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Date: OS112102 Item: VIL A. Ordinances/Resolutions August 8, 2002 T0: Neal FROM: Joel RE: Revised Draft to City Indemnification Ordinance As requested, I have modified the proposed draft revisions to the City's Indemnification Ordinance. I made several changes to the previous draft. They generally include provisions applicable to Minnesota nonprofit corporations. Those sections were added to state law in 1989 and are more detailed than the defense and indemnification provisions for cities. Because the dispute resolution mechanism provided for nonprofits could not be directly translated to our municipal structure given the lack of shareholder meetings, etc., I fashioned an alternative that somewhat approximates the procedures used by nonprofits. I also revised section 105.07 to more closely conform the text of the ordinance to the state statute allowing for reimbursement for criminal defense consistent with 465.76. For reference, the statutes used to prepare this draft ordinance are reprinted below: 1) 466.07 Indemnification. Subdivision 1. Indemnification required. Subj ect to the limitations in section 466.04, a municipality or an instrumentality of a municipality sha11 defend and indemnify any of its officers and employees, whether elective or appointive, for dama�; including punitive damages, claimed or levied against the officer or employee, provided that the officer or employee: (1) was acting in the performance of the duties of the position; and (2) was not guilty of malfeasance in office, willful neglect of duty, or bad faith. 2) 465.76 May pay for officer or employee's criminal defense. Subdivision 1. If lawfully doing duty. If reimbursement is requested by the officer or employee, the governing body of a home rule charter or statutory city, a town or a county may, after consultation with its legal counsel, reimburse the city, town or county officer or employee for any costs and reasonable attorney's fees incurred by the person to defend charges of a criminal