Ordinance 25350006.13111
WSS/naa
10/11/85
R: 11/13/85
FOLLOWS:
ORDINANCE NO. 2535
AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON,
ESTABLISHING A NEW CHAPTER 2.06 INDEMNIFICATION
OF EMPLOYEES RELATING TO LEGAL ACTIONS BROUGHT
AGAINST CITY OFFICIALS AND EMPLOYEES, PROVIDING
FOR LEGAL REPRESENTATION FOR CONDUCT, ACTS AND
OMISSIONS ON BEHALF OF THE CITY WITHIN THE SCOPE
OF THEIR SERVICE OR EMPLOYMENT; PROVIDING FOR
THE TERMS, CONDITIONS AND EXCEPTIONS FROM SUCH
REPRESENTATION AND INDEMNIFICATION SPECIFYING
THE CIRCUMSTANCES UNDER WHICH CLAIMS AGAINST
CITY OFFICIALS AND EMPLOYEES WILL BE PAID BY
THE CITY; AND FIXING A TIME WHEN THE SAME SHALL
BECOME EFFECTIVE.
THE CITY COUNCIL OF EDMONDS, WASHINGTON, DO ORDAIN AS
Section 1. The Edmonds City Code is hereby amended by
the addition of a new Chapter 2.06 Indemnification of Employees
and Officers to read as follows:
Section 2.06.000 Definitions. Unless the context indicates
otherwise, the words and phrases used in this Chapter shall
have the following meanings:
(1) "Official." Any person who is serving or has
served as an elected City official, and any person who
is serving or has served as an appointed member of any
City board, commission, committee or other appointed
position with the City.
(2) "Employee." Any person who is or has been employed
by the City.
Section 2.06.010 Legal Representation.
(1) As a condition of service or employment the City
shall provide to an official or employee, subject to
the conditions and requirements of this ordinance, and
notwithstanding the fact that such official or employee
may have concluded service or employment with the City,
such legal representations as may be reasonably
necessary to defend a claim or law suit filed against
such official or employee resulting from any conduct,
act or omission of such official or employee performed
or omitted on behalf of the City in their capacity as a
City official or employee, which act or omission is
within the scope of their service or employment with
the City. This ordinance is subject to repeal or
modification at the sole discretion of the City
Council.
(2) The legal services shall be provided by the office
of the City Attorney unless:
A. Any provision of an applicable policy of
insurance provides otherwise; or
B. A conflict of interest or ethical bar exists
with respect to said representation.
(3) In the event that outside counsel is retained
under subparagraph 2(B) above, the City shall indemnify
the employee from the reasonable costs of defense
provided that in no event shall the officer or employee
be indemnified for attorneys' fees in excess of the
hourly rates established by the City's contract with
its City Attorney. The officer or employee shall be
liable for all hourly charges in excess of said rate.
Section 2.06.020 Exclusions.
(1) In no event shall protection be offered under this
ordinance by the City to:
(a) any dishonest, fraudulent, criminal, willful,
intentional or malicious act or course of conduct
of an official or employee;
(b) any act or course of conduct of an official
or employee which is not performed on behalf of
the City;
(c) any act or course of conduct which is outside
the scope of an official's or employee's service
or employment with the City; and/or
(d) any lawsuit brought against an official or
employee by or on behalf of the City. Nothing
herein shall be construed to waive or impair the
right of the City Council to institute suit or
counterclaim against any official or employee nor
to limit its ability to discipline or terminate an
employee.
s�
(2) The provisions of this ordinance shall have no
force or effect with respect to any accident,
occurrence or circumstance for which the City or the
official or employee is insured against loss or damages
under the terms of any valid insurance policy, provided
that this Chapter shall provide protection, subject to
its terms and limitations, above any loss limit of such
policy. The provisions of this Chapter are intended to
be secondary to any contract or policy of insurance
owned or applicable to any official or employee. The
City shall have the right to require an employee to
utilize any such policy protection prior to requesting
the protection afforded by this Chapter.
Section 2.06.030 Determination of Exclusion. The
determination of whether an official or employee shall be
afforded a defense by the City under the terms of this
ordinance shall be finally determined by the City Council on
the recommendation of the Mayor. The decision of the City
Council shall be final as a legislative determination of the
Council. Nothing herein shall preclude the City from
undertaking an officer or employee's defense under a
reservation of rights.
Section 2.06.040 Representation and Payment of Claims -
Conditions. The provisions of this Chapter shall apply only
when the following conditions are met:
(1) In the event of any incident or course of conduct
potentially giving rise to a claim for damage, or the
commencement of a suit, the official or employee
involved shall, as soon as practicable, give the City
Attorney written notice thereof, identifying the
official or employee involved, all information known to
the official or employee involved, all information
known to official or employee with respect to the date,
time, place and circumstances surrounding the incident
or conduct giving rise to the claim or law suit, as
well as the names and addresses of all persons
allegedly injured or otherwise damaged thereby, and the
names and addresses of all witnesses.
(2) Upon receipt thereof, the official or employee
shall forthwith deliver any claim, demand, notice or
summons or other process relating to any such incident
or conduct to the City Attorney, and shall cooperate
with the City Attorney or an attorney designated by the
City Attorney, and, upon request, assist in making
settlement of any suit and enforcing any claim for any
right of subrogation against any persons or
organizations that may be liable to the City because of
any damage or claim of loss arising from said incident
or course of conduct, including but not limited to
rights of recovery for costs and attorneys' fees
- 3 -
arising out of state or federal statute upon a
determination that the suit brought is frivolous in
nature.
(3) Such official or employee shall attend interviews,
depositions, hearings and trials and shall assist in
securing and giving evidence and obtaining attendance
of witnesses all without any additional compensation to
the official or employee and, in the event that an
employee has left the employ of the City, no fee or
compensation shall be provided; and
(4) Such official or employee shall not accept nor
voluntarily make any payment, assume any obligation, or
incur any expense relating to said claim or suit; other
than for first aid to others at the time of any
incident or course of conduct giving rise to any such
claim, loss, or damage.
Section 2.06.050 Effect of Compliance With Conditions. If
legal representation of an official or employee is
undertaken by the City Attorney, all of the conditions of
representation are met, and a judgment is entered against
the official or employee, or a settlement made, the City
shall pay such judgment or settlement, provided, that the
City may, at its discretion appeal as necessary such
judgment.
Section 2.06.060 Failure to Comply With Conditions. In the
event that any official or employee fails or refuses to
comply with any of the conditions of Section 2.06.040 of
this ordinance, or elects to provide his/her own
representation with respect to any such claim or litigation,
then all of the provisions of this Chapter shall be
inapplicable, and have no force or effect with respect to
any such claim or litigation.
Section 2.06.070 Reimbursement of Incurred Expenses.
(1) If the City determines that an official or
employee does not come within the provisions of this
Chapter, and a court of competent jurisdiction later
determines that such claim does come within the
provisions of this Chapter, then the City shall pay any
judgment rendered against the official or employee and
reasonable attorneys' fees incurred in defending
against the claim. The City shall pay any attorneys'
fees incurred in obtaining the determination that such
claim is covered by the provisions of this ordinance.
(2) If the City determines that a claim against a City
official or employee does come within the provisions of
this Chapter, and a court of competent jurisdiction
later finds that such claim does not come within the
- 4 -
provisions of this Chapter, then the City shall be
reimbursed for costs or expenses incurred in obtaining
the determination that such claim is not covered by the
provisions of this ordinance.
Section 2.06.080 Conflict With Provisions of Insurance
Policies. Nothing contained in this Chapter shall be
construed to modify or amend any provision of any policy of
insurance where any City official or employee thereof is the
named insured. In the event of any conflict between this
Chapter and the provisions of any such policy of insurance,
the policy provisions shall be controlling; provided,
however, that nothing contained in this section shall be
deemed to limit or restrict any employee's or official's
right to full coverage pursuant to this Chapter, it being
the intent of this Chapter and section to provide the
coverage detailed in this Chapter outside and beyond
insurance polcies which may be in effect, while not
compromising the terms and conditions of such policies by
any conflicting provision contained in this Chapter.
Section 2.06.090 Pending Claims. The provisions of this
ordinance shall apply to any pending claim or lawsuit
against an official or employee, or any such claim or law
suit hereafter filed, irrespective of the date of the events
or circumstances which are the basis of such claim or law
suit.
Section 2. A summary of this ordinance, attached
hereto as Exhibit A, shall be published in the official newspaper
of the City and shall take effect and be in full force thirty
(30) days after the date of publication.
APPROVED:
MAYOR, LAIRRY S. RAUGWTEN
ATTEST/AUTHENTICATED:
TY CLERK, JACQUELINE G. PARRETT
- 5 -
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY:
By
FILED WITH THE CITY LERK: November 13, 1985
PASSED BY THE CITY COUNCIL: November 19, 1985
PUBLISHED: November 24, 1985
EFFECTIVE DATE: November 19, 1985
ORDINANCE NO. 2535
EXHIBIT A
SUMMARY OF ORDINANCE NO 2535
AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON,
ESTABLISHING A NEW CHAPTER 2.06 INDEMNIFICATION
OF EMPLOYEES RELATING TO LEGAL ACTIONS BROUGHT
AGAINST CITY OFFICIALS AND EMPLOYEES, PROVIDING
FOR LEGAL REPRESENTATION FOR CONDUCT, ACTS AND
OMISSIONS ON BEHALF OF THE CITY WITHIN THE SCOPE
OF THEIR SERVICE OR EMPLOYMENT; PROVIDING FOR
THE TERMS, CONDITIONS AND EXCEPTIONS FROM SUCH
REPRESENTATION AND INDEMNIFICATION SPECIFYING
THE CIRCUMSTANCES UNDER WHICH CLAIMS AGAINST
CITY OFFICIALS AND EMPLOYEES WILL BE PAID BY
THE CITY; AND FIXING A TIME WHEN THE SAME SHALL
BECOME EFFECTIVE.
Section 1 Adopts a new Chapter 2.06 Indemnification of
Employees providing in its respective Sections as follows:
A. Section 2.06.000 defines the terms "official" and
"employee";
B. Section 2.06.010 provides for legal representation of
officials and employees;
C. Section 2.06.020 establishes exclusions from the
coverage of the Chapter;
D. Section 2.06.030 establishes a process for
determination of coverage and of exclusions from coverage;
E. Section 2.06.040 provides for the conditions
established as a prerequisite for representation and claims
payment;
F. Section 2.06.050 sets forth the effect of compliance
with the conditions for representation and claims payment;
G. Section 2.06.060 sets forth the consequences of failure
to comply with conditions of representation and claims
payment;
H. Section 2.06.070 provides for the circumstances under
which reimbursement shall occur;
I. Section 2.06.080 subordinates the Chapter to
conflicting provisions of any policy of insurance; and
0
J. Section 2.06.090 provides for coverage of pending
claims.
Section 2 sets an effective date of five days after
publication of this summary.
The full text of this ordinance will be mailed without
charge to anyone who submits a written request to the City
Clerk of the City of Edmonds For a copy of the text.
APPROVED by the City Council at their meeting of November
�1ioi�,x/,�,J��► 1985.
C Y C ERK, JACQU LINE PARRETT
STATE OF WASHINGTON,
>ss
COUNTY OF SNOHOP/.ISH,
EXHIBIT A
SUMMARY OF ORDINANCE NO. 2535AN ORDINANCE OF THE -
TON, ESTABLISHING AI TNEW CHAPY OF OTERS
IG206 IN-
DEMNIFICATION OF EMPLOYEES RELATING TO
LEGAL ACTIONS BROUGHT AGAINST CITY OFFI-
CIALS AND EMPLOYEES, PROVIDING FOR LEGAL
REPRESENTATION FOR CONDUCT, ACTS AND OMIS-
SIONS ON BEHALF OF THE CITY WITHIN' THE
SCOPE OF THEIR SERVICE OR EMPLOYMENT
PROVIDING FOR THE TERMS, CONDITIONS AND
EXCEPTIONS FROM SUCH REPRESENTATION AND
INDEMNIFICATION SPECIFYING THE CIRCUM-
STANCES UNDER WHICH CLAIMS AGAINST CITY
OFFICIALS AND EMPLOYEES WILL BE PAID BY
THE CITY; AND FIXING A TIME WHEN THE SAME
SHALL BECOME EFFECTIVE.
Section 1 Adopt a new Chapter 2.06 Indemnification of
Employees providing in its respective Sections as follows:..
A. Section 2.06.000 defines the terms "officigl" and "em-
plavee";
B. Section 2.06,010 .provides for legal representationof
officials and employees;
C..Section 2.06.020 establishes exclusions from the cover-
age of the Chapter;
D. Section 2.06.030 establishes a process for determination
of coverage and of exclusions from coverage;
E. Section 2.06.040 provides for the conditions established
as a prerequisite for reoresentation and claims pay- i
ment;
F. Section 2.06.050 sets forth the effect of compliance with.
the conditions for representation and claims payment;
G. Section 2.06.060 sets forth the consequences of failure
fo comply with conditions of representation and claims
Payment;
H. Section. 2.06.070 provides for the circumstances under
Which reimbursement shall occur;
1. Section 2.06.080 subordinates the Chapter to conflicting
provisions of any policy of insurance; and
J. Section 2.06.090 provides for coverage 'of pending
claims.
Section 2. sets an effective date of five days after publica-
tion of this summary. -"
The .full text of this ordinance will be riialled without
charge to anyone who submits 0 written request to the
City Clerk of the City of Edmonds for a copy of the text.
APPROVED by the City Council at their meeting of Novem-
ber 19. 1985. -
JACOUELINE G. PARRETT
City Clerk
Published: Nov. 24. 1985. ,
Affidavit of Publication
The undersigned, being first duly sworn on oath deposes and says
that she is Principal Clerk of THE HERALD, a daily newspaper
printed and published in the City of Everett, County of Snohomish,
and State of Washington; that said newspaper is a newspaper of
general circulation in said County and State; that said newspaper
I
as been approved as a legal newspaper by order of the Superior
Court of Snohomish County and that the notice ........................................
Summary of Ordinance ivo. 2535
...............................................................
...... .......................---
a printed copy of which is hereunto attached, was published in said
newspaper proper and not in supplement form, in the regular and
entire edition of said paper on the following days Iand times, namely:
'.?.T i .fl............................................................................
E�veE ver i9
........................................_..............--------..._.—.......................-------............_..................
and that said newspaper was regularly distributed to its subscribers
during all of said period.
f
...............•--------------. = ----------'...................... ................................ .r........
Principal Clerk
Subscribed and sworn to before me this............ S .. h
t-novenb e r 85
day of------------- .... ..- .. 19 -•-
t �.
t Nota' Public in and for the State of Washington,
resi ng at Everett, Snohomish County.
r,