PERFORMANCE SECURITY

Los Angeles Administrative Code div. 4, ch. 7, art. 3

in effect

Los Angeles Administrative Code § 4.288 Performance Security Required.

Sec. 4.288. Performance Security Required. (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.

Los Angeles Administrative Code § 4.288.1 Other Performance Security.

Sec. 4.288.1. Other Performance Security. 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.

Los Angeles Administrative Code § 4.288.2 Term of Performance Security.

Sec. 4.288.2. Term of Performance Security. 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.

Los Angeles Administrative Code § 4.288.3 Types of Performance Security and Premiums.

Sec. 4.288.3. Types of Performance Security and Premiums. 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.

Los Angeles Administrative Code § 4.289 Report to Council.

Sec. 4.289. Report to Council. 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.

Los Angeles Administrative Code § 4.290 Approval and Filing of Performance Security.

Sec. 4.290. Approval and Filing of Performance Security. All performance security shall be approved by the City Attorney as to form, and shall be filed with and remain in the keeping of the City Clerk. It shall be the duty of the Director of the Office of Administrative and Research Services, with the approval of the Controller, to make recommendations to the Council concerning any changes or action necessary in the City’s interest in relation to any performance security. SECTION HISTORY Based on Charter, Sec. 69. Amended by: Title and section, Ord. No. 166,858, Eff. 5-6-91; Ord. No. 173,303, Eff. 6-30-00, Oper. 7-1-00.

Los Angeles Administrative Code § 4.291 Liability on Performance Security.

Sec. 4.291. Liability on Performance Security. In all cases where there is performance security for an officer or employee of the City, there shall be no personal liability upon, or any right to recover against the officer’s or employee’s superior officer or employee, or any other officer or employee of the City, nor shall there be any liability or right of recovery upon the performance security of the officer’s or employee’s superior officer, or of any other officer or employee, for any defalcation by said employee. Liability and right of recovery shall be solely upon and against the officer or employee and that officer’s or employee’s performance security unless the officer’s or employee’s superior officer or employee or any other officer or employee is a party to the wrongful act or has conspired with the officer or employee, causing directly or indirectly any loss. SECTION HISTORY Based on Charter, Sec. 69.1. Amended by: Title and section, Ord. No. 166,858, Eff. 5-6-91.

Source: City of Los Angeles, Charter and Codes (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/los_angeles/latest/laac/0-0-0-12550Fetched: 10/24/2026