Ordinance No. 5,793910228 -12
ORDINANCE NO. 5793
AN ORDINANCE APPROVING THE BAYTOWN AREA WATER
AUTHORITY'S SELECTION OF A DEPOSITORY FOR THE
AUTHORITY'S FUNDS.
WHEREAS, pursuant to the provisions of House Bill No. 967
enacted by the 63rd Legislature of the State of Texas, the Board
of Directors of the Baytown Area Water Authority is authorized,
with prior approval of the City Council of the City of Baytown,
to select a depository for the funds of the Authority; and
WHEREAS, after due notice, applications for selection as the
Authority's depository were received; and
WHEREAS, the Board of Directors of the Baytown Area Water
Authority found that the application of the Citizens Bank and
Trust Company offers the most favorable terms and conditions for
the handling of the Authority's funds, and subject to approval of
City Council, has selected the Citizens Bank and Trust Company as
the depository for the Authority's funds; and
WHEREAS, the City Council of the City of Baytown concurs
that the Citizens Bank and Trust Company has offered favorable
terms and conditions for the handling of the Authority's funds
and wishes to approve its selection; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown
hereby approves the selection of the Citizens Bank and Trust
Company as depository for the Baytown Area Water Authority.
Section 2: This ordinance shall take effect immediately
from and after its passage by the City Council of the City of
Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the
City Council of the City of Baytown, this the 28th day of
February, 1991.
EM�IETT O. HUTTO, Mayor
0 ATTEST:
E?- LE81.1 P. HALL, City Clerk
4a4e.00D IA2ro� '04 -
CIO RAMIREZ, SR., As start City Attorney
C:1 :16:14
0
310228 -12a
0
DEPOSITORY CONTRACT
BAYTOWN AREA WATER AUTHORITY
THE STATE OF TEXAS §
COUNTY OF HARRIS §
This Contract and Agreement is made and entered into by and
between the Baytown Area Water Authority, hereinafter sometimes
referred to as "BAWA," located in the County of Harris, State of
Texas, and Citizens Bank and Trust Company, 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 Baytown Area Water Authority;
and
WHEREAS, Citizens Bank and Trust Company was duly selected,
qualified, and designated as Depository Bank for the deposits of
BAWA, to serve in such capacity for the term commencing on the
1st day of April, 1991, and ending on the 31st day of March,
1993.
NOW THEREFORE, it is agreed by the parties hereto, as
follows:
1.
2.
That pursuant to the action taken by BAWA on the 20th day
of February, 1991, Citizens Bank and Trust Company is
selected and designated as Depository Bank of BAWA, for
the period from the 1st day of April, 1991, to the 31st
day of March, 1993, and thereafter until the successor
depository shall have been duly selected and qualified
according to law.
That in consideration of said election as Depository
Bank, the said Depository Bank covenants and agrees to
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
funds remaining in the depository, and does guarantee and
indemnify BAWA 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 BAWA 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 .225 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
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.
The term "like maturity" shall mean an investment
maturing on or after one treasury bill maturity date but
before the next treasury bill maturity date.
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 BAWA, remain on deposit until maturity.
6. The Bank shall furnish monthly statements or statements
49 at other special intervals as required by BAWA or its
designated accountant and /or auditor, showing the debits
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and credits and balance in each account on deposit. The
posting 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
BAWA. 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;
(e) Checks of type, quality and quantity specified by
BAWA;
(f) Coded form deposit slips; and
(g) Wire transfer.
7. The Bank shall pledge to BAWA with a bank of safekeeping
(Trustee Bank), acceptable to BAWA "approved securities"
in an amount (based on current market value, not par
value) sufficient to adequately protect the funds of BAWA
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 BAWA, 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
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interest by the United States, bonds of the State of
Texas or of any county, school district, city or town or
State of Texas that have been rated "Baa" or better by
Moody's Investors Service and that mature in less than
ten (10) years from the date pledged, or other securities
provided by TEX. L.GOV'T.CODE ANN. § 105.034. BAWA must
approve all securities prior to their being pledged.
BAWA 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 ffA.^ 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 BAWA.
8. In the event BAWA 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
BAWA agrees that upon payment of the funds to BAWA, 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 BAWA 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 General Manager of BAWA, in the form
provided by BAWA, a list of additional securities that
are to be deposited with the Trustee Bank. In the event
the sum on deposit with the Bank is reduced to less than
the bonds on deposit with the Trustee Bank, BAWA does
agree to release such excess bonds on deposit with the
Trustee Bank, by the General Manager of BAWA notifying
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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 General Manager of
BAWA 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 General Manager
of BAWA 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 BAWA 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
General Manager of BAWA and cancelled, has been attached
and made a part of the release of BAWA. In addition, the
General Manager of BAWA shall release any excess
collateral upon request by the Bank.
11. The Bank covenants and agrees that in the event any 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, BAWA reserves the
right 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 BAWA 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 BAWA's rights
as stated herein.
• 12. The Bank certifies that it is not disqualified from
bidding and becoming the depository for BAWA by reason of
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• one or more of its officers, directors, and stockholders
who own more than 10 percent of the bank's outstanding
capital stock being a Director of BAWA, 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 BAWA for the term of the
Contract, and BAWA shall not maintain time or demand
accounts (other than bond interest and sinking fund
accounts) in any other financial institution. BAWA may,
however, invest funds in direct debt securities of the
United States.
IN WITNESS WHEREOF, witness the signature of the President of
Citizens Bank and Trust Company as attested to by its Secretary,
and the President of the board of Directors of BAWA as attested
to by its Secretary, in duplicate, on this, the day of
1991.
ATTEST:
Secretary
ATTEST:
EILEEN P. HALL, City Clerk
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CITIZENS BANK AND TRUST COMPANY
By
President
BAYTOWN AREA WATER AUTHORITY
By
President