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HomeMy WebLinkAboutCity Council Resolutions (RESOLUTION R-17-4149)-07/18/2017 RESOLUTION R-17-4149 A RESOLUTION APPROVING CITY COUNCIL ACTION UNDER CONSENT ITEMS AT THE REGULAR CITY COUNCIL MEETING OF JULY 11, 2017 WHEREAS, City Council has taken action on certain items on the agenda under Consent Items. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEYVILLE, TEXAS: Sec. 1. THAT the agenda decisions approved by City Council action under Consent Items as follows are hereby adopted: a. Approval of the minutes of the June 13, 2017 City Council Worksession b. Approval of the minutes of the regular City Council meeting of June 20, 2017 c. Approval of the minutes of the June 27, 2017 City Council Worksession d. Approval of the purchase of 1,008 Neptune water meters, ranging in size from 3/4" to 2", from HD Supply Waterworks, through an Interlocal Agreement with the City of Grapevine, in an amount not to exceed $87,000, and authorize the city manager to execute the purchase agreement e. Authorizing creation of an employee benefits trust, authorizing the trust agreement, appointing trustees, and authorizing the trust to purchase various forms of insurance for the benefit of City officers, employees, qualified retirees, and their dependents f. Approval of bid awards for medical insurance to Blue Cross Blue Shield of Texas and dental insurance to CIGNA Dental; and renewal of a contract for the employee assistance program with Alliance Work Partners, and authorize the city manager to execute the agreements AND IT IS SO RESOLVED. Resolution R-17-4149 Page 2 of 2 APPROVED BY A VOTE OF (0 AYES, Q NAYS, AND Q ABSTENTIONS ON THIS THE 11TH DAY OF JULY 2017. Mayor Richard Newton AbSen,N Mayor Pro Tern Bobby Lindamood Ate- Place 1, Tammy Nakamura Atte Place 3, Kathy Wheat Place 4, George Dodson Atte, Place 5, Nancy Coplen Place 6, Mike Taylor ---- ATTEST: I OF COLLEYVILLE J _ I _ Any elley, TRMC Richard Newton _ ; -- -City Secretary Mayor DECLARATION OF TRUST I. CREATION OF TRUST The City of Colleyville ("City"), as Settlor or creator of the trust, designates the members of the City of Colleyville Trustees and declares that the City holds in trust the funds described in Schedule A attached hereto and incorporated herein by reference,which is the property of the City, and all substitutions and additions to such funds, for the purpose of providing or offering,whether now or possibly in the future, life, disability, sick, accident, and other health benefits to the City's officers, employees, and qualified retirees and their dependents. II. PURPOSE This is a nonprofit trust created for the purpose of providing or offering, whether now or possibly in the future, City officers, employees, and qualified retirees and their dependents with life, disability, sickness, accident, and other health benefits either directly or through the purchase of insurance and to perform operations in furtherance thereof. The Trust is intended to qualify as a tax-exempt trust performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code (the "Code"). III. DURATION The Trust shall continue until terminated by operation of law or by majority vote of the Trustees. IV. TRUSTEES: COMPOSITION, OFFICERS, COMPENSATION,AND MEETINGS A. Composition. The Trustees are the City Manager, Chief Financial Officer and the Human Resources Director of the City, and each Trustee's term is contemporaneous with his or her term of employment with the City. Whenever a Trustee ceases to be an employee of the City, the person succeeding him or her in office will automatically be appointed to serve as a successor Trustee of the Trust. B. Meetings. A meeting of the Trustees may be called by the City Manager or on written request to the City Manager by one of the Trustees. Trustees shall have at least three days written notice of any meeting. For purposes of this section,electronic mail notice is written notice. V. RIGHTS,POWERS,AND DUTIES OF TRUSTEES; QUORUM AND VOTING A. Rights,Powers, and Duties. In addition to all other powers and duties conferred on them by this Trust document and imposed or authorized by law, the Trustees shall have the following powers and duties, but only to the extent permissible for a single purpose non-profit trust under Section 222.002(c)(5) of the Texas Insurance Code: 1. The Trustees shall carry out all of the duties necessary for the proper operation and administration of the Trust on behalf of the covered persons and shall have all the powers necessary and desirable for the effective administration of the affairs of the Trust. 2. The Trustees have the general power to make and enter into all contracts, leases, and agreements necessary or convenient to carry out any of the powers granted by this Trust document or by law or to effectuate the purpose of the Trust. All such contracts, leases, and agreements or any other legal documents herein authorized shall be approved bylthe Trustees by majority vote at a duly called meeting at which a quorum is present sand signed by the City Manager on behalf of the Trust. The Trustees may also designate another Trustee to sign such documents. 3. The Trustees shall use the Trust's funds to accomplish the purpose of the Trust, as described in SectionilI herein, and to operate and administer the Trust solely in the interest of the covered City officers, employees, and qualified retirees and dependents thereof and for the exclusive purpose of providing or offering benefits to such persons and defraying the reasonable expenses of administration of the Trust. To this end,the Trustees may purchase life,disability,or accident and health insurance to provide or offer coverage for participating City officers, employees, and qualified retirees and their dependents. The Trustees may also adopt a health benefits plan that covers eligible City officers, employees, and qualified retirees, and their dependents. 4. The Trustees may accept contributions to the Trust funds from any source including contributions from covered persons receiving benefits from the Trust. 5. The Trustees shall be authorized to contract with any qualified organization to perform any of the functions necessary for providing or offering life, disability, sick, accident, and other health benefits, including but not limited to excess loss insurance, stop loss insurance, claims administration, administrative services, and any other services that the Trustees shall deem expedient for the proper operation of the Trust. When required by law or desired by the Trustees, the Trustees shall seek sealed competitive bids or sealed competitive proposals with respect to contracts required to carry out the operations of the Trust and to affect the purpose of the Trust. 6. The Trustees shall arrange for the investing of the funds of the Trust so as to keep the same invested according to law and at the best interest rates obtainable for the benefit of the covered persons. The Trustees may hire money managers and shall adopt an investment policy for its own use and that of its agents in making investments. The Trustees shall use the City's selected depository for the Trust's funds and provide for the proper security of any and all investments. The Trustees shall be responsible for the designation of signatories for the Trust's depository accounts. 7. The Trustees may purchase insurance for the Trustees and any other fiduciaries appointed by the Trustees and for the Trust itself to cover liability or losses occurring by reason of the act or omission of any one or more of the Trustees or any other fiduciary appointed by them. Any insurance purchased by the Trustees must give the insurer recourse against the Trustees or other fiduciaries concerned for breach of any fiduciary obligation or fiduciary duty owed to the Trust. 8. The Trustees shall arrange for proper accounting and reporting procedures for the Trust's funds and shall also provide for an annual audit of the Trust's fmancial affairs by a certified public accountant or other duly qualified individual or company auditor. 9. The Trustees may retain legal counsel to represent the Trust and the Trustees in all legal proceedings as well as to advise the Trust and the Trustees on all matters pertaining to the operation and administration of the Trust. 10. The Trustees have the authority to terminate the Trust at any time. 11. Upon termination of the Trust, the Trustees shall provide for the payment of Trust obligations, debts, losses, and other liabilities and shall provide for the disposition of' the remaining Trust funds in accordance with Section IX herein. B. Quorum and Voting. Two of the Trustees shall constitute a quorum for the transaction of business at any meeting of the Trustees and the vote of two Trustees present shall be required for approval of any action at such meeting. The vote of the Trustees at such meeting shall constitute action of the Trustees as a group. VI. BENEFICIARIES The beneficiaries of the Trust are the City officers, employees, and qualified retirees and their dependents who are covered by a life, disability, sick, accident, or other health benefits plan purchased or adopted by the Trust(also called"covered persons"herein). Beneficiaries may make contributions to the Trust for use by the Trustees in fulfilling the purposes of the Trust. No beneficiary shall have any claim against the funds or any other property of the Trust. The rights and interests of the beneficiaries are limited to the insurance or health benefits specified in any policy purchased or plan adopted by the Trustees. VII. TRUST FUNDS The initial Trust funds consist of the funds described in Schedule A hereto as provided by the Settlor to institute this Trust, future contributions by the Settlor, beneficiary contributions, investment income, and any other money or property which shall come into the hands of the Trustees in connection with the administration of the Trust. The funds of the Trust shall not inure to the benefit of,or be distributed to,any private person, except for the payment of necessary costs and benefits described below. The Trustees may use the Trust's funds as follows: 1. to pay premiums on group health, accident and life policies or contracts; 2. to make authorized investments and paying fund management fees from the proceeds of the investment. VIII. LIABILITY OF TRUSTEES AND OFFICERS The Trustees shall use ordinary care and reasonable diligence in the exercise of their powers and the performance of their duties hereunder; and they shall not be liable for any mistake of judgment or other action made,taken or omitted by them in good faith,nor for any action taken or omitted by any agent, employee or independent contractor selected with reasonable care; nor for loss incurred through investment of the Trust funds or failure to invest. No Trustee shall be liable for any action taken or omitted by any other Trustee. No Trustee shall be required to give a bond or other security to guarantee the faithful performance of his or her duties hereunder. To the fullest extent permitted by law: (a) the City shall indemnify each Trustee who was, is, or is threatened to be made a party to any threatened,pending, or completed action, suit, or proceeding ("Proceeding"), any appeal therein, or any inquiry or investigation preliminary thereto, by reason of the fact that the Trustee is or was a Trustee; (b) the City shall pay or reimburse a Trustee for expenses incurred (i) in advance of the final disposition of a Proceeding to which such Trustee was, is or is threatened to be made a party, and (ii) in connection with such Trustee's appearance as a witness or other participation in any Proceeding. IX. AMENDMENT,REVOCATION AND TERMINATION This Declaration of Trust and the Trust created herein shall terminate when and if required by operation of law. The Trustees shall have the power to amend,modify,terminate or revoke, in whole or in part, this Declaration of Trust and the Trust created herein by majority vote at a duly called meeting at which a quorum is present. Notwithstanding the foregoing, the Trustees shall have no power to amend Section II of this Declaration of Trust. Beneficiaries of the Trust shall have no right to amend this Declaration of Trust, and their approval shall not be a condition or requirement for an authorized amendment by the Trustees. Upon termination of the Trust, the Trustees shall pay all obligations, debts, losses, and other liabilities of the Trust. Thereafter, the Trustees shall first use the remaining trust funds to pay covered claims of persons covered under the Town's health benefits plan that may be in effect at the time of termination of the Trust and then, either apply any remaining balance of the funds to provide the benefits described herein or transfer such funds to a successor whose income is excluded under Section 115(1) of the Code. Notwithstanding the foregoing, the Trustees, upon termination of the Trust and payment of all Trust obligations may, by vote of a majority of the Trustees, transfer the remaining funds or any portion thereof to the trustees of any trust or trusts established by the City for a substantially similar purpose to be applied for uses substantially similar to those set forth in Section II herein. X. GOVERNING LAW This Declaration of Trust and the Trust created herein shall be construed and governed by the laws of the State of Texas in force from time to time. XI. MISCELLANEOUS Whenever the context so admits and such treatment is necessary to interpret this Declaration of Trust in accordance with its apparent intent, the use herein of the singular shall include the plural, and vice versa, and the use of the feminine, masculine, or neuter gender shall be deemed to include the other genders. The captions or headings above the various Sections of this Declaration of Trust have been included only to facilitate the location of the subjects covered by each Section but shall not be used in construing this Declaration Trust. If any clause or provision of this Declaration of Trust proves to be or is adjudged invalid or void for any reason, such invalid or void clause,provision,or portion shall not affect the whole, but the balance of the provisions hereof shall remain operative and shall be carried into effect insofar as is legally possible. [REMAINDER OF PAGE INTENTIONALLY BLANK; SIGNATURE PAGE FOLLOWS.] IN WITNESS HEREOF,the undersigned parties have executed this Declaration of Trust, consisting of seven (7) pages and Schedule A attached hereto, on the dates of their respective acknowledgments below. By joining in the execution of this Declaration of Trust, the Trustees acknowledge receipt of the property described in Schedule A, signify acceptance of the Trust created hereunder,and covenant that the Trust will be executed with all due fidelity. This Trust is effectiv= .s . "the last date of signature below. Mayor _ Date • .416)1111±11161111,416)1111±11161111, 7 -(3-i7 Jerry Ducay Manager stee Date f 7/ t3/ 17 Shereen Gendy, Chief Financial Officer,Trustee Date ce7- Rac el Huitt,H an Resours Director,Trustee Date ACKNOWLEDGMENTS THE STATE OF TEXAS § COUNTY OF TARRANT § 111111A,L.,_;_41 This instrument was acknowledged before me on this + day 017, by Jerry Ducay,City Manager of the City of Colleyville on behalf of the C . ' +14-t:q�P46 0 JOYCEINNE WILLIAMS Jl� Notary ID#126897107 My Commission Expires I _ ���'' May 12,2021 ot. P !Clic In and For the State of Texas (SEAL) THE STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on this /, day of T54I y 2017, by Shereen Gendy, Chief Financial Officer of the City of Colleyville on behalf of the City. �,i;ilS-i IT: OVEN C , :;i;o_}r:0;i•1'1092587 � u/1.�� ,VCI F OF • ti2018 Notary Public In and For the State of Texas (SEAL) THE STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on this I N' day of J kt 2017, by Rachel Huitt,Human Resources Director of the City of Colleyville on behalf the City. � �0„,,� Amy Shelley \ v ti, Notary Public State of Texas .oris y My Comm.Exp.12/02/19 Nota ''ublic d For the State of Texas Notary ID#12476110-5 SCHEDULE A The following is a list of the assets initially transferred by the City of Colleyville, Texas, to the Trust: City of Colleyville's first month (October 2017) contributions for Employee and Dependents Medical/Pharmacy Benefits,Dental Benefits,Life Insurance Benefits,and Long-Term Disability Benefits. City of Colleyville's Employee and Dependents first month(October 2017)of Plan Year's payroll deductions or contributions for Medical/Pharmacy Benefits, Dental Benefits, Life Insurance Benefits, and Long-Term Disability Insurance Benefits.