56-87 Establish fund for Self-insurance

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ORDINANCE NO. 56-87 By: Gallagher, Graham, Salmon Wend ! ing AN EMERGENCY ORDINANCE establishing a special fund for the purpose of providing self-insurance with respect to certain of the City's liability risks and making an appropriation in connection therewith. WHEREAS, the City of Lakewood, Ohio (the "City") by action of this Council hereby determines that it is in the best interest of the City to establish a self-lnsurance fund pursuant to Sec- tion 2744.08(A)(2)(a), Ohio Revised Code, to provide for the risks of liability (other than with respect to certain recreational activities, which are covered by the Recreational Self-Insurance Fund); and WHEREAS, it is in the best interest of the City that such self-insurance fund be broadly authorized to pay claims and claims expenses, to purchase insurance or to pay the City's costs in a joint self-insurance pool; and WHEREAS, this ordinance is an emergency measure which is necessary for the immediate preservation of the public peace, property, health, safety and welfare in the City, and for the further reason that the City's general liability insurance policy is about to expire. NOW, THEREFORE, BE IT ORDAINED by the City of Lakewood, Cuyahoga County, Ohio: Section 1. (a) That there is hereby established, pursuant to Section 2744.08(A)(2)(a), Ohio Revised Code, a special fund to be known as the "City of Lakewood, Ohio General Liability Self-Insurance Fund" (the "General Liability Self-Insurance Fund" or the "Fund"). (b) This Council may appropriate, on an annual basis and at such other times as it deems necessary or desirable, such amounts which it believes, in its sole discretion, will be sufficient to wholly or partially fund reserves to pay claims and claims expenses with respect to the City's liability to others arising out of torts, including the City's duty, if any, to indemnify its employees and Officials in a proper case. This ordinance does not require that any claim reserve or other reserve be established, or if established that it be fully funded. (c) Monies deposited to the credit of the General Liability Self-Insurance Fund may be expended for tlhe following purposes: (i) to pay claims (whether by settlement or upon final Judgment), (ii) to pay claims related expenses and other expenses related to the purpose of the Fund, (iii) to purchase liability insurance, (iv) to make contributions for (a) the services provided and (b) the liability coverage extended by a joint self-insurance pool; (v) to withdraw money for any lawful use if the Council shall determine that excess monies are to the credit of the Fund and (vi) to distribute any balance remaining in the Fund for any lawful use, as the Council shall determine, upon the determination by this Council that this Fund shall be terminated. (d) The interest on the investment of the monies to the credit of this Fund shall be paid into the Fund.