HomeMy WebLinkAboutOrdinance No. 197 AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING
THE CITY MANAGER TO ENTER INTO A DEPOSITORY CONTRACT WITH
THE FIRM OF '--~ ~'~/~9~v ~;~ ; ATTACHING THE APPROVED
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FORM OF THE CONTRACT AS EXHIBIT "A"; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS:
SECTION 1. That the City Manager of the City of The Colony,
Texas, is hero, by authorized to enter into a city depository contract with
'"'--/--~./Y~.i.D/~/~/ ~ to provide depository services
to the City of The Colony. The approved form of such contract is attached
hereto as Exhibit "A", and made a part hereof for such purposes.
SECTION 2. This Ordinance shall take effect immediately from
and after its passage by the City Council of the City of The Colony, Texas.
DULY PASSED BY THE CITY COUNCIL OF THE CITY OF THE COLONY,
TEXAS, ON THE /~ DAY OF ~~ , 1982.
APPROVED:
RICHARD TURN~R, MAYOR
ATTEST:
A~/PROVED AS TO FORM.
CITY ATTORNEY
STATE OF TEXAS )
) KNOW ALL MEN BY THESE PRESENTS:
COUNTY (DF DENTON )
This Agreement made and entered into between the City of The Colony, Texas,
(hereinafter called "City") and The Colony Bank (hereinafter called "The Depository").
WITNESSETH:
WHEREAS, on the 28th day of January, 1982, thc City received bids from banks
desiring to be designated as the City Depository; and,
WHEREAS, on the 16th day of February, 1982, The Celony Bank was designated
City Depository for the City of The Colony, Texas;
NOW, THEREFORE, in consideration of the mutual benefits, considerations,
covenants and conditions contained herein, the parties agree as follows:
1. The term of this Agreement and Contract is for a twer ty-four (24) month
period commencing Februa~.y _ , 1982, and ending February. , 1984.
2. The Depository will furnish all services c~stomarily offered to official
depositories, plus such additional services as are set out herein.
3. The Depository will furnish thc City, witkout cost to the City, the largest
size safety deposit box available in The Depository. The Depository will furnish night
depository bags, checks, money orders, cashier's checks, drafts Or any other supplies
necessary in connection with the City's deposit accounts, without cost to the City.
4. The Depository will not charge for overdrafts or charged back checks,
provided that overdrafts will be covered within three days from the (]~te of such
overdrafts. After three days, tile City will be charged at the rate of ten (19%) percent
per annum for the time the account is in overdraft. The Depository will deliver
ch~rged back checks daily as they occur.
5. The Depository will furnish the City with itemized statements on all
accounts on a monthly basis, or as often as the City may require.
6. The Depository will process ti~e City's financial transactions and place all
accounts on account analysis. The charges for processing the City's financial transactions
will be the following:
(a) Monthly account maintenance charge $ 5.00
(b) Cost for processing each deposit slip .03
(c) Cost for each check left for collection .03
(d) Cost for each check paid on nccount .03
7. The daily account balance of each account will be presumed to be invested
at a pegged rat~ that would be equal to one-half of one (1%) percent less than the
most recent average weekly thirteen (13) week Treasury Bill rate. 'Phis rate shall be
set at the beginning of each quarter and will remain in effect throughout the quarter.
Each account will bc analyzed each quarter to doterminc if the earnings of the
investable balance equal or exceed the cost of processing the City's financial
transactions. If the earnings do not cover tile cost of processing the City's financi~'~l
tramsactions, then The Depository will have tile right to charge tile ,,.ccount the amount
of the net deficiency in processing costs for that quarter.
8. All monies which are deposited into The Dcpository under tile provisions
of this Contract shall be continuously secured, in accsrdnnce with the l~ws of the
State of Texas applicable thereto, specifically Article 2560(d), Revised Civil Statutes
of Texas, ea~d pursuant thereto, The Dcpository agrees to pledge with the governing
body of the City for the purpose of securiag such City funds, securities of the follo~,ing
kind, in an amount equal to the amount of said City funds on deposit in said depository
bank, to-wit:
United States Bonds, Certificates of lndebtedne:;..~ of the United States,
Treasury Notes of the United States, and other evidences of indebtedness of the
United States which are guaranteed as to both principal and interest by the
United States Government, Bonds of the State of Texas, or of m~y county, city,
town, independent school district, common school district or other school district
in the State of Texas; or Bonds issued under tile Federal Farm Loan Act, or
Road District Bonds, Bonds, Pledges or other evidences of indebtedness issued
by the Board of Regents of The University of Texas, Notes or Bonds secured
by Mortgages insured and Debentures issued by the Federal Hous}ng Admiaistrator
of the United States Government; in shares of share ~tccounts of ~uy l~uilding
and Loan Association organized uader the laws of this State, provided the
payment of sucil shares or share accounts is hmured by thc Federal Savings &
Loan Insurance Corporation, and in the shares or share accouuts of any Federal
Savings & Loan Association domiciled in this State, provided the payment of
such shares or share accounts is insured by the Federal Savincs & Loan Insurance
Corporation; Bank Acceptances of Banks having a ap, tu{ Stock of not less than
$500,000.00, and Bonds issued by Mnnicipal Corporations in Texas; and the
securities so pledged will be deposited in escrow in ~ bank selected by the City,
at no expense to the City, under an approprinte contract to be drawn to conform
with the requirements of tile above numbered statute and the provisions of this
contract.
9. The City also reserves the right to place or invest part or all of its
surp]us or excess funds outside the designated depository i,i any lawful manner as may
be determined by the City Council from time to time throughout the term of this
contract.
10. All time deposits or time certificates of deposit which have not elapsed
on the termination date of this contract shall remain on deposit with Tbe Depository
under the same terms and conditions in effect during said contract until the date such
time deposits have elapsed.
11. All provisions of this contract arc subject to regulations presently in
existence or as may be promulgated by the Board of (~overlloi~; of thc eeer:~l Reserve
ib, -
System or by any other supervisory authority of tile United States or of the State of
Texas during' the existence of the contract.
EXECUTED IN DUPLICATE this day of February, i982.
CITY OF Ttlg COI,ONY? TEXAS
By:
Dan S~wage, City Manager
r , r
A FTES F:
City Secretary
TIlE COLONY BANK
tJy:
MIwk A. Rush, Pl'esident
ATTEST:
Secretary