The purpose of this Trust is to provide for the establishment of a self-insured program and/or insurance programs by the District to cover employee medical, dental, disability and/or life insurance programs, and uninsured losses, claims, defense costs and other related expenses, as the District may elect to self-insure from time to time, and to authorize the management, funding and administration of the Trust for the purpose herein, including without limitation the payment of insurance premiums.
The FUSD Self Insured Trust meets at least quarterly and are typically held from 7:00 -8:00 AM and conducted virtually. The public may attend these meetings. Please contact Kurt Steele at ksteele@fusd1.org to receive a link.
The FSIT Committee typically meets quarterly or more frequently as needed, depending on re-investment needs and timings.
The next scheduled meeting is:
View the Meeting Agendas and Minutes by clicking here: Download
NAME |
AFFILIATION |
TERM |
Chris Bavasi |
Community/Committee Member* |
2024-2026 |
Ben Stanton |
Community/Committee Member* |
2023-2025 |
VACANT |
Community/Committee Member* |
VACANT |
Frank Garcia |
FUSD/Committee Member* |
|
Kortney Zesiger |
FUSD Board/Committee Chair* |
2025 |
Carolyn Kidd |
FUSD Board/Committee (alternate)* |
2025 |
|
(* voting member) |
|
Ginger Stevens |
FUSD Finance & Business Services Director |
|
Jessica Rusconi |
FUSD Accountant |
|
Michael Penca |
FUSD Superintendent |
|
Kurt Steele |
FUSD/Committee Secretary |
|
Flagstaff Unified School District #1
FUSD SELF-INSURANCE TRUST BYLAWS INTRODUCTION
The Self-Insurance Trust of Flagstaff Unified School District #1 of Coconino County ("FUSD"), in order to more clearly set forth its powers and duties, does hereby establish these Bylaws.
Section 1 The name of this committee shall be the Flagstaff Unified School District #1 (FUSD) Self-Insurance Trust (“FSIT”).
Section 1 WHEREAS, the District may, pursuant to AR.S. § 15-382 and§ 15-387, provide self insured and/or insurance programs;
WHEREAS, the District deems it to be in the best interest of its employees to establish self-insured and/or insurance programs pursuant to AR.S. § 15-382 and§ 15-387 of the Arizona Revised Statutes and other applicable law;
WHEREAS, the District and/or employees will contribute monies to the Trust, which will constitute a trust fund to be held for the benefit of the employees in accordance with the Trust Agreement approved on April 22, 2014; and
WHEREAS, the District desires the FSIT to accept, hold, preserve, protect, invest, and make payments from the Trust, and the FSIT members are willing to accept, hold, preserve, protect, invest and make payments from such Trust pursuant to the terms of the Trust Agreement approved on April 22, 2014.
Section 2 Purpose. The purpose of this Trust is to provide for the establishment of a self-insured program and/or insurance programs by the District to cover
Employee medical, dental, vision, and life insurance programs, and to authorize the management, funding and administration of the Trust for the purpose herein, including without limitation the payment of insurance premiums. Other financing programs that are processed through this account are Health Savings Accounts (employer/employee), Flexible Spending Accounts (employer/employee), additional life/disability coverages (employee). The
FSIT accepts the Trust and declares they will receive and hold the Trust by virtue of the Trust Agreement and for the uses and purposes and with the powers and duties set forth herein and none other.
Section 3 Trust Fund. The District hereby establishes the Flagstaff Unified School District No. 1, Coconino County, Arizona Self-Insurance Trust. All appropriations from the District, and all other funds, earnings and assets of the Trust, shall be placed in the Trust Fund in a separately maintained bank account designated as a trust account, immediately upon receipt, shall be held in trust and used solely for the purposes permitted herein, shall not be commingled with other funds of the District nor used to secure any obligations of the District other than is expressly provided herein, and shall not lapse at the close of the fiscal year, except that any cash balance remaining after termination of the
self-insurance program and settlement of all outstanding claims shall be used for reduction of District taxes for the budget year. Any monies recovered by the District pursuant to litigation, recovery, salvage value of damaged property, proportionate share monies from any other existing District funds or otherwise, or for damages related to either a liability or property loss for which monies from the Trust have been paid, shall be returned to the Trust.
Section 4 Reservation of Authority. Nothing herein shall modify or restrict the legal obligations of the District to administer and operate appropriate risk management and insurance programs for the District. The District shall retain the sole and absolute right and authority to direct and authorize the establishment, management and administration of an overall insurance program for the District, and shall determine from time to time whether it is in the best interests of the District to procure insurance from any insurer authorized to do business in the State, to establish self-insured programs, to combine self-insured programs and procurement of insurance from third parties, or any combination of the foregoing for various types and dollar amounts of risks, including without limitation deductibles, reinsurance, and joint or participation insurance.
Specifically, without limitation, the District may from time to time, for any period, elect to purchase insurance for any or all of the risks otherwise covered by this Trust, and Trust funds may be used to purchase such insurance. The District shall provide stop-loss coverage and determine the amounts thereof, provided that the excess liability coverage for liability losses may include an annual aggregate limit of no more than three million dollars, and the maximum retention per occurrence shall be one-half of one percent of the District's maintenance and operations budget.
Section 1 Appropriations. The District shall appropriate all funds in amounts it determines to be necessary to pay the benefits, losses, claims, and expenses described in Article II Section 2, subject to District budgetary requirements, including that the
funds shall be budgeted within the maintenance and operation section and the budget limitation on increases as prescribed in A.RS. § 15-905. Should monies in the Trust Fund be deemed inadequate at any time to meet current expenditures, a special appropriation may be requested by the Trustees from the District for the remainder of the year or any part thereof.
Section 2 Management and Disbursement of Funds. Subject to limitations prescribed in the Arizona Revised Statutes and this Agreement, the Trustees agree to manage and disburse Trust assets as follows:
Section 3 Limitations on Expenditures- Illegal Acts. No expenditures shall be made from the Trust Fund except for authorized purposes as permitted under applicable law and this Agreement. Expenditures from the Trust Fund shall not, under any circumstances, be made for uninsured losses that arise out of, and are directly attributable to an act or omission determined by any court to be a criminal act committed by an Employee.
Section 4 Limitations on Expenditures- Claims Not Covered. Claims which are not covered by the self insured program established hereunder shall not be paid from this Trust. All questions relating to the nature, scope and amount of losses and risks covered by this Trust shall be determined by the Trustees.
Section 1 The FSIT will be comprised of the following members, which shall include the following categories of membership:
Section 2 To safeguard the integrity of the Self-Insured Trust in areas of conflict of interest and personal gains, the following will be applied:
Section 3 FSIT membership shall be 3 years with staggered terms:
Section 4 Membership Selection:
Section 1 The FUSD Governing Board may remove a member by majority vote for any of the following:
Section 2 A FSIT member may resign at any time by submitting a written resignation to the Governing Board.
No member shall receive a stipend for services on the FSIT. The FSIT shall establish and maintain a budget to underwrite the costs of participation in meetings, site visits, and any necessary travel. If sufficient funds are available and each expense is properly substantiated under the terms of the Internal Revenue Code, each member of the FSIT may be reimbursed by FUSD, in the discretion of the Governing Board, for;
A FSIT member seeking reimbursement shall be responsible to submit all claims for reimbursement with proper substantiation to the Director of Finance.
Section 1 Each FSIT general public member, the Governing Board member, and Full-Time Employee shall have one vote regarding any matter. Any member may abstain from voting on any matter. Other FUSD staff do not vote.
Section 2 Absentee ballots or proxy voting shall not be permitted.
Section 1 The FSIT shall meet at least semi-annually, or as needed, at 7 AM at the FUSD administrative offices or such other location within the District as designated by the FSIT Chair. All meetings shall be open to the public and shall conform to Arizona Open Meeting Law (A.R.S. Section 38-431 et seq,).
Section 2 Notice of all meetings shall be posted in accordance with Arizona law providing the following information: agenda, date, location and time.
Section 3 The presence of a majority of voting FSIT members shall constitute a quorum necessary to carry out the business of the FSIT. No decision of the FSIT shall be valid unless a majority of the voting FSIT members present concur therein by their votes. The meeting will be cancelled if no quorum is present within fifteen
(15) minutes after the scheduled time.
Section 4 Open meeting:
Section 1 Any member of the FSIT who has been removed for any reason, excluding resignations, shall have access to due process to appeal the decision made by the Governing Board.
Section 2 The Governing Board shall provide a written notification of the decision for removal and reason for removal, effective date, and copy of due process procedure.
Section 3 The due process procedure shall include the following:
These Bylaws may be amended only as follows:
These Bylaws shall be declared adopted by the FSIT when passed by a majority vote of the Governing Board at a duly-called meeting.
These Bylaws were approved at a duly called meeting of the Governing Board of Flagstaff Unified School District #1 this day of ________________, 2021 by a vote of in favor opposed and abstained.