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A. The determination of whether an official or employee shall be afforded a defense by the City under the terms of this chapter shall be made by the City Council on the recommendation of the City Manager. The decision of the City Council shall be final as a legislative determination and shall be based upon a finding that an official or employee meets or does not meet the criteria of this chapter. Nothing herein shall preclude the City from undertaking an officer’s or employee’s defense under a reservation of rights. The determination as to whether a defense is to be furnished as provided under this chapter to a member or to members of the City Council shall be made without the vote of such member or members of the City Council unless the inclusion of such member or members is required for a quorum; provided, that if a claim or lawsuit affects a quorum or greater number of the members of the City Council, all such affected members shall retain their voting privileges under this section.

B. In cases which pose the potential for an award of punitive damages against City officials or employees acting in the course of employment, such as certain tort and civil rights actions, the City shall issue a reservation of rights, as referenced in subsection A of this section, to each individual employee who may be exposed to such individual liability. The City, as directed by the City Manager, shall further conduct an investigation, the findings of which shall be presented to the City Council for a determination as to whether any punitive damages awarded shall be paid by the City.

C. If any such action or proceeding results in any monetary judgment against such City official or employee, the City Council shall, by resolution, provide for the City’s payment in full of such judgment. Upon consideration of the particular facts of the case, as determined through the City Manager’s investigation, the City Council may also provide for the City’s payment of any punitive damages included in such judgment; provided, however, that this provision for payment by the City of punitive damages on behalf of a City official or employee under this chapter shall not be construed as a waiver of the City’s immunity to punitive damages. [Ord. 692 § 1, 2018; Ord. 19 § 5, 1995.]