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HomeMy WebLinkAboutAGENDA REPORT 2000 0301 CC REG ITEM 11GTO: FROM: DATE: MOORPARK CITY COUNCIL AGENDA REPORT Honorable City Council rrEM //.&-. CITY OF of ✓1&r-f11, d.lom ©, r WD-17SY BY: John E. Nowak, Assistant City Manager 20 February 2000 (Council Meeting of 03/01/00) SUBJECT: Consider Resolution No. 2000 - Establishing the Sum of Bonds Required of Specified City Employees. BACKGROUND: State law requires that Public Official bonds be carried on the City Treasurer and City Clerk. The City of Moorpark has included the City Manager although not required by the Municipal Code. Bonds in the amount of $100,000 have been carried for the individuals holding these positions. No other City employees have been covered under fidelity or performance bonds. The City has the ability to include the three positions under a master bond at a higher coverage amount which will also cover other City employees and officials. DISCUSSION: The California Government Code Section 36518 requires Public Official bonds to be carried for City Treasurer and City Clerk. The City of Moorpark has carried bonds on the City Manager although not required by the Municipal Code. One hundred thousand dollar ($100,000) bonds have been provided for the individuals appointed to these positions at a combined cost of $1,200 per year. In 1997 State law was changed to allow the bonds required for the Treasurer and City Clerk to be covered under a Master Bond that would include all employees. Also, with some duties of the City Clerk (certifying to warrant payments) having been assigned to the Finance Manager in Moorpark, that position is also required to be bonded. 0001:16 Resolution - Employee Bonds Meeting of 01 March 2000 Page 02 Using the California Joint Powers Insurance Authority's (CJPIA) underwriter, Moorpark is able to cover all full - time employees, the City Council and the Planning Commission under a one million dollar ($1,000,000) Blanket Fidelity Bond with a $5,000 per occurrence deductible. The premium for this blanket bond is estimated to be $1,500 per year (the actual cost will be determined when submitted to the underwriters). A summary of the coverage is attached. In order for the blanket bond to be used for the two required positions, the City Council must adopt a resolution establishing the bond amount. The attached resolution fulfills the requirement of State law. RECOMMENDATION: Adopt Resolution No. 2000- establishing the sum of bonds required of specified city employees. Attached: Resolution Summary of Coverage 00®11', RESOLUTION NO. 2000- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, ESTABLISHING THE SUM OF BOND REQUIRED OF SPECIFIED CITY EMPLOYEES. WHEREAS, Government Code Section 36518 requires the City Council, by resolution, to establish the penal sum of bond for the positions of City Clerk and City Treasurer; and WHEREAS, Government Code Section 37209 requires execution of a bond by the Director of Finance where duties imposed by law upon the City Clerk are transferred to the Director of Finance; and WHEREAS, the City of Moorpark has required a Public Official Bond for the City Manager; and WHEREAS, the purpose of this resolution is to establish the amount of the bond for the above mentioned positions. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES RESOLVE AS FOLLOWS: SECTION 1. Bonds for the City Clerk, City Treasurer, City Manager and Finance Director shall be in accordance with the attached Exhibit A. SECTION 2. The City Clerk shall certify to the adoption of the resolutions and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 1st day of March 2000. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk 00011,146 Attachment: Exhibit A Resolution No. 2000- EXHIBIT A Summary of Blanket Bond Coverage Faithful Performance Bond Limit Deductible Depositor's Forgery Limit Deductible: $1,000,000.00 $ 5,000.00 per occurrence $1,000,000.00 $ 5,000.00 per occurrence Crime - Money and Securities Limit $1,000,000.00 Deductible: $ 5,000.00 per occurrence 00011.:) Jan -26 -00 05:36pm From - ROBERT F. DRIVER CO. INC. 9497562713 7-241 P.02 F -417 CALIFORNIA )PIA n Moody Aveaoc w, , La Fal California" January 1, 1999 80 PB 99 (Supersedes FB 98) Summary of Coverage BLANKET FIDELITY BOND Faithfal Performance Bond Provides coverage for employee dishonesty and failure of any employee to faithfully perform their duties. Includes all employees, the Agency Treasurer, Agency Clerk and /or Tax Collector and any employee required by law to be individually bonded. Limit: 51,000,000 per city Deductible: $5,000 per occurrence Depositoies Forgery Covers loss by forgery or alteration of, on or in any check draft, promissory note or similar written promise, order or direction to pay money that is made or drawn upon the Member's accounts by someone acting as the Member's agent or that are purported to have been so made or drawn. This coverage protects you against forgery losses caused by a person other than an employee. Limit: Deductible: $1,000,000 per city $5,000 per occurrence Clime - Moucy amd Securities Covers loss of your money or securities by theft, disappearance or destruction while they are on your premises or on banking premises, or while your money or securities are outside your premises in the possession of a messenger. This coverage protects you from theft, robbery and safe burglary caused by persons other than an employee. Limit Deductible $1,000,000 per city $5,000 per occurrence Computer Fraud Theft directly related to the use of any computer to fraudulently cause a transfer of money, securities or other property from inside the premises or banking premses to a person or place outside those premises. Limit: $1,000,000 per city Deductible: $5,000 per occurrence CALiFORN1A JPIA Members' individual premium calculations are based on total number of employees and the insurer's minimum premium requirements. Excess litnits are available for additional premium. Rev: up/" crvuooSUKDOc 0001() o 166 JAN 26 '00 17:04 9497562713 PAGE.02