HomeMy WebLinkAboutCity of Tamarac Ordinance O-2001-004Temp. Ord. # 1920 - January 16, 2001
Revision # 1 -- February 1, 2001
Revision # 2 — February 26, 2001
Page 1
CITY OF TAMARAC, FLORIDA
ORDINANCE NO. 0-2001-i9'�
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY
OF TAMARAC, FLORIDA, AMENDING CHAPTER 2
"ADMINISTRATION", ARTICLE Vill "RISK MANAGEMENT
PROGRAM" OF THE CITY CODE OF ORDINANCES TO
PROVIDE FOR THE OPERATION OF THE RISK
MANAGEMENT PROGRAM WHEN THE CITY ELECTS TO
PURCHASE OUTSIDE INSURANCE COVERAGE AND
ADJUSTMENT SERVICES; PROVIDING FOR
CODIFICATION; PROVIDING FOR CONFLICTS; PROVIDING
FOR SEVERABILITY; AND PROVIDING FORAN EFFECTIVE
DATE.
9 WHEREAS, Chapter2, "Administration", Article Vill "Risk Management Program" of
the City Code authorizes the City to be self -insured for various types of claims; and
WHEREAS, significant changes have not been made to this Article since 1975; and
WHEREAS, at various times since the inception of the Risk Management program,
the City has contracted with the Florida Municipal Insurance Trust (FMIT), a self-insurance
pool made up of municipalities within Florida, and other vendors for insurance coverages,
as well as opting to self -insure for a period of time; and
WHEREAS, the City has contracted out most of its insurance coverages during the
last decade, and no longer maintains a self-insurance status; and
WHEREAS, changes should be made to this Article to reflect the current practices of
CODING: Words in Gtrk thFG6g4 type are deletions from existing law;
0 Words in underscored type are additions.
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 — February 1, 2001
Revision # 2 — February 26, 2001
Page 2
the Risk Management program; and
WHEREAS, the City Manager, Assistant City Manager, and Interim Risk Manager
recommend that Chapter 2, "Administration", Article VIII "Risk Management Program" of
the City Code be amended; and
WHEREAS, the City Commission of the City of Tamarac has deemed it to be in the
best interest of the citizens and residents of the City of Tamarac to amend Chapter 2
"Administration", Article VIII "Risk Management Program" of the City Code of Ordinances to
provide for the operation of the Risk Management program when the City elects to
purchase outside insurance coverage and adjustment services. 0
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA:
SECTION 1: That the foregoing "WHEREAS" clauses are hereby ratified and
confirmed as being true and correct and are hereby made a specific part of the Ordinance
upon adoption hereof.
SECTION 2 : Chapter 2 "Administration", Article VIII "Risk Management Program" of the
City's Code of Ordinances is hereby amended to read as follows :
CODING: Words in StF Gk through type are deletions from existing law;
Words in underscored type are additions.
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 -- February 1, 2001
Revision # 2 — February 26, 2001
Page 3
ARTICLE VIII. RISK MANAGEMENT PROGRAM
DIVISION 1. GENERALLY
Sec.2-341. Definitions.
The following words, terms and phrases, when used in this article, shall have the
meanings ascribed to them in this section, except where the context clearly indicates a
different meaning:
Administrative costs means all expenses of the program which are not directly attributable
to the investigation, settlement and disposition of particular claims, occurrences or
incidents.
Claim expense means a cost that is clearly identifiable as having arisen out of or in
connection with a particular claim, occurrence or incident, including, without limitation,
attorney's fees, court costs, private investigation fees, expert witness fees, autopsies,
medical examinations and adjusters' charges and expenses.
Excess loss means that portion of loss, including claim and investigating expense, which
exceeds the loss threshold for any one (1) claim, occurrence or incident.
Excess loss threshold means the same as the retained risk maximum.
Incurred loss means the estimated future total anticipated cost or settlement value of
each claim or cause of action arising from any incident, accident or occurrence and for
which coverage is provided together with all reasonable foreseeable costs of investigation,
adjustment, settlement or liquidation.
Loss means a monetary liability resulting from the occurrence of a contingency insured
against under the coverages provided by this article, and includes a claim, a settlement, a
final judgment and an authorization by the legislature to pay a claim.
Loss deficit means the excess of aggregate losses and claim expenses over the
CODING: Words in 6tFUGk thFoug4 type are deletions from existing law;
0 Words in underscored type are additions.
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 — February 1, 2001
Revision # 2 — February 26, 2001
Page 4
participant's pure loss provision for the fiscal year involved.
Loss provision means a participant's annual contribution to the program for the
administrative costs of the program and for the kinds and classes or risks transferred to the
self-insurance fund by the participant.
Participant means the city, considered as a single unit.
Program means the risk management programs established by this article.
Pure loss provision means the excess of loss provision over the administrative costs of
the program.
VISION 2. SELF-INSURANCE
Sec. 2-342. Program created; coverages provided.
(a) The city is hereby authorized and empowered to be a self -insurer as to the following
types of claims against the City of Tamarac:
(1) All claims for workers compensation pursuant to the Florida Workers
Compensation Law.
(2) Tort or liability claims for all risks for which commercial insurance coverage has
not been purchased.
(b) The city manager or des.. ignee shall appoint a d+rec of of be responsible for the self-
insurance program, subject to the following:
(1) The d+reetef city manager or designee shall have overall responsibility for the
processing, adjustment, and in concert with the Gity manager and city attorney,
subject to the limitations expressed in this agile division, the settlement of
claims.
(2) Independent claims, adjustment or administration services may be utilized.
Each independent claims adjustment or administration service shall be
assigned the duties and responsibilities, not inconsistent with this artiste
division, as may be deemed by the dlreEtor city manager or designee to be in
CODING: Words in StFUGk ffirGuo type are deletions from existing law; is
Words in underscored type are additions.
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 — February 1, 2001
Revision # 2 — February 26, 2001
Page 5
the best interest of the city in establishing the most expeditious method of
processing claims.
(3) Upon the concurrence of the d#esto� city manager and the city attorney in a
recommendation that a claim be settled, issuance of checks in settlement of
claims may be authorized as follows: For settlement in an amount not more
than twenty-five thousand dollars 25 000 ,
the dffiFeGtr.r may direct the ic.---..-- of rhethe city may issue a check in
the amount of the settlement. NG Glaim may be settled The City may not issue
a check in an amount exceeding ten-thG-usand dollarstwenty-five
thousand dollars ($25,000) until the city sounsil commission approves and
authorizes the settlement. For all settled claims in an amount less than
twenty-five thousand dollars 25 000 the City Manager shall provide
notification to the City Commission prior to the City issuing a check.
(c) All tort and liability claims resulting in litigation shall be referred to the city attorney
immediately upon service of the summons and complaint. Based upon the nature of
the liability, the complexity of the litigation, and other factors that the attorney may
deem it necessary to consider, the attorney shall make a determination either to
represent the city in such litigation, or to refer same to counsel other than the city
attorney.
(d) Whenever a workers compensation claim requires representation of the city by legal
counsel, the d+recto matter shall be referred the matte to an attorney who
specializes in the defense of workers compensation claims. Selection of an attorney
shall be made the city attorney.
(e) This article shall not be construed to increase or enlarge the liability of the city in any
manner, including without limitation expanding the parameters of potential liability
established in F.S. chapter 440 and F.S. section 768.28.
Sec. 2-343. Scope of coverage.
The risk management program, within the risks covered by section 2-342, shall provide
coverage to the dollar maximums set forth in this article to all officers and employees of the
city while:
CODING: Words in 6tF Gk througI4 type are deletions from existing law;
0 Words in underscored type are additions.
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 — February 1, 2001
Revision # 2 — February 26, 2001
Page 6
(1) Acting within the scope of their duties; and
(2) Not acting in a willful and wanton manner; as well as providing coverage for
covered property damage or property loss. All departments, divisions, elected
or commission -appointed boards, offices and other organizational units of the
city are included in this coverage, unless specifically excluded by this article, or
by regulations promulgated pursuant hereto. Not covered are independent
contractors or consultants, or third pares employees acting „as an„agent of the
cam.
Sec. 2-345. Self-insurance fund.
There is may be created a self-insurance fund, permanent funds which shall be a
continuing appropriation notwithstanding fiscal years, to be used to fund the costs and
expenses of the self-insurance activities of the city as provided in this article. There If a
self-insurance fund is created there shall be paid into or retained in this fund the
following:
(1) The annual loss provision required to be contributed by the city;
(2) Earnings on investments as provided in section 2-347; and
(3) Such other sums as may be authorized or required by this article.
Sec. 2-346. Expenses, costs to be paid from funds.
The following costs and expenses, and no others, shall be paid from the self-insurance
funds, in the manner hereafter provided:
(1) The direGtnr shall pay ^Claims for damages or other liability arising out of the
coverages provided by this article (but not exceeding the maximum amount set
forth in F.S. chapter 440 and F.S. section 768.28), final judgments against the
CODING: Words in str, Gk thFo gh type are deletions from existing law;
Words in underscored type are additions. 0
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 - February 1, 2001
Revision # 2 - February 26, 2001
Page 7
participants in the program founded on a claim for damages or other liability
arising out of the coverages provided by the article (but not exceeding the
maximum amount set forth in F.S. chapter 440 and F.S. section 768.28), as.
t#e damages or other liability authorized by law or by the legislature to be paid
by the city arising out of the losses covered by this article. If the city receives a
refund, reduction or reimbursement of such claim from or on behalf of any
person, the amount so refunded, reduced or reimbursed, shall be paid into or
credited to the funds.
(2) Tlln'n A;ran4nr mov_r»�i he 6Costs involved in or related to the hiring and use by
the city of insurance consultants, third -party administrators, attorneys, loss -
control specialists, or any necessary outside services in connection with self-
insurance activities.
(3) T#e4,ra^+„r �-a p remiums that maybe
charged for excess coverage or various levels of reinsurance., er coinsurance
or other insurance covers_ ges as may be determined necessary to protect the
interests of the city.
Sec. 2-347. Investments; earnings to remain in fund.
Investment of the funds in the self-insurance fund is authorized to be made by the city
manager, provided that the city manager shall make provision for the prompt payment of
liquidated claims, settlements and final judgments from the liability reserve and shall invest
the funds therein accordingly. All earnings on investments of the self-insurance fund shall
be a part of the operating fund of this self-insurance fund and shall be used for the
purposes permitted or operating fund monies in this article.
Sec. 2-348. Accounts and records.
Within the self-insurance fund there shall be maintained such accounts and records as
will provide a determination of the assets and liabilities together with historical loss data
and other information necessary for the accurate and proper development of such
operating statements.
There are established On the self ;nsuraPGefund tw- 11
CODING: Words in stFUGk thFough type are deletions from existing law;
0 Words in underscored type are additions.
No Text
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 — February 1, 2001
Revision # 2 — February 26, 2001
Page 9
Sec. 2-351. Purchases of excess insurance and outside services.
The direEto city manager or designee, with the approval of the seUnsil commission, is
authorized to purchase specific excess insurance and aggregate excess insurance as
deemed necessary to provide the insurance coverages authorized by this article. The
direEtO city manager or designee, with the approval of GOunG+I commission, is authorized to
purchase such risk management services and other outside services as may be required.
If such services are purchased, the use of such services shall be covered under division 3
CODING: Words in StF Gk thFOUgh type are deletions from existing law;
9 Words in underscored type are additions.
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 — February 1, 2001
Revision # 2 — February 26, 2001
Page 10
of this article.
Sec.2-352. Transfers.
No monies shall be transferred into or out of the self-insurance funds except as provided
in this article. The self-insurance funds are declared to be a nondivisional and
nondepartmental budgeted reserve fund, and the rl;r�.s transfer shall extend to the self-
insurance funds only to the extent necessary to administer this article and the risk
management program herein established.
Sec. 2-353. Additional risks.
The dwreEter city manager or designee, based on a skull !! review of the program
and the safety and loss prevention activities and histories of the city, and its enterprise
funds, and may recommend to the city coil commission that risks be assumed by the
self-insurance fund in addition to the risks covered by section 2-342. °Ry additieRE; tO the
111
-o - - - -
-
- - -
-- --=- -= ----==---'-- C M e-
CODING: Words in strus4i t#reagh type are deletions from existing law;
Words in underscored type are additions. 0
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 — February 1, 2001
Revision # 2 — February 26, 2001
Page 11
DIVISION 3. PURCHASE OF OUTSIDE COVERAGE OR ADMINISTRATION
SERVICES
Sec. 2-356. Purchase of outside services.
The city is hereby authorized and empowered to purchase outside services for the
ur oses of independent claims adjustment or administration services for all claim
types mentioned in section 2-342 a as an alternative to maintaining a self-insurance
program as described within this article.
Sec. 2-357. Program created; coverages provided.
La) The city manager or designee is responsible for the risk management program
created herein, subject to the following:
1 The city manager or designee shall serve as the cit 's liaison for the services
purchased according to section 2-356 and shall have overall responsibility for
the processing, adjustment and in concert with the city attorney, subject to the
limitations expressed in this article the settlement of claims.
2) Each independent claims adiustment or administration service shall be
assigned the duties and responsibilities, not inconsistent with this article as
may be deemed by the city manager or designee to be in the best interest of
the city in establishing the most expeditious method of processing claims. The
city manager shall not approve the settlement of a claim by an independent
claims adiustment or administration service organization until action is taken
according to section 2-357 a 3 .
CODING: Words in str Gk through type are deletions from existing law;
0 Words in underscored type are additions.
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 — February 1, 2001
Revision # 2 — February 26, 2001
Page 12
(3) Upon the concurrence of the city _manager and, the city attorney in a
recommendation that a claim be settled issuance of checks in settlement of
claims may be authorized as follows: For settlement in an amount not more
than twenty-five thousand dollars 25 000 the city may issue a check in the
amount of the settlement after providing notification to the City Commission.
The City may not issue a check in an amount exceed in twent -five thousand
dollars (25,000)until the city commission approves and authorizes the
settlement.
(4) If independent_ claims adjustment or administration services are purchased
for any of the claim types specified in section 2-342(a) and coverages are in
such form that the provider is responsible for settlement for such claims,
regardless of deductible the provisions of section 2-357 a 3 will not apply.
The city manager_ shall provide notification to the city commission of all
settlement amounts, prior to the City issuing a check.
(b) This article shall not be construed to increase or enlarge the liability of the city in any
manner, including without limitation expanding the parameters of potential liability
established in F.S._ chapter 440 and F.S. section 768.28.
Sec. 2-3.58. Scope of coverage.
The risk management program, within the risks covered by section 2-357, shall provide
coverage to the dollar maximums set forth in this article to all officers and employees of the
cites
(j) Acting within the scope of their duties; and
(2� Not acting in_a willful and wanton manner; as well as providing coverage far
covered property damage or roperty loss. All departments, divisions, elected
or commission -appointed boards, offices and other organizational units of the
city are included in this coverage, unless specifically excluded by this article,
or by regulations promulgated pursuant hereto. Not covered are independent
contractors or consultants, or third party employees acting as an agent of the
cam.
CODING: Words in struGk through type are deletions from existing law;
Words in underscored type are additions. 0
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 — February 1, 2001
Revision # 2 — February 26, 2001
Page 13
Sec.2-359. Records.
Within the risk management program there shall be maintained such records as will
provide -a determination of the assets and liabilities together with historical loss data.
Sec. 2-360. Additional risks.
The city manager or designee, upon review of the program and the safety and loss
prevention activities and histories of the city, and its enterprise funds, and may recommend
to the city commission that risks be assumed in addition to the risks covered by section 2-
342a.
SECTION 3: Codification: It is the intention of the City Commission and it is hereby
0 ordained that the provisions of this Ordinance shall become and be made a part of the
Code of Ordinances of the City of Tamarac, Florida, and that the Sections of this
Ordinance may be renumbered or relettered and the word "Ordinance" may be changed to
"Section", "Article" or such other word or phrase in order to accomplish such intention.
SECTION 4+- �I fs `s M' arms or parts of Ordinances in conflict herewith
are hereby repealed to the extent of such conflict.
3.2 T« to
lit_Z t T+ iQ
SECTION 5, cov��A41it?F"WAj4p Aion of this Ordinance or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect other
CODING: Words in etFUGk thFough type are deletions from existing law;
0 Words in underscored type are additions.
Temp. Ord. # 1920 - January 16, 2001
Revision # 1 — February 1, 2001
Revision # 2 — February 26, 2001
Page 14
provisions or applications of this Ordinance that can be given affect without the invalid
provision or application, and to this end the provisions of this Ordinance are declared to be
severable.
SECTION 6: Effective date: This Ordinance shall become effective
immediately upon its passage and adoption.
PASSED, FIRST READING this l7 day of
PASSED, SECOND READING this day of
ATTEST:
�_..MWPWW
'— € CERTIFY that
'raved this
!: NC s r
MI HELL S.
CITY ATTORNEY /
RECORD OF COMMISSION
MAYOR SCHREIBER.
CIST is COMM. PORTNER„.,
DIST 9: COMM. MISHKIN ....
DIET & COMM. XXTANOF.
OW * VIM ROBERTS
2001.
2001.
•
CODING: Words in StF Gk t"rO"gh type are deletions from existing law; r�
Words in underscored type are additions.