Resolution No. 2010-080RESOLUTION NO. 2010-.80
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE PURCHASE OF A
PUBLIC EMPLOYEE CRIME POLICY FROM NATIONAL UNION
FIRE INSURANCE COMPANY THROUGH ARTHUR J. GALLAGHER
& CO.
WHEREAS, the City's current Public Employee Crime Policy
with National Union Fire Insurance Company ("National") covering
employee dishonesty, forgery and fraud expires on June 22, 2010 (the
"Crime Policy"); and --
WHEREAS, the City desires to renew the Crime Policy with
National to protect the City; and
WHEREAS, the City used 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 coverages for the City; and
WHEREAS, by memo dated June 10, 2010, the Risk Manager has
recommended that the Crime Policy be purchased from National through
Arthur J. Gallagher based on the quote from National in the amount of
$3,804.00, exclusive of surplus lines taxes and fees; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (b)(1) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to approve the purchase of the Crime Policy through Arthur
J. Gallagher.
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 purchase of the Crime Policy from National through Arthur
J. Gallagher.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to execute any and
all documents necessary for the purpose of securing the Crime Policy
on behalf of the City,of Vernon and to take whatever actions are
deemed necessary or desirable for the purpose of implementing and
carrying out the purposes of this Resolution and the transactions
herein approved or authorized.
SECTION 4: The City Council of the City of Vernon hereby
approves the payment of the annual premium for the Crime Policy in an
estimated amount of $3,804.00, plus surplus line taxes and fees, if
applicable.
SECTION 5: 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, Inca
Attn. Nasreen Kopecky, Account Manager
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
2
SECTION,6: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 21st day of June, 2010.
Name: Hilario Gonzales
Title: Mayor
3
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution
No. 2010-80, was duly passed, approved and adopted by the City Council
of the City of Vernon at,a regular meeting of the City Council duly
held on Monday, June 21, 2010, and thereafter was duly signed by the
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this YY day of June, 2010, at Vernon, California.
W lla d G. a g i, City Clerk
(SEAL)
4
June 22, 2010
Arthur J. Gallagher & Co.
Insurance Brokers of California, Inc.
ATTN: Nasreen Kopecky, Account Manager
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
Re: Public Employee Crime Policy from National Union Fire Insurance Company
Dear Ms. Kopecky:
Transmitted herewith is a copy of Resolution No. 2010-80 that was approved by City Council on
June 21, 2010.
If you have any questions regarding this matter, please call Mr. Willard Yamaguchi at (323) 583-
8811 ext. 175.
Very ly yours,
r
WILLARD G. Y ou�
City Clerk
WGY:dj
Enclosure
c: Ana Barcia
Resolution No. 2010-80
Exclusively Industrial
DATE: June 10, 2010
RECEIVED
JUN 1 0 2010
STAFF REPORT cin cLERK s oFFicE
Risk Management
TO: Honorable Mayor and City Council
FROM: Willard G. Yamaguchi, Risk Manager
RE: Crime Policy Renewal for 2010-11
The City has a crime policy for coverage of employee dishonesty, forgery and fraud. The
coverage is for $1 million with a $25,000 deductible. For 2009-10, the underwriter is National
Union Fire Insurance. The cost of the premium is $4,784. The policy will expire on June 22,
2010.
For 2010-11, Risk Management obtained quotes from National Union Fire Insurance
("National"), Great American Insurance Company ("Great American"), Hartford Fire Insurance
("Hartford"), and Zurich American Insurance ("Zurich").
National decreased their bid to $3,804. Hartford's quote came in at $4,056. Great American
Insurance provided a non -responsive quote because their deductible minimum is $50,000
Zurich American provided a non-competitive quote at $5,434. Please note that all bids are
exclusive of surplus lines taxes and fees.
Fiscal Impact
This expenditure was budgeted for the 2009-10 fiscal year.
Recommendation
Due to the impending expiration of the current policy, Risk Management recommends that the
City accept the bid from National Union Fire Insurance in the amount of $3,804, exclusive of
surplus lines taxes and fees. .
WGY/ab
cc: Donal O'Callaghan
IVIE
JUN 1 0 2010
Inter Office Memorandum
Risk Management
DA: June 10, 2010 /
TO: Donal O'Callaghan, City Administrator
FR: Willard G. Yamaguchi, Risk Managed
RE: Crime Policy Renewal for 2010-11
The City has a crime policy for coverage of employee dishonesty, forgery and fraud. The
coverage is for $1 million with a $25,000 deductible. For 2009-10, the underwriter is National
Union Fire Insurance. The cost of the premium is $4,784. The policy will expire on June 22,
2010.
For 2010-11, Risk Management obtained quotes from National Union Fire Insurance
("National"), Great American Insurance Company ("Great American"), Hartford Fire Insurance
("Hartford"), and Zurich American Insurance ("Zurich").
National decreased their bid to $3,804. Hartford's quote came in at $4,056. Great American
Insurance provided a non -responsive quote because their deductible minimum is $50,000.
Zurich American provided a non-competitive quote at $5,434. Please note that all bids are
exclusive of surplus lines taxes and fees.
Fiscal Impact
This expenditure was budgeted for the 2009-10 fiscal year.
Recommendation
Due to the impending expiration of the current policy, Risk Management recommends that the
City accept the bid from National Union Fire Insurance in the amount of $3,804, exclusive of
surplus lines taxes and fees.
FIP as -' , {
-Cj .,
JUN 1 0 2010
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE PURCHASE OF A
PUBLIC EMPLOYEE CRIME POLICY FROM NATIONAL UNION
FIRE INSURANCE COMPANY THROUGH ARTHUR J. GALLAGHER
& CO.
WHEREAS, the City's current Public Employee Crime Policy
with National Union Fire Insurance Company ("National") covering
employee dishonesty, forgery and fraud expires on June 22, 2010 (the
"Crime Policy"); and
WHEREAS, the City desires to renew the Crime Policy with
National to protect the City; and
WHEREAS, the City used 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 coverages for the City; and
WHEREAS, by memo, dated June 10, 2010, the Risk Manager has
recommended that the Crime Policy be purchased from National through
Arthur J. Gallagher based on the quote from National in the amount of
$3,804.00, exclusive of surplus lines taxes and fees; and
WHEREAS, the City Council of the City of .Vernon has
determined that, pursuant to the provisions of subsection (b)(1). of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to approve the purchase of the Crime Policy through Arthur
J. Gallagher.
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 purchase of the Crime Policy from National through Arthur
J. Gallagher.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to execute any and
all documents necessary for the purpose of securing the Crime Policy
on behalf of the City of Vernon and to take whatever actions are
deemed necessary or desirable for the purpose of implementing and
carrying out the purposes of this Resolution and the transactions
herein approved or authorized.
SECTION 4: The City Council of the City of Vernon hereby
approves the payment of the annual premium for the Crime Policy in an
estimated amount of $3,804.00, plus surplus line taxes and fees, if
applicable.
SECTION 5: 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. Nasreen Kopecky, Account Manager
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
2
SECTION 6: The City Clerk of the City of Vernon shall
certify to the passage, approval and adoption of this resolution, and
the City Clerk of the City of Vernon shall cause this resolution and
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 21st day of June, 2010.
ATTEST:
Willard G. Yamaguchi, City Clerk
Name:
Title: Mayor / Mayor Pro-Tem
_3_
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do
hereby certify that.the foregoing Resolution, being Resolution
No. was duly passed, approved and adopted by the City Council
of the City of Vernon at a regular meeting of the City Council duly
held on Monday, June 21, 2010, and thereafter was duly signed by the
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this day of June, 2010, at Vernon, California.
(SEAL)
Willard G. Yamaguchi, City Clerk
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