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ORDINANCE NO. 2000-0-17
AN ORDINANCE OF THE CITY COUNCIL OF
EDGEW A TER, FLORIDA; TO AMEND CHAPTER 2
(ADMINISTRATION) BY REPEALING ARTICLE IV (SELF-
INSURANCE FUND), SECTIONS 2-61 (GENERALLY), 2-62
(PURPOSE), 2-63 (COMMITTEE-CREATED; MEMBERSHIP;
DUTIES), 2-64 (SAME-INVESTMENT AUTHORITY), 2-65
(SAME-MEMBER'S OATH OF OFFICE, ETC.), 2-66
(P A YMENT OF EXPENSES), 2-67 (MANAGEMENT OF
FUNDS), 2-68 (SETTLEMENT OF CLAIMS), AND 2-69
THROUGH 2-75 (RESERVED) OF THE CODE OF
ORDINANCES, CITY OF EDGEW A TER, FLORIDA;
PROVIDING FOR CONFLICTING PROVISIONS,
SEVERABILITY AND APPLICABILITY; PROVIDING FOR
CODIFICATION, AN EFFECTIVE DATE AND FOR
ADOPTION.
WHEREAS, the City Council of the City of Edgewater, Florida, has made the following
determinations:
1. Article IV (Self-Insurance) of Chapter 2 (Administration) of the City of Edgewater
Code of Ordinances has not been modified since 1990.
2. All outstanding claims and issues submitted to date have been paid from the Fund
leaving a zero balance.
3. Upon research, in an effort to be cost effective, the City obtained the services of a
commercial insurance carrier in 1994.
NOW, THEREFORE, BE IT ENACTED by the People of the City of Edge water, Florida:
PART A.
REPEAL ARTICLE IV (SELF -INSURANCE FUND) OF CHAPTER 2
(ADMINISTRATION) OF THE CODE OF ORDINANCES, CITY OF
EDGEWATER, FLORIDA, IN ITS ENTIRETY.
Article IV (Self-Insurance Fund) of Chapter 2 (Administration) is hereby repealed in its
StItlck till otlj5h passages are deleted.
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entirety.
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ARTICLE lV. SELF-INSURANCE FUND
See. 2-61.
Genel ally.
There is heleby crc.rted a Ciry ofEdgct'Vatcr Sdf-Instl1ailGe Pund, the fund to which shall be
eredited all money deposited in the city treast.rry by appropriation 01 flom any other sotl1ee, togethel
with any unexpected balailce of any appropri.rtion heletofole madc fOI the expendittl1e of public
funds fin accruing flom.
(1)
(2)
(3)
(4)
(5)
(G)
(7)
Sec. 2-62.
The payment of daims andjudgmcnts against the City of Edgew.rter involving the
acts of officels 01 employees of the City ofEdget'Vatel or ploperty belonging to the
Ciry ofEdget'VateI.
Inswing 01 ploviding fol the inswance of any leal 01 pelsonal property 01 operation
ofthe City ofEdget'Vater against risks or hazards.
The maintenance ofhuuieane disa5ter ftl11ds.
The recovery ohort daims against othel parties.
Pines and fOlfcitmeslevied against employees a5 a result of being found responsible
fOI pIeventable accidents.
Amounts lCceivcd from paities contracting t'Vith the city for providing insurance
coverage to ploteet paiiies for airy and all risks involving activities or property
associated with the contracts.
Income accruing from the investment of the trust funds. Said funds aie to be
expended in accordance with the provisions and fOI the ptl1p05eS st.rted in this aitidc.
The fund shall be segreg.rted from other funds in the city tleasury and shall be
administelcd like OthGl similai funds.
Pm pose.
All money aeGumul.rted in the fund is herGby appropriated for thc pmposes for which
dcsignated, to be expended in accordance with the provisions and procedures established by this
article.
See. 2-63.
Committee - CI eated, llIembel sbip, duties.
Thele is hereby appointed a committee to be known as the City ofEdgew.rtcr Sdf-InsUIanee
and Insmancc Committee, consisting o[the city mailager, the ciry attorney and the finance dileeto!.
The committee shall admini5tcr the sdf-insWailCe program and maintain appropli.rte records whidl
shall reflect the st.:rtus of the plogram aild be in such detail as lequiled to enable the committee to
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determine applOpriMe rescr ves. The committee shall determine and recommend to the city council
the amount of rescr ves to be aeeunmlatcd and maintained and the amount to be applOpriMed
annually to finance the self-insmance and instlIance program.
Sec. 2-64.
Same - bnestment autlloIity.
Tmst funds may be invested without limitation in.
(1)
(2)
(J)
(4)
Sec. 2-65.
Donds, notes or other obligations of the United StMes or those guaranteed by the
United States or for whiGh the credit of the United States is pledged for the payment
of the principal and interest or dividends thereof.
Certificates of deposit of any bank iucOlporMcd under the laws of this stMe or any
national bank Olganized under the laws of the United StMes to do business and
situMed in this stMe, to the extent thM such sa v ings accounts ar e imim c,d with the
federal gOvernment or an agency thereof, and ifthe eertifieMcs of deposit arc seGUled
by the deposit of scetlIities of the Unitcd StMes GOvernment.
The committee shall have the power to make purchases, sales, eXGhanges,
investments and rcinvestments for and on behalf of the fund. It shall be the duty of
the committGe to see that money invested is at all times handled in the best illterest
of the e.ity.
SeeUlities 01 investments ptlIe.hased or held under the prOvisions ofthis article may
be sold or exe.hangcd for other seemities or investments, prOvided, thM no sale or
exchange shall be M a priGe less than the market prie.e of the seGUIities or in vestments
to be sold or eXGhanged.
Same -l\lembel'S oatil of offke, etc..
Each committee member shall take an oath of office and make written acknowledgement of
his acceptance of the dut}, responsibility and authority as sueh.
Sec. 2-66.
Payment of expenses.
It is the intention ofthe coune.il of the City ofEdge.wMer that the insUlance prOgranl shall
operate and function in a marmer similar to a commcrcial insmanee company. Accordingly, all
expenses arising from the operation ofthe progranl shall be paid from the fund to the sanIe extent
as similar expenses would be discharged by the. payment of premimns to a Gom1llercial inSUIanGe
canrer.
Sec. 2-67.
l\lanagement of fund.
The committee shall, as expeditiously as possible, with due regard to thc financial seGUlity
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ofthe city, proceed to establish the means \1\i hereby the city shall become self-insured in pr inl(H)
insurance cOve:rage: \1\ihik maintaining, ifpossibk, umbrella cOvcrage: to insurc against catastrophic
losses. The means contcmplated ineludc the e:stablishmcnt of financial rcserves and securing
adequate qualified p<:rsOlmcl, supplies and equipment to perform required ser v ices in an economical
and efficient manner. The committee is specifically authorized and directed to asccrtain that tk
city's financial interest is fully protected at all timcs. An) provisions of this artiele to the contrary
not\1\iithstanding, in the cvent that adequate financial reserves have not been prOvided 01 an analy sis
of the costs involved demonstrates that it is more economical ror the city to maintain cOverage for
certain specific risks tmough commercial insurance policies the committee is authorized and dilected
to procme such cOverage. The premitlms shall be paid from trust funds unkss the city council shall
have dirccted otherwise and provided funds for that pmpose. The committee shall utilize the
so vices of regular city cmployces to thc gleatest extent practical, but may procme specialized
ser vices on a fee basis from independent eontlactors \1\ih<:n such action is not prohibited by la\1\i.
'vVhere personalser vices for the program rendered by regular city employees requires thc expenditure
of a sub.stantial portion of the employees' \1\iorking time on a regular orrecUlring basis the program
costs of such time, including all emoluments, shall be charged as an cxpensc ofthe program. The
council may provide for the payment of such expenses during the regular budgeting process by
ploviding funds for the payment of such personncl in the appropriate depaltmental budge:t \1\iith a
cOllesponding reduction in the amount appropriatGd directly to the trust funds. In the event tllat thc
plogram shall require personnel services, payment rol which shall not have been provided in thc
budget, the committee shall provide funds expendcd or to be cxpended fOl such service.
Sec. 2-68.
Settlement of daim5.
The city attorney .shall pcrform or super vise the pcrformancc of all kgal SCl viccsrcquired to
accomplish thc purposcs o[thc self-insurance and insurance progranl. Lcgalser viecs shall inelude,
but not be limitcd to, the defensc or pI oseeution or negotiation of settkmcnt agreements of all elaims
01 suits, the investigation of all claims and settkment of those elaims round to be \1\iell founded ror
\1\ihich the anlOunts elaimed arc payable from the trust fund.
In accordance \1\iith the intent that the insurance prograrll operate and function in a marmer
similar to a commercial insurance company, the following deduetib1cs arc establiskd ror elainls
made by the various d{,partments o[t11e city;.
(2)
(J)
(4)
rrOp{'fry (at a fixed location),
Duildings
Contents of building
Mobile equipm{,ut (self-plopelled)
Equipment and tools
Automobiles.
Compreh{,nsiv{,
$5,000.00
2,500.00
2,500.00
100.00
(1)
500.00
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(5)
(G)
(7)
Collision
Ceneralliability
Automobile liability
Err or s and omissions
500.00
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1,000.00
The sclf-insuHtIlce committee, assistants and claims adjusters, as may be designated may
comprise, s~ttle and pay all claims which may be discharged by payment ofan amount not to exceed
one thousand dollars ($1,000.00) fur each indi vidual claim. Such settlements or conlpronlises shall
be for all damages claimed for personal injury, property danlage 01 both.
Proposed settlcments in ex(,ess of one thousand dollars ($1,000.00) shall be submittcd to the
city council for its approval priol to acceptance.
Upon approval by the city councilor the self-insurance committee, as specified in the two
preeeeding paragraphs, the sclf-insurarlce committee shall.nrtho1i1:e the payment of the claim by the
finance direetol and provide such documents as the finarlGe director nlay require.
The city attorney shall render su,,11 report or reports for tile settlement of claims to the
committee and the city council as they shall require.
Sees. 2-69 - 2-75.
Resel ~ ed.
PART B.
CODIFICATION.
Provision of this ordinance shall be incorporated in the Code of Ordinances of the City of
Edgewater, Florida, and the word "ordinance", may be changed to "section", "article", or other
appropriate word, and the sections of this ordinance may be renumbered or relettered to accomplish
such intention; provided, however, that Parts B through F shall not be codified.
PART C. CONFLICTING PROVISIONS.
All conflicting ordinances and resolutions, or parts thereof in conflict with this ordinance,
are hereby superseded by this ordinance to the extent of such conflict.
PART D. SEVERABILITY AND APPLICABILITY.
If any portion of this ordinance is for any reason held or declared to be unconstitutional,
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inoperative, or void, such holding shall not affect the remaining portions of this ordinance. If this
ordinance or any provisions thereof shall be held to be inapplicable to any person, property, or
circumstance, such holding shall not affect its applicability to any other person, property, or
circumstance.
PART E. EFFECTIVE DATE.
This ordinance shall take effect upon adoption.
PART F. ADOPTION.
After Motion by Councilwoman Lichter and Second by Councilwoman Rhodes, the vote on
the first reading ofthis ordinance held on August 7, 2000, was as follows:
AYE NAY
Mayor Donald A. Schmidt ---1L
Councilman James P. Brown ---1L
Councilman Dennis A. Vincenzi ---1L
Councilwoman Harriet E. Rhodes ---1L
Councilwoman Judy Lichter ---1L
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After Motion by - Q� and Second by
L.e-a.....6w..� %�.G�.c�+�.� , the vote on the second reading of this ordinance was
as follows:
AYE NAY
Mayor Donald A. Schmidt ✓
Councilman James P. Brown
Councilman Dennis A. Vincenzi
Councilwoman Harriet E. Rhodes
Councilwoman Judy Lichter
PASSED AND DULY ADOPTED this 21' day of August, 2000.
CITY COUNCIL OF THE
CITY OF EDGEWATER, FLORIDA
By,, "" e �� ,root//
Donald A. Schmidt
Mayor
Robin L. Matusic —�
Legal Assistant
Stuck threngi passages are deleted.
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