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13-R-03 - Bank Depository RenewalRESOLUTION NO. I3-R•-U3 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING THE EXTENSION FOR ONE YEAR OF THE BANK DEPOSITORY AGREEMENT WITH SCHERTZ BANK & TRUST, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff entered into a bank depositozy agreement with Schema Bank & Trust on Febz•zzary 1, 2010 per resolution 10-R-01 for athree-year term with two options for one- year extensions; and WHEREAS, the City Council has determined that it is in the best interest of the City to extend the bank depositozy agreement for one-yeaz• pursuant to the Bank Depository Agreement attached hereto as Exhibit A {the "Agreement") THAT: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS Section 1. The City Council hereby authorizes the City ivianager to execute and deliver the Agreement with Scher•tz Bank & Trust in substantially the fozm set forth in Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section ~. This Resolution shall 6e construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section S. If any provision of this Resolution oz• the application thereof to any person oz• circurrzstanee shall be held to be invalid, the remainder of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as z•ecluired by Chapter SS1, Texas Government Code, as amended. Section '~. This Resolution shall be in force and effect fiom and after its final passage, and it is so resolved. Exhibit A Authorized Representatives For the term of this agreement, the City and the Bank designate the individuals listed below as authorized to represent and act for the City and the Bank, respectively, in any and all matters including collateral assignment and substihztion, and, upon further written authorization by the City with respect to Bank offcials, execution of agzeements and transfers ~of funds. Any changes in these representatives by either party will be made in writing to the other party. CITY OF SCHERTZ AUTHORIZED REPRESENTATIVES SCHERTZ BANK & TRUST AUTHORIZED REPRESENTATIVES John C. Kesel, City Manager John E. Bierschwale, Executive Director David J. Harris, Executive Director Brian James, Executive Director Juan F, Santoya, Jz•., Finance Director Mark Sundernrzan, President Wendy Griffin, Cashier Robert Galindo, Assistant p'inance Director _ ] „.. _ Ali I •T. ~~~ i:iS EY~ibil A Bank Depository Agreement -3- BANK DEPOSITORY AGREEMENT This Bank Depository Agreement (the "Agreel7~ent"} is made and entered into this frst {l s`) day of February, 2013 by and between City of Schertz (the "City") and Schertz Bank & Trust {the "Bank"), a bank chartered by the State of Texas. The City and the Bank entered into a Bank Depository Agreement {the "original agreement") on February 1, 2014 for a term of three years with two one-year extensions, This Bank Depository Agreement is being entered into to document the City's and the Bank's exercise of the first ane- year extension wider the original agreement. Section I Designation as Dcpository The City, tl~taugh action of its Governing Body, hereby designates the Bank as its depository for banking services for a one (I}year period commencing February 1, 2413 and extending through January 31, 2414 with one (l) option for aone-year extension, if approved by the City Council. Section II Designation of Custodian The City and Bank hereby designate the Frost Bank (the "Custodian"} to hold intrust, according to the terms and conditions of the City Request far Proposal, dated October i, 2009 {the "RFP") and pursuant to the Safekeeping Agreement, All securities pledged as depository collateral is in accordance with the City's Investment Policy. Any and all fees from the Custodian associated with the safekeeping of securities pledged to the benefit of the City shall be borne by the Bank. Section III Collateral City time and demand deposits, inclusive of interest, in excess of the Federal Deposit Insurance Corporation insurance shall be secured at all times by collateral, acceptable to the City and in accordance with the Public Funds Collateral Act (Texas Government Code 2257), pledged by the Bank and held in trust by the Custodian in an amount equal to at least 102% of the total of those funds. Custodian will provide a monthly report of the collateral directly to the City. Such pledged securities shall be subject only to the joint written instructions of both (a) authorized representatives of the City and {b) specif tally authorized representatives of the Bank. The Bank shall Dave the right, with the prior written consent of the City, to substitute or replace any or all of the pledged securities with collateral acceptable to the City. Section IV Financial Position The Bank will provide a statement of its financial position on at least a quarterly basis. The Bank will provide an annual statement prepared by its independent auditors. Section V Authorized City and Bank Authorized Representatives Foz• the term of this contract, the City and Bank designate the individuals listed in Exhibit A as City of Schertz Authorized Representatives and Schertz Bank & Trust Authorized Representatives to represent and act on behalf of the City or Bank in any and all matters including collateral assignment and substitution, and execution of agreements and transfer of funds. Any change in these representatives will be made in writing and signed by the party changing its authorized representatives. Section VI Scope of Services The Bank's response to the City's RFP, dated October 1, 20x9 {the "Response"} is incorporated into this Agreement for all purposes; refer to RFP for detailed scope of services. If any provisions of the Response and this Agreement are in conflict, this Agreement will control. The City shall be required to designate which option for demand deposit accounts is preferred, The Bank shall faithfully perform all of its duties and obligations required by the laws of the State of Texas for public funds depositories and shall upon presentation pay all checks drawn on it against collected fiends on demand deposits, and shall, at the expiration of the Agreement, turn over to its successor all funds, City-owned securities, property and things of value held as depasitozy. The City shall have the power to determine and designate the character and amount of the funds to be deposited in the Bank. The City may arrange for time deposits and Bank may accept such deposits subject to the terms of the Bank's Response. This Agreement, along with all Exhibits and other incorporated documents shall constitute the entire Agreement between the parties. Section VII Bank Compensation Bank will be compensated far any and all services rendered to City under this Agreement. Bank agrees to offset monthly service fees against its customary earnings credit for balances in City's own-interest bearing accounts. Section VIII Default The Bank shall be in default if it fails to pay all or part of a demand deposit, a matured time deposit, ar a matured certificate of deposit, including accrued but unpaid interest, at a specified maturity date. The Bank shall also be in default if ruled "bankrupt", "insolvent" or "failed" by a federal or state banking regulator, or if a receiver is appointed for the Bank. ' --`-~ ~i ,.. .- _.. ` __< ... ~~ .. a ~ - - ~. ~ r , . ,'b h lMii` a _- if? 1 - 1,. ~~~~~. __ ~~ _~ - -.~ ~~ _- -. -~- ~. ,. z _ .. 1 ~~.~ ~.. ~ ~~ ~ , .. ,. 5 'Y _, ~~~- ~.' _, ~. _r~ _. _w_. - _- 1 a ~.~. ~;