HomeMy WebLinkAboutORD 1987-052 ORDINANCE NO. g 7-5�
AN ORDINANCE CREATING THE OFFICER AND EMPLOYEE
LIABILITY PLAN FOR THE CITY; PROVIDING THE TERMS
AND PROVISIONS OF THE PLAN; CONTAINING OTHER
MATTERS RELATED THERETO; AND DECLARING AN
EMERGENCY
�, WHEREAS, the City of Grapevine, Texas (the "City") is permitted by law and
by its duly adopted home rule charter to provide for the defense of, and the payment
of claims against, its officers, members of boards and commissions, employees and
volunteers when and while acting in the ordinary course of their duties, powers and
�� funetions; and
WHEREAS, the City Council has found and determined that provision
therefor should be made in accordance with this Ordinance and subject to the
limitations contained herein;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF GRAPEVINE, TEXAS:
Section l. Definitions.
The following terms, as used in this Ordinanee, shall have the following
meanings unless the conte� requires otherwise:
"aet" ineludes an omission or failure to aet.
"City" means the City of Grapevine, Texas.
"City Vehiele" means a vehicle or any mobile equipment leased or owned by
the City.
"Coverage Determination Action" means an action by a Plan Member to
�'� determine coverage under the Plan pursuant to Section 7 of this Ordinance.
Coverage Determination E�enses means the reasonable expenses incurred
�
by a Plan Member in connection with a Coverage Determination Action (including,
but not limited to, costs awa.rded by a court and attorneys' fees) that the City is not
preeluded from paying by law.
"Covered Aet" means any aet of a Plan Member that (a) occurs during the
discharge of the member's offieial duties for the City, and (b) is within the scope of
the member's office, employment, or assigned volunteer work with the City, as
applicable.
"Excluded Action" means a.ny claim or suit against a Plan Member:
(a) by the City;
(b) that results from (i) an intentional or knowing violation of a penal law
(ineluding an administrative agency rule having the force and effeet of law)
committed by, or with the knowledge and consent of, the Plan Member, or (ii) an act
of fraud eommitted by, or at the direction of, the Plan Member;
(c) that arises while the Plan Member is operating a City Vehicle with no
authority to do so;
�,,,�„ (d) that asserts or alleges liability assumed by the Plan Member under a
� eontract, unless the eontract is entered into at the request of the City;
�""' (e) that includes a joinder by the Plan Member of a claim or suit of the
member against the City for benefits under the Plan;
(f) for punitive damages that are not recoverable against the City in
law; or
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"Program Ordinance" means Ordinance No. 8 7-51 (which establishes the
City of Grapevine Self-Insurance and Risk Management Program), as from time to
time amended.
"Risk Management Board" means the City's Risk Management Board created
by the Program Ordinance.
Section 2. Plan Established.
� The City hereby establishes the "City of Grapevine Officer and Employee
Liability Plan, which shall consist of the policies, rights, and duties embodied in this
Ordinance. The Plan shall be implemented and administered as provided by this
Ordinance.
�. ..
Section 3. Defense and Settlement.
(a) The City will defend any suit, except an Excluded Action, against a
Plan Member that results from a Covered Act, even if the suit is groundless or
fraudulent.
(b) The City may investigate, negotiate, or settle any claim or suit
against a Plan Member that results from a Covered Act, as the City determines
necessary or appropriate, without the consent of sueh Plan Member.
Section 4. Payment of Plan Claims.
(a) Subject to Subsection (b) of this section, the City will pay each Plan
Claim.
(b) To be entitled to payment by the City for any Plan Claim, a Plan
Member must:
(i) notify the Risk Management Board in writing as soon as
practicable after receipt of written notice of any claim or suit that may
� result in a Plan Claim, and in any event not later tha.n three working days
after such receipt;
�. (ii) cooperate with the Risk Management Board in the
investigation, negotiation, or settlement of any claim or suit giving rise to
the Plan Claim and in enforcing any right of contribution or indemnity
against an individual or organization who may be liable to the City because of
the payment by the City of a Plan Claim;
(iii) assist in the conduct of any hearing or trial held in
connection with a Plan Claim, including (but not limited to) attending the
hearing or trial, securing and giving evidence, and obtaining the attendance
of witnesses;
(iv) not, except upon advice of the City Attorney or when
questioned by a police officer at the scene of an accident, give any oral or
written statement or enter into any stipulation or agreement concerning a
claim or suit resulting in a Plan Claim;
(v) not, except at the Plan Member's own eapense, voluntarily
make any payment, assume any obligation, or incur any e�ense with respect
to a.ny claim or suit resulting in a Plan Claim without the consent of the Risk
Management Board;
�. ::
(vi) deliver to the Risk Management Board, promptly upon
receipt, any demand, summons, notice, or other process received by the P an
Member in connection with any claim or suit that may result in a Plan Claim;
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(vii) comply with the claims administration procedures of the Ris
Management Board; and
(viii) perform the duties and comply with the requirements
imposed on the Plan Member by this Ordinance or by the Program Ordinance.
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Section 5. Le�al Representation.
(a) The City will provide legal representation for a Plan Member in a
claim or suit, except an Excluded Action, in which the asserted or alleged liability
of the Plan Member results from a Covered Act.
(b) If the City Attorney determines that there exists a conflict of
interest for the City Attorney to represent a Plan Member (pursuant to Subsection
�. , (a) of this seetion), the City will pay the reasonable fee of a private attorney to
represent the Plan Member. The private attorney will be selected by the Risk
Management Board.
Section 6. Subro�ation.
;�,.. ,.
If payment of a Plan Claim or legal representation is provided to a Plan
Member under the Plan, the City is subrogated to the Plan Member's rights of
recovery against any individual or organization to the e�ent of the City's payment
or liability for payment. A Plan Member shall execute and deliver to the Risk
Management Board such documents as are necessary to secure this right of
subrogation in the sole opinion of the City Attorney. A Plan Member shall not do
anything after a Plan Claim is incurred to prejudice this right.
Section 7. Determination of Covera�e.
(a) If the City denies coverage under the Plan to a Plan Member, the
Plan Member may seek a determination by a court of proper jurisdiction of whether
the member is entitled to such coverage.
(b) If the court rules in favor of the Plan Member, the City shall provide
such coverage to the Plan Member and shall reimburse the Plan Member for the
Coverage Determination E�enses.
Seetion 8. No Creation of Cause of Action.
r Nothing eontained in this Ordinance shall be eonstrued as creating a right or
cause of action against a Plan Member or as giving a right to a third party to
institute or maintain a suit that would not otherwise exist under law as a legal claim
�, against a Plan Member.
Section 9. Administration of Plan.
The Risk Management Board is responsible for the administration of the Plan
in aecordance with its terms, subject to the superior authority of the City Council.
In the course of earrying out this responsibility, the Risk Management Board shall
interpret and apply the provisions of this Ordinance.
Seetion 10. Amendment, Repeal, and Termination.
This Ordinance may be repealed or amended at any time, subject to existing
rights of Plan Members under Section 4 of this Ordinance, and the City may modify
or terminate the Plan at any time.
Section 11. Conflicts with Other Ordinances.
This Ordinance shall not operate to repeal or affect any other ordinance of
the City except to the e�ent that the provisions thereof are ineonsistent or in
eonfliet with this Ordinance, in which event, such inconsistent or conflicting
provisions in such other ordinance are hereby repealed.
� r Section 12. Severabilit.y.
If a.ny part of this Ordinance is held to be invalid for any reason, such holding
"�`° shall not affect the validity of the remaining parts of this Ordinance.
Seetion 13. Governmental Regulations.
The regulations provided in this Ordinance are hereby declared to be
governmental and for the health, safety, and welfare of the general public.
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Section 14. Payments Subject To Appropriation.
All amounts payable under this Ordinance are subject to available and
appropriated funding therefor, except that appropriation shall not be required to the
e�ent funding is available therefor under the Program Ordinance.
Section 15. No Ri�ht to Fund b,y Plan Member.
This Ordinance does not grant any right to any Plan Member in or to the
� w� Insurance Fund to be created for the City of Grapevine Self-Insurance and Risk
Management Program.
Section 16. Effeetive Date of Plan.
� The Plan shall become effective on October 1, 1987.
Section 17. Emer�enc.y.
The public importance of this Ordinance creates an emergency and an
imperative public necessity that any rule requiring ordinances to be read at more
than one City Council meeting be suspended, and any sueh rule is hereby suspended,
and this Ordinance shall take effect and be in force from and after its passage and
approved; provided the same is adopted on the first reading by three-fourths of the
members of the City Council present, otherwise this Ordinance shall become
effective on second reading.
FINALLY PASSED AND APPROVED AND EFFECTIVE on this the 18th day
of August, 1987.
�
[SEALI �_-----~ '~
�%;�1 �T?�-�i�G._---,.
Mayor, City of Grapevine, Texas
� ATTEST:
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Ci y ecretary, City Grapevine, Texas
APPROVED AS TO FORM:
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� �"---- .�___�,., �r��� � r �..�--`"_
City Attorney, City of pevine, Texas
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