Loading...
Gifts, devises and bequests may be made to the City, the City Council, to any officer, agency or employee of the City either by personal name or official title, MHS Enterprise or to any division, department, office, agency or board of the City regardless of how described. All gifts, devises and bequests shall be valid and effective as if made directly to the City and shall be administered by the City for the benefit of the division, department, office, agency or board of the City in accord with the terms of the gift, devise or bequest. Gifts, devises and bequests made to or for the benefit of MHS Enterprise or any department shall be administered by the Board of Trustees of MHS Enterprise. In the interest of clarity, "MHS Enterprise" does not refer to any current or future operator of leased facilities under the Memorial Health System Affiliation or encompass such operator's employees. (Ord. 11-18; Ord. 15-62)
A. Unless the City Council or Mayor specifically directs that a particular gift be placed in a special separate trust fund, all gifts shall be combined in a single trust fund to be known as the gift trust fund. This fund shall be administered by the Chief Financial Officer and shall be under the control and supervision of the City Council and Mayor, which shall ensure that the terms and conditions of each gift are carried out.
B. The Chief Financial Officer shall keep a separate record of the receipts, income, disbursements and status of each of the gifts in the gift trust fund which shall be open to inspection. (Ord. 11-18)
PART 5 CLAIMS MANAGEMENT 1
SECTION:
1.5.501: Purpose And Intent
1.5.502: Claims Reserve Fund
1.5.503: Compromise Or Settlement Of Matters/Claims
1.5.504: Claims Review Board
1.5.505: Rules And Regulations
1.5.506: Litigation
Notes
| 1 | 1. Prior ordinance history: Ord. 90-58; Ord. 92-70; Ord. 93-82; Ord. 93-124; Ord. 93-190; Ord. 98-185; Ord. 01-42. |
The City Council hereby recognizes that general liability and automobile liability insurance policies are subject to cancellation and changing market prices. City Council further recognizes that self-insurance and self-insured retention is a viable means to assure protection at the least cost, and therefore, there is an extraordinary need to address methods to protect the City and its employees against claims brought under the provisions of the Colorado Governmental Immunity Act and arising under Federal law. Additionally, the executive and administrative branch of the City, with approval of City Council, may by agreement provide claims and claims management services to other governmental entities pursuant to the requirements of this article. The agreement shall require that the separate governmental entity's self-insurance program and fund be managed in accord with the requirements of this article unless specifically modified by the terms of the agreement. Under no circumstances shall the Self-Insurance Fund of the City be subject to judgments, liens or encumbrances of claimants or creditors of any separate governmental entity that has contracted with the City to manage its self-insurance program and fund. Nothing shall preclude the City from expressly agreeing with another governmental entity to front end the payment of settlements or judgments, subject to reimbursement to the City in accord with the terms of the agreement with that governmental entity.
The City Council recognizes the undesirable consequences of uninsured liability of the City including failure to respond to meritorious claims in a timely fashion and greater ultimate costs of settlement caused by failure to investigate claims in an orderly and timely manner. The City Council hereby declares that the appropriate remedy is to create a Reserve Fund for purposes of self-insurance of the City to the extent that insurance coverage has not been obtained. The City Council declares that the purpose of this article is to create a Claims Reserve Fund, provide a mechanism for claims adjustment, investigation, and defense, and to authorize the settlement and payment of claims and payment of judgments rendered against the City for claims or judgments arising out of violation of Federal law or pursuant to any action which lies in tort or could lie in tort regardless of whether that may be the type of cause or action chosen by the claimant. The City Council finds that, to adequately protect the City and carry out these purposes, it is necessary to authorize the executive and administrative branch of the City to perform claims management services as promulgated in the administrative regulations outlined in the claims management policy for the City. The City Council declares that its intent is to explore the availability of commercial liability insurance policies of all types, including, but not limited to, variable deductible amounts, to ensure that the costs of protecting the City against liability are minimized. (Ord. 11-18)
A. There is hereby created a fund to be known as the Claims Reserve Fund, which will consist of all monies appropriated to the fund by the City Council or which may be otherwise made available to it by the City Council. The monies "otherwise made available" shall be deemed to include transfers of monies to the fund authorized in any given Annual Budget Ordinance. All interest earned from the investment of monies in the Claims Reserve Fund shall be credited to that fund and become a part of the fund. The monies in the fund are hereby continuously appropriated for purposes of this article. The Chief Financial Officer shall account for all independent fund categories within the Claims Reserve Fund including Utilities and Enterprise Funds if any are appropriated. Accounting of these funds shall be in a manner consistent with the applicable governmental accounting standards. At the end of any fiscal year, all unexpended and unencumbered monies in the Claims Reserve Fund shall remain in the fund and shall not be credited or transferred to any other funds.
B. The Claims Reserve Fund shall maintain reserves for incurred but unpaid liability claims for injuries which lie in or could lie in tort regardless of whether that may be the type of action chosen by the claimant, and for claims arising out of Federal law. The Claims Reserve Fund shall maintain reserves to provide for the contingency that in any year the contribution to the Claims Reserve Fund from other funds is not adequate to cover the actual expenses realized in that year. The Risk Manager, after consultation with the Chief Financial Officer and the City Attorney, shall recommend the amount of money that is required to maintain adequate reserves. Adequate reserves shall be maintained in the Claims Reserve Fund subject to available appropriations made by the City Council at its discretion.
C. Expenditures made out of the Claims Reserve Fund in accord with this subsection shall be made only for the following purposes:
1. To pay general liability claims and automobile liability claims and related expenses brought against the City, its employees or officials pursuant to the Colorado Governmental Immunity Act, and claims against the City and its officials or employees arising under Federal law, which the City is legally obligated to pay and which are compromised or settled pursuant to this article or in which a final money judgment against the City has been entered;
2. To pay the costs of defense, including expert witness fees, outside counsel legal fees, investigation and other related defense costs in connection with claims brought pursuant to the requirements of subsection C1 of this section.
D. Monies in the Claims Reserve Fund shall not be used to pay any of the following:
1. Claims for liabilities or losses which are covered under commercial insurance policies purchased by the City;
2. All claims other than those which arise under Federal law or which lie or could lie in tort regardless of whether that may be the type of action chosen by the claimant;
3. Any other claim or expense not set forth in subsection C of this section.
E. The Chief Financial Officer shall be responsible for the management and investment of the Claims Reserve Fund.
F. The setting aside of reserves for self-insurance purposes in the Claims Reserve Fund shall not be construed to be creating an insurance company nor shall the Claims Reserve Fund otherwise be subject to the provisions of the laws of the State of Colorado regarding insurance or insurance companies. The requirements of Colorado Revised Statutes concerning self-insurance under the Colorado Auto Accident Reparations Act are not applicable to this article.
G. Disbursements made from the Claims Reserve Fund for eligible expenditures shall be initiated by the preparation of a payment request or other appropriate electronic request as approved by the Chief Financial Officer or Utilities Controller from claims management in accord with the authority set forth in sections 1.5.503 and 1.5.506 of this part. All requests for disbursements from the Claims Reserve Fund shall be given the highest priority by the Chief Financial Officer with respect to the processing and preparation of a payment request in connection with the compromise or settlement of claims or the payments of judgments.
H. The City Auditor or any person authorized by the City Auditor shall conduct an examination as frequently as required in the judgment of the City Auditor, and in accordance with applicable laws and auditing standards, but not less frequently than once every four (4) years to determine that proper underwriting techniques, sound funding procedures, loss reserves, claims procedures and accounting practices are being followed in the management and operation of the Claims Reserve Fund or any other funds being used to cover deductible amounts when there is insurance coverage. The City Auditor shall present a report of findings to the City Council.
I. In the City's comprehensive annual financial report, the Chief Financial Officer shall report regarding the financial activities of the Claims Reserve Fund. (Ord. 11-18; Ord. 14-29)
Loading...