The purpose of this Mayor and Council Communication (M&C) is to adopt an ordinance updating the City's Personal Liability Indemnity Plan (PLIP) to clarify and revise coverage provided related to the use of a City vehicle while not in the scope of employment in conformance with state law. The PLIP provides coverage for negligence-related liability of employees, officers, and volunteers under certain conditions. In addition to outlining coverage criteria and procedural requirements, the PLIP sets a maximum amount of financial liability that the City will cover for an event. Currently, that amount is set at $100,000 per occurrence regardless of the nature of the liability exposure. With respect to motor vehicle liability, Texas law (i) provides statutory minimum amounts per-claimant and per-event for bodily injury or death and per-event for property damage or destruction; and (ii) requires the City to provide at least the statutorily required minimum coverage for peace officers and fire fighter's operating, maintaining or using a motor vehicle owned or leased by the City. Adoption of the recommended amendments would clearly separate motor vehicle coverage from other liability under the PLIP for use of a City vehicle while not in the scope of employment, provide motor vehicle coverage that meets the minimum amount required for motor vehicle insurance under Texas law for all employees and officers operating City vehicles while not in the scope of employment, and retain the current per-incident limit for all other types of third-party liability including use of a City vehicle while in the scope of employment. The Ordinance also adds and revises definitions consistent with these changes and makes minor conforming changes and updates elsewhere, such as revisions to eliminate references to Risk Management being within the Financial Management Services Department. This M&C does not request approval of a contract with a business entity.
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