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AGENDA ITEM REVIEW FORM |
3.B.
Special City Council Meeting
- Meeting Date:
- 11/30/2022
- Department Head:
- Sonia Cornelio
- Submitted By:
- Melissa Lopez, Deputy City Clerk, City Clerk's Office
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the removal and appointment of a Trustee for the Employee Benefit Trust. (Kay Marion Macuil, City Attorney and Ralph Velez, Interim City Manager)
A. Action by City Council as to whether to remove a Trustee of the Employee Benefit Trust.
B. Action by the Mayor only, to nominate and recommend a Trustee to the Employee Benefit Trust.
C. Action by City Council on the nomination and recommendations of the Mayor.
A. Action by City Council as to whether to remove a Trustee of the Employee Benefit Trust.
B. Action by the Mayor only, to nominate and recommend a Trustee to the Employee Benefit Trust.
C. Action by City Council on the nomination and recommendations of the Mayor.
SUMMARY:
Former Mayor Gerardo Sanchez is currently the Chairman of the Employee Benefit Trust. His term expires on March 14, 2025. An amendment to the Declaration of Trust allowed for three (3) consecutive terms. This is Mr. Sanchez's third and last consecutive term.
There are three actions on this item
(1) The Council may choose to remove Mr. Sanchez as a Trustee.
(2) The procedure for appointment under the Declaration of Trust is that the Mayor nominates and recommends a replacement. Another Council Member or any other person capable of performing the fiduciary duties of a Trustee is eligible to replace the Trustee.
(3) The Council votes on the nomination. Council Members may make motions and put to the vote other candidates for the Trustee position.
Below are some of the relevant provisions of the Declaration of Trust:
Under Section 3.01 of the Declaration of Trust, Mayor Riedel nominates the trustee and the City Council shall consider and may appoint those the Mayor has recommended.
Under Section 3.02 of the Declaration of Trust, City Council may have a Council Member as a Trustee, but it is not required.
Under Section 3.03 the Trustee must accept the appointment in writing.
Under Section 4.01 the City Council may remove a Trustee by majority vote.
There are three actions on this item
(1) The Council may choose to remove Mr. Sanchez as a Trustee.
(2) The procedure for appointment under the Declaration of Trust is that the Mayor nominates and recommends a replacement. Another Council Member or any other person capable of performing the fiduciary duties of a Trustee is eligible to replace the Trustee.
(3) The Council votes on the nomination. Council Members may make motions and put to the vote other candidates for the Trustee position.
Below are some of the relevant provisions of the Declaration of Trust:
Under Section 3.01 of the Declaration of Trust, Mayor Riedel nominates the trustee and the City Council shall consider and may appoint those the Mayor has recommended.
Under Section 3.02 of the Declaration of Trust, City Council may have a Council Member as a Trustee, but it is not required.
Under Section 3.03 the Trustee must accept the appointment in writing.
Under Section 4.01 the City Council may remove a Trustee by majority vote.
RECOMMENDATION / SUGGESTED MOTION:
A. I MOVE TO REMOVE GERARDO SANCHEZ AS TRUSTEE FROM THE EMPLOYEE BENEFIT TRUST
B [Nomination and recommendation by Mayor Riedel] I nominate and recommend ________________ as Trustee to the Employee Benefit Trust.
C. I MOVE TO DESIGNATE _______________ AS TRUSTEE TO THE EMPLOYEE BENEFIT TRUST.
B [Nomination and recommendation by Mayor Riedel] I nominate and recommend ________________ as Trustee to the Employee Benefit Trust.
C. I MOVE TO DESIGNATE _______________ AS TRUSTEE TO THE EMPLOYEE BENEFIT TRUST.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- N/A
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
There is no fiscal impact associated with this item. The Trustees are volunteers.