Sec. 18-7.1. The board of trustees shall include five (5) joint trustees, all of whom shall be at least twenty-one (21) years old, citizens of the United States of America and reside or work in the City of Tucson, Arizona. One trustee shall be the city's finance director and no other trustee shall be an officer or employee of the City of Tucson. Except for the city's finance director, the trustees shall be appointed by the mayor and council and preferably shall have experience or expertise in the field of finance, risk management, insurance, actuarial science or investment management. Except for the finance director, the trustees shall be appointed by the mayor and council, serve staggered terms of no more than four (4) years by a written appointment, which shall detail the duration of a trustee's term and be lodged with the clerk and records of the trust.
Sec. 18-7.2. No person shall qualify as trustee until he or she has been bonded. The bond requirement may be satisfied by the blanket performance bond or other coverage provided by the city.
Sec. 18-7.3. Trustees are subject to removal and substitution by the mayor and council with or without cause. Trustees also may elect to resign from their position on the board of trustees for any or no reason. Upon the expiration of a trustee's term, the mayor and council may appoint another individual to serve as trustee or the mayor and council may reappoint the exiting trustee to serve a subsequent term. Alternatively, and if necessary, the mayor and council may request that the exiting trustee agree to extend the expiring term until a replacement trustee is appointed by the mayor and council.
Sec. 18-7.4. The resignation, incompetency, death or termination of any of the trustees shall not terminate the trust or affect its continuity; however, a quorum of the trustees is required for the trustees to take action. During a vacancy, the remaining trustee or trustees may exercise the power of the trustees hereunder, subject to the quorum requirement. If necessary, the board of trustees may determine, by majority vote of the remaining trustees, that a vacancy exists by reason of absence, incompetency or any other reason. Any such determination made by the board of trustees shall be delivered to the mayor and council. Vacancies among the trustees shall be filled by the mayor and council and can be filled on an interim basis if the mayor and council determine that circumstances warrant a temporary appointment.
Sec. 18-7.5. Trustees shall not be entitled to receive compensation for their services as trustees, except trustees shall be entitled to reimbursement for any reasonable out-of-pocket costs and expenditures made by the trustees in the performance of their duties as trustees. The finance director shall not receive any additional compensation for service as a trustee.
Sec. 18-7.6. The board of trustees shall be responsible for the investment of trust fund assets. Trust investments shall be prudently managed and shall take into account the liquidity needs of the trust, as established by the administrator and the finance director. The board of trustees shall make recommendations annually to the mayor and council, through the city manager, regarding the amount of funding recommended to achieve and maintain adequate reserves in the trust. The trustees shall work together with the administrator to submit annual funding recommendations to the mayor and council, and to provide advance review and comment on the administrator's annual report to the mayor and council on the overall status of the city's self-insurance program. The trustees may make other recommendations to the mayor and council regarding the self-insurance program and/or the trust fund, as they deem necessary and appropriate.
Sec. 18-7.7. The board of trustees shall work with the administrator to take all necessary precautions to safeguard the assets of the trust.
Sec. 18-7.8. The board of trustees shall act in conformance with this chapter and the terms of the trust agreement.
Sec. 18-7.9. The board of trustees shall be exempt from the provisions of chapter 10A, title XIII of the Tucson Code.
(Ord. No. 11832, § 2, 5-4-21)