HomeMy WebLinkAboutResolution No. 2014-52Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 2014 -52
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PRESCRIBING
THE OFFICIALS BOND AMOUNT FOR THE CITY ADMINISTRATOR AND FINANCE
DIRECTOR PURSUANT TO SECTION 4.3 OF THE KENAI MUNICIPAL CHARTER.
WHEREAS, the Kenai City Council, pursuant to Section 4.3 of the Kenai Municipal
Charter, may prescribe the form and amount of an Official Bond for the City
Administrator, Finance Director, City Treasurer, and such other officers and employee
as the Council may designate; and,
WHEREAS, the City's general liability insurance policy contains coverage for employee
dishonesty in the amount of $250,000 for all employees except those who are required
by law to be bonded; and,
WHEREAS, the bonding requirements of Section 4.3 of the Kenai Municipal Charter
exclude the City Administrator and Finance Director from employee dishonesty
coverage under the City's general liability coverage; and,
WHEREAS, prescribing the bonding requirement for the City Administrator and
Finance Director at $250,000 each will be consistent with coverage for all other City
employees; and,
WHEREAS, the total estimated cost for $250,000 in bonding for the City Administrator
and Finance Director is $1,960.00 annually and the administration has identified
available funding within the Legislative Department's budget.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, the Council of the City of Kenai prescribes the bonding amount to be
$250,000 for each the City Administrator and Finance Director.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of July,
2014.
PAT PORTER, MAYOR
ATT
Sand •a o igh, CRy C.lerrk : /`
Approved by Finance �
LWA
"Villaye with a Past, C# with a Future"
FINANCE DEPARTMENT
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014
/ To: Rick Koch, City Manager
J From: Terry Eubank, Finance Director
aaa Date: June 25, 2014
Re: Resolution 2014 -52 Prescribing the Officials Bond amount for the City Manager and City
Finance Director.
The purpose of this memo is provide information and options for compliance with Section 4 -3 of
the Kenai City Charter, Officials Bonds. Section 4 -3 of the Kenai City Charter reads as follows,
The City Administrator, the Finance Director, the City Treasurer, and such other officers
and employees as the Council may designate, before entering upon their duties, shall be
bonded by individual and/or group bonds, for the faithful performance of their
respective duties, payable to the City, in such form and in such amounts as the Council
may prescribe, with a surety company authorized to operate within the State. The City
shall pay the premiums on such bonds. (Amended by Proposition 1, October 5, 1976.)
The City's general liability insurance policy through Alaska Public Entity Insurance provides
employee dishonesty coverage in the amount of $250,000 per employee but the policy excludes
anyone who is required to be bonded by law. Policy provisions combined with the requirements
of Section 4 -3 of the City's Charter exclude coverage for the City Manager and Finance Director
for employee dishonesty.
The City may purchase bonding for the City Manager and Finance Director to satisfy the
requirements of the City's Charter. The following bonding quotes have been provided by the
City's insurance broker:
Cost Per
Bonding Limit Employee
$50,000 per employee $190.00 per year
$250,000 per employee $980.00 per year
$500,000 per employee $1,940.00 per year
Bonding limits in excess of $500,000 may be available but not through the City's current broker.
Purchasing bonds with a $250,000 limit will provide the same level of coverage for the City
Manager and Finance Director as is provided to all other City employees.