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A. In any civil action or proceeding, except as limited in subsection B of this section, brought against an officer, employee or former employee in his or her official capacity or individual capacity, or both on account of an act or omission in his or her employment as an employee of the city, the city shall provide, at its expense, for the defense, including, but not limited to, investigation, settlement or settlement negotiation where appropriate, all legal costs, and costs of defense whether or not allowed by court, attorneys’ fees, and appeal to the extent appropriate, and shall pay or indemnify such officer or employee from payment of any judgment or settlement found to be payable by the city or by such officer or employee in any case arising out of or connected with alleged acts or omissions to act in the performance of any official duty of such officer or employee.

B. The city shall not provide for the defense or any payment with regard to an officer, employee or former employee where:

1. Such defense or payment is prohibited by federal or state constitutions or by statute binding upon the city; or

2. The action is brought voluntarily by the city against such officer or employee to determine liability for, or to recover sums payable to the city by such officer or employee; or

3. Any disciplinary proceedings against such officer or employee; or

4. The act or omission complained of was done because of actual fraud, malice or corruption and not in good faith performance of official duties; or

5. Such officer or employee fails to reasonably cooperate in good faith in the defense of the claim or action.

C. The city may enter into an agreement with an officer, employee or former employee to conduct the defense, when there is a dispute as to whether the claim arose out of or occurred within the scope of employment or duties, and such agreement may reserve the right not to pay the judgment, compromise or settlement unless and until it is established that such claim arose out of an act or omission within the scope of employment or the performance of duties.

D. Nothing in this section shall be construed to require the city to purchase any particular form or amount of insurance coverage, nor prohibit the city from acquiring any specific insurance coverage. (Prior code § 3.14.320)