HomeMy WebLinkAbout4.08 MasterSuretyBond
CITY CLERK
File # D[Z]P7l[Q]-[d]~
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AGENDA STATEMENT
CITY COUNCIL MEETING DATE: March 18, 1997
SUBJECT:
Master Surety Bond - Report Prepared by: Lou Ann Riera-Texeira,
Assistant to the City Manager
EXHIBITS ATTACHED:
?SO!UliOn
4^J Adopt Resolution
RECOMMENDATION:
FINANCIAL STATEMENT:
The cost of the bond is presently $500 and is included in the Fiscal
Year 1996-97 budget.
DESCRIPTION: The City of Dublin participates in an excess liability pool organized
within the Joint Powers Authority Association of Bay Area Governments (ABAG Plan). Included in the
Plan coverage is public official bond insurance.
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Government Code Section 36518 requires that City Clerks and City Treasurers be bonded. As well, the
City has typically obtained blanket coverage for all employees. Recently adopted legislation now
explicitly permits cities and joint powers agencies to use a "master bond" which covers a group of
officials and employees.
ABAG has requested its members to approve the use of a master bond to fulfill the requirements of the
new legislation (Government Code Section 36518-9). ABAG Plan has purchased a master surety bond for
all Plan members from Robert F. Driver Associates. The master bond is cost effective in that all 31
member agencies share in the premium cost. The total Plan premium is currently about $12,000 per year.
The City of Dublin's share of the premium cost is approximately $500 per year. The coverage provided
by the bond is summarized below:
COVERAGE:
Public Employee Blanket Dishonesty Bond including Faithful Performance of
Duty. Coverage includes all employees, treasurer and tax collector
Forgery or Alteration (by non-employees)
Theft, Disappearance and Destruction (by non-employees)
LIMITS:
$1,000,000 Each Occurrence, each coverage
DEDUCTIBLE:
$5,000 Each Occurrence, each coverage
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4.8
ITEM NO.
H1cc-forms/agdaABA G .doc
, Currently, the endorsements for the City of Dublin do not include Dublin Infonnation, Inc. (DIl). Staff
proposes to add DII to the policy as additional insureds under the master bond.
Staff recommends that the City Council adopt the attached Resolution approving the use of a master
official surety bond to provide the required coverage. In addition, staff requests that the Council direct .':_.
staff to notify ABAG to add Dn to the policy as additional insureds under the master bond.
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RESOLUTION NO. - 97
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
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APPROVING THE USE OF A MASTER OFFICIAL SURETY BOND TO PROVIDE REQUIRED
COVERAGE FOR CITY CLERK AND CITY TREASURER
WHEREAS, Government Code Section 36518 requires that City Clerks and City Treasurers be
bonded; and
WHEREAS, the City of Dublin has complied with this requirement in the past through inclusion
of these officials in a master official surety bond purchased by the ABAG Plan Corporation; and
WHEREAS, in order to Gontinue the City's inclusion in the ABAG Plan Corporation master
official surety bond, it is necessary for the City to approve the use of such master bond to fulfill the
requirements of Government Code Section 36518.
NOW, THEREFORE, the City Council of the City of Dublin hereby resolves as follows:
1.
The City Council deems it expedient to use a master official surety bond to provide
coverage required by Government Code Section 36518 for the City Clerk and City
Treasurer and also to provide coverage for other officers and/or employees whom the City
may require be bonded.
2. The City Council hereby approves the inclusion of the City of Dublin in a master official
surety bond purchased by the ABAG Plan for the ptupose of complying with Government
Code Sections 36518 and 36519.
PASSED, APPROVED AND ADOPTED this _ day of
,1996.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk