sr-021478-6oSanta Monica, California, February 7, 1978
T0: Mayor and City Council
FEB 1 4 1978
FROM: City Staff
SUBJECT: Recommendation to Amend Sections of the Santa bfonica Municipal
Code Regarding Official Bonds of City Officers and Employees
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Introduction
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This report recommends several changes to the Santa Monica biunieipal Code
to update the Code as to current City policies regarding Official Bond Coverage
for City officers and employees.
Background
As part of the City's Risk Management Program, the City Staff requested
hiund, McLaurin Insurance Analysts to review the sections of the Municipal
Code pertaining to Public Official Bonds, including Faithful Performance
Bonds and Honesty Blanket Bonds. The recommended changes in the ordinance
sections 2612 (a) (b) ~ (c) reflect the current bond coverage program developed
by Mund, bicLaurin. The amended provisions a1Tow more flexibility in that
it permits the Council to:
1) adjust the bond coverage provided by the City periodically by
resolution.
2) eliminate specific bond limit coverage requirements for specific
personnel.
Current levels of bond coverage and ordinance adjustments recommended by
Mund, McLaurin are;
F E B i 4 1978
To: Mayor and;' ty Council
-2-
February 7, 1978
1) Public Official Borid Coverage for the City Treasurer at $250,000
maximum limit. Section 2612 (a), as amended, will allow Council
to provide Public Official Bond Coverage to the City Treasurer for
a sum not less than $100,000.
2) Faithful Performance Bond Coverage for specific employees including
City Manager; Grants Director; Environmental Services Director,
Recreation and Parks Director, Assistant City Manager, Finance
Director; City Clerk; City Attorney; Building Officer, General Services
Director, Fire Chief, Police Chief; Planning Director, Administrative
Services Director; City Librarian, Director of Civic Auditorium,
Transportation Director; Airport Director, Data Processing Manager,
Enterprises Manager; City Engineer;. all other than non-clerical
City employees of Transportation Director's Office,: fora maximum
limit of $250,000. Section-2612 (b); as amended;will allow the
Council to adjust specific coverage for specific employees by resolution
periodically with no maximum limit set.
3) Honesty Blanket-Bond Coverage for all other employees of the City
for a maximum level of`$250,000, .Section 2612 (c), as amended;
will allow Council to adjust limit of coverage as required periodically
by resolution.
To: Mayor and` ',y Council
-3-
February 7, 1978
Re comtnen dat ion
The City Staff recommends that the City Council direct the City Attorney
to draft an ordinance incorporating the changes recommended within this
report.
Prepared by: LARRY J. KOSMONT
Administrative Assistant
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