HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/20/2004 - FIRST READING OF ORDINANCE NO. 013, 2004 AMENDINGAGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL
ITEM NUMBER: 21
DATE: January 20, 2004
STAFF: Jim O’Neill
Steve Roy
SUBJECT
First Reading Ordinance No. 013, 2004, Amending Section 8-106 of the City Code Concerning
the Payment of Covered Expenses.
RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT
The self-insurance fund is audited annually. The 2002 audit shows the fund has adequate
funding. This change is not expected to adversely affect the fund.
BACKGROUND
The City Attorney and Risk Management staffs have been reviewing the existing self-insurance
program. Expenses which relate to loss prevention activities of the City are not specifically
listed in the Code. The proposed Code amendment clarifies that the payment of expenses
relating to loss prevention activities are allowed.
ORDINANCE NO. 013, 2004
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 8-106 OF THE CODE OF THE CITY OF FORT COLLINS
CONCERNING THE PAYMENT OF COVERED EXPENSES
WHEREAS, Section 8-106 of the City Code allows for the payment by the self-insurance
fund of certain covered expenses; and
WHEREAS, the City Attorney and Risk Management staff recommend amending this
section of the Code to allow for the payment of certain expenses relating to broker fees, taxes and
various loss prevention costs.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Section 8-106 is hereby amended so as to read in its entirety as follows:
Sec. 8-106. Covered expenses.
(a) Except to the extent that the city has agreed otherwise in an
intergovernmental agreement with any other participating entity concerning the
participating entity's legal liability to third-party claimants, as authorized in § 8-105,
the fund shall only be used to pay the city's uninsured portion of the following
"covered expenses":
(1) The city's indemnity and defense obligations to its employees under Division
6, Article VI of Chapter 2 of this Code.
(2) The city's costs and attorneys' fees in defending the city and/or any of its
employees against:
a. Any claim arising under contract;
b. An action under Rule 106 of the Colorado Rules of Civil Procedure;
c. A declaratory judgment action;
d. An action arising under a state or federal statute; and
e. An inverse condemnation action.
(3) Judgments entered against and settlements agreed to by the city in civil
actions for damages arising under tort, state or federal statute, or Rule
106(a)(2) of the Colorado Rules of Civil Procedure;
(4) The city's costs and expenses incurred for the repair or replacement of city
property, real or personal, which costs are sustained by reason of the theft of
or the damage to said property, excluding normal wear and tear, provided
that such theft or damage is customarily covered by a commercial property
insurance policy;
(5) The city's defense costs, attorneys' fees, medical expenses, disability benefits,
indemnity benefits and other costs associated with worker's compensation
claims filed against the city;
(6) Insurance premiums, broker fees, and taxes for liability and, property loss,
and workers’ compensation insurance policies.
(7) Such costs of administering the program as are deemed reasonable and
necessary by the city's Director of Purchasing and Risk Management.
(8) Loss prevention costs for safety training, incentive programs, personal
protective equipment for employees, industrial hygiene studies, and other
expenses that are deemed appropriate by the city’s Director of Purchasing
and Risk Management.
Introduced, considered favorably on first reading, and ordered published this 20th day of
January, A.D. 2004, and to be presented for final passage on the 3rd day of February, A.D. 2004.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading this 3rd day of February, A.D. 2004.
Mayor
ATTEST:
City Clerk