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CC Resolution No. 2031 - DemandDepoAcctJPMorganChase-Cigna RESOLUTION NO.2031 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN.TEXAS. AUTHORIZING A DEMAND DEPOSIT ACCOUNT WITH JPMORGAN CHASE BANK;AUTHORIZING THE CITY MANAGER TO TAKE FURTHER ACTION TO SECURE THE ACCOUNT:AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. \HEREAS.the City of Baytown,a Texas home-rule municipal corporation,(the`'City•')has entered into a health benefit plan arrangement with Connecticut General Life Insurance or CIGNA Healthcare of California,Inc..(the"Administrator")wherein the Administrator on behalf of the City of Baytown agrees to administer health and accidents benefits programs for the benefit of the City:and \VHEREAS.the City Council has authorized the City to enter into the above health benefit plan arrangement and thereby authorized the City to enter the necessary agreements and take the necessary actions to execute the health benefit plan arrangement as contemplated by the Administrator and the City:and WHEREAS,to facilitate the execution of the health benefit plan arrangement with the Administrator, the City,desires to establish a demand deposit account with The JPMorgan Chase(the"Bank"):NOW THEREFORE. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS: Section l:That the Cite will open a demand deposit account with the Bank(the"Customer Account")solely for the purpose set forth and subject to the terms and conditions of the Catalyst Agreement between the Administrator and the Bank(the'-Agreement")and that the named individuals of the City or the Administrator are authorized to deposit funds into the Customer Account and further authorized to deliver standing instructions to the Bank respecting deposits of funds of the City to be made to the Customer Account and corresponding debits to such other account of the City as shall be specified by the City. Section 2:That until further order of the City Council,any of the funds of the City or of the Administrator deposited in the Customer 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 the Bank 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 the Bank in connection with returns or reversals of amounts previously credited to the account or adjustments of erroneous credits. Section 3:That the Bank 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 the Bank'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 Customer Account will be transferred from time to time to an account or accounts maintained by the Administrator with the Bank. Section 4:That the Bank shall not,unless otherwise directed by a representative of the Administrator whose name and signature has been certified to the Bank 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 Customer Account. Section 5:That(1)all statements of account in connection with the Customer Account,(2)all balance transaction information in connection with the Account,(3)all information regarding checks,and(4) all correspondence received by the Bank in connection with the Customer Account shall be transmitted or mailed by the Bank to the Administrator and the City. Section 6:That unless otherwise agreed to by the Bank,in the event that the Agreement is terminated,the Customer Account may be closed six(6)months after the effective date of such termination provided that Bank has provided Customer and Administrator with sixty(60)days advance written notice. However,any such closing or termination shall not affect the City's or the Administrator's liabilities to the Bank arising prior to.or on such closing or termination.all of which shall continue in full force and effect. Section 7:That the City shall be liable for any and all overdrafts in the Customer Account and unconditionally promises to pay to the Bank 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 Customer Account from time to time. Section 8:That the City authorizes and directs its City Clerk to promptly notify the Bank in writing of any change in these resolutions and authorizations and any such change shall not be effective until the Bank has received such written notice of the same at such address as the Bank shall specify,and has had a reasonable opportunity to act on it and that until such time,the Bank is authorized to continue to act in accordance with these resolutions/authorizations. Section 9:This resolution shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED,READ and PASSED by the affirmatZvche City Council of the City of Baytown this the 10`"day of December.2009. STEP EN NCARLOS.Mayor A$AY,.«.�..,, U I T f+CstiA YePtA Z Ci Cler APPRO O FORM: ACID RAMIREZ,SR.,ity Attorney RAKarenWileslCity CouncillResolutions12009U)ecemb:r IOTA"rt_sub acct Corp res Chase Revised(2).doc 2