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Resolution No. 90011 2 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 RESOLUTION NO. 9001 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, 2006; 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 WHEREAS, Arthur J. Gallagher has recommended that the City 1 enter into an arrangement with American for the provision of 2 insurance; and 3 WHEREAS, in order to meet the urgent need for renewal of the 4 insurance policy, the Acting Risk Manager authorized the renewal and 5 the payment of the annual premium in the sum of $52,657.42 to 6 implement the insurance policy, subject to ratification by the City 7 Council; and 8 WHEREAS, the Acting Risk Manager has recommended that the 9 actions taken to renew the necessary insurance coverage for the 10 Pollution Legal Liability Insurance, issuing the annual premium 11 payment and executing any forms necessary to implement the insurance 12 with American, be ratified; and 13 WHEREAS, the City Council desires to approve and ratify any 14 document executed by the Acting Risk Manager and the payment of the 15 annual premium in accordance therewith; and 16 WHEREAS, the City Council of the City of Vernon has 17 determined that, pursuant to the provisions of subsection (a) of 18 Section 2.27 of the Vernon City Code, it is in the public interest and 19 necessity to ratify renewal of the Pollution Legal Liability Insurance 20 with American, through Arthur J. Gallagher. 21 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 22 CITY OF VERNON AS FOLLOWS: 23 SECTION 1: The City Council of the City of Vernon hereby 24 finds and determines that the recitals contained hereinabove are true 25 and correct. 26 SECTION 2: The City Council of the City of Vernon hereby 27 ratifies and authorizes the Acting Risk Manager, or his designee, to 28 execute any and all documents necessary for the purpose of securing 1 2 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 the renewal of the insurance and to implement and carry out the purposes specified in the insurance renewal on behalf of the City of Vernon. SECTION 3: The City Council of the City of Vernon hereby approves and ratifies the annual premium payment of $52,657.42 in accordance with the terms of the insurance renewal. SECTION 4: The City Council of the City of Vernon hereby directs the Acting City Clerk, or his designee, to send a copy of this Resolution to: Arthur J. Gallagher & Co. Insurance Brokers of California, Inc. Attn. James C. Falbo, Account Executive 505 N. Brand Blvd., Suite 600 Glendale, CA 91203-3944 SECTION 5: The Acting 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 5th day of April, 2006. (ATTEST: l n_ BRUCE V%. MAL NHORST, JR. Act inct( City Jerk LEONIS C. ULBURT, Mayor - 3 - 1 2 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 11 I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9001, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, April 5, 2006, and thereafter was duly signed by the Mayor of the City of Vernon. (S EAL ) 1 BRUCE $ALKENHORST, JR. ActingkCZty Clerk - 4 - SUPPORTING DOCUMENTS pill AEnnruenta' A OMYW viro MM virWntlMW March 22, 2006 ARTHUR J GALLAGHER & CO INS BROKERS OF CA, INC 505 N. BRAND BLVD., #600 GLENDALE, CA 91203 Phone: 818-539-1320 Fax: 818-539-1620 RE: CITY OF VERNON 4305 S. SANTA FE AVE. Vernon, CA 90058-1714 POLLUTION LEGAL LIABILITY SELECT (PLL Selects) POLICY NUMBER PLS 4761886 SUBMISSION NUMBER: 762345890 PREMIUM INDICATION: 001 PLL Select coverage is bound for the above -captioned account, for the location(s) listed in Section IV effective 12:01 AM From: March 23, 2006 To: March 23, 2007 Coverage is bound using AMERICAN INTERNATIONAL SPECIALTY LINES, Form #76391 (08/04) and is bound for those coverage sections listed below in Section 1. SECTION 1 — Coverages and Limits: 1. The following Coverage Sections are bound: Coverage G- THIRD -PARTY CLAIMS FOR ON -SITE BODILY INJURY, PROPERTY DAMAGE OR CLEAN-UP COSTS - NON -OWNED LOCATIONS Coverage H- THIRD -PARTY CLAIMS FOR OFF -SITE BODILY INJURY, PROPERTY DAMAGE OR CLEAN-UP COSTS - NON -OWNED LOCATIONS Coverage 1- POLLUTION CONDITIONS RESULTING FROM TRANSPORTED CARGO A Division of Western Risk SpeclaHsts, Inc. - License #0434795 RSC® Used with Permission of Risk Specidsts Companies, Inc. PLS binder no terrorism 3-03-03 2. The following coverages are bound: Coverage Section Deductible -Each Incident Each Incident Limit Coverage Section Aggregate Limit A N/A $ $ $ B N/A $ $ $ C N/A $ $ $ D N/A $ $ S E N/A $ $ $ F N/A $ $ $ G $25,000 $5,000,000 $5,000,000 H $25,000 $5,000,000 $5,000,000 1 $25,000 $5,000,000 $5,000,000 *Business Interruption (Days) Limit *Business Interruption ($) Limit J X $N/A Policy Aggregate Limit: $5,000,000 NOTICE: PLEASE READ CAREFULLY THE ATTACHED POLICYHOLDER DISCLOSURE STATEMENT UNDER TERRORISM RISK ACT OF 2002. YOU HAVE REJECTED THIS COVERAGE. For multi -year policies, the limit of liability stated in the chart above is shared over the policy term indicated. The limit of liability is not an annual limit of liability and is therefore not reinstated each year within the policy term. SECTION 11 - Premium Information: Policy Premium: $51,037 Commission %: 13% SECTION III - Policy Period and Retroactive and Continuity Dates: Policy Period: From: March 23,2006 To: March 26, 2007 Retroactive Date: None Continuity Date: March 23, 2001 Additional Policy Information: ■ Olinda Alpha Sanitary Landfill ■ El Sobrante Sanitary Landfill • Simi Valley Landfill -Recycling ■ Frank R Bowerman Sanitary Landfill ■ Antelope Valley Public Landfill ■ Azusa Land Reclamation ■ Bradley Landfill and Recycling Center • Chiquita Canyon Landfill • Commerce Refuse -to -Energy Facility ■ Nu -Way Live Oak Landfill • Peck Road Gravel Pit A Division of Western Risk Specialists, Inc. - License #0434795 RSC® Used with Permission of Risk SpeciaNats Companies, Inc. PLS binder no terrorism 3-03-03 ■ Puente Hills Landfill ■ Reliance Pit #2 Landfill ■ Sunshine Canyon Landfill ■ Landcaster Landfill SECTION IV - Insured Property(s): Non -owned locations shall be scheduled as per the expiring policy SECTION V - Policy Form Modifications: The AMERICAN INTERNATIONAL SPECIALTY LINES, Form #76391 (08/04) Form will be modified as follows: • AISLIC PLS Dec, Form#75321 (08/04) • Notice of Loss/Notice of Claim, Form#CI1141 (09/00) • War Exclusion Endorsement, Form#79098 (12/01) • Multiple Coverages Aggregate Limit Endorsement, Form#83260 (11/03) • Schedule of Non -Owned Locations, Form#72337 (07/00) - See Section II: Additional policy information • Microbial Matter Exclusion Endorsement, Form#78111 (01 /02) • Coverage I - 1" Party Carrier Exclusion, Form#76470 (07/00) • Terrorism Excl-All including Cert Acts, Form# 81268 (12/02) • Condition of Payment Endorsement, Form #90365 (01 /06) SECTION VI - Services: AIG is the largest U.S.-based international insurance organization and has successfully serviced clients in the pollution legal liability marketplace for a longer, continuous period than any other insurance company. Member companies of American International Group, Inc. earn consistently high marks from the major insurance company rating agencies, including A.M. Best Company, Standard & Poor's, and Moody's. As an integral part of our PLL Select program, we offer engineering, claims, and emergency response services: • Value Added Engineering: Our underwriting teams include dedicated engineers in each local AIG office. Through this group of professionals, which has experience in both the public and private sectors, AIG Environmental is able to offer loss control services that complement and enhance the policyholders environmental insurance program. Such services may include prospective risk surveys, application assistance, loss control information, regulatory insight, and value-added risk improvement services. • Claim Services: All environmental claims are handled centrally by a dedicated environmental unit due to the often complex nature of environmental incidents. The unit is staffed by trained professionals with specialized experience in environmental claims and includes individuals with backgrounds in insurance, law, finance, and environmental engineering. Claims are handled from initial investigation of liability to negotiation and settlement with government agencies and third parties. A Division of Western Risk Specialists, Inc. - License #0434795 RSC® Used with Permission of Risk Specialists Companies, Inc. PLS binder no terrorism 3-03-03 Emergency Response Service: To assist PLL Select policy holders in the event of an environmental incident, we have established a 24 hour hotline supported by a nationwide network of emergency and secondary response companies. The program, Pollution Incident and Environmental Response (PIER 11), includes a national program manager, advisory council, engineering support teams, and post -incident oversight and management. At policy issuance, we will provide a PIER II welcome package that includes rolodex cards and brightly colored stickers to be posted in prominent locations at the insured property(s). SECTION VII — Subject To: The above indication is subject to the receipt and satisfactory review and acceptance of the following, WITHIN 15 DAYS OF BINDING ■ Phone Survey Conducted by AIG-DE. The policy will be issued by AMERICAN INTERNATIONAL SPECIALTY LINES, which is a member company of American International Group, Inc. If coverage is bound, the premium must be remitted to AMERICAN INTERNATIONAL SPECIALTY LINES within 30 days of the effective date of the policy, or within 15 days of billing, whichever is later. Please provide a copy of your surplus lines license. It is your 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 and paid. This binder contains an outline of coverage and does not include all the terms, conditions and exclusions of the policy that may be issued. The Policy contains the full and complete agreement with regards to coverage. Please review the policy thoroughly upon receipt and notify us promptly in writing if there are any questions. Please feel free to contact me with any questions. Thank you for choosing to place your business with AIG. Sincerely, McKenzie Neil Risk Specialist A Division of Western Risk Specialists, Inc. - License #0434795 RSC® Used with Permission of Risk Specialists Companies, Inc. PLS binder no terrorism 3-03-03 3 - INVOICE# 82237 J. GOP leer & Co. C U 03/2. f aIlforriia, Inc, bra1(E�vard, Silite 600 �4 a 4 < aue S 52,657.42 ALLPItUNl AREDUE AND PAYABLE UPON RCBiPT t>& A III"1 iI1N-MIS PORTION TO INSURE PRQg+ R GROOM mufflialm • �... , ,. ro loop Pollution Renewal #4761836 A I. S L I C $ 51,037.00 i�LL i'Y:547611 CA Seuplus Line Tax 3.1 5'Y. A I S LI G S 1,6241.a2 Invoice Balance: $ S2,6S9.42 k, in �Califarnfa, `~ l sly 1 #�4 Ft t ii t1A i { H© < N , � [ Y Y S S 77 n•�3 L� �: l F �t : E Y y 1! V fi . k; �e` .... 1 p� i I�SY'M9f�rc"yr'^a+as1� ��'i+'�'� CITY COUNCIL LEONIS C. MALBUR Mayor t THOMAS A. YBARRA i Mayor Pro-Tem WM. 'BILL" DAVIS Councilman I H. "LARRY" GONZALES w.....�..,.. Councilman W. MICHAEL McCORMICK 4305 Santa Fe Avenue, Vernon, California 90058 Councilman telephone (323) 583-8811 April 19, 2006 Arthur J. Gallagher & Co. Insurance Brokers of California, Inc. ATTN: James C. Falbo, Account Executive 505 N. Brand Blvd., Suite 600 Glendale, CA 91203-3944 SOL BENUDIZ Police Chief MARK C. WHITWORTH Acting Fire Chief LEWIS J. POZZEBON Director of Environmental Health S. KEVIN WILSON Director of Community Services SHARON L. DUCKWORTH Acting City Treasurer Re: Resolution No. 9001 - Approving and Ratifying Actions Taken Regarding Renewal of Pollution Legal Liability Insurance from American International Specialty Lines Insurance Company Transmitted herewith is a copy of Resolution No. 9001 that was approved by City Council on April 5, 2006. If you have any questions regarding this matter, please call Mr. Willard Yamaguchi at (323) 583-8811 ext. 175. ery truly yours, Nell y 4Giro4nW� Deputy City Clerk NG:dr c: Willard Yamaguchi Resolution No. 9001 1E,1dagivelo 21OU 111