(A) Board members, commission members, public officials, officers and employees shall be indemnified, defended and held harmless by the city from and against all liabilities, expenses of investigation, attorneys' fees, courts costs, judgements and amounts paid in settlement which may be imposed upon or reasonably incurred or paid by the official or employee in connection with or resulting from any claim made against him or her, or any action, suit, proceeding or investigation in which he or she may be involved by reason of him or her being or having been the official or employee of the city, whether or not he or she continues to be the official or employee at the time of the claim, action, suit, proceeding or investigation.
(B) The indemnification shall not extend to any of the following:
(1) Any liability or cost with respect to any matter as to which any aforementioned individual is finally found to be guilty of bad faith or actual malice or wilful and wanton misconduct, recklessness or gross negligence in the performance of his or her duties, or the course and scope of his or her employment.
(2) Any payment, expense or cost arising out off a settlement of any claim, action, suit or proceeding, unless:
(a) The settlement shall be approved by the court having jurisdiction over the claim, action, suit or proceeding, with express knowledge of the existence of the indemnification provided hereby; or
(b) The settlement shall have been made upon the written opinion of independent legal counsel selected by the Council, to the effect that there is no reasonable ground for any finding of bad faith, or of actual malice or wilful or wanton misconduct or recklessness, or gross negligence on the part of any of the aforementioned individuals and that an anticipated cost of the settlement will not substantially exceed the estimated cost and expense of defending the claim, action, suit or proceeding to a final conclusion.
(3) Any liability or judgment paid by the city itself;
(4) The cost of independent legal representation in any action, suit or proceeding if the city offers or otherwise indicates its willingness to provide a legal defense with respect to the claim, action, suit, proceeding or investigation.
(5) Any attorney's fees, expenses or costs incurred by any of the aforementioned individuals in any action, suit, proceeding or investigation instituted by any of the aforementioned individuals against the city.
(C) In the event any aforementioned individual shall prevail in any action, suit or proceeding against him or her; any award of attorneys' fees, costs or expenses in favor of that individual shall be surrendered and assigned to city.
(Ord. 15-98, passed 7-7-98)