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Home My WebLink AboutResolution - 5587 - Contract - ASBMDS - Depository For City Funds - 08_14_1997RESOLUTION NO. 5587 Item #31 August 14, 1997 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Contract by and between the City of Lubbock and American State Bank for Municipal Depository Services, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. The Council hereby designates American State Bank to serve as a depository for City of Lubbock funds. Passed by the City Council this 14th day of August 1997. Y SIT O , MAYDR A ST: L nA =VED Darnell, City Secretary AS TO CONTENT: Betsy Bucy, Finance Manager AS TO FORM: r First Assistant City Attorney DGV:gs\ccdocs\kdepos2.doc August 7, 1997 RESOLUTION NO.5587 Item #31 August 14, 1997 DESIGNATION OF DEPOSITORY AND CONTRACT FOR THE CUSTODY OF THE FUNDS OF THE CITY OF LUBBOCK TEXAS THE STATE OF TEXAS § COUNTY OF LUBBOCK § THIS CONTRACT made and entered into on this the day of 1997, by and between AMERICAN STATE BANK, LUBBOCK, TEXAS, a Banking Corporation, acting by and through its duly authorized officers (hereinafter referred to as Bank), and THE CITY OF LUBBOCK, a Home Rule Municipal Corporation, chartered under the laws of the State of Texas, with its domicile in Lubbock County, Texas, acting herein by and through its duly authorized officers, (hereinafter referred to as City); WITNESSETH: The governing body of the City of Lubbock does hereby designate the Bank as Depository of the City funds and the City of Lubbock has deposited, and will deposit from time to time funds of such City with Bank and Bank does hereby agree to accept such deposit or deposits; and such deposits shall be made on the following terms and conditions: I. The term of this Contract shall be three (3) years commencing on the 1st day of August, 1997, and ending on the 31 st day of July, 2000, with an option to renew under the same terms and conditions for an additional two-year period. II As security for the deposits of the City, the Bank shall pledge to the City a surety bond or securities equal to the total of all balances the City maintains in the Bank, less applicable FDIC Insurance Coverage. Certificates of Deposit and other evidences of deposit shall be collateralized at 105% of market or par, whichever is lower. The securities pledged must satisfy the requirements of Chapter 105 of the local government code. The City will accept as collateral for its certificates of deposit and demand deposits those items identified as eligible collateral for municipal depositories as outlined in Chapter 105 of the local government code. The City must approve all securities pledged. Any state or local govermment bonds pledged must have a rating of at least A or Al or better by Moody's Investor Services or Standard & Poors Corporation. The City reserves the right to accept or not to accept the securities to be pledged as collateral. These items constitute the only acceptable means of collateralizing the City's deposits. Collateral securities will be owned outright by the pledging financial institution. The Depository shall provide the City a monthly statement of securities pledged as collateral due ten (10) working days after the close of a calendar month. This securities statement shall reflect total securities itemized by the following: Name Type/Description/Cusip Number Par Value Current Market Value Maturity Date Moody's or Standard & Poors Rating ( both if available) The Bank shall provide quarterly reports of income/condition (required by FDIC) due the 10th day following the reporting deadline for each quarter. The Bank will honor all overdrafts of the City to an amount not exceeding Three Million Dollars and Bank may elect to honor overdrafts exceeding Three Million Dollars. Bank will charge City a rate of interest, as set forth in Exhibit A attached hereto and made a part hereof for handling any and all overdrafts. Overdrafts will be considered temporary, unless they exceed ten (10) calendar days, at which time the overdrafts will be cleared. 1W For and in consideration of the agreements contained in Exhibit A, Bank will furnish to City all necessary and customary banking services including, by way of illustration but not limitation of the following: l . Bank will handle all foreign and domestic exchange for the City. 2. Bank parking lot facilities which are immediately adjacent to Bank building will be available for use by the City in its transaction of banking business. 3. Bank agrees to furnish to City coin wrappers, night depository services including bags and keys, Cashier's checks and deposit slips. 4. Bank will furnish City a detailed monthly statement of securities pledged against City deposits as of the last business day with an aggregate total of the pledged amount. 5. Bank will deliver to City monthly bank statements on all accounts maintained by City with Bank. 6. Bank will furnish daily balance of each account, including total collected balance. V. The City will have the right to place any amount of its funds in any demand account or accounts maintained by City with Bank and Bank agrees to accept any of City funds placed in said demand deposits. VI. The City will have the right to invest any amount of its funds in the Bank at a rate set forth in Exhibit A or in any other financial institution or investment in which the City is legally authorized to invest. VII. It is agreed by the parties hereto all time deposits or certificates of deposit which have not elapsed on the termination date of this Depository Contract, shall remain on deposit with the same depository under the same terms and conditions in effect during said Contract until the date such time deposits have elapsed. VIII. Notwithstanding anything to the contrary contained in this Agreement the City will be at all times free to forward funds to any bank which is serving as a paying agent for the City on bonds issued by the City. This Agreement is made subject to the statutes of the Congress of the United States and the State of Texas and subject to the rules and regulations promulgated by the Banking Department, State of Texas, the Board of Governors of the Federal Reserve System, and the Board of Directors of the Federal Deposit Insurance Corporation, as are now in existence and such other statutes, rules and regulations of these entities as may hereafter become effective during the term of this Agreement; and if this Agreement should be or become in conflict with such statutes, rules and regulations then such statutes, rules and regulations shall control to the extent they are in conflict with this Agreement. X. Failure of the Bank to consummate investments on a timely basis shall constitute a breach of contract. Such breach, or any other breach of a material provision of this Contract shall be cause for immediate cancellation of this Contract by the City or such other action as shall be appropriate. Said termination shall be effective upon the expiration of ninety (90) days from the date of notification of the Bank of such breach. appropriate. Said termination shall be effective upon the expiration of ninety (90) days from the date of notification of the Bank of such breach. EXECUTED this the 14 th day of August AMERICAN S ATE BY: Title: SENIOR VICE PRESIDENT ATTEST: Secretary 1997 THE CITY OF LUBBOCK: A TEST: Kayle Darnell, City Secretary APPROVED AS TO CONTENT: r&�* 4LAC - Betsy Bucy, Finance Manager Dbnald G. Vandiver, First Assistant -City Attorney EXHIBIT A MUNICIPAL DEPOSITORY SERVICES APPLICATION FORM BANK NAME: OFFICIAL SUBMITTING (TYPE): OFFICIAL SIGNATURE: American State Bank Richard.:Thoroberrp TITLE OF OFFICIAL: Senior Vice President TELEPHONE NUMBER: 806/767-7000 BANKING SERVICES UNIT PRICE MONTHLY PRICE Account Maintenance t10/sect. /rn Reverse Positive Pay t250 /acct . /po Imaged Checks on CD-ROM not available currently If Paid by Check t.25 Deposits no cha /g_ Items Deposited, MICR Encoded $ .06 Items Deposited, Non -encoded $ .08 ACH Transactions debits-.25 credits -no charge Stop Payments Wilre Transfers incouing410 $20 $15 outgoing- Security Purchase/SaleTransactio4�� $50 Safekeeping Securities t 4 Safety Deposit Box no chase Returned Items t 3 On -tine Account Information pot available currently OTHER QUOTATIONS: RATE Sweep Account Average Fed Funds Rate minus .602 Overdrafts Average Fed Funds Rate plus 3.00Z Loans Average Fed Funds Rate plus 2.75% STATEMENT OF CAPABILITY: Our bank can comply with all aspects of the City's banking service requirements. (Yes or No) of me, list all exceptions on a separate page.) Other Charges (if applicable) Check reconciliation nation Checks serial sorted Daily balance report ACH originations ACS daily item reporting u Yea $50/acct./mo $250 warimun/mo .04 $50/acct./no $250 maz3M/no See separate contract dated June 8, 1989 $50/so