1.5.402: CONDITIONS OF GIFTS; ACCEPTANCE:

Any person or organization may make gifts, devises or bequests to the City upon the terms, conditions or provisions as the donor desires. By accepting the gift, devise or bequest, the City covenants to carry out the terms, provisions and conditions of the gift, devise or bequest that require reasonable performance by the City. The City Council may decline to accept any gifts the terms of which it believes may not be feasibly accomplished or are onerous to the City. (Ord. 11-18)

1.5.403: DESIGNATION OF DONEE:

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)

1.5.404: SEPARATE FUND ESTABLISHED; RECORDS:

   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.

1.5.501: PURPOSE AND INTENT:

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)

1.5.502: CLAIMS RESERVE FUND:

   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)

1.5.503: COMPROMISE OR SETTLEMENT OF MATTERS/CLAIMS:

   A.   Requirements: It shall be the responsibility of claims management to investigate and to deny, compromise or settle all claims filed against the City or its employees pursuant to the requirements of:

      1.   The Colorado Governmental Immunity Act or actions arising under Federal law in accord with this article. Prior to settling a claim of fifteen thousand dollars ($15,000.00) or more, the person authorized to settle the claim shall consult with the Manager of the affected group or department to determine the appropriateness of the compromise or settlement amount. The ultimate decision shall rest with the person having the responsibility pursuant to this section to settle or compromise the claim. Nothing shall preclude the person authorized to settle or compromise the claim to refer the claim to a person with higher settlement authority, the Claims Review Board or City Council, as appropriate.

      2.   The Colorado Auto Accident Reparations Act as set forth in Colorado Revised Statutes.

   B.   Authorization: The following parties are authorized to make compromises or settlements on behalf of the City in the following amounts:

      1.   The Risk Manager is authorized to settle claims:

         a.   Pursuant to the Governmental Immunity Act or actions arising under Federal law for an amount not to exceed fifty thousand dollars ($50,000.00);

         b.   Pursuant to the provisions of the Colorado Auto Accident Reparations Act as set forth in Colorado Revised Statutes;

      2.   The City Attorney is authorized to settle matters or claims for an amount not to exceed fifty thousand dollars ($50,000.00);

      3.   The Claims Review Board is authorized to settle matters or claims for an amount not to exceed one hundred thousand dollars ($100,000.00);

      4.   The City Council is authorized to settle matters or claims for an amount not to exceed the maximum liability limits under the Colorado Governmental Immunity Act for claims which lie or could lie in tort regardless of the nature of the action which is brought by the claimant, and for any other amounts which the City Council deems appropriate with respect to claims arising under Federal law.

   C.   Report: No matters or claims shall be settled unless supported by a claims settlement report, which will give a concise statement of the nature of the matter or claim, the history of the proceedings and a recommendation from the person assigned the matter or claim on behalf of the City.

   D.   Cooperation And Assistance: In investigating claims brought against the City and its officials or employees, the Risk Manager shall have authority to seek the advice and cooperation of all departments, offices or agencies of the City with respect to establishment of facts, determination of liability and assistance in utilization of the professional expertise of various employees within the City in connection with those claims. Advice and assistance shall be provided on a timely basis.

   E.   Examination Of Procedures; Report Of Findings: 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, the City Auditor or any person authorized by the City Auditor shall conduct an examination of the claims procedures, use of settlement authority and management and operation of claims management to determine that the use and operation of the Claims Reserve Fund is being accomplished in a prudent and reasonable manner. The City Auditor shall present a report of findings to the City Council.

   F.   CSU And Enterprise Insurance:

      1.   The Utilities and some Enterprise Fund activities have not canceled their general liability or automobile liability insurance policies. However, these insurance policies may contain self-insurance retention amounts which are the responsibility of the City. This Code enables transfers of monies set aside to cover self-insurance retention amounts of the Claims Reserve Fund if done by the City Council. If not done by the City Council, then the accounts within the respective Enterprise Funds and the Utilities Department's budgets for coverage of self-insurance retention amounts are recognized as monies that can be used in accord with Colorado Revised Statutes section 24-10-113 to pay any costs of defense, including expert witness fees, outside counsel legal fees, investigation and other related defense costs in connection with claims brought pursuant to this article and to pay any compromise, settlement or final judgment.

      2.   The Utilities and other Enterprise Fund activities which have general liability and automobile liability insurance coverage with self-insurance retention amounts shall cause claims made against the Utilities or other Enterprise Fund activities to be handled up to the self-insurance retention amounts or in the case of claims under the Colorado Governmental Immunity Act, up to the damage limitations set forth in Colorado Revised Statutes section 24-10-114 in accord with this article.

   G.   Disbursements: Disbursements from the Claims Reserve Fund or any other accounts established for the purpose of covering self- insurance retention amounts where there is general liability and automobile liability insurance coverage for claims compromised or settled shall be paid by the City or Utilities Chief Financial Officer on behalf of the Utilities upon payment requests drawn in accord with the law and this article. All disbursements made by the City or Utilities Chief Financial Officer shall be duly reported in the City or Utilities Chief Financial Officer's annual financial report. (Ord. 11-18; Ord. 14-29; Ord. 19-6)

1.5.504: CLAIMS REVIEW BOARD:

   A.   There is hereby created a Claims Review Board which shall consist of the Mayor, for claims against the City, or the Utilities Chief Executive Officer, for claims against the Utilities, the City Attorney, the City's or Utility's Chief Financial Officer, and the affected department, division, office or agency Director or Manager. The Claims Review Board shall meet only when required to determine whether or not to compromise or settle a claim within the authorities provided in this chapter. Three (3) members present shall constitute a quorum of the Board.

   B.   The Risk Manager shall act as the Secretary of the Board and shall be responsible for preparing its agendas and providing the Board with all applicable reports and documentation necessary to properly assess claims brought before it.

   C.   It shall be the responsibility of the Risk Manager and the City Attorney to prepare a claims assessment in connection with each claim brought before the Board. The claims assessment shall meet all of the requirements, as a minimum, of the claims settlement report described in this chapter.

   D.   The Board shall have the following powers and duties:

      1.   To compromise or settle claims on behalf of the City and its officials and employees in amounts authorized in section 1.5.503 of this part.

      2.   To adopt rules governing its own organization and proceedings.

      3.   To advise in the management of the Claims Reserve Fund created pursuant to this part and activities arising in connection with the settlement or compromise of claims brought against the City, its officials and employees. (Ord. 11-18; Ord. 18-41)

1.5.505: RULES AND REGULATIONS:

To carry out the purposes of this article, the Risk Manager may promulgate reasonable rules and regulations governing the administration of claims management programs. (Ord. 11-18)