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Item 4C AudioHonorable Mayor and Members of City Council. Item 4C on the agenda is to Approve Resolution No. 10-045, Naming a Successor Trustee for the City of Southlake Insurance Trust. 1 Naming a Successor Trustee for the InsuranceTrust links to the City’s Strategy map relative to the focus area of Partnerships and Volunteerism. The specific corporate objective that is met by this Resolution is F1: Adhere to Financial Management Principles and Budget. 2 Texas Insurance Code Section 222.002 requires an annual tax on insurers who receive gross premiums for health, life and accident insurance. These taxes would be included in the premiums we pay to our insurers. However, under the provisions of the Texas Insurance Code, municipalities may be exempt if the insurance is provided through “a single non-profit trust established to provide coverage primarily for employees . . .” On August 21, 2007, City Council approved Resolution No.07-046, establishing the City of Southlake Insurance Trust, authorizing the Trust Agreement, and appointing Director of Finance Sharen Jackson and the previous Director of Human Resources Kevin Hugman as Trustees. OnAugust 4, 2009, City Council Approved Resolution No. 09-045, amending the Insurance Trust Agreement to comply with additional guidance from the Texas Comptroller of Public Accounts to further restrict the usage of the Insurance Trust. The restrictions prohibit the trust from activities such as acquiring real estate, investing in realty or personal property, and paying for liability insurance, professional services, judgments or litigation. The establishment of the Insurance Trust saves the City in an estimated $52,000 in premium taxes annually. 3 The previous Director of Human Resources Kevin Hugman is no longer employed by the City of Southlake and has resigned his status as a Trustee. Upon resignation of a Trustee, the Trust requires the City appoint a successor Trustee who shall have the same powers and duties as the previous Trustee. It is recommended that City Council appoint the current Director of Human Resources, Stacey Black, as a Successor Trustee. 4 Continuation of theInsuranceTrust saves the City approximately $52,000 in annual insurance premium taxes. 5 Staff’s recommendation is to Approve Resolution No. 10-045, Naming a Successor Trustee for the City of Southlake Insurance Trust. 6 If you have any questions regarding this request please feel free to contact me at 817-748-8063. Thank you. 7