There shall be established a self-insured retention trust fund beginning July 1, 1988. Monies for this fund will be from unappropriated reserves or other sources in an amount the council deems appropriate.
(Ord. 88-02 § 1, 1988)
As a general guideline, the city will self-insure progressively upward on an annual basis. As the level of the city's self-insurance increases, an amount equal to the insurance premiums saved for that year shall be transferred to the fund from unappropriated reserves.
(Ord. 88-02 § 1, 1988)
The city shall use the money in the self-insured retention trust fund only for the following purposes:
1.
Uninsured liability losses up to the stated limit of retention;
2.
Loss adjustment services;
3.
Legal expense of defending loss claims;
4.
Premiums on bonds required by the state as a prerequisite for self-insurance;
5.
Loss control costs of an extraordinary nature not previously budgeted.
(Ord. 88-02 § 1, 1988)
The fund shall be invested in such manner as to yield a maximum medium to short-term return. Earnings on investments of the fund shall be retained in the fund and be used for fund purposes.
(Ord. 88-02 § 1, 1988)
The city manager has the authority to approve the settlement of any self-insured loss up to five thousand dollars. Claim settlements in excess of five thousand dollars require the concurrence of the city council.
(Ord. 88-02 § 1, 1988)
No money shall be disbursed from the self-insurance fund except for the purposes described in Section 4.06.030 unless such disbursement is authorized by ordinance passed by affirmative vote of not less than six members of the city council.
(Ord. 88-02 § 1, 1988)