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HomeMy WebLinkAbout2018-0581 2 3' 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2018-58 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING OFFICIAL BOND REQUIREMENTS FOR THE POSITIONS OF CITY ATTORNEY, CITY CLERK, CITY MANAGER, DIRECTOR OF FINANCE, GENERAL MANAGER OF THE CITY OF SAN BERNARDINO'S MUNICIPAL WATER DEPARTMENT, AND FINANCE DIRECTOR OF THE CITY OF SAN BERNARDINO'S MUNICIPAL WATER DEPARTMENT; AND FIXING THE AMOUNT AND TERMS OF THOSE OFFICIAL BONDS. WHEREAS, the People of the City of San Bernardino adopted a new Charter at the November 8, 2016 municipal election; and WHEREAS, the new Charter was filed with the California Secretary of State on January 31, 2017 and became effective on that date; and WHEREAS, Section 509 of the new City Charter provides that the Council shall fix by I Resolution the amounts and terms of the official bonds of all officers or employees who are required by the Council to acquire such bonds; and WHEREAS, prior to the effective date of the new City Charter, the filing of official bonds was controlled by Chapter 2.62 of the San Bernardino Municipal Code, which established a certain schedule for public officials and a blanket position bond; and WHEREAS, Section 103 of the new City Charter provides that all Ordinances shall continue in force until they shall have been duly repealed, amended, changed, or superseded by proper authority as provided by the new Charter; and WHEREAS, City staff have reviewed the City's current official bond requirements and determined those requirements to be over inclusive of positions when compared to the industry standard. Additionally, the current amounts do not provide sufficient monetary coverage to adequately and effectively insure the City against the nonperformance or malperformance of those designated public officials and thereby, do not acceptably mitigate potential risks; and WHEREAS, City staff have determined that it is necessary to recommend the I establishment of certain requirements and to increase the bond amounts to $1,000,000.00 each for the classifications of City Attorney, City Clerk, City Manager, Director of Finance, General Manager of the City of San Bernardino's Municipal Water Department, and the Director of Finance of the City of San Bernardino's Municipal Water Department. I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1: The following officers or employees of the City of San Bernardino shall be required to acquire official bonds in the following amounts: Officer / Employee: Amount: City Attorney $1,000,000.00 City Clerk $1,000,000.00 City Manager $1,000,000.00 $1,000,000.00 $1,000,000.00 Director of Finance General Manager of the City of San Bernardino's Municipal Water Department Director of Finance of the City of San $1,000,000.00 Bernardino's Municipal Water Department SECTION 2: The official bonds of those officers or employees required to acquire official bonds pursuant to the City Charter and this resolution shall include the following terms: a. Every official bond shall be filed in the Office of the City Clerk within the time prescribed for filing the oath. b. Official bonds shall be recorded in a book kept for that purpose entitled "Record of Official Bonds." C. The City Clerk shall carefully keep and preserve the bonds. He/she shall give certified copies thereof to any person demanding copies, upon being paid the same fees as are allowed by law for certified copies of papers in other cases. d. The City Clerk shall keep the bond on file for one year following the expiration of the term of the office for which the bond was issued at which time said bond may be destroyed or otherwise disposed of. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e. Any person appointed to fill a vacancy shall give a bond, corresponding in substance and form with the bond required of the officer originally appointed, before entering upon the duties of the office. f. The official bonds required by the Charter and this Resolution shall inure to the benefit of the City of San Bernardino as well as the officer under whom the officer or employee serves. g. Each such bond may contain a provision authorizing the Mayor and City Council to cancel the bond or the contract of coverage of any officer or employee covered thereunder. h. All official bonds shall be made payable to the City of San Bernardino in such penalty and with such conditions as required by this Resolution, or the law creating or regulating the duties of the office. L The condition of an official bond shall be that the officer or employee will well, truly, and faithfully perform all official duties then required of him/her by law, and also all such additional duties as may be imposed on him/her by any existing law of the State or law enacted subsequently to the execution of the bond. j. Every official bond executed by any officer pursuant to this Resolution is in force and obligatory upon the employee or officer and sureties therein for any and all breaches of the conditions thereof committed during the time such employee or officer continues to discharge any of the duties of or hold the office; and for the faithful discharge of all duties which may be required of such employee or officer by any law enacted subsequently to the execution of the bond. There shall be no personal liability upon, or any right to recover against, a superior officer, or his or her bond, for any wrongful act or omission of his or her subordinate, unless such superior officer was a party to, or conspired in, such wrongful act or omission. k. All bonds required pursuant to the City Charter and this Resolution shall be executed by a responsible corporate surety, shall be approved as to form by the City Attorney, and shall be filed with the City Clerk. Premiums on official bonds shall be paid by the City. I. Whenever, except in criminal prosecutions, any special penalty, forfeiture, or liability is imposed on any officer or employee for the nonperformance or malperformance of 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 official duties, the liability therefor attaches to the official bond of the officer, and to the principal and sureties thereon. m. No premium or charge paid by the City of San Bernardino shall exceed one-half of 1 percent per annum on the amount of the bond, but a minimum premium or charge of twenty-five dollars ($25) per annum may be imposed. SECTION 3: This Resolution shall become effective thirty-one (31) days after the final reading of the ordinance repealing San Bernardino Municipal Code Chapter 2.62. SECTION 4. Funding for this amendment to the City's current public official bond schedule is included in the FY 2017/2018 adopted budget within the Liability Insurance Fund. Funding for future payments of the official bond premiums shall be budgeted under the Liability Insurance Fund. /// /// 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING OFFICIAL BOND REQUIREMENTS FOR THE POSITIONS OF CITY ATTORNEY, CITY CLERK, CITY MANAGER, DIRECTOR OF FINANCE, GENERAL MANAGER OF THE CITY OF SAN BERNARDINO'S MUNICIPAL WATER DEPARTMENT, AND FINANCE DIRECTOR OF THE CITY OF SAN BERNARDINO'S MUNICIPAL WATER DEPARTMENT; AND FIXING THE AMOUNT AND TERMS OF THOSE OFFICIAL BONDS. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a Joint Regular Meeting thereof, held on the 74h day of March 2018, by the following vote, to wit: Council Members: MARQUEZ BARRIOS VALDIVIA SHORETT NICKEL RICHARD MULVIHILL AYES y x )((M-) NAYS ABSTAIN ABSENT Georgeann anna, CMC, City Clerk The foregoing Resolution is hereby approved this 7th day of March 2018. R. Carey Daternardino , Mayor City of San Approved as to form: Gary D. Saenz, City Attorney A 5