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R-92-1745 - 9/10/1992RESOLUTION NO. f '7 45 L WHEREAS, Chapter 1, Section 1.1100, Code of Ordinances, City of Round Rock, Texas, provides that the City Council shall select a City Depository for the custody of City funds; and WHEREAS, the City has duly advertised for bids from banking firms authorized to submit such bids; and WHEREAS, Bank One, Texas, N.A. - Round Rock has submitted the most favorable bid; and WHEREAS, the City Council desires to accept the bid of Bank One, and to enter into a Depository Contract, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the bid of Bank One is hereby accepted and said institution is hereby selected as the official depository of the City of Round Rock, Texas, for the period beginning October 1, 1992, through September 30, 1994, and the Mayor is hereby authorized and directed to execute on behalf of the City a Depository Contract with Bank One. RESOLVED this 10th day of September, 1992. ATTEST: RS09102B MIKE ROBINSON, Mayor City of Round Rock, Texas STATE OF TEXAS COUNTY OF WILLIAMSON . DEPOSITORY CONTRACT This agreement is made and entered into this 1st day of October, 1992, by and between the City of Round Rock, a Texas municipal corporation situated in Williamson County, Texas, (hereinafter referred to as 'City" and Bank One, Texas, N. A. - Round Rock (hereinafter referred to as "Bank One "), in consideration of the following covenants: I. CITY'S OBLIGATIONS The City shall deposit all its monies with the exception of those monies which the City may invest with the Treasurer of the State of Texas, in direct debt obligations of the United States or other investments under the Public Fund Investment Act (H.B. 1488 - 842a-1 ( V.A.T.C.S.) or any other applicable state or federal law including but not limited to funds which Bank One cannot accept under the Tax Reform Act of 1986, or any other applicable law or banking regulation, with Bank One beginning on October 1, 1992, and ending September 30, 1994. It is the intention of the parties hereto that the City shall retain the maximum flexibility to invest its funds prudently to earn the highest rate of return consistent with the City of Round Rock Investment Policy adopted by the Round Rock City Council by Resolution No. 1462 of June 14, 1990, and with the requirements of the Texas Depository Act (2559(a) et seq V.A.T.C.S. and other applicable statutes). II. BANKING SERVICES Bank One shall, in return for City depositing its monies in Bank One, provide the banking services for the charges as set out in Bank One's Bid for Depository Services and attached schedules which are attached hereto as Exhibit "A ", the City of Round Rock, Texas Request for Proposal (RFP), Depository and Banking Services, attached hereto as Exhibit "B ", which exhibits are made a part of this contract for all purposes as if written word for word herein. Provided, however, should there be any conflict between the terms of this contract and the attached Exhibit "A ", the terms of Exhibit "A" shall be final and binding. III. DEPOSITORY PLEDGES All monies deposited into the Depository under the provisions of this proposal shall be continually secured in accordance with the laws of the State of Texas and especially Articles 2259(a)- 2266(a), V.A.T.C.S., the Texas Public Depository Act, H.B. 1488 - 842a-1 ( V.A.T.C.S.), the Public Funds Collateral Act, Article 2529d, V.A.T.S., the Texas Public Fund Depository Act, H.B. 1488 - 842a-1, V.A.T.C.S., the Texas Public Fund Depository Act, H.B. 1488- 842a -1, V.A.T.C.S., the Texas Public Fund Investment Act and the Federal Tax Reform Act of 1986, to the extent applicable. The security shall be a valid pledge (1). of securities eligible by law at all times at least equal to the total amount of money on deposit. Except as provided in Article 2566(a) of Vernon's Texas Civil Statutes, such pledged securities shall be approved as to type and value by the governing body of the City of Round Rock. Such pledged securities are described on Exhibit A. (2). Bank One will furnish to the Director of Finance detailed monthly statements of securities pledged against the City of Round Rock deposits. IV. NEW SERVICES The City of Round Rock may negotiate new services with Bank One as required. The interest rate to be earned, as well as the other terms and conditions regarding the service will be mutually agreed upon by the City of Round Rock and Bank One. V. PRIMARY LIAISON It is understood that the Director of Finance shall be the primary liaison between the City of Round Rock and Bank One. VI. BID DOCUMENTS Bank One shall fully comply with the terms and conditions of the City of Round Rock, Texas Request for Proposal (RFP) Depository and Banking Services, Resolution No. 1462 establishing Comprehensive Investment Policy and other bid documents which are attached to this contract as Exhibit "B" and made a part of this contract for all purposes, provided, however, should there be any conflict between the terms of the foregoing documents and Exhibit "A ", the terms of Exhibit "A" shall be final and binding. 2 VII. CONFORMANCE TO LAWS This contract is made subject to all applicable statutes, ordinances, constitutional provisions pertaining to municipal home rule cities in the State of Texas, and section of the Charter of the City of Round Rock, and Bank One agrees to comply fully with all such laws including specifically Articles 2559(a)- 2566(a) V.A.T.C.S., H.B. 1488 and the Federal Tax Reform Act of 1986. VIII. 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. IX. CAPTIONS The captions of this contract are for information purposes only and shall not in any way affect the substantive terms and conditions on this contract. X. SEVERABILITY If any provision of this contract or the application of any provision to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the contract which can be given effect without the invalid provision or application, and to this end the provisions of this contract are declared to be severable. XI. DEFAULT Should Bank One default in any of its obligations to City under this contract City shall give Bank One notice of the default in writing, and Bank One shall have ten (10) days from receipt of this notice to correct the default. If Bank One fails to remedy the default within this time, City, at its sole discretion may cancel this contract and Bank One will be fully responsible to pay City all actual damages caused by its default. Nothing herein shall deprive the City of any other legal remedies it may have to enforce the terms of its agreement including bringing suit for damages or enforcing specific performance of this contract. Bank One shall not be liable for consequential, special or indirect damages arising out of breach of this contract. 3 XII. TERMINATION Both the City and Bank One, at their respective options, have the right to terminate the contract at any time after one year, for any reason, with ninety (90) days written notice advising the other party of its intent to terminate the contract. EXECUTED this the 1st day of October, 1992. THE CITY OF ROUND ROCK, TEXAS BANK 7 ��`'� 4 ATT ST: V(cp (hUfcesUned- A. ROUND ROCK •f J \G CHRISTINE R. MARTINEZ .1 Mary Public, State of Texas My Commission Expires JUNE 22, 1993 DATE: September 8, 1992 SUBJECT: City Council Meeting, September 10, 1992 ITEM: 12.B. Consider a resolution authorizing the Mayor to enter into a depository agreement for City funds. STAFF RESOURCE PERSON: David Kautz STAFF RECOMMENDATION: The City's depository agreement is currently with Bank One and expires at the end of September 1992. City staff visited with all banks doing business in the City (Bank one, Union, Hutto, First National and First State) and encouraged them to apply as the City's depository. Only one response was received from Bank One. Staff and the City Attorney are currently analyzing the proposal and will make a formal recommendation at the council meeting.