7965-08
ORDINANCE NO. 7965-08
AN ORDINANCE OF THE CITY OF CLEARWATER,
FLORIDA, AMENDING SECTION 2.641-2.647: SELF-
INSURANCE PROGRAM, RELATING TO PROCEDURAL
CHANGES AND NAME CHANGES; PROVIDING AN
EFFECTIVE DATE:
WHEREAS, the self-insurance program ordinance has become outdated and
there have been procedural and name changes that should be reflected in the
ordinance; now therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF CLEARWATER, FLORIDA:
Section 1. Sections 2-641 to 2.647 are amended to read:
Sec. 2.641. Purpose.
It is declared to be the policy of the city that the city shall, wholly or in part, carry its own
insurance risks in order to effect savings on premiums heretofore paid to insurance
companies.
Sec. 2.642. Reserve fund-Established.
A fund to be known as the fund of the city is hereby established. The city manager is
directed to request authority from the city commission council for the transfer of money
to such fund from time to time, as needed.
Sec. 2.643. Same-Disposition; withdrawals.:.f inyostmonts
f41 The central insurance reserve fund shall be accounted for deposited in some
bank in the city and shall be kept entirely separate and distinct from all other
funds belonging to the city. The city manager or the service agent his/her
desiQnee and the servicinQ aQent, if one is used, shall have authority to make
'.vithdrawals from the insurance reserve fund, but every such withdra'Nal shall first
be authorized in writing. to pay expenses related to claims both for and against
the City from the central insurance fund. Surplus moneys in the central
insurance reserve fund may be invested in accordance with the City's investment
policy. United States government bonds or in bonds of the city, but all such
bonds shall be kept separate from all other securities owned by the city and shall
be distinctly earmarked as belonging to the insurance reserve fund.
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Ordinance 7965-08
(2) The service agent is authorized to establish a bank trust account to receive
funds transferred from tho insurance reserve fund, "'thich funds are to bo used for the
payment of claims.
Sec. 2.644. Servicing agent; claims management.
The city manaqer, at his/her discretion. may sfl.a.U obtain the services of a person or
agency to function as servicing agent for the city in its self-insurance program or use in-
house adiusters to administer the self-insurance program. The servicing agent and/or
in-house adjusters shall be responsible for a program of claims management, including
the administration of such a program. and a program of loss prevention.
Sec. 2.645. Payment of claims.
As part of the claims management program, the servicing agent and/or in-house
adiusters shall have authority to settle and pay claims not to exceed the sum set forth
as a limitation of settlement authorization in Section 2.527. in the annual service
agreement between the city and the service agent.
Sec. 2.646. Report of losses.
Whenever a claim loss occurs, it shall be the duty of the head of the department in
which the claim loss occurs to report the loss to Risk Manaqement. the service agent in
writing. Such report shall give may include full details concerning the loss, including any
reports, pictures, statements or other data and shall include as well as an estimate of
the value of such claim loss. Each report of claim loss shall be kept on file at the city
hall for a period of one year after it has been acted on and may thereafter be processed
in accordance 'Nith the schedule for handling public reoords.
Sec. 2.647. Authority of city manager to reduce or cancel insurance.
The city manager or his/her desiqnee is authorized, beginning with the first fisoal yoar
fOllo'I.'ing institution of tho self insurance program by the city, to reduce the amount of
fire, windstorm, liability, worker~sJ compensation, and other insurance carried by the
city, and to continue to make such reductions as the central insurance reserve fund is
increased. The city manager is authorized to use his/her discretion in making such
reductions, and may reduce the amounts of some types of insurance carried by the city
or may cancel some types altogether, as he/she thinks best.:. ; provided, hO'Never, the
city shall not be permitted to be 'Nithout insurance protection of any kind except when
the insurance reserve fund amounts to $50,000.00 or more.
Section 2. This ordinance shall take effect immediately upon adoption.
PASSED ON FIRST READING
August 7, 2008
PASSED ON SECOND AND
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Ordinance 7965-08
FINAL READING AND ADOPTED
Approved as to form:
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Paul Richard Hull
Assistant City Attorney
August 21, 2008
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Frank V. Hibbard
Mayor
Attest:
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Ordinance 7965-08