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RESO 2008-07 - Declare intent to establish funding & open health insurance imprest account w/Chase Manhattan RESOULUTION 2008-07 A RESOLUTION OF THE CITY OF HUNTSVILLE, TEXAS, DECLARING INTENT TO ESTABLISH FUNDING AND OPENING OF HEALTH INSURANCE IMPREST ACCOUNT WITH CHASE MANHATTAN. WHEREAS, the City of Huntsville (Corporation), a home-rule Municipal corporation duly organized and existing under the laws of Texas, held a meeting of the Corporation's City Council on September 2, 2008; and WHEREAS, to implement the Corporation's Agreement with UnitedHealthcare relating to the payment of benefits under the Corporation's employee benefit plan, the Corporation desires to open an account with the Bank with withdrawals therefrom to be subject to the direction of UnitedHealthcare; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,THAT: The Corporation open a demand deposit account with the Bank to be entitled City of Huntsville (Account) or such other name designated by a City Manager, Finance Director or Treasurer of the Corporation. That each officer and agent of the Corporation and UnitedHealthcare is authorized to deposit funds of the Corporation or UnitedHealthcare in the Account. That any funds deposited in the Account be subject at any time, to withdrawal, transfer, or charge upon the following terms only (1) upon checks, drafts or other orders for the payment of money drawn in the name of the Corporation and bearing the signature of persons designated to the Bank from time to time by the Treasurer or any Vice President or other duly authorized officer of UnitedHealthcare or when bearing or purporting to bear the facsimile signature of such persons and (2) in accordance with the orders, instructions, and information transmitted to the Bank on magnetic tape, by computer transmission, in writing or by means of telecommunications by or on behalf of UnitedHealthcare. That the Bank is authorized to (1) pay such check, draft or other order or to make or permit any such withdrawal, transfer or charge in accordance with such orders, instructions or information, regardless of by whom or by what means the actual or purported facsimile signature(s) thereon may have been affixed, (2) to receive same from any holder without inquiry as to the circumstances of issues or the disposition of the proceeds, 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(s) maintained by UnitedHealthcare with the Bank and, (3) at the option of the Bank, to pay any such check, draft, or other order to make or permit such withdrawal, transfer or charge even if the Account shall not be in credit to the full amount of such instrument, withdrawal,transfer or charge. That the Bank is authorized and directed (1) to send UnitedHealthcare checks or drafts purporting to be drawn by the Corporation upon itself which are made payable through the Bank or information relating to such checks and (2) to accept instructions from the persons designated by the Treasurer, any Vice President or any duly authorized officer of UnitedHealthcare to charge the Account and pay the checks or drafts designated by such persons, to stop payment thereon, or to return such checks or drafts unpaid to the presenter provided any such checks or drafts have been returned to the Bank by UnitedHealthcare. That all statements of account in connection with the Account shall be addressed and delivered to the Treasurer of the Corporation or designated representative, with copies thereof made available to UnitedHealthcare, and all cancelled checks, drafts, other orders and correspondence in connection with the Account shall be addressed and delivered to UnitedHealthcare, with copies thereof made available to the Corporation. That the Account shall be a non-interest bearing account, but that no amount will be charged by the Bank for ordinary and customary depository and disbursement services. That the Account shall be closed only upon on written direction of both (1) the Treasurer or the Cit Manager of the Corporation and 2 the Treasurer, an Vice President, or other Y g � ( ) Y duly authorized officer (or the designee of any of the foregoing individuals) of UnitedHealthcare. That upon written notification and instructions from the Treasurer of the Corporation or the City Manager of the corporation to Bank, Bank shall (1) stop payment on any check, draft, or other order, or (2) suspend all authorization hereunder of UnitedHealthcare pending a meeting of Corporation's City Council at the earliest practical time in compliance with the Texas Open Meetings Act. That the Corporation authorizes and directs its Secretary or an Assistant Secretary to � Y Y �'Y notifythe Bank promptly in writing of an chane in these resolutions, such written p p Y g Y g notice to beg iven to the Bank at it offices located at 4 ChaseMetroTech Center — 20 Floor, Brooklyn NY 11245 and that until the Bank has actually received such notice and has had a reasonable opportunity to act upon same, the Bank is authorized 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 thought these resolutions may have changed. Not by way of limitation of any other actual notice, Bank shall be deemed to have actually received notice upon signature on Bank's behalf of a U.S. Mail certified mail return receipt or delivery receipt of a bona fide commercial courier service. PASSED AND APPROVED this 2nd day of Se er J. Turner, Mayor ATTEST: Steph 'e Brim, City Secretary APPR4A. p TO FORM: Thoma , City Attorney CERTIFICATION OF CITY OF HUNTSVILLE RESOLUTION NO. 2008-07 I, Stephanie Brim as City Secretary of the City of Huntsville (Corporation), a home-rule Municipal corporation duly organized and existing under the laws of TX, certify to JPMorgan Chase (Bank), that a meeting of the Corporation's City Council was duly called and held on September 2, 2008 and that a quorum was present and voted unanimously to adopt the following resolutions which are now in full force and effect: WHEREAS, to implement the Corporation's Agreement with UnitedHealthcare relating to the payment of benefits under the Corporation's employee benefit plan, the Corporation desires to open an account with the Bank with withdrawals therefrom to be subject to the direction of UnitedHealthcare. RESOLVED, that the Corporation open a demand deposit account with the Bank to be entitled City of Huntsville (Account) or such other name designated by a City Manager, Finance Director or Treasurer of the Corporation. RESOLVED, that each officer and agent of the Corporation and UnitedHealthcare is authorized to deposit funds of the Corporation or UnitedHealthcare in the Account. RESOLVED, that any funds deposited in the Account be subject at any time, to withdrawal, transfer, or charge upon the following terms only (1) upon checks, drafts or other orders for the payment of money drawn in the name of the Corporation and bearing the signature of persons designated to the Bank from time to time by the Treasurer or any Vice President or other duly authorized officer of UnitedHealthcare or when bearing or purporting to bear the facsimile signature of such persons and (2) in accordance with the orders, instructions, and information transmitted to the Bank on magnetic tape, by computer transmission, in writing or by means of telecommunications by or on behalf of UnitedHealthcare. RESOLVED, that the Bank is authorized to (1) pay such check, draft or other order or to make or permit any such withdrawal, transfer or charge in accordance with such orders, instructions or information, regardless of by whom or by what means the actual or purported facsimile signature(s) thereon may have been affixed, (2) to receive same from any holder without inquiry as to the circumstances of issues or the disposition of the proceeds, 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(s) maintained by UnitedHealthcare with the Bank and, (3) at the option of the Bank, to pay any such check, draft, or other order to make or permit such withdrawal, transfer or charge even if the Account shall not be in credit to the full amount of such instrument, withdrawal, transfer or charge. RESOLVED, that the Bank is authorized and directed (1) to send UnitedHealthcare checks or drafts purporting to be drawn by the Corporation upon itself which are made payable through the Bank or information relating to such checks and (2) to accept instructions from the persons designated by the Treasurer, any Vice President or any duly authorized officer of UnitedHealthcare to charge the Account and pay the checks or drafts designated by such persons, to stop payment thereon, or to return such checks or drafts unpaid to the presenter provided any such checks or drafts have been returned to the Bank by UnitedHealthcare. RESOLVED, that all statements of account in connection with the Account shall be addressed and delivered to the Treasurer of the Corporation or designated representative, with copies thereof made available to UnitedHealthcare, and all cancelled checks, drafts, other orders and I correspondence in connection with the Account shall be addressed and delivered to UnitedHealthcare, with copies thereof made available to the Corporation. RESOLVED, that the Account shall be a non-interest bearing account, but that no amount will be charged by the Bank for ordinary and customary depository and disbursement services. RESOLVED, that the Account shall be closed only upon written direction of both (1) the Treasurer or City Manager of the Corporation and (2) the Treasurer, any Vice President, or other duly authorized officer(or the designee of any of the foregoing individuals) of UnitedHealthcare. RESOLVED, that upon written notification and instructions from the Treasurer of the Corporation or the City Manager of the corporation to Bank, Bank shall (1) stop payment on any check, draft, or other order, or (2) suspend all authorization hereunder of UnitedHealthcare pending a meeting of Corporation's City Council at the earliest practical time in compliance with the Texas Open Meetings Act. RESOLVED, that the Corporation authorizes and directs its Secretary or any Assistant Secretary to notify the Bank promptly in writing of any change in these resolutions, such written notice to be given to the Bank at it offices located at 4 ChaseMetroTech Center — 20th Floor, Brooklyn NY 11245 and that until the Bank has actually received such notice and has had a reasonable opportunity to act upon same, the Bank is authorized 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 thought these resolutions may have changed. Not by way of limitation of any other actual notice, Bank shall be deemed to have actually received notice upon signature on Bank's behalf of a U.S. Mail certified mail return receipt or delivery receipt of a bona fide commercial courier service. The undersigned further certifies that the foregoing resolutions have reit begin rescinded o O"d but are now in full force and effect, and that there is no provision in the Charter or By- laws of the Corporation limiting the power of the Board of Directors to pass the foregoing resolution and that the same are in conformity with the provisions of said Charter and By-laws. In WITNESS WHEREOF, I have hereunto set my hand as Secretary of the Corporation this day of September 2, 2008. *ign, As Secretary of the Corporation Signature of OtHe Off cer of the Corporation �� � �� City Council Meeting Agenda Item i Item Title: Date: Agenda Item No.: United Healthcare 9/2/2008 6b Requested By: Dept./Div: Dept. Approval: Winston Duke 210 WD Issue/Item Description: Approve Resolution No. 2008-07 authorizing United Healthcare funding and opening of health insurance imprest account. Background: round: The City elected to change health carriers from Great-West to United Healthcare. In order to facilitate the change the city needs to set up an Imprest Bank Account with funds in the amount of $37,292.60 for United Healthcare and place a medical insurance stop loss in place with fund availability in the amount of $49,069.00. Purchase orders were issued to United Healthcare for both amounts in lieu of advance payments due by October 1. The imprest account requires council resolution as the city will be opening an account with Chase Manhattan per United Healthcare's agreement with the bank for accounts of this type, but using the City's tax ID number. The initial request is $37,292.60 to open the account with funds to be forwarded later in the month. The funds will be used to pay claims as they are cashed with drawdown's by United Healthcare. The city will replenish the account for amounts that are drawn down each week. The $49,069.00 is the amount of a purchase order to bind the stop-loss insurance to be paid by October 1, 2008. Facts to Consider: Fiscal Impact/Funding Source(s): $37,292.60 imprest advance 302-1302-78983 $49,069.00 binder premium payment for stop loss 302-1302-78984 Attachment(s): Resolution 2008-07 Recommendation(s): . Consider Resolution 2008-07, authorizing the City to open an imprest account with Chase Manhattan for United Healthcare and approve the advance payment for the stop loss premium binder to United Healthcare. I MOTION: 7AppND: `��i' VOTE: PRESENTED ROVED DECLINED ACTION TABLED OTHER