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HomeMy WebLinkAboutResolution - 2326 - Agreement - RMS Inc, Mbank Austin - Receive, Collect, Deposit Sales Tax Rebates. - 05/22/1986Prepared by Legal, 5-13-1986 DGV:da RESOLUTION Resolution X62326 May 22, 1986 Agenda Item X624 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 Depository Agreement and associated documents by and between the City of Lubbock, Reed Municipal Services, Inc. and MBank Austin, N.A., 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 fully copied herein in detail. Passed by the City Council this 22nd day of May, 1986. I _ McMINN , WAY ffR ATTEST : , uiuy 5ecreLary APPROVED AS TO CONTENT: Robert Massengale,A sistant City Manager for Financial Services APPROVED AS TO FORM: Uonalo Li. Vandiver, Firs Assistant City Attorney 1 •1 �• u a1 This Agreement for depository services Is made and entered into on the date hereinafter last written by and between REED MUNICIPAL SERVICES, INC., (hereinafter referred to as "RMS"), with principal place of business at 1309 West Lavendar Lane in the City of Arlington, Tarrant County, Texas, the MUNICIPAL CORPORATION, a Texas political subdivision, (hereinafter referred to as "CITY"), designated and identified on the signatory page hereof, whose principal business office address is also shown thereon, and MBank Austin, N.A., a national banking association, (hereinafter referred to as "MBank"), with principal place of business at 221 West Sixth Street, Austin, Travis County, Texas. W I T N_. F S5 - ._T j-. WHEREAS, CiTY is the periodic payee of certain funds collected and remitted on behalf of CITY by the Texas Comptroller of Public Accounts, (hereinafter referred to as "COMPTROLLER'); and WHEREAS, RMS, through this Depository Agreement, offers a service to CITY, available through MBank, which would greatly expedite the receipt, collection and deposit of such sums due so as to minimize or avoid loss of earnings with respect to such monies. NOW THEREFORE, for and in consideration of the premises hereinabove stated and hereinafter set forth, RMS, CiTY, and MBank agree as follows: CITY, by this Agreement, authorizes MBank, upon the terms and conditions hereof, to receive, collect, transmit and deposit those -1- funds, periodically to be paid to CITY by COMPTROLLER, the "Source of Funds" being Identified and more particularly described on Exhibit "A" hereto, which Exhibit is incorporated herein by reference as though now set forth in full. CiTY agrees to pay RMS a fee per transaction for the receipt, collection and deposit of such funds, which "Transaction Fee" is also Identified and set forth in Exhibit "B" hereto and Incorporated herein as though now set forth in full. Such transaction fee shall be based on actual sales taxes collected and rebated to the CITY each month. III. With respect to each transaction for which MBank Is authorized to receive, collect and deposit funds payable to CITY from COMPTROLLER as to the Source of Funds identified on Exhibit "A", MBank shall perform the following services for and on behalf of CITY. A. MBank shall, on the date the COMPTROLLER issues a warrant on the Treasury of the State of Texas as to each such transaction, arrange for the personal receipt of such warrant, payable to the order of the CITY, by an authorized representative of MBank at the Office of the Comptroller In the City of Austin, Texas. B. RMS shall further obtain on behalf of CiTY a restrictive endorsement upon such warrant providing for the payment of the funds due thereunder to the order of MBank, a nationally chartered banking institution authorized to -2- transact business in the City of Austin, State of Texas, which Bank Is identified and named on Exhibit "A" hereto. C. MBank shall thereafter personally arrange, through a representative of MBank, for the presentment of such warrant, so endorsed, at the Office of the Treasurer of the State of Texas and shall obtain, In exchange therefor, a draft in the amount of such warrant drawn upon an account of MBank from the State of Texas. D. MBank shall thereafter provide, for encashment of such draft at MBank to the credit of CiTY. E. MBank shall thereafter provide for such funds to be deposited at MBank in an account for CITY and for the placement of such funds, so collected, upon the financial wire of the Federal Reserve Bank for wire transfer to the "Depository Account" of CiTY at the "Depository Bank" of CiTY, which Depository Account and Depository Bank are more particularly identified on Exhibit "A" hereto as though now set forth in full. F. MBank shall telephonically advise a "Designated Official" of CiTY, which Designated Official is identified by name with telephone number and extension on Exhibit "A" hereto as though same were now set forth In full, of the placement of such funds upon the federal wire, to the Depository Account of CiTY and the amount of funds so transmitted to the credit of CITY. -3- Iv. Provided the warrant for the Source of Funds is available at the Office of the Comptroller and MBank is so notified of the warrantfs availability prior to 9:30 a.m. on the date same becomes due and payable to the CITY; that the principal banking office of MBank and the office of the Treasurer of the State of Texas are open for business on such date and are not prevented from accomplishing the transactions required under this Depository Agreement by an act of God, an act of war, or a labor dispute; and the financial wire services of the Federal Reserve Bank are available and operable on such date, MBank subject only to the penalties set forth herein, shall arrange same banking day transmission of funds to CiTY as herein set forth. Except upon the conditions herein set forth, should MBank be unable to transmit funds to the Depository Account of CiTY at the designated Depository Bank on the date the warrant for same is Issued and available from the Office of the Comptroller, MBank agrees to pay or credit to CITY the "Penalty" specified on Exhibit "A" hereto as though such penalty were now set forth herein In full. In the event any of the conditions precedent to such same day transaction, herein set forth, shall prevent MBank from effecting same day transmission of funds to the Depository Account of CITY at the designated Depository Bank, MBank shall, thereafter, complete the transaction services herein provided for on the next banking day after the date of Issue of such draft from the Treasurer of the State of Texas. Should MBank determine that any delay or event has occurred which would prevent same day transmission of such funds to the account of CITY as herein provided, MBank shall telephonically advise the Designated Official of CITY of same and shall advise such Designated -4- Official when such transaction and the services to be provided by MBank to CITY shall have been completed as to such transaction. V. CITY agrees, concurrent with the execution of this Agreement, to execute and deliver to RMS In favor of MBank a restrictive endorsement authority in the form provided by Exhibit "C" hereto. V1. This Agreement may be terminated by any party hereto upon thirty (30) days notice to the others. Such thirty (30) day period shall commence to run from the date of delivery of such notice of termination by the terminating party to the others. For purposes hereof such notice as to CiTY shall be effective when delivered to the Designated Official, to RMS when delivered to Keith Reed c/o Reed Municipal Services, Inc., at the address herein stated, and to MBank when delivered to Susan Frapart at the address herein stated. Any party hereto shall be entitled to change the person to whom such notice shall be required to be given by notification to the others in writing thereof. Termination of this Agreement by RMS or MBank shall not prevent the other party from continuing to provide the services herein described to CITY. VII. Services provided by RMS and MBank hereunder shall be provided as independent contractors respectively and not as employees or agents of the other. -5- VIII. The parties hereto acknowledge that the terms and provisions hereof constitute the entire and sole agreement of the parties hereto as to this Depository Agreement and that no alteration or other modification of this Depository Agreement shall be effective unless such modification shall be In writing and signed by the parties hereto. IX. The laws of the State of Texas shall control and govern the construction and enforcement of this Depository Agreement and venue for any litigation pertaining to same shall lie in Travis County, Texas. X. in the event any suit, controversy, claim or dispute occurs between parties hereto and arises out of or relating to this Depository Agreement or a breach thereof, the prevailing party shall be entitled to recover reasonable expenses, attorneys' fees and costs. XI. This Depository Agreement shall be binding upon and shall Inure to the benefit of the parties hereto, their successors, heirs, executors and assigns. XI 1. EXECUTED in duplicate originals this the May - - - - -s 1986. 22nd day of CITY: ATTEST: By: RANET BOYD, City Secreta y Title:______ REED MUNICIP L SERVICES, I' By: el h Reed, res dent MBank Austin, N.A. By: Title:�:_. C - APPROVED AS TO FORM: --- DO.V i/AfVDI1(R, First Assistant City Attorney APPROVED AS TO CONTENT: ROBERT MASSEN1,AIE�,As ist t City Manager —7— Exhibit "A" O�uRCE of F,t�N� Disbursement to CITY as to its prorata portion of Texas' Limited Use (Sales) Tax BA M/bank Austin, N.A. 221 West Sixth Street P.O. Box 2266 Austin, Texas DEPOSITORY BANK American State Bank P.O. Box 1401 Lubbock, Texas 79408 D POStTORY ACCO[�NT Account [colder: City of Lubbock Account Number: 008-7793 f�LSaNRI'ED OFF t G [ AL Name: Camelia Fisher Title: Investment Analyst Telephone Number: (806) 762-6411, Ext. 2022 [0 An amount equal to the daily accrual of the Federal Funds Rate as defined by MBank Austin, N.A. upon the amount of the warrant issued by the Comptroller of Public Accounts of the State of Texas for each following the date of disbursement of such warrant by the Comptroller that such funds are not transmitted to the Depository Account of CITY. Exhibit ngn The fees for the warrant collection operation are as follows: Month I y_ Recej.�t� oer �� � Less than $100,000 $ 45.00 $ 100,000 to $ 199,999 65.00 $ 200,000 to $ 299,999 75.00 $ 300,000 to $ 399,999 95.00 $ 400,000 to $ 499,999 100.00 $ 500,000 to $ 5990999 115.00 $ 600,000 to $ 699,999 135.00 $ 700,000 to $ 799,999 160.00 $ 800,000 to $ 899,999 175.00 $ 900,000 to $ 9990999 200.00 $1,000,000 to $1,099,999 225.00 $1,100,000 to $1,199,999 250.00 $1,2000000 to $1,299,999 260.00 $1,300,000 to $10399,999 300.00 $1,400,000 to $1,499,999 325.00 $1,500,000 to $1,599,999 350.00 $1,600,000 to $1,699,999 410.00 $10700,000 to $1,799,999 420.00 $1,800,000 to $1,899,999 430.00 $1,900,000 to $1,999,999 440.00 $2,000,000 and over 450.00 Exhibit "C" Ci�L1 bbock, Texas, a Municipal Corporation, chartered or existing under the laws and constitution of the State of Texas, herewith grants to MBank Austin, N.A. with principal business office at 221 West Sixth Street, Austin, Texas, the authority to endorse warrants payable to the order of City by the Comptroller of Public Accounts of the State of Texas as follows: "Pay to the Order of M/Bank Austin, N.A. to the credit of C jj _off. 11�hbock, Texas,." A copy of this Restrictive Endorsement Authority, when delivered to the Treasurer of the State of Texas, shall be deemed authority to the Treasurer to issue drafts upon the account of the State of Texas in exchange for warrants of the Comptroller of Public Accounts of the State of Texas endorsed as herein provided. This Restrictive Endorsement Authority shall continue until an instrument executed by an official of the City shall be personally delivered to the Treasurer of the State of Texas canceling or modifying such Restrictive Endorsement Authority. Until such Restrictive Endorsement Authority is withdrawn or modified as herein indicated, the City herein named absolves and holds harmless the Treasurer of the State of Texas for the issuance of drafts payable In conformity with endorsement to the Bank herein named. DATED : -Z -'2 . � G C I TY : MAYOR Telephone verification of the Restrictive Endorsement Authority herein granted may be obtained from: J. Robert Massengale, Assistant City Manager for Financial Services.