sr-042778 (2)CA RLK:SIS b
Santa Monica, California
April 27, 1978
TO: Mayor and City Council
FROM: City Attorney
SUBJECT: Ordinance Amending Sections 2612A, 2612B and
2612C of the Santa Monica Municipal Code,
Relating to Public Official Bonding
Introduction
This report transmits the attached ordinance which
amends the public bonding provisions of the Santa Monica
Municipal Code.
Background
The City Council requested this ordinance at
its meeting of February 14, 1978.. The ordinance follows
changes recommended by Mund, McLaurin Insurance Analysts
as follows:
1. The amended provisions allow more flexibility
by permitting the City Council to adjust bond coverage
provided by the City periodically by resolution, and by
eliminating specific bond limit coverage requirements for
specific personnel.
2. Bond coverage for the City Treasurer is
established at a Two Hundred Fifty Thousand Dollar maximum
limit, with a One Hundred Thousand Dollar minimum limit.
3. Faithful performance bond coverage for
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certain specific employees (mainly department heads) is
provided for, with no maximum limit. Specific coverage
may be established or adjusted periodically by resolution
of the City Council.
4. An honesty blanket bond coverage provision
is established for all other employees of the City at a
maximum level of Two Hundred Fifty Thousand Dollars.
A copy of the previous staff report is attached
for information purposes.
Alternative Solutions
Not applicable.
Recommendation
It is respectfully recommended that the City
Council introduce the attached ordinance for first reading
and hold a public hearing thereon.
Prepared by: Richard L. Knickerbocker, City Attorney
Samuel I. Streichman, Assistant City Attorney
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