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(1) If the City’s investigation under CMC 2.55.030 determines that an official or employee does not come within the provisions of this chapter and a court of competent jurisdiction later determines that such claim does come within the provisions of this chapter, then the City shall pay any judgment, excepting punitive damages, rendered against the official or employee and reasonable attorney’s fees incurred in defending against the claim if said judgment is not covered by the City’s insurance provisions or by the official’s or employee’s insurance. The City shall pay any costs and reasonable attorney’s fees incurred by the employee or official in obtaining the determination that such claim is covered by the provisions of this chapter; provided, that if a court of competent jurisdiction determines that such claim does not come within the provisions of this chapter, then the official or employee shall pay the City’s costs and reasonable attorney’s fees incurred in obtaining the determination that such claim is not covered under the provisions of this chapter.

(2) If the City determines that a claim against a City official or employee does come within the provisions of this chapter and a court of competent jurisdiction later finds that such claim does not come within the provisions of this chapter, then the City Council shall have the option of requiring reimbursement by the official or employee for costs or expenses incurred in obtaining the determination that such claim is not covered by the provisions of this chapter. (Ord. 01-10 § 2 (Exh. A))