HomeMy WebLinkAbout19786 RES - 06/04/1987A RESOLUTION
AUTHORIZING THE EXECUTION OF AN INVESTMENT DEPOSITORY
AGREEMENT WITH MBANK 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 an
investment depository agreement substantially in the form attached hereto as
Exhibit A with MBank Corpus Christi.
ATTEST:
City'Secretary
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
APPROVED: yf?, DAY OF �ie.�,t , 19 P7
HAL GEORGE, CITY ATTORNEY
By
Assistant
05P.091.01
City ttorney
sus MICROFILMED
THE STATE OF TEXAS
COUNTY OF NUECES
§
§
EXHIBIT A
CITY OF CORPUS CHRISTI
INVESTMENT DEPOSITORY AGREEMENT
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.
06G.610.03.14
"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 mada 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 Repoorts. 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.
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
(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 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 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.
06G.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.
066.610.03.14
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.
066.610.03.14
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 Governin 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
Juan Garza
Debra J. Andrews
Jorge G. Garza
Rosie Vela
Dorothea L. Montoya
Title
Asst. City Mgr. -
Admin. Services
Director of Finance
Asst. Director of
Finance
Chief Accountant
Investments Manager
Manual Signature
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: CITY OF CORPUS CHRISTI
By
Armando Chapa, City Secretary Craig A. McDowell, City Manager
Approved this day of , 1987
By HAL GEORGE,Tity Attorney
By
Assistant City Attorney
06G.610a.03.14
Corpus Christi, Texas
g'Lday of ‘;),c.�—x,,e , 198
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,
MAYOR
Council Members
THE CITY OF CORPUS CHRISTI, TEXAS
The above ordinance was passed by the following vote:
Betty N. Turner
David Berlanga, Sr.
Leo Guerrero 0'
Frank Mendez
Clif Moss
Bill Pruet
Mary Rhodes
Mary Pat Slavik
Linda Strong
99.045.01
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