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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