Resolution No. 8849
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RESOLUTION NO. 8849
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE ACTIONS TAKEN
REGARDING THE EXTENSION OF THE CITY'S COMMERCIAL
BUILDER'S RISK POLICY THROUGH ARTHUR J. GALLAGHER &
CO.
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7 WHEREAS, the City of Vernon (~City") is constructing a 134
8 MW Combined Cycle Power Plant officially named the Malburg Generating
9 Station (the ~Malburg Project") for the purpose of installing
10 additional generating capacity that will yield an efficient, cost-
11 effective, and reliable source of electric generation to the City's
12 inhabitants; and
13 WHEREAS, the City's current Builders Risk Policy (the
14 ~Policy") with Imperial Premium Finance, Inc. was approved by
15 Resolution No. 8396 adopted on March 3, 2004; and
16 WHEREAS, the Policy was to reasonably cover the City's risk
17 during the construction of the Malburg Project, through start-up (hot
18 testing) and commissioning through August 15, 2005; and
19 WHEREAS, since the commercial operation of the Malburg
20 Project is scheduled for September 15, 2005, the City desired to
21 extend the Policy to protect the City; and
22 WHEREAS, the City employed the services of Arthur J.
23 Gallagher & Co. Insurance Brokers of California, Inc. (~Arthur J.
24 Gallagher") to act as the City's broker to structure and obtain the
25 appropriate insurance coverage for the extended period August 15, 2005
26 through September 15, 2005; and
27 WHEREAS, in order to meet the urgent need for the extension
28 of the Policy, the City Attorney authorized the extension and payment
1 of the premium, subject to ratification by the City Council; and
2 WHEREAS, the City Council of the City of Vernon has
3 determined that, pursuant to the provisions of subsection (a) of
4 Section 2.27 of the Vernon City Code, it is in the public interest
5 and necessity to ratify the extension of the Policy through Arthur J.
6 Gallagher.
7 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
8 CITY OF VERNON AS FOLLOWS:
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SECTION 1:
The City Council of the City of Vernon hereby
10 finds and determines that the recitals contained hereinabove are true
11 and correct.
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SECTION 2:
The City Council of the City of Vernon hereby
13 ratifies and approves the extension of the Builders Risk Policy
14 through Arthur J. Gallagher & Co and authorizes the Acting City Clerk,
15 or his designee, to execute any and all documents necessary for the
16 purpose of securing the extension of the Policy and to implement and
17 carry out the purposes specified in the insurance extension on behalf
18 of the City of Vernon.
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SECTION 3:
The City Council of the City of Vernon hereby
20 approves the payment of the extension premium in accordance with the
21 terms of the insurance extension in an estimated not to exceed amount
22 of $60,379.76.
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SECTION 4:
The City Council of the City of Vernon hereby
24 directs the Acting City Clerk, or his designee, to send a copy of this
25 Resolution to:
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Arthur J. Gallagher & Co.
Insurance Brokers of California, Inc.
Attn. Jayne Sexton Mazziotti, Account Executive
505 N. Brand Blvd., Suite 600
Glendale, CA 91203-3944
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SECTION 5:
The Acting City Clerk of the City of Vernon
2 shall certify to the passage of this resolution, and thereupon and
3 thereafter the same shall be in full force and effect.
4 APPROVED AND ADOPTED this 7th day of September, 2005.
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~lriyor
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ATTEST:
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11 BRUCE V. MALKENHORST, JR., Acting City Clerk
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1 STATE OF CALIFORNIA
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COUNTY OF LOS ANGELES
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I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 8849, was duly adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Wednesday, September 7, 2005, and thereafter was duly signed by the
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9 Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, JR.
Acting City Clerk
(SEAL)
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SUPPORTING
DOCUMENTS
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
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INVOICE#
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
09/15/05
58,215.78
DETACH & RETURN THIS PORTION TO INSURE PROPER CREDIT
PLEASE REMIT PAYMENT TO: FILE # 62430, LOS ANGELES, CALIFORNIA 90074-2430
INVOICE # 74071
08/J 5/05
BLOC 42HHP37oolO0
Extending cae tOr 30 days
Global Special Risk
$ 57,020,00
08115/05
BLOC 42HBP37ooloo
CA State Taxes
Global Special Risk
$ 1.111.89
08/15/05
BLOC 42BHP37ool00
CA Stamping Fee
Global Special Risk
$ 83,89
ARTHUR J. GALLAGHER & CO.
. Insurance Brokers Of California. Inc.
Invoice Balance: ./~6S ~\~\b58
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RETAIN BOTTOM HALF FOR YOUR RECORDS
APPROVEO FOR PAYMENT
Compensation Disclosure
Gallagher receives usual and customary brokerage commissions or fees (and occasionally fees in
addition to commissions) for its services. In addition to such fees and commissions, Gallagher may also
receive compensation in other forms. For more details. please see the Gallagher website at
www,aiQ,com or contact your Gallagher representative.