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(A) There is hereby established a special trust fund to be called City of Yuma “Employee Benefit Trust,” and all monies of whatever nature and whatsoever source that are paid into said fund, together with all earnings from the investment and reinvestment thereof, are hereby declared to be a trust fund to be used solely to provide health and welfare benefits may provide for, but shall not be limited to, life, accidental death and dismemberment, basic or major medical coverage for accidents or sicknesses, dental any other benefits as may be determined hereafter by the City Council, whether through self-funded or insured programs or both. There shall be paid into the fund such monies as the City Council shall from time to time designate from the general funds of the city, together with such employee contributions as may be provided from time to time, based on premium rates adopted by the City Council.
(B) The Employee Benefit Trust shall be administered by the Trustees. The Trustees shall consist of five persons, consisting of one employee, one member of the governing body, and three other persons. Trustees are appointed by and shall serve at the pleasure of the City Council, and may resign or be removed at any time. The initial term of each Trustee shall be as follows: one member whose term shall expire January 31, 1984; one member whose term shall expire January 31, 1985; one member whose term shall expire January 31, 1986; one member whose term shall expire January 31, 1987; and one member whose term shall expire January 31, 1988. After the initial terms set forth above, Trustees shall be appointed for terms of five years, except that in the event of the death, resignation or removal of a Trustee, the vacancy is to be filled for the unexpired term. Beginning July 1, 2011, all terms will expire on December 31 of the term expiration year. A Trustee shall continue to serve after the expiration of a term until an appointment is made by the City Council. In the event of a removal, resignation, disability or death of a Trustee, the City Council shall designate and appoint a successor Trustee who, upon acceptance of their appointment in writing, shall succeed to the legal interest of their predecessor, and have the same powers and duties.
(C) The Trustees of the trust must be bonded, a stop-loss provision must be incorporated in the trust agreement, and an annual audit must be performed by an external auditor and a copy of the report kept on file in the offices of the governing body of the city, town or county for a period of not less than five years.
(Res. 2242, passed 8-5-81; Res. 2346, passed 12-21-83; Ord. O2010-66, passed 1-5-11)