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HomeMy WebLinkAboutCity of Tamarac Ordinance O-1987-0571 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 8 19 20 21 22 23 24 2`. 21 2 2 TemP. Ord. #1363 CITY OF TAMARAC, ORIDA ORDINANCE NO. 0-87- 7 AN ORDINANCE ESTABLISHING A SELF-INSURANCE COMPENSATION AND MOTOR FOR WORKER'S PROGRAM IN THE CITY OF VEHICLE PHYSICAL DAMAGE PROVIDING FOR TAMARAC; PROVIDING COVERAGES% FUNDING AND OPERATION DIFICATION; PROOF SAID VIDING PROVIDING FOR CO FOR SEVERABILITY OF REPEALER; PROVIDING AND PROVIDING AN INVALID PROVISIONS: EFFECTIVE DATE. IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BE TAMARAC, FLORIDA: There SECTION 1 PROGRAM CREATED; COVERAGES PROVIDE hereby authorized and created a risk management program is h Y is for the City. The purpose of this risk management Program e uniform and centralized self-insurance for (1) to prov�.d om ensation# and (2) motor vehicle collision and Workers' C P liability upset with dollar maximum the maximum amount °f from P be amended under Section 768.28, F.S., as the same may time to time. Only coverages set forth in the preceding are to be covered by this Ordinance and self sentence insurance is provided only for those coverages. This ordinance shall not be construed to increase or the City in any manner. including enlarge the liability of vtential without limitation, expanding the parameters of P liability established in Sections 440 and 768.28, Florida Statutes. SECTION 2 SCOPE OF COVERAGE - The Risk Management SE rov ide � the risks covered by Section 1, shall P Program, within to the dollar maximums set forth in this ordinance coverage 8 to all officers and employees to ees of the City while: 9 (1) Acting within the scope of their duties, and 0 (2) Not acting in a willful and wanton manner, damage or 1 coverage for covered property as well as providing boards, offices 32 property loss. All departments, divisions, 33 other organizational units of the City are included in and by this 34 this coverage, unless specifically excluded 35 ordinance, or by regulations promulgated pursuant thereto. independent contractors or consultants. Not covered are TEMP- ORD. #1363 SECTION 3 DIRECTOR TO IMPLEMENT AND CONSOLIDATE - The Director shall be responsible for implementation administration of this and ordinance and the risk management Program established hereby. The Director is authorized to Promulgate rules for the proper management and maint the Program. enance of SECTION 4 DEFINITIONS - In this ordinance, unless Context Otherwise the requires: (a) `aiDMINISTRATIVE COSTS include all expenses Of the Program which are not directly attributable to the investigation, settlement and disposition Particular claims of . occurrences or incidents. (b) CLAIM EXPENSE means a cost that is clearly identifiable as having arisen out of or connection with in a Particular claim, occurrence or incident, including, without limitation, attorney fees, court cs costs, private investigation expert fees, witness fees, autopsies, P r medical examinations and adjusters charges and expenses. (c) DIRECTOR means the Risk Manager. (d) EXCESS LOSS means that portion of loss � including claim and investigatin g expense, which exceeds the loss threshold for any one claim, occurrence or incident. (e) EXCESS LOSS THRESHOLD is the same as the risk maximum. retained (f) INCURRED LOSS means the estimated future anticipated cost or settlement value total Of each claim or cause of action arising from any incident, accident or occurrence and for which coverage Provided together is Nether with all reasonably foreseeable costs of investigation adjustment, settlement or liquidation. (g) LOSS means a monetary liability reSulti occurrence of a ng from the contingency insured against under the coverages provided by this ordinance and -2- gyp. OM. #1363 1 2 3 6 7 8 9 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 2i 21 2! 3 i includes a claim, a settlement, a final judgment, and an authorization by the Legislature to pay a claim. (h) LOSS DEFICIT means the excess of aggregate losses and claim expenses over the participant's pure loss provision for the fiscal year involved. (i) 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. e City, considered as a single (j) PARTICIPANT means th unit. -_ "nnnapment program (k) PROGRAM means LIEiG established by this ordinance. (1) PURE LOSS PROVISION means the excess of loss provision over the administrative costs of the program. SELF-INSURANCE FUND - There is hereby SECTION 5 Funds, permanent funds which shall be created Self -Insurance tanding fiscal years, to a continuing appropriation notwiths be used to fund the costs and expenses of the self-insurance activities of the City as provided in this ordinance. There shall be paid into or retained in this fund: (a) the annual loss provision required to be contributed by the City; and (b) earnings on investments as provided in Section 7; and (c) such other sums as may be authorized or required by I this ordinance. SECTION 6 EXPENSES AND COSTS TO BE PAID FROM FUND - Tnses, and no others, shall be The following costs and expe 1 paid from the Self -Insurance Funds, in the manner hereafter 2 provided: 3 (a) The Director shall pay claims for damages or other 14 liability arising out of the coverages provided by 15 this ordinance (but not exceeding the maximum -3- Tom. ORD. #1363 1 amount set forth in Sections 440 and 768.28, F.S., as the same may be amended from time to time), 2 3 final Judgments against the participants in the Program founded on a claim for damages or other liability arising out of the coverages 9 provided by � this ordinance (but not exceeding the maximum amount set forth in Sections 440 and 768.28, F.S., as the same may be amended from time to time for each judgment Creditor), and claims for 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 ordinance. In the event that 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. !b) The Director may pay the costs involved in or related to the hiring and use by the City of insurance consultants, Third -party Administrators, attornies, loss- control specialists, or any necessary outside services in connection with self insurance activities. (c) The Director shall be authorized to pay from the Fund premiums that may be charged for excess Coverage or various levels of re- insurance or co insurance as may be determined necessary to protect the interests of the City. SECTION 7 s INVESTMENTS; EARNINGS ON INVESTMENTS 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 Q0 TEND. ORD. #1363 1 2 3 4 22 23 24 25 26 27 28 29 -40 1 32 33 34 35 Fund of this Self -Insurance Fund and shall be used for the purposes permitted or Operating Fund monies in this ordinance. SECTION 8 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. SECTION 9 SELF-INSURANCE FUND; OPERATING FUND - There are established in the Self -Insurance Fund two funds, an Operating Fund and a Reserve Fund. The Reserve Fund shall be administered as provided in Section 10. The Operating Fund shall be the operating and administrative fund, from which all costs and expenses of the program shall be paid except as specifically provided in Section 10. All monies received from whatever source shall be credited to the Operating fund and shall remain therein until expended for administrative costs, transferred to the Reserve Fund pursuant to subsection 10(a)(1), or returned to a participant as provided in sub- section 10 (a) (2) . SECTION 10 : SELF-INSURANCE FUND; RESERVE FUND (a) SEPARATE ACCOUNTS. There shall be created in the Self -Insurance Fund one Reserve Fund with two accounts, which shall be maintained separately on the records of the Reserve Fund, as follows: (1) There shall be an incurred loss reserve account composed of amounts transferred from the Operating fund as specific case loss re- serves. Upon notice of an incident, accident, or occurrence which may give rise to a lawful claim or cause of action against a participant for a risk covered under the program, or upon legal notice notice, demand, suit or other process in furtherance of such a claim or cause of action, a reasonable and prudent estimate of the ultimate cost or settlement value of such claim or cause of action. Such -5- TEMP. ORD. # 136 3 1 2 3 4 5 J 6 7 8 9 10 11 12 13 14 15 16 17 C0 '19 20 21 22 23 a'■ 25 26 27 28 29 30 ..1 32 33 34 35 estimate, when approved by the Director or his/her designee, shall be deemed to be an incurred loss and the amount thereof shall be transferred from the Operating Fund. Such reserve may be increased from time to time as may be required by prudent judgment or as may be indicated by claim development, but it may not be decreased, reduced or released except upon final liquidation or disposition of the specific claim or cause of action. No deduction shall be made from any amounts paid into the liability reserve for operation and administration of the program. (2) There shall be a catastrophe contingency reserve account , composed of an amount computed as follows: At the end of each fiscal year, the Director shall ascertain the excess of the City's pure loss provision over its aggregate loss retention and loss sharing. Such excess shall be paid into the catastrophe contingency reserve account until such reserve is equal to fifty percent of the loss provision for that fiscal year; thereafter, the remaining excess shall be used to reduce its loss provision for the next fiscal year. No deduction shall be made from any amounts paid into the catastrophe contingency reserve account for operation and administration of the program. (b) ADMINISTRATION, (1) The incurred loss reserve account shall be used only to pay liquidated claims, settlements and final judgments arising out of the coverages Provided by this ordinance, and for no other purpose. The funds in the incurred loss reserve account are not available to pay operating or administrative expenses of the program and are impressed with a trust in favor of the claimants, TEMP. ORD. #1363 1 2 3 parties to the settlement or judgment creditor, as the case may be, until the same is paid. Whenever a claim, settlement or final judgment is paid out of the incurred loss reserve account, an appropriate receipt, release or satisfaction shall be obtained; thereupon, any funds held in the incurred loss reserved that were originally transferred into the reserve but were not required to be paid out as a result of the liquidation of the claim or by the settlement or final judgment, shall be discharged and released from the trust and such funds shall be transferred out of the incurred loss reserve account to the Operating Fund of the Selflnsurance Fund. Notwithstanding the impressment of this trust, nothing in this paragraph shall preclude the investment of funds in the incurred loss reserve account as provided in Section 7 with earnings on investments to be a part of the Operating Fund as set forth in Section 7. Within the incurred loss reserve account, the Director shall maintain separate records for each participant. (2) The catastrophe contingency reserve account shall be used to pay catastrophic losses arising out of the coverages provided by this ordinance or added by the Director, and for no other purpose. The funds in the catastrophe contingency reserve account are not available to pay operating or administrative expenses of the program. SECTION 11 : PURCHASES OF REINSURANCE AND SERVICES - The Director, with the approval of the Council, is authorized to purchase specific excess insurance and aggregate excess insurance as deemed necessary to provide the insurance coverages authorized by this ordinance. The Director, with the approval of Council, is authorized to purchase such risk management services and other outside services as may be required. -7- 1 2 3 4 5 6 i 7 8 9 10 11 12 13 14 15 16 17 '8 19 20 21 22 23 24 25 26 27 28 29 30 �1 32 33 34 35 SECTION 12 : CERTAIN TRANSFERS PROHIBITED - No monies shall be transferred into or out of the Self -Insurance Funds except as provided in this ordinance. The Self -Insurance Funds are hereby declared to be a nondivisional and nondepartmental budgeted Reserve Fund, and the Director's transfer power shall extend to the Self -Insurance Funds only to the extent necessary to administer this ordinance and the risk management program herein established. SECTION 13 ADDITIONAL RISKS - The Director shall annually review the program and the safety and loss prevention activities and histories of the City, and its enterprise funds, and may recommend to the City Council that risks be assumed by the Self -Insurance Fund in addition to the risks covered by Section 1. Any additions to the coverage to be provided shall be by ordinance enacted by the City Council. SECTION 14 : REPORTS ON PROGRAM -- (a) ANNUAL REPORT. The Director shall, by March 1 of each year, submit to the Council a formal report covering the prior fiscal year which shall include: (1) Complete underwriting information as to the nature of the risks accepted for self-insurance and those risks that are transferred to the insurance market; (2) The funds appropriated or contributed to the Self - Insurance Funds and premiums paid for insurance through the market; (3) The costs of administration and operation of the risk management program; (4) The method and cost of handling inspection and engineering of risks; (5) The cost of risk management and other services purchased; and (6) The cost of umbrella, reinsurance and co insurance coverages as have been purchased; and (7) any assessments made or loss provisions returned by the Director during the reporting period; and V 1 TEMP. CEO. #1363 11 2 3 4 5 6 7 8' 9 10 11 12 13 14 25 26 27 28 (8) Budget based on losses predicted for the next fiscal year. SECTION 15 : Prior to the enactment of this Ordinance, the City has self -insured for motor vehicle collision. All monies allocated, by the City for said self insurance shall be applied to the Operating Fund or Reserve Fund for self insurance as applicable. SECTION 16 : CODIFICATION -- Specific authority is hereby granted to codify this ordinance. SECTION 17 REPEALER - All ordinances or parts or ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 18 SEVERABILITY - Should any section or provision of this Ordinance or any portion thereof, or any paragraph, sentence or work be declared by a Court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or any part hereof, other than the part declared to be invalid. SECTION 19 : EFFECTIVE DATE - This ordinance shall become effective immediately upon its final passage, however, coverage for motor vehicle liability shall not commence until a formal recommendation therefore has been made by the director and said recommendation has been accepted by the Council. PASSED FIRST READING this a23 day of 1987. PASSED SECOND READING this day of .01987. - �J� , " �//', 4­1 � � I z � Bernard Hart MAYOR ST: 29 3 0 1 TCaCCr l E. Barbuto LERK 32 Y I HEREBY CERTIFY that I have 33a proved this ORDINANCE as t form. 34 35 RICHARD L. DOODY CITY ATTORNEY MAYOR: HART DIST. 1: C/M ROHR DIST. 2: C/M STEIZER"! DIST. 3: C/M HOFFMAN DIS'T. 4: V/M STEIN 9/'X31Y7 Q= 5811 NORTHWEST 88TH AVENUE 0 TAMARAC, FLORIDA 33321 TELEPHONE (305) 722.5900 MAIL REPLY TO! P.O. BOX 25010 TAMARAC, FLORIDA 33320 October 26, 1987 Robert Laslie MUNICIPAL CODE CORPORATION P.O. Box 2235 Tallahassee, Florida 32304 Attention: Enclosed please find your copy from the CITY OF TAMARAC, the following item(s) for your files: ORDINANCE NO'S: 0-87-52, 0-87-53, 0-87-54, 0-87-55, 0-87-56, 0-87-57 If you have any questions, please do not hesitate to contact this office. very truly yours, CITY OF TAMARAC Pat LaBello City Clerk's Office Enc. ( 0 AN EOUAL OPPORTUNITY EMPLOYER POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS 5811 NORTHWEST 88TH AVENUE 0 TAMARAC, FLORIDA 33321 TELEPHONE (305) 722-5900 MAIL REPLY TO: P.O. BOX 25010 TAMARAC. FLORIDA 33320 October 26, 1987 William Markham COUNTY TAX APPRAISER 115 South Andrews Avenue Fort Lauderdale, Florida 33301 Attention: Enclosed please find your copy from the CITY OF TAMARAC, the following item(s) for your files: ORDINANCE NO'S: 0-87-52, 0-87-53, 0-87-54, 0-87-55, 0-87-56, 0-87-57 If you have any questions, please do not hesitate to contact this office. very truly yours, CITY OF AMARAC Pat LaBello City Clerk's Office Enc. AN EQUAL OPPORTUNITY EMPLOYER POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS 5811 NORTHWEST 88TH AVENUE & TAMARAC, FLORIDA 33321 TELEPHONE (305) 722-5900 MAIL REPLY TO P.O. BOX 25010 TAMARAC, FLORIDA 33320 October 26, 1987 Robert Ussery MUNICIPAL CODE CORPORATION P.O. Box 2235 Tallahassee, Florida 32304 Attention: Enclosed please find your copy from the CITY OF TAMARAC, the following item(s) for your files: ORDINANCE NO'S: 0-87-52, 0-87-53, 0-87-54, 0-87-55, 0-87-56, 0-87--57 If you have any questions, please do not hesitate to contact this office. Very truly yours, CITY OF TAMARAC Pat LaBello City Clerk's Office Enc. (�+ AN EQUAL OPPORTUNITY EMPLOYER POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS 0 7 ITEM # / REF NOTION TO ADOPT Temp, Ord. #1363 on second reading to establish a Bel - nsurance program for City workers' compensation and motor vehicle physical damage. DATE 101q lg7 TAPE SIDE # �- 1 C� P VOTE: DISTRICT 4 - V/M STEIN DISTRICT 3 - C/M HOFFMAN DISTRICT 2 - C/M STELZER DISTRICT 1 - C/M ROHR _ MAYOR HART MOTION BY: SECONDED BY: PRESENTED BY: ACTION REQUESTED: MAJOR SPEAKERS/PERTINENT DISCUSSION: LG C I T Y O F T A M A R A MEMORANDUM C INTEROFFICE ' C/A NO. 8710--8409 C . TO: Carol E. Barbuto, City Clerk FROM: Richard L. Doody, City Attorney SUBJECT: Temp. Ord. 1363; Establishing a Self -Insurance Program DATE: October 15, 1987 As per Council's approval of the above cited Ordinance on second reading at the 10/14/87 Council Meeting, attached please find the revised original of said Ordinance. Richard L. Dood City Attorney RLD/rms Enclosure cc: Mayor Hart and Members of Council John P. Kelly, City Manager Judith Deutsch, Risk Manager Kenneth Burroughs, Finance Director ITEM #90 REF.MTIOU To An PT TgMy, d on first reading to establish a self-insurance program for City workers' compensation and motor vehicle physical damage.' DATE 0L3 87 - VOTE: DISTRICT 3 - C/M HOFFM DISTRICT 4 - V/M STEIN DISTRICT I - C/M ROHR DISTRICT 2 — C/M STELZ MAYOR HART MOTION BY: SECONDED BY: TAPE SIDE # _f � -D PRESENTED BY: ACTION REQUESTED: MAJOR SPEAKERS/PERTINENT DISCUSSION: PUBLIC HEARING �r CITY COUNCIL OF TAMARAC, FLORIDA The following Ordinance has passed first reading by the City Council of the City of Tamarac, Florida: AN ORDINANCE ESTABLISHING A SELF --INSURANCE PROGRAM FOR WORKER'S COMPENSATION AND MOTOR VEHICLE PHYSICAL DAMAGE IN THE CITY OF TAMARAC; PROVIDING COVERAGES; PROVIDING FOR FUNDING AND OPERATION OF SAID PROGRAM; PROVIDING FOR CODIFICATION; PROVIDING REPEALER; PROVIDING FOR SEVERABILITY OF INVALID PROVISIONS; AND PROVIDING AN EFFECTIVE DATE. TEMP. ORD. #1363 The second reading and public hearing of this Ordinance will be held during a Regular City Council meeting on Wednesday, October 14, 1987, at or after 7:30 P.M. and will be considered by the City Council in the order as it appears on the agenda. The Regular Meeting of the City Council will be held at the City Hall, 5811 N.W. 88th Avenue, Tamarac, Florida 33321. Copies of this proposed Ordinance are available for viewing and purchase at the office of the City Clerk. Interested parties may appear to be heard with respect to this proposed Ordinance in accordance with Florida Statute #166.041. Pursuant to Section 286.0105, Florida Statutes If a person decides to appeal any decision made by the ci'y Cbuncii with respect to any matter considered at such meeting; he<ai t& he will need a record & the proceedings and fcr Pa . he may need to ensure that a verbatim record indu- — Ma taistimony and evidence upon which the appeal is to be tease CAROL E. BARBUTO CITY CLERK Publish: Fort Lauderdale News/Sun Sentinel Saturday, October 3, 1987 7-r^0 0eP 1?- /-5 (; 3 AN ORDINANCE ESTABLISHING A SELF-INSURANCE PROGRAM FOR WORKER'S COMPENSATION AND MOTOR VEHICLE PHYSICAL DAMAGE IN THE CITY OF TAMARAC; PROVIDING COVERAGES; PROVIDING FOR FUNDING AND OPERATION OF SAID PROGRAM; PROVIDING FOR CODIFI- CATION; PROVIDING REPEALER; PROVIDING FOR SEVERABILITY OF INVALID PROVISIONS; AND PROVIDING AN EFFECTIVE DATE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: PROGRAM CREATED; COVERAGES PROVIDED There Is hereby authorized and created a risk management program for the City. The purpose of this risk management program is to provide uniform and centralized self -Insurance for (1) Workers' Compensation, and (2) motor vehicle collision and upset with dollar maximum the maximum amount of liability under Section 768.28, F.S., as the same may be amended from time to time. Only coverages set forth In the preceding sentence are to be covered by this Ordinance and self -Insurance is provided only for those coverages. This ordinance 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 Sections 440 and 768.28, Florida Statutes. SECTION 2: SCOPE OF COVERAGE The risk management program, within the risks covered by Section 1, shall provide coverage to the dollar maximums set forth in this ordinance to all officers and employees of the City while: (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, boards, offices and other organizational units of the City are Included in this coverage, unless specifically excluded by this ordinance, or by regulations promulgated Pursuant thereto. Not covered are Independent contractors or consultants. SECTION 3: DIRECTOR TO IMPLEMENT AND CONSOLIDATE The Director shall be responsible for Implementation and administration of this ordinance and the risk management program established hereby. The Director is authorized to promulgate rules for the proper management and maintenance of the program. SECTION 4: DEFINITIONS In this ordinance, unless the context otherwise requires: -1- (a) ADMINISTRATIVE COSTS Include all expenses of the pro- gram which are not directly attributable to the Investigation, settlement and disposition of particular claims, occurrences or Incidents. (b) 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. (c) DIRECTOR means the Risk Manager. (d) EXCESS LOSS means that portion of loss, including claim and Investigating expense, which exceeds the loss threshold for any one claim, occurrence or Incident. (e) EXCESS LOSS THRESHOLD Is the same as the retained risk maximum. (f) 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 reasonably foreseeable costs of Investigation, adjustment, settlement or Ilquidat.lon. (g) LOSS means a monetary liability resulting from the occurrence of a contingency Insured against under the coverages provided by this ordinance, and Includes a claim, a settlement, a final Judgment, and an authorization by the Legislature to pay a claim. (h) LOSS DEFICIT means the excess of aggregate losses and claim expenses over the participant's pure loss provision for the fiscal year Involved. (1) 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. (j) PARTICIPANT means the City, considered as a single unit. (k) PROGRAM means the risk management program established by this ordinance. (1) PURE LOSS PROVISION means the excess of loss provision over the administrative costs of the program. SECTION 5: SELF-INSURANCE FUND -2- There Is hereby created Self -Insurance Funds, 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 ordinance. There shall be paid into or retained in this fund: (a) the annual loss provision required to be contributed by the City; and (b) earnings on Investments as provided in Section 7; and (c) such other sums as may be authorized or required by this ordinance. SECTION 6: EXPENSES AND 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: (a) The Director shall pay claims for damages or other liability arising out of the coverages provided by this ordinance (but not exceeding the maximum amount set forth in Sections 440 and 768.28, F.S., as the same may be amended from time to time), final Judgments against the participants in the program founded on a claim for damages or other liability arising out of the coverages provided by this ordinance (but not exceeding the maximum amount set forth in Sections 440 and 758.28, F.S., as the same may be amended from time to time for each Judgment creditor), and claims for 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 ordinance. In the event that 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. (b) The Director may pay the costs Involved In or related to the hiring and use by the City of Insurance consultants, Third -Party Administrators, attornles, loss -control specialists, or any necessary outside services in connection with self -Insurance activities. (c) The Director shall be authorized to pay from the Fund pre- miums that may be charged for excess coverage or various levels of re - Insurance or co -Insurance as may be determined necessary to protect the Interests of the City. SECTION 7: INVESTMENTS; EARNINGS ON INVESTMENTS 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 WE 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 ordinance. SECTION 8: 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. SECTION 9: SELF-INSURANCE FUND: OPERATING FUND There are established In the Self -Insurance Fund two funds, an Operating Fund and a Reserve Fund. The Reserve Fund shall be admi- istered as provided in Section 10. The Operating Fund shall be the operating and administrative fund, from which all costs and expenses of the program shall be paid except as specifically provided in Section 10. All monies received from whatever source shall be credited to the Operating fund and shall remain therein until expended for administrative costs, transferred to the Reserve Fund pursuant to subsection 10(a)(1), or returned to a participant as provided In sub- section 10(a)(2). SECTION 10: SELF-INSURANCE FUND: RESERVE FUND (a) SEPARATE ACCOUNTS. There shall be created In the Self - Insurance Fund one Reserve Fund with two accounts, which shall be maintained separately on the records of the Reserve Fund, as follows: (1) There shall be an Incurred loss reserve account composed of amounts transferred from the Operating fund as specific case loss re- serves. Upon notice of an Incident, accident, or occurrence which may give rise to a lawful claim or cause of action against a participant for a risk covered under the program, or upon legal notice notice, demand, suit or other process In furtherance of such a claim or cause of action, a reasonable and prudent estimate of the ultimate cost or settlement value of such claim or cause of action. Such estimate, when approved by the Director or his/her designee, shall be deemed to be an Incurred loss and the amount thereof shall be transferred from the Operating Fund. Such reserve may be Increased from time to time -4- as may be required by prudent Judgment or as may be indicated by claim development, but It may not be decreased, reduced or released except upon final liquidation or disposition of the specific claim or cause of action. No deduction shall be made from any amounts paid Into the liability reserve for operation and administration of the program. (2) There shall be a catastrophe contingency reserve account , composed of an amount computed as follows: At the end of each fiscal year, the Director shall ascertain the excess of the City's pure loss provision over Its aggregate loss retention and loss sharing. Such excess shall be paid Into the catastrophe contingency reserve account until such reserve is equal to fifty percent of the loss provision for that fiscal year; thereafter, the remaining excess shall be used to reduce Its loss provision for the next fiscal year. No deduction shall be made from any amounts paid Into the catastrophe contingency reserve account for operation and administration of the program. (b) ADMINISTRATION. (1) The Incurred loss reserve account shall be used only to pay liquidated claims, settlements and final Judgments arising out of the coverages provided by this ordinance, and for no other purpose. The funds In the Incurred loss reserve account are not available to pay operating or administrative expenses of the program and are Impressed with a trust In favor of the claimants, parties to the settlement or Judgment creditor, as the case may be, until the same is paid. When- ever a claim, settlement or final Judgment is paid out of the Incurred loss reserve account, an appropriate receipt, release or satisfaction shall be obtained; thereupon, any funds held In the Incurred loss reserved that were originally transferred Into the reserve but were not required to be paid out as a result of the liquidation of the Claim or by the settlement or final Judgment, shall be discharged and released from the trust and such funds shall be transferred out of the Incurred loss reserve account to the Operating Fund of the Self - Insurance Fund. Notwithstanding the Impressment of this trust, nothing in this paragraph shall preclude the Investment of funds In the Incurred loss reserve account as provided In Section 7 with earn- Ings on Investments to be a part of the Operating Fund as set forth In Section 7. Within the Incurred loss reserve account, the Director shall maintain separate records for each participant. (2) The catastrophe contingency reserve account shall be used to -5- pay catastrophic losses arising out of the coverages provided by this ordinance or added by the Director, and for no other purpose. The funds in the catastrophe contingency reserve account are not available to pay operating or administrative expenses of the program. SECTION 11: PURCHASES OF REINSURANCE AND SERVICES The Director, with the approval of the Council, Is authorized to purchase specific excess Insurance and aggregate excess Insurance as deemed necessary to provide the Insurance coverages authorized by this ordinance. The Director, with the approval of Council, Is authorized to purchase such risk management services and other outside services as may be required. SECTION 12: CERTAIN TRANSFERS PROHIBITED No monles shall be transferred Into or out of the Self -Insurance Funds except as provided In this ordinance. The Self -Insurance Funds are hereby declared to be a nondivisional and nondepartmental budgeted Reserve Fund, and the Director's transfer power shall extend to the Self -Insurance Funds only to the extent necessary to administer this ordinance and the risk management program herein established. SECTION 13: ADDITIONAL RISKS The Director shall annually review the program and the safety and loss prevention activities and histories of the City, and Its enter- prise funds, and may recommend to the City Council that risks be as- sumed by the Self -Insurance Fund In addition to the risks covered by Section 1. Any additions to the coverage to be provided shall be by ordinance enacted by the City Council. SECTION 14: REPORTS ON PROGRAM (a) ANNUAL REPORT. The Director shall, by July 1 of each year, submit to the Council annually a formal report which shall Include: (1) complete underwriting information as to the nature of the risks accepted for self -Insurance and those risks that are trans- ferred to the Insurance market; (2) the funds appropriated or contributed to the Self -Insurance Funds and premiums paid for Insurance through the market; (3) the costs of administration and operation of the risk man- agement program; (4) the method and cost of handling inspection and engineering of risks; (5) the cost of risk management and other services purchased; 0� and (6) the cost of umbrella, reinsurance and co -Insurance coverages as have been purchased; and (7) any assessments made or loss provisions returned by the Director during the reporting period; and (8) budget based on losses predicted for the next fiscal year. SECTION 15: Prior to the enactment of this Ordinance, the City has self - Insured for motor vehicle collision. All monies allocated by the City for said self Insurance shall be applied to the General Fund or Re- serve Fund for self Insurance as applicable. SECTION 16: CODIFICATION Specific authority is hereby granted to codify this ordinance. SECTION 17: REPEALER All ordinances or parts or ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 18: SEVERABILITY Should any section or provision of this Ordinance or any portion thereof, or any paragraph, sentence or work be declared by a Court of competent Jurisdiction to be Invalid, such decision shall not affect the validity of the remainder hereof as a whole or any part hereof, other than the part declared to be Invalid. -7- SECTION 19: EFFECTIVE DATE This ordinance shall become effective Immediately upon Its final passage, however, coverage for motor vehicle liability shall not commence until a formal recommendation therefore has been made by the director and said recommendation has been accepted by the Council. PASSED FIRST READING this day of 1987. PASSED SECOND READING this day of .1987. ATTEST: CITY CLERK I HEREBY CERTIFY that I have approved the form and correctness of this ORDINANCE CITY ATTORNEY MAYOR M410 C I T Y O F T A M A R A C INTEROFFICE MEMORANDUM C/A NO. 8710--8408 TO: John P. Kelly, City Manager FROM: Richard L. Doody, City Attorney SUBJECT: Item #27 on Council Agenda; An Ordinance establishing a Self - Insurance Program for City Workers' Compensation and Motor Vehicle Physical Damage DATE: October 14, 1987 Enclosed please find two proposed administrative changes to Temp. Ord. #1363 which concerns the above subject. 1. The Finance Department has requested that Section 14(a) of Temp. Ord. 1363 be amended as follows: (a) ANNUAL REPORT. The Director shall, by J41-f March 1 of each fiscal year, submit to the Council aiffl;ue14-y a formal report covering the prior fiscal vear which shall include: 2. The City Attorney requests that Section 15 be amended so as to make it consistent with the rest of the Ordinance. Section 15 would therefore read as follows: Section 15: Prior to the enactment of this Ordinance, the City has self -insured for motor vehicle collision. All monies allocated by the City for said self insurance shall be applied to the Sen*-rtxl- Operating Fund or Reserve Fund for self insurance as applicable. Please note that the above administrative changes do not effect the title and the Ordinance may be adopted as amended on second reading without re -advertising. Richard L. Doody City Attorney RLD/rms Enclosure cc: Mayor Hart and Members of C uncil Carol E. Barbuto, City Clem Kenneth Burroughs, Finance Director Judith Deutsch, Risk Manager Larry Perretti, Personnel Director FORT LAUDERDALE NEWS/SUN-SENTINEL PASTE COPY Published Daily Fort Lauderdale, Broward County, Florida Boca Raton, Palm Beach County, Florida A-? STATE OF FLORIDA COUNTY OF BROWARD/PALM BEACH Before the undersigned authority personally appeared Barbara Strickland who on oath says that he is Classified Supervisor of the Fort Lauderdale News/Sun-Sentinel, Daily newspapers published in Broward/Palm Beach County, Florida that the attached copy of advertisement, being a Public Hearing h f TEMP. nORD. 1363 at a matter o in the was rmhlisher! in said n---,- ,per : � `hz, issues Of Oct. 3, 198f Court, Affiant further says that the said Fort Lauderdale News/Sun-Sentinel are newspapers published in said Broward/Palm Beach County, Florida, and that the said newspapers have heretofore been continuously published in said Broward/Palm Beach County, Florida, each day, and have been entered as second class matter at the post office in Fort Lauderdale, in said Broward County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant says that he has neither paid nor promised any person, firm or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in said newspapers. Sworn to and subscribed before me �! _ ...... A this ..... 5tb.... day of....QCtO�Prr ;/L�/P; A.D. 1 87,f (SEAL) Notary putlit, St. e `rtonP.'a, �a My cwnmissioa E4',es tdov. 1, 1984 Bnauun It". i­y tI'm-Imt,14060, too, 1!0 j FSA104 PUBLIC HEARING CITY COUNCIL OF TAMARAC, FLORIDA The following Ordinance has passed first reading by the City Council of the City of Tamarac, Florida: AN ORDINANCE ESTABLISHING A SELF-INSURANCE PROGRAM FOR WORKER'S COMPENSATION AND MOTOR VEHICLE PHYSICAL DAMAGE IN THE CITY OF TAMARAC; PROVIDING COVERAGES; PROVIDING FOR FUNDING AND OPERATION OF SAID PROGRAM; PROVIDING FOR CODIFICATION; PROVIDING REPEALER; PROVIDING FOR SEVERABILITY OF INVALID PROVISIONS; AND PROVIDING AN EFFECTIVE DATE. TEMP. ORD. #1363 The second reading and public hearing of this Ordinance will be held during a Regular City Council meeting on Wednesday, October 14, 1987, at or after 7:30 P.M. and will be considered by the City Council in the order as it appears on the agenda. The Regular Meeting of the City Council will be held at the City Hall, 5811 N.W. 88th Avenue, Tamarac, Florida 33321. Copies of this proposed Ordinance are available for viewing and purchase at the office of the City Clerk. Interested parties may appear to be heard with respect to this proposed Ordinance in accordance with Florida Statute #166.041. Pursuant to Section 286.0105. Florida Statutes It a person decides to appeal any decision made by the ci'y Mincii with respect to any matter considered at such meeting; hearing, he will need a record of the proceedings and fir su PO" , he may need to ensure that a verbatim re,-rrd inclu:_ Ma testimony and evidence upon which the appeal is to be basrd CAROL E. BARBUTO CITY CLERK Publish: Fort Lauderdale News/Sun Sentinel Saturday, October 3, 1987 DI STRI BL?I DID LIST o.of Co ies DEPARTMENT OR PERSON RECEIVED BY / a--O/Y7 DATE COUNCIL CITY AMRNEY - TY ENGINEER CITY NNER IEF BUILDING OFFICIAL VILDING DIPARTMT — RAILER rnnF ENFORrZMENT iRENE ,. MASTER FILE CITY MANAGER FINANCE DIRECTOR FINANCE— SUM. ACCOUNTANT PURCHASING POLICE DEPARTMENT— CHIEF • POLICE DEPARTMENT — JIM RECREATION DEPARTMENT PUBLIC WORKS DEPARTMENT FIRE DEPARTMENT TUW - ADMINISTRATION CODIFIERJMAIL IMMEDIATELY) Municipal Robert Lase n charge of WP Robert Ussery (in charge of Codification) Code Corp.,PO 2235, Talla z5)------- ssee 32304 PERSONNEL IV UDITOR FILE ORDINANCE FILE RESO UT ON LE LAN'NI G COMISSION OARD OF D USTMENT CHARTER ZOARD PUBLIC INFORMATION COMMTTEE' COUNTY LIBRARIAN COUNTY TAX APPRAISER WiIIiam markhaff n W. N. WILSON BROWM CTY.PLANNING COUNCIL 115 S. Andrew, Ave., Rm. 307 2j MB F RCE a51g R. Mduab Rd. T arac 3332 SECRET R PETITIONER OR APPLICANT CLERK'S T4W2M FILE COPIED DISTRIBUTED