HomeMy WebLinkAbout177 - 12/19/2000 - AMENDING CITY CODE TO ADD A NEW DIVISION CONCERNING THE CITYS SELF-INSURANCE PROGRAM AND FUND 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 COLLINS 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
the addition of a new Division 3 in Article III, which shall read in its entirety as follows:
DIVISION 3. SELF-INSURANCE PROGRAM AND FUND
Sec. 8-105. Creation and purpose of the program and fund.
A self-insurance program and a self-insurance fund are hereby authorized and
created for the city. However, the establishment of the program and the fund 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 or otherwise. Other governmental entities may participate in the program
provided that each such entity has entered into an intergovernmental agreement with
the city as authorized by state law Section 29-1-203, C.R.S. and, in such event, the
terms and conditions of the intergovernmental agreement shall govern the city's
obligations under the program to that other governmental entity.
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 V 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:
i. any claim arising under contract;
ii. an action under Rule 106 of the Colorado Rules of
Civil Procedure;
iii. a declaratory judgment action;
iv. an action arising under a state or federal statute; and
V. 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
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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 for liability and property loss insurance policies;
and
(7) such costs of administering the program as are deemed
reasonable and necessary by the city's Director of Purchasing
and Risk Management.
(b) "Covered expenses" shall not include the city's costs and attorneys' fees
incurred in defending its water rights.
Sec. 8-107. Funding of the program.
The program shall be funded by monies appropriated by the City Council for
expenditure from the fund, and the fund is hereby created to be used for payment of
the covered expenses as described in §8-106. Notwithstanding the foregoing, no
payment from the fund shall exceed the uninsured portion of any covered expense.
Sec. 8-108. Implementation and Administration.
(a) The city's Director of Purchasing and Risk Management 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 this
Code for the administration of claims.
(b) The Director shall authorize expenditures from the fund for covered expenses
described in §8-106 and shall maintain such accounting records pertaining to each
such transaction as may be deemed necessary by the city's Financial Officer.
Covered expenses shall be paid on an occurrence basis.
(c) The total amount of the 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, without limitation, each
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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 Colorado Department of Labor and Employment.
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:
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City Clerk
Passed and adopted on final reading this 19th day of December;A.D. 2000.
Mayor -
ATTEST:
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City Clerk
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