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86-O-30ORDINANCE NO. 86-0- 30 AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA, CREATING THE CITY OF EDGEWATER SELF-INSURANCE FUND; PROVIDING FOR THE APPROPRIATION AND ACCUMULATION OF FUNDS; APPRO- PRIATING SUCH FUNDS FOR THE PURPOSES DESIGNATED; STATING THE INTENTION FOR THE SELF-INSURANCE AND INSURANCE PROGRAM TO OPERATE AND FUNCTICN IN A MANNER SIMILAR TO A COMMERCIAL INSURANCE COMPANY; PROVIDING FOR THE APPOINTMENT OF THE CITY OF EDGE - WATER SELF-INSURANCE AND INSURANCE COMMITTEE TO ADMINISTER THE PROGRAM; PROVIDING FOR THE DUTIES, AUTHORITY AND RESPONSIBILITY OF THE COMMITTEE; PROVIDING FOR THE CITY ATTORNEY TO PROVIDE ALL LEGAL SERVICES REQUIRED TO ACCOMPLISH THE PURPOSES OF THE PROGRAM; PROVIDING AUTHORITY FOR THE SETTLEMENT OF CLAIMS NOT EXCEEDING ONE THOUSAND DOLLARS BY THE SELF-INSURANCE COMMITTEE AND FOR THE SETTLE- MENT OF CLAIMS IN EXCESS OF ONE THOUSAND DOLLARS UPON THE APPROVAL OF THE CITY COUNCIL; CONTAINING A REPEALER PROVISION, A SEVERABILITY CLAUSE; DECLARING THIS ORDINANCE TO BE AN EMERGENCY ORDINANCE AND DISPENSING WITH THE REQUIREMENT OF READING SAME ON TWO SEPARATE DAYS BY A THREE -FIFTHS VOTE OF THE CITY COUNCIL AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Edgewater's insurance premiums have &rown to astronomical proportions, and, WHEREAS, some coverages have been cancelled by the Carrier and Flplacement is not available in the present market, and WHEREAS, the City Council determined on the 21st day of November , 1985, that the City shall proceed with a Self -Insurance Program, and WHEREAS, during the preparation of the FY 86-87 Budget, the City Council gave due consideration to the financial arrangements for the establishment of a Self -Insurance Program for the City of Edgewater. NOW, THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF EDGEWATER, FLORIDA: SECTION 1. There is hereby created a City of Edgewater Self - Insurance Fund, the Fund to which shall be credited all money deposited in the City Treasury by appropriation or from any other source, together with any unexpended balance of any appropriation hertofore made for the ex- penditure of public funds for or accruing from: Page I of 6 pages 1. The payment of claims and judgments against the City of Edge- water involving the acts of officers or employees of the City of Edgewater or property belonging to the City of Edgewater. 2. Insuring or providing for the insurance of any real or personal property or operation of the City of Edgewater against risks or hazards. 3. The maintenance of hurricane disaster funds. 4. The recovery of tort claiims against other parties. S. Fines and forfeitures levied against employees as a result of being found responsible for preventable accidents. 6. Amounts received fron parties contracting with the City for providing insurance coverage to protect the parties for any and all risks involving activities or property associated with the contracts. 7. Income accruing from the investment of the trust funds. Said funds are to be expended in accordance with the provisions and for the purposes stated in this Ordinance. The Fund shall be segregated from other funds in the City Treasury and shall be administered like other similar funds. SECTION 2. All money accumulated in the Fund is hereby appropriated .for the purposes for which designated, to be expended in accordance with the provisions and procedures established by this Ordinance. SECTION 3. There is hereby appointed a Committee to be known as the City of Edgewater Self -Insurance and Insurance Committee, consisting of the City Clerk/City Administrator, the City Attorney and the City's Insurance Agent of record. Members shall be entitled to compensation by reason of their services in the Committee. The Committee shall designate one of the members to act as Chairman. The Committee shall administer the Self -Insurance Program and maintain appropriate records which shall reflect the status of the Program and be in such detail as required to enable the Committee to determine appropriate reserves. The Committee shall determine and recommend to the City Council the amount of reserves to be accumulated and maintained and the amount to be appropriated annually to finance the Self -Insurance and Insurance Program. SECTION 4. Investment authority. Trust funds may be invested without limitation in: a. Bonds, notes or other obligations of the United States or those Page 2 of 6 pages C O guaranteed by the United States or for which the credit of the United States is pledged for the payment of the principal and interest or dividends thereof. b. Certificates of deposit of any bank incorporated under the laws. of this State or any national bank organized under the laws of the United States to do business and situated in this state, to the extent that such savings accounts are insured with the federal government or an agency thereof, and if the certificates of deposit are secured by the deposit Rf securities of the United States Government. c. The Committee shall have the power totmake purchases, sales, exchanges, investments and reinvestments for and on behalf of the Fund. It shall be the duty of the Committee to see that money invested is at all times handled in the best interest of the City. d. Securities or investments purchased or held 'under the provisions of this Ordinance may be sold or exchanged for other securities or investments; provided, that no sale�mr exchange shall be at a price less than the market price of the securities or investments to be sold or exchanged. SECTION 5. Each Committee member shall take an oath of office and make written acknowledgment of his acceptance of the duty, responsibility and authority as such. SECTION 6. It is the intention of the Council of the City of Edgewater that the Insurance Program shall operate and function in a manner similar to a commercial insurance company. Accordingly, all expenses arising from the operation of the program shall be paid from the Fund to the same extent as similar expenses would be discharged by the payment of premiums to a commercial insurance carrier. SECTION 7. The Committee shall, as expeditiously as possible, with due regard to the financial security of the City, proceed to establish the means whereby the City shall become self -insured in primary insurance coverage while maintaining, if possible, umbrella coverage to insure against catastrophic losses. The means contemplated include the establishment of financial reserves and securing adequate qualified personnel, supplies and equipment to perform required services in an economical and efficient manner. The Committee is specifically authorized and directed to ascertain that the City's financial interest is fully protected at all times. Any provisions of this Ordinance to the contrary Page 3 of 6 pages . o 0 notwithstanding, in the event that adequate financial reserves have not been pro- vided or an analysis of the costs involved demonstrates that it is more economical for the City to maintain coverage for certain specific risks through commercial insurance policies the Committee is authorized and directed to procure such coverage. The premiums shall be paid from Trust Funds unless the City Council shall have directed otherwise and provided funds for that purpose. The Committee shah utilize the services of regular city employees to the greatest extent practical, but may procure specialized services on a fee basis from independent contractors when such action is not prohibited by law. Where personal services for the program rendered by regular City employees requires the expenditure of a substantial portion of the employees' working time on a regular or recurring basis the prorata costs of such time,including all emoluments, shall be charged as an expense of the Program. The Council may provide for the payment of such expenses during the regular budgeting process by providing funds for the payment of such personnel in the appropriate departmental budget with a corresponding reduction in the amount appropriated directly to the Trust Fund. In the event that the Programishall require personnel services, payment for which shall not have been provided in the budget, the Committee shall provide funds expended or to be expended for such services. SECTION 8. The City Attorney shall perform or supervise the performance of all legal services required to accomplish the purposes of the Self -Insurance and Insurance Program.. Legal services shall include, but not, be limited to, the defense or prosecution or negotiation of settlement agreements of all claims or suits, the investigation of all claims and settlement of those claims found to be well founded for which the amounts claimed are payable from the Trust Fund. The Self -Insurance Committee, assistants and claims adjusters, as may be designated may compromise, settle and pay all claims which may be discharged by payment of an amount not to exceed One Thousand Dollars for each individual claim. Such settlements or compromises shall be for all damages claimed for personal injury, property damage or both. Proposed settlements in excess of One Thousand Dollars shall be Page 4 of 6 pages . o 0 submitted to the City Council for its approval prior to acceptance. Upon approval by the City Council or the Self -Insurance Committee, as specified in the two preceding paragraphs, the Self -Insurance Committee shall authorize the payment of the claim by the Finance Director and provide such documents as the Finance Director may require. The City Attorney shall render such report or reports for the settlement of claims to the Committee and the City Council as they shall require. SECTION 9. All ordinances or parts of ordinances and all resolutions or parts of resolutions in conflict herewith be and the same are hereby repealed. SECTION 10. If any section, part of a section, paragraph, phrase or word of this ordinance is declared invalid, the remaining provisions of thl; ordinance shall not be affected. SECTION 11. It is the intention of the City Council and it is hereby ordained, that the provisions of this ordinance shall become and be made a part of the Code of the City of Edgewater, Florida, that the sections of this ordinance may be renumbered or relettered to accomplishsuch intention; and that the word "ordinance" may be changed to "section", "article", or other appropriate word. SECTION 12. This ordinance is hereby declared to be an emergency measure on the ground of urgent public need for the preservation of peace, health, safety and property in the City of Edgewater. SECTION 13. The requirement of reading this ordinance on two separate days is hereby dispensed with by a vote of not less than three -fifths of the members of the City Council. SECTION 14. This ordinance shall take effect immediately upon its adoption by the City Council of the City of Edgewater, Florida, and approval as provided by law. The first reading of said Ordinance, as well as the second reading of said Ordinance, was held at a special meeting of the City Council on the 22nd day of _September , 1986, and was adopted thereby. Page 5 of 6 pages ROLL CALL VOTE ON ORDINANCE NO. 86-0-30 AS FOLLOWS: SECOND READING: ATTEST: COUNCIL AN -)WE E THREE OUNCILMAN ZONE POUR Z . �" ,YO i ROUtL�CILMAN-ZCiNET�WOI COUNCIL AN-ZO E THREE OUNC LMAN-ZONE FOUR RCR City Clerk Pee r %k� Authenticated this Z day of 1986. MA OR This or i parer rney Page 6 of 6 pages