Resolution

RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MESA,
ARIZONA, ADOPTING THE SECOND AMENDED RESTATEMENT OF
TRUSTS FOR CITY OF MESA PROPERTY AND PUBLIC LIABILITY TRUST
FUND AND CITY OF MESA EMPLOYEE BENEFITS TRUST FUND.
Whereas, Arizona law allows the City to establish self-insurance programs for the management
and administration of claims of property and public liability or losses and for health, wellness, and
welfare employee benefit programs.
Whereas, Arizona law requires the funding for such self-insurance programs to be deposited in a
trust.
Whereas, Section 610 of the City Charter authorizes the City to provide self-insurance programs.
Whereas, the City has established such self-insurance programs and has established trust funds for
each of its self-insurance programs.
Whereas, on October 1, 2012, pursuant to Resolution No. 10139, the City adopted the
“Restatement of Trusts for the Property and Public Liability and Employee Benefits Self-Insurance
Trust Funds.”
Whereas, on December 1, 2015, pursuant to Resolution No. 10717, the City adopted the “First
Amended Restatement of Trusts for the City of Mesa, Arizona Property and Public Liability and
Employee Benefits Self-Insurance Trust Funds.”
Whereas, the City intends the Property and Public Liability Trust Fund (the “PPL Trust”) and City
of Mesa Employee Benefits Trust Fund (the “EBT”) (collectively, the “Trusts”) to satisfy the
requirements of Arizona Revised Statutes § 11-981.
Whereas, it has been more than 10 years since the Trusts were updated and certain amendments
are needed to, among other reasons, better ensure accountability to the Self-Insurance Program
Board of Trustees (the “Board”) and the City Council; limit the City Attorney’s and Board’s
authority to increase the amount per claimant per claim or lawsuit (exclusive of attorneys’ fees and
costs) over which the City Attorney must notify and consult with Councilmembers before settling
(the “Notification and Consultation Amount”); adapt to changing circumstances including
increased claims and lawsuits; help ensure the City Attorney can continue to effectively and
efficiently defend and resolve claims and lawsuits; modify policies, and in some cases,
memorialize current practices, related to the administration of the Trusts; and make minor
amendments for purposes of clarity.
Whereas, the City Council therefore desires to amend the Trusts, to, among other things, (1) require
the City to maintain a balance of $10 million to $15 million in the PPL Trust; (2) require the City
to notify the Board if the PPL Trust balance is below $10 million at the end of a fiscal year and
recommend a plan to return the balance to $10 million to $15 million; (3) make existing practices
required, including to require the City Attorney to comply with and annually review the litigation
policies and annually report to the Board; (4) require the City Attorney to obtain approval from
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the Board to increase the Notification and Consultation Amount; (5) specify that the Board may
not approve a Notification and Consultation Amount that exceeds $200,000, without an
amendment to the PPL Trust by the City Council; and (6) update and clarify provisions related to
the EBT, namely to reference wellness benefits and the ability to utilize contracted third-party
administrators and insurers to perform duties related to the EBT, and to make the existing practice
of annually reporting to the Board a requirement.
Whereas, on March 3, 2026, City staff presented the proposed amendments to the Board and the
Board recommended adoption.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MESA:
Section 1. The City Council hereby adopts, and directs the City Manager to execute, the
Second Amended Restatement of Trusts for City of Mesa Property and Public Liability Trust Fund
and City of Mesa Employee Benefits Trust Fund (the “Second Amended Restatement of Trusts”).
Section 2. Upon execution, the Second Amended Restatement of Trusts will constitute the
entire restatement of trusts for the PPL Trust and EBT, and will supersede and replace the
“Restatement of Trusts for the Property and Public Liability and Employee Benefits Self-Insurance
Trust Funds” and “First Amended Restatement of Trusts for the City of Mesa, Arizona Property
and Public Liability and Employee Benefits Self-Insurance Trust Funds.”
Passed and adopted by the City Council of the City of Mesa on October 26, 2026.
______________________________
Mark Freeman, Mayor
Attest:
______________________________
Holly Moseley, City Clerk
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