3.60.050 Risk Retention.
(A) It shall be the city’s general policy to retain certain risks by self-insuring under the following circumstances:
(1) When the loss will occur with predictable frequency and in an amount which will not have a substantial impact on the city’s financial position, recognizing:
(a) the ability of the city to finance losses from its operating budget;
(b) the amount of the city’s reserve fund described in Section 3.60.120;
(c) capacity of the city to borrow money to pay judgments and certain other losses; and
(d) ability of the city to administer a self-insurance program, including the provision of legal defense;
(2) When the probability of occurrence is so remote that the cost of insuring the risk would be unwarranted use of public moneys;
(3) When insurance is not available, or available only at a prohibitive cost.
(B) Exceptions to these general guidelines shall be as listed in Section 3.60.070. (Ord. 97-135 § 2, 1997; Ord. 89-98 § 1, 1989.)