Resolution No. 94431 RESOLUTION NO. 9443
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3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
4 AN ENGAGEMENT LETTER AGREEMENT BY AND BETWEEN THE
5 CITY OF VERNON AND KINSEL CONSULTING GROUP, LCC
REGARDING INSURANCE CLAIMS ,
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7 WHEREAS, the City is currently covered by a Commercial
8- Insurance Program consisting of a Property Policy (including
9 earthquake and equipment breakdown), General. Liability and first and,
10 second excess liability policies; and
11 WHEREAS, the City recently experienced a breakdown in
12 equipment at the Malburg Generating Station which it believes to be
13 covered under its current insurance policy; and
14 WHEREAS, the Risk Manager has recommended that the City
15 retain .the services of a firm to assist the City in preparing a claim
16 for submittal to the insurance underwriter respecting said equipment
17 failure; and
18 WHEREAS, the City will be reimbursed for the professional
19 fees paid to such a firm as part of the claim submitted to the
20 insurance underwriter under its current insurance policy coverage; and
21 WHEREAS, the Risk Manager has recommended the engagement of
22 Kinsel Consulting Group, LLC ("Kinsel"), a firm that specializes in
23. preparing and assisting the insured in documenting and supporting
24 their claim; and
25 WHEREAS, the City Council of the City of Vernon has
26 determined that, pursuant to the provisions of subsection (a) of
27 Section 2.27 of the Vernon City Code, it is in the public interest and
28 necessity to enter into a contract with Kinsel Consulting Group, LLC
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for insurance claim services to enhance services provided to the Vernon
community.
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: The City Council of the City of Vernon hereby
approves the Engagement Letter Agreement with Kinsel Consulting Group,
LLC, a copy of which is attached hereto as Exhibit A and incorporated
by reference.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor or Mayor Pro-Tem to execute the Engagement Letter
Agreement with Kinsel Consulting Group, LLC for, and on behalf of, the
City of Vernon and the City Clerk is hereby authorized to attest
thereto.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Clerk, or her designee, to give one executed
Agreement to:
Kinsel Consulting Group, LLC
Attn. Michael Vadney, Partner
503 N. Central Avenue
Glendale, CA 91203
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1 SECTION 5: The City Clerk of the City of Vernon shall
2 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 15th day of October, 2007.
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7 Name: Leonis C. Malburg
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Title: Mayor
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10 ATTEST:
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UELA GIRON, tity Clerk
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1 STATE OF CALIFORNIA )
2 ) ss
COUNTY OF LOS ANGELES )
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4 I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
5 certify that the foregoing Resolution, being Resolution No. 9443, was
6 duly adopted by the City Council of the City of Vernon at a regular
7 meeting of the City Council duly held on Monday, October 15, 2007, and
8 thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
9 Vernon.
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MANUELA GIRON, City Clerk
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13 (SEAL)
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EXHIBIT A
October 10, 2007
Mr. Willard G. Yamaguchi
Chief Deputy City Attorney
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
RE: CITY OF VERNON
ENGAGEMENT LETTER
Dear Mr. Yamaguchi,
rKitts&
�yommlt44
h6("Frollp, t,: c.
5D3 Not$ Cential,Avenue
Glendale, CA 91203
(800) 240.3300
(818) 24a3300
Fax (818) 240.3311
sWK k inselconsuli ing.com
This letter is intended to confirm and formalize our mutual understanding and expectations
regarding the work we will perform in conjunction with the insurance claim your company has
filed with your insurance carrier. We appreciate the opportunity to work for you on this claim.
The purpose of this engagement is to assist in evaluating the extent of loss and prepare reports
quantifying the damages. We anticipate performing the following general tasks:
1. Gather background information on your claim.
2. Identify and receive source documents and other accounting information necessary to
evaluate the extent of loss.
3. Prepare analyses quantifying the amount of loss and present reports summarizing our
findings.
4. Work with insurance adjusters and their consultants to assist in their evaluation of this
claim. This will involve meetings and potential follow-up work including requests
for additional documentation.
5. Perform any other work deemed necessary to complete our review.
The expected outcome will be reports you can submit to the insurance carrier in support of your
claim. We anticipate providing a draft copy of our reports following our completion of
fieldwork. After you have reviewed the draft reports, we will schedule a meeting to discuss them.
Any recommendations or suggested revisions will be considered and implemented.
........- - - ...r _ W,..... ..... m z.,e.,..u.-......._..._..,.._.,..�._ .
Las Angeles, fA + Indianapolis, IN 4
Mr. Willard Yamaguchi
Re: City of Vernon
October 10, 2007
Page 2
We expect to receive full cooperation from your staff in providing all pertinent data and
information as requested by our staff so Kinsel Consulting Group can properly analyze the
effects of the loss and make recommendations for the insurance claims.
Kinsel Consulting Group will use its best efforts and professional judgment in conducting the
engagement; however, we are unable to guarantee any specific results. Our ethical
responsibilities in general require that we keep all information that you disclose to us as
confidential and not disclose it to persons outside our firm without your permission.
The fees for these services will be based on our hourly charges and out-of-pocket costs for any
travel or associated field work. Our hourly rates range from $100 to $250 per hour. We
understand your insurance policy allows for claim preparation expenses. We do not anticipate
our fees and expenses to exceed this coverage.
If this letter defines your understanding of the engagement, please sign and date it and return one
copy to us. If you have any questions as this work progresses feel free to contact me (the
principal responsible for this engagement). We thank you in advance for your cooperation, and
look forward to working with you and your staff.
Sincerely,
r1
Michael Vadne „ artner
(714) 747-0532 Cell
(818) 240-3300 x15 Main Line
mvadnevna.kinselconsultiniz.com
MEV/kns/City of Vernon
Accepted by
Signature:
Name:
Date:
RECEIVED A COPY OF
THE AGREEMENT
FROM RISK
MANAGEMENT
Kin-:1
Con>scultutg
Group, ux-
503 Na6 Cod how
Glendale, fA 91203
(800) 240M300
(818) 240300
Fox (81 S) 2403311
wwar k6eekoVAN jam
October 10, 2007
Mr. Willard G. Yamaguchi
Chief Deputy City Attorney
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
RE: CITY OF VERNON
ENGAGEMENT LETTER
Dear Mr. Yamaguchi,
This letter is intended to confirm and formalize our mutual understanding and expectations
regarding the work we will perform in conjunction with the insurance claim your company has
filed with your insurance carrier. We appreciate the opportunity to work for you on this claim.
The purpose of this engagement is to assist in evaluating the extent of loss and prepare reports
quantifying the damages. We anticipate performing the following general tasks;
1. Gather background information on your claim.
2. Identify and receive source documents and other accounting information necessary to
evaluate the extent of loss.
3. Prepare analyses quantifying the amount of loss and present reports summarizing our
findings.
4. Work with insurance adjusters and their consultants to assist in their evaluation of this
claim. This will involve meetings and potential follow-up work including requests
for additional. documentation.
5. Perform any other work deemed necessary to complete our review.
The expected outcome will be reports you can submit to the insurance carrier in support of your
claim. We anticipate providing a draft copy of our reports following our completion of
fieldwork. After you have reviewed the draft reports, we will schedule a meeting to discuss them.
Any recommendations or suggested revisions will be considered and implemented
0 Los kwe; fA ♦ IrAonapdk IN
Mr. Willard Yamagticiri
RO City of Vernon
October 10, 2007
of 2.
We expect to receive full cooperation from your staff in'providing all pertinent data and
information as requested by our staff so Kinsel Consulting, Croup can properly analyze the
effects of the loss and make recommendations for ttio insurance claims
Kinsel Consulting Group will use its best efforts and professional judgment in conducting the
engagement; however, we are unable to guarantee any specific results. Our ethical
responsibilities in general require that we keep all information that you disclose to us as
confidential and not disclose it to persons outside our firm without your permission.
The fees for these services will be based on our hourly charges and out-o&pocket costs for any
travel or associated field work. Our Hourly rates range from $1,00 to $250 per hour. We
understand your insurance policy allows :for claim preparation expenses. We do not anticipate
our fees and expenses to exceed this coverage.
If this letter defines your understanding of the engagement, please sign and date it and return one
copy to us. If you have any questions as this work progresses feel free to contact me (the
principal responsible for this engagement). We thank you in advance for your cooperation, and
lock forward to working with you and your staff.
Sincerely,
z cell
x15 Main Lind
M RV/kns/Cily of Vernoa
Accepted by
Signature: tr
11-
Name: Willard ..G.. Yamaguchi
act oier 22, Z001
Date: