107.01 Establishment.
107.02 Reserves and costs of administration.
107.03 Administrative consultants; legal representatives.
107.04 Self-Insurance Board of Control.
107.05 Source of funding.
CROSS REFERENCES
Liability of municipal corporations for operation of vehicles - see Ohio R.C. 701.02
Insurance policies and contracts - see Ohio R.C. Ch. 3902
Casualty insurance; motor vehicle insurance - see Ohio R.C. Ch. 3937
Crimes relating to insurance - see Ohio R.C. Ch. 3999
The Mayor is hereby authorized to establish and maintain a self-insurance program to insure the City, its properties and its officers and employees against liability, expense, loss and damage which arise, or are claimed to have arisen, from the performance or nonperformance of official duties. Such self-insurance program shall be established and maintained consistent with the provisions of this chapter. The Mayor is further authorized to sign any and all documents and to take any necessary steps to substitute the City's self-insurance program for any insurance coverage required under contracts with third parties.
(Ord. 22-1989. Passed 1-17-89.)
(a) Council shall annually appropriate and reserve such money as is necessary, in the exercise of sound and prudent actuarial judgment, to cover potential liability, expense, loss and damage to the City and its officers and employees, which may arise or be claimed to have arisen from the performance of official duties during the ensuing calendar year. The amount so appropriated and reserved shall not be less than one hundred fifty thousand dollars ($150,000) for the balance of 1988 during which the City's self-insurance program is in effect, and not less than two hundred fifty thousand dollars ($250,000) for each of the subsequent four consecutive years.
(b) All money appropriated and reserved as provided in this section shall be maintained by the Director of Finance in a special fund and shall be disbursed solely for the purpose of administering the City's self-insurance program, including, but not limited to, disbursements for claims paid, costs of legal representation, fees paid to administering consultants, fees paid to expert witnesses, expenses incurred in the evaluation of claims, expenses incurred in preparation for trial or appeals, and court costs.
(c) The Director shall deposit the special fund created by this section in interest generating accounts with any of the financial institutions authorized by Council for deposit of other City funds. All interest generated by such deposits shall be transferred by the Director to the special self-insurance fund.
(d) Interest earned and any unencumbered surplus remaining in the special fund established by this section at the end of any fiscal year shall be carried over to the following year, and no amount thereof shall be transferred to any other fund.
(Ord. 149-1988. Passed 6-20-88.)
(e) On or before January 15 of the first year after establishment of a self-insurance program, and annually thereafter, no later than February 1 of every year, the Director of Finance shall submit a written report to the Mayor and Council detailing the amounts received and disbursed from the self-insurance fund during the preceding calendar year, including the persons to whom any such disbursements were paid and the reasons for such disbursements.
(Ord. 30-1990. Passed 2-5-90.)
(a) The Mayor is authorized, for periods of up to two years, with the approval of a majority of the members of Council, without the necessity for competitive bidding, to enter into personal services contracts with one or more persons for purposes of administering the self-insurance program, including, but not limited to, a program administrator, an independent adjusting firm and an independent actuarial firm, each of which shall be subject to Council approval. Funds to pay for this expenditure are to be derived from the General Fund, Liability Self-Insurance Line item.
(Ord. 144-1989. Passed 6-19-89.)
(b) In any legal action covered by the self-insurance program created by this chapter, the Mayor, with the approval of a majority of the members of Council, may enter into a personal services contract with one or more attorneys at law to conduct the defense of such action, if it is the opinion of the Mayor that the nature and complexity of the factual or legal issues involved are such as to make it impractical for the Department of Law to conduct the defense thereof.
(c) Should any such defense result in a decision that could be subject to the appeal process, the attorney or attorneys of record and/or the Director of Law shall submit, in writing, to the Mayor and Council at an executive session the basis of such appeal, or if such appeal is not advisable, an appropriate recommendation.
(Ord. 149-1988. Passed 6-20-88.)
(a) There is hereby established a Self-Insurance Board of Control, consisting of the Mayor, who shall serve as Chairperson, the Director of Finance, the Chairperson of the Finance Committee of Council or his or her designee, and the Director of Law. The Board shall establish rules, regulations and procedures for payment of claims.
(Ord. 149-1988. Passed 6-20-88.)
(b) The Mayor, upon written recommendation of the Director of Law, is authorized to adjust and settle any claims covered by the self-insurance program created by this chapter where the amount to be disbursed pursuant to the claim does not exceed three thousand, five hundred dollars ($3,500), exclusive of administrative costs.
(c) Where the amount to be disbursed pursuant to a claim covered by the self-insurance program created by this chapter exceeds three thousand, five hundred dollars ($3,500) but does not exceed ten thousand dollars ($10,000), such claim may be adjusted and settled by the Board, provided the majority of members thereof concur.
(Ord. 24-1999. Passed 2-1-99.)
(d) In the case of all claims by or against the City, whether pending in any court, State or Federal, or asserted prior to the commencement of actual litigation, whether covered by the self-insurance program established by this chapter or otherwise, the Law Director is hereby authorized to enter into settlement of any such claim withoutthe prior approval of Council where the amount to be disbursed or received by the City does not exceed one hundred thousand dollars ($100,000.00) and (if to be disbursed) the City's Self-Insurance Fund contains sufficient funds to pay the entire settlement amount. Notwithstanding the above, the discretionary authority granted to the Law Director by this section expressly does not apply to any claim for non-monetary relief, including but not limited to injunctive relief or relief which would alter or affect the zoning of any parcel or parcels within the City in any way, which claims may only be settled on terms approved in advance by ordinance adopted by a majority of the members of Council casting a minimum of five affirmative votes.
(Ord. 89-1989. Passed 4-17-89.)
(e) As to settlement of any such claim by or against the City, the amount of which shall exceed one hundred thousand dollars ($100,000.00), or for funds in which the City's Self-Insurance Fund at such time shall be insufficient to pay such claim in full, or which shall include any claim for non-monetary relief, including but not limited to injunctive relief or any claim which would affect the zoning of any parcel or parcels within the City in any way, the Law Director shall obtain the prior approval of Council by ordinance adopted by a majority of Council casting a minimum of five affirmative votes. To maintain confidentiality, any such ordinance in advance of pending settlement negotiations may be considered in executive session and may grant authority to the Law Director to affect a settlement within the parameters of a minimum or maximum amount, as the case may be, or within the parameters of such other terms and conditions in a specific case as shall be directed by Council in such ordinance.
(f) When called upon by the President of City Council from time to time, the Law Director shall meet in executive session with members of Council to report upon the status of any and all claims asserted by or against the City, regardless of the amount or the subject matter thereof, and without limitation or restriction shall supply all available information concerning such claims, and respond in the spirit of full disclosure required by this section, to any question or request for further information by any member of Council.
(g) No outside legal counsel shall be retained to represent or advise the City in connection with any matter whatsoever unless sufficient funds are available in the outside-counsel line item of the various budgets. Use of outside counsel that will be anticipated to exceed the budgeted amounts shall be promptly presented to Council and a budget amendment requested.
(Ord. 211-1988. Passed 9-19-88; Ord. 186-2005. Passed 12-19-05.)
The money needed to establish and maintain a self-insurance program shall be paid from funds appropriated or to be appropriated for such purpose. The Finance Director is authorized, upon recommendation of the Law Director, to charge all of the costs, including damages, incurred in litigating or settling any lawsuit or claim arising due, in whole or in part, to the operations or activities of any Enterprise Fund operation or activity, including, but not limited to, the Waste Water Treatment and Sewer System and the Briardale Greens Golf Course. Any funds expended pursuant to this section shall be reported annually to Council pursuant to Section 107.02(e).
(Ord. 276-1992. Passed 12-7-92.)