(1) The City shall provide to an official or employee, subject to the conditions and requirements of this chapter, and notwithstanding the fact that such official or employee may have concluded service or employment with the City, such legal representation as may be reasonably necessary to defend a claim or lawsuit 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 his/her capacity as a City official or employee, which act or omission is within the scope of his/her service or employment with the City. The provisions of this chapter shall not operate to provide legal representation to defend a claim or lawsuit for any conduct, act, or omission resulting in the termination for cause of any official or employee.

(2) The legal representation shall be provided by the office of the City Attorney and may include the City Attorney engaging the services of outside legal counsel. If any provision of an applicable policy of insurance provides legal counsel for the employee or official, the City Attorney will work with the policy holder for purposes of obtaining legal representation under the existing insurance policy. If a conflict of interest or ethical bar exists with respect to said representation by the City Attorney, then the services of outside legal counsel will be engaged for the benefit of the employee or official.

(3) In the event that outside counsel is retained under subsection (2) of this section, the City shall indemnify the employee or official from the reasonable costs of defense; provided, that in no event shall the official or employee be indemnified for attorney’s fees in excess of the hourly rates established by the City’s contract with an attorney selected by the City. The official or employee shall be liable for all hourly rates charged in excess of said rate.

(4) The determination whether the official or employee was acting in good faith within the scope of his or her official duties shall be made by the City Manager’s office in consultation with the City Attorney and/or outside legal counsel. This determination shall be based on an investigation of the acts and circumstances surrounding the incident and shall be made as early in the proceedings as is reasonably possible. Once the determination is made, the official or employee involved shall be notified by the City Manager in writing. If the employee or official involved is the City Manager, the determination shall be made by the City Council in consultation with the City Attorney and/or outside legal counsel based on an investigation of the acts and circumstances surrounding the incident and shall be made as early in the proceedings as is reasonably possible. Once the determination is made, the City Manager shall be notified by the City Attorney, in writing. In any claim involving an allegation of criminal conduct, no investigation by the City will occur prior to a determination of guilt, or prior to a dismissal of the criminal charge with prejudice, so as not to compromise the official’s or employee’s Fifth Amendment right against self-incrimination. Any determination made under this section shall not be subject to appeal. (Ord. 01-10 § 2 (Exh. A))