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If legal representation of an official or employee is undertaken by the City, whether by the City Attorney or by an attorney obtained by the City or through its insurance coverage, and all of the conditions of representation are met, and a judgment is entered against the official or employee or a settlement is made, the City shall pay such judgment or settlement according to the provisions herein; provided, that the City may at its discretion appeal as necessary any such judgment. In no event shall this section be interpreted to provide for payment of an award of punitive damages. The process for payment of punitive damages is discretionary under this chapter, and is set forth in CMC 2.55.140. The decision to appeal an award of damages will be made by the City Council upon the recommendation of the City Manager and the City Attorney and/or outside legal counsel. (Ord. 01-10 § 2 (Exh. A))