HomeMy WebLinkAboutORD 2635'·.f;
• ORIGINAL
ORDINA.."JCE· N_O. 2635
.ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDI.NG SECTIONS 2.08.130(6), 2.08.200(9) (10),
2~24.010, AND 2.28.030 AND ADDING SECTIONS 2~08.075
. .
2.28.075, 2;.28.200, AND 2.30.075 TO THE PALO ALTO
MUNICIPAL CODE.TO MAKE CHANGES IN ACCOUNTING AND
AUDITING·PROCtDUREs; INSURANCE AND LIABIL!TY
. COVERAGE
The council of the City of Palo Alto does ORDAIN_ as follows:
SECTION 1. Section 2.oa.01s is added to the Palo Alto Munid.paF
Code ·to read: ..
-. --. --. :--. . '. ~
"2. oa. 075 care 6£ cit:;t-owned property. Each depart-:: .
·ment head shall be responsibie.lor·cetre and safe-keeping of all city-owned property used by or in the custody of
his dep.artment and _shall t,~e steps as necessary to .· ·
ensure _thattne use or condition of said property does
not fnc\1r letial. l.iabiJity ·or loss for' the "city "qr its
o:ffice~s · an<J. einpioyees, The term "property" as used
hered,n. inc·1wies ~lari4~ ·buildings,· structures, vehicles,
equipme.nt, tools" tux:ni ture, supplies, money, securities,-~•-,.
and. components. of t~a· utilities system~"
· SECTION::;2 > S\ll)s~ction · ( 6) of Secti6k{1 2 ~ o tr.13 0 of the· Palo Alto .
Municipal .t0de is am~r;ded-.to read:
' ~' r"-,,· •
t1.(6) · He sha11·•~-~~abiisl(·.p:roc~c.1tife's;.for .the:qp~r~iion.
o~~'.,the. __ c;:i ty' s, insµtance ~ progrEµn 9theo: th~ri emPloyee·
-~gJ:{:)#}:):.plahS·f ·sha:J.:1,;_have.:_custoCJ.y ·of a:t-l ·ins~r~c~·
l:idii'cies and· shalT. ·keep thf:!! ccfo:t~ci l\ advisefi as tq the
·. statu~ and exi;)iration dates 'ot -;~:ilr·'pOiiciE!.s ~ ". · :,,. . .
•-·,:_-
0
4• q' •I ~ ::.-' .·.• ~-. _!t~.~r~:·.:·:.·~~-~-:.·\~---~:~,·:.·•, ~-·"'''• •---:: .· -~ .. ~ .. ~·
s~C?:'ION 2.· sUbsecticn·-· (9) is remunberea to:'-reacl -.(lo) and a
new sUbseetion :(9) is 'added· td Section 2',:oa~20"0 of th,~ Palb-i1tb ..... ' :;L ·. • • ~ 'i-• •
j. ~ ~ l . ' -. . .,.· . ,.
' L • • -• '~
MOJlicipal CQde ··~$?. read_-'as follows:
. ~ -. . . L~ -_-._;~ ~. --·, --. . , . .... -· --· ._ : . . ~-.
"(9) > · He~'·!ihall 'adtiii'nis~~t",.~mployee<group ins·u:r·ance · 'plans~· -·--· ·,,..
--:-~ .·...) --: ' ,·_'•_. . -~ ~ .. -. _...,_·~-~~--~_;_
tto> Th~--~;·re.J~t};t _of· ~:C-'~6~d~i.· ~-~riic::e~. shall per• __ .. :·
form all dut.i~s· defihed: .in'·t;l)e·~nte:r~Jt. $Ystem and such·,·.: '
other d.utie"s as. may> be 'requii¢d' by 'the 4i·r,eet"or of ,<""
admiP,lstratj,ve s~ktv-'i.6es·~ n . . . . .
~) -
_,I -~-
,_., ·._. -.
·-~.
.•. -:;,>: •.-:.·_ ..
-,_:.::...-
. ..
•'-··
.·.·: ._·
).Y
_,:--
_L'I L .·
' ~-•
' . . . ~
~· r i .
' • • .. •
J:
• • ·;\
\
SECTION . 4. section 2. 24.!o10 · of the Palo. Al to Municipal Code
i• amended to read: .
·' li2.24;010 ·Pa 'l'he city sh~a ........ --.;~------..._..._..,. ....... _.. ....... _._~--~n~u~ry ..... ,-..s~,~.c~n~ss,
disability or death of its officers and enq,16ye~s·a~iaing
out.~£ and during the course of their empl0yt0e:nt•· such
payment shall be made from fund$ on hand or that may pe
reserired for.this-purpose. The city shall.·obtain insur-
a,nce to indemnify·· itself against severe financial loss
from this source•"
SEcT!ON 5 •. Section 2. 2 8 ·• O 30 of the Palo Al to Municipal CoCle
is ·amended to readi
' .)
. "2. 28 ~030 ·.Contingent -~ccount •.. ThE! budget fot .the Genf!.r&l
Fund may contain· a contingent account, the apprppriation
fqr which upon written authorization:.:of the city manager
may be ~ssigned toa department, division,·or prc:;>ject to
·cover ·unanticipat~d expendi tu.res . including :the replace..:
.ment of uninsured .liability cH~ims and lost p;roperty. · ..
·Assignments of co~~~tnqent account appropriations sh~ll ·. ·· ....
be included in th'./;coiltrolle;-• s monthly :report to council'."
"c >,. ' ·•
.· -··
S~CTION 6. s.ection 2.28.075 is added to the P~.lo Alto Municipal
Code to·· read: ' ; ~ '. ·.
'' .
•2.2s .. 01s Indeeendent ~µdit. The ·co\~J:\_cil ·shall provid.ed
for an indepenc.ent, annual audit or more .. ·frequent audits
as it d$~ necessary of · -~~ _ .t,ransactions and aecol.lnts
of all officers·and_~JI\ploy'~es having th~ aut?ority to
collect, ,d;i,sburece, ,have cu,tody of, .or otherwise lllaJU!ig&
public money; r~c~rds, or ·:p~operty. '.such.' audits . shall ''bw
. made by a n¢n:-resTdent certi_fi,:~d pliblic acqp\tntant or·
.firm of ·auqh a.ccountants -who)iave no personal int.erest,
direct or·' i,ndirect· iri''the .-affairs of the city gov4'rnment. •
SECTION 7. s&cti6n. 2. 2 a~ 20'0.· ·_is add.~~~ to the-· Palo Alter M1111icipa1
. ,.,
Code to read:
·.'·--_.
-' ~ ,
. ,( .. -"• 1;
' .• . . ' ~i ~. . '.. . ~ _, .
"2. 2s .}OO .. )r.11s\it~c~. . Th~ 4=C>fltrollelr s)l~.~l obt;~~n 'imci
matntain in .f<;)rce'7"su,ch pol.idies an4 cont:.r:acts of, ,1nau~~.· ·-··
ance or . fide1:{.ty bc;>n~-~·;: a~. ate ne~es'safy : to;:ptcd~ .• ~ct .. · the ~
city from severe fina.Dcial '.or prope~ty· loss subject to
the follawinq 'p6licy: . · · ·· .. ·· ·. · · · · . . .. ·.
. ·-. . ' . '-' .
Cl) ·-Tb~->~~I~f ina~-:-assume the rist···6£ .lol>~ when,·:in.the
· · :h~dgme,nt :'cit ·the cfontroller; · .. .:\:: ·'-.
.:_ •. ·1 .
• _.· ;" • • .'' I -· ' '.__~-~..,:,!;.:~~:' .. -.t -~· " ' .•-'" ..:·., -\,,,:..·. ~>, •
~. >Insut~ce coverag~ i~ not'-obtainable :at a
re'asonable nremium~ . .·· 1-t·,. . ., >.'\: >' • b. 'The annual amount of possible io•~;:from a .
. parti¢y).ar souJ;ce,, is leila -~·an.;$~9~~:00'0 •. ,, .
·.·
·.·. ~'
· 1:f. , . 0e~µ_9_~ible ()~·· "~xcess. ~0Ver4\9e ~~( .. q):f~.,1'.nable, ,;
. :._, prqvided that· the dqllar atnount · 9t·>'losa ·
. , :re~~~~.ion . anhJ:lal:ly <>r: per Occu~~e#c~. tor. all
· 'po) . .tc.te~ j;n fore.a .. s~a~l not~ exce~d '~:r•e
,_ percent-··· (~tJ · of >th~"' tot·a1 revenue· of·''·-11
fu1'~~.' ~.<?~-th~,-preceding fi$oal year. ,;~:~·
--~
)) ·,.
' ~~ . , . . . . . ~ '
~' .
·-,_.
',;__.
' ..
•. \. •, I ..
"'
' ; ; ~ ._
·,.
·'-· • •
(2) ·The city may obtain full ;i.nsurance coverage for its
eXposure to all liability claims other than those
arising from workmen's compensation. :Premium payments
'.for such insurance.shalr_}?e retrospectively computed
on the basis of city's loss experience.
(3) When coverage is obtained through a licensed aqent or
broker·or association thereof, such procure~nt and
other. servi6es shall be governed by a written agreement
with the city.
(4) Placement of insurance coverage .~hall be limited to
companies wfrich maintain policyholder reserves in
excess of $25,000,000 and are licensed by the State
of Califo1-nia. 11
SECTION 8. ·Section 2. 30. 0,75 i.s added to· the Palo Alto Municipal
Code to· read:
n 2 ~ 30. 075 Avoidance of. lo.sses or liab,ility •. Any contract,
purchase order or other docui;.nent covering the procurement
or use of services, $upplies, or property for the city or
the prqviding of such services, supplies or property by the
·city shall; 'remove or -t?ransfer from the city insofar. as '
practicable, all risk of loss, ·liability .and .cost of defense. · r,',
'i'he qity may purchase, at conti'actor's expense, insurance
. during the course of com;tructiotr of public works, where·
·superior· coverage, lower p~emiW11, consent of the contractor,
or other factors j us ti fy ·such purchase. " . ·· _
\ '
s:E~Tid'.N 9. This 6rc1ihance shall ·be·caitte effective upon· the
,· : '. .
expiraf.;.Jn 6f thirty days from 'its passage. ·
.,... .. -·.·
INTRODUCED: No~ember I, 1971
PASSED:
AYES: B~ahrs; B~!'v.iitd, c1~A.t, 't~~st~~k. Henderson; Nol'fo'o.; ·Pear$bn, .
Rosenbaum ··· '-·· ·';
NOES: · "None
"-.r.
. __ ., · ...... '·
.·.ABS.ENitt: . None ..
i ~ -~ . r
. ----. . -·
.·~. . .. ___ .
_-.-·
·~J<~ .• i ~<.C££yf(nfr~>' ' ·-. :-(. ~.
~
f, ·.-~ -
' . ~ ~ .. '
At>PR.OvED' AS To .FORM: · ·
!~~··· S~pior, ·~s·i$~~,~t: . ·
CJ;ty Attt.>rne~·c~_,/ · :, , · ..
i:'
.;_-<
"
: ... , .. · . ~ -.-
" / :,-· -· ··-:=--·,· -·:.·_; --..... :
'"'< _-<-. ., _:,
·-· -.·--.
•\; '."°' -·~ .:· -