Resolution No. 84021
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RESOLUTION NO. 8402
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE ACTIONS TAKEN
REGARDING RENEWAL OF BUILDERS RISK INSURANCE FROM
TRAVELERS PROPERTY CASUALTY INSURANCE FOR
CONSTRUCTION OF BUILDING AT 3375 EAST SLAUSON
WHEREAS, the City of Vernon ("City") is constructing a two-
story concrete tilt -up office building at 3375 Slauson Avenue (the
"Business and Technology Development Center Project"); and
WHEREAS, the City's current Builders Risk policy with
Travelers Property Casualty Insurance ("Travelers") to reasonably
cover the City's risk during the construction of the Business and
ITechnology Development Center Project expires on March 4, 2004; and
WHEREAS, the City desired to renew the policy of insurance
for the Business and Technology Development Center Project to protect
the City for the balance of the construction of the Project; and
WHEREAS, the City employed the services of Arthur J.
Gallagher & Co. ("Arthur J. Gallagher") to act as the City's broker to
structure and obtain the appropriate insurance coverage; and
WHEREAS, Arthur J. Gallagher has recommended that the City
enter into an arrangement with Travelers for the provision of
insurance; and
WHEREAS, in order to meet the urgent need for renewal of the
insurance policy, the City Administrator executed a Proposal
Acceptance Page and Statement of Values (the "Agreement") with.
Travelers through Arthur J. Gallagher, dated March 12, 2004, and
authorized the annual payment of $14,790.00 in accordance with the
terms thereof, subject to ratification by the City Council; and
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WHEREAS, on March 16, 2004, the Finance Committee considered
the recommendation of Bruce V. Malkenhorst, the Director of Finance,
dated March 11, 2004, that the actions of the City Administrator
pertaining to obtaining the necessary insurance coverage for the
Business and Technology Development Center Project, issuing the annual
premium payment and executing the Agreement with Travelers Property
Casualty Insurance, be ratified; and
WHEREAS, the City Council desires to approve and ratify the
Agreement, as executed by the City Administrator, and the annual
premium payment in accordance therewith; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (a) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to ratify entering into the Agreement with Travelers,
through Arthur J. Gallagher.
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
Ifinds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
ratifies the execution of the Proposal Acceptance Page and Statement
of Values with Travelers Property Casualty Insurance, through Arthur
J. Gallagher & Co., a copy of which is attached hereto as Exhibit "A"
and made a part hereof.
SECTION 3: The City Council of the City of Vernon hereby
approves and ratifies the annual premium payment of $14,790.00 in
accordance with the terms of the Agreement.
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SECTION 4: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to execute any and
all documents necessary for the purpose of securing the insurance for
the Business and Technology Development Center Project and to
implement and carry out the purposes specified in the Agreement on
behalf of the City of Vernon.
SECTION 5: The City Council of the City of Vernon hereby
directs the City Clerk, or his designee, to send a copy of this
Resolution to:
Arthur J. Gallagher & Co.
Attn. Jayne Sexton Mazziotti, CIC
505 N. Brand Blvd., Suite 600
Glendale, CA 91203-3944
SECTION 6: 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 24th day of March, 2004.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
y
LLE_ONIS C. MAL URG, Mayor
- 3 -
1 STATE OF CALIFORNIA )
2 ) ss
COUNTY OF LOS ANGELES )
3
4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
5 hereby certify that the foregoing Resolution, being Resolution No.
6 8402, was duly adopted by the City Council of the City of Vernon at an
7 adjourned regular meeting of the City Council duly held on Wednesday,
8 March 24, 2004, and thereafter was duly signed by the Mayor of the City
9 of Vernon.
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BRUCE V. MALKENHORST, City Clerkl,
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13 (SEAL)
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EXHIBIT
STATEMENT OF VALUES
VALUES March 4, 2004 to March 4, 2005
FOR:
2-STORY CONCRETE TILT -UP $2,650,000
BUILDING UNDER CONSTRUCTION AT
3375 SLAUSON AVENUE, VERNON,
CA
BASED ON 100% F ESTIMATED COMPLETED VALUE
X"City Administrator 3%j�2�aLf
NAME TITLE DATE
Bruce V. Malkenhorst
COVERAGE RECOMMENDATIONS
The following coverages are not included in this proposal; we recommend that you
consider these coverages carefully. The status represents our most recent discussions
regarding the coverage. A quotation for these coverages will be provided upon request
Builders Risk Soft Costs (additional
expenses associated with delayed
construction/delayed opening)
Builders Risk — Loss of Rents (loss of
future rental income associated with
delayed construction/delayed opening)
Boiler & Machinery/Equipment
Breakdown Coverage
City of Vernon PAGE = 6 =
The proposal is an outline of the coverages proposed by the insurers, It does not include all the terms,
coverages, exclusions, limitations or conditions of the actual contract language. Please read your policy for
these items.
PROPOSAL ACCEPTANCE
POLICY OPTIONS:
Bind All Policies As Shown Herein
Bind TRIA Terrorism Coverage As Quoted For the Following Policies: Builders
Risk
r�
Provide Quotations or Additional Information on the following Recommended
Coverages:
This proposal is an outline of the coverages proposed by the respective insurers based on
the information provided by your company. It does not include all the terms, coverages,
exclusions, limitations or conditions of the actual contract language. The policies
themselves must be read for those details. Policy forms for your reference will be made
available upon request.
I have reviewed and accept the policies and disclosures as outlined in this
proposal with the changes or choices shown above.
v City Administrator 3/1 z/,0
7
Signature
Bruce V. rlalkenhorst
Title Date
City of Vernon
The proposal is an outline of the coverages proposed by the insurers, It does
coverages, exclusions, limitations or conditions of the actual contract language.
these items.
PAGE=9=
not include all the terns,
Please read your policy for
SUPPORTING
DOCUMENTS
vWpF Arthur. J. Gallagher & Co.
March 4, 2004
Ms. Joan Francone
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Re: 03/04/04 to 03/04/05
Commercial Insurance Renewal Confirmation
Dear Joan :
D TUTI TjH�� 1_1 U��
MAR - 9 2004
LEGALA
Insurance Brokers of California, Inc.
Per your meeting with Mr. John Cookman the following policy has been renewed per the expiring terms &
conditions with the changes shown (if any):
Travelers Property Casualty In
Builders Risk -Commercial Policy Policy # QT660142D7915-TIL-04
Changes From Proposal: None
The annual premium is $14,790 per the enclosed invoice.
Coverage Recommendation Section:
At this time you do not wish to pursue quotations for any of the items shown on the coverage recommendation
page(s) in the proposal. Please let us know if you would like more information on any of these items at a later
date.
Also enclosed are the following items:
• Policy Binder - The binder provides evidence of your coverage until the policy is issued by the carrier.
Please treat the binder as you would your policy.
Attached are the following items which need your review or signature. Please complete and return them before
the dates indicated below.
Item Return Before
• Proposal Acceptance Page - Please sign the attached copy of the acceptance 03/15/04
page which was included in your proposal
• Statement of Values — Attached is a copy of your current Statement of Values. 03/15/04
The insurance carrier requires that you provide a signed copy at each renewal
period.
The policy will be sent to you upon receipt. We look forward to working with you in the coming year.
Should you have any questions, please call.
Sincer ly,
yne ton Mazziotti, CIC
Account Executive
505 North Brand Boulevard, Suite 600
Glendale, CA 91203-3944
818.539.2300
Fax 818.539.2301
License# 0726293
www.aig.com
INVOICE# 52874
MUMOMMOMMMCITYO.2 MT 03/04/04
1 nm
ARTHUR J. GALLAGHER & CO.
Insurance Brokers Of California, Inc.
505 North Brand Boulevard, Suite 600
Glendale, CA 91203-3944 .
Phone: (818) 539-2300
License # 0726293' "
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Office Building under construction at 3375 Slauson Avenue,
Vernon, Ca.
03/04/05
In
Invoice Balance: $ 14,790.00 1
ARTHUR J. GALLAGHER & CO.
Insurance Brokers Of California, Inc. RETAIN BOTTOM HALF FOR YOUR RECORDS
STATEMENT OF VALUES
VALUES March 4, 2004 to March 4, 2005
FOR:
2-STORY CONCRETE TILT -UP $2,650,000
BUILDING UNDER CONSTRUCTION AT
3375 SLAUSON AVENUE, VERNON,
CA
BASED ON 100% F ESTIMATED COMPLETED VALUE
:�� �— Cit Administrato
NAME
Bruce V. Malkenhorst
i r
TITLE
1Il-1UI
DATE
COVERAGE RECOMMENDATIONS
The following coverages are not included in this proposal; we recommend that you
consider these coverages carefully. The status represents our most recent discussions
regarding the coverage. A quotation for these coverages will be provided upon request
• •
City of Vernon
PAGE =6=
The proposal is an outline of the coverages proposed by the insurers, It does not include all the terms,
coverages, exclusions, limitations or conditions of the actual contract language. Please read your policy for
these items.
PROPOSAL ACCEPTANCE
POLICY OPTIONS:
YES
•
OPTION i
Bind All Policies As Shown Herein ,
Bind TRIA Terrorism Coverage As Quoted For the Following Policies: Builders
Risk
Provide Quotations or Additional Information on the following Recommended
Coverages:
This proposal is an outline of the coverages proposed by the respective insurers based on
the information provided by your company. It does not include all the terms, coverages,
exclusions, limitations or conditions of the actual contract language. The policies
themselves must be read for those details. Policy forms for your reference will be made
available upon request.
have reviewed and accept the policies and disclosures as outlined in this
proposal with the changes or choices shown above.
CityAdministrator 3 � t�
strator `� �� 7
Signature
Bruce V. Malkenhorst
City of Vernon
Title Date
PAGE =9=
The proposal is an outline of the coverages proposed by the insurers, It does not include all the terms,
coverages, exclusions, limitations or conditions of the actual contract language. Please read your policy for
these items.
CITY OF VERNON
4305 SANTA FE AVENUE
VERNON, CALIFORNIA 90058-0805
(323) 583-8811
PAY FOURTEEN THOUSAND SEVEN
TO THE 'RTC J . GALLAGH
ORDER OF
Bank of America
16/66
CHECK 00215350
NUMBER
CHECK DATE CHECK AMOUNT
03/11/04 $14,790.00
VOID AFTER 90 DAYS
& 00 CENTS
1110021535011' 1:122000660: L4Sgy' L04831a
ACORD INSURANCE BINDER OP ID
DATE
03/04/04
THIS BINDER IS A TEMPORARY INSURANCE CONTRACT, SUBJECT TO THE CONDITIONS SHOWN ON THE REVERSE SIDE OF THIS FORM.
PRODUCER � A/C,No,Ext: 818-539-2300
COMPANY
BINDER# 8937
818-539-2301
Arthur J. Gallagher & Company
Travelers Property Casualty I
EFFEECiIv
DATE
TIME
I
DATE
I TIME
License #0726293
505 N.Brand Blvd, Suite 600
1 X
AM
X
12:01AM
Glendale CA 91203-3944
03/04/04
12:01
PM
05/04/04
171NOON
THIS BINDER IS ISSUED TO EXTEND COVERAGE IN THE ABOVE NAMED COMPANY
PER EXPIRING POLICY C
QT660142D5528TI
CODE: SUB CODE:
CUSTOMER ID: CITYO-2
DESCRIPTION OF OPERATIONS/VEHICLES/PROPERTY (Including Location)
INSURED
2-story building under construction located
City of Vernon
at 3375 Slauson Avenue, Vernon, CA
4305 Santa Fe Avenue
Vernon CA 90058
6.V V CPfA%XCa 1 lUITC
TYPE OF INSURANCE
COVERAGEIFORMS
DEDUCTIBLE
COINS %
AMOUNT
PROPERTY CAUSES OF LOSS
BASIC BROAD a SPEC
Builders Risk, Repl Cost
Earthquake Sublimit
2,500
100000
100
$2, 650, 000
$1, 000, 000
Flood Sublimit
In Transit/Temp Storage
100000
2,500
$1,000,000
$100,000
GENERAL LIABILITY
EACH OCCURRENCE
$
COMMERCIAL GENERAL LIABILITY
CLAIMS MADE OCCUR
FIRE DAMAGE (Any one fire)
$
MED EXP (Any one person)
$
PERSONAL & ADV INJURY
$
GENERAL AGGREGATE
$
RETRO DATE FOR CLAIMS MADE:
PRODUCTS - COMP/OP AGG
$
AUTOMOBILE LIABILITY
COMBINED SINGLE LIMIT
$
ANY AUTO
BODILY INJURY (Per person)
$
ALL OWNED AUTOS
BODILY INJURY (Per accident)
$
SCHEDULED AUTOS
PROPERTY DAMAGE
$
HIRED AUTOS
MEDICAL PAYMENTS
$
NON -OWNED AUTOS
PERSONAL INJURY PROT
$
UNINSURED MOTORIST
$
AUTO PHYSICAL DAMAGE DEDUCTIBLE
ALL VEHICLES SCHEDULED VEHICLES
ACTUAL CASH VALUE
COLLISION:
$
STATED AMOUNT
OTHER THAN COL•
OTHER
GARAGE LIABILITY
AUTO ONLY - EA ACCIDENT
$
ANY AUTO
OTHER THAN AUTO ONLY:
EACH ACCIDENT
$
AGGREGATE
$
EXCESS LIABILITY
EACH OCCURRENCE
$
UMBRELLA FORM
AGGREGATE
$
OTHER THAN UMBRELLA FORM
RETRO DATE FOR CLAIMS MADE:
SELF -INSURED RETENTION
$
WC STATUTORY LIMITS
WORKER'S COMPENSATION
AND
E.L. EACH ACCIDENT
$
E.L. DISEASE - EA EMPLOYEE
$
EMPLOYER'S LIABILITY
E.L. DISEASE - POLICY LIMIT
$
SPECIAL Pending issuance and delivery of the actual policy. Coverage is subject
CONDITIONS/ to all policy terms, conditions and exclusions. Assigned Policy #QT666
OTHER COVERAGES 142D7915-TIL-04
FEES
$
TAXES
$
ESTIMATED TOTAL PREMIUM
$
rv„mr- a rwuncaa
MORTGAGEE ADDITIONAL INSURED
LOSS PAYEE
LOAN #
AUTHORIZED REPRESENTAT VE
ACORD 75-S (1/98) NOTE: IMPORTANT STAT FORMATION ON REVERSE SIDE CACORD CORPORATION 1993