Sec. 18-9.1. The administrator is authorized to establish, manage, and administer a program to finance the risk of loss arising from losses, claims, costs, and expenses that are the obligation of the city. The administrator is authorized to make disbursements for and on behalf of the city, as necessary to operate and administer the program. Any program established by the administrator shall conform to the provisions of the trust agreement regarding areas of coverage under the trust and applicable law. In the event that the city, by written policy or directive, requires the administrator to obtain the consent of the board of trustees regarding disbursements or transfers from the trust, the administrator shall comply with such policy or directive.
Sec. 18-9.2. The administrator may procure insurance from any insurer authorized to do business in the State by the Arizona department of insurance, establish self-insured retention programs, or combine self-insured retention programs and procurement of insurance. If a self-insured retention is maintained, and subject to the city's appropriation of funds, the administrator is authorized to establish adequate and appropriate reserves, which may include an allowance for claims incurred but not reported for any claims made against the city which may be funded by the trust.
Sec. 18-9.3. The administrator has the authority to establish terms and conditions of coverage including exclusions of coverage, ensure that all claims payable through the trust are paid promptly, and enter into contracts required for the management or administration of the trust.
Sec. 18-9.4. The administrator, or their designee, is authorized to purchase all materials and services required for the operation of the program and the trust. Any and all bids or proposals may be rejected by the administrator if it is determined by the administrator that rejection is in the best interest of the city.
Sec. 18-9.5. The administrator, together with the city's finance director and the board of trustees, shall make an annual recommendation to the mayor and council regarding the level of trust funding necessary to achieve and then maintain adequate reserves in the trust fund.
Sec. 18-9.6. The administrator shall work with the city's procurement department to select and appoint an independent qualified actuary for the trust and shall approve the actuarial assumptions used to value the trust assets and liabilities, based on recommendations of the actuary.
Sec. 18-9.7. The administrator is authorized to establish loss control and prevention programs designed to reduce or eliminate losses and claims against the physical and financial assets, and human resources, of the city.
Sec. 18-9.8. The administrator is authorized to settle claims against the city, its officers, appointees and employees, subject to the following conditions:
(1) The administrator or the administrator's designated representative has made a thorough investigation regarding questions of liability and damages and has determined the reasonable dollar value of the claim; and
(2) If the settlement involves a matter in litigation, the settlement has first been approved by the city attorney, regardless of the settlement amount; and
(3) The administrator has the authority to approve administratively the settlement of claims where the settlement does not exceed:
(A) twenty thousand dollars ($20,000.00) for a bodily injury or property damage claim;
(B) forty thousand dollars ($40,000.00) for a combined bodily injury/property damage claim; or
(C) the amount of the deductible under the city's property insurance policy for a property damage claim .
(4) If the settlement of a claim or lawsuit exceeds the authority levels stated in subsection (3), the administrator must counsel with the city attorney prior to approval. Settlement of claims for amounts that exceed the authority levels stated in subsection (3) above also requires mayor and council approval.
(5) If the claim is a workers' compensation claim and the proposed settlement would be a structured and/or full and final workers' compensation claim settlement, the administrator is required to secure the approval of the city attorney prior to settlement. Structured and/or full and final workers' compensation claims are governed by the Arizona Industrial Commission and must be in accordance with A.R.S. § 23-941.01; and must be approved by the Arizona Industrial Commission prior to finalization. Settlement of a workers' compensation claim under this subsection also requires mayor and council approval if the amount of the settlement exceeds forty thousand dollars ($40,000).
(6) Any and all settlements are conditioned upon an appropriate written release by the claimant in favor of the city, its officers, appointees, and employees.
Sec. 18-9.9. The administrator shall work with the board of trustees to take all necessary precautions to safeguard the assets of the trust and assist in the facilitation and administration of the trust in whatever manner is appropriate and necessary.
Sec. 18-9.10. In accordance with the provisions of this Chapter 18 and the terms of the trust agreement, the administrator shall coordinate the activities of the trustees, prepare and submit annual reports to the mayor and council on the status of the city's self-insurance program and the status of the trust.
(Ord. No. 11832, § 2, 5-4-21; Ord. No. 12003, § 1, 5-23-23)