BCRUA_R-09-05-20-8B RESOLUTION NO. R-09- 5'Z0
WHEREAS, the Brushy Creek Regional Utility Authority (BCRUA)
desires to enter into a Depository and Banking Services Contract
with Bank of America, N.A. , Now Therefore
BE IT RESOLVED BY THE BRUSHY CREEK REGIONAL UTILITY AUTHORITY,
That the Board President is hereby authorized and directed to
execute on behalf of the BCRUA a Depository and Banking Services
Contract with Bank of America, N.A. , a copy of same being attached
hereto as Exhibit "A" and incorporated herein for all purposes.
The Board hereby finds and declares that written notice of the
date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this day of May, 2009.
MITCH F LER, Pre ident
Brushy Cre eg. al Utility Authority
ATTEST:
Bo Secretary
00160857/jkg
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AUTHORIZATION AND AGREEMENT FOR TREASURY SERVICES
I am an authorized representative of the organization specified below(the"Client").The Client has received Bank of America's Treasury Services
Terms and Conditions Booklet(the"Booklet")in the form and with the content posted on the website of Bank of America and agrees to adhere
to the Booklet and any applicable User Documentation from Bank of America("Bank").The Services covered by the Booklet and the banks
providing Services are listed on the accompanying List of Banks and Services,which we may change from time to time.Capitalized terms used in
this Authorization and Agreement form,not otherwise defined,have the meanings given to them in the Booklet.
After I sign below on behalf of the Client,the Client may from time to time request the Bank to provide any of the Services described in the
Booklet.The Client may begin to use any such Service once Bank has approved such use and has received all required and properly executed
forms and the Client has successfully completed any testing or training requirements.The Booklet supersedes other agreements between the
Client and the Bank,as described under the General Matters heading in the Booklet,with regard to the provision of Services.
I warrant that the Client has taken all action required by its organizational or constituent documents to authorize me to execute and deliver
on behalf of the Client this Authorization and Agreement form and any other documents the Bank may require with respect to a Service.I am
authorized to enter into all transactions contemplated by the provision of Services to the Client.These may include,but are not limited to,giving
the Bank instructions with regard to Electronic Funds Transfer Services and designating employees or agents to act in the name and on behalf of
the Client.
Guidelines for completion:
If Client is a: Who must sign:
corporation .......................any authorized officer
limited liability company ............all members,or any authorized officer*
partnership(general or limited) .......any general partner*
limited liability partnership ..........the managing partner*
sole proprietorship .................the sole proprietor
governmental entity ................the Treasurer*
* Includes any individual authorized under Client's charter or organizational or constituent documents.The legal name of any member,
managing member,manager or general partner who is signing and who is not an individual must appear in the signature block.Note that
in most cases the Client must also complete the Certification form which follows.
Brushy Creek Regional Utility Authority- 20 May 2009
ORGANIZATION'S CLIENT LEGAL NAME Dater
[Signat a of Authorized presentative) [Signature of Authorized Representative,if two are required by Client
Mi
Print Na uthorize Representative] [Print Name of Authorized Representative
President
[Print Title of Authorized Representative(include the legal name of Print Title of Authorized Representative (include the legal name of
any member,managing member,manager or general partner who is any member,managing member,manager or general partner who is
signing and who is not an individual)] signing and who is not an individual)]
The following addresses may be used for giving notices in connection Address(es)for Bank Notices:
with this Booklet except as you or we provide the other different Bank of America,N.A.
addresses to be used in conjunction with your accounts or particular Documentation Management(CA4-706-04.07)
Services. P.O.Box 27128
Concord,CA 94527-9904
Address for Client Notices: Fax No.:(925)675-7131
221 E. Main Street _ and,if filled in,the following:
Round Rock, TX 78664
Telephone: 65_1 2 ) 21 R-54nn
Fax:61^ 1 21$=7097 —_— Telephone:L__)
Fax:
AD-AG-0455B WEB
AUTHORIZATION AND AGREEMENT CERTIFICATION
I certify that each signature appearing on the previous page for Client is the true signature of a person authorized to execute the form on behalf
of Client,and I further certify that I have full authority to execute this certification.The Bank is entitled to rely upon this certification until written
notice of Its revocation is delivered to the Bank.
Guidelines for completion:This Certification should not be sinned by the individual who signed the Authorization and AiueemenL
If Client Is a: Who must sign:
corporation .......................any authorized officer
limited liability company ............any member or authorized officer
limited liability partnership ..........any partner
partnership(general or limited) .......any general partner
sole proprietorship .................no signature required
governmental entity ................the entity's counsel,or any other individual as permitted by
the entity's organizational documents
The legal name of any member,managing member,manager or general partner who is signing and who is not an individual must appear in the
signature block.
Note:If Client Is not a U.S.based entity,it is not required to complete this certification,but must provide authorizing certificates
or mandates.
20 May 2009 Brushy Creek Regional Utility Authority
ate ORGAN ZAPON'S CL IE T' LEGAL NAME)
Q Aedl
15ignatut of CertifyingRepresentative]
Ste hen L. Sheets
Print Name of Certifying Representative
Legal Counsel
Print Title of Certifying Representative (include the legal name of any
member,managing member,manager or general partner who is sign-
ing and who is not an individuao)
AO-AG-04558 WEB
TREASURY SERVICES DELEGATION OF AUTHORITY FORM
This form is optional and is to be used when you wish to delegate authority to sign various authorization fors to someone other than the
person who signed the Authorization and Agreement form In the front of this Booklet.
By signing below,you authorize the Incumbent of the specified position listed In Section A or each person listed in section B below,acting
alone,to execute documents that we may request,and any amendments or renewals thereof,pertaining to the use of Services,including but not
limited to designating one or more persons(which may Include himself or herself)authorized to initiate,amend,cancel,confirm orverify the
authenticity of instructions to us for Services,whether given orally,electronically or by facsimile instructions,and to revoke any authorization
granted to any such person,as he or she deems appropriate.The signer of this form has the same authority described above for each Service
with us,unless otherwise specified.We are entitled to rely upon this delegation until written notice of Its revocation Is received by us.
Guidelines for Completion: Fill out either section A orsectlon B,or both,depending on your needs.
• To delegate authority to any person holding a specific title,fill out section A.
• To delegate authority to specific individuals by name,rill out section B.
For each name or title,indicate'All"in the'Service'column if the person or title has authority to sign documents for all Services which you
receive from us.otherwise,indicate specific Services for which the person or title has authority.For each name or title,indicate the entity or
entities for which the person or title has authority to sign documents.
A.TO DELEGATE AUTHORITY TO ANY PERSON HOLDING SPECIFIC POSITIONS
Title Service Entity
General Manager 'lity Author
City Manager, Cedar Park ALL BCRUA
City Mana er Leander ALL IBCRUA
City Manager, Round Rock ALL BCRUA
B.TO DELEGATE AUTHORITY TO SPECIFIC INDIVIDUALS
Name Service Entity Specimen Signature
CLIENT AUTHORIZATION
Client Authorization Instructions:The same person who signed the Authorization and Agreement for Treasury Services form must sign this
Treasury Services Delegation of Authority form.
20 May 2009 Brushy Creek Regional Utility Authority_
Dated ORGAN1zATI0N'S CLIENTS LEGAL NAM
Signature oVuthofized Rkepresentativel
Print Name ot AuthorizedRepresentative
President
PrintTrt a inc u e the legal name of any member,managing
member,manager or general partner who is signing and who
Is not an individua0l
AD-AG-0455B WEB
COPIV
DEPOSITORY AND BANKING SERVICES CONTRACT
This DEPOSITORY AND BANKING SERVICES CONTRACT, hereinafter referred to as
"Depository Contract," is made and entered into by and between the Brushy Creek Regional
Utility Authority (BCRUA), a local government as defined by V.T.C.A., Government Code,
- 791.003(4)(B), hereinafter referred to as "BCRUA/Depositor," and Bank of America, N.A., a
national banking association, organized under the laws of the United States and authorized by
law to do banking business in Texas and now conducting such business in said state, hereinafter
referred to as "Bank."
WHEREAS, BCRUA/Depositor desires to obtain banking services and a depository for its
funds and to provide for those funds the highest level of safety, liquidity, and return while
receiving suitable banking services at a reasonable charge; and
WHEREAS, Bank is willing to provide such banking services and to act as a depository for
BCRUA/Depositor's funds while providing full collateral satisfactory to BCRUA/Depositor;
NOW, THEREFORE, in consideration of the mutual agreements and covenants contained
herein, BCRUA/Depositor and Bank agree as follows:
I
BANKING AND DEPOSITORY SERVICES
Bank agrees to receive and safely keep any and all public funds offered for deposit by
BCRUA/Depositor and to reimburse and pay same to BCRUA/Depositor, by paying its
designated officer or whoever may be lawfully entitled to receive same upon request. Bank
agrees to perform banking and depository services of the types and for the charges as specified in
Exhibit "A" "Bank of America Deposit Agreement and Disclosures;" Exhibit "B" "Tri-Party
Collateral Management Agreement;" Exhibit "C" "Treasury Services Terms and Conditions;"
Exhibit "D" "Bank of America Account Analysis Price Schedule;" and Exhibit "E" Bank of
America Safekeeping Terms and Conditions," all of which are attached hereto and incorporated
herein by reference. Should there be any conflict between the terms of this contract and any of
the terms of the documents contained in any exhibit attached hereto, the terms of any
administrative rules of Bank, or other agreement between BCRUA/Depositor and Bank, the
terms of this contract shall be final, controlling, and binding.
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II
TERM, RENEWAL, AND TERMINATION
BCRUA/Depositor, through appropriate action of its governing body, hereby designates
Bank as a depository for the period beginning June 1, 2009 and continuing through May 31,
2011, and this contract shall remain in full force and effect for such stated period of two years.
However, this contract may be extended by mutual agreement of BCRUA/Depositor and Bank,
to remain in full force and effect for a period not to exceed any period allowed by
BCRUA/Depositor's Investment Policy. Such period shall be agreed to by the parties to this
contract.
Either BCRUA/Depositor or Bank shall have the right to terminate this contract prior to the
expiration date by advance written notice to the other of its election to do so, and this contract
shall be void from and after the expiration of ninety (90) days after the receipt of such notice,
provided that all provisions of this agreement have been fulfilled.
III
DESIGNATION OF TRUSTEE
BCRUA/Depositor and Bank, by execution of this contract, hereby designate the Bank of
New York, hereinafter referred to as "Trustee", to hold in trust, according to the terms and
conditions of this Depository Contract and the attached "Tri-Party Collateral Management
Agreement,"the collateral and substitute collateral described under said agreements.
IV
DESIGNATED OFFICERS)
During the term of this contract, BCRUA/Depositor will, through appropriate action of its
governing body, designate the officer or officers who singly or jointly will be authorized to
represent and act on behalf of BCRUA/Depositor in any and all matters of every kind arising
under this contract and to (a) execute and deliver to Bank "Bank's Treasury Terms and
Conditions" booklet agreements (including user documentation and set-up forms) covering
electronic funds transfers and other treasury management services, (b) appoint and designate,
from time to time, a person or persons who may request withdrawals, orders for payment or
transfers on behalf of BCRUA/Depositor in accordance with the electronic fund or funds transfer
agreement and addenda, and (c)make withdrawals or transfers by written instrument.
2
The General Manager shall be the designated officer to serve as the primary liaison
between BCRUA/Depositor and Bank and, as the designated officer, may exercise the powers
and duties as authorized by applicable law.
V
CONTROLLING DOCUMENT
Bank's Deposit Agreement is incorporated herein for all purposes; however, to the extent
that any provision therein conflicts with any provision herein, this Depository Contract will
control.
VI
TIME DEPOSITS
BCRUA/Depositor may arrange for time deposits, and Bank may accept and shall hold
such deposits subject to payment in accordance with the terms of the deposit. Interest shall be
calculated at the rate which Bank has bid for the particular denomination and time period of said
deposit at competitive public bidding for said deposits. Time deposits will mature on or before
the expiration of this contract. All time deposits that mature beyond the expiration of this
contract will be at non-contractual interest rates negotiated at the time of purchase.
VII
COMPENSATION
Bank will be compensated for any and all services rendered to BCRUA/Depositor under
this contract. Bank agrees to offset monthly service fees against its customary earnings credit for
balances in BCRUA/Depositor's non-interest bearing transaction accounts; provided, however,
that if there is insufficient earnings credit against which such fees may be offset,
BCRUA/Depositor will be charged for such services monthly.
VIII
COLLATERAL SECURITY
All funds on deposit with Bank to the credit of BCRUAJDepositor shall be secured by
collateral as provided for in the Public Funds Collateral Act of 1989 (Chapter 2257 of the Texas
Government Code). The total market value of the collateral (which includes accrued interest or
income to the extent it is not included in the market price) securing such deposits will be in an
amount at least equal to the amount of such deposits plus the amount of any accrued interest
thereon and less the amount that such deposits are insured by an agency or instrumentality of the
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United States government. The market value with respect to any securities (collateral) as of any
date and priced on such date will be obtained from a primary dealer. When additional collateral
is required to cover incremental deposits, Bank must receive the request for collateral prior to
10:30 a.m. on the day the deposits are actually received. Twenty-four (24) hours' notice is
necessary on incremental deposits in excess of$3 million.
IX
COLLATERAL TO TRUSTEE
Bank has heretofore or will immediately hereafter deliver to Trustee collateral of the kind
and character above mentioned of sufficient amount and market value to provide adequate
collateral for the funds of BCRUA/Depositor deposited with Bank. Said collateral or substitute
collateral, as hereinafter provided for, shall be kept and retained by Trustee in trust so long as the
depository relationship between BCRUA/Depositor and Bank shall exist hereunder, and
thereafter so long as deposits made by BCRUA/Depositor with Bank hereunder, or any portion
thereof, shall have not been properly paid out by Bank to BCRUA/Depositor or on its order.
X
CURE OF FAILURE OR BREACH AND SURRENDER OF COLLATERAL FOR SALE
Should Bank fail at any time to pay and satisfy, when due, any check, draft, or voucher
lawfully drawn against any deposit and the interest on such deposits or in any manner breach its
contract with BCRUA/Depositor, then BCRUA/Depositor shall give written notice of such
failure or breach to Bank, and Bank shall have three (3) business days to cure such failure or
breach. In the event Bank shall fail to cure such failure or breach within three (3) business days
or should Bank be declared insolvent by a Federal bank regulatory agency, it shall be the duty of
Trustee, upon demand of BCRUA/Depositor (supported by proper evidence of any of the above-
listed circumstances), to surrender the above-described collateral to BCRUA/Depositor.
BCRUA/Depositor may sell all or any part of such collateral and out of the proceeds thereof, pay
BCRUA/Depositor all damages and losses sustained by it, together with all expenses of any and
every kind incurred by it on account of such failure or insolvency, or sale, accounting to Bank
for the remainder, if any, of said proceeds or collateral remaining unsold.
XI
NOTICE OF SALE OF COLLATERAL
Any sale of such collateral, or any part thereof,made by BCRUA/Depositor hereunder may
be either at public or private sale; provided, however, it shall give to both Trustee and Bank at
4
least two (2) hours' notice of the time and place where such sale shall take place, and such sale
shall be to the highest bidder therefor for cash. BCRUA/Depositor and Bank shall have the right
to bid at such sale.
XII
SUBSTITUTION OF SECURITIES
If Bank shall desire to sell or otherwise dispose of any one or more of said securities so
deposited with Trustee, it may substitute for any one or more of such securities other securities
of the same market value and of the character authorized herein. Such right of substitution shall
remain in full force and may be exercised by Bank as often as it may desire; provided, however,
that the aggregate market value of all collateral pledged hereunder, shall be at least equal to the
amount of collateral required hereunder. If at any time the aggregate market value of such
collateral so deposited with Trustee be less than the total sum of BCRUA/Depositor's funds on
deposit with said Bank, then Bank shall immediately deposit with Trustee such additional
collateral as is necessary to cause the market value of such collateral to equal the total amount of
required collateral. Bank shall be entitled to income on securities held by Trustee, and Trustee
may dispose of such income as directed by Bank without approval of BCRUA/Depositor.
XIII
RECEIPTS REQUIRED
Trustee shall promptly forward to BCRUA/Depositor copies of safekeeping or trust receipts
covering all such collateral held for Bank, including substitute collateral as provided for herein.
XIV
REDELIVERY OF COLLATERAL
If at any time the collateral in the hands of Trustee shall have a market value in excess of
the sum of balances due BCRUA/Depositor by Bank, BCRUA/Depositor shall authorize the
withdrawal of a specified amount of collateral, Trustee shall deliver this amount of collateral
(and no more) to Bank, taking its receipt therefor, and Trustee shall have no further liability for
collateral so redelivered to Bank.
XV
CLOSE-OUT
When the relationship of BCRUA/Depositor and Bank shall have ceased to exist between
BCRUA/Depositor and Bank, and when Bank shall have properly paid out all deposits of
5
BCRUA/Depositor, it shall be the duty of BCRUA/Depositor to give Trustee certificate to that
effect; whereupon Trustee shall, with the approval of BCRUA/Depositor, redeliver to Bank all
collateral then in its possession belonging to Bank, taking its receipt therefor. An order in writing
to said Trustee by BCRUA/Depositor and a receipt for such collateral by Bank shall be a full and
final release of Trustee of all duties and obligations undertaken by it by virtue of these presents.
XVI
INVESTMENT POLICY
It is the intention of the parties hereto that BCRUA/Depositor shall retain the maximum
flexibility to invest its funds prudently to earn the highest rate of return consistent with
BCRUA/Depositor's Investment Policy as adopted by the Board, and consistent with other
applicable laws.
XVII
NEW SERVICES
BCRUA/Depositor may negotiate new services with Bank as deemed necessary by
BCRUA/Depositor. The interest rate to be earned, as well as the other terms and conditions
regarding the service will be mutually agreed upon by BCRUA/Depositor and Bank. Any such
new service agreement will be executed in writing as an addendum to this contract.
XVIII
SEVERABILITY
If any term or provision of this contract is held to be illegal or invalid, such illegality or
invalidity shall not affect the remaining provisions of the contract, which remaining provisions
shall remain in full force and effect as if this contract had been executed with the illegal or
invalid portion thereof eliminated. It is hereby declared the intention of the parties that they
would have executed the remaining portion of this contract without including any such term,
provision, part, parts, or portions which may, for any reason, be hereafter declared illegal or
invalid.
XX
INDEMNIFICATION
Bank agrees that it will use due care and diligence in all of its activities and operations
authorized under this contract. Bank shall be liable to BCRUA/Depositor only for actual
damages incurred as a direct result of Bank's failure to exercise reasonable care under this
6
contract. In no event will Bank be liable for any indirect, consequential or punitive loss, damage,
cost or expense of any nature (even if advised of the possibility of such loss, damage, cost or
expense) including, without limitation, any economic loss or damage, expense and loss of
business, profits or revenue, goodwill and anticipated savings, loss of or corruption to
BCRUA/Depositor's data, loss of operation time or loss of contracts.
Bank will not be responsible for the acts or omissions of BCRUA/Depositor or its officers,
employees or agents (including but not limited to the amount, accuracy, timeliness or
authorization of any instructions or information from BCRUA/Depositor) or the acts or
omissions of any other person or entity including, but not limited to, any clearing house
association or processor, any U.S. Federal Reserve Bank or any other country's central bank, any
other financial institution or any supplier, and no such person or entity will be deemed to be
Bank's agent.
Bank will not be liable for and will be excused from any failure or delay in performing
Bank's obligations under this contract if such failure or delay is caused by force majeure
circumstances beyond control, including natural disasters such as earthquakes or floods,
emergency conditions such as war, riot, fire, theft or labor dispute, legal constraint or
governmental action or inaction, or BCRUA/Depositor's act, omission, negligence or fault.
Bank will not be liable for any failure to act on Bank's part if Bank's representatives had a
reasonable basis to believe and did believe that Bank's actions would have violated any law, rule
or regulation.
BCRUA/Depositor indemnifies and holds Bank harmless, and agrees to defend, from and
against any and all liabilities, claims, costs, expenses and damages of any nature arising out of or
relating to disputes or legal actions by parties other than Bank and BCRUA/Depositor
concerning this contract. The obligations contained herein shall survive the termination of this
contract.
No indemnification herein shall apply to any costs or damages attributable to Bank's gross
negligence or intentional misconduct.
XX
NON-WAIVER
Failure of either party hereto to insist on the strict performance of any of the provisions
herein or to exercise any rights or remedies accruing hereunder upon default or failure of
performance shall not be considered a waiver of the right to insist on and to enforce by any
appropriate remedy strict compliance with any other obligation hereunder or to exercise any right
or remedy accruing as a result of any future default or failure of performance.
XXI
CONFIDENTIALITY
All data relating to BCRUA/Depository's business provided to Bank by
BCRUA/Depository will be treated confidentially and safeguarded by Bank, using the same care
and discretion that it uses with data that Bank designates as confidential, and Bank shall
safeguard all funds and investments of BCRUA/Depository while such funds or investments are
in the possession of or under the control of Bank.
XXII
CAPTIONS
The captions of this contract are for information purposes only and shall not in any way
affect the substantive terms and conditions of this contract.
XXIII
RESERVATION
Pursuant to Chapter 105 of the Texas Local Government Code, BCRUA/Depositor
reserves the right to contract with other depositories for the deposit or investment of a portion of
available public funds of BCRUA.
XXIV
NON-ASSIGNMENT
This contract shall extend to and be binding upon the parties and their respective successors
and assignees; provided, however, that the contract may not be assigned without the written
consent of both parties.
XXV
CONFORMANCE TO LAWS
This contract and all of the transactions contemplated herein shall be governed by and
construed in accordance with the laws of the State of Texas, including all applicable
constitutional provisions, statutes, charter provisions, ordinances, and resolutions. Bank agrees
to fully comply with all applicable laws, including but not limited to the Texas Municipal
8
Depository Law, TEX, LOC. GOV'T CODE ANN. sec. 105.001 et seq., as amended, the Public
Funds Investment Act, TEX. GOVT CODE ANN. sec. 2256.001 et seq., as amended, and the
Public Funds Collateral Act, TEX. GOV'T CODE ANN. sec. 2257.001 et seq., as amended.
XXVI
VENUE
Venue and jurisdiction of any suit or right or cause of action arising under or in connection
with this contract shall be exclusively in Williamson County, Texas, and any court of competent
jurisdiction shall interpret this contract in accordance with the laws of the State of Texas.
XXVII
RELATIONSHIP OF PARTIES
Nothing contained in this contract shall be deemed or construed by the parties hereto or any
other third party to create the relationship of principal and agent, partnership,joint venture, or of
any other association whatsoever between the parties, it being expressly understood and agreed
that no provision contained in this contract nor any act or acts of the parties hereto shall be
deemed to create any relationship between the parties other than the relationship of BCRUA and
Depository Bank as those terms are understood herein.
Executed in multiple originals on this the Zeday of the month of ,
2009, by the undersigned duly authorized officers of the parties hereto.
FOR BCRUA FOR DEPOSITORY BANK
By: By:
Printed N Printed Name:
Title: Title:
Date Signed: Date Signed:
FOR BCRUA,ATTEST:
B d Secretary
9
Attachments:
Exhibit "A": Bank of America Deposit Agreement and Disclosures
Exhibit`B": Tri-Party Collateral Management Agreement
Exhibit"C": Treasury Services Terms and Conditions
Exhibit"D": Bank of America Account Analysis Price Schedule
Exhibit "E": Bank of America Safekeeping Terms and Conditions
10
DATE: May 15, 2009
SUBJECT: BCRUA Board Meeting— May 20, 2009
ITEM: 8B. Consider a resolution authorizing the President to execute a contract with
the Bank of America, N.A. for depository& banking services.
PRESENTER: Cindy Demers, Assistant City Manager, City of Round Rock
Justification/Background:
This agreement sets forth the terms of the contract for banking and depository services with Bank of
America.