HomeMy WebLinkAboutR-11219 authorizing Master Bond or purchase of insurance in lieu of purchasing individual official bondsR 11219
RESOLUTION NO. 11219 (2021 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING MASTER BOND OR
PURCHASE OF INSURANCE IN LIEU OF PURCHASING INDIVIDUAL
OFFICIAL BONDS
WHEREAS, Section 712. Official Bonds of the Charter of the City of San Luis Obispo
provides:
The Council shall, by ordinance or resolution, determine what officials and other persons
in the service of the City shall give bond either of an individual type or be included in a
master bond, for the faithful performance of their duties and/or honesty, and shall fix the
amounts of such bond or bonds, and each of such officers and other persons shall before
entering upon the duties of office or employment, execute a resolution, including in the
same bond the duties of all offices of which the official or person is made, by this Charter
or otherwise, ex officio incumbent. Such bonds must be examined by the City Attorney
and approved by the City Council. All bonds when approved shall be filed with the City
Clerk, except the City Clerk's bond, if any, which shall be filed with the City Manager. All
the provisions of any law of this State relating to the official bonds of officials as then
existing shall apply to such bonds, except as herein otherwise provided. In all cases where
surety company bonds are approved by the Council, the premium therefore shall be paid
by the City; and
WHEREAS, Government Code section 1481(b) provides:
Notwithstanding any other provision of law, when deemed expedient by the legislative
body of a local public agency, a master official bond or other form of master bond may be
used which shall provide coverage on more than one officer, employee, or agent of the
local public agency, whether elected or appointed, who is required by statute, regulation,
the appointing power, the governing board of a local public agency, or the board of
supervisors of a chartered or general law county to give bond; and
WHEREAS, Government Code section 1463 provides:
For the purposes of this chapter, a government crime insurance policy or employee
dishonesty insurance policy, including faithful performance, may be provided as an
alternative to the official bond by any county or city, subject to approval by the pres iding
judge of the superior court and recording and filing as provided in Sections 1457 to 1460.1,
inclusive. An insurance policy procured pursuant to this section may be used as a master
bond as though it were an official bond, subject to approval of the appointing power or the
legislative body as provided in Section 1481; and
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WHEREAS, the City of San Luis Obispo has purchased through California Joint Powers
Insurance Authority (CJPIA) an Insurance Policy that covers all City employees for theft, fraud,
or crime and for faithful performance of duties with a minimum limit of one million dollars
($1,000,000); and
WHEREAS, this policy covers all City employees, including those required to be bonded
by Council and all other employees required by law to be individually bonded, and provides
broader and higher coverage with limited increase in costs.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1: The above recitals are true and correct and are incorporated herein by this
reference.
SECTION 2: The use of a master bond in lieu of individual bonds of City officers and
employees is expedient and therefore a master bond may be substituted for individual bonds.
SECTION 3: The City’s Risk Manager is authorized to acquire insurance for City officers
and/or employees in lieu of a master bond in an amount not less than one million dollars
($1,000,000).
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SECTION 4: Any prior resolutions establishing bonding requirements for City officers or
employees are hereby superseded and repealed.
Upon motion of Council Member Christianson, seconded by Council Member Pease, and
on the following roll call vote:
AYES: Council Member Christianson, Marx, Pease, Vice Mayor Stewart, and
Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 2nd day of February 2021.
____________________________________
Mayor Heidi Harmon
ATTEST:
_______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, on ____________________________.
____________________________________
Teresa Purrington
City Clerk