(A) The village finds that it is in the public policy of the state that members of governmental bodies shall not be liable in damages for the exercise of their discretion in determining policies. This public policy is set forth in ILCS Ch. 745, Act 10, § 2-201, which provides as follows:
"Except as otherwise provided by Statute, a public employee serving in a position involving the determination of policy or the exercise of discretion is not liable for an injury resulting from his act or omission in determining policy when acting in the exercise of such discretion even though abused."
(B) (1) In light of division (A) above, if any claim or action not covered by insurance is instituted against any elected or appointed village official, employee, or authorized volunteer in connection with any act or omission in determining policy, the village shall, to the fullest extent permitted by law:
(a) Appear and defend against the claim or action;
(b) Indemnify the elected or appointed village official, employee, or authorized volunteer for his or her court costs and attorneys' fees incurred in the defense of such claim or action;
(c) Pay or indemnify the elected or appointed village official, employee, or authorized volunteer for a judgment based upon such claim or action; and
(d) Pay or indemnify the elected or appointed village official, employee, or authorized volunteer for a compromise or settlement of such claim or action, provided that the settlement is approved by a majority of the members of the Board of Trustees.
(2) The term "elected or appointed village official" shall mean any former or current Village President, Trustee, or member of any village board, committee and commission.
(C) The foregoing indemnity shall not extend to any of the following:
(1) Any liability, attorneys’ fees, or costs with respect to any matter in which the elected or appointed village official, employee, or authorized volunteer is finally adjudged to be guilty of a criminal act. (To the extent that any criminal proceeding shall be pending at the time of indemnification or any criminal proceeding shall thereafter be instituted, any indemnification paid or promised shall be conditioned upon the termination of the criminal proceeding without a finding of guilt.);
(2) Any liability or judgment against an elected or appointed village official, employee, or authorized volunteer which is payable to the village itself or where the village was injured and the elected or appointed village official, employee, or authorized volunteer either obtained personal benefit or financial gain as a result of his or her wrongful conduct;
(3) Any liability, attorneys' fees, or costs incurred as a result of a village-initiated or approved investigation into the misconduct of the elected or appointed village official, employee, or authorized volunteer;
(4) Any liability, attorneys' fees, or costs incurred as a result of the elected or appointed village official's, employee's, or authorized volunteer's failure to reasonably cooperate or participate in the defense of any claim, action, suit, or proceeding with any person, party, or entity; or
(5) Any liability excluded by a written waiver from the elected or appointed village official, employee, or authorized volunteer.
(Ord. 06-09, passed 4-17-2006)