Subd. 1. Purpose. In recent years there has been a loss of sovereign immunity for municipal functions and employees and a trend has developed wherein municipalities, their officers, employees and agents have been joined in litigation and a number of these lawsuits have been filed naming, officers, employees and agents individually in lawsuits. As a result of this trend in the law, it becomes more difficult to obtain the services of citizens who are reluctant to volunteer for service in municipal government and to assume individual liability when acting in behalf of the City. City council members, employees and officers are in the normal course of events, participants in many controversial decisions which result in litigation and subject the individuals to concern regarding personal liability.

It is the purpose of this ordinance to unequivocally state that the City of Mound will protect its City officials elected or appointed, including members of the Planning Commission, Board of Zoning Appeals, Park Commission and other Commissions appointed by the City Council in performing their duties to promote the public health, safety and general welfare. Public officials must be in a position to make decisions when they are needed and to act to implement decisions of the City Council. Action on controversial subjects and implementing policy decisions can and will result in errors on the part of an employee or an elected or appointed official, and it is determined that it is better that said officials act and risk some error and possible injury from such actions rather than not to act at all.

The public health, safety and general welfare will be promoted and preserved by providing assurances to these individuals that they will be supported by the municipality in carrying out their official duties.

Subd. 2. Defense and Indemnification. The City shall defend, save harmless and indemnify any of its officers and employees, whether elected or appointed, and specifically including members of its advisory commissions, against any tort, claim or demand, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of their duty. This responsibility to defend and indemnify does not apply in cases of malfeasance in office or willful or wanton neglect of duty.

Subd. 3. Defense Counsel. The City Council will designate the City Attorney or legal counsel representing an insurance carrier for the City to defend the City's employees and officers against all such lawsuits wherein the employee or officer is individually named as a defendant. The city shall continue to represent the employee or officer if the decision is appealed to a higher court, or the City Council may authorize the appeal of any decision against the officer or employee to a higher court.

Subd. 4. Right to Personal Counsel. The provisions of this section of the Code shall not supersede or preclude the officer's or employee's right to retain at his/her own expense his/her personal legal counsel to provide for this defense. The determination as to whether to use the City's legal counsel, for which the City shall be responsible for defense costs, or whether the officer or employee chooses to use his/her own individual counsel at his/her own expense, shall be at his/her option, and if the official selects his/her own attorney, this shall relieve the City from all present and future obligations as they relate to any defense or indemnification of the officer of employee for the alleged tort, claim or demand. (Ord. #3 - 5-11-87)