Ordinance No. 5,102106
ORDINANCE NO. 5102
® AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, SELECTING A CITY DEPOSITORY; AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE AND ATTEST TO A CONTRACT
WITH THE SELECTED DEPOSITORY; AND PROVIDING FOR THE
EFFECTIVE DATE HEREOF.
® WHEREAS, pursuant to the provisions of TEX.L.GOV'T.CODE ANN.
§ 105.011, the City of Baytown is authorized to receive
applications for the custody of City funds from any banking
corporation, association, or individual banker doing business
within the City that may desire to be selected as depository of
the City; and
WHEREAS, notice that such applications would be received on
the 19th day of September, 1988, was published pursuant to
TEX.L.GOV'T.CODE ANN. 5 105.012, on the 5th and 12th day of
September, 1988, which is not less than one week nor more than
four weeks before such date, and notice was personally given to
each banking corporation in the City of Baytown; and
WHEREAS, pursuant to TEX.L.GOV'T.CODE ANN. S 105.014, the
governing body is to select as depository the banking
corporation, association, or individual banker offering the most
to favorable terms and conditions for the handling of the City's
funds; and
WHEREAS, the City of Baytown did receive applications from
banking corporation, associations, and/or individual bankers
doing business within the City to serve as the depository of the
City funds; and
WHEREAS, the City Council deems that Baytown State Bank has
offered the most favorable terms and conditions for the handling
of such funds; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council hereby finds that Baytown
State Bank has offered the most favorable terms and conditions
for the handling of the City's funds.
Section 2: That Baytown State Bank is selected as the
Depository of the City of Baytown, Texas, consistent with the
terms and provisions of its application.
Section 3: That the Mayor and City Clerk are hereby
® authorized to execute and attest to a contract with Baytown State
Bank, said contract setting forth terms and conditions consistent
® with the application that was submitted. The contract is attached
® as Exhibit "A," and made a part hereof.
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Section 4: This ordinance shall take effect from and after
its passage.
INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown, this the 22nd day of
September, 1988.
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EMMETT 0. HUTTO, MX OR
ATTEST:
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EILEEN_P- HALL, City Clerk
ANDALL B. STR NG, City orney
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DEPOSITORY CONTRACT
CITY OF BAYTOWN
THE STATE OF TEXAS
COUNTY OF HARRIS
® This Contract and Agreement is made and entered into by and
between the City of Baytown, a municipal corporation, hereinafter
sometimes referred to as "City," located in the County of Harris,
State of Texas, and Baytown State Bank, Harris County, Texas,
hereinafter called "Bank" or "Depository Bank."
W I T N E S S E T H:
WHEREAS, bids were received in response to an Invitation to
Bid on Depository Contract for the City of Baytown; and
WHEREAS, Baytown State Bank was duly selected, qualified,
and designated as Depository Bank for the deposits of City, to
serve in such capacity for the term commencing on the 1st day of
October, 1988, and ending on the 30th day of September, 1989.
NOW THEREFORE, it is agreed by the parties hereto, as
follows:
1. That pursuant to the action taken by City on the 22nd day
of September, 1988, Baytown State Bank is selected and
designated as Depository Bank of City, for the period
from the 1st day of October, 1988, to the 30th day of
September, 1989, and thereafter until the successor
depository shall have been duly selected and qualified
according to law.
® 2. That in consideration of said election as Depository
Bank, the said Depository Bank covenants and agrees to
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faithfully perform all of the duties thereof, as provided
by the laws of the State of Texas and will safely keep
and faithfully disperse all funds coming into it as
depository, and faithfully pay over to the successor, all
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funds remaining in the depository, and does guarantee and
indemnify City against all loss, cost or expense,
including a reasonable attorney's fee, arising out of or
related to the failure to perform duties imposed by law
or this Contract.
The term "funds" shall be considered to mean all cash,
securities and investments, sinking funds, trust funds,
and other funds or assets that may come into the
possession of said Bank.
3. Bank states that it is a banking institution chartered
under the laws of the United States or of the State of
Texas.
4. The Depository Bank agrees to pay to City interest on
time deposits of $100,000.00 or more at a rate equal to
the interest rate for U. S. Treasury Bills of like
maturity, plus zero (0) percentage points. The interest
rate of U. S. Treasury Bills to be used in determining
the total interest rate shall be the rate for treasury
bills at the close of business on the previous day as
published in the "yield" column under Treasury Issues in
the WALL STREET JOURNAL; and such rate shall remain in
effect until 5:00 p.m. of the day it is published. The
total interest rate to be paid on each time deposit will
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be determined on the deposit date and will remain
unchanged for the term of that deposit. Calculation of
interest shall be paid on a 360 -day simple interest basis
and shall be paid on each time deposit upon maturity.
Maturity dates for investments will be set by the City to
meet expected cash needs of the City.
5. No time deposit that carries a maturity date beyond the
date prescribed for termination of the contract will be
placed with the Bank; however, in the event time deposits
shall mature subsequent to the date of the termination of
the contract, all deposits previously invested may, at
the election of City, remain on deposit until maturity.
6. The Bank shall furnish monthly statements or statements
®
at other special intervals as requested by City or its
designated accountant and/or auditor, showing the debits
and credits and balance in each account on deposit. The
postings to each account shall be an individual posting
of each debit and credit and other matters of banking
routine shall be handled in a manner satisfactory to
City. The Bank also agrees to provide the following
services free of charge:
(a) Night depository service, including keys and
bags;
(b) Safety deposit box service;
(c) Coin wrappers and money straps;
(d) Certified and/or cashier's checks;
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(e) Checks of type, quality and quantity specified by
City;
(f) Coded form deposit slips;
(g) Wire transfers;
(h) Delivery of deposit slips to the City for all
funds deposited directly to City accounts no
later than the following business day after the
deposit;
(i) Will consider all City accounts as one account
for the purpose of determining if an overdraft
condition exists. An individual City Account
overdrawn by the City, when paid by the Bank,
shall be considered a legally created general
obligation of the City;
(j) A monthly account analysis must show, at a
minimum, the account number, period covered,
average ledger balance, average collection
balance, and services rendered (must include type
and quantity of the service); and
(k) Have the Trustee Bank provide directly to the
City a report certifying the current market value
of all pledged securities. Such report is to be
provided each ninety (90) days. The First Report
will be for market value as of October 31, 1988,
and all other reports will be for the ninetieth
day from the previous report if the ninetieth day
falls on a non - business day. The report will be
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for the first business day after the ninetieth
day.
7. The Bank shall pledge to City with a bank of safekeeping
(Trustee Bank), acceptable to City "approved securities"
in an amount (based on current market value, not par
value) sufficient to adequately protect the funds of City
deposited with said Bank. Securities shall be accepted
at their current market value, and the total securities
pledged shall have market value of not less than One
Hundred Percent (100 %) of the funds secured at all times.
Should the value of the securities pledged ever be less
than One Hundred Percent (100 %) of the funds secured, the
Bank, within five (5) days notice of said default, shall
® cause additional securities to be deposited in such
amounts as to restore the total securities pledged to One
Hundred Percent (100 %) of the funds secured. The Bank
shall have the right and privilege of substituting
approved securities upon obtaining the written approval
of City, which shall not be unreasonably withheld. The
term "approved securities" as used herein shall mean and
include direct obligations of the United States of
America, bonds of any agency of the United States which
are unconditionally guaranteed as to principal and
interest by the United States, bonds of the State of
Texas or of any county, school district, city or town or
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State
of Texas
that have
been rated "A"
or better by
Moody's
Investors
Service
and that mature
in less than
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ten (10) years from the date pledged, or other securities
provided by TEX.L.GOV'T.CODE ANN. § 105.034. City must
approve all securities prior to their being pledged.
City may use as many as five (5) days for the approval of
said substitution. The Bank will execute a Safekeeping
Agreement, in a form as attached hereto and marked
Exhibit "A." Securities may only be released from the
banking institution holding said securities in
safekeeping (Trustee Bank), by a release in a form which
shall be provided by City.
8. In the event City shall desire to convert a part or all
of the public funds invested under this Contract, to
demand deposits or to cash, the Bank agrees to make such
funds available without delay, subject to regulations
imposed by appropriate bank regulatory authorities; and
City agrees that upon payment of the funds to City, it
shall provide a release of the bonds or securities in an
amount proportionate to the funds withdrawn, subsequent
to said withdrawal, after said funds have been credited
or cashier's checks issued thereon have been duly paid.
9. In the event City shall deposit public funds with the
bank which would exceed the reasonable market value of
the securities pledged by the Bank, then the undersigned
Bank agrees, within forty -eight (48) hours thereafter, to
deliver to the Finance Director of the City, in the form
provided by City, a list of additional securities that
are to be deposited with the Trustee Bank. In the event
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the sum on deposit with the Bank is reduced to less than
the bonds on deposit with the Trustee Bank, the City does
agree to release such excess bonds on deposit with the
Trustee Bank, by the Finance Director of the City
notifying the Trustee Bank, in writing, of the agreement
to release such bonds, and in the appropriate amount.
10. The Bank covenants and agrees that the Finance Director
of the City shall not be required nor requested to
execute a release of bonds held on deposit pursuant to
the Safekeeping Agreement unless a bona fide exchange of
collateral bonds has been approved by the Finance
Director of the City or until such time as all monies,
including principal and interest secured by the deposit
of bonds in the Trustee Bank, have been paid to City and
a copy of the cashier's check dated not more than thirty
(30) days prior to the date of such release, duly
endorsed by the Finance Director of the City and
cancelled, has been attached and made a part of the
release of City. In addition, the Finance Director of
the City shall release any excess collateral upon request
by the Bank.
11. The Bank covenants and agrees that in the event of the
terms, covenants, or conditions of the bid document, this
Contract document, or the Safekeeping Agreement, are in
any way breached or violated or for any reason the Bank
®
has failed to perform under the terms and conditions of
said documents and/or agreements, City reserves the right
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to terminate this Contract or any agreement entered into
subsequent to or by reason of the bid previously
submitted by the Bank and shall have the option of
withdrawing time deposits from the Bank, including
®
principal and accrued interest, or in the alternative to
allow said funds to remain on deposit until maturity.
Failure by City at any time or instance to exercise any
of its rights under the terms, covenants, or conditions
of the bid documents, this Contract document, or the
Safekeeping Agreement, shall not constitute or be
construed to constitute a waiver of any of City's rights
as stated herein.
12. The Bank certifies that it is not disqualified from
bidding and becoming the depository for City by reason of
one or more of its officers, directors, and stockholders
who own more than 10 percent of the bank's outstanding
capital stock, being on City Council of the City of
Baytown, and further that no officer, director or
stockholder voted or participated in the proceedings
whereby the Bank was selected as depository.
13. The Parties covenant and agree that the Bank shall be the
sole and single depository of City for the term of the
Contract, and City shall not maintain time or demand
accounts (other than bond interest and sinking fund
accounts) in any other financial institution. The City
may, however, invest funds in direct debt securities of
the United States, and debt securities considered to be
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ATTEST:
Secretary
ATTEST:
EILEEN P. HALL, City Clerk
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BAYTOWN STATE BANK
By
President
CITY OF BAYTOWN
B
EMMETT 0. HUTTO, Mayor
"Yield Restricted" by
the United States
Internal Revenue
Service which may be
purchased directly
from the issuer
or through a broker.
IN WITNESS WHEREOF, witness the signature of
the President of
Baytown State Bank as attested
to by its Secretary, and the Mayor
of City of Baytown as attested to by its
City Clerk, in
duplicate, on this, the
day of
,
1988.
ATTEST:
Secretary
ATTEST:
EILEEN P. HALL, City Clerk
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BAYTOWN STATE BANK
By
President
CITY OF BAYTOWN
B
EMMETT 0. HUTTO, Mayor
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