HomeMy WebLinkAboutA001 - Council Action Form dated February 27, 1980 . ITEM
DATE February 27, 1990
COUNCIL ACTION FORM
SUBJECT: Bond Requirements
BACKGROUND:
The current bonding section of the Municipal Code (Sec. 2.2 Bonds Required)
contains a listing of City employees and officers who are required to be bonded
for a certain specified amount. However, the bonding amounts are not
sufficient to adequately protect the City in the event of a claim.
It has been the practice of the City to purchase a $1,000,000 fidelity bond to
cover the Mayor, Mayor Pro Tem, and all other City employees. This bond
amount adequately protects the interests of the City by not only providing for
increased coverage, but a wider base of coverage.
Attached is a copy of the proposed ordinance prepared by the City Attorney
revising Section 2.2 of the Municipal Code to allow the purchase of a fidelity
bond to cover City employees and officers.
ALTERNATIVES:
1. Adopt an ordinance changing the present bonding requirements to allow the
purchase of a fidelity bond in an amount to sufficiently cover the Mayor, Mayor
Pro Tem, and other City employees.
2. Retain the wording of the existing ordinance.
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that the City Council adopt
Alternative #1, approving an ordinance changing the present bonding require-
ments to allow the purchase of a fidelity bond in an amount to sufficiently cover
the Mayor, Mayor Pro Tem, and other City employees.
COUNCIL ACTION