Resolution No. 8857
WHEREAS, the City of Vernon ("City") is constructing a 134
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
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RESOLUTION NO. 8857
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.
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, on September 7, 2005, the City Council of the City
20 of Vernon adopted Resolution No. 8849 ratifying the extension of the
21 Policy to September 15, 2005; and
22 WHEREAS, since the commercial operation of the Malburg
23 Project is now scheduled for October 15, 2005, the City desires to
24 extend the Policy to protect the City; and
25 WHEREAS, the City employed the services of Arthur J.
26 Gallagher & Co. Insurance Brokers of California, Inc. ("Arthur J.
27 Gallagher") to act as the City's broker to structure and obtain the
28 appropriate insurance coverage for the extended period September 15,
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1 2005 through October 15, 2005; and
2 WHEREAS, in order to meet the urgent need for the extension
3 of the Policy, the City Attorney authorized the extension and payment
4 of the premium, subject to ratification by the City Council; and
5 WHEREAS, the City Council of the City of Vernon has
6 determined that, pursuant to the provisions of subsection (a) of
7 Section 2.27 of the Vernon City Code, it is in the public interest
8 and necessity to ratify the additional extension of the Policy through
9 Arthur J. Gallagher.
10 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
11 CITY OF VERNON AS FOLLOWS:
12 SECTION 1: The City Council of the City of Vernon hereby
13 finds and determines that the recitals contained hereinabove are true
14 and correct.
15 SECTION 2: The City Council of the City of Vernon hereby
16 ratifies and approves the additional extension of the Builders Risk
17 Policy through Arthur J. Gallagher & Co and authorizes the Acting City
18 Clerk, or his designee, to execute any and all documents necessary for
19 the purpose of securing the extension of the Policy and to implement
20 and carry out the purposes specified in the insurance extension on
21 behalf of the City of Vernon.
22 SECTION 3: The City Council of the City of Vernon hereby
23 approves the payment of the extension premium in accordance with the
24 terms of the insurance extension in an estimated not to exceed amount
25 of $57,020.00.
26 SECTION 4: The City Council of the City of Vernon hereby
27 directs the Acting City Clerk, or his designee, to send a copy of this
28 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
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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 21st day of September, 2005.
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",P LEONIS C. MA' URG, ayor
ATTEST:
JR., Acting City Clerk
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1 STATE OF CALIFORNIA
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4 I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
COUNTY OF LOS ANGELES
5 Vernon, do hereby certify that the foregoing Resolution, being
6 Resolution No. 8857, was duly adopted by the City Council of the City
7 of Vernon at a regular meeting of the City Council duly held on
8 Wednesday, September 21, 2005, and thereafter was duly signed by the
9 Mayor of the City of Vernon.
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MALKENHORST, JR.
ity Clerk
(SEAL)
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