HomeMy WebLinkAboutResolution No. 89-11 RESOLUTION N0 . R89-11
A RESOLUTION OF THE CITX COUNCIL OF THE CITY
OF FRIENDSWOOD , TEXAS , AUTHORIZING THE MAYOR
TO EXECUTE A CONTRACT AND AGREEMENT BY AND
BETWEEN THE CITY OF FRIENDSWOOD AND TEXAS
COMMERCE BANK - FRIENDSWOOD .
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BE IT RESOLVED by the City Council of the City of
Friendswood , Texas , that the Mayor be , and he is hereby
authorized to execute for and in behalf of the City, a Contract
and Agreement , a copy of whieh is attached hereto and made a part
hereof , by and between the City of Friendswood and Texas Commeree
Bank - Friendswood , whereby such bank will serve as official
depository for city funds .
PASSED , APPROVED AND ADOPTED this 3rd day of April , 1989 •
CITY 0 RIENDSWO , TEXAS
BY : • _�
AYOR PAUL W. SCHRADER
ATT T :
AELO IS MCKEN IE , CMC
CITY SECRETARY
DEPOSITORY CONTRACT
ORIGINAL
DEPOSITORY CONTRACT FOR THE
CITY OF FRIENDSWOOD, TEXAS
STATE OF TEXAS
COUNTIES OF GALVESTON
AND HARRIS
This Contract is made and entered into on this 3rd day of April
1989 , by and between the City af Friendswood, Texas , hereinafter
referred to as "City, " acting by and through the City Council of
the City of Friendswood, and Texas Commerce Bank-Friendswood,
Iocated within the City of Friendswood, Counties of Galveston and
Harris , Texas , hereinafter referred to as "Depository Bank" or
"Bank. "
W I T N E S S E T H
WHEREAS, the City Council of the City of Friendswood requested
and received Requests for Proposals , hereinafter referred to as
"bid," for the depository of City funds ; and,
WHEREAS , Depository Bank submitted the most advantageous bid
and was , therefore, duly designated City Depository by Resolution
dated April 3 , 1989 , to serve as depository from May l , 1989 ,
through April 30 , 1991 , and thereafter until, at the sole
discretion of the City of Friendswood, a successor depository shall
be duly selected and qualified according to state Iaw; now
therefore:
1 . That pursuant to Resolution No. R89-11 , passed and approved
on the 3rd day of April 1989 , Depository Bank is designated as
Depository Bank for the time and demand deposits of the City of
Friendswood, Texas , for a period commencing on May l , 1989 , and
continuing through April 30 , 1991 , and thereafter until, at the
sole discretion of the City of Friendswood, a successor depository
shall have been duly selected and qualified according to state law.
2 . Depository Bank agrees to follow, abide and be bound under
the terms of the bid which it submitted to and which was accepted
by the City Council af the City of Friendswood, a copy of said bid
is attached hereto as Exhibit "A" and is incorporated herein by
reference as if fu11y set forth verbatim herein.
3 . Depository Bank states that it is a banking institution
chartered under the laws of the United States or of the State of
Texas and that its banking house is located within the city Iimits
of the City of Friendswood, Texas .
4 . Depository Bank agrees to faithfully perform all of the
duties hereof, as provided by the laws of the State of Texas , and
will safely keep and disperse alI funds coming into it as
depository, and faithfully pay over to the successor all funds
remaining in the depository, and does guarantee and indemnify the
City against a11 Ioss , cost or expense, including reasonable
attorney' s fees , arising out of or related Co the failure to
perform duties imposed by law or this Contract.
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The term "funds" shall be considered to mean aIl cash,
securities and investments , sinking funds , trust funds , and other
funds or assets that may come into the possession of said Bank by
virtue of this Contract.
5 . Bank states that it is not now, nor will it become,
delinquent in the payment of any taxes , fees , assessments or any
other sum due and owing to the City of Friendswood. Bank further
states that it is not in default or in non�ompliance with any
agreement or contract with the City of Friendswood,
6 . The City shall not be required under the terms and
conditions of this Contract, to place with the Bank, time deposits
which carry a maturity date beyond the term of this Contract;
however, the City may, at its option, do so. In the event the City
places time deposits with the Bank that mature subsequent to the
term of this Contract, all deposits previously invested may, at the
sole election and discretion of the City, remain on deposit until
maturity.
7 . Notwithstanding any other provision contained in this
Contract to the contrary, the City reserves the right to invest its
funds in other banking institutions in accordance with the Public
Funds Investment Act of 1987 , Chapter 889 , Acts of the 70th
Legislature, Regular Session, 1987 , compiled as Texas Revised Civil
Sta�utes Annotated, Article 842a-1 . In the event the City shall
desire to convert a part or all of the public funds invested under
this Contract , to cash or in such other manner as the City desires ,
the Bank agrees to make such funds available without delay, subject
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to regulations imposed by appropriate bank regulatory authorities;
City agrees that upon payment of said funds �o the City, it shall
provide a release of bonds or securities as provided for in the bid.
8 . The Bank covenants and agrees that in the event any of the
terms , covenants or conditions of the bid document, this Contract
document or the safekeeping agreement are in any way breached or
violated or, for any reason, the Bank has failed to perform under
the terms and conditions of said documents and/or agreements , the
City Council of the City of Friendswood reserves the right to
terminate this Contract or any agreement entered into subsequent to
or by reason of the bid previously submitted by the Bank and shall
have the option of withdrawing a11 or part of the time and demand
deposits from the Bank, including principal and accrued interest,
or in the alternative, to allow said funds to remain on deposit
until maturity. However, notwithstanding whatever election the
City Council of the City of Friendswood may make, the said City
Council sha11 have the right at all times during the term hereof
following any such breach or violation to terminate this Contract
and any other agreement or contract executed subsequent to the bid
heretofore previously submitted by Bank.
9. Notwithstanding the provisions set forth herein for the
term or termination of this Contract , in the event the City shall
elect to leave on deposit with the Bank time deposits which mature
after the expiration of the term or after termination of this
Contract, then aII the terms , provisions and conditions of this
Contract , which shall be for the benefit and protection of this
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Contract, which shall be determined by the City, shall continue and
be binding until aIl funds have been paid to the City, and the
final release of the City of Friendswood has been duly executed by
the Director of Finance and delivered to Bank. �
SIGNED AND EXECUTED in duplicate originals on this "/
day of April 1989 .
TEXAS COMMERCE BANK-FRIENDSWOOD
t p
By� �'tV��.�_
S cy Lacy Presid t
and Chief cutive ficer
ATTEST:
Clifto u7illiams
F�ec ' e Vice President
CITY OF FRIENDSWOOD, TEXAS
�
By: .
aul W. Schrader, Mayor
ATTEST:
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Ci y Secretary
Deloxis McKEnzi , CMC
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