1999-434AN 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 tts Depository for custody of C~ty funds for a term begmmng December
1, 1997 and ending on November 30, 1999, and
WHEREAS, the City is an the process of sohclttng apphcat~ons for a new depository
contract, but - unless the contract ts extended - the new depository contract would be awarded
dunng the period when the City ts prepanng for Y2K compliance and testing and mvestlgatmg
tts hardware, software, firmware products and other eqmpment and assets for Y2K compliance,
and
WHEREAS, the transfer of depomtones and the tnterrelated transfer of financial accounts
from one depository to another during this sensttlve period could result tn Y2K compliance
problems that could adversely impact the City's finanmal 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 penod at wall provide a warranty that ~t is Y2K comphant, and
WHEREAS, extending the contract through February 28, 2000 wall allow the Ctty time to
assess any Y2K comphance 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 at ~n the public tnterest to extend the current
deposttory contract with Texas Bank for a term of ninety (90) days, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
~ That the Mayor, or tn hts absence the Mayor Pro Tem, ~s hereby authorized
to execute a First Amendment to the current Depository Contract with Texas Bank extendmg the
contract through February 28, 2000, and addtng a Y2K compliance clause, substanUally an the
form of the First Amendment, whmh ts attached to and made a part of th~s ordtnance for all
purposes
~ That the Ctty Manger ts authorized to make the expenditure of funds, take
the actions and pay the fees as ~ndlcated an Depository Contract as amended and extended
~ That this or&nance shall become effective lmme&ately upon ~ts passage
and approval
PASSED AND APPROVED th,s the /~day of ~~ ,1999
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
By
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FIRST AMENDMENT TO DEPOSITORY CONTRACT
WITH TEXAS BANK
STATE OF TEXAS §
COUNTY OF DENTON §
Thas Farst Amendment to that certain Depository Contract entered into between the City of
Denton, Texas, a Texas munaeapal corporation, hereinafter referred to as "City" and Texas Bank,
a bank located m Texas whose deposats are insured by the Federal Deposit Insurance Corporation
hereinafter referred to as "Depository" for the term of two (2) years begmmng December 1, 1997
and ending November 30, 1999 hereinafter referred to as "Deposatory Contract",
WHEREAS, the City and Depository, as authorized an Ordinance No 97-304, entered
~nto a depository contract an accordance w~th provasaons of Chapter 105 of the Texas Local
Government Code and other apphcable laws for the Bank to provide services for a period of two
(2) years, beginning December l, 1997 and ending November 30, 1999, and
WHEREAS, the Caty is an the process of sollcatang apphcatlons for proposals from banks
and qualified ftnane~al institutions to serve as a depository for the City after the exp~ratxon of this
contract, and
WHEREAS, the penod m wluch the award of a new deposatory contract would fall would
be dunng the period when the City as testang and ~nvestlgat~ng all ats hardware, software,
firmware and other assets and eqmpment to determine whether or not all ars assets and equipment
are Y2K eomphant, and
WHEREAS, to award a new Depository Contract and to transfer banking servaces dunng
thas crmcal period of testing and investigation of varaous hardware, software and firmware
systems, other assets and equipment for Y2K compliance could ancrease the risk of errors an
financml transactions dunng the transfer of accounts from one deposatory to another whach could
create an~emergency wluch could threaten the public health, safety or welfare, and
WHEREAS, that Deposatory has agreed to amend its present contract g~vlng the City its
warranty and assurance that the Depository ~s Y2K compliant, and
WHEREAS, the City Council deems n ~n the public interest under these circumstances to
approve an amendment to the existing deposatory contract to extend the contract for ninety (90)
days, NOW, THEREFORE,
In consideration of the continued payment of fees for the provision of services dunng the
extended period by City and the provision of these services by Depository and the addition of the
following Y2K compliance clause the parties agree to amend the contract as follows
~ 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 mnety (90) days from and including
December 1, 1999 through February 28, 2000
~ That the depository contract is amended by adding a Y2K compliant clause
as Article XVII whaeh 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
hm~ted to, calculatmg, companng, and sequencing) from, into, and between the twentieth
and twenty-ftrst centuries, including leap year calculations, when used m accordance with
the product documentation provided by Depository, provided that all other interfaces
(e g, hardware, software, firmware) used ~n combination with such product properly
exchange date data with ~t If the contract reqmres that Depository's products must
perform as a system m accordance w~th 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 C~ty of Denton, Texas for breach of th~s warranty shall be as
defined m, and subject to, the terms and hmltations of Depository's standard commercial
warranty or warranties contained ~n the contract, provided that notwithstanding any
pmv~slon to the contrary m such commercial warranty or warrant~es, the remedies
available to the City of Denton, Texas under this warranty shall include repmr or
replacement of any Depository supplied product whose non-comphance is chscovered and
made known to Depository m writing Nothing ~n this warranty shall be construed to
hm~t any rights or remedies the City of Denton, Texas may otherwise have under the
contract w~th respect to defects
,$_.E__QT_LQ.!~. That save and except as amended hereby, all the remaining terms and
conditions of the Depository Contract shall remmn m full force and effect
~ That the parties hereunder have executed this Agreement on the dul~,
authonze~daofficmls, of the Depository and the City have executed th~s Agreement °n the
day of~, 1999
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CITY OF DENTON, TEXAS
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
By :~V ~yT./~:'.
TEXAS BANK
PnntedName Gwen ChJ. ck
T~tle ChJ. ef l~lnanc~.al OffJ_ce~-
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