HomeMy WebLinkAbout1981-07-21; City Council; 6686; Bonding of public officials and employeesy : f ' tt CITY OF CARLSBAD
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AGENDA BILL NO._
DATE: July-: 21',: ,19 81
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DEPARTMENT:Purchasing
Initial: Y) /
Dept. Hd. /r^
C. Atty.
C.
SUBJECT: Bonding of Public Officials and Employees
Statement of the Matter '
At the present time, the Carlsbad Municipal Code requires .a bond for the CitytManager, Acting City Manager, Finance Director and Purchasing. Officer.. Each .
of these officials is"' bonded for'-;$25,000. In addition to these officials,
both';1 the City Clerk and City Treasurer are required by state law to be bonded
before assuming;the duties of their office (Government Code, Section36518), :
In view of the increasing dependence on computer equipment and the growing
increase of wh'ite collar crimer the City's Risk Management consultant
recommends the limits on the employee honesty bond be increased from $10jOOO
to $500,000 or possibly $1,000,000. When the Public Employees Blanket Honesty
Bond was.renewed, the bonding limit was raised to $500,000. -Since all employees
are covered under this bond; there is no practical benefit to purchase individual
bonds for the City Manager, Acting: City Manager, Finance Director .and Purchasing
Officer. Therefore, the sections of the Code that relate to the bondiing of these
officials can be deleted and a section requiring the blanket bonding of employees
can be added. . . -.,'-.; . . •',' • , . ; "'."•', , •'?-..'". ".'•'"•''
Fiscal Impact . ; . . . '.
The officers and employees bond coverage in 1980 was as follows: . ,
Type of Coverage . : Limit
Public Employee Blanket Honesty Bond $10,00(
City Clerk
City Treasurer
City Manager
Acting City Manager
Finance Director \ ...
Purchasing Officer •
$10:
5,
25,
25,
25,
25,
25,
000
000
000
000
000
000
000
Deductible
-0-
-0-
- -0-
-0-:,
-0-
-Q- .
-0-
Premi urn
$ 780
. 20
125
88-
63
..••'88.'
'.' ; 94
1980 Total Premi urns $1,258
New Coverage
Type of Coverage Limit
Public Employee Blanket Honesty Bond $500,000
City Clerk , 5,000
City Treasurer 25,000
Deductible
$1 ,000
-0- „-o- •••:•
Premi urn
$1,955
20
125
I
I
1981 Total Premiums $27100"".'
Funds for the bond premiums are included in the Insurance Account, 01-103-2870.
Page 2
Agenda Bill
EXHIBIT
Ordinance No.
RECOMMENDATION
Introduce Ordinance No. /£-3j , deleting certain
sections of the Carlsbad Municipal Code related to the
bonding of city officials and amending Section 2.08.040
to include the bonding of public employees.
.COUNCIL ACTION:
7-21-81 Council Introduced Ordinance No. 1239.
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ORDINANCE NO. 1239
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING TITLE 2, CHAPTERS '
2.08, 2.12, AND 2.20, AND TITLE 3, CHAPTER 3.28
OF THE CARLSBAD MUNICIPAL CODE BY THE AMENDMENT
OF SECTION 2.08.040 TO REQUIRE AN HONESTY BOND
FOR ALL CITY EMPLOYEES, BY THE DELETION OF SECTIONS
2.12.020 AND 2.20.040 AND BY THE AMENDMENT OF SECTION
3.28.040 TO ELIMINATE THE BONDING REQUIREMENT FOR THE
CITY MANAGER, ACTING CITY MANAGER, FINANCE DIRECTOR
AND PURCHASING OFFICER. -.
The City Council of the City of Carlsbad, California, does ordain as
follows:
SECTION 1: That Title 2, Chapter 2.08.040 of the Carlsbad Municipal Code
is amended by the amendment of Section 2.08.040 to read as follows:
"2.08.040 Officers' and Employees' Bonds, (a) Wherever bonds are required
for officers or employees of the city, the premiums on such bonds shall be paid
by the city.
(b) Bonds for the faithful discharge of their duties shall be required as
follows:
City treasurer ...... $25,000.00
City clerk ........ 5,000.00
(c) An Employees Honesty Bond is required, the amount of which shall be
determined by the City Manager."
SECTION 2: That Title 2, Chapters 2.12 and 2.20 of the Carlsbad Municipal
Code are amended by the deletion of Sections 2.12.020 and 2.20.040.
SECTION 3^ .That Title 3, Chapter 3.28 of the Carlsbad Municipal Code is
afnerided by the amendment of Section 3.28.040 to read as follows:'
"3.28.040 Purchasing Officer. There is created the position of purchasing
officer. The purchasing officer shall be appointed by the city manager and,
in the absence of such an appointment, the functions of such position shall be
performed by the city manager. The purchasing officer shall have general
supervision of the purchasing department and shall have general supervision of
the purchasing system set out in this chapter. The duties of the purchasing
officer may be combined with those of any other office or position."
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EFFECTIVE DATE: This Ordinance shall be effective thirty days after its
adoption, and the City Clerk shall certify to the adoption of this ordinance
and cause it to be published at least once in the Carlsbad Journal within •
fifteen days after its adoption. !
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City
Council held on the 21st day of July , 1981, and thereafter
PASSED, APPROVED AND ADOPTED at a regular meeting of said City Council,
held on the 4th day of August , 1981, by the following vote, to wit:
.AYES:
NOES:
Council Members Casler, Anear, Lewis and Kulchin
None •
ABSENT: Council Member Packard
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ATTEST:
RONALD C. PACKARD, Mayor
MARYH. CASLER, Vice-Mayor
ALETHA L.~ RAUTll^KRAN7r^ity^Terk\
(SEAL)
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