AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 11/20/2018
TO: Honorable Mayor and City Council Members
FROM: Legal and Risk Management Department
SUBJECT:
Title
City Council consideration of Resolution No. 2018-124 authorizing the City to continue to purchase government crime insurance in lieu of bonds for officers and employees.
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RECOMMENDED ACTION:
Recommended action
That the City Council adopt Resolution No. 2018-124 authorizing the City to continue to purchase government crime insurance in lieu of bonds for officers and employees.
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ANALYSIS:
Government Code Section 36518 requires bonds to be executed on behalf of the City for the City Treasurer and City Clerk, and Government Code Section 36519 authorizes the City Council to require bonds to be executed on behalf of the City for any other officers or employees of the City. In addition, Government Code Section 1481(b) authorizes the City Council to require a master bond to be used for all officers and employees who would otherwise be required to have an individual bond filed on their behalf. Finally, Government Code Section 1463 authorizes the City Council to purchase a government crime insurance policy as an alternative to a master bond.
While the City does not expressly require bonds for any employees other than the City Treasurer and City Clerk, the City has been purchasing government crime insurance pursuant to Government Code Section 1463 for all City elected officials, appointed officials, employees and volunteers. The most recent policy was authorized by City Council action on June 20, 2018 and included $15,000,000 in coverage from National Union Fire Insurance Company of Pittsburgh, PA (Policy No. 01-590-97-65).
Staff has recommended the purchase of crime insurance in lieu of bonds, since it provides more coverage for more individuals at a cost-effective price. Staff is requesting that the attached Resolution be adopted to expressly document the City Council's desir...
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