Panel: Board needs bonds
The committee may recommend no bonds for city council members.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- City council's legislation committee is recommending council adopt a policy to buy $100,000 individual faithful performance bonds for the mayor, law director and finance director.
Those three officials compose the board of control, the body responsible for approving a significant majority of city expenditures. Finance Director David Bozanich already has a $100,000 bond as required under city charter.
But city ordinances require the mayor, law director, council president and council's seven members to also have individual performance bonds.
The Vindicator published a story Tuesday disclosing that those officials are required to have the bonds and don't have them.
Maggy Lorenzi, a community activist and 2005 mayoral candidate, discovered the problem when she asked for copies of the insurance bonds for the city officials.
The bonds are needed to recoup money in cases where city officials purposely do something illegal with city funds, said Law Director Iris Torres Guglucello.
The legislation committee voted Thursday to recommend to council that the board of control members each have $100,000 individual performance bonds. Each bond would cost the city $400 a year, Guglucello said.
Council could vote on the recommendation as early as its next meeting Wednesday, said Councilman Mark Memmer, D-7th and the legislation committee's chairman.
Also Thursday, the legislation committee agreed to postpone action on obtaining performance bonds for council president and council's seven members.
Possible elimination
The committee may recommend council pass a resolution to eliminate the bond provision for its members, and add its members to the city's general insurance coverage.
If the committee decides to recommend bonds for council members and its president, Mayor Jay Williams suggested the amount for each be between $10,000 and $25,000.
That would cost the city $3,200 to $8,000 annually for bond coverage for the eight officials.
Guglucello will continue to conduct research on the individual performance bonds purchased by other communities in Ohio.
According to Guglucello, Warren's performance bond amounts range from $2,500 to $25,000. Springfield's bond range is $3,000 to $25,000, and Akron's range is $1,000 to $5,000, she said.
Research of city ordinances revealed that council originally passed legislation in 1948 requiring performance bonds for certain Youngstown officials. The legislation was amended in 1952, 1971, 1972 and 2001.
skolnick@vindy.com