(a) Council hereby finds that it is the public policy of the State that members of governmental bodies shall not be liable for damages for the exercise of discretion in determining policies. This public policy is set forth in 745 ILCS 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) In light of subsection (a) hereof, if any claim or action not covered by insurance is instituted against any member of Council in connection with any act or omission in determining policy, the Village shall, to the fullest extent allowed by law:
(1) Appear and defend against the claim or action;
(2) Indemnify the Councilmember for his or her court costs and attorneys fees incurred in the defense of such claim or action;
(3) Pay or indemnify the Councilmember for a judgment based on such claim or action; and
(4) Pay or indemnify the Councilmember for a compromise or settlement of such claim or action, provided that the settlement is approved by Council.
(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 Councilmember 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 a Councilmember which is payable to the Village itself or where the Village was injured and the Village Councilmember 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 Councilmember;
(4) Any liability, attorneys fees or costs incurred as a result of the Councilmember'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 Councilmember.
(Ord. 2001-02. Passed 1-22-01.)