Resolution No. 2010-129RESOLUTION NO. 2010-129
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE PURCHASE OF A
ONE-YEAR ENVIRONMENTAL SITE LIABILITY INSURANCE
POLICY FOR PRE-EXISTING CONDITIONS AND NEWLY
DISCOVERED CONDITIONS OF SPECIFICALLY LISTED
PROPERTIES FROM CHUBB CUSTOM INSURANCE COMPANY
THROUGH ARTHUR J. GALLAGHER & CO.
WHEREAS, the City of Vernon's (the "City") current
Environmental Site Liability insurance ("ESL Policy") for pre-existing
conditions and newly discovered conditions of specifically listed
properties expires on September.29, 2010; and
WHEREAS, the City desires to renew the ESL Policy in order
to protect the City in the event that a claim alleging damage due to a
pollution condition arises at a listed site; and
WHEREAS, the City used the services of Arthur J.-Gallagher &
Co. Insurance Broker of California, Inc. ("Arthur J. Gallagher") to
act as the City's broker to structure and obtain the appropriate
insurance coverage; and
WHEREAS, by memo dated September 8, 2010, the Risk Manager
advised that Navigators Insurance Company and Great American Insurance
Company did not submit quotes, but indicated that premiums would range
from $18,500.00 to $22,000.00; and
WHEREAS, incumbent, Chubb Custom Insurance Company
("Chubb"), quoted an insurance premium in the amount of $16,394.00,
exclusive of surplus lines taxes and fees; and
WHEREAS, the Risk Manager recommends that the City renew the
policy with Chubb because it is the lowest quote received, represents
a 1.8% reduction in premium cost,, and Chubb is a highly rated
insurance company according to standard insurance solvency rating
indices; 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 ESL Policy for pre-existing
conditions and for newly discovered conditions of specifically listed
properties with Chubb for the period of September 29, 2010 through
September 29, 2011, 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 ESL Policy for pre-existing conditions
and for newly discovered conditions -of specifi.cally listed properties
with Chubb through Arthur J. Gallagher for an additional year.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Interim City Administrator, or his designee, to execute
any and all documents necessary for the purpose of securing the ESL
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 purpose of this Resolution and the transactions
herein approved or authorized.
SECTION 4: The City Council of the City of Vernon hereby
approves and authorizes the purchase of the ESL Policy for coverages
against pollution incidents at various specified locations from Chubb
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and the payment of the annual premium payment of $16,394.00, plus
applicable surplus lines taxes and fees.
SECTION 5: The City Council of the City of Vernon herby
directs the City Clerk, or his 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
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 20th day of September, 2010.
Name: Hilario Gonzales
ATT�AT :
Willard -G. 1faY�g4hi, /CJity Clerk
Title: Mayor
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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. 2010-129, 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 September 20, 2010, and thereafter was duly signed by the Mayor
or Mayor Pro-Tem of the City of Vernon.
Executed this �'( day of September 2010, at Vernon, California.
4wi11ar 41VuchZDa', City Clerk
(SEAL)
OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
September 21, 2010
Arthur J. Gallagher & Co:
Insurance Brokers of California, Inc.
ATTN: Nasreen Kopecky, Account Manager
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
Re: One -Year Environmental Site Liability Insurance Policy for Pre -Existing Conditions and
Newly Discovered Conditions of Specifically Listed Properties from, Chubb Custom
Insurance Company
Dear Ms. Kopecky:
Transmitted herewith is a copy of Resolution No. 2010-129 that was approved by City Council
on September 20, 2010.
If you have any questions regarding this matter, please call Mr. Willard Yamaguchi at (323) 583-
8811 ext. 175.
Very t ly yours,
WILLARD G. YAMA I
City Clerk
WGY:dj
Enclosure
c: Ana Barcia
Resolution No. 2010-129
Exclusively Industrial
RECEIVED
S F P 1 4 2010
STAFF REPORT CITY CLERK'S OFFICE
Risk Management
DATE: September 14, 2010
TO: Honorable Mayor and City Council
FROM: Willard G. Yamaguchi, Risk Manager
RE: Policy Renewal for 2010-11
The City has an Environmental Site Liability policy for specified industrial properties in the
event that a pollution incident arises at a site. Chubb Custom Insurance Company is the
underwriter. For 2009-10, the cost of the premium for pollution insurance is $16,688.38. The
current policy will expire on September 29, 2010.
For 2010-11, Risk Management obtained a quote from Chubb Custom Insurance Company
("Chubb") at $16,394. This represents a 1.8% reduction in premium cost. To date, other carriers
such as Navigators Insurance Company and Great American Insurance Company have indicated
premiums ranging from $18,500 to $22,000, pending review of environmental reports. Please
note that all bids are exclusive of surplus lines taxes and fees.
Fiscal Impact
Sufficient funds have been budgeted for this expense.
Recommendation
Risk Management recommends that the City accept the quote from Chubb in the amount of
$16,394 for Environmental Site Liability policy for pollution conditions, exclusive of surplus
lines taxes and fees, and that a Resolution for said insurance coverage be placed on the
September 20, 2010, agenda.
WGY/ab
cc: Mark Whitworth