Resolution No. 9133w
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RESOLUTION NO. 9133
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON ESTABLISHING AND ADOPTING A SCHEDULE OF
ENCROACHMENT LICENSE AND PERMIT LIABILITY INSURANCE
LIMITS PURSUANT TO CHAPTER 22, SECTIONS 22.49-1 AND
22.74 OF THE CODE OF THE CITY OF VERNON
WHEREAS, the City of Vernon (the "City") is a municipal
corporation and a chartered city of the State of California organized
and existing under its Charter and the Constitution of the State of
California; and
WHEREAS, Chapter 22, Article III of the Vernon City Code
provides for the issuance of encroachment licenses and permits; and
WHEREAS, Vernon City Code Section 22.49-1(b) requires all
encroachment permittees to have liability and property damage
insurance in amounts established by schedules adopted by resolution of
the City Council; and
WHEREAS, Vernon City Code Section 22.74 requires all
encroachment licensees to have public liability and property damage
insurance in amounts established by schedules adopted by the City
lCouncil on an annual basis; and
WHEREAS, on June 19, 1990, the City Council of the City
adopted Resolution No. 5772 providing the limits for public liability
and property damage insurance for encroachment licenses involving (i)
nonhazardous facilities, equipment and materials; and (ii) hazardous
facilities, equipment and materials; and
WHEREAS, encroachment licenses are often granted for a term
up to twenty-five (25) years; and
WHEREAS, City staff have reviewed the schedule of liability
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insurance limits for encroachments licenses and determined that the
liability insurance limits need to be updated; and
WHEREAS, after review of the insurance limits for
encroachment permits, City staff have concluded that the liability and
property damage insurance limits need to be determined by the Director
of Community Services, subject to the approval of the City Attorney,
prior to issuance of each encroachment permit.
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
finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: A policy or policies of public liability and
property damage insurance for encroachment permits shall be in an
amount determined by the Director of Community Services and approved
by the City Attorney prior to the issuance of each permit.
SECTION 3: A policy or policies of public liability and
property damage insurance for encroachment licenses involving
nonhazardous facilities, equipment, and materials shall be required
with the following minimum limits of One Million Dollars and No Cents
($1,000,000.00) for General Liability and Two Million Dollars and No
Cents ($2,000,000.00) for Umbrella or Excess Coverage and/or One
Million Dollars ($1,000,000.00) for Pollution Legal Liability,
including but not limited to the following:
A. Underground storage tanks and pipelines containing
nonflammable liquids such as water, food products, and
related items;
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B. Aboveground storage tanks and pipelines containing
nonflammable liquids such as food products, and related
materials;
C. Overhead signs, canopies, roof drains, overhead
conduits less than two (2) inches in diameter,
telephone cables, conduits, and underground tunnels
used for passage lights, barricades, or warning devices
furnished and/or maintained; signs, rolling gates,
metering manholes, footings and related equipment.
SECTION 4: A policy or policies of public liability and
property damage insurance for encroachment licenses involving
hazardous facilities, equipment, or materials shall be required with
the following minimum limits of Two Million Dollars and No Cents
($2,000,000.00) for General Liability and Five Million Dollars and No
Cents ($5,000,000.00) for Pollution Legal Liability and/or Umbrella or:
Excess Coverage, including but not limited to the following:
A. Underground storage tanks and pipelines containing
flammable, combustible, or hazardous liquids, or
materials such as oils, solvents, gasoline, propane,
LNG, or related chemicals;
B. Aboveground storage tanks and pipelines containing
flammable, combustible, or hazardous liquids or
materials such as oils, solvents, gasoline, propane,
LNG, or related chemicals;
C. Overhead conduits in excess of two (2) inches, conveyor
bridges and tunnels, pipe bridges or pipelines,
overhead bridges for passageway, electrical conduits
which are for intrinsically safe circuits used in the
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transmission or distribution of power or electricity,
or electrical conduits along a street and related
equipment or structures.
SECTION 5: Each policy or policies shall contain statutory
corkers' compensation and employers' liability coverage.
SECTION 6: The schedule of liability insurance limits for
;ncroachment licenses and permits provided for herein shall be
affective October 1, 2006, and any resolution or part of resolution in
,onflict with this resolution is hereby repealed.
SECTION 7: The Acting City Clerk of the City of Vernon
,hall certify
to the passage of this resolution, and thereupon and
'hereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 4 th day of October, 2006.
ATTEST•
BRUCE V.U4ALKENHORST, JR.
Acting City Clerk
11 / ill
iHOMAS A. YBARRA, Mayor Pro Tem
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 9133, was duly adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Wednesday, October 4, 2006, and thereafter was duly signed by the Mayor
Pro Tem of the City of Vernon.
(SEAL)
BRUCE V. ALKENHORST, JR.
Acting ity Clerk
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CITY ATTORNEY' S OFFICE
INTER -DEPARTMENT MEMORANDUM �E S 9 I T Z
DATE: September 20, 2006
-r0: Bruce V. Malkenhorst, Jr., Acting City Clerk
FROM: Willard G. Yamaguchi, Chief Deputy City Attorney/Acting
Risk Manager
Re: Schedule of Liability Insurance Limits for Encroachment
Licenses and Permits
Dear Bruce:
I recommend that the City approve a resolution updating the schedule
of liability insurance limits for encroachment permits and licenses
as follows:
1. For nonhazardous encroachment licenses:
a. General Liability and Umbrella or Excess Liability remains
the same.
b. Add $1 million for Pollution Legal Liability.
2. For hazardous encroachment licenses:
a. General Liability remains the same.
b. Change Umbrella or Excess coverage to Pollution Legal
Liability coverage and change amount from $10 million to
$5 million.
3. For encroachment permits:
a. Provide for coverage as determined by the Director of
Community Services and approved by the City Attorney.
In light of Vernon City Code Sections 22.49-1 and 22.74 regarding
insurance limits for encroachment permits and licenses, I reviewed
the insurance limits established by Resolution No. 5772 adopted on
June 19, 1990, with Arthur J. Gallagher & Co. Gallagher suggested
clarifying coverages and changing the limit for hazardous licenses
to meet current industry standards.
I look forward to discussing this matter with you at your earliest
convenience.
jl
cc: Kevin Wilson, Director of Community Services & Water