Resolution No. 84221
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RESOLUTION NO. 8422
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING ACTIONS TAKEN
REGARDING RENEWAL OF POLLUTION LEGAL LIABILITY
INSURANCE FROM AMERICAN INTERNATIONAL SPECIALTY
LINES INSURANCE COMPANY
WHEREAS, the City Council of the City of Vernon adopted
Ordinance No. 1067 on December 8, 1998, which added Article VI to
Chapter 12 of the Vernon City Code, establishing a non-exclusive
franchise system for solid waste collection in the City; and
WHEREAS, the City of Vernon developed a Standard Non -
Exclusive Franchise Agreement for Solid Waste Management Services
("Franchise Agreement") for solid waste collection businesses operating
in the City of Vernon; and
WHEREAS, the City of Vernon has evaluated its liability
insurance policies in light of the City's limited role in the
placement of waste in solid waste landfills; and
WHEREAS, the City's current Pollution Legal Liability
Insurance Policy with American International Specialty Lines Insurance
Company ("American") for insurance in excess of insurance coverage
required in the Franchise Agreement expires on March 23, 2004; and
WHEREAS, the City desired to renew the policy of insurance
with American to protect the City; and
WHEREAS, the City employed the services of Arthur J.
Gallagher & Co. Insurance Brokers of California, Inc. ("Arthur J.
Gallagher") to act as the City's broker to structure and obtain the
appropriate insurance coverage; and
2811 WHEREAS, Arthur J. Gallagher has recommended that the City
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tenter into an arrangement with American for the provision of
linsurance; and
WHEREAS, in order to meet the urgent need for renewal of the
insurance policy, the City Administrator authorized the annual payment
of $39,644.00 and the execution of any document necessary to implement
the insurance policy, subject to ratification by the City Council; and
WHEREAS, on April 6, 2004, the Finance Committee considered
the recommendation of Bruce V. Malkenhorst, the Director of Finance,
dated April 1, 2004, that the actions of the City Administrator
pertaining to obtaining the necessary insurance coverage for the
Pollution Legal Liability Insurance, issuing the annual premium
payment and executing any forms necessary to implement the insurance
with American, be ratified; and
WHEREAS, the City Council desires to approve and ratify any
document executed by the City Administrator and/or his designee 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 renewal of the Pollution Legal Liability Insurance
with American, 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 and authorizes the City Administrator, or his designee, to
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1 execute any and all documents necessary for the purpose of securing
2 the renewal of the insurance and to implement and carry out the
3 purposes specified in the insurance renewal on behalf of the City of
4 Vernon.
5 SECTION 3: The City Council of the City of Vernon hereby
6 approves and ratifies the annual premium payment of $39,644.00 in
7 accordance with the terms of the insurance renewal.
8 SECTION 4: The City Council of the City of Vernon hereby
9 directs the City Clerk, or his designee, to send a copy of this
10 Resolution to:
11 Arthur J. Gallagher & Co.
Insurance Brokers of California, Inc.
12 Attn. Chris Falbo, Account Executive
13 505 N. Brand Blvd., Suite 600
Glendale, CA 91203-3944
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SECTION 5: The City Clerk of the City of Vernon shall
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certify to the passage of this resolution, and thereupon and
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thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 7th day of April, 2004.
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c�-eea—
20 ,LEONIS C. MALB RG, May r
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ATTEST:
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24 BRUCE V. MALKENHORST, City Clerk
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3 -
1 STATE OF CALIFORNIA )
2 ) ss
COUNTY OF LOS ANGELES )
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
5 hereby certify that the foregoing Resolution, being Resolution No.
6 8422, was duly adopted by the City Council of the City of Vernon at a
7 regular meeting of the City Council duly held on Wednesday, April 7,
8 2004, and thereafter was duly signed by the Mayor of the City of
9 Vernon.
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BRUCE V. MALKENHORST, City Clerk'
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13 (SEAL)
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- 4 -
SUPPORTING
DOCUMENTS
- Cr'Y COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro -Tern
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL MCCORMICK
Councilman
BRUCE V. MALKENHORST
City Administrator/City Clerk
FAX (323) 826-1438
March 30, 2004
CITY HALL
4305 SANTA FE AVENUE, VERNON, CALIFORNIA 90058
TELEPHONE (323) 583-8811
Mr. Chris Falbo
Account Executive
Arthur J. Gallagher & Co.
Insurance Brokers.of California, Inc.
505 North Brand Blvd., Suite 600
Glendale, CA 91203-3944
ERIC T. FRESCH
City Attorney
FAX: (323) 826-1491
KEVIN WILSON
Director of Community Services & Water
FAX: (323) 826-1435
KENNETH J. DeDARIO
Director of Light & Power
FAX: (323) 826-1425
STEVEN E. PARKER
Fire Chief
FAX: (323) 826-1407
BRUCE W. OLSON
Police Chief
7�-�'` _ � )
4 �I
Via Federal Express
RE: American International Specialty Lines Insurance Co. Pollution
Legal Liability -Policy No. PLS 476 1886-03/23/04 to 03/23/05
Dear Chris:
Enclosed please find a signed Policyholder Disclosure Statement Under
Terrorism Risk Insurance Act of 2002 rejecting coverage in accordance
with the Act.
A copy of the City of Vernon financial statements for the past two
fiscal years will be sent under separate cover.
If you have any questions, please contact me at 323-640-3290 (cell).
Sincerely,
Eric T. Fresch
City Attorney
EF: j 1
Enclosure
'`xtucw alke horst.,_City Adm r3istrator/City Clerk
.MAR,03 2004 08:50 FIR 213 689 1812 213 669 1812 TO 918185391620 P.05
POLICYHOLDER DISCLOSURE STATEMENT
UNDER
TERRORISM RISK INSURANCE ACT OF 2002
You are hereby notified that under the federal Terrorism Risk Insurance Act of 2002 (the
'Act'► effective November 26, 2002, you now have a right to purchase insurance coverage for
losses arising out of an Act of Terrorism, which is defined in the Act as an act certified by the
Secretary of the Treasury (i) to be an act of terrorism, ([I) to be a violent act or an act that Is
dangerous to (A) human life; (B) property or (C) Infrastructure, (iii) to have resulted in damage
within the United States, or outside of the United States in case of an air carrier or vessel or the
premises of a U.S. mission and [iv) to have been committed by an individual or individuals acting on
behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population
of the United States or to influence the policy or affect the conduct of the United States
Govemment by coercion. You should read the Act for a complete description of Its coverage. The
Secretary's decision to certify or not to certify an event as an Act of Terrorism and thus covered by
this law is final and not subject to review. There Is a 4100 billion dollar annual cap on all losses
resulting from Acts of Terrorism above which no coverage will be provided under this policy and
under the Act unless Congress makes some other determination.
For your information, coverage provided by this policy for losses caused by an Act of
Terrorism may be partially reimbursed by the United States under a formula established by the Act.
Under this formula the United States pays 90% of terrorism losses covered by this law exceeding a
statutorily established deductible that must be met by the insurer, and which deductible is based on
a percentage of the insurer's direct earned premiums for the year preceeding the Act of Terrorism.
Unless you slgn this form and return it to us rejectina Terrorism Coverage under the Federal
Act, you will be covered for Terrorism as defined In the Act and your premium for that coverage is:
Terrorism Act Premium: $ 3,780
The premium stated herein does not include any surplus lines taxes or fees that may be applicable,
which are the responsibility of the insured. It is the broker's responsibility to follow applicable state
surplus lines laws and, in particular, to see that the appropriate premium tax (and stamping office
fee, if applicable) is collected from you and paid.
i hereby reject coverage in accordance with the Act.
:Z::�&
Return to. -
Signature ot Insured [U/W name)
SCY Cl 77 7_T 4/VO7 ' [address]
[Company-AISLIC, C&I, or LEXJ
Print Name and Title NAMED INSURED: [insert]
1 44J/ 2 o 0 �/ POLICY; /SUBMISSION #: [insert]
Date f
QUOTE — ONE OPTION — SURPLUS LINES
61307 (1/03)
CI1975
Page 5 0(12 - Received: MAN 8:56:18 AM (Pacific Standard Thej From: 213 6841812 Flu: CFALBO
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
INVOICE#
MMMW
CITYO-2 FI
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
ALL PREMIUMS ARE DUE AND PAYABLE UPON RECEIPT'
DETACH & RETURN THIS PORTION TO INSURE PROPER CREDIT
PLEASE'• TO: 62430, LOS ANGELES, CALIFORNIA901 1
INVOICE # 53579
03/23/04 POLL 4761886
03/23/04 POLL 4761886
k ARTHUR J. GALLAGHER & CO.
Insurance Brokers Of California, Inc.
$5M/$5M
Surplus Lines Takes & Fees
AISLIC $ 38,405.00
AISLIC $ 1,239.00
Invoice Balance: $ 39,644.00
RETAIN BOTTOM HALF FOR YOUR RECORDS
CITY OF VERNON'
4305 SANTA FE AVENU1E
VERNON, CALIFORNIA 90058-0805
(323) 583-8811
PAY TO
THE
ORDER OF
FOLIO NUMBER
300104
THE SUM OF a39,644dols 0 0cts
Arthur J. Gallagher & Co.
Bank of America CHECK
16f66 NUMBER
II' 300 L019ne is i 2 200066 0: L4594ssi L048 3IId
CITY OF VERNON • 4305 SANTA FE AVE. • VERNON, CALIFORNIA 90058-0805
CHECK DATE
04 TOTJ.O4_
CHECK AMOUNT
___]
$39,644.00
VOID AFTER 90 DAYS
VENDOR NO.
VENDOR NAME
DATE CHECK ISSUED
CHECK NO.
4 / l/04
300104
CITY ACCOUNT NUMBER
YOUR INV. NO.
YOURINV. DATE
PAYMENT DESCRIPTION
DISC. TAKEN
NETAMT. PAI[
011-500-1025-5962
Pollution Legal Liability Insuraice
3/2004-3/2005
file date 4/7/04
39,644.00
ARTHUR I GALLAGHER & CO.
WIRE TRANSFER INSTRUCTIONS
Account Name:
Lockbox Account Number:
Bank:
A.J. Gallagher & Co. Insurance Brokers of
CA, Inc.
12336-11193
Bank of America
1850 Gateway Blvd.
Concord, Ca 94520
Transit Routing Number: ABA 121000358