit tickets
shall be sorted in collection center number order.
2.13 Bank Reconcilements. Automated bank reconcilements are required for
the Vouchers Payable and Payroll checking accounts. The general ledger tapes
will be delivered to the Depository. Reconcilements shall be available for pick
up by the City by the third working day following the day the tape was delivered
to the Depository. "Add/delete" adjustment forms for Payroll and Vouchers
Payable shall be provided by the Depository.
Article 3
Security for Deposits
3.1 qualification as Depository. Within five days after the date the
Depository is selected as the municipal depository, the Depository shall qualify
by providing security for the municipal funds by pledging securities or
interests in them as provided by Article 2529b-1, Vernon's Texas Civil Statutes.
Only such securities as specifically permitted under this Agreement shall be
acceptable as eligible and lawful security for all deposits made under this
Agreement.
3.2 Permissible Security. The Depository may pledge with the City as
security under this Agreement with the prior approval of an Authorized City
Representative ("Permissible Securities"), the following:
(a) a bond, certificate of indebtedness, or treasury note of the United
States, or other evidence of indebtedness of the United States that is
guaranteed as to principal and interest by the United States;
(b) a general obligation bond (no revenue bonds) of the State of Texas or
of a county, municipality, independent school district, common school
district, or other school district in Texas;
(c) a bond issued under the federal farm loan acts;
(d) a road district bond;
(e) a bond, pledge, or other evidence of indebtedness issued by the board
of regents of The University of Texas System;
(f) a note or bond secured by mortgages insured and debentures issued by
the Federal Housing Administration;
05G.511.03.14
(g) a bond issued by a municipal corporation in this state which is
secured by a pledge or levy of ad valorem property taxes.
3.3 Representations of Depository. This Agreement for the pledge of
securities is conditioned upon the Depository to:
(a) faithfully keep the municipal funds and faithfully perform the duties
and obligations imposed by law on the Depository;
(b) pay on presentation all checks drawn on a demand deposit account with
the Depository;
(c) pay all checks drawn on a time deposit account after the required
period of notice; and
(d) account for the City funds as required by law.
A suit on this Agreement for the pledge of securities shall be tried in Nueces
County.
3.4 Amount of Securities. Securities pledged to secure City funds on
deposit in the Depository must have a market value equal to the lesser of six
million dollars ($6,000,000) or the Total City Balance. The value of the
security is determined by the Authorized City Representative on behalf of the
City, and said determination is final and binding on the Depository.
3.5 Federally Insured Deposits. The Depository is not required to provide
security for the deposit of City funds to the extent deposits are insured under
12 U.S.C.A. Sections 1811-1832.
3.6 New Security. An Authorized City Representative on behalf of the City
may by written order require the Depository to pledge additional or other
Permissible Securities at any time it is determined to be advisable or necessary
for the protection of the City. If for any reason the Total City Balance on
deposit with the Depository exceeds the market value of pledged security, the
Depository shall immediately pledge additional Permissible Securities with the
City. The City may investigate the value of securities pledged by the
Depository to secure City funds. Should the Depository fail to pledge the
required Permissible Securities within five days after the date the Depository
is served with a copy of said order, the City Council may select a new
depository as required by law and terminate this Agreement.
3.7 Substitution of Securities. The Depository may substitute one type of
security for another if the substituting security meets the requirements of a
Permissible Security and is approved by an Authorized City Representative.
3.8 Release of Security. If the securities pledged by the Depository
exceed the amount required under this Agreement, an Authorized City
Representative may release the excess.
3.9 Surrender of Interests on Securities. Upon the request of the
Depository, the City shall surrender, when due, interest coupons or other
evidence of interest on securities deposited by the Depository with the City if
the value of the securities remaining pledged by the Depository are adequate to
meet the requirements of this Agreement.
05G.511.03.14
Article 4
Wire Services
4.1 Telephonic, Telegraphic or Oral Requests for Account Transfers. The
Depository is authorized to honor, execute and charge to such City accounts
designated below all telephonic, telegraphic or oral requests or orders;
(a) for the transfer of funds from such designated City accounts to any
other City bank account, whether such account is with the Depository
or other financial institution; or
(b) for the transfer of funds from such designated City accounts to the
account of or the credit of a third party, whether such third party
account is with the Depository or other financial institution.
All such requests or orders must be properly identified as being made by an
Authorized City Representative in compliance with the Depository's transfer
procedures.
4.2 Records. The Depository shall record all telephonic instructions from
the City received by the Depository's wire transfer department and retain the
recordings for sixty-one (61) days (the period for City notification of
discrepancies) following such requests. The City agrees to report any
discrepancies between the City's records of these transactions and the Bank
statement to the Depository's wire transfer department in writing within
forty-five (45) days after the statement date;
4.3 Instructions for Transfer. The Depository shall act upon all transfer
requests, including written requests, on the date received, use any means for
the transmission of the funds the Depository may consider suitable. The
Depository shall provide verbal confirmation and written advice to the City of
each transfer.
4.4 Discrepancies/Loss of Interest/Error. In the event there is a loss of
interest or use of funds as a result of a Depository error for failure to
execute a transfer request on the date received, or such other error within the
Depository's control, the Depository agrees that compensation for such loss
shall be corrected, at the option of the Depository, by:
(a) adjusting the aggregate ledger and collected balances of the City
accounts to reflect properly the average balances of the amounts that
would have resulted had no error occurred; or
(b) reimbursement by check at the average federal funds interest rate for
the period and amount in question, computed on a 365 -day basis.
The compensation provided by this section shall not exceed the loss incurred for
a period not exceeding 61 days from the initial date of a discrepancy (the
notification period for discrepancies) or the date of actual transfer or error
correction whichever comes first.
4.5 Designated Accounts. The City hereby designates the Combined
Operating, Payroll, Water, Combined Bond Funds, and Vouchers Payable Accounts as
the designated accounts. All transfer requests under this section will at no
05G.511.03.14
time exceed the aggregate ledger balance of the Total City Balance. The City
agrees to supply the Depository, in addition to Addendum A, all other
information that the Depository may reasonably request, including but not
limited to: money amounts, accounts to be effected, date of transfers,
supplemental instructions, and further evidence of any Authorized City
Representative's authority to transfer funds or to consummate a wire transfer.
Article 5
Other Services
5.1 Night Depository Service. The Depository shall provide lockable money
bags for purchase by the City for making nightly deposits at Depository
facilities. Nightly deposits shall be enclosed in lockable money bags and
contain appropriate memorandum describing in reasonable detail the contents of
such money bags. The contents shall include deposit tickets, currency, or
checks. The Depository shall unlock and open all money bags delivered to it and
check and count the contents contained therein, and deposit the contents to the
credit of the City. Empty money bags shall be returned as specified by an
Authorized City Representative.
5.2 Bailor/Bailee Relationship. For night deposits, no relationship of
debtor or creditor between the City and the Depository shall arise or exist as
to any money, checks, or other contents contained in such money bags until the
contents have been deposited in the Depository in the ordinary course of
business. Until such deposit is credited to the City or evidenced by issuance
of duplicate deposit slips or deposit receipts, the relationship between the
City and the Depository as to all contents shall be that of Bailor and Bailee of
such property. Depository shall be responsible and liable to the City for use
of that degree of care required under the laws of Texas for Bailees having
custody of property of other persons.
5.3 Extension of Temporary Credit. The Depository agrees to extend credit
and make loans to the City at an annual interest rate equal to 100 percent
(100%) of the "prime rate" as published in the most recent issue of the Wall
Street Journal prior to the extension of credit. No overdraft charges shallTie
assessed on any City account so long as the Total City Collected Balance remains
positive. Should the Total City Collected Balance become negative, the City
shall pay overdraft charges in an amount equal to the negative balance
multiplied by the daily interest rate established by this section for temporary
credit. The aggregate total of such loans shall not exceed the maximum amount
which the Depository is legally authorized to lend. As of the date of this
Agreement, the maximum lending limit of the Depository is $4,200,000.
5.4 Sales Tax Allocation Warrants. The Depository shall establish a
relationship with a bank in Austin for the collection of Sales Tax Allocation
Warrants issued to the City of Corpus Christi Texas in payment for the
reimbursement of the City Sales and Use Tax allocation.
The City shall provide a letter of authorization for the Depository to
designate a bank in Austin as the City's agent to collect the warrants, a copy
of which is attached hereto as Addendum D. Said authorization letter shall be
delivered to the Tax Allocation Section, Revenue Accounting Division Office of
05G.511.03.14
the Comptroller of Public Accounts. The letter shall set forth the list of
personnel who shall serve as couriers and be authorized to pick up the
allocation warrants and otherwise insure proper handling of the warrants. The
designated bank shall be authorized by the City to endorse checks issued to the
City of Corpus Christi, Texas on behalf of the City for deposit to an account in
the name of the City of Corpus Christi at the Depository.
Funds from this account shall be wired to the Depository on the same day as
the State releases the Sales Tax Allocation Warrants. An Authorized City
Representative is duly authorized pursuant to this Agreement to sign and
acknowledge said authorization letter designating the agent bank in Austin. The
fee for said service shall be as provided in Addendum B Bank Services and Fees.
5.5 Safekeeping Service. The Depository agrees to provide a safekeeping
receipt at no cost to the City for collateralized investments purchased from or
through the Depository and to provide written confirmation of the investment
transactions.
Article 6
General Provisions
6.1 Automated Clearing House Membership.
. The Depository is a
participating bank in the Southwestern AutomatedClearing House Association.
The Depository acknowledges that it shall comply with the rules, as may be
amended, of said Association for the notification, posting, or transfer of funds
by means of electronic credit transfer facilities. The Depository shall be able
to comply with such procedures of the association including, but not limited to,
such matters as input format, data acceptance criteria, return item handling,
adjusting entries, and dishonored entries.
6.2 Charging of Fees. The Depository is hereby authorized to charge the
City accounts upon direct authorization by a Authorized City Representative for:
(a) fees owed to the Bank,
(b) correction of mathematical errors, and
(c) chargebacks under this Agreement,
The Depository or the City shall not change the schedule of fees during the
initial three-year term of this Agreement as listed by Addendum B.
6.3 Confidentiality, Audits and Inspections. Any reports, information,
data or studies given to or assembled by the Depository under this Agreement
shall be kept confidential and shall not be made available to any individual or
organization without the prior written approval of the City. During regular
business hours and as often as the City deems necessary, the Depository will
make available for examination by the City, its duly authorized agent,
accountant, or legal representative, all of its records and data with respect to
all matters covered by this Agreement. The Depository shall permit the City to
audit, examine, and make excerpts or transcripts from such records and to make
audits of all contracts, invoices, materials, and other data relating to the
matters covered by this Agreement.
056.511.03.14
6.4 Recalls, Debit Adjustments and other Adjustments. The Depository
shall process any recall request or adjustment upon verbal authorization by an
Authorized City Representative followed by written confirmation by the City the
following work day, if possible, but no later than four (4) working days after
the request is placed.
6.5 Compliance with Laws. The Depository agrees to comply with all
federal, state and local laws, rules, regulations and ordinances. The
Depository represents to have the personnel required and necessary to perform
the services under this Agreement. Said personnel and the Depository are fully
qualified and authorized under federal, state and local law to perform the
services under this Agreement.
6.6 Indemnification. The Depository shall fully indemnify, save and hold
harmless the City of Corpus Christi, its officers, employees, and agents against
any and all liability, damage, loss, claims, demands, and actions of any nature
whatsoever on account of personal injuries (including, without limitation on the
foregoing: workers' compensation and death claims), or property loss or damage
of any kind whatsoever, which arise out of or are in any manner connected with:
(a) the Depository's failure to fulfill any of the terms and conditions of
this Agreement;
(b) any violation by Depository of any applicable federal or state law,
rules, or regulation resulting from any act or omission of the
Depository or its agents and employee; or
(c) any dispute concerning the quality, condition or delivery of any
merchandise, or the quality of performance of any service rendered
pursuant to this Agreement.
The Depository shall, at its own expense, investigate all such claims and
demands, attend to their settlement or other disposition, defend all actions
based thereon and pay all charges of attorneys and all other costs and expenses
of any kind arising from any such liability, damage, loss, claims, demands, and
actions. This indemnification shall not be construed to require indemnification
of such injury, loss or damage which may be caused or arise from the sole
negligence of the City, its officers, employees, and agents.
The City agrees to indemnify, save and hold harmless, defend or pay the
defense cost of the Depository, its officers, agents, and employees from and
against any and all lawsuits, claims, demands, liabilities, losses or expenses,
including court costs, attorney and expert witness fees, from or arising out of
the sole negligence of the City under the terms of this Agreement.
6.7 Term. The term of this Agreement is to commence on
1987 and continue for a term of three years or until a successor Depository is
appointed and qualified. Except during the first year of service under this
Agreement, the City may by 90 -day written notice to Depository terminate this
Agreement during the remainder of the initial term and any option terms. Upon
completion of the intial term of three years, either party may elect to
terminate any option term provided herein upon 90 -days prior written notice.
Unless terminated, this Agreement shall automatically renew for two successive
option terms of one-year each. The City shall continue to have the right to
terminate this Agreement upon 90 -day written notice during any option term.
05G.511.03.14
Upon termination of this Agreement, all finished or unfinished documents,
data, studies, or reports prepared by the Depository, at the option of the City,
shall be delivered to the City and become the property of the City.
6.8 Duties after Termination. All obligations of the parties made or
incurred or existing under this Agreement as of the date of termination with
respect to transactions initiated prior to the effective date of termination
shall survive such termination, including but not limited to, Depository's
obligation to retain duplicates of transaction receipts and credit slips and any
continuing obligation of the Depository with respect to chargebacks.
6.9 No Endorsement. The Depository shall not advertise or publish,
without City's prior written consent, the fact that the City has entered into
this Agreement, except as may be necessary to comply with proper requests for
information from or filing of reports of federal, state, or local government
agencies.
6.10 Amendment. This Agreement may be amended only by written agreement
executed by the Depository and the City Manager. In the event any provision
contained herein shall be invalid, illegal, or unenforceable by operation of
law, such provisions shall be of no effect, and this Agreement shall be
construed as if such provision was not a part of this Agreement.
6.11 Notices. Notices provided herein shall be delivered to:
On behalf of the City to: City of Corpus Christi
Director of Finance
P. 0. Box 9277
Corpus Christi, Texas 78469-9277
On behalf of Depository to: Frances Burchfield
Senior Vice -President and Cashier
P. 0. Box 4666
Corpus Christi, Texas 78409
6.12 Assignment. This Agreement may not be assigned by any party hereto
without the prior written consent of the other party.
6.13 Force Majeure. Neither party shall be responsible for losses
resulting if the fulfillment of any terms or provisions of this Agreement are
delayed or prevented by any cause not within the control of the party whose
performance is interfered with, and which, by the exercise of reasonable
diligence, said party is unable to prevent.
6.14 Conflicts of Interest. Except as may otherwise be provided by City
Charter, the fact that an employee or an officer of the City, who is not charged
with the duty of selecting a Depository, is an officer, director, or stockholder
of the Depository shall not disqualify the Depository from serving as a
Depository of the City. The Depository agrees to maintain current, updated
disclosure of information on file with the Director of Finance throughout the
term of this Agreement as may be required by the City Code of Ordinances.
05G.511.03.14
6.15 Equal Employment Opportunity. Depository agrees that during the
performance of this Agreement it will:
(a) treat all applicants and employees without discrimination as to race,
color, religion, sex, national origin, marital status, age, or
handicap, and
(b) identify itself as an "Equal Opportunity Employer" in all help wanted
and advertising or request.
The Depository shall be advised of any complaints filed with the City alleging
that the Depository is not an Equal Opportunity Employer. City reserves the
right to consider its reports from its Human Relations Administrator in response
to such complaints.
6.16 Entire Agreement. This Agreement and all Addendums and Exhibits, as
may hereafter be executed, constitute the entire agreement between the par -ties
and shall supersede all previous negotiations, commitments and contracts.
6.17 Governing Law. To the extent this Agreement is not governed by
applicable federal laws and regulations, this Agreement shall be governed by and
construed in accordance with laws of the State of Texas.
IN WITNESS WHEREOF, the parties have executed this Agreement in duplicate
originals, to be effective as of , 1987.
ATTEST: CITY OF CORPUS CHRISTI
By By
Armando Chapa, City Secretary Craig A. McDowell, City Manager
Approved this day of , 1987
By HAL GEORGE, City Attorney
By FIRST CITY BANK OF CORPUS CHRISTI
Assistant City Attorney "Depository"
By
J. Davie Cissna,
its Executive Vice -President
ADDENDUM A: Authorization for Depository Account
ADDENDUM B: Bank Services and Fees
ADDENDUM C: Payroll Calendar
ADDENDUM D: Authorization for Receipt of Sales Tax Allocation Warrants
05G.511.03.14
Corpus Christi, Texas
9Y-4.- day of , 198 7
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance
or resolution, an emergency exists requiring suspension of the Charter rule
as to consideration and voting upon ordinances or resolutions at three
regular meetings; I/we, therefore, request that you suspend said Charter rule
and pass this ordinance or resolution finally on the date it is introduced,
or at the present meeting of the City Council.
Respectfully, Respectfully,
99.045.01
Council Members
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
The above ordinance was passed by the following vote:
Betty N. Turner
David Berlanga, Sr.
Leo Guerrero
Frank Mendez
Clif Moss
Bill Pruet
Mary Rhodes /�
Mary Pat Slavik !9f 11(
Linda Strong
p�O�C
ab?r(
19778