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HomeMy WebLinkAbout1981-07-21; City Council; 6686; Bonding of public officials and employeesy : f ' tt CITY OF CARLSBAD - , ' '. *•*'' . ^^7 ',' . . AGENDA BILL NO._ DATE: July-: 21',: ,19 81 • ' 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. 1 2 •3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 22 23 24 25 26 27 28 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." XXX XXX XXX XXX 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 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 •& ' ATTEST: RONALD C. PACKARD, Mayor MARYH. CASLER, Vice-Mayor ALETHA L.~ RAUTll^KRAN7r^ity^Terk\ (SEAL) 22 23 24 25 26 27 28