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HomeMy WebLinkAboutRES 09-267 RESOLUTION NO. 09-267 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to exercise an option to extend the current Bank Depository Agreement with Capital One Bank for one (1) additional year. BE IT FURTHER RESOLVED THAT the City Manager is hereby authorized to execute the amended Bank Depository Agreement, which is substantially in the form attached hereto as Exhibit "A." PASSED BY THE CITY COUNCIL of the City of Beaumont this the 8th day of September, 2009. s -Mayor Pro Tern Gethrel Williams-Wright - � w STATE OF TEXAS § COUNTY OF JEFFERSON § BANK DEPOSITORY AGREEMENT (As Amended) The City of Beaumont,hereinafter called "City", and Capital One Bank,hereinafter called "Bank",make and enter into the following agreement: 1. The Bank has been duly selected by the City as the depository of the primary funds of the City from the 1st day of October, 2006,through the 30th day of September, 2009. The agreement may be extended for two(2) additional one(1)year periods. 2. The City does hereby agree and consent in accordance with Chapter 105 of the Local Government Code, Vernon's Texas Codes Annotated, as amended,that the Bank, in lieu of giving bond may, and it does hereby,pledge with the City Council of the City, not later than five(5)days before the commencement of the term of the contract, a surety bond or certain securities of the kind and character authorized by the Public Funds Collateral Act(Chapter 2257,Government Code), in an amount equal to the amount of funds of the City on deposit in said Bank. The securities initially deposited by the Bank, which have a total current market value at least equal to $5,100,000, are described in the attachment hereto marked Attachment"A". The securities so described are pledged with the City Council of the City of Beaumont to secure the faithful performance of all duties and obligations imposed by law upon the bank as such depository and to secure that the funds of the City shall be faithfully kept by said Bank as depository of all funds of the City and accounted for according to law, and to insure the payment of all checks drawn against the City's available funds held by the Bank as a depository thereof. EXHIBIT "A" It is hereby agreed that any suits involving a construction of this contract or the duties of the Bank arising from its status as City depository shall be tried in Jefferson County, Texas,as provided by Section 105.034(b)of the Local Government Code, Vernon's Texas Codes Annotated. The Bank, at its election,will place the authorized securities for safekeeping in a custodial account at a Federal Reserve Bank, a trust department of a commercial bank, or through another financial institution not owned or controlled by the Bank or its holding company. The securities are to be released only upon the joint written authorization of the City and the officials of the Bank. The Bank may substitute or exchange securities held in the custodial account as outlined in a separate section of this agreement. A Custodial Agreement between the Bank,the institution providing the safekeeping of the pledged securities(hereinafter called the Custodial Institution), authorizing the Custodial Institution to provide custody of securities for collateralizing City deposits, should be executed and signed by officials of the Bank, Custodial Institution and the City if the Custodian will agree to sign such an agreement. In any event,the Bank will not request release of the securities from the Custodial Institution unless the Bank has obtained written authorization of the City. It is agreed that should the funds of the City on deposit with the Bank exceed the market value of the securities pledged,the Bank shall, as provided in accordance with the Public Funds Collateral Act (Chapter 2257, Government Code), immediately pledge with the City other securities,which additional securities so pledged shall be approved by the Investment Officers and all of the securities so pledged shall be of sufficient market value so that the entire securities pledged shall equal or exceed 102% of the aggregate market value of the deposit or investment including accrued interest of the City's funds on deposit in said Bank less an amount insured by the Federal Deposit Insurance Corporation; and further, that the Bank may withdraw such of said securities from time to time as may be permitted by the Investment Officers so long as the market value of the securities so pledged shall at all times equal or exceed 102% of the amount of the City's funds on deposit with the Bank, it being contemplated that the Bank shall at all times have pledged with the City approved bonds and securities of market value equal to 102% of the amount of the City's funds on deposit with the Bank. The City may require additions to this amount at any time during the contract period. However, at no time during the contract period shall the current market value of securities fall below$5,000,000. The new and additional securities pledged from time to time shall at once be held by it on the same basis and terms as the securities itemized in Attachment"A"hereto; and the said custodial institution shall release and deliver to the Bank only such part or portion of said securities so pledged as the Investment Officers of the City of Beaumont may authorize and direct in writing to be released and delivered to the Bank. All of the securities so pledged by the Bank shall be returned to it at the end of the contract period, providing the Bank has fully and faithfully performed and discharged all of its duties and obligations as depository as prescribed by law and as set forth in this Agreement. The Bank shall furnish to the said custodial institution written evidence from the City stating that the Bank has complied with this contract and has started out full and faithful performance of all the Bank's duties and obligations as depository before the Bank shall be entitled to have the securities returned to it at the end of the contract period. 3. Should the Bank at any time desire to substitute other securities for those pledged with the City and on deposit with the said custodial institution, the City will permit such substitution providing the securities which the Bank offers to substitute meet the requirements of law and are satisfactory to the City and are approved by the Investment Officers. 4. The custodial institution is authorized to clip the maturing interest coupons on the securities which they hold under this Agreement and deliver them or their proceeds to the Bank; provided, however, that if and when notified by the City in writing to discontinue this practice,the custodial institution shall obey such instructions, and they shall thereafter hold such proceeds. In addition, in the event interest payable on securities held under this agreement are not payable by a surrender of coupons and/or in the event ownership of such securities is not in bearer form, City agrees to execute bond powers, releases and such other documentation as Bank, custodial institution or the applicable indenture trustee or paying agent may require in order to permit Bank or custodial institution, as the case may be,to redeem maturing securities and/or obtain maturing interest payments. 5. Should the City at any time become dissatisfied and desire to move the securities from one custodial institution to some other institution, it is hereby given the right, power, and authority to do so; but before any such removal of the said securities is made by the City, it shall give the Bank five(5)days written notice of its desire and intention to so remove and change the place of keeping such securities; but in all events, such bonds and securities shall be kept in a custodial account at the Federal Reserve or in some national bank not owned or controlled by the depository institution or its holding company located in one of the Federal Reserve bank cities in the State of Texas, and the bank where such securities are kept and held shall be satisfactory to both parties to this contract. 6. The Bank agrees to provide to the City the banking services described in Attachment"B" attached hereto and made a part hereof for all purposes. The fees for such services are set out in said Attachment`B." The "annual costs" are illustrative only and the unit costs shall be used to compute the costs of banking services under this Agreement. All the agreements,terms and conditions stated in Attachment"B"are a part of this Agreement. 7. Except to the extent inconsistent with or specifically superseded by the terms of this Bank Depository Agreement, Bank's Terms and Conditions of Deposit Accounts shall govern the rights and remedies of Bank and City with respect to funds deposited at Bank by City. 8. This agreement is terminable by either party by giving written notice to the other specifying the date of termination. Said notice shall be given not less than one hundred and twenty(120) days prior to the termination date therein specified. 9. IN WITNESS WHEREOF,the City of Beaumont and Capital One Bank,have caused their signatures and corporate seals to be affixed hereto in triplicate originals in Beaumont,Texas,this the day of , 2009. By: Kyle Hayes, City Manager CITY OF BEAUMONT By: Title: CAPITAL ONE BANK