21-R-19 - Bank Depository agreement with Schertz Bank and TrustRESOLUTION NO. 21 -R -19
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING A BANK DEPOSITORY
AGREEMENT WITH SCHERTZ BANK AND TRUST AND OTHER
MATTERS IN CONNECTION THEREWITH
WHEREAS, the City of Schertz has the need to have a Bank Depository agreement with
a local financial institution; and
WHEREAS, City Staff has completed a competitive procurement to identify the
companies with the best value on behalf of the City; and
WHEREAS, City staff of the City of Schertz (the "City ") has recommended that the City
enter into a Bank Depository agreement with Schertz Bank and Trust; and
WHEREAS, the agreement shall become effective upon the date of final signature on the
agreement and shall remain in effect through September 30, 2024, with the option to renew for
two (2) additional terms of one (1) year each unless terminated as provided for in the agreement.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT:
Section 1. The City Council hereby authorizes the City Manager to execute and
deliver the Agreement with Schertz Bank and Trust in substantially the form set forth on
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any provision of this Resolution are hereby repealed to the extent of such conflict, and the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 4. This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
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 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 required by Chapter 551, 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.
PASSED AND ADOPTED, thi&�— day of 'o , k. , 2021.
CITY OF SCHERTZ, TEXAS
Ra uti z, Mayor
ATTEST:
g.AA� 0.,- )AI 1/1
Br n'& Dennis, City Secretary
50234811.1
EXHIBIT A
AGREEMENT
50234811.1 A -1
CITY OF SCHERTZ
BANK DEPOSITORY AGREEMENT
THE STATE OF TEXAS
GUADALUPE COUNTY
This Bank Depository Agreement (this "Agreement ") is dated and effective (Date) by
and between the CITY OF SCHERTZ, TEXAS (the "City ") and Schertz Bank and Trust (the "Bank "),
a bank chartered by the State of Texas.
Recitals
WHEREAS, the City desires to enter into a depository contract for the deposit of the City's public
funds; and
WHEREAS, the Bank has submitted a current statement showing the financial condition of the Bank
of even date with the Bank's application to serve as depository; and
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.
NOW, THEREFORE, the City and the Bank agree as follows:
Section 1. Designation as Depository
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 o n t h e e x e c u t i o n d a t e and extending through
September 30, 2024 with two (2) options for one (1) year extensions.
Section 2. Designation of Custodian
The City and Bank hereby designate Frost National Bank (the "Custodian ") to hold in trust, according
to the terms and conditions of the City Request for Proposal, dated December 21, 2020 (the 'RFP ")
and pursuant to a separate Safekeeping Agreement, attached as Exhibit A_, all securities pledged as
depository collateral 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 3. 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, 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% of the total of those funds. The Custodian will provide a monthly report of the collateral
directly to the City.
The selection of such pledged securities shall be subject only to the joint written instructions of both
(a) authorized representatives of the City and (b) specifically authorized representatives of the Bank,
as set forth on Exhibit B. The Bank shall have 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 4. Financial Position
The Bank will provide the City with a statement of its financial position on at least a quarterly
basis. The Bank will provide an annual statement audited by its independent auditors including a letter
as to its "fair representation."
Section 5. Authorized City Representative
For the term of this contract, the City and Bank designate the individuals as listed in Exhibit B 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 by the City with respect
to the designated Bank officials, execution of agreements and transfers of funds. Any 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 Deposit
Services under Attachment A to the Response (maintenance of $500,000 combined average collected
balance in lieu of Account Analysis fees).
The Bank shall provide or perform those banking services detailed in the Response (the "Services ")
at the rates stated. The Bank shall document the charges for the Services on a monthly account
analysis submitted by the Bank to the City. The City shall, within ten (10) business days of
receipt of a billing accompanied by documentation reasonably required by the City and subject to
the review and approval of the Finance Director of the City make provision for payment to the
Bank for Services performed in accordance with the fees stipulated in the Response.
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 funds 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 depository.
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 7. Bank Compensation
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.
Section 8. Default
The Bank shall be in default if it fails to pay all or part of a demand deposit, a matured time deposit,
or 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.
In the event of a default, failure, or insolvency of the Bank, the City shall be deemed to have vested
full title to all securities pledged under this Agreement. The City is empowered to take possession of
and transfer and or sell any and all securities. If the security is liquidated, any proceeds in excess of the
defaulted amount, plus expenses related to liquidation, shall be returned to the Bank. This power is in
addition to other remedies which the City may have under this Agreement or otherwise under law
and without prejudice to its rights to maintain any suit in any court for redress of injuries sustained by
the City under this Agreement.
Section 9. Non - Assignability
This Agreement is not assignable in whole or in part but is binding on the parties, their successors
and assigns.
Section 10. Amendment
This Agreement shall remain in full force and effect until the end of its term or until amended,
cancelled, or superseded by a new bank depository contract. No provisions of this Agreement shall
be deemed waived, amended, or modified by either party unless and until such waiver, amendment, or
modification is in writing and signed by the parties to this Agreement.
Section 11. Termination
This Agreement may be terminated by the City at any time with or without cause by giving thirty
(30) days prior written notice to the Bank.
Section 12. Notices
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:
Section 13. Governing Law
All applicable provisions and requirements of the laws of the State of Texas and the FDIC
governing depositories for the City shall be a part of this Agreement.
Section 14. Precedence of Agreement
This Agreement and attached Exhibits A. B. and C constitute the sole and only agreement between the
parties hereto with respect to the subject matter hereof and supersede any prior understanding,
written or oral, between the parties respecting the matters herein contained.
Section 15. Legal Construction
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 provision shall
not affect any other provisions thereof and this Agreement shall be construed as if such invalid, illegal,
or unenforceable provision had never been contained herein.
Section 16. Bank Authorization
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.
[The remainder of thispage intentionally left blank.]
EXECUTED on this the day of )20—.
CITY OF SCHERTZ
Lm
Name: Dr. Mark Browne
Title: City Manager
BANK
By:
Name:
Title:
ATTEST:
By:
Name:
Title:
EXHIBIT A
Safekeeping Agreement
EXHIBIT B
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 substitution, and, upon further written authorization by 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.
CITY OF SCHERTZ TBD
Dr. Mark Browne, City Manager
Brian James, Assistant City Manager
James Walters, Finance Director