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ORDINANCE NO 99-3�
AN ORDINANCE OF THE CITY COUNCIL, CITY OF DENTON, TEXAS AUTHORIZING
THE MAYOR TO EXECUTE AN AMENDMENT TO THE CURRENT DEPOSITORY
CONTRACT WITH TEXAS BANK FOR A PERIOD OF NINETY (90) DAYS AND ADDING
A Y2K COMPLIANCE CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, by Ordinance No 97-305 the City of Denton entered into a contract with
Texas Bank to serve as its Depository for custody of City funds for a term beginning December
1, 1997 and ending on November 30, 1999, and
WHEREAS, the City is in the process of soliciting applications for a new depository
contract, but - unless the contract is extended - the new depository contract would be awarded
during the period when the City is preparing for Y2K compliance and testing and investigating
its hardware, software, firmware products and other equipment and assets for Y2K compliance,
and
WHEREAS, the transfer of depositories and the interrelated transfer of financial accounts
from one depository to another during this sensitive period could result in Y2K compliance
problems that could adversely impact the City's financial integrity and possibly the health, safety
and welfare of its citizens, and
WHEREAS, Texas Bank has given its assurance that if the contract is extended for a
ninety (90) day period it will provide a warranty that it is Y2K compliant, and
WHEREAS, extending the contract through February 28, 2000 will allow the City time to
assess any Y2K compliance problems and to correct those problems before the actual change of
depository and transfer of accounts from one depository to another, and
WHEREAS, the City Council deems it in the public interest to extend the current
depository contract with Texas Bank for a term of ninety (90) days , NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the Mayor, or in his absence the Mayor Pro Tem, is hereby authorized
to execute a First Amendment to the current Depository Contract with Texas Bank extending the
contract through February 28, 2000, and adding a Y2K compliance clause, substantially in the
form of the First Amendment, which is attached to and made a part of this ordinance for all
purposes
SECTION 2 That the City Manger is authorized to make the expenditure of funds, take
the actions and pay the fees as indicated in Depository Contract as amended and extended
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SECTION 3 That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the &�C day of 1999
JAC LLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
By
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
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FIRST AMENDMENT TO DEPOSITORY CONTRACT
WITH TEXAS BANK
STATE OF TEXAS
COUNTY OF DENTON
This First Amendment to that certain Depository Contract entered into between the City of
Denton, Texas, a Texas municipal corporation, hereinafter referred to as "City" and Texas Bank,
a bank located in Texas whose deposits are insured by the Federal Deposit Insurance Corporation
hereinafter referred to as "Depository" for the term of two (2) years beginning December 1, 1997
and ending November 30, 1999 hereinafter referred to as "Depository Contract',
WHEREAS, the City and Depository, as authorized an Ordinance No 97-304, entered
into a depository contract in accordance with provisions of Chapter 105 of the Texas Local
Government Code and other applicable laws for the Bank to provide services for a period of two
(2) years, beginning December 1, 1997 and ending November 30, 1999, and
WHEREAS, the City is in the process of soliciting applications for proposals from banks
and qualified financial institutions to serve as a depository for the City after the expiration of this
contract, and
WHEREAS, the period in which the award of a new depository contract would fall would
be during the period when the City is testing and investigating all its hardware, software,
firmware and other assets and equipment to determine whether or not all its assets and equipment
are Y2K compliant, and
WHEREAS, to award a new Depository Contract and to transfer banking services during
this critical period of testing and investigation of various hardware, software and firmware
systems, other assets and equipment for Y2K compliance could increase the risk of errors in
financial transactions during the transfer of accounts from one depository to another which could
create an, emergency which could threaten the public health, safety or welfare, and
WHEREAS, that Depository has agreed to amend its present contract giving the City its
warranty and assurance that the Depository is Y2K compliant, and
WHEREAS, the City Council deems it in the public interest under these circumstances to
approve an amendment to the existing depository contract to extend the contract for nmety (90)
days, NOW, THEREFORE,
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In consideration of the continued payment of fees for the provision of services during the
extended period by City and the provision of these services by Depository and the addition of the
following YX compliance clause the parties agree to amend the contract as follows
SECTION 1 That the current depository contract with the Texas Bank is hereby
amended as follows
That the term of the contract is hereby extended and Article I of the contract is hereby
amended to extend the contract for an additional ninety (90) days from and including
December 1, 1999 through February 28, 2000
SECTION 2 That the depository contract is amended by adding a Y2K compliant clause
as Article XVII which shall read as follows
ARTICLE XVII
Depository warrants that each hardware, software, and firmware product delivered or
utilized under the contract shall be able to accurately process date data (including, but not
limited to, calculating, comparing, and sequencing) from, into, and between the twentieth
and twenty-first centuries, including leap year calculations, when used in accordance with
the product documentation provided by Depository, provided that all other interfaces
(e g , hardware, software, firmware) used in combination with such product properly
exchange date data with it If the contract requires that Depository's products must
perform as a system in accordance with the foregoing warranty, then that warranty shall
apply to Contractor's products as a system The duration of this warranty and the
remedies available to the City of Denton, Texas for breach of this warranty shall be as
defined in, and subject to, the terms and limitations of Depository's standard commercial
warranty or warranties contained in the contract, provided that notwithstanding any
provision to the contrary in such commercial warranty or warranties, the remedies
available to the City of Denton, Texas under this warranty shall include repair or
replacement of any Depository supplied product whose non-compliance is discovered and
made known to Depository in writing Nothing in this warranty shall be construed to
limit any rights or remedies the City of Denton, Texas may otherwise have under the
contract with respect to defects
SSECTION 3 That save and except as amended hereby, all the remaining terms and
conditions of the Depository Contract shall remain in full force and effect
SECTION 4 That the parties hereunder have executed this Agreement on the digll
authorized officials of the Depository and the City have executed this Agreement on the &
day of 1999
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ATTEST
JENNIFER WALTERS, CITY SECRETARY
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APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
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CITY OF DENTON, TEXAS
JA LLER, MAYOR
TEXAS BANK
By CA"��
PnntedName Gwen Chick
Title Chief Financial Officei
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