HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/21/2000 - ITEMS RELATING TO THE CITY'S SELF-INSURANCE PROGRA AGENDA ITEM SUMMARY ITEM NUMBER: 23
DATE: November 21, 2000
FORT COLLINS CITY COUNCIL Jim ONeill
STAFF: John Duval
SUBJECT:
Items Relating to the City's Self-Insurance Program and its Legal Obligation to Defend and
Indemnify its Public Employees in Certain Civil and Criminal Matters.
RECOMMENDATION:
Staff recommends adoption of the Ordinances on First Reading.
FINANCIAL IMPACT:
The Self-Insurance fund is currently adequately funded based on the 2000 actuarial report.
Adoption of these Ordinances should not adversely affect the solvency of this fund.
EXECUTIVE SUMMARY:
A. First Reading of Ordinance No. 176, 2000, Adding a New Division 6 to Article V of
Chapter 2 of the Code of the City of Fort Collins Concerning the Legal Defense and
Indemnification of the City's Public Employees with Respect to Civil Claims and
Payment of Their Attorneys' Fees Related to Criminal Charges.
B. First Reading of Ordinance No. 177, 2000, Adding a New Division 3 to Article III of
Chapter 8 of the Code of the City of Fort Collins Concerning the City's Self-Insurance
Program and Fund.
Staff has been reviewing the City's self-insurance program as well as its obligation to defend and
indemnify its public employees (which employees include Councilmembers, City board and
commission members, and City volunteers) in civil actions and in certain circumstances to pay
its public employees' attorneys' fees in criminal matters. The proposed Ordinances make
amendments to the City's self-insurance program as well as amendments to City Council's
previous Resolutions addressing the City's legal obligation to defend and indemnify its public
employees in certain civil actions and to pay their attorneys' fees in certain criminal matters.
DATE: November 21, 2000 2 ITEM NUMBER: 23
BACKGROUND:
City's Obligation to Defend and Indemnify Its Public Employees
In 1987, the City Council adopted Resolution 87-79 to provide for the legal defense and
indemnification of the City's employees against civil claims. Resolution 87-79 generally
requires the City to defend and indemnify its employees against civil claims and also provides
that the City will, under certain circumstances, reimburse its employees for the attorneys' fees
they have incurred in defense of a charge for criminal misconduct. Then, in 1994, the Council
adopted Resolution 94-101 which amended those provisions of Resolution of 87-79 related to
reimbursement of the City's employees for attorneys' fees incurred in defense of a charge for
criminal misconduct.
Resolution 87-79 was originally adopted by the Council primarily for the purpose of affirming
the City's obligation to its employees to defend and indemnify them against certain civil claims,
as the City is required to do under the Colorado Governmental Immunity Act ("Act"). A recent
review of Resolution 87-79 and the Act reveals that the prerequisites that must be satisfied by a
public employee of the City under the Act before the City is obligated to defend and indemnify
the employee against certain civil claims, are inconsistent in some respects with the prerequisites
that are required to be satisfied under Resolution 87-79. Therefore, in order to resolve any
conflict that may exist between these prerequisites under Resolution 87-79 and the Act,
Ordinance No. 176, 2000, repeals Resolutions 87-79 and 94-101 and substitutes new provisions
that eliminate the inconsistencies between Resolution 87-79 and the Act.
Ordinance No. 176, 2000, also revises the provisions of Resolution 87-79 to allow public
employees of other governmental entities to participate in the City's self-insurance program
provided that such entities have entered into an intergovernmental agreement with the City
setting forth the terms and conditions pursuant to which the City would defend and indemnify
the other governmental entities and employees. The likely governmental entities that might
participate in the City's self-insurance program would include the Poudre Fire Authority.
City's Self-Insurance Program
In 1998, the City Council adopted another Resolution (Resolution 88-1) establishing the City's
self-insurance program and the City's self-insurance fund (the "Fund") to provide for the legal
defense, settlement and payment of civil claims against the City and/or its employees and for the
replacement or repair of damaged or stolen City property. Subsequently, the Council revised
Resolution 88-1 by adopting Resolution 88-183 to expand the self-insurance program to also
provide for the legal defense, settlement and payment of worker's compensation claims filed
against the City by its employees.
Under its self-insurance program, the City can use the Fund to satisfy the City's legal obligations
to defend and indemnify its employees from and against civil claims as required by the Act, and
as required by Ordinance No. 177, 2000, now before the Council for its consideration, in which
the Council reaffirms its defense and indemnity obligations under the Act for its employees that
were previously made in Council Resolutions 87-79 and 94-101.
A recent review of Resolutions 88-1 and 88-183 reveal that these Resolutions need to be revised
to substitute the references in them to Resolution 87-79 with references to the proposed
DATE: November 21, 2000 3 ITEM NUMBER: 23
Ordinance, and to also clarify that the Fund can be used to pay all of the "covered expenses" as
they are described in Ordinance No. 177, 2000, and that are not otherwise covered by other
insurance. In addition, it is necessary to amend Resolution 88-1 in order to allow other
governmental entities to be covered, such as the Poudre Fire Authority, to participate in the
i
City's self-insurance program provided they have entered into an intergovernmental agreement
with the City setting forth the terms and conditions of such participation.
Adoption of Ordinance No. 177, 2000, will repeal and supersede Resolutions 88-1 and 88-183,
and make the necessary amendments described above.
I
I
• ORDINANCE NO. 176, 2000
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADDING A NEW DIVISION 6 TO ARTICLE V OF CHAPTER 2 OF THE CODE
OF THE CITY OF FORT COLLINS CONCERNING THE LEGAL DEFENSE
AND INDEMNIFICATION OF THE CITY'S PUBLIC EMPLOYEES
WITH RESPECT TO CIVIL CLAIMS AND PAYMENT OF THEIR
ATTORNEYS' FEES RELATED TO CRIMINAL CHARGES
WHEREAS,on June 2, 1987,the Council of the City of Fort Collins(the"Council")adopted
Resolution 87-79 to provide for the legal defense and indemnification of the City's public employees
against civil claims; and
WHEREAS, Resolution 87-79 generally requires the City to defend and indemnify its
employees against civil claims and also provides that the City will, under certain circumstances,
reimburse its employees for the attomeys'fees they have incurred in defense of a charge for criminal
misconduct; and
WHEREAS,on June 21, 1994,the Council adopted Resolution 94-101 which amended those
provisions of Resolution 87-79 related to reimbursement of the City's employees for attorneys'fees
incurred in defense of a charge for criminal misconduct; and
WHEREAS, Resolution 87-79 was originally adopted by the Council primarily for the
purpose of affirming the City's obligations to its employees to defend and indemnify them against
certain civil claims as the City is required to do under the Colorado Governmental Immunity Act(the
"Act"); and
WHEREAS, a recent review of Resolution 87-79 and the Act reveals that the prerequisites
that must be satisfied by a public employee of the City under the Act before the City is obligated to
defend and indemnify him or her against certain civil claims,are inconsistent in some respects with
the prerequisites that are required to be satisfied under Resolution 87-79; and
WHEREAS,in order to resolve any conflict that may exist between these prerequisites under
Resolution 87-79 and the Act, the Council has determined that it is in the best interest of the City
and its public employees that these inconsistencies be eliminated by the adoption of this Ordinance;
and
WHEREAS, it is also necessary to revise Resolution 87-79 in order to allow the public
employees of other governmental entities to participate in the City's self-insurance program
established in Division 3, Article III of Chapter 8 of the City's Code, provided such entities have
entered into an intergovernmental agreement with the City setting forth the terms and conditions
pursuant to which the City would defend and indemnify the other governmental entity's employees;
and
WHEREAS, in so resolving such inconsistencies and in order to make such revisions to
Resolution 87-79, it is the Council's intention by the adoption of this Ordinance to repeal and
supersede in all respects Resolutions 87-79 and 94-101.
NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That this Ordinance hereby repeals and supersedes in all respects the
provisions contained in City Council's Resolutions 87-79 and 94-101 of the Council of the City of
Fort Collins.
Section 2. That Article V of Chapter 2 of the Code of the City of Fort Collins is hereby
amended by the addition of a new Division 6, which Division shall read in its entirety as follows:
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Introduced, considered favorably on first reading, and ordered published this 21st day of
November, A.D. 2000, and to be presented for final passage on the 19th day of December, A.D.
2000.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 19th day of December, A.D. 2000.
. Mayor
ATTEST:
City Clerk
. 5
RESOLUTION 94-101
. OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING RESOLUTION 87-79 CONCERNING THE INDEMNIFICATION
OF CITY OFFICIALS AND EMPLOYEES AGAINST CERTAIN DAMAGES
WHEREAS, on June 2, 1987, the Council of the City of Fort Collins adopted
Resolution 87-79 concerning the indemnification of City officials and employees
against certain damages (a copy of Resolution 87-79 is attached hereto as Exhibit
"A") ; and
WHEREAS, Resolution 87-79 provides, in addition to requiring the City to
defend and indemnify City officials and employees against certain civil claims,
that the City will also, under certain conditions, reimburse City officials and
employees for the attorneys' fees they have incurred in defense of any claim of
criminal misconduct; and
WHEREAS, experience has shown that with respect to reimbursement for these
types of attorneys' fees that Resolution 87-79 needs to be amended to provide
that such payment shall only be for "reasonable" attorneys' fees, meaning those
attorneys' fees of the City official or employee that were reasonably incurred
by the official or employee and that were reasonable in amount; and
WHEREAS, one of the conditions precedent to the City paying a City
official 's or employee's attorneys' fees incurred in defense of a claim of
criminal misconduct requires that the City Manager determine that the official
or employee has not acted in a willful and wanton fashion; and
WHEREAS, Resolution 87-79 fails to provide an alternative City official to
make this determination when it is the City Manager who is making the request for
reimbursement of attorneys' fees; and
WHEREAS, it is therefore necessary for Resolution 87-79 to be amended to
provide that if it is the City Manager requesting reimbursement for his/her
attorneys' fees incurred in defense of any claim for criminal misconduct, that
the determination of the whether the City Manager acted in a willful and wanton
manner shall be made by special legal counsel appointed for the City rather than
by the City Manager.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS
that paragraph 3 of Resolution 87-79 is hereby amended to hereinafter read as
follows:
3. That the City shall also pay the reasonable attorneys'
fees incurred by an employee in the defense of any claim of criminal
misconduct under the following circumstances:
(a) The claim is formally filed with an agency of
the federal , state or local government;
•
(b) The claim arises from an alleged act or
omission of the employee occurring during the
performance of his or her duties and within the scope of
his or her employment;
(c) The claim is not brought against the employee
by or at the instance of the City;
(d) The investigation and/or prosecution of the
claim results in dismissal or acquittal ; and
(e) The City Manager determines that the employee
has not acted in a willful and wanton fashion as
described in Paragraph 1(d) above. If, however, it is
the City Manager's attorneys' fees that are being
considered for payment, special legal counsel for the
City shall make the determination of whether the City
Manager acted in a willful and wanton fashion as
described in Paragraph 1(d) above.
At the direction of the City Manager, or at the direction of
special legal counsel if it is the City Manager's attorneys' fees
that are being paid, such fees may be paid by the City as incurred
or may be reimbursed by the City upon disposition of the claim. In
the event that such fees are advanced by the City and the
investigation and/or prosecution of the claim results in a
disposition other than dismissal or acquittal , the employee shall
reimburse the City for the full amount of said fees within ninety
(90) days of the date of disposition of the claim.
Passed and adopted at a regular meeting of t ncil of the ty of Fort
Collins held this 21st day of June, A.D. 1994
yor
ATTEST:
City Clerk
2
RESOLUTION 87-79
• OF THE COUNCIL OF THE CITY OF FORT COLLINS
INDEMNIFYING CITY OFFICIALS AND EMPLOYEES
AGAINST CERTAIN DAMAGES
WHEREAS, City officials and employees have historically been insured
against the risk of damages and losses arising from their acts and
omissions when acting in their official capacity and within the scope of
their employment within the City; and
WHEREAS, escalating costs of insurance premiums have severely
restricted the insurance coverage limits for such liability insurance; and
WHEREAS, it is anticipated that claims brought against the City and/or
its officials and employees may exceed said insurance limits; and
WHEREAS, it is in the best interests of the City that individual
officials and employees be indemnified by the City for judgments, defense
costs and monetary losses arising from their employment activities with the
City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS AS FOLLOWS:
1. That the City shall , and does hereby, assume liability to the
extent authorized by law, for payment of all defense costs, judgments and
. settlements of civil claims against any of its present or former public
employees, as defined in C.R.S. 24-10-103(4) , whether or not the City
itself is separately liable to the claimant, when the following
circumstances apply:
(a) The claim is brought in state or federal court;
(b) Sovereign or governmental immunity does not bar the
action against the employee;
(c) The claim against the employee arises from injuries or
damages allegedly sustained by reason of the act or omission of
such employee occurring during the performance of his or her
duties and within the scope of his or her employment;
(d) The act or omission of the employee was not, in the
judgment of the City, considered to be "willful and wanton," that
is, conduct purposefully committed which the employee must have
realized as dangerous, done heedlessly and recklessly, without
regard to consequences or the rights and safety of others,
particularly the claimant; and
(e) The employee does not compromise or settle the claim
without the consent of the City.
•
2. That attorney's fees to be paid by the City in civil action shall
include fees for legal counsel retained by the City or its insurance
carrier, as well as fees for separate legal counsel to represent the
interests of the employee when a conflict of interest is determined to
exist between the City and the employee, in the judgment of legal counsel
for the City; provided, however, that the employee may be required to
reimburse the City for any such additional fees if the employee is
determined by the City Manager, after trial or resolution of the dispute to
have acted in a willful and wanton fashion, as described in Paragraph 1(d)
above.
3. That the City shall also pay attorney's fees incurred by an
employee in the defense of any claim of criminal misconduct under the
following circumstances:
(a) The claim is formally filed with an agency of the
federal , state or local government;
(b) The claim arises from an alleged act or omission of the
employee occurring during the performance of his or her duties
and within the scope of his or her employment; and
(c) The claim is not brought against the employee by or at
the instance of the City; and
(d) The investigation and/or prosecution of the claim
results in dismissal or acquittal ; and
(e) The City Manager determines that the employee has not
acted in a willful and wanton fashion as described in Paragraph 1
(d) above.
At the direction of the City Manager, such fees may be paid by the
City as incurred or may be reimbursed by the City upon disposition of the
claim. In the event that such fees are advanced by the City and the
investigation and/or prosecution of the claim results in a disposition
other than dismissal or acquittal , the employee shall reimburse the City
for the full amount of said fees within ninety (90) days of the date of
disposition of the claim.
4. That the City's assumption of liability herein shall not be
construed so as to expand in any way the City's liability to third party
claimants, whether under the provisions of the Colorado Governmental
Immunity Act, C.R.S. 24-10-101, et. seq. or otherwise.
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins held this 2nd day of June, A.D. 1987.
M
ATTEST:
City Clerk
ORDINANCE NO. 177, 2000
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADDING A NEW DIVISION 3 TO ARTICLE III OF CHAPTER 8 OF THE
CODE OF THE CITY OF FORT COLLIS CONCERNING THE
CITY'S SELF-INSURANCE PROGRAM AND FUND
WHEREAS, on January 5, 1988, the Council of the City of Fort Collins (the "Council")
adopted Resolution 88-1 establishing a self-insurance program("the Program")and a self-insurance
fund (the "Fund") to provide for the legal defense, settlement and payment of civil claims against
the City and/or its public employees and for the replacement or repair of damaged or stolen City
property; and
WHEREAS, on November 15, 1988, the Council adopted Resolution 88-183 to revise
Resolution 88-1 to expand the Program to also provide for the legal defense,settlement and payment
of workers' compensation claims filed against the City by its employees; and
WHEREAS,by establishing the Program,the City can use the Fund to satisfy the City's legal
obligations to defend and indemnify its employees from and against certain civil claims as required
by the Colorado Governmental Act(the "Act")and as required by Division 6,Article V of Chapter
2 of the City Code in which the Council reaffirmed its defense and indemnity obligations under the
Act to its employees that it previously made in Council's Resolutions 87-79 and 94-101; and
WHEREAS, a recent review of Resolutions 88-1 and 88-183 reveals that the provisions of
these Resolutions need to be revised to clarify that the Fund can be used to pay all of the "covered
expenses," as hereinafter described, that are not otherwise covered by insurance; and
WHEREAS,it is also necessary to revise the provisions of Resolution 88-1 in order to allow
other governmental entities to participate in the Program provided they have entered into an
intergovernmental agreement with the City setting forth the terms and conditions of such
participation in the Program;
WHEREAS,in order to so revise the provisions of Resolutions 88-1 and 88-183,the Council
has determined that it is in the best interest of the City and its public employees that this Ordinance
be adopted to make such revisions; and
WHEREAS, in making these revisions, it is the Council's intention by the adoption of this
Ordinance to repeal and supersede in all respects Resolutions 88-1 and 88-183.
NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That this Ordinance hereby repeals and supersedes in all respects the
provisions contained in Council's Resolutions 88-1 and 88-183 to the Council of the City of Fort
Collins.
Section 2. That Chapter 8 of the Code of the City of Fort Collins is hereby amended by
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Introduced, considered favorably on first reading, and ordered published this 21st day of
November, A.D. 2000, and to be presented for final passage on the 19th day of December, A.D.
2000.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 19th day of December, A.D. 2000.
Mayor
ATTEST:
City Clerk
4
RESOLUTION 88-1
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ESTABLISHING A SELF-INSURANCE PROGRAM
AND A SELF-INSURANCE FUND
WHEREAS, by Resolution 87-79, the Council of the City of Fort Collins
has assumed legal liability, to the extent authorized by law, for payment
of certain defense costs, judgments and settlements of claims which are the
subject of pending civil actions filed against its present or former public
employees; and
WHEREAS, the Council desires to establish a program of self-insurance
to also provide for (1) the settlement and payment of civil claims against
the City and/or its employees which are not the subject of pending
litigation, and (2) the replacement or repair of damaged or stolen City
property.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. Creation and Purpose of Self-Insurance Program.
a. There is hereby authorized and created a self-insurance
program (the "Program") for the City of Fort Collins.
b. The purpose of the Program is to provide a uniform and
centralized self-insurance system that will provide coverage
and payment, within the monetary limits established in
Section 2 below, for the following "covered expenses":
(1) Costs, fees, judgments and claims paid in connection
with those certain civil actions filed against
employees of the City in state or federal court, which
actions are more particularly described in Resolution
87-79, dated June 2, 1987.
(2) Costs, damages and/or expenses incurred in the payment
of other civil claims filed against the City and/or its
employees [as defined in Section 24-10-103(4) , C.R.S.],
whether or not such claims are the subject of formal
court proceedings; provided, however, that such claims
are, in the judgment of the Director of Purchasing and
Risk Management (the "Director") , meritorious claims
for which the City may be legally liable.
(3) Costs and expenses incurred by the City for the repair
or replacement of City property, real or personal ,
which costs are sustained by reason of the theft of or
damage to said property, excluding normal wear and
tear.
•
J
.. 1
(4) Insurance premiums.
(5) Such costs of administering the Program as are deemed
reasonable and necessary by the Director.
c. For the purposes of this resolution and Resolution 87-79,
any member of a board or commission appointed by the City
and subject to removal by the City shall be considered an
"authorized volunteer" and "public employee" within the
meaning of Section 24-10-103(4) C.R.S. , whether or not such
board or commission is itself under the control of the City.
d. The establishment of the Program shall not be construed so
as to expand in any way the City's legal liability to third
party claimants, whether under the provisions of the
Colorado Governmental Immunity Act, Section 24-10-101, et
seq. , C.R.S. , or otherwise.
Section 2. Funding of the Program. The Program shall be funded by
monies appropriated for expenditure from a Self-Insurance Fund (the
"Fund") , which is hereby created.
a. Expenditures from the Fund for covered expenses shall not
exceed: (1) One Hundred Fifty Thousand Dollars ($150,000.)
to any one person for claims arising out of a single
incident or occurrence; or (2) Four Hundred Thousand Dollars
($400,000.) in total payment to all persons for claims
arising out of a single incident or occurrence.
b. Notwithstanding the foregoing, funds authorized for
expenditure by the Director shall in no event exceed the
uninsured portion of any covered expense.
C. The limits contained herein are intended only to limit
amounts to be expended from the Fund and are not intended to
preclude supplemental appropriations, if necessary, to fully
satisfy the City's assumption of liability on behalf .of
employees as described in Resolution 87-79, referred to
above.
Section 3. Implementation and Administration.
a. The Director shall be responsible for implementation and
administration of the Program, including the settlement of
claims. The Director is authorized to promulgate rules for
the proper daily management, operation and maintenance of
the program, and is further authorized to enter into a
professional services agreement pursuant to relevant
provisions of City Code for the administration of claims.
b. The Director shall authorize expenditures for the purposes
described in Section 1 above and shall maintain such
accounting records pertaining to each such transaction as
may be deemed necessary by the Financial Officer. Covered
expenses shall be paid on an occurrence basis.
. C. The costs of covered expenses paid out of the Fund shall be
allocated among the various departments of the City, and the
departments charged therefor, according to the Director's
assessment of each department's liability exposure. Factors
to be considered by the Director shall include each
department's payroll , revenue, value of property utilized
and previous loss history.
Section 4. Enforceability. The provisions of this Resolution shall
constitute a separate agreement between the City and each covered employee
of the City, as defined in Section 1(b)(2) above, so that each such
employee shall be entitled to enforce said provisions to the extent
permitted by law.
"Passed and adopted at a regular meeting of the Council of the City of
Fort Collins held this 5th day of January, A.D. 1988.
Ma
ATTEST:
City Clerk
•
•
. RESOLUTION 88- 183
OF THE COUNCIL OF THE CITY OF FORT COLLINS
REVISING THE SELF-INSURANCE PROGRAM
WHEREAS, by Resolution 87-79, the Council of the City of Fort Collins
has assumed legal liability, to the extent authorized by law, for payment
of certain defense costs, judgments and settlements of claims which are the
subject of pending civil actions filed against its present or former public
employees; and
WHEREAS, on January 5, 1988, Council adopted Resolution 88-1
establishing a self-insurance program (the "Program") and a self-insurance
fund to provide for (1) the settlement and payment of civil claims against
the City and/or its employees which are not the subject of pending
litigation, and (2) the replacement or repair of damaged or stolen City
property; and
WHEREAS, the Council desires to revise the self-insurance program to
provide for the settlement and payment of workers' compensation claims of
the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Resolution 88-1 be, and the same hereby is, revised to read as
follows:
. Section 1. Creation and Purpose of Self-Insurance Program.
a. There is hereby authorized and created a self-insurance program
(the "Program") for the City of Fort Collins.
b. The purpose of the Program is to provide a uniform and centralized
self-insurance system that will provide coverage and payment,
within the monetary limits established in Section 2 below, for the
following "covered expenses":
(1) Costs, fees, judgments and claims paid in connection with
those certain civil actions filed against employees of the
City in state or federal court, which actions are more
particularly described in Resolution 87-79, dated June 2,
1987.
(2) Costs, damages and/or expenses incurred in the payment of
other civil claims filed against the City and/or its employees
[as defined in Section 24-10-103(4) , C.R.S.], whether or not
such claims are the subject of formal court proceedings;
provided, however, that such claims are, in the judgment of
the Director of Purchasing and Risk Management (the
"Director") , meritorious claim for which the City may be
legally liable.
(3) Costs and expenses incurred by the City for the repair or
replacement of City property, real or personal , which costs
are sustained by reason of the theft of or damage to said
property, excluding normal wear and tear.
(4) Indemnity, medical and other costs associated with workers'
compensation claims.
(5) Insurance premiums.
(6) Such costs of administering the Program as are deemed
reasonable and necessary by the Director.
c. For the purposes of this Resolution and Resolution 87-79, any
member of a board or commission appointed by the City and subject
to removal by the City shall be considered an "authorized
volunteer" and "public employee" within the meaning of Section
24-10-103(4) C.R.S. , whether or not such board or commission is
itself under the control of the City.
d. The establishment of the Program shall not be construed so as to
expand in any way the City's legal liability to third party
claimants , whether under the provisions of the Colorado
Governmental Immunity Act, Section 24-10-101, et seq. , C.R.S. , or
otherwise.
Section 2. Funding of the Program. The Program shall be funded by
monies appropriated for expenditure from a Self-Insurance Fund (the
"Fund") , which is hereby created.
a. Expenditures from the Fund for covered expenses of liability
claims shall not exceed: (1) One Hundred Fifty Thousand Dollars
(b150,000) to any one person for claims arising out of a single
incident or occurrence; or (2) Four Hundred Thousand Dollars
($400,000) in total payment to all persons for claims arising out
of a single incident or occurrence.
b. Expenditures from the Fund for covered expenses of workers'
compensation claims shall not exceed Three Hundred Thousand
Dollars ($300,000) in total payment to all persons for claims
arising out of a single incident or occurrence.
c. Notwithstanding the foregoing, funds authorized for expenditure by
the Director shall in no event exceed the uninsured portion of any
covered expense.
d. The limits contained herein are intended only to limit amounts to
be expended from the Fund and are not intended to preclude
supplemental appropriations, if necessary, to fully satisfy the
City's assumption of liability on behalf of employees as described
in Resolution 87-79, referred to above.
Section 3. Implementation and Administration.
a. The Director shall be responsible for implementation and
administration of the Program, including the settlement of claims.
• The Director is authorized to promulgate rules for the proper
daily management, operation and maintenance of the program, and is
further authorized to enter into a professional services agreement
pursuant to relevant provisions of City Code for the
administration of claims.
b. The Director shall authorize expenditures for the purposes
described in Section 1 above and shall maintain such accounting
records pertaining to each such transaction as may be deemed
necessary by the Financial Officer. Covered expenses shall be
paid on an occurrence basis.
c. The costs of covered expenses paid out of the Fund shall be
allocated among the various departments of the City, and the
departments charged therefor, according to the Director's
assessment of each department's exposure. Factors to be
considered by the Director shall include each department's
payroll , revenue, value of property utilized, previous loss
history, expected losses, and reserves for workers' compensation
claims that may be required by the Department of Labor and
Employment.
Section 4. Enforceability. The provisions of this Resolution shall
constitute a separate agreement between the City and each covered employee
of the City, as defined in Section 1(b)(2) above, so that each such
employee shall be entitled to enforce said provisions to the extent
• permitted by law.
Passed and adopted at a regular meeting of the Council of the City of
Fort Collins held this 15th day of November, A.D. 1988.
Mayor
TTEST:
City C erk