Resolution No. 60021
7
9
10
11
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO. 6002
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF VERNON APPROVING AND AUTHORIZING
THE EXECUTION OF A JOINT INDEMNITY
AGREEMENT (REVISED ASSUMPTION OF LIABILITY
AGREEMENT) BY AND BETWEEN THE CITY OF
VERNON AND THE COUNTY OF LOS ANGELES
WHEREAS, the City of Vernon and the County of Los
Angeles have contracted for the performance of certain services
by the County of Los Angeles; and
WHEREAS, the City of Vernon and the County of Los
Angeles, under the Government Code, may allocate financial
responsibility for liability for injuries to persons or property
under such contracts; and
WHEREAS, the County of Los Angeles has established the
Contract Cities Trust Fund into which portions of funds received
under such contracts are deposited, in order to guard against
liability for any acts by County officers, agents or employees
with respect to such contracts.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained
hereinabove are true and correct.
SECTION 2: The City Council of the City of Vernon
hereby approves the Joint Indemnity Agreement, a copy of which
has been presented to the City Council concurrently with this
resolution, and the City Council hereby orders said Agreement to
be received and filed by the City Clerk.
1
3
4
6
8
8
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
SECTION 3: The City Council of the City of Vernon
hereby authorizes the Mayor and the City Clerk to execute said
Agreement for, and on behalf of, the City of Vernon.
SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 22nd day of October, 1991.
ATTEST:
BI JCE V. MALKENHORST, City Clerk
-2-
bgW4& 4i4cigitrOt
Thomas A. Ybarra, Mayor Pro Te
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
STATE OF CALIFORNIA
)ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of
Vernon, ° do hereby certify that the foregoing Resolution, being
Resolution No. 6002, was duly adopted by the City Council of the
City of Vernon at an adjourned regular meeting of the City
Council duly held on Tuesday, October 22, 1991, and thereafter
was duly signed by the Mayor of the City of Vernon.
BRUCE V. MALKENHORST, City Clerk
6 20 2
JOINT INDEMNITY AGREEMENT
THIS AGREEMENT, dated for reference purposes on the day,
of, 1991, is made and entered into between the County of
Los Angeles, sometimes hereinafter referred to as the "County ",
and the City of Vernon
the "City,"
This agreement is entered into based upon the following
facts:
(a) City and County have contracted for the performance of
services by County, its officers, agents and employees, and may
sometimes hereinafter referred to as
in the future extend, renew and amend such contracts, and enter
into other and further contracts for the performance of services,
all of which are hereinafter referred to as "service contracts ";
(b) Pursuant to Government Code Section 895.6, if the
agreements between City and County fail to specify how the
responsibility for liability for injuries to persons or property
is to be allocated, each entity is to contribute an equal share
of the amount of any judgment based on an injury that occurs in
the performance of the agreement;
Government Code Section 895.4, the City and
County may allocate the ultimate financial responsibility among
themselves in whatever manner seems most desirable to them;
(d) County has established the Contract Cities Trust
(sometimes
County will
Fund
referred to as "Trust Fund ") into which
portions of the funds
received
from City and other cities as compensation for the performance 0
services;
(e) County is willing to perform the services for
City is willing to contribute to the Trust Fund as
compensation for the performance of the services;
(f) City is willing to have County provide the
City if
services and
to contribute to the Trust Fund as a part of the compensation
the performance of the services;
(g)
Utilizing the Trust Fund, County is willing to assume
liability and defend and hold City harmless from any loss, cost
or
expense
caused by the negligent or wrongful acts or omissions
of County officers, its agents or employees, occurring in the
performance of said agreements.
(h) Using its own funds and without contribution from the
Trust Fund, City is willing to assume liability and defend and
hold County harmless from loss, cost or expenses caused by the
negligent or wrongful act or omission of City officers, agents or
employees occurring in the performance of agreements between the
parties.
NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:
Establishment of Trust Fund
City and County agree that the Auditor - Controller of the
County shall establish a fund for the payment of losses for which
County may be liable under the terms of this agreement.
County agrees to maintain the fund, to be known as the Contract
Cities Trust Fund, for the purposes set forth in this Agreement.
2. Control of Trust Fund
City and County agree that the Trust Fund is under the full
control of County.
3. payment to Trust Fund
City agrees to make payment to the fund, and County
agrees to require each City receiving services under service
contracts to also contribute to the fund.
Payments towards the total amount of the fund shall be made
by City in such amounts as may be established by County Trust
3
Fund Administrator with concurrence of Auditor - Controller
according to the policy and procedures established by County.
Such payments may be at a rate calculated separately for
each specific service provided by County through its performance
of service contracts during each fiscal year
4. Sufficiency and Use of Trust Fund
To the extent that County has agreed to indemnify, defend
and hold harmless City, its officers, agents and employees under
this agreement, said obligation shall continue to exist during
the term of this agreement whether or not there are sufficient
funds for such indemnity, defense or hold harmless in the Trust
Fund.
If in the discretion of the Trust Fund Administrator the
Trust Fund balance is inadequate to fund contract cities
liabilities, the Auditor will advance from the County's funds
amounts necessary to temporarily finance such liabilities.
City agrees, together with others who will be required to
make like contributions, to contribute upon demand by the Trust
Fund Administrator such sums as the Trust Fund Administrator
determines are necessary to replenish the Trust Fund so that the
County's funds may be reimbursed.
The Trust Fund shall reimburse the County's funds for all
such costs
temporarily advanced on behalf of the Trust Fund with
interest at County treasury rate within one calendar year
the date of the County's advance.
It is further understood that County may also utilize said
fund for the purchase of commercial insurance and claims
from
management services
all or any part of
5. Indemnity
Utilizing
investigate
and for the payment of other costs
County's exposures
hereunder.
from the Trust Fund
the Trust Fund,
County will undertake to
defend and pay any losses,
judgments or expenses originating
to cover
costs settlement awards,
from claims or litigation based
or alleged to be based upon the negligent
or wrongful act or
omission of County officers, agents or employees engaged
performance of services
contracts.
County will
for City
pursuant to the service
not undertake this responsibility if the
in the
liability is based or alleged to be based upon the negligent or,
wrongful act or omission
of City, its officers, agents or
employees occurring during the performance of the service
contracts
responsible through its negligence or wrongful act or omission,
County contends that. the City is partially
County shall still
undertake the responsibility herein imposed,
but County may, by written notification to City, reserve its
right to claim indemnification from the City for that portion of
the loss, cost, settlement, award or judgment attributable to
City's negligence or wrongful act or omission.
Except for its contribution to the Trust Fund,
the
be liable for defense costs or for holding County harmless from
loss, costs, or expenses caused in whole or in part by the
negligent or wrongful act or omission of County, its officers,
agents and employees occurring during the performance of the
services pursuant to the contracts.
6. Indemnity by City_
a. Acts or Omissions`
City will undertake to investigate, defend and pay
any losses, costs, settlement awards
expenses originating from claims or litigation
alleged to be based in whole or in part upon the
based or
negligent or wrongful act or omission of City,
officers, agents or employees occurring during the
performance of the service contracts.
▪ �a serous •nd'tio
S o
When liability is based or
a dangerous condition of City property pursuant to S830
et. -seq. of the Government Code (including, but not
limited to, the plan or design of the City, property),
City shall assume liability and defend and hold County
harmless from any loss, cost or expense caused by the
negligent or wrongful act or omission of City, its
officers, agents or employees.
c. Exception for Maintenance or Inspection of
City Property
Where a duty is imposed on County pursuant to 'a
service contract to provide maintenance or inspection
services pertaining to City property, County shall
utilize the Trust Fund to investigate, defend, and pay
any losses, costs, settlement awards, judgments or
expenses originating from claims or litigation
allegedly based upon the existence of a dangerous
condition of City's property as a result of the
negligent or wrongful act or omission of County
officers, agents or employees in the performance of
such service contracts.
7. No Funding of City's Unilateral Settlements or
Litigation
Should City agree, or stipulate or consent to the settlement
of any claim or action, the making or entry of any judgment,
order cr other award for damages or for other relief against
itself or any of its officers, agents or employees or against
County or its officers, agents or employees in any proceeding or
action authorized by law, involving a matter arising out of the
performance by County pursuant to the service contracts, without
the prior written consent thereto of County, then City agrees to
indemnify, hold harmless and defend County from any loss, cost or
expense sustained by County arising from such claim, judgment or
other award irrespective of the legal basis upon which liability
may be imposed by such claim or action, including liability of
County under the provision of 5895.2 of the Government Code.
8. Cooperation in Assumption of Liability
City and County agree to fully cooperate and assist each
other in all matters relating to losses covered by the terms of
this agreement.
More specifically, but not limited thereby, each party will
(a) In the event of a claim or suit or an occurrence likely
to involve a claim or suit covered by this agreement, give prompt
written notice to the other party. Written notice shall contain .
the name and address of the person or organization sustaining
injury or damage, and of any witnesses, as well as the time,
place and circumstances of the occurrence.
(b) If claim is made or suit is brought against a party on
occurrences covered or likely to be covered by the terms hereof,
such -party shall immediately forward every claim, demand, notice,
summons or other process received by it to the other party.
c) Cooperate with the other party and, upon the other
party's request assist in the processing of suits and enforcing
any right of contribution or indemnity against any person or
organization who may be liable to the other party for injury or
damage covered by this agreement; attend upon request hearings
and trials, assist in securing and giving of evidence and
obtaining the attendance of witnesses.
9. participation in Litigation
Any party may as its own cost participate in the defense of
any suit, or in the prosecution of any appeal affecting matters
herein involved where the duty of defense or prosecution is
imposed on the other party, and where the other party has
consented thereto.
10. Application of Agreement to Other Agreements
This agreement shall apply to and shall be deemed to be a
part of all agreements now existing or hereafter entered into
including amendments,, renewals, or other extensions thereof,
wherein City and County have contracted under circumstances
wherein the liability of City and County is joint and several
under S895.2 of the Government Code of the State of California.
11. Control over Prior Agreements
Any references in service contracts to the "Assumption of
Liability Agreement" shall be deemed to be to this Agreement.
The provisions of this agreement shall supersede and control
any other provisions inconsistent herewith in any such
over
contract, and control future agreements between the parties
hereto unless by specific reference therein this Joint Indemnity
Agreement is made inapplicable.
12. Termination of Agreement
This agreement shall continue during the term of any service
contract between City and County unless:
(a) County elects to terminate this agreement upon thirty
days written notice to City.
(b) Upon County's election, if City fails to cooperate with
County as required by this agreement.
10
(c) Upon County's election if City authorizes any judgment,
order or other award for damages without the consent of - County in
violation of the terms and provisions of this agreement.
(d) Upon County's election in its absolute discretion to
terminate this Joint Indemnity Agreement as to all cities having
such service contracts with County.
On the termination of this agreement, City shall not be
entitled to return of any consideration paid by it towards the
Trust Fund. Termination of this agreement shall not relieve City
of its obligation to make contributions as required by
Paragraph 4.
13. Termination of Service Contracts Between
County and City_
On termination by City of service contract with County or
termination of said contract by County for any cause, County
and/or City shall continue to defend, indemnify and hold harmless
the other party for all claims and losses pursuant to the terms
of this agreement arising prior to the effective date of said
termination.
IN WITNESS WHEREOF, the parties hereto have caused this
agreement to be executed by their duly authorized officers the
day and year hereinafter set forth.
CITY OF VERNON
APPROVED AS TO PO.`' -i
BY4:i.
DAVID B. ERI.ARLEY
CITY ATTORNEY j
Mayor Pro Tem
ATTEST this /gam day of
CO Y OF LOS ANG ES
By
Chairman, Board of Supervisors
Y J. MONTEILH
ecut've Officer
d isor
Deputy
APPROVED AS TO FORM:
DE WITT W. CLINTON
County Counsel
By
Deputy
9- 12.JIA
ADOPTED
BOARD OF SSUPERV 'Oft ".:..
ccxx.Y: LC rf?._t