4.16.010 Established – Purpose.
There is established a special municipal fund denominated claims, litigation and property loss fund into which shall be placed annually those moneys determined necessary for liability and property loss exposure. Such fund is declared to be perpetual and moneys remaining therein at the conclusion of each budget year shall carry over into the ensuing year. Such moneys as are available within such fund and, as council deems appropriate, shall be drawn upon for the purposes set forth below.
A. Claims, litigation expenses, administrative costs, settlements, and judgments incurred without regard to the specific source contributing thereto shall be paid from the fund; provided, however, that claims or judgments for breach of contract, added costs to the city on account of labor relation matters, should not be an expense of this fund.
B. Where a claim asserts a breach of contract or labor relations matter and another basis for liability, or seeks damages greater than the amount which was owed pursuant to the contract or which could have been attained if the labor relations matter had been resolved prior to the commencement of the claim or litigation, the additional costs resulting from the alternate basis for liability or the greater amount of damages sought, and the litigation and administrative expenses for the claims, may be paid from the fund.
C. The premium cost for property insurance to provide coverage for city property loss, with an appropriate deductible level, shall be paid from the fund. Each city department shall be responsible for routine property losses within that department which are under the deductible amount. If a department has a loss under the deductible amount from a type of event which is unusual and infrequent, the department may apply for fund payment for that loss from the risk manager, with appeal from any denial to the mayor.
D. The premium cost for any excess liability insurance purchased by the city shall be paid from the fund. [Ord. 2002-03-018; Ord. 1999-02-005 § 1; Ord. 9145 § 1, 1982; Ord. 9087 § 1, 1982; Ord. 8616 § 1, 1977].