Establishing a Non-Reverting Insurance Premium & Liability Reserve Fund

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BILL NO. 125 =79 ORDINANCE NO. (Q - AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, ESTABLISHING A NON - REVERTING "INSURANCE PREMIUM AND LIABILITY RESERVE FUND ". STATEMENT OF PURPOSE AND INTENT: The City Administration has determined that it would be in the City's best interest to retain a larger share of its potential liabilities in view of current upwards trends in the municipal insurance market, The Ordinance is proposed as a method for retaining such risks, paving premiums and providing the mechanism to service such retained risks and potential liabilities. WHEREAS, the Common Council of the City of South Bend has determined that it is in the best interests of the City that the City become self - insured in certain areas of public liability imposed upon it by law arising from the ownership of property and acts of its employees in the course of providing services; and WHEREAS, the Common Council has determined that the City has the financial ability to accomplish its own funding to cover said areas of retained liability and that it would be to the fiscal advantage of the City to do so. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: SECTION I. Reserve Fund Created A general non - reverting fund is hereby created to be known as the "Liability Insurance Premium and Reserve Fund ", Said fund is created for the purpose of setting aside monies, assessed on all operations and departments of the City, for the payment of any premium for outside coverage, claims arising from retained risk and all incidental costs associated with any claims arising from said retained risk including, but not limited to, investigative and legal fees.. Said reserve fund also shall be used for the purpose of funding the administrative positions or contractual services of a risk manager, legal counsel, claims adjuster, and necessary support personnel. Said fund may be used for a source of temporary loans to other City funds but shall in no way be assessed for permanent 1Qans. Said fund shall be invested by the Controller's Office with all earned interest belonging to said fund in it's entirety. SECTION I 'O, Payment of Certain Departmental Safety Coordinators The administration and common council to dramatize -their commitment to employee and job safety, and also to recognize that certain employee safety coordinators will be performing this duty outside of the normal work duties do hereby authorize the payment of a stipend in addition to their normal wages in the amount of $100.00 annually. The following safety coordinator positions shall be in this category. Traffic and Lighting Municipal Garage River Bend Plaza Maintenance Bureau of Sewers Bureau of Streets Waste Water Treatment Plant Water Works (North Pumping Station) Water Works (Olive Street Station) Parking Garages