HomeMy WebLinkAbout043 - 04/20/2021 - AMENDING DIVISION 3 IN ARTICLE III OF CHAPTER 8 OF CITY CODE CONCERNING THE CITY'S SELF-INSURANCE PR ORDINANCE NO. 043, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING DIVISION 3 IN ARTICLE III OF CHAPTER 8 OF THE
CODE OF THE CITY OF FORT COLLINS
CONCERNING THE CITY'S SELF-INSURANCE PROGRAM AND FUND
WHEREAS, in January 1988, the City Council adopted Resolution 88-1 establishing the
City's self-insurance program (the "Program") and fund (the "Fund") to provide for the legal
defense, settlement and payment of civil claims brought against the City and its "public
employees," as this term in defined in the Colorado Governmental Immunity Act (the "CGIA"),
and for the replacement or repair of damaged or stolen City property; and
WHEREAS, in November 1988, the City Council adopted Resolution 88-183 to expand
the Program and Fund to include the legal defense, settlement and payment of workers'
compensation claims filed against the City by its employees; and
WHEREAS, in December of 2000, the City Council adopted Ordinance No. 177, 2000, to
codify the Program and Fund by adding Division 3 to Article III of City Code Chapter 8 ("Division
3"); and
WHEREAS, the Program and Fund were established, in part, to satisfy the City's legal
obligations under the CGIA to defend and indemnify it employees, which includes the City's
councilmembers, appointed board and commission members and authorized volunteers, from and
against certain civil claims, which obligations are currently codified in Division 6 of Article VII
of City Code Chapter 2; and
WHEREAS, a recent review of Division 3 by City staff reveals the need to amend it to
clarify that the Program's "covered expenses" eligible to be paid from the Fund can also be paid
from other established City funds if the monies for such expenditures have either been previously
appropriated for such use or transferred to the Program's Fund in compliance with the applicable
provisions of Article V, Part 1 of the Charter; and
WHEREAS,the review also revealed the need to update the Program's"covered expenses"
that can be paid from the Fund to be consistent with all the potential litigation that can be brought
against the City and its employees, and to generally update and provide for consistency in the
wording of Division 3; and
WHEREAS, the City Council determines and finds it is in the best interest of the City and
its employees,and necessary for the public health,safety and welfare,for Division 3 to be amended
as hereafter provided.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Section 8-105 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 8-105. -Establishment and purpose of self-insurance program and fund.
A self-insurance program and fund are hereby authorized and established for the City. However,
the establishment of the program and fund shall not be construed 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 self-insurance
program provided that each such entity has entered into an intergovernmental agreement with the
City as authorized by C.R.S. Section 29-1-203 and Section 16, Article II of the Charter 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 and its public employees.
Section 3. That Section 8-106 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 8-106. -Covered expenses.
Except to the extent the City has agreed otherwise in an intergovernmental agreement with any
other participating entity concerning the participating entity's and its public employees' legal
liability to third-party claimants, as authorized in § 8-105, the self-insurance 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 public employees under Division 6,
Article VII of Chapter 2 of this Code.
(2) The City's costs and attorney fees in anticipation of, to investigate or to defend the City
and/or any of its public employees related to any of the following potential or filed claims
or causes of action:
a. Any tort claim;
b. Any claim arising under contract;
c. Any action under Rule 106 of the Colorado Rules of Civil Procedure;
d. A declaratory judgment action;
e. Any action or claim arising under or pursuant to a state or federal statute;
f. An inverse condemnation or regulatory taking action; and
g. Any claim for equitable relief, including, without limitation, a claim for injunctive
relief.
(3) Judgments entered against and settlements agreed to by the City in civil claims or actions
arising under tort, state or federal statute, Rule 106 of the Colorado Rules of Civil
Procedure or that seek declaratory or equitable relief;
(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, attorney fees, medical expenses, disability benefits, indemnity
benefits and other costs associated with workers' compensation claims filed against the
City;
(6) Insurance premiums, broker fees and other costs related to the City purchase of liability,
property, workers' compensation and any other insurance policies purchased by the City,
but excluding title insurance policies;
(7) The City's costs to administer the self-insurance program and fund as are deemed
reasonable and necessary by the City's Financial Officer or such officer's designee; and
(8) The City's 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 Financial Officer or such officer's designee.
Section 4. That Section 8-107 of the Code of the City of Fort Collins is hereby
amended to read as follows:
8-107. - Funding of the self-insurance program.
The self-insurance program shall be funded by monies appropriated by the City Council for
expenditure from the self-insurance fund, and the self-insurance fund is hereby established to be
used for payment of the covered expenses described in § 8-106. Notwithstanding the foregoing,
no payment from the self-insurance fund shall exceed the uninsured portion of any covered
expense. In addition, nothing in this Division 3 is intended to prohibit expenditures from other
City funds to pay the self-insurance program's covered expenses described in § 8-106 provided
the monies for such expenditures have either been previously appropriated for such use or
transferred to the self-insurance fund in compliance with the applicable provisions of Article V,
Part 1 of the Charter.
Section 5. That Section 8-108 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 8-108. - Implementation and administration.
(a) The City's Financial Officer shall be responsible for implementation and administration of the
self-insurance program and fund, including the settlement of claims. The Financial Officer is
authorized to promulgate rules for the proper daily management, operation and maintenance
of the program and fund, and is further authorized to enter into professional services
agreements pursuant to relevant provisions of this Code for the administration of claims.
(b) The Financial Officer or such officer's designee shall authorize expenditures from the self-
insurance fund and may use other legally available funds 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 self-insurance fund shall be allocated
among the various service areas or departments of the City, and the service areas and
departments charged therefor, according to an assessment of each service area's and
department's exposure by the Financial Officer or such officer's designee. Factors to be
considered by the Financial Officer or such officer's designee shall include,without limitation,
each service area's or 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 16th day of
March, A.D. 2021, and to be presented for final passage on the 20th day of April, A.D. 2021.
Mayor
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Passed and adopted on final reading 7:yor
ay of April D. 2021.
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