City Council

Agenda Request

Agenda Of:

11/17/2009

Agenda Request No:

iii-c

Initiated By:

Mary House

Responsible Department:

Human resources

Presented By:

Mary House

Department Head:

Mary house

 

 

Additional Department. Head (s):

Linda Symank

Subject / Proceeding:

Banking agreement between the City and JPMorgan Chase

Exhibits:

Resolution

Clearances

Approval

Legal:

N/A

Executive Director:

N/a

Purchasing:

None

Asst. City Manager:

Karen Glynn

Budget:

None

City Manager:

Allen Bogard

Budget

Expenditure Required:  $

0

Current Budget:  $

0

Additional Funding:  $

0

Recommended Action

Approve resolution 09-43 authorizing the City Manager to open bank accounts with JPMorgan Chase.

Executive Summary

On September 15, 2009 City Council authorized the City Manager to enter into a contract with Cigna Healthcare to administer our group health plan. The City’s 2010 group health plan includes an option for a Health Savings Account.  As such, Cigna has asked that we adopt a resolution giving the City Manager authorization to open health savings accounts with JP Morgan Chase on behalf of the City’s medical plan and in accordance with the health contract.  

Exhibits

 

RESOLUTION NO. 09-43

 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUGAR LAND, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A DEMAND DEPOSIT ACCOUNT WITH JPMORGAN CHASE FOR THE ADMINISTRATION OF EMPLOYEE HEALTH SAVINGS ACCOUNTS WITH CONNECTICUT GENERAL LIFE INSURANCE COMPANY.

 

WHEREAS, Connecticut General Life Insurance Company (Administrator) will administer health and accident benefits programs of the City of Sugar Land (City); and

 

WHEREAS, to facilitate the administration of these benefits programs, the City desires to open an account with JPMorgan Chase;  NOW, THEREFORE,

 

 

BE IT RESOLVED BY THE CITY COUNCIL

OF THE CITY OF SUGAR LAND, TEXAS:

 

 

            Section 1.   That the City open a demand deposit account with JPMorgan JP Morgan Chase, Account No. _________________ (Account), and that the officers and agents of the City and of the Administrator are authorized to deposit funds into the Account and that the officers and agents of the Administrator are further authorized to deliver standing instructions to JPMorgan Chase respecting deposits of funds of the City to be made to the Account and corresponding debits to such other account of the City as shall be specified by the City; and

 

Section 2.   That until the further order of the City Council, any of the funds of the City or of the Administrator deposited in the Account shall be subject at any time to withdrawal or charge upon the following terms only:  (1) in accordance with orders or instructions delivered to JPMorgan Chase in the name of the Administrator electronically, orally, in writing, or by any other method and (2) upon debits or charges to the Account effected by JPMorgan Chase in connection with returns or reversals of amounts previously credited to the Account or adjustments of erroneous credits.

 

Section 3.  That JPMorgan Chase is hereby authorized to permit any such withdrawal or make any such charge in accordance with such instructions without inquiry as to the circumstances of such withdrawal or charge or the disposition of the proceeds and, at JPMorgan Chase's option, even if the Account is not in credit to the full amount of such withdrawal or charge; it being understood that some or all of the funds on deposit in the Account will be transferred from time to time to an account or accounts maintained by the Administrator with JPMorgan Chase.

 

Section 4.  That JPMorgan Chase shall not, unless otherwise directed by a representative of the Administrator whose name and signature has been certified to JPMorgan Chase by an officer of the Administrator, (1) act on a stop-payment request, (2) except as hereinabove described, withdraw or permit the withdrawal of any amount from the Account.

 

Section 5.  That (1) all statements of account in connection with the Account, (2) all balance and transaction information in connection with the Account, (3) all information regarding checks, and (4) all correspondence received by JPMorgan Chase in connection with the Account shall be transmitted or mailed by JPMorgan Chase to the Administrator and not to the City.

 

Section 6.  That the City shall be liable for any and all overdrafts in the Account and unconditionally promises to pay to JPMorgan Chase the amount of each such overdraft, it being understood that the City's arrangements with the Administrator may contemplate the existence of overdrafts in the Account from time to time.

 

Section 7.  That the City authorizes and directs its City Secretary to promptly notify JPMorgan Chase in writing of any change in these resolutions, that any such change shall not be effective until JPMorgan Chase has received such written notice of the same at such address as JPMorgan Chase shall specify, and has had a reasonable opportunity to act on it and that until such time, JPMorgan Chase is authorized to continue to act in accordance with these resolutions and shall be indemnified and saved harmless from any loss or liability incurred in continuing to act in accordance with these resolutions, even though these resolutions may have changed.

 

APPROVED on   _______________________________, 2009.

 

 

                                                                                                _________________________

                                                                                                James A. Thompson, Mayor

 

ATTEST:

 

_____________________________

Glenda Gundermann, City Secretary

 

Reviewed for Legal Compliance:

 

City Secretary’s Certificate

 

I, as City Secretary of the City of Sugar Land, Texas, a political subdivision of the State of Texas, (the “City”), do hereby certify to JPMorgan Chase that a meeting of the City Council of the City was duly called and held on the 17th day of November, 2009, and that at said meeting a quorum was present and voting throughout, and that Resolution No. 09-43, on motion duly made and seconded were unanimously adopted and are now in full force and effect.

 

The undersigned further certifies that the reference resolution has not been rescinded or changed, but is now in full force and effect, and that there is no provision in the Ordinance of the City limiting the power of the City Council to pass the resolutions and that the same are in conformity with the provisions of said ordinance of the City.

 

IN WITNESS WHEREOF, I have hereunto signed my name and affixed the seal of said City this _____ day  of November, 2009.

 

___________________________________

Glenda Gundermann,

City Secretary of the City of Sugar Land, Texas.