Committee recommends bond/insurance changes to cover employee dishonesty and fidelity risks

The committee examined an ordinance amending chapter 149.01 of the Marion City code to require certain employees to carry fidelity bonds or to expand blanket dishonesty coverage under the city's liability policy.

Director Cow presented comparative cost information, explaining the city currently carries $50,000 blanket dishonesty coverage and that raising blanket coverage to $100,000 was quoted as an approximately $100 increase in premium in the materials he provided, while fidelity bonds for specified employees could cost several thousand dollars annually depending on the schedule and amounts. Committee members asked whether all listed employees routinely handle cash, the potential loss exposure, and whether fidelity bonds cover different risks than dishonesty provisions in liability insurance.

Law Director Russell said bonds have established recovery procedures and that requiring bonds in code offers known legal remedies; staff noted liability coverage can include both dishonesty (intentional acts) and error coverage (mistakes), but deductible levels change with higher limits (the committee heard the deductible could increase from $250 to $2,500 for higher blanket coverage). Members also discussed the administrative trade-offs of bonding selected positions versus providing a blanket coverage for all employees.

Councilman Bar moved to send the ordinance to full council with a recommendation to approve; a member seconded, and the clerk recorded the committee's recommendation by roll call. The committee voted to forward the measure to council.