CC - Item 4D - Corporate Surety Bonding of Certain Employees4\
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ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: MATTHEW HAWKESWORTH, ACTING CITY MANAGER
DATE: MAY 26, 2009
SUBJECT: CORPORATE SURETY BONDING OF CERTAIN EMPLOYEES
SUMMARY
It has come to the attention of staff that certain employees are required to be covered
by a corporate surety bond. Specifically, the City Manager and the Finance Director are
to be bonded at an amount to be determined by the City Council. The City Clerk is to
be bonded in the amount of five thousand dollars ($5,000).
Staff Recommendation
Staff recommends that the City Council take the following actions:
1. Set the amount of corporate surety bonding for the City Manager at fifty thousand
dollars ($50,000) and one hundred twenty-five thousand dollars ($125,000) for
the Finance Director. Bonding for the City Clerk is to remain at five thousand
dollars ($5,000).
2. Direct staff to purchase corporate surety bonding in the names of the City
Manager, the City Clerk and the Finance Director. All bonds are to name the City
as obligee.
3. Approve the attached resolution No. 2009-25.
ANALYSIS
Municipal Code section 2.08.030 requires the City Manager to furnish a corporate
surety bond in such sum as may be approved by the City Council. Municipal Code
section 2.12.020 states that the City Clerk shall execute a bond to the City in the
amount of five thousand dollars ($5,000.00). And, Municipal Code section 2.20.020
states that the Finance Director shall be bonded in an amount to be determined by the
City Council with the advice of the City Attorney.
APPROVED FOR CITY COUNCIL AGENDA: ITEM NUMBER:
City Council Meeting
May 26, 2009
Page 2 of 2
FINANCIAL REVIEW
The cost of the surety bonds is dependent upon the amount of coverage purchased.
The bonds will be paid for from the general fund.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
Steven Brisco
Finance Director
Attachment k Resolution No. 2009-25
RESOLUTION NO. 2009-25
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
CALIFORNIA AUTHORIZING STAFF TO PURCHASE CORPORATE SURETY
BONDING FOR THE CITY MANAGER, THE CITY CLERK AND THE FINANCE
DIRECTOR COVERING THE CITY OF ROSEMEAD
WHEREAS, Municipal Code section 2.08.030 requires the City Manager
to have a corporate surety bond in an amount acceptable to the City Council, and
WHEREAS, Municipal Code section 2.12.020 requires the City Clerk to be
bonded in the amount of five thousand dollars ($5,000), and
WHEREAS, section 2.20.020 of the Municipal Code requires the Finance
Director to be bonded in an amount to be determined by the City Council.
NOW THEREFORE, BE IT RESOLVED, that the City Council authorizes
staff to purchase corporate surety bonds naming the City as obligee for the City
Manager in the amount of fifty thousand dollars ($50,000) and the Finance
Director in the amount of one hundred twenty-five thousand dollars ($125,000)
and five thousand dollars ($5,000) for the City Clerk.
PASSED AND ADOPTED, by the City of Rosemead City Council, County of Los
Angeles, of the State of California on May 26, 2009.
Mayor
ATTEST:
City Clerk