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HomeMy WebLinkAboutRes 2022-03-1120 Extension of the Primary Depository Bank Services with Independent BankCITY OF ANNA, TEXAS RESOLUTION NO. _Ave ll 0�j� I iL&2 A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AONE-YEAR EXTENSION OF THE PRIMARY DEPOSITORY BANK SERVICES CONTRACT TO INDEPENDENT BANK . WHEREAS, the State of Texas Local Government Codes: Chapter 105 Municipal Depository Act; Chapter 176 Conflict of Interest Act; Chapter 2256 Public Funds Investment Act; and Chapter 2257 Public Funds Collateral Act established the process for selecting a depository bank; and, WHEREAS, Resolution 2013-02-06 of the City of Anna (City) authorized applications to be received from financial institutions located outside the City; and, WHEREAS, the City of Anna, Texas City Council ("City Council") approved resolution 2018-03421 awarding a contract for primary depository bank services with Independent Bank; and WHEREAS, the contract allows for three one-year extensions. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS, THAT: Section 1. Recitals Incorporated. The above -referenced recitals are incorporated herein for all purposes as if set forth in full. Section 2. Approval and Authorization of Contract The City Council hereby approves cone -year extension, subject to approval as to form by the City Attorney, for Primary Depository Bank Services with Independent Bank. PASSED by the City Council of the City of Anna, Texas, on this the 22nd day of March, 2022. ATTEST: Carrie L. Land, City Secretary DEPOSITORY BANK SERVICES AGREEMENT THIS DEPOSITORY BANK SERVICES AGREEMENT hereinafter called the "Agreement", is made and entered into on the date last herein written by and between the City of Anna, Texas, hereinafter called the "City", and Independent Bank a banking association, organized under the law of the United States and authorized by law to do banking business in the State of Texas, hereinafter called the "Bank" and provides as follows: 1, D'csit►.nntion of Detaositnrv. The City, through action of the City Council, on March 27, 2018, hereby designates Bank as a primary depository bank for the period beginning June 1, 2018, and continuing through May 31, 2020, with the option for three (3) one-year extensions under the same terms and conditions. 2. General'. All services rendered to City by Bank under this Agreement shall be performed in accordance with accepted commercial banking standards for public fund organizations and under the overall direction and instructions of City pursuant to Bank's standard operations, policies, and procedures. 3, Scone of Set vices., Bank agrees to provide those services as described in the City of Anna, Texas Request for Application for Depository Bank Services released on November 30, 2017 hereinafter referred to as the "RFA". The RFA and Bank's response to the RFA, hereinafter referred to as the "Application", are incorporated herein by reference. Bank acknowledges that all services performed by Bank are subject to the approval of City. 4. City Renresentatives. During the term of this Agreement, City will, through appropriate action of its City Council, designate the officer, or officers, who singly or jointly will be authorized to represent and act on behalf of City in any and all matters of every kind arising under this Agreement and to (a) appoint and designate, from time to time, a person or persons who may request withdrawals, orders for payment or transfer on behalf of City in accordance with the electronic funds or funds transfer agreement and addenda, and (b) make withdrawals or transfer by written instrument. 5. Custodian. City and Bank, by execution of this Agreement, hereby designate Federal Home Loan Bank as custodian, hereinafter called "Custodian", to hold in trust, according to the terms and conditions of this Agreement, the collateral described and pledged by Bank in accordance with the provisions of this Agreement. 6. Custodian Fees. Any and all fees associated with Custodian's holding of collateral for the benefit of City will be paid by Bank and City will have no liability therefore. 7. Entire Azxrcemoni. The entire agreement between Bank and City shall consist of this Agreement, City's RFA (except to the extent Bank took specific exceptions in the Banlc's Application), Bank's Application, the Custodial Agreement with Custodian, and other such bank service agreements, policies and documents as may be required and approved by the parties (together, the "Banking Agreements"), each incorporated by reference as they presently exist and each listed in governing order of precedence in the event of conflict among the documents. This Agreement supersedes any and all prior representations, statements, and agreements, whether written or oral. The terns and provisions ot'tliis Agreemont may not be amended, altered, or waived except by mutual agreement evidenced by a written instrument signed by duty authorized representatives of both parties. 8. ,Coilaterrliration. All funds on deposit with Bank to the credit of City shall be secured by collateral as provided for in the Public Funds Investment Act (Chapter 2256 ofthe Texas Government Code 1 as amended), the Public Funds Collateral Act (Chapter 2257 of the Texas Government Code), City's Investment Policy, and Bank's Application. If marketable securities are pledged, the total market value of the securities securing such deposits will be in an amount at least equal to the minimum required amount as per City's Investment Policy, `The market value of any pledged securities (collateral) will be obtained from non -Bank -affiliated sources. Bank will monitor and maintain the required collateral margins and levels at all times. Bank has heretofore, or will immediately hereafter, deliver to Custodian collateral of the kind and character above mentioned of sufficient amount and market value to provide adequate collateral for the funds of City deposited with Bank. Custodian will accept said collateral and hold the same in trust for the purposes herein stated, Said collateral or substitute collateral, as hereinafter provided for, shall be kept and retained by Custodian in trust so long as deposits of City remain with Bank. Bank hereby grants a security interest in such collateral to City. If at any time the collateral in the hands of Custodian shall have a market value in excess of the required balances, City may authorize the withdrawal of a specified amount of collateral, and Custodian shall deliver this amount of collateral (and no more) to Bank. If surety bonds or letters of credit are utilized, City shall agree as to the issuer and form of contract. prior to the pledge. The amount of surety bonds or letters of credit will be at feast equal to the minimum required amount as per City's Investment Policy. The termination or expiration of any surety bond or letter of credit shall be aminimum oftwo (2) business days after City anticipates withdrawing the secured deposit. 9. Successors. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Whenever a reference is made herein to either party, such reference shall include the parry's successors and assigns. 10. Coinnensation. City and Bank agree that any compensation for the performance of all duties and services is set forth in the Application accepted by City. Except as may otherwise be provided in the Banking Agreements, said compensation shall constitute full payment for all services, liaison, products, materials, and equipment required to provide the professional banking services, including services, materials, training, equipment, travel, overhead, and expenses. Fees shall be fixed for the team of the Banking Agreements, including all extensions. 11. Consideration, The Banking Agreements are executed by the parties hereto without coercion or duress and for substantial consideration, the sufficiency of which Is forever confessed. 12. Counternayrts The Banking Agreements may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes. A facsimile signature will also be deemed to constitute an original if properly executed. 13. ;Authorl!j to Zxecute. The individuals executing the Banking Agreements on behalf of the respective parties below represent to each other and to others that all appropriate and necessary action has been taken to authorize the individual who is executing the Banking Agreements to do so for and on behalf of the party for which his or her signature appears, that there are no other parties or entities required to execute the Banking Agreements in order for the same to be authorized and binding on the party for whom the individual is signing and that each individual affixing his or her signature hereto is authorized to do so. 14. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Texas. Collin County will be the venue for any lawsuit arising out of this Agreement. 2 15. Notices. Except as may otherwise be specified in the applicable service -level agreements and/or setup forms, any demand, notice, request, instruction, designation, or other communication(s) required in writing under this Agreement shall be personally delivered or sent certified mail, return receipt requested, to the other party as follows: Bank: Mr. Johnny Bratcher, Executive Vice President Independent Bank 223 McKinney Street Farmersville, Texas 75442 Gity: Ms. Dana Thornhill, Finance Director City of Anna 1 I 1 North Powell Parkway Anna, Texas 75409 Changes to notice information may be made by either party with written notification to the other party. 16. �,evernbllity If any provision ofthis Agreement is held to be illegal, invalid, or unenforceable by a court of competent jurisdiction, the parties, shall, if possible, agree on a legal, valid, and enforceable substitute provision that is as similar in effect to the illegal, invalid, or unenforceable provision as possible. The retraining portion of the Agreement not declared illegal, invalid, or unenforceable shall remain valid and in full force and effect for the term remaining. 17. �indICommitment: Bank hereby acknowledges itself duly and firmly bound for the faithful peiformance of the duties and obligations required by applicable law, including Lite Government Code and Local Government Code, such that all funds deposited with it as depository shall be faithfully kept by it and accounted for according to law. 18. Continuation. Unless this Agreement is terminated sooner, Bank's designation as the primary City Depository will remain continuously in effect through May 319 2020 subject to execution of the extension options if applicable. Executed by the undersigned duly authorized officers of the parties hereto: C>iTY OF ANNA, TEXAS By: Name: -'gys I" 'Su I Opp ATTEST: ATTEST Name Name• v. 4 D e ,/� z,:.� Title: Title: t l s•+� y—.A r'�t^t1 14tl/� 3 City of Anna 111 North Powell Parkway Anna, TX 75409 972-924-3325 www.a nnatexanov March 22, 2022 Mr. Johnny Bratcher Executive Vice President and Regional President Independent Financial P. O. Box 592 Farmersville, Texas 75442 RE: City of Anna, Texas - Depository Bank Services Contract Extension Dear Mr. Bratcher: THE CITY OF na The expiration of the second of three (3) one-year terms of the Depository Bank Services Agreement is May 31, 2022. The City is opting to exercise the third of the three (3) one-year contract extension options provided for in the Agreement to extend the term through May 31, 2023 under the same terms and conditions. To confirm the Bank's acceptance of this contract extension, please complete the section below and return a copy of this letter to me. We have appreciated our business relationship with you and the Bank and look forward to the extended term. Should you have any questions or need additional information or explanation, please contact me at 972.924.3325. Sincerely, Alan Guard Finance Director INDEPENDENT FINANCIAL ACCEPTED BY: _ �� DATE: 03 2 9 LU Z Z PRINTED NAME: /✓4� ol-"" TITLE: