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(a) Performance security shall be required for:
The City Controller in the amount of $500,000.00;
The Director of Finance in the amount of $500,000.00;
The City Treasurer in the amount of $500,000.00; and
The Purchasing Agent in the amount of $500,000.00.
(b) No performance security shall be required of the Mayor or members of the Council.
SECTION HISTORY
Based on Ord. No. 68,253.
Amended by: Ord. No. 88,135; Title and section, Ord. No. 166,858, Eff. 5-6-91; Ord. No. 173,303, Eff. 6-30-00, Oper. 7-1-00.
Performance security may be acquired for other officers and employees of the City of Los Angeles in a form and amount determined by the Director of the Office of Administrative and Research Services and approved by the City Controller. The determination to acquire performance security shall be accompanied by written findings showing the following has been accomplished:
(a) The availability and cost of a blanket performance security for all city officers and employees have been investigated.
(b) An analysis has been made as to whether the specific positions for which performance security is being acquired have access to large amounts of money or have a high potential for loss of money or property in the event of fraud or dishonest acts. Particular attention should be made to positions in the offices of the City Controller, City Treasurer, Office of Finance, Purchasing Agent and the Police Department.
(c) At least three (3) insurers shall have been contacted to ascertain the availability and cost of performance security.
(d) An analysis shall have been made of the cost of performance security showing that the cost is compatible with the benefit to the City.
SECTION HISTORY
Added by: Ord. No. 166,858, Eff. 5-6-91.
Amended by: Ord. No. 173,303, Eff. 6-30-00, Oper. 7-1-00.
The bond of the City Controller shall commence on the City Controller taking office and continue through the term of office. The respective bonds of the Director of Finance, Treasurer, and Purchasing Agent shall commence on their taking office, respectively, and continue for so long as the respective Director of Finance, Treasurer, or purchasing agent remains in office, provided that this performance security may be for the term of one (1) year and shall be renewed or replaced each year thereafter. All other performances security shall be for the term of one (1) year or longer.
SECTION HISTORY
Added by: Ord. No. 166,858, Eff. 5-6-91.
Amended by: Ord. No. 173,303, Eff. 6-30-00, Oper. 7-1-00.
Performance security required by Section 4.288 shall be in the form of a faithful performance bond.
Performance security authorized under Section 4.288.1 may be in the form of a faithful performance bond, an honesty bond or similar insurance which is commercially available.
Self insurance may be used as a portion of or in lieu of performance security if:
(a) performance security cannot be secured from an insurer or
(b) the cost of performance security is excessive for the risk involved, as documented in a written analysis by the Director of the Office of Administrative and Research Services and approved by the City Controller.
Premiums for performance security shall be paid by the City from the General City Purpose account.
SECTION HISTORY
Added by: Ord. No. 166,858, Eff. 5-6-91.
Amended by: Ord. No. 173,303, Eff. 6-30-00, Oper. 7-1-00.
The Director of the Office of Administrative and Research Services, with the concurrence of the City Controller, shall report to the City Council whenever performance security required pursuant to Section 4.288(a) is commercially unavailable or the cost is not compatible with the benefit to the City, necessitating the need for the City to either partially or fully self insure the required performance security.
SECTION HISTORY
Based on Ord. No. 68,253.
Amended by: Ord. No. 88,135; Ord. No. 149,965, Eff. 8–22–77; Title and section, Ord. No. 166,858, Eff. 5-6-91; Ord. No. 173,308, Eff. 6-30-00, Oper. 7-1-00.
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