HomeMy WebLinkAboutRes 2021-02-867 One-Year Extension of Primary Depository Bank Services Contract to Independent BankCITY OF ANNA, TEXAS
RESOLUTION NO. 2021-L,-$(o I
A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING
A ONE -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 Council approved resolution 2018-03-421 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 recitals set forth above 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 23th day of February, 2021.
SECRET.
PIKE, MAYOR
City of Anna
111 North Powell Parkway
Anna, TX 75409
972-924-3325
www.annatexas.00v
February 10, 202]
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
aa
The expiration of the first of tlu•ee (3) one-year terms of the Depository Bank Services Agreement is May
31, 2021. The City is opting to exercise the second of the three (3) one-year contract extension options
provided for in the Agreement to extend the term through May 31, 2022 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 forwat•d to the extended
term.
Should you have any questions
972.924.3 325.
Sincerely,
Alan Guard
Finance Director
INDEPENDENT I'INANCIAL
ACCEPTED BY:
d additional
or nee
or explanation, please contact me at
1�MN TU b
DATE: 02/10/2021
VP-Senior Public
PRINTED NAME: Noah Elrod TITLI•;; Fund Officer
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, llesi:fnatinn of De»ositnry. The City, through action of the City Council, on March 27, 20i 8,
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. Grneral. 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. Scope of Services. 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 FIFA, 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 Di, nrescntatives. 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.
S.
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 Agreement. 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 Bank'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. `l lic terms and provisions of this
Agreement may not be amended, nnered, or waived except by mutual Ageement evidenced by a written
instrument signed by duly authorized representatives of both parties.
8. Collateralization. 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 of the Texas Government Code
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as amended), the Public Funds Collateral Act (Chapter 2257 of the Texas Government Code), City's
Investment Policy, and Bank's Application.
Ifmarketable securities are pledged, the total market value ofthe securittes securing such deposits
wIII 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
III monitor and in the required collateral margins and levels at all times.
Bank. has berctafore, 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
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unds 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 Least equal to the minimum
required amount as per City's investment Policy. The termination or expiration ofany surety bond or letter
of credit shall be aminimum oftwo (2) business days after City anticipates withdrawing the secured deposit.
9. Successo18. 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. Conuiensatiou. 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 term 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. Counterparts. 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, Authority to Execute. 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.
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15. Notices, Except as may otherwise be specified in the applicable service-leveI agreements
and/or set-up forms, any demand, notice, request, instruction, designation, or other communications)
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
City: 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.
I ti. Sevcrnbllty. If any provision of this 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 remaining portion bf the Agreement not declared illegal, invalid, or unenforceable shall remain valid
and in full force and effect for the term remaining.
l7, 31n013nL Commitntoltt. Bank hereby acknowledges itself duly and firmly bound for the
faithful performance ofall the duties and obligations required by applicable law, including the Government
We 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. Ga►ttinautloti. Unless this Agreement is terminated sooner, Bank's designation as the
primary City Depository will remain continuously in effect through May 31, 2020 subject to execution of
the extension options if applicable.
Executed by the undersigned duly authorized officers of the parties hereto:
CITY OF AN1VA, TEXAS
By:
Name �? t Stoll t Q►
ATTEST: ATTEST
Name:,oAd,-4
Title: n! f-t/ ,S'�,i i'P ?7Y'U Title: e040`2
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