HomeMy Public PortalAbout22-032- Authorizing the Risk Manager to Purchase Insurance or a Master Bond in Lieu of Purchasing Individual Official BondsRESOLUTION NO. 22-032
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA,
AUTHORIZING THE RISK MANAGER TO PURCHASE INSURANCE OR A MASTER
BOND IN LIEU OF PURCHASING INDIVIDUAL OFFICIAL BONDS
WHEREAS, California Government Code section 36518 requires the City Clerk and City Treasurer
to execute a bond to the City; and
WHEREAS, California Government Code section 36519 allows the City Council to require bonds
for any other officer or employee of the City; and
WHEREAS, Section 2202 of the City’s Municipal Code requires the City Clerk to upon entry to
his or her duties execute a bond to the City in conformity with bonds of Public Officers, and in
conformity with the provisions of the California Government Code relating thereto, in an amount of
$50,000; and
WHEREAS, Section 2203 of the City’s Municipal Code requires the City Treasurer to upon entry
to his or her duties execute a bond to the City in conformity with bonds of Public Officers, and in
conformity with the provisions of the California Government Code relating thereto, in an amount of
$50,000; and
WHEREAS, California Government Code section 1481 provides “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, California Government Code section 1463 provides as an alternative to the official
bond required by a city, the City can procure a government crime insurance policy or employee
dishonesty insurance policy to be used as a master bond, as though it were an official bond; and
WHEREAS, the City purchased an Insurance Policy that covers all City employees for theft, fraud
or crime up to One Million Dollars, ($1,000,000); and
WHEREAS, this policy covers all City employees, including those required to be bonded, and
provides broader and higher coverage at limited increase in costs.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, DOES HEREBY
RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct and are incorporated herein by reference.
SECTION 2. The City Council finds as follows:
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RESOLUTION NO. 22-032
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(a) The use of a master bond in lieu of individual bonds for City officers and employees is expedient
and therefore a master bond may be substituted for individual bonds.
(b) The alternative of procuring a government crime insurance policy or employee dishonesty
insurance policy may be more cost effective for the City.
(c) The City’s Risk Manager shall review the costs involved with insuring City officers, including the
City Clerk and City Treasurer, and employees, and compare those costs with separate bonds for the City Clerk and
City Treasurer to determine the most cost-effective solution.
(e) The City’s Risk Manager is authorized to acquire bonds for the following officers and employees
in the following minimum amounts:
$50,000 City Treasurer
$50,000 City Clerk
(d) Depending on the City’s Risk Manager’s analysis he or she 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).
SECTION 3. This Resolution shall take effect immediately upon its adoption.
SECTION 4. Should any provision, section, paragraph, sentence or word of this Resolution be
rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any
preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as
hereby adopted shall remain in full force and effect.
SECTION 5S. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of
original Resolutions.
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RESOLUTION NO. 22-032
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PASSED, APPROVED AND ADOPTED this 15th day of March, 2022.
APPROVED AS TO FORM: CITY OF CARSON:
Sunny K. Soltani, City Attorney Hila Davis-Holmes, Mayor
ATTEST:
i" Pradall aur
Dr. Khaleah K. Bradshaw, City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF CARSON )
|, Dr. Knaleah K. Bradshaw, City Clerk of the City of Carson, California, hereby attest to and certify that the
foregoing resolution, being Resolution No. 22-032 adopted by the City of Carson City Council at its meeting held
on March 15, 2022, by the following vote:
AYES: COUNCIL MEMBERS: Davis-Holmes, Hilton, Dear, Hicks, Rojas
NOES: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMEBES: None
ABSENT: COUNCIL MEMBERS: None Dr. Khaleah K. Bradshaw, City Clerk
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RESOLUTION NO. 22-032
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