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HomeMy WebLinkAboutResolution - 2005-R0196 - Self Insurance Risk Program Coverage - 05_12_2005Resolution No. 2005-RO196 May 12, 2005 Item No. 30 RESOLUTION WHEREAS, by Resolution dated December 11, 1986 (Resolution No. 2481), the City of Lubbock established the City of Lubbock Self Insurance Fund; WHEREAS, by Resolution dated October 22, 1987 (Resolution No. 2672), the City of Lubbock repealed Section 5 of Resolution No. 2481, and in its stead adopted a new statement of coverage for the City of Lubbock Liability Self Insurance Program; WHEREAS, by Resolution dated December 13, 2001 (Resolution No. 2001- R0517), the City of Lubbock further amended Resolution No. 2481 in certain respects not affected herein; WHEREAS, the City Council of the City of Lubbock now desires to amend Resolution No. 2672, regarding the Statement of Coverage Liability Self Insurance Program, attached to such Resolution as Exhibit "A"; NOW THEREFORE: BE IT RESOLED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: Section 1. THAT Section 2 of Resolution No. 2672 is hereby deleted in its entirety, and replaced with the following: THAT the City of Lubbock Statement of Self Insurance Risk Program Coverage attached to this Resolution as Exhibit "A" and made a part hereof for all purposes is hereby adopted as the coverage to be afforded under the City of Lubbock's Self Insurance Fund. Section 2. THAT Exhibit "A' to Resolution No. 2672 is hereby deleted in its entirety and replaced with Exhibit "A", attached hereto. Section 3. Except as amended herein, Resolution No. 2672 shall remain in full force and effect as originally provided. Passed by the City Council this 17rb day of May 2005. AR c UGAL, MAYOR ATTEST: Reb cca Garza, City Secretary APPROVED AS TO CONTENT: APPROVED AS TO FORM: Je arts , Assistant City Attorney ml/ccdocs/Self Insurance Fund.res May 2, 2005 Resolution No. 2005-RO196 May 12, 2005 Item No. 30 CITY OF LUBBOCK Statement of Self Insurance Risk Program Coverage I. DEFINITIONS The words and phrases in italics in this policy have special meanings: A. Actual Cash Value - Replacement cost less depreciation. B. Contractual Disputes - A dispute to a legally enforceable promise made by agreement between the City and another vendor. Contractual Disputes shall not include salaries, overhead or sufficiently budgeted items for the fulfillment of the contract. C. Covered Party - A person or organization set forth in Section II. D. City - The City Of Lubbock. E. Defense Expense - Fees and expenses related to the adjustment, investigation, defense or litigation of a claim, including attorney's fees, filing fees, court costs, arbitration/mediation costs, expert and consultation fees, and travel. Defense Expense shall not include the salaries, overhead or normally budgeted items such as training of employees of any Covered Party. F. First Party Claims - Damages to property (not including City owned fleet that has a value of less than $50,000) owned/leased by the City and within the City's self -insured retention. Such damages must be sudden and accidental in nature and not caused by failure to properly maintain. First Party Claims costs shall not include the salaries, overhead or normally budgeted items of employees of any Covered Party. G. Program - The City of Lubbock Self Insurance Risk Program H. Self -Insured Retention - Any deductible associated with insurance for property and casualty coverages purchased by the City. I. Subrogation - The recovery of money for loss to City assets, by the Risk Management Department for all other departments, as a result of another's legal liability. J. Subrogation Expense Fees and expenses related to the investigation and pursuit of recovery, including litigation expenses. Litigation expenses include attorney's fees, court costs, arbitration/mediation costs, expert and consultation fees and travel, but shall not include salaries, overhead or normally budgeted items of any Covered Party. K. Workers' Compensation — Coverage provided by the City to secure the payment of compensation in accordance with all provisions of Title 5 of the Texas Labor Code. Coverage may be obtained through conventional insurance, use of a municipal pool or self-insurance, at the direction of the Council. II. WHO IS COVERED Each of the following is a covered party under the program: A. The City. B. While acting in the course and scope of their duties, current and previous: a. Elected or appointed officers and officials of the City. b. Board or commission members, either Officer of the City or Advisory, appointed by the City where no other commercial errors and omissions or directors and officers coverage exists. c. Employees or authorized volunteers of the City. C. Any person in B above when serving on boards, agencies or commissions of any kind at the direction of the City or with the consent of the City. D. Any entity the City is obligated by virtue of a written contract to provide any property and/or casualty coverage, but only with respect to operations performed by or on behalf of the City or facilities owned or used by the City. III. WHAT IS COVERED The program will pay: A. Coverage provided by the City to secure the payment of property and casualty coverages. Coverage may be obtained through conventional insurance, use of a municipal pool or self-insurance. Premiums for commercial or municipal pool excess or primary insurance for property and casualty coverages as necessary to protect the City and subject to approval by the City Manager or designee if the premium amount is less than $25,000 or Council if the premium amount exceeds $25,000. B. Self -Insured Retentions or self-insurance, at the direction of the Council, or at the direction of a commercial insurance carrier, if required by written contract, on claims in accordance with the coverage document of excess liability or at the direction of the court, to include judgment and interest. C. Self -Insured Retentions or self-insurance, at the direction of the Council, on Automobile Medical Payments and Uninsured/Underinsured Bodily injury on vehicles owned/leased by the City. D. Self -Insured Retentions or self-insurance, at the direction of the Council, on first party claims in accordance with the type and scale below: PROPERTYDEDUCTIBLES a. Minimum $10,000 per occurrence b. Claims over $25,000 would have an additional 10% of additional total cost c. Maximum $50,000 per occurrence Deductibles outlined above may be reduced or increased upon the approval of the City Manager if such deductible would create an extraordinary financial hardship to the departmental budget. E. All other sums not covered by insurance, that the covered party shall become legally obligated to pay up to $1,000,000 per occurrence. Such obligations may include contractual disputes or other issues not covered by conventional insurance. The limit under this section is intended as seed money only and is designed to protect the program from being totally depleted for those items that are of such a nature as to require an increase in taxes or issuance of bonds. This would include contractual disputes or other issues not covered by conventional insurance. In all such instances that the department budgeted sufficient funds on any contractual dispute, the funds will be paid from the department's budget. F. Workers' Compensation liability under Title 5 of the Texas Labor Code, if Council has elected to self -insure workers' compensation during any given budget year. G. On matters covered by A, B, C, D, E and F above, defense expense incurred by the City or incurred with the consent of the City. H. On matters covered by A, B, C, D, E and F above, loss adjustment expenses. I. Defense Expenses associated with Civil Service arbitration or other legal actions. J. Defense Expenses associated with any claim. K. Subrogation Expenses associated with efforts to recover money for loss to City assets; however, any subrogation expenses paid will reduce the amount of recovery to the affected Fund. L. The actual cash value of damage to an employee's automobile, if such damage arises from the authorized use of the automobile on City business and only if there is no other collectable insurance. If there is other collectible insurance, the City shall only be liable for that portion that is not otherwise covered. M. Comprehensive safety measures, including equipment, repair of facilities and training for items that are an immediate risk to the general public or the City's work force that are not normally budgeted operating expenditures. N. Operational costs of the Risk Management Department, and associated departments, as approved annually in the budget. IV. WHAT IS NOT COVERED The program does not apply to: A. Liability under disability benefits, unemployment compensation, health benefits or similar laws. B. Damages covered by insurance or other self-insurance programs applying to a covered party. C. City police officers while employed by others and not performing City law enforcement functions. D. A covered parry's damages or defense expense arising from a claim originally asserted by a covered party against another covered party. E. Penalties, fines or associated fees relating to permitting or regulatory findings. F. Defense expenses associated with the collection of past due tax liens or uncollectible receivables (excluding subrogation accounts). G. A covered parry's salaries, overhead or normally budgeted item.