HomeMy WebLinkAboutAGENDA REPORT 1985 0429 CC ADJ ITEM 08B MOORPARK
ALBERT PRIETO _ _ ---. STEVEN KUENY
Mayor ` City Manager
JAMES Dr WEAKCHERYL A tJ.o KANE
Mayor Pro Tern %%%/��„ City Attorney
THOMAS C. FERGUSON �e,��� NIALL FRITZ
CouncilmemberY .Y�`(S Directorm iof
t
DANNY A. WOOLARD .� Community
Councilmember Development
LETA YANCY-SUTTON R. DENNIS DELZEIT
Councilmember City Engineer
DORIS D. BANKUS JOHN V.GILLESPIE
City Clerk Chief of Police
JOHN C. GEDNEY
City Treasurer
MEMORANDUM
TO: The Honorable City Council
FROM: Steven Kueny, City Manager , fr
DATE: April 25, 1985
SUBJECT: Employee Bond
The City recently received notification from Fireman ' s Fund of
cancellation of our policy for the Public Employees Blanket Bond
and Money & Securities coverage , effective April 26, 1985. The
Fireman ' s Fund coverage and available options are as follows :
Fireman 's Fidelity Fidelity Ohio American
Fund & Deposit & Deposit Casualty Motorist
Faithful Performance $3 M -0- -0- $500, 000 -0-
Honesty Bond Part of Part of 1
above $3 M $1 . 5 M above $1 M
Deductible -0- $10 , 000 $5, 000 $5, 000 $ 250
Premium -- $1 , 727 $ 1 , 152 $ 925 $ 553 $ -960
Money & Securities $5 , 000 $ 5 , 000 $5, 000 N/A $5, 000
Deductible -0- -0- -0- N/A $ 250
Premium Part of
above $ 494 $ 494 N/A $ 547
TOTAL PREMIUM $1 , 727 $1 , 646 $1 , 419 $ 553 $1 , 407
As you can see from the table, the existing coverage cannot be dupli-
cated by the four (4) available options . The City ' s broker has stated
that few, if any, public agencies have such high limits on the faithful
799 Moorpark Avenue Moorpark, California 93021 (805)529-6864
The .Honorable City Council
Page 2
April 25, 1985
performance and honesty bond. He stated that Ventura County has only
$1M in coverage. He also felt that the faithful performance portion
may not be needed, since claims are very rare. He cited the only in-
stance he was aware of, involving a school superintendent who pur-
chased equipment at a cost exceeding the purchase limits permitted,
and in which case the equipment was faulty. Generally, the honesty
bond portion is sufficient, since most cases are likely to involve
mishandling (misappropriation) of funds.
The Money and Securities covers losses from other than employees, for
such things as robbery, burglary, theft or unexplained loss. The
City' s broker also suggested consideration of self-insuring for this
coverage, since most business is transacted with checks. With the
initiation of recreation programming, such as dances, we do receive
some cash, but shouldn' t exceed $500. 00 at any one time.
RECOMMENDED ACTION
It is recommended that the Ohio Casualty policy be accepted for
faithful performance coverage and that the City self insure for
Money and Securities coverage.
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