§ 19-51. Generally.

(a)

There is hereby created a fund of the city which shall be known as the insurance services fund. The purpose of this fund is to provide a source of funds to pay all costs of insurance coverage, insurance-related services required by the city and the settlement of claims against the city which are not otherwise covered by policies of insurance which shall be purchased by the city from time to time. The city may purchase insurance which shall provide coverage for those services enumerated in subsection (b) herein, which shall be in excess of coverage provided by the city.

(b)

The insurance services to be provided by this fund shall include any lawsuit, complaint or claim of any kind, whether through the courts or any administrative procedure, wherein the city, any employee thereof, or any official thereof, whether elected or appointed, shall be a subject of the complaint or claim. Notice of the complaint or claim shall be sufficient to authorize the utilization of this section.

(c)

Monies in this fund may be expended for all costs of insurance coverage, all insurance-related services required by the city and all settlements of claims against the city, as well as for the purchase of any policies of insurance and the payment of any insurance premiums.

(d)

There shall be appropriated into the fund each fiscal year out of the revenues of the city such monies as may be estimated to be required to pay all costs of services provided by this fund. Upon recommendation of the city manager, there may be appropriated into the fund monies as may be deemed appropriate for accumulating a reserve to be used to finance the insurance services set forth herein. The finance director may invest any surplus funds not immediately needed subject to the conditions of section 19-1, Investment policy.

(e)

The city may utilize an independent claims adjustment or administrative services.

(f)

The city manager, in cooperation with the independent claims adjustment or administrative services organization retained by the city, shall establish procedures for the processing, adjustment, settlement and payment of claims against the city.

(g)

Settlement of claims:

(1)

The independent claims adjustment or administrative services organization retained by the city shall have sole authority to settle any claims in an amount up to and including one thousand dollars ($1,000.00), and payment thereof is hereby authorized.

(2)

Upon consideration of the recommendation of the independent claims adjustment or administrative services organization retained by the city, the city manager shall have the authority to settle any claims in an amount in excess of one thousand dollars ($1,000.00) and up to and including thirty thousand dollars ($30,000.00) and to authorize payment thereof. The city manager shall notify the city commission if he/she exercises his/her authority to approve any settlement of a claim in excess of fifteen thousand dollars ($15,000.00). If any city commissioner objects in writing to such city manager approval within ten (10) days, then the settlement shall be brought before the city commission for discussion and approval.

(3)

All settlements of claims in excess of thirty thousand dollars ($30,000.00) must be approved by the commission.

(h)

All claims against the city which are insured by the city and which result in litigation shall be referred to the city attorney immediately upon service of the summons and complaint. The city attorney shall represent the city in all litigation unless the decision is made to employ outside counsel upon consultation with the city manager. The employment of outside counsel pursuant to this section shall not be subject to approval of the city commission as might otherwise be required in section 2-141(b) of the Code or any other section thereof. If any commissioner is the subject of a criminal complaint or a complaint by an administrative agency, the elected official who is the subject of the complaint may designate outside counsel to represent that elected official in that matter.

(Ord. No. 89-182, § 1, 9-25-89; Ord. No. 92-106, § 1, 1-27-92; Ord. No. 92-143, § 1, 5-26-92; Ord. No. 96O-132, § 21, 8-26-96; Ord. No. 10O-04-119, § 1, 4-26-2010)