§ 2-203. Self-insurance; funding, allocation and use.

(a)

When using the risk management trust fund, the city shall act as a self-insurer for all claims, other than those falling within the coverage provisions of an insurance policy or surety bond. The liability of the city for such costs shall be established by law. The city risk manager shall cause the city to comply with all requirements for self-insurers as may be contained in applicable law, to obtain for the city, all benefits of self-insurance status, and to maintain such status for as long as it is in the city's interests to do so.

(b)

The risk management trust fund shall be funded as part of the annual budgetary and appropriation process of the city in such amounts as to provide sufficient monies to pay all reasonably anticipated claim costs, property damage costs and risk management expenses against the city for the ensuing fiscal year.

(c)

The city council shall determine the funding level of the risk management trust fund based on the amounts expended for self-insurance purposes, if any, and on the recommendations of the city manager, the city risk manager and the finance director. The cost of funding and administering the risk management trust fund set forth in the annual budget shall be allocated among departments of the city by the city risk manager and the finance director based on:

(1)

Prior loss experience of the risk management trust fund;

(2)

Projected exposure of risk based upon actuarial analysis;

(3)

Insurance premium costs, if any; and

(4)

Risk management expenses.

(d)

The risk management trust fund shall be used to pay all claims, legal defenses, payment of claim costs, property claim costs, risk management expenses, and costs as described in section 2-202 above subject to the exceptions as defined in this chapter.

(Ord. No. 2892, § 1, 5-27-14)