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* Editor's note – Ord. No. 10299, §§ 1 and 2, adopted June 27, 2006, effective July 1, 2006, repealed chapter 18, §§ 18-1 – 18-9, which pertained to libraries and derived from Ord. No. 4015, § 1, adopted May 7, 1973, as amended.
Current ch. 18 was enacted by Ord. No. 10904, §§ 1 and 2, adopted June 28, 2011.
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Sec. 18-1. Purpose.
Sec. 18-2. Definitions.
Sec. 18-3. Self-insurance program.
Sec. 18-4. Establishment of self-insured risk trust fund.
Sec. 18-5. Manner of financing self-insured risk trust fund.
Sec. 18-6. Expenditure of trust funds.
Sec. 18-7. Board of trustees.
Sec. 18-8. Administration of the trust.
Sec. 18-9. Powers and duties of the administrator.
Sec. 18-10. Indemnification.
Sec. 18-11. Stop loss provision.
Sec. 18-12. Authority to amend trust agreement or terminate trust.
*Editor’s note – Ord. No. 10299, §§ 1 and 2, adopted June 27, 2006, effective July 1, 2006, repealed chapter 18, §§ 18-1 – 18-9, which pertained to libraries and derived from Ord. No. 4015, § 1, adopted May 7, 1973, as amended.
Ch. 18, enacted by Ord. No. 10904, §§ 1 and 2, adopted June 28, 2011, was repealed and replaced by Ord. No. 11832, §§ 1 and 2, adopted May 4, 2021.
Ch. 18, enacted by Ord. No. 10904, §§ 1 and 2, adopted June 28, 2011, was repealed and replaced by Ord. No. 11832, §§ 1 and 2, adopted May 4, 2021.
The purpose of this chapter is to codify the city's self-insurance program for workers' compensation and general public liability, and to establish the self-insured risk trust fund so that the city can reach and maintain an adequate level of reserves to support self-insurance for the management and administration of a system for direct payment of benefits, losses or claims, or any combination of insurance and direct payments in conformance with A.R.S. § 11-981. Nothing contained herein shall modify or restrict the legal obligations of the city to administer and operate appropriate insurance programs for the city as those programs shall be modified from time to time hereafter by the mayor and council.
(Ord. No. 11832, § 2, 5-4-21)
“Administrator” means the risk manager appointed by the city manager. Any administrator appointed hereunder must be licensed as required by A.R.S. § 20-281 et seq., or certified as an insurance administrator under A.R.S. § 20-485 et seq.
“Trust” means the City of Tucson, Arizona, Self-Insured Risk Trust.
“Trust agreement” means the declaration of trust entered into by and between City of Tucson, a political subdivision of the State of Arizona and the individuals executing the declaration of trust, as trustees, setting forth the powers and duties of the trustees and the administrator; a stop loss provision, and other terms and conditions.
"Trustees" or "trustee" means individuals appointed by the mayor and council in accordance with section 18-7 to oversee the funding and investment of the trust. The trustees are collectively referred to herein as the board of trustees.
(Ord. No. 11832, § 2, 5-4-21)
The city's self-insurance program includes established terms and conditions of coverage and exclusions of coverage, insurance contracts, the trust, and contracts required for the management or administration of the program. The administrator is responsible for the self-insurance program and shall serve as the city's risk management consultant. Nothing herein shall be interpreted to expand or increase the liability of the city for any claim.
(Ord. No. 11832, § 2, 5-4-21)
Effective June 28, 2011, the city established the City of Tucson Self Insured Risk Trust Fund following approval by the mayor and council. The trust fund is a funding mechanism for the areas of potential liability described in the trust agreement as approved by the mayor and council. Initially the trust shall provide a funding source for workers' compensation and general public liability. The trust shall cover such other areas as are permitted by law and may be authorized by the annual appropriation of funds by the mayor and council. The trust shall provide separate accounting for the areas of coverage but shall not segregate funds within the trust. The finance director shall segregate all funds previously and hereinafter budgeted for trust purposes and maintain the trust separately from the city general fund.
(Ord. No. 11832, § 2, 5-4-21)
The trustees, following consultation with the administrator, shall annually recommend to the mayor and council the level of funding necessary to achieve and maintain adequate trust funds. The determination of the appropriate amount of funding for the trust shall be made annually and shall be solely within the discretion of the mayor and council. The trust shall be funded by allocation of funds from general fund and non-general fund departments. General public liability funds shall be based upon the administrator's analysis of claims history and pending claims. The trust may also be funded by gifts, grants, any special taxes levied to satisfy judgments, payment of claims or other involuntary indebtedness and by monies recovered from litigation, statutory liens, recovery from insurers, subrogation and salvage value of damaged property, and interest earned on the funds held by the trust. Additionally, the trust may be funded through other available financial techniques and methods permissible under state or federal law and authorized by the trustees and the mayor and council.
(Ord. No. 11832, § 2, 5-4-21)
Funds of the trust shall be expended solely for payment of claims, administration of the trust, training for reduction in liability and other loss control and loss prevention purposes, in accordance with A.R.S. 11-981. The administrator shall have final decision making authority with regard to the expenditure of trust funds, and shall consult with or report to the trustees regarding appropriate types of expenditures.
(Ord. No. 11832, § 2, 5-4-21)
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