20-R-27 - Extension of the Bank Depository agreement with Schertz Bank & Trust19 I&TO RU I WIMMI
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VMEREAS, the City staff entered into a bank depository agreement with Schertz Bank A
Trust on August 1, 2016 per resolution 16-R-50 for a three-year term with two options for one-
year extensions; and
VMEREAS, the City Council has detennined that it is in the best interest of the City to
extend the bank depository agreement for the last one-year extension pursuant to the Bank
Depository Agreement.
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Section 1. The City Council hereby approves the last of the available one-year
extensions for bank depository services with Schertz Bank & Trust..
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
[cart 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any provision of this Resolution are hereby repealed to the extent of such conflict, and the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.
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Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance 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 • 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 required by Chapter 55 1, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
ATTEST.-
C167—secretary
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This Bank Depository Agreement (this "Agreement") is dated and effective the lst day • August,
2016 by and between the CITY OF SCHERTZ, TEXAS (the "City") and SCHERTZ BANK &
TRUST (the "Bank"), a bank chartered by the State of Texas.
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WHEREAS, the City desires to enter into a depository contract for the deposit of the City's public
funds; and
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WHEREAS, the City, after due consideration of all proposals for City depository, has selected the
Bank as the applicant offering the most favorable terms and conditions for the handling of the
City's funds.
The City, through action of its City Council, hereby designates the Bank as its depository for banking
services for a three (3) year period commencing August 1, 2016 and extending through January
31, 2019 with two options for one-year extensions, if approved by the City Council.
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Any and all fees from the Custodian associated with the safekeeping of securities pledged to the
benefit • the City shall be borne by the Bank.
Section 3. Collateral
City time and demand deposits, miclusive 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, as amended),
pledged by the Bank and held in trust by the Custodian named in Section 2 in an amount equal to
at least 102% • the total • those fimds. The Custodian will provide a monthly report • the
collateral directly to the City.
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Section 4. Financial Position
The Bank will provide the City with a statement of its fmancial position on at least a quarter]
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basis. The Bank will provide an annual statement audited by its independent auditors including
letter as to its 'Tair representation."
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For the term of this contract, the City and Bank designate the individuals as listed in Exhibit
as authorized to represent and act for the City and the Bank, respectively, in any and all maltta
including collateral assignment and substitution, and, upon further written authorization by the Ci
with respect to the designated Bank officials, execution of agreements and transfers of funds.
change in these representatives by either party will be made in writing to the other party.
Section 6. Scope of Services
The Bank's response to the RFP (the 'Response") is attached as Exhibit C. and is incorporated
into this Agreement for all purposes. If any provisions of the Response and this Agreement are in
conflict this Agreement will control. The City hereby designates its choice of Option Two for Bank
Weposit Services under Attachment A to the Response (maintenance • $500,000 combined average
collected balance in lieu of Account Analysis fees).
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deposit'd 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 shal constitute the
entire Agreement between the parties.
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Subject to the service Option selected by the City in Section 6, the Bank will be compensated for
any and all services rendered to City under this Agreement. The Bank agrees to offset monthly
service fees against its customary earnings credit for balances in the City's own- interest bearing
accounts.
The Bank shall be in default if it fails to pay all or part • a demand deposit, a matured time
deposit, • 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 • "failed" by a
federal or state banking regulator, or if a receiver is appointed for the Bank.
Section 9. Non-Assignability
This Agreement is not assignable in whole or in part but is binding on the parties, their successors
and assigns.
This Agreement shall remain in full force and effect until the end of its term or until amended,
cancelled, • superseded by a new bank depository contract. No provisions • this Agreement
shall be deemed waived, amended, • modified by either party unless and until such waiver,
amendment, • modification is in writing and signed by the parties to this Agreement.
Section 11. Terminntion
This Agreement may be terminated by the City at any time with or without cause by gg thirty
(30) days prior written notice to the Bank.
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All notices and correspondence to the City by the Bank or to the Bank by the City shall be deemed
given when either delivered. in person or deposited in the U.S. Mail, Postage Prepaid, Certified Mail,
Return Receipt Requested, •addressed to the appropriate party at the following address:
If to the City: City of Schertz
Attention: City Manager
1400 Schertz Parkway
Schertz, Texas 78154
If to the Bank: Schertz Bank& Trust
Attention: Operations Officer
519 Main Street
Schertz, Texas 78154
In case any one or more of the provisions contained in this Agreement shall for any reason be
held invalid, illegal, or unenforceable in any respect, such invalid, illegal, or unenforceable
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invalid, illegal, or unenforceable provision had never been contained herein.
The Bank represents and warrants that this Agreement is made pursuant to and is duly authorized
by the Board of Directors of the Bank and recorded in the official records of the Bank.
EXECUTED on this the day of 2016.
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Safekeeping
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(e) 7be Bank is authorized to re-register the Securities in the name of the Bank or its
nominee unless alternative and acceptable registration instructions are promptly furnisbed by th2
Depositor.
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The )Bank shall exercise commercially reasonable care in receiving, holding and handling the
Securities. The Bank will exercise the commercially reasonable care expected of a professional custodian
for hire with respect to the Securities in its possession or control.
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received by the Ba emitted to the Depositor.
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(h) The Bank shall present all maturing bonds and coupons for collection and is authorized
to receive payment of income and principal on other Items in accordance with their terms. All funds so
collected shall be credited to the Account or remitted in accordance with the instructions of the
Depositor.
Depositor acknowledges and agrees that the Bank shall not be liable for any loss or
damage arising out of cause beyond the Bank's control.
The Bank shall not hold Securities which are issued by foreign governments or foreign
cY.1 panies ► for which the principal trading market is located outside the United States hereunder,
Should the Bank elect to hold such securities, such activities shall be governed by a separate agreement
between the bank and the Depositor.
(c) The Bank shall have a Roa on the Securities mi the Account to secure payment of such
fees and expenses, taxes, advances and other charges incurred under this Section 9. 'Me Depositor
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time held by or through it in accordance with thi for the benefit of the Depositor or in
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(d) The Bank is hereby authorized to charge the Depositor's deposit account number
��0199*81257 for aH fees and charges incurred or assessed hereunder.
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In addition to other rights granted to the Bank pursuant to the terms of this Agreement, the Bank
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as required in connection with any Securities.
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(30) days' prior written notice to the Depositor.
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This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns
of the respective parties hereto.
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within the thirty (30) day period shall be deemed by the parties hereto to constitute accord and
satisfaction. As soon as practicable following termination of this Agreement, the Bank shall deliver all
Securities to the Depositor in accordance with the Depositor's written instructions.
1... notice to be given or to be served upon any party hereto in connection with this Agreement
must be in writing, and shall be given by certified or registered mail, facsimile transmission ("fax") or
express courier and it be deemed to have been given and received twenty-four (24) hours after a
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postage prepaid, is deposited in the United States mail. Such notices shall be given to the parties hereto
at the following addresses:
The Frost National Bank
P.O. Box 1600
San Antonio, Texas 78296
Attention: Custody Services Department
Facsimile No.: (210) 220 - 5986
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Schertz Bank & Trust (Customer Accoun,
P,O. Box 300
Sr-hertz, Texas 78154
Attention: Melvin F . Go Ila
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Any notices served by fax shall be deemed to have been given and received only when written
confirmation ♦ the receipt of such fax has been received by the sender. Any party hereto may, at any
time by giving fifteen (15) days' written notice to the other party hereto, designate any other address in
substitution of the foregoing address to which such notice diall be given,
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(a) This Agreement may be executed in any number of countexparts; each such counterpart
hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute, but
one agreement.
(b) Whenever the context hereof shall so require the singular shall include the plural, the
male gender shall include the female gender and the neuter, and vice versa.
such invalid, illegal, or unenforceable provision had never been contained herein.
[(• ) The Addendum to Safekeeping Agreement attached hereto is incorporated herein
and made a part hereof for all purposes.)
IN WITNESS WHEREOF, the parties thereto executed this Agreement as of the day and year
first above-written.
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Title. Assistant Vice President
Nwne:Melvin F. Golla,,_
Title: President
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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 substitution, and, upon further written authorization • the City
with respect to Bank officials, execution of agreements and transfers of funds. Any changes in these
representatives by either party will be made in writing to the other party.
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MY OF :ERTZ ATTACMMNTA 2016
Schedule of Proposed es
Activity volumes tire estimates based I historical 'r he APP Code for .... of • services hag beer provided • necessary.
N6v based on available firEbrination.
Changes n vol ames, account .,r r additional clarificadon ofinflarmation rli ... 1 ^1r I'r at the Citys request
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MY OF ERTZ ATTACMMNTA 2016
MY OF SCHERTZ ATTACHMENT ro.
CITY OF :: ATTACHMENT A 2016
CrrY OF SCHERTZ
ATTACHMIENTA 2016
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Usit Basis
MO/ ExplanatozyNotcs, as applicable
Code*
Vol. Vol CI-P
VOL
Inte , robarge
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Association assessment
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Total cost per item
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—Cost
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Adftmal buk fee
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Terminal
Permonth
Below fees depend upon which terminal City needs/wants
Water
Per month
PIN pad
Per month
ChookReader
Permonth
bwrinter
Perm omh
Softwm-e fee
Permonth
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idlt rauce (Bast) Fee
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01N000 Overdmfi Fea
per ftem
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Per card
Noffications
Perkem
060101 Corrections
For item
0_60220' Replan ementFee
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Add addidenal few as necessaxy.
If the City maintains a combined average collected balance (cheeldug and certfficates of deposit) of $500,000.00, then I
there will ► no Account Analysis fee charged to the account, however there could be vendors' costs, i.e.: Merchant Cali
Services, etc.
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CERTIFICATE OF INTERESTED PARTIES
FORM 1295
10f1
Complete Nos. 1- 4 and 6 if there are interested parties.
OFFICE USE ONLY
Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties.
CERTIFICATION OF FILING
1
Name of business entity filing form, and the city, state and country of the business entity's place
Certificate Number:
of business.
2016-95223
Schertz Bank & Trust
Schertz, TX United States
Date Filed:
2
Name of governmenta entity or state agency that is a party to the contract for which the form is
08/04/2016
being filed.
City of Schertz
Date Acknowledged:
08/05/2016
3
Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a
description of the services, goods, or other property to be provided under the contract.
741469344
Depository
.. ..... ....................
Nature of interest
4
Name of Interested Party City, State, Country (place of business) (check applicable)
Controlling Intermediary
Schertz Bank & Trust Schertz, TX United States
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X
5
Check only if there is NO Interested Party.
6
AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct.
Signature of authorized agent of contracting business entity
AFFIX NOTARY STAMP / SEAL ABOVE
Sworn to and subscribed before me, by the said this the
_ day of
20_, to certify which, witness my hand and seal of office.
Signature of officer administering oath Printed name of officer administering oath
Title of officer administering oath
Forms provided by Texas Ethics Commission www.ethics.state.lx.us
Version V1.0.277