HomeMy WebLinkAboutResolution - 2000-R0249 - Renew Depository Agreement - American State Bank - 07/27/2000Resolution No. 2000-80249
July 27, 2000
Item No. 23
RESOLUTION
WHEREAS, the City Council finds that it would be in the public interest to
exercise an option to renew the City of Lubbock's Depository Contract with American
State Bank under the same terms and conditions for an additional two-year period; NOW
THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby exercises its option to
renew the depository agreement executed August 1, 1997, with American State Bank for
an additional two-year period as provided by the said agreement. The City Manager or his
designee is hereby authorized and directed to provide written notice to American State
Bank of the City's desire to extend the depository agreement.
Passed by the City Council this 27th day of July 2000.
Y T N, YOR
ATTFST:
Kaythiegarnell, City Secretary
APPROVED AS TO CONTENT:
A i A i fi j A Am 14,
Debra Forte, Dep ty Ci Manager
APPROVED AS TO FORM:
D6nald G. Vandiver, First Assistant
Attorney
DDres/BankCon.res
July 7, 2000
Resolution No. 2000-R 0249 RESOLUTION 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 02 ,
ATTEST:
NDarnell, City SecretaryAVEDAS TO CONTENT:
Betsy Bucy, finance Mana er
AS TO FORM:
First Assistant City Attorney
DGV : gs\ccdocs\kdepos2. doc
August 7, 1997
i
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 terns 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
govermnent 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
Paz 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.
IV.
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:
I . 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.
a
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.
IX.
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 14thday of August .1997
AMEBIC SATE THE CITY OF LUBBOCK:
BY:
Title: SENIOR VICE PRESID .NT
WINDY SIT O YOR
ATTEST: ATTEST:
Secretary Kaytj Darnell, ity ecretary
APPROVED AS TO CONTENT:
C`-
Betsy Bucy, Finance Manager
U6nald G. Vandiver, First Assistant City
Attorney
EXHIBIT A
MUNICIPAL DEPOSITORY SERVICES APPLICATION FORM
BANK NAME:
OFFICIAL SUBMITTING (TYPE):
OFFICIAL SIGNATURE:
American State Banc
Richard ,'Mornberry
Cbeck reconciliation
Checks serial sorbed
D&JUy balance report
AM originations
ALM daily iter reporting
$50/acct./ao $250 aazi=ja/au
.Ob
$50/acct./Mo $250 saziaua/so
See separate contract dated June 8, 1989
$50/so
TITLE OFOFFICLAL:
Senior vice Presit...,r
TELEPHONE NUMBER:
806/767-7000
BANKWG SERVICES
UNIT PRICE MONTHLY PRICE
Account Maintenance
;10/
#lQLW
Re"ww PeM pay
wwr _ _/�..
0n CD-ROM
Items Paid by Ciietk
Deposits
nQt .vii t.A1 currently
Items Deposited, MICR Encoded
an ch�roc
_ ; .06
�--
Items Deposited, Non -encoded
;.08
ACH Transactions debits–.25
Stop Payments
credits–no charste
Wire Transfers incowing ,10
— ;20
Security Pnrrbase/SaleTransactiodt ,/
out_goi.R&, 15
— $50
Safekeeping Securities
S 4
' Safety Deposit Boz
Returned Items
qq eb�roe
!
0is-Gse Account Information
3
nut av i 7,.ht. Currently
OTHM QUOTATIONS:
RATE
Sweep Accouet
Average Fed Fun" gate amus
.60Z
Overdrafts
Average Fed Funds gate plus
3.002
SOS
Average Fed Funds Rate plus
2.752
STATEMENT OF CAPABILITY:
Our bank can comply with afl aspects of the
City's banking
Service r'eQmreieatL (Yes or No)
(If 00. list all erctptions on a separate page.)
?es
Other CbarXes (if a>Plieable)
Cbeck reconciliation
Checks serial sorbed
D&JUy balance report
AM originations
ALM daily iter reporting
$50/acct./ao $250 aazi=ja/au
.Ob
$50/acct./Mo $250 saziaua/so
See separate contract dated June 8, 1989
$50/so
City Manager's Office
InterOffice Memo
To: Bob Cass, City Manager
From: Andy Burcham, Cash & Debt Manager
Date: June 13, 2000
Subject: Agenda Comments — July 27, 2000 City Council Meeting
CITY OF LUBBOCK
AGENDA ITEM SUMMARY
ITEM #/SUBJECT:
# Exercise the option to renew the City of Lubbock's Depository Contract with
American State Bank under the same terms and conditions for an additional two-year
period.
BACKGROUND/DISCUSSION:
The original depository contract with American State Bank was approved and
passed by Resolution No. 5587 at the August 14, 1997 City Council Meeting. Section I
of the contract states that "The term of this Contract shall be three (3) years commencing
on the V day of August, 1997, and ending on the 31` day of July, 2000, with an option to
renew under the same terms and conditions for an additional two-year period."
The City's Cash & Debt Manager completed a study evaluating current costs for
the depository contract and found our current costs to be very competitive with the
market. The level of service we are experiencing is consistent with our needs. As we are
experiencing a high level of service at a competitive price and, as there is a cost
associated with changing banks, the Investment Review Committee recommends that
City Council approve an extension to the current contract for an additional two-year
period.
SUMMARY/RECOMMENDATION:
Staff recommends renewal of contract.
Resolution NO. 2000—RO249
EXCERPT FROM MINUTES
BOARD OF DIRECTOR MEETING
AMERICAN STATE BANK, LUBBOCK, TEXAS
The following is an excerpt of a regular meeting of the Board of Directors of American
State Bank, Lubbock, Texas on the 8th day of August, 2000:
The Board reviewed a letter from the City of Lubbock requesting renewal of the contract
with American State Bank for an additional two-year period for a Depository Agreement (City
of Lubbock Resolution No. 5587, Item #31); Section I, of the contract reads as follows:
"The term of this Contract shall be three (3) years commencing on the 1St day of
August, 1997, and ending on the 31St day of July, 2000, with an option to renew
under the same terms and conditions for an additional two-year period."
After discussion and review of the terms of the agreement, and upon motion duly made
and seconded, the Board approved the requests from the City of Lubbock for renewal of the
Depository Contract with American State Bank, commencing August 1, 2000, and for a
period of two (2) years, ending July 31, 2002.
I, the undersigned Secretary of American State Bank, do hereby certify that the above is a
true and correct excerpt from the Minutes of the Regular meeting of the Board of Directors of
American State Bank, held on August 8, 2000.
1.�a �t�
Vice aesident & Board Secretary
Sworn to and subscribed before me by Shirley Dodson, Vice President and Board
Secretary of American State Bank, Lubbock, Texas, this 21" day of August, 2000.
4p.M. JANE JONES
• MY COMMISSION EXPIRE Notary Public in and for the State of Texas
"'�,;; September 06, 2001
American State Bank
RICHARD THORNBERRY
SENIOR VICE PRESIDENT
August 23, 2000
Ms. Debra B. Forte'
Deputy City Manager
City of Lubbock
P.O. BOX 2000
Lubbock, TX 79457
Dear Ms. Forte'
Enclosed is a copy of the August Board minutes of American State Bank approving the
extension of the City of Lubbock Depository Contract. Thank you for the confidence you
have shown in our bank by extending this contract. Over the years we have certainly enjoyed
having the City of Lubbock as our customer. If there is anything we can do in the future to
improve our service please let us know.
Sincerely,
Richard Thornberry
Sr. Vice President Invesiments
TU
MEMBER FDIC
Xt,
1401 AVE. Q, P.O. BOX 1401, LUBBOCK, TEXAS 79408-1401, 806/767-7000