Subtitle 13 – Self-Insurance Program for Commodity, Service, and Construction Contracts
Current through 2026-07-17. Source: City of Balt., Md., Ord. 26-129. Published by the Baltimore City Department of Legislative Reference.
Balt., Md., Code art. 5, § 13-1 (2026)
§ 13-1 Definitions.LinkCopy Citation
(a)Self-Insurance Program.
The term “Self-Insurance Program for Commodity, Service, and Construction Contracts” (Self-Insurance Program) as used herein shall mean the self-insurance program of the City as provided in this subtitle for the payment of monetary claims arising from any loss, damage, or expense which the Mayor and City Council of Baltimore may sustain by reason of the failure of a service, commodity, or construction contractor to comply with the terms of any contract not exceeding $200,000 which said contractor has entered into with the Mayor and City Council of Baltimore.
(b)Self-Insurance Fund.
The term “Self-insurance Fund for Commodity, Service, and Construction Contracts” (Self-insurance Fund) as used herein shall mean the appropriation provided in the annual Ordinance of Estimates to pay any claims authorized by this subtitle.
(c)Liability Reserve Fund.
The term “Liability Reserve Fund for Commodity, Service, and Construction Contracts” (Liability Reserve Fund) as used herein shall mean the fund that is to be accumulated as set forth in this subtitle to pay any claims ordinarily payable by the Self-Insurance Fund, provided the Self-Insurance Fund has been depleted in that fiscal year.
(d)Contractor.
The term “contractor” as used herein shall mean any person, firm, or legal entity with whom the City has entered into an agreement.
(e)Construction.
The term “construction” shall mean the repair, renovation, construction, or maintenance of any property owned by the City of Baltimore or financed in whole or in part by the City of Baltimore.
History: Ord. 86-774
History: Ord. 89-362
Balt., Md., Code art. 5, § 13-2 (2026)
§ 13-2 Program established.LinkCopy Citation
(a)Coverage.
The Mayor and City Council of Baltimore shall implement a Self-Insurance Program for Commodity, Service, and Construction Contracts for the reimbursement of any losses the City sustains through the default of a commodity, service, or construction contractor under a contract not exceeding $200,000.
(b)Self-Insurance Fund.
(1)
A Self-Insurance Fund shall be established to be used to pay for losses and other expenses of implementing and operating the Self-Insurance Program.
(2)
Monies for said Fund shall be appropriated annually in the Ordinance of Estimates in an amount approved by the Board of Estimates.
(c)Payment of claims.
(1)
Payment of any and all claims under the Self-Insurance Program for losses sustained by the Mayor and City Council of Baltimore shall be made from the Self-Insurance Fund by the City Solicitor upon certification by the head of the procuring agency that the Mayor and City Council of Baltimore has sustained a loss due to the default of a commodity, service, or construction contractor.
(2)
Provided, however, that for any claim exceeding $5,000, the City Solicitor shall not have authority to make any payments pursuant to this Act without both a certification of loss by the head of the procuring agency and subsequent approval by the Board of Estimates.
(3)
And provided further, that in any case where the decision is contested by a contractor, the decision to pay the claim is subject to approval by the Board of Estimates.
(d)Annual excess to go to Reserve Fund.
Any monies remaining in the Self-Insurance Fund at the end of any fiscal year, including any interest accrued thereon, shall be turned over to the Director of Finance to be placed in the Liability Reserve Fund.
(e)Rules and regulations.
Subject to Title 4 {“Administrative Procedure Act – Regulations”} of the <cite data-path="|general">City General Provisions Article</cite>, the Board of Estimates shall have the authority to promulgate rules and regulations for the administration of this program.
History: Ord. 86-774
History: Ord. 89-362
History: Text Conformed 02/14/21
Balt., Md., Code art. 5, § 13-3 (2026)
§ 13-3 Liability Reserve Fund — established.LinkCopy Citation
(a)Fund established; annual appropriations.
(1)
The Director of Finance is hereby authorized and directed to create a fund to be known as the “Liability Reserve Fund for Commodity, Service, and Construction Contracts” (Liability Reserve Fund) for which purpose a sum shall be appropriated annually in the Ordinance of Estimates.
(2)
The appropriation to the Liability Reserve Fund shall continue with the accumulations thereto, together with the earnings of the same and the balance from the Self-Insurance Fund, less any expenditures or disbursements therefrom as may be made.
(b)Limit on appropriations.
The Reserve Fund shall continue to accumulate in the aforesaid manner to the maximum amount established in an ordinance approved by the Mayor and City Council upon the recommendation of the Board of Estimates. Any monies remaining in the Liability Reserve Fund at the end of any fiscal year in excess of the maximum amount established by ordinance shall be credited to the General Fund of the City.
(c)Board of Finance to hold.
The appropriation so made and any other sums paid to the Fund shall be turned over by the Director of Finance to the Board of Finance of the Mayor and City Council of Baltimore, to be held and invested by the Board of Finance.
History: Ord. 86-774
Balt., Md., Code art. 5, § 13-4 (2026)
§ 13-4 Liability Reserve Fund — when to be used.LinkCopy Citation
The Liability Reserve Fund shall be used to pay any losses which the Mayor and City Council of Baltimore sustains pursuant to its Self-Insurance Program, only after the sums provided for in <cite data-path="|5|§13-2">§ 13-2 of this subtitle</cite> have been fully expended or encumbered.
History: Ord. 86-774
Balt., Md., Code art. 5, § 13-5 (2026)
§ 13-5 Payment under Program not waiver of remedies.LinkCopy Citation
(a)City may pursue remedies against defaulting contractor.
No provision of this subtitle shall be interpreted or construed to prevent the Mayor and City Council of Baltimore from pursuing any remedy at law available to it against a defaulting commodity, service, or construction contractor whose failure to comply with the terms of a contract results in a loss to the City.
(b)Remedies cumulative.
All remedies provided by this subtitle are cumulative with all other remedies available to the City at law. Payment of a claim under this subtitle shall not prohibit the Mayor and City Council from pursuing civil remedies in order to recover any damages sustained by the City, even if the recovery exceeds any claim paid under this subtitle.
History: Ord. 86-774
Balt., Md., Code art. 5, § 13-6 (2026)
§ 13-6 Investments; annual statement.LinkCopy Citation
The Board of Finance for Baltimore City is hereby authorized and directed to:
(1)
receive the monies directed to be paid to it by the Director of Finance;
(2)
hold and invest the same as other monies in its charge are held and invested;
(3)
retain the same as a permanent fund to be used only for the payment of claims as provided in §§ 13-2 and 13-4 of this subtitle;
(4)
keep a separate account of said fund, together with the earnings thereof, as the “Liability Reserve Fund for Commodity, Service and Construction Contracts” of the Mayor and City Council of Baltimore; and
(5)
submit annually to the Director of Finance a statement in writing showing the state and amount of said fund.
History: Ord. 86-774
Balt., Md., Code art. 5, § 13-7 (2026)
§ 13-7 Annual report.LinkCopy Citation
After the close of each fiscal year, the Director of Finance shall report to the Mayor and City Council the year-end fund balances of the Self-Insurance Fund and the Liability Reserve Fund, the amount of excess funds credited to the General Fund, and the claims paid under this Self-Insurance Program, by itemizing in sufficient detail the total amounts paid for applicable commodity, service, and construction contracts.
History: Ord. 86-774