§ 2-204. Trustees.

(a)

The city council shall appoint five (5) trustees to administer the risk management trust fund and a risk management trust fund board of trustees. No more than one (1) trustee shall simultaneously be a member of the city council and no more than one (1) trustee shall be a city employee. The city risk manager shall be the technical advisor of the risk management trust fund. The trustees shall be responsible for recommendations to the city council regarding the administration of the risk management trust fund. The trustees shall meet at least twice a year. Annually, the trustees shall submit a report to the city council as to the status of the risk management trust fund. Such report shall include a summary of all monies collected and all payments made from the risk management trust fund since the last report and any recommendations the trustees deem necessary to meet their joint fiduciary obligations for administering the risk management trust fund. The trustees shall be bonded in an amount satisfactory to the city risk manager, but not less than the minimum amount of ten thousand dollars ($10,000.00). Costs for bonding will be paid from the risk management trust fund. The trustees shall be appointed for terms of three (3) years and a chairman shall be designated by the mayor with the approval of the city council.

(b)

The term of any trustee automatically ends:

(1)

On death of the trustee;

(2)

On submittal of a written resignation to the risk management trust fund board chair or the mayor;

(3)

On failure to attend three (3) consecutive regular meetings of the risk management trust fund board; or

(4)

On termination of city employment.

(c)

Three (3) trustees shall constitute a quorum for the exercise of the powers and duties conferred upon the risk management trust fund board.

(d)

Conflict of interest laws shall apply to each of the trustees.

(e)

Trustees shall serve on the risk management trust fund board without salary or compensation.

(f)

The trustees shall:

(1)

Provide financial oversight of the risk management trust fund and make recommendations to improve fund management and returns;

(2)

Review the risk management trust fund balance and make recommendations to ensure adequate funds exist to pay outstanding and future claims, claim costs, property damage costs and risk management expenses;

(3)

Meet at least twice per year, or more frequently as the chair of the board deems necessary or upon request of the city risk manager.

(g)

The trustees may:

(1)

Adopt rules or policies for the operation of the risk management trust fund board, which are not inconsistent with this chapter, federal laws, Arizona laws, the city charter or any city code or administrative regulations;

(2)

Appoint committees;

(3)

Recommend city staff hire independent consultants to perform assignments necessary for the administration of the risk management trust fund.

(Ord. No. 2892, § 1, 5-27-14)