HomeMy WebLinkAboutORD 86-13 - City Self-InsuredAn ordinance amending Section 1 of the Georgetown Code of Ordinances, as
amended; providing that the City of Georgetown shall be self-insured when the
City does not have adequate insurance with an insurer other than the City of
Georgetown; creating the City of Georgetown Officer and Employee Liability Plan;
providing coverage, limits of coverage, exclusions, and related provisions for
the indemnification and defense of city officers and employees; providing a
severability clause; and providing an effective date.
SECTION 1. That Section 1 of the Georgetown Code of Ordinance, as amended,
is amended by adding Section 1-10 to read as follows:
(1) CITY mans the city of Georgetown, Texas.
(2)
CITY
VEHICLE means a vehicle or mobile equipment either leased or
owned by
the
city.
ORDINANCE
N0.
An ordinance amending Section 1 of the Georgetown Code of Ordinances, as
amended; providing that the City of Georgetown shall be self-insured when the
City does not have adequate insurance with an insurer other than the City of
Georgetown; creating the City of Georgetown Officer and Employee Liability Plan;
providing coverage, limits of coverage, exclusions, and related provisions for
the indemnification and defense of city officers and employees; providing a
severability clause; and providing an effective date.
SECTION 1. That Section 1 of the Georgetown Code of Ordinance, as amended,
is amended by adding Section 1-10 to read as follows:
(1) CITY mans the city of Georgetown, Texas.
(2)
CITY
VEHICLE means a vehicle or mobile equipment either leased or
owned by
the
city.
(3) LOSS means an amount which a plan member is legally obligated to pay
resulting from an act or omission of the plan member which is covered under this
plan.
(4) PLAN means the City of Georgetown Officer and Employee Liability Plan.
PLAN .. person
(a) an employee of the city;
(b) a member of a city board, commission, or committee created by
charter, ordinance, or resolution of the city:
(c) the mayor or a member of the city council; or
(d) a volunteer who has been approved as a volunteer by a
departmental volunteer coordinator and who is working under the direction of an
employee of the city.
( 1 ) The city shall be self-insured when the City does not have adequate
insurance with an insurer other than the City of Georgetown.
Page 1 of 5 Pages
(3) A plan member whose position with the city terminates is entitled to
coverage in accordance with this plan for any event that occurred while the
person was a plan member.
SEC. 1-10(C) DEFENSE®
( 1 )
(2)
The
city shall
indemnify and defend a
plan
member, in
accordance
with
the
terms
of
this plan,
against a loss arising
under the Texas Tort
out of any claim,
suit,
or
judgment
the
resulting
from
an act or omission
of
the plan member
during
the
discharge
obligated to pay
of
his duties
and within the scope
of
his office,
employment,
provided
or
by that Act, as amended
for units of government.
assigned
volunteer
work with
the city.
(3) A plan member whose position with the city terminates is entitled to
coverage in accordance with this plan for any event that occurred while the
person was a plan member.
SEC. 1-10(C) DEFENSE®
( 1 )
The
city
will
pay losses covered by
defend
plan
any suit
against
a plan
except that
member who is covered
under
this
under the Texas Tort
plan
Claims Act (Article 6252®19,
even
if
the
suit
is groundless
or
fraudulent.
that a plan
(2) The city may investigate, negotiate, and settle any claim or suit as
it determines necessary.
SEC, 1�10(D) LIMITS OF COVERAGE.
( 1 )
The city will
pay losses covered by
this
plan
that a plan member
is
legally obligated to pay,
except that
in cases
arising
under the Texas Tort
Claims Act (Article 6252®19,
Vernon's
Texas Civil
Statutes)
the city will
pay
losses covered by this plan
that a plan
member is
legally
obligated to pay
up
to, but not exceeding the
limits
of liability
provided
by that Act, as amended
for units of government.
(2) In addition to the coverage provided in paragraph (a) the city will
pays
(a) the city's expenses in investigating and defending the claim or
lawsuits
(b) costs taxed against a plan member in a suit covered by this plan
and interest that accrues after entry of judgment before the city has deposited
payment with the court on that part of the judgment which does not exceed the
limits of coverage,
(c) reasonable expenses of the plan member incurred at the city's
request; and
(d} attorney's fees ordered by the court to be paid by the plan
member.
SEC. 1-10(E) NOTICE OF OCCURRENCE, CLAIM OR SUIT* COOPERATION.
To be entitled to coverage under the plan a plan member must.
(1) notify the city attorney as soon as practicable upon receipt of
written notice of a claim or lawsuit, but no later than three working days after
receipts
(2) cooperate with the city attorney and, upon the city attorney's
request, assist in making settlements, in the conduct of suits, and in enforcing
Page 2 of 5 Pages
any right of contribution or indemnity against a person or organization who may
be liable to the cit because of injury or damage covered under the plan;
(3)
attend
hearings
and
trials and
assist in securing and giving evidence
and obtaining
the
attendance
of
witnesses&
and
(4) not, except upon advice of the city attorney or when questioned by a
police officer at the scene of an accident, give any oral or written statement
or enter into any stipulation or agreement concerning a claim or lawsuit;
(5) not, except at his own cost, voluntarily make any payment, assume any
obligation, or incur any expense with respect to a claim or lawsuit without the
consent of the city®
This plan covers only acts or omissions occurring or alleged to have
occurred.
(1) while the plan is in effect;
(2) before the plan was in effect and which are not barred by any statute
of limitations; and
(3)
if
the
plan
is
cancelled,
to a claim
or lawsuit
while
the plan is in effect and which are
not barred
by
any
statute
of limitations.
member
with
SEC. 1-10(G) EXCLUSIONS.
Coverage
of the intentional
under
this
Plan
does not apply
to a claim
or lawsuit
that is
brought
against
a
plan
member.
(1) by the city;
(2) arising out
of the intentional
or knowing
violation of a penal statute
or ordinance committed
by or with
the knowledge or
consent of the plan
member,
or any claim arising
out of
acts of fraud committed
by or at the direction of
the
plan
member
with
city
intent
for benefits
to
deceive
or defraud;
plan;
or
(3) arising either while the plan member is operating a city vehicle with
no authority to operate the vehicle, or while the plan member is operating a
city vehicle in the course of personal or private business;
(4)
for liability
the plan
member joins
assumed by the
plan
member under a contract, unless
the
contract
is entered
into
at the request
of
the city;
(5) if
the plan
member joins
or attempts
to
join
with
the
suit against the
plan member
a
claim
against the
city
for benefits
under
this
plan;
or
(6) if the plan member fails to comply with Section 5 of this plan®
affiffinflet U60,
If payment or legal representation is provided under this plan, the city is
subrogated to the plan member's rights of recovery against any person or
organization to the extent of the city's liability and payments, and the plan
member must execute and deliver to the city attorney whatever documents are
necessary to secure those rights. The plan member must not do anything after a
loss to prejudice those rights.
( 1 )
The
city attorney determines
city
there is a
will
of
provide
for the
legal
a plan
of coverage
representation
the plan
for
to
a plan member in a
claim
or
suit
plan,
in
which
exist
the plan
fee of
member is
covered
under this
member.
The private
plan®
(2)
If the
city attorney determines
that
there is a
conflict
of
interests
for the
city attorney in representing
a plan
of coverage
member, and
the plan
proper jurisdiction
to
member is
otherwise
entitled
to coverage under this
plan,
the city will
pay the
exist
reasonable
fee of
a private
attorney to represent
the plan
member.
The private
the
attorney
will
under
the plan and
be
selected
by mutual agreement of
the plan
member and
the city
attorney®
SEC. 1-10(J) DETERMINATION OF COVERAGE®
Nothing contained in this plan
cause of action against a plan member
institute or maintain a suit which
legal claim against a plan member."
SECTION 1®10(L)
shall
If
the
city denies coverage to a plan
member,
the
plan member
may seek a
determination
nor as
giving
of coverage
by a
court of
proper jurisdiction
to
in Williamson
requiring
County,
not
Texas.
If the
court rules
exist
in favor of the
plan
member, the
city shall
law
provide
a
the
plan member
all benefits
under
the plan and
shall
reimburse
the plan
member
for
reasonable
attorney
fees, expenses
and
costs incurred in obtaining
the
determination
of coverage®
Nothing contained in this plan
cause of action against a plan member
institute or maintain a suit which
legal claim against a plan member."
SECTION 1®10(L)
shall
its officers
be
construed as creating
period of time as hereinabove
a
right
or
nor as
giving
a right to a third
immediate preservation
of the
party
to
would
requiring
that the
not
providing
otherwise
exist
under
law
as
a
That Sections 1-1 through 1-9 of the Georgetown Code of Ordinance, as
amended, shall remain in full force and effect, save and except as amended by
this ordinance®
SECTION 1-10(M)
That the terms and provisions of
governed by Sections 1-1 through and
Ordinances, as amended®
SECTION 1-10(N)
this ordinance are severable and are
including 1-5 of Georgetown Code of
The fact that the City,
its officers
and employees may be
uninsured for a
period of time as hereinabove
provided creates
an emergency
and imperative
public necessity for the
immediate preservation
of the
public
peace, health,
safety and general welfare
requiring
that the
Charter Rule
providing
that no
ordinance shall go into effect before the expiration of ten days from the date
of its final passage and all other rules requiring more thatn one reading or
prohibiting the passage of an ordinance on the day of introduction and passage,
be and the same are hereby suspended, and this ordinance shall be passed and
take effect as an emergency measure and be in full force from and after its
passage as provided by law, and it is so ordained.
PASSED
AND
APPROVED
1986
ATTEST.jp
t
B
.r
PAT CABALLERO, City Secretary
APPROVED AS TO FORM.
STUMP & STUMP, City Attorneys
Page 5 of 5 Pages