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HomeMy WebLinkAbout19788 RES - 06/04/1987A RESOLUTION AUTHORIZING THE EXECUTION OF AN INVESTMENT DEPOSITORY AGREEMENT WITH SOUTHERN NATIONAL BANK. 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 Southern National Bank. ATTEST: A.43 City Secretary MAYOR THE C TY OF CORPUS CHRISTI, TEXAS APPROVED: Y94;DAY OF.� , 194n7 HAL GEORGE, CITY ATTORNEY By .lire-► Assis ant City Attorney 05P.091.01 19798 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,•theterms 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 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 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. 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 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) 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 Cit,, and said determination is final and binding on the Depository. - 3.5 Federally Insured Deposits. The Depository is not required to pro`iide 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 an•y' 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: City of Corpus Christi Director of Finance P. 0. Box 9277 Corpus Christi, Texas 78469-9277 On behalf of Depository to: 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 GoverningLaw. To the extent this Agreement is not governed by applicable federal lws 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 06G.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 Title Asst. City Mgr. - Admin. Services Director of Finance Asst. Director of Finance Chief Accountant Dorothea L. Montoya 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: 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 Corpus Christi, Texas day of -4-4—'4—e. , 19871 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, Council Members • --'t--tj(4L)4d/ MA OR THE56 CI Y 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 Linda Strong 99.045.01 :19'