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HomeMy WebLinkAboutResolution - 2002-R0522 - Contract For Bank Depository Services - Wells Fargo Bank - 11/21/2002Resolution No. 2002-RO522 November 21, 2002 Item No. 46 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 between the City of Lubbock and wells Fargo Bank Texas, N.A..of Lubbock, Texas, for bank depository services, and related documents. Said Contract is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council this 21st day of November 2002. z1f / 4A9RC CD AL, MAYOR ATTEST: Rebecca Garza City Secretary APPROVED AS TO CONTENT: Quincy White, istant City Manager Administrative Services APPROVED AS TO FORM: William de Haas Contract Manager/Attorney CCdocs/kb/bankdepsvcsres November 12, 2002 Resolution No. 2002—R0522 November 21, 2002 Item No. 46 BANK DEPOSITORY CONTRACT This DEPOSITORY CONTRACT is made and entered into on the date last herein written by and between THE CITY OF LUBBOCK, hereinafter called "DEPOSITOR", and WELLS FARGO BANK TEXAS, N.A., a national banking association, organized under the laws of the United States and authorized by law to do banking business in TEXAS and now conducting such business in said State, hereinafter called "BANK", and is as follows: DEPOSITOR, through action of its governing Board, hereby designates BANK as a depository for the period beginning November 21, 2002, and continuing through November 20, 2005, with two possible one-year extensions dependent upon Council approval. II DEPOSITOR and BANK, by execution of this Depository Contract, hereby designate the Federal Reserve Bank, hereinafter called "TRUSTEE", to hold in trust, according to the terms and conditions of this Depository Contract and the attached "Federal Reserve Bank Operating Circular", the collateral and substitute collateral described under said agreements. III During the term of this Depository Contract, the DEPOSITOR will, through appropriate action of its governing Board, designate the officer, or officers, who singly or jointly will be authorized to represent and act on behalf of the DEPOSITOR in any and all matters of every kind arising under this Depository Contract and to (a) execute and deliver to BANK an electronic fund or funds transfer agreement (and any addenda thereto), (b) appoint and designate, from time to time, a person or persons who may request withdrawals, orders for payment or transfers on behalf of DEPOSITOR in accordance with the electronic fund or funds transfer agreement and addenda and (c) make withdrawals or transfers by written instrument. IV DEPOSITOR'S Request for Application (RFA) dated September 3, 2002 and BANK'S Response to the RFA dated September 30, 2002 is incorporated herein for all purposes; however, to the extent that any provision therein conflicts with any provision herein, the DEPOSITOR'S RFA and the BANK's response to that RFA will control. V DEPOSITOR may arrange for time deposits, and BANK may accept and shall hold such deposits subject to payment in accordance with the terms of the deposit. Interest shall be calculated at the rate, which BANK has bid for the particular denomination and time period of said deposit at competitive public bidding for said deposits. Time deposits will mature on or before the expiration of this Depository Contract. All Time Deposits that mature beyond the expiration of this Depository Contract will be at non -contractual interest rates negotiated at the time of purchase. Depository Contract Page 1 VI BANK will be compensated for any and all services rendered to DEPOSITOR under this Depository Contract on a fee basis. The account analysis shall be received by the fifth working day of the month. If the DEPOSITOR notes no changes or exceptions within five working days, the master account may be debited for fees incurred. VII All funds on deposit with BANK to the credit of the DEPOSITOR shall be secured by collateral as provided for in the Public Funds Collateral Act of 1989 as amended (Chapter 2257 of the Texas Government Code) excluding letters of credit. The total market value of the collateral (which includes accrued interest or income to the extent it is not included in the market price) securing such deposits will be in an amount at least equal to 102% of the amount of such deposits plus the amount of any accrued interest thereon and less the amount that such deposits are insured by an agency or instrumentality of the United States government. The market value with respect to any securities (collateral) as of any date and priced on such date will be obtained from a primary dealer. When additional collateral is required to cover incremental deposits, BANK must receive the request for collateral prior to 10:30 a.m. on the day the deposits are actually received. Twenty-four hours notice is necessary on incremental deposits in excess of $3 million. It is the responsibility of the BANK to monitor and maintain collateral and margins on a daily basis. VIII BANK has heretofore or will immediately hereafter deliver to TRUSTEE collateral of the kind and character above mentioned of sufficient amount and market value to provide a margin of 102% market value on the collateral for the funds of DEPOSITOR deposited with BANK. Said collateral or substitute collateral, as hereinafter provided for, shall be kept and retained by TRUSTEE in trust so long as the depository relationship between DEPOSITOR and BANK shall exist hereunder, and thereafter so long as deposits made by DEPOSITOR with BANK hereunder, or any portion thereof, shall have not been properly paid out by BANK to DEPOSITOR or on its order. IX TRUSTEE will accept said collateral and hold the same in trust for the purpose herein stated. See the attached "Federal Reserve Bank Operating Circular". Depository Contract Page 2 Should BANK fail at any time to pay and satisfy, when due, any check, draft, or voucher lawfully drawn against any deposit and the interest on such deposits or in any manner breach its contract with DEPOSITOR, DEPOSITOR shall give written notice of such failure or breach to BANK, and BANK shall have three (3) business days to cure such failure or breach. In the event BANK shall fail to cure such failure or breach within three (3) business days or should the BANK be declared insolvent by a Federal bank regulatory agency, it shall be the duty of TRUSTEE, upon demand of DEPOSITOR (supported by proper evidence of any of the above -listed circumstances), to surrender the above-described collateral to the DEPOSITOR. DEPOSITOR may sell all or any part of such collateral and out of the proceeds thereof, pay DEPOSITOR all damages and losses sustained by it, together with all expenses of any and every kind incurred by it on account of such failure or insolvency, or sale, accounting to BANK for the remainder, if any, of said proceeds or collateral remaining unsold. W Any sale of such collateral, or any part thereof, made by DEPOSITOR hereunder may be either at public or private sale; provided, however, it shall give to both TRUSTEE and BANK two (2) hours notice of the time and place where such sale shall take place, and such sale shall be to the highest bidder therefor for cash. DEPOSITOR and BANK shall have the right to bid at such sale. M" If BANK shall desire to sell or otherwise dispose of any one or more of said securities so deposited with TRUSTEE, it may substitute for any one or more of such securities other securities of the same market value and of the character authorized herein after approval by the DEPOSITOR which shall not be unreasonably withheld. Such right of substitution shall remain in full force and may be exercised by BANK as often as it may desire; provided, however, that the aggregate market value of all collateral pledged hereunder, shall be at least equal to the amount of collateral required hereunder. If at any time, the aggregate market value of such collateral so deposited with TRUSTEE be less than 102% of the total sum of the DEPOSITOR's funds on deposit with said BANK, BANK shall immediately deposit with TRUSTEE such additional collateral as may be necessary to cause the market value of such collateral to equal the total amount of required collateral. BANK shall be entitled to income on securities held by TRUSTEE, and TRUSTEE may dispose of such income as directed by BANK without approval of DEPOSITOR. XIII TRUSTEE shall promptly forward to DEPOSITOR copies of safekeeping or trust receipts covering all such collateral held for BANK, including substitute collateral as provided for herein. Depository Contract Page 3 E.MMA If at any time the collateral in the hands of TRUSTEE shall have a market value in excess of the required collateral due DEPOSITOR by BANK, the DEPOSITOR shall authorize the withdrawal of a specified amount of collateral, TRUSTEE shall deliver this amount of collateral (and no more) to BANK, taking its receipt therefor, and TRUSTEE shall have no further liability for collateral so redelivered to BANK. XV Either DEPOSITOR or BANK shall have the right to terminate this Agreement prior to the expiration date by advance written notice to the other of its election to do so, and this Agreement shall be void from and after the expiration of ninety (90) days after the receipt of such notice, provided all provisions of this agreement have been fulfilled. XVI When the relationship of DEPOSITOR and BANK shall have ceased to exist between DEPOSITOR and BANK, and when BANK shall have properly paid out all deposits of DEPOSITOR, BANK shall notify DEPOSITOR and it shall be the duty of DEPOSITOR to give TRUSTEE certificate to that effect; whereupon TRUSTEE shall, with the approval of DEPOSITOR, redeliver to BANK all collateral then in its possession belonging to BANK, taking its receipt therefor. An order in writing to said TRUSTEE by DEPOSITOR and a receipt for such collateral by BANK shall be a full and final release of TRUSTEE of all duties and obligations undertaken by it by virtue of these presents. Executed this 21st day of November , 2002 under the provisions of FIRREA by the undersigned duly authorized officers of the parties hereto. FOR DEPOSITORY BANK: WELLS FARGO BANK TEXAS. N.A. BY: TITLE:ASSISTANT VICE PRESIDENT ATTEST: Resolution Number # 2002—R0522 THE CITY OF LUBBOCK: RC MCDOUG L, OR ATTEST: '014/v� ILK, TITLE: SE IOR VICE PRESIDENT Rebecca Garza, City Secretary Depository Contract Page 4 D AS TO Managing APPROVED William D. de Haas, Contract Manager/Attorney Attachments: Federal Reserve Bank Operating Circular Wells Fargo Bank Texas, N.A. Application and Bid for Depository Services Depository Contract Page 5