Resolution No. 098812
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RESOLUTION NO. 9881
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE PROCUREMENT OF
POLLUTION LEGAL LIABILITY INSURANCE FROM GREAT
AMERICAN INSURANCE GROUP THROUGH ARTHUR J.
GALLAGHER & CO.
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 the City's underground
storage tanks; and
WHEREAS, the City's current Pollution Legal Liability
Insurance Policy with American International Specialty Lines Insurance
Company, a part of the American International Group ("'AIG"'), for
insurance in excess of insurance coverage required in the Franchise
Agreement expires on March 23, 2009; and
WHEREAS, the City desires to procure the necessary insurance
with another vendor to protect the City; and
WHEREAS, the City employed the services of Arthur J.
Gallagher & Co. Insurance Brokers of California, Inc., Risk Management
("Arthur J. Gallagher") to act as the City's broker to structure and
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obtain the appropriate insurance coverage; and
WHEREAS, Arthur J. Galla gher has recommended that the City
lenter into an arrangement with Great American Insurance Group ("Great
American") for the necessary environmental insurance; and
WHEREAS, the Risk Manager has recommended the procurement of
pollution legal liability insurance coverage with Great American in
light o.f the current financial climate, the fact that!Great American
is offering greater flexibility in allowing the City to choose which
landfills are covered without notification and the cost savings of
approximately $27,907.00; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (a) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to procure the necessary environmental insurance with Great
American through Arthur J. Gallagher.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON A'S FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the recitals contained her-einabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves and authorizes the Risk Manager, or his designee, to execute
any and all documents necessary for the purpose of securing the
insurance on behalf,lof the City of Vernon and to implement and carry
out the purposes specified in the insurance proposal, a copy of which
is attached hereto as Exhibit A and incorporated herein by this
reference.
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SECTION 3: The City Council of the City of Vernon hereby
approves and authorizes the payment of the annual premium payment of
approximately $18,508.00 plus any applicable excess and surplus line
taxes in accordance with the terms of the insurance proposal attached
hereto as Exhibit A.
SECTION 4: The City Council of the City of Vernon hereby
directs the City Clerk, or her designee, to send a copy of this
Resolution to:
Arthur J. Gallagher & Co.
Insurance Brokers of California, Inc.
Attn. Chris Falbo, Area Vice President
505 N. Brand Blvd., Suite 600
Glendale, CA 91203-3944
SECTION 5: The 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 9th day of March, 2009.
ATTEST:
'� g A� N
MgNO-ELA GIRON',,—C/ty-Clerk
"C . M
Name: Leonis alburg
Title: Mayor / M-a-y��- �-
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STATE OF CALIFORNIA
) ss
COUNTY OF LOS ANGELES
I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 9881, was
duly adopted by the City Council of the'City of Vernon at a regular
meeting of the City Council duly held on Monday, March 9, 2009, and
thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
Wernon.
(SEAL)
MANUIE-LA GIA-eN 1�
City Clerk
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EXHIBIT A
GRENIAAo,umAN
FEBRUARY11,2009 INSURANCE GROUP
ENVIRONMENTAL DIVISION
ATTN: CHRIS FALBO 401 PLYMOUTH ROAD, SUITE 100
PRODUCER: ARTHUR J GALLAGHER RISK MANAGEMENT PLYMOUTH MEETING, PA 19462
E-MAIL: CHRIS_FALBO@AJG.COM
CUSTOMER #: 004317344
FROM: PATRICK MAHONEY, CPCU
GREAT AMERICAN INSURANCE GROUP
PREMISES ENVIRONMENTAL LIABILITY POLICY PROPOSAL
FOR: CITY OF VERNON
COMPANY: GREAT AMERICAN E&S INSURANCE COMPANY (GAES)
FORM: PEL3001 04/08
DOMICILE STATE: CALIFORNIA
COVERAGES:
(')nfinn 1 - Pnfinv Tprm — (1) Ypqr
Coverage
Each
Coverage Aggregate
Self -Insured
POLLUTION
Limit
Retention
CONDITION
Limit
A. Pollution Legal Liability
$1,000,000
$1,000,000
$25,000
B. On -Site and Off -Site
$1,000,000
$1,000,000
$25,000
Clean -Up Costs
C.Contracting Services
$0
$0
$0
Pollution Liability
D. Non -Owned Disposal
$5,000,000
$5,000,000
$25,000
S ite
E . In -Bound and Out-
$5,000,000
$5,000,000
$25,000
Bound Contingent
Transportation
Policy Aggregate Limit of Liability: $5,000,000
Premium: $18,508 (25 % Minimum Earned)
Premium for Certified Acts of Terrorism: $185 additional premium
State Tax $ N/A Broker Responsibility
Premium above does NOT include Excess and Surplus Lines Tax
Excess and surplus lines taxes, fees and filings are additional and the sole responsibility
of the broker. Please furnish us with a copy of your surplus lines license prior to binding.
COMMISSION: 15%
City Of Vernon Quote 2-11-09
COVERED 4305 Santa Fe Avenue, Vernon, CA 90058
LOCATION(s):
CONTRACTING All Contractinq Services
SERVICES:
RETROACTIVE DATE: N/A
REVERSE RETROACTIVE DATE: N/A
ENDORSEMENTS and EXCLUSIONS:
1. PEL3421 Terrorism Exclusion(only if coverage is declined)
2. PEL3418 Terrorism Coverage (only if coverage is purchased)
3. PELMANUS Underground Storage Tank Self -insured Retention
4. PEL3130 Underground Storage Tank Schedule
5. Any applicable state endorsements and notices.
Exclusions in the quotation include, but are not limited to, the terms and conditions
outlined above. Please refer to the policy contract for specifics. Any other coverage
extensions, deletions, or changes requested in the submission are hereby rejected.
QUOTE CONDITIONS:
The following information must be received by the underwriter prior to binding:
1. 5 years currently valued Pollution loss runs.
2. Signed/dated Terrorism Disclosure Notice.
3. Completed Surplus Lines Tax letter (broker responsibility)
GENERAL INFORMATION:
Who are the Great Am erican Insurance Corn panies:
- Started in 1872 and has been in continuous operation for over 135 years
- Maintained a Best's Rating of "A" or better for the last 75+ consecutive years
- Member of American Financial Group Inc, (NYSE: AFG) with Total Assets of
$25.813, GWP of $3.98B and Policyholders Surplus of $1.8 B
- Currently 19 separate Specialty Operating Profit Centers and 4 subsidiary
Companies
- Involved in various aspects of the Environmental Marketplace since 1981 through
various subsidiaries and programs
- A highly experienced Underwriting and Management team focused solely on
Environmental and ancillary Product Lines in 2007
- An experienced Environmental Claims team within the Environmental unit and at
the Home Office that consists of over 12 professionals with a combined experience
level in excess of 185 years of specialized claims handling with specific experience
in handling EIL, Asbestos, Superfund and other environmental claims.
City Of Vernon Quote 2-11-09
TERMS:
Quote Expiration Date — February 15, 2009
Payment Terms — In order to bind coverage, we must receive your written instructions
confirming coverage(s) desired prior to releasing policy numbers. The full premium
payment is due thirty (30) days from the effective date of the coverage.
City Of Vernon Quote 2-11-09
-XI — .
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (373) 583-8811
March 18, 2000
Arthur J. Gallagher & Co.
Insurance Brokers of California, Inc.
ATTN: Chris Falbo, Area Vice President
505 N. Brand Blvd., Suite 600
Glendale, CA 91203-3944
Re: Procurement of Pollution Legal Liability Insurance from Great American Insurance Group
Transmitted herewith is a copy of Resolution No. 9881 that was approved by City Council on
March 9, 2009.
If you have any questions regarding this matter, please call Mr. Willard Yamaguchi at (323) 583-
8811 ext. 175.
Very truly yours,
—Nell AGiro
City Clerk
NG:dj
c: Willard Yamaguchi
Ana Barcia
Resolution No. 9881
Enclosure
EXclusively Industriaf