§ 2-42. Indemnification of city officials.

(a)

Definitions. In this section the word "official" includes the mayor and every city commissioner, officer, agent, or employee of the city, whether elected, appointed, or employed, with or without compensation and also includes trustees, plan administrators and employees of the city's retirement systems. The word "official" shall also include any individual who, pursuant to hiring or promotional procedures of the city, participates in oral examinations of persons seeking employment or promotion, and it shall not be necessary that such individuals so participating be appointed by the city commission or by the city manager, appointment by the director of human resources of the city or by his designated assistant being sufficient to constitute any individual so appointed as an "official" under this section, regardless of whether such individual is an officer, agent or employee of any other city, governmental agency or entity.

(b)

Indemnification. Whenever in the performance of or in connection with the performance of official duties in behalf of the city an official has been involved or shall hereafter be involved in a dispute, proceeding, or litigation, either in a representative or personal capacity, with or without the city as a co-party in the matter, and if final judgment is entered against such official and such judgment becomes final, the city shall promptly indemnify such official to the extent allowed by state law. The city, to the extent allowed by state law, shall promptly preserve, protect, defend, aid and assist such official and exonerate, indemnify and hold harmless such official from and against any and all expenses, liabilities, claims, demands, proceedings, damages, losses, charges, advances, disbursements, payments, expenses, costs, including reasonable counsel fees, awards, settlements, judgments, decrees and mandates paid, incurred by or imposed upon such official in all disputes, proceedings, trials and appeals, by reason of such official being or having been a city official, even though he is no longer an official at the time the expenses are incurred or the claims are made against him. The protection guaranteed in this section shall exist during and after the term of office or employment for liabilities incurred during the term of office or employment.

(c)

Actions authorized. All officials of the city are hereby authorized, required and directed promptly to perform any and all acts necessary, expedient or proper to carry out the purposes of this section, including, but not limited to the following:

(1)

The city legal department shall appear in all disputes, proceedings, litigation and appellate proceedings and conduct the same in behalf of such officials and is authorized to incur costs and expenses.

(2)

The finance department shall promptly pay, disburse and reimburse the necessary funds required for such costs, expenses and indemnification and shall satisfy any awards, settlements, judgments, mandates or decrees recovered or entered against such officials, to the extent allowed by state law.

(3)

The city officials shall execute as principal or surety any and all judicial or other bonds, including supersedeas or appeal bonds, or post cash or securities in lieu of surety bonds.

(4)

The payment of all the foregoing sums is hereby declared to be a proper municipal purpose and expense, and the appropriation of all funds necessary for such payment is hereby authorized and made.

(d)

Duties of officials. Each official protected hereby shall promptly cooperate in his own defense, and shall:

(1)

Attend hearings, trials and depositions and furnish such evidence as shall be needed.

(2)

Grant the city full rights of subrogation and the right to recover under any claims, offsets or counterclaims of the protected official arising in connection with the controversy involved in this section; provided, that if the protected official shall recover any sum, then the city shall deduct all disbursements, costs and expenses of litigation, including attorney's fees, and any award against the city, and the remainder shall belong to the protected official.

(3)

Execute and deliver to the city all assignments, papers and documents needed to carry out the purposes of this section.

(e)

Nonliability of city. The obligation of the city in this section shall extend only to such officials, but nothing in this section shall extend the liability of the city to the general public, and no act or omission under this section shall constitute any waiver of defenses or any admission of liability to the general public.

(f)

Hearing. The city shall, for good cause, refuse to pay any judgment or decree entered against any official by following this procedure after a final judgment or decree, including any appellate proceedings:

(1)

The official shall be given a written notice, at least twenty (20) days before a hearing, and a written complaint showing that the official acted with malice, moral turpitude, wantonness, willfulness or reckless indifference to the rights of others. The notice shall state the particulars of the complaint with enough detail so that the person may prepare his defense.

(2)

At the hearing, which shall be before the city commission, the city and the official shall produce witnesses who shall give sworn testimony.

(3)

At the conclusion of the hearing, the commission shall make its findings of fact and conclusions on the evidence. If the commission shall conclude that the official acted with malice, moral turpitude, wantonness, willfulness or reckless indifference to the rights of others, then the commission shall refuse to pay all or a part of the judgment or decree.

(4)

If the official shall willfully fail or refuse to cooperate in his defense, then the commission may, to the extent that the city was damaged thereby, reduce the protection and indemnification provided under this section.

(Code 1953, § 2-13; Ord. No. C-2007, § 2, 2-25-64; Ord. No. C-76-119, § 1, 1-4-77; Ord. No. C-80-53, § 1, 7-1-80; Ord. No. C-95-4, § 1, 2-7-95; Ord. No. C-17-28 , § 1, 9-13-17)