Loading...
HomeMy WebLinkAboutBack-Up from Law DeptARTICLE VI. - SELF-INSURANCE AND INSURANCE TRUST FUND Sec. 18-221. - Created; sources. (a) There is hereby created a city self-insurance and insurance trust fund, the fund to which shall be credited all money deposited in the city treasury by appropriation or from any other source, together with any unexpended balance of any appropriation heretofore made for the expenditure of public funds, for or accruing from: (1) The payment of claims and judgments against the city involving the acts of officers or employees of the city or property belonging to the city. (2) Insuring or providing for the insurance of any real or personal property or operation of the city against risks or hazards. (3) The maintenance of hurricane disaster funds. (4) The recovery of tort claims against other parties. (5) Fines and forfeitures levied against employees as a result of being found responsible for preventable accidents. (6) Amounts received from parties contracting with the city for providing insurance coverage to protect the parties for any and all risks involving activities or property associated with the contracts. (7) Income accruing from the investment of the trust funds. (b) Such funds are to be expended in accordance with the provisions and for the purposes stated in this article. The fund shall be segregated from other funds in the city treasury and shall be administered by the board of trustees appointed for that purpose. (Code 1967, § 16-47; Code 1980, § 18-93) Sec. 18-222. - Appropriation of money. All money accumulated in the fund is hereby appropriated for the purposes for which designated, to be expended in accordance with the provisions and procedures established by this article. (Code 1967, § 16-48; Code 1980, § 18-94) Sec. 18-223. - Board of trustees —Composition; discharge of duties; compensation; powers. (a) The board of trustees for the city self-insurance and insurance trust fund, referred to as "the trustees," shall be composed of the city manager as chairman, the director of finance and the insurance manager. The trustees shall discharge their duties during normal duty hours and shall not be entitled to additional compensation by reason of their services as trustees. However, they shall be reimbursed for any expenses incurred. The trustees shall invest all the trust funds to the fullest extent consistent with the cash requirements and investment objectives of the fund. (b) The trustees shall have the power to make purchases, sales, exchanges, investments and reinvestments for and on behalf of the fund. It shall be the duty of the trustees to see that the money invested is at all times handled in the best interest of the city. (Code 1967, § 16-49; Code 1980, § 18-95) Sec. 18-224. - Same —Oath of office. Each trustee shall take an oath of office and make written acknowledgment of his acceptance of the duty, responsibility and authority of a trustee. (Code 1967, § 16-50; Code 1980, § 18-96) Sec. 18-225. - Same —Meetings. The board of trustees shall hold regular meetings at least quarterly each year and special meetings at such time as the chairman may deem necessary. (Code 1967, § 16-51; Code 1980, § 18-97) Sec. 18-226. - Disbursement of money. The trustees shall disburse money from the fund to the director of finance upon his requisition and certification that the expenditure of the funds so requisitioned is to accomplish the purpose of the self- insurance and insurance program. The receipt for such funds shall constitute a full acquittance to the trustees. (Code 1967, § 16-52; Code 1980, § 18-98) Sec. 18-227. - Sale or exchange of securities and investments. Securities or investments purchased or held under the provisions of this article may be sold or exchanged for other securities or investments, provided that no sale or exchange shall be at a price less than the market price of the securities or investments to be sold or exchanged. (Code 1967, § 16-53; Code 1980, § 18-99) Sec. 18-228. - Investment of funds. Trust funds may be invested without limitation in: (1) Bonds, notes or other obligations of the United States or those guaranteed by the United States or for which the credit of the United States is pledged for the payment of the principal and interest or dividends thereof. (2) Certificates of deposit of any bank incorporated under the laws of this state or any national bank organized under the laws of the United States to do business and situated in this state, to the extent that such savings accounts are insured with the federal government or any agency thereof, and if the certificates of deposit are secured by the deposit of securities of the United States government. (Code 1967, § 16-54; Code 1980, § 18-100) Sec. 18-229. - Self-insurance and insurance committee —Appointment; composition; chairman. There shall be appointed annually by the city manager a committee to be known a the city self- insurance and insurance committee. The committee shall be composed of three members who shall be selected from among the officers or employees of the city. The city manager shall designate one of the members to act as chairman. The committee shall administer the self-insurance program and maintain appropriate records which shall reflect the status of the program and be in such detail as required to enable the committee to determine appropriate reserves. The committee shall determine and recommend to the city commission the amount of reserves to be accumulated and maintained and the amount to be appropriated annually to finance the self-insurance and insurance program. (Code 1967, § 16-55; Code 1980, § 18-101) Sec. 18-230. - Same —Responsibilities. The committee shall, as expeditiously as possible, with due regard to the financial security of the city, proceed to establish the means whereby the city shall become self -insured in primary insurance coverage while maintaining umbrella coverage to insure against catastrophic losses. The means contemplated include the establishment of financial reserves and securing adequate qualified personnel, supplies and equipment to perform required services in an economical and efficient manner. The committee is specifically authorized and directed to ascertain that the city's financial interest is fully protected at all times. Any provisions of this article to the contrary notwithstanding, in the event that adequate financial reserves have not been provided or an analysis of the costs involved demonstrates that it is more economical for the city to maintain coverage for certain specific risks through commercial insurance policies, the committee is authorized and directed to procure such coverage. The premiums shall be paid from trust funds unless the city commission shall have directed otherwise and provided funds for that purpose. The committee shall utilize the services of regular city employees to the greatest extent practical, but may procure specialized services on a fee basis from independent contractors when such action is not prohibited by law. Where personal services for the program rendered by regular city employees require the expenditure of a substantial portion of the employees' working time on a regular or recurring basis the pro rata costs of such time, including all emoluments, shall be charged as an expense of the program. The commission may provide for the payment of such expenses during the regular budgeting process by providing funds for the payment of such personnel in the appropriate departmental budget with a corresponding reduction in the amount appropriated directly to the trust fund. In the event that the program shall require personnel services, payment for which shall not have been provided in the budget, the trustees shall provide funds expended or to be expended for such services. (Code 1967, § 16-56; Code 1980, § 18-102) Sec. 18-231. - Operation and function of insurance program. It is the intention of the commission of the city that the insurance program shall operate and function in a manner similar to a commercial insurance company. Accordingly, all expenses arising from the operation of the program shall be paid from the fund to the same extent as similar expenses would be discharged by the payment of premiums to a commercial insurance carrier. (Code 1967, § 16-57; Code 1980, § 18-103) Sec. 18-232. - Responsibilities of city attorney. (a) The city attorney shall perform or supervise the performance of all legal services required to accomplish the purposes of the self-insurance and insurance program. Legal services shall include, but not be limited to, the defense or prosecution or negotiation of settlement agreements of all claims or suits, the investigation of all claims and settlement of those claims found to be well founded for which the amounts claimed are payable from the trust fund. (b) The city attorney and such of his assistants and claims adjusters as he may designate may compromise, settle and pay all claims which may be discharged by payment of an amount not to exceed $25,000.00 for each individual claim. Such settlements or compromises shall be for all damages claimed for personal injury, property damage, or both. (c) Proposed settlements in excess of $25,000.00 shall be submitted to the city commission for its approval prior to acceptance. The city commission shall waive its attorney -client privilege of confidentiality for said settlements for purposes of review by the Financial Emergency Oversight Board. (d) Upon approval by the city commission or the city attorney, as specified in the two preceding paragraphs [subsections (b) and (c) of this section], the city attorney shall authorize the payment of the claim by the finance director and provide such documents as the finance director may require. (e) The city attorney shall render such report or reports for the settlement of claims to the committee and the city commission as they shall require. (Code 1967, § 16-58; Ord. No. 8718, § 1, 10-26-77; Ord. No. 10072, § 1, 1-23-86; Code 1980, § 18-104; Ord. No. 11583, § 1, 12-30-97) Secs. 18-233-18-260. - Reserved.