Discussion and possible action on any and all matters regarding amending and restating sections of the Agreement and Declaration of Trust for the City of San Luis Employment Benefit Trust. (Adela Cortez, Director of Human Resources)
 

At the Council Meeting held on February 7, 2024, City Staff was directed to review current Trustees’ terms and provide recommendations for new terms.  

Section 9.01 of the Agreement and Declaration of Trust provides that the Trustees may amend the Trust by unanimous agreement of the Trustees. The Trustees did amend the Agreement and Declaration of Trust on March 21, 2019, allowing the Trustees to serve three (3) consecutive terms of five (5) years.

Human Resources conducted research of other municipalities, among which included the City of Flagstaff, Maricopa County, Pima County, City of Phoenix, and City of Chandler.  Consensus of research determined an established three-year term for their Board of Trustees terms.  Based on this research, staff is recommending:

• Duration of Subsequent Terms to be three (3) years each.
• Appointment to be no more than two (2) consecutive terms.

While reviewing the Agreement and Declaration of Trust document and Amendment a number of other areas were identified as needing revisions:

• Article 1 – Definitions.  This area is being reformatted to appear in alphabetical order and three (3) definitions were added for Appointment, Initial Term, and Subsequent Term.
• Section 3.04 – Trustees’ Term
• Section 3.05 – Executive Advisors, adds the City Attorney
• Section 4.01 – Trustee Termination, more explicit
• Section 4.05 – Successors’ Term, by taking out the word "initial" removes the confusion with the 2012 initial term.

Exhibit A outlines the 2^nd Amendment of the Agreement and Declaration of Trust for the City of San Luis Employee Benefit Trust with detailed changes.
 

I MOVE TO APPROVE RECOMMENDATION MADE BY CITY STAFF AMEND THE AGREEMENT AND DECLARATION OF TRUST FOR THE CITY OF SAN LUIS EMPLOYEE BENEFIT TRUST AS OUTLINED ON 2^ND AMENDMENT AS PRESENTED.