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HomeMy WebLinkAboutOrdinance 14577ORDINANCE NO ,e ~'~ AN ORDINANCE AMENDING CHAPTER 2, ARTICLE IX, OF THE CODE OF THE CITY OF FORT WORTH, "PERSONAL LIABILITY INDEMNITY PLAN", ADOPTING A DEFINIITON OF "SCOPE OF EMPLOYMENT"; EXTENDING PLAN COVERAGE TO ACTS OR OMISSIONS COMMITTED BY A PLAN MEMBER WHILE OPERATING A CITY VEHICLE TO AND FROM WORK; PROVIDING THAT THE CITY MAY AT ITS DISCRETION FURNISH LEGAL REPRESENTATION AND PAY DAMAGES, COURT COSTS AND ATTORNEY'S FEES IN ANY CLAIM OR LAWSUIT AGAINST A PLAN MEMBER THAT WOULD OTHERWISE BE EXCLUDED FROM THE PLAN; PROVIDING THAT THE CITY ATTORNEY SHALL SELECT OUTSIDE COUNSEL TO REPRESENT PLAN MEMBERS, PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Crty of Fort Worth has a personal habihty indemnity plan whereby the City will pay actual damages, court costs and attorney's fees arising from certain types of claims and lawsuits against City employees, volunteers and elected or appointed officers, WHEREAS, the plan currently excludes any act or omission committed while a plan member is operating a city vehicle m the course of personal or pnvate business, WHEREAS, rt is advisable to extend coverage of the plan to acts or omissions committed while operating a city vehicle going to and from work; WHEREAS, the plan currently allows the Crty discretion to provide legal representation and pay actual damages, court costs and attorney's fees ansmg from claims alleging violations of constitutional nghts or civil nghts, which claims are generally excluded from the plan, WHEREAS, rt is advisable to allow the Crty discretion to provide legal representation and pay actual damages, court costs and attorney's fees in all types of claims generally excluded from the plan, WHEREAS, the plan currently provides that outside counsel shall be selected by mutual agreement of the plan member and the city attorney; WHEREAS, rt is advisable to amend the plan to provide that the city attorney shall select outside counsel, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS SECTION 1. Section 2-290, "Definitions", is hereby amended by adding a definition of "scope of employment", as follows (g) Scope of employment has the same meaning as set out in the Texas Tort Claims Act, as rt may be amended from time to time. SECTION 2. Section 2-291, "Coverage", Subsection a(1) is hereby amended to clanfy a reference to "scope of employment", as follows (1) Result from an act or omission of the plan member while in the scope of his employment or office with the city or dunng his assigned volunteer work with the city; and SECTION 3 Section 2-294, "Exclusions", is hereby amended to amend subsection (f), add a new subsection (g) extending coverage under the plan to include operation of a city vehicle to and from work, renumber subsections (g) through (k) as (h) through (1), and provide that the City has discretion to provide legal representation and pay actual damages, court costs and attorney's fees m any claim or lawsuit excluded under Section 2-294, as follows (f) Any act or omission committed by a plan member while the plan member is operating a city vehicle without permission or authority; (g) Any act or omission committed while the plan member is operating a city vehicle in the course of personal or private business, except going to and from work; 2 provided however, that state law shall apply to the extent this paragraph is m conflict with state law; (h) Liability assumed by the plan member under a contract or agreement, unless the contract or agreement has been entered into with the consent or at the request of the city; (i) Any obligation for which the city may be liable under the Texas Workers' Compensation Act, Unemployment Compensation Laws, or any similar law; (j) Any act or omission which occurs during a period of time m which the plan member is engaged m outside employment or is rendering contractual services to someone other than the city; (k) Any claim or lawsuit alleging violations of constitutional rights, civil rights, or federal law; (1) Any plan member who is already covered by an insurance contract or other plan of self-insurance authorized by statute for acts or omissions occurnng while m the scope and course of his employment or duties, up to the limits of said insurance contract or plan. Nothing m this section shall prohibit the city, m its discretion, on a case by case basis from providing legal representation and paying actual damages, court costs and attorney's fees required to be paid by a plan member m any claim or lawsuit, to the extent allowed by law SECTION 4 Section 2-296, "Defense and legal representation", Subsection (c), is hereby amended to provide that outside counsel representing a plan member shall be selected by the city attorney, as follows (c) If the city attorney determines that there is a conflict of interest for the city attorney m representing a plan member, and the plan member is entitled to coverage under this article, the city will pay the reasonable fees of outside legal counsel to represent the plan member The outside counsel shall be selected by the city attorney SECTION 5. Except as expressly amended, all provisions of Chapter 2, Article IX, "Personal Liability Indemnity Plan", shall remain m full force and effect. 3 SECTION 6. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are m direct conflict with the provisions of such ordinances and such Code, m which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 7 It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, tf any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent ~unsdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation m this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 8. This ordinance shall take effect upon adoption. ROVED AS TO ORM AND LEGALITY ~ ~ , A stant City Attorney Adopted. ~~- ~ -Q~ Effective I~PPROVED CITY COUNCIL APR 3 2001 4 ~ r~~ city Secretary of the City of Fort t~Yorih, Texae City of Fort Worth, Texas ~11~Ayar And Cauetc~l ommun~cAt~ian C DATE REFERENCE NUMBER LOG NAME PAGE 4/3/01 G-13194 15CHAPTER2 1 of 2 SUBJECT ORDINANCE AMENDING CHAPTER 2, ARTICLE IX OF THE CODE OF THE CITY OF FORT WORTH, "PERSONAL LIABILITY INDEMNITY PLAN" RECOMMENDATION It is recommended that the City Council approve the attached ordinance amending the Personal Liability Indemnity Plan, Sections 2-290 through 2-298 of the City Code DISCUSSION The City's Personal Liability Indemnity Plan establishes the conditions and procedure under which the City will obtain outside counsel and pay attorney's fees, actual damages and court costs arising, from claims against City employees, volunteers and officers. The attached ordinance amends the plan in the following respects a) Adds a definition of "scope of employment" and clarifies a reference to scope of employment in the plan, and b) Expands coverage of the plan to include acts or omissions committed while a plan member is operating a City vehicle to and from work. The plan currently excludes all acts or omissions committed while a plan member is operating a City vehicle in the course of personal or private business, and c) Grants the City discretion to provide legal representation and pay actual damages, court costs, and attorney's fees on a case-by-case basis for claims that are otherwise excluded from the plan Currently, the plan only allows discretion to provide counsel and make payments in connection with claims excluded from the plan that allege violations of constitutional rights, civil rights, or federal law; and d) Provides that outside counsel representing a plan member shall be selected by the City Attorney The plan currently provides that outside counsel shall be chosen by mutual agreement of the plan member and the City Attorney Allowing the City Attorney to select outside counsel is consistent with state law, custom and practice in the insurance industry ~_ ,,~ ._ .~~~, i* ~ } u ~ t 9~r t ;, 3. 5 . 6 ~C ~ City of Fort Worth, Texas ~1-~A~~rr And aunc~( a~inun~cAt~an C C DATE 4/3/01 REFERENCE NUMBER G-13194 LOG NAME 15CHAPTER2 PAGE 2 of 2 SUBJECT ORDINANCE AMENDING CHAPTER 2, ARTICLE IX OF THE CODE OF THE CITY OF FORT WORTH, "PERSONAL LIABILITY INDEMNITY PLAN" FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that this action will have no material effect on City funds CB k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by• (to) APPROVED Charles Boswell 8511 CITY COUNC~~ Originating Department Head. ~ 2~0~ APR Susan Bulla 8513 (from) ~ ~ ~ Additional Information Contact: "'' ` °""'~J Citq &ecr®tary of tihe City of Fort Worth, Tezaa Susan Bulla 8513 aaQpt~a ar~~naR ~~g~