Resolution No. 2011-029RESOLUTION NO. 2011-29
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's current Pollution Legal Liability
Insurance Policy with Great American Insurance Group ("Great
American") for insurance in excess of insurance coverage required in
the Franchise Agreement expires on March 23, 2011; and
WHEREAS, the City desires to procure the necessary insurance
to protect the City; and
WHEREAS, the City employed the services of Arthur J.
Gallagher & Co. Insurance Brokers of California, Inc., Risk Management
("Gallagher") to act as the City's broker to structure and obtain the
appropriate insurance coverage; and
WHEREAS, Gallagher has negotiated a 6% decrease for the
renewal quote for pollution legal liability insurance coverage with
Great American, and
WHEREAS, the Risk Manager has recommended the procurement of
pollution legal liability insurance coverage with Great American; 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 procure the necessary pollution legal liability insurance
with Great American through 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 and authorizes the City Administrator, or his designee, to
execute any and all documents necessary for the purpose of securing a
pollution legal liability insurance policy on behalf of the City of
Vernon from Great American pursuant to the insurance proposal
("Insurance Proposal"), a copy of which is attached hereto as
Exhibit A.
SECTION 3: The City Council of the City of Vernon hereby
approves and authorizes the payment of the annual premium of
approximately $17,566.00.plus any applicable excess and surplus line
taxes to Great American for the pollution legal liability insurance
policy in accordance with the terms of the Insurance Proposal.
SECTION 4: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to take whatever
action is deemed necessary or desirable for the purpose of
implementing and carrying out the purpose of this Resolution and the
transactions herein approved and authorized.
2
SECTION 5: The City Council of the City of Vernon hereby
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 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.
AT9)EST
APPROVED AND ADOPTED this 1st day of March, 2011.
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. 2011-29, 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 Tuesday, March 1, 2011, and thereafter was duly signed by the
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this % day of March, 2011, at Vernon, California.
(SEAL)
{
0
EXHIBIT A
February 21, 2011
Mr. Willard G. Yamaguchi
City of Vernon
4305 Santa Fe Avenue
Vernon, CA, 90058
Re: Renewal Policy: Pollution Legal Liability Insurance Renewal
Effective: March 23, 2010 to March 23, 2011
Dear Willard:
Your Pollution Legal Liability policy will be renewing shortly. Attached is our quotation for coverage. We would
like to outline the following notable points for your consideration:
• The insurance carrier is Great American E & S Insurance Company
• The renewal premium is $17,566 (not including Surplus Lines taxes and fees)
• In order to bind coverage we need the following:
➢ Signed forms: Authorization to Bind, D-1 Form,
• The A.M. Best is A XIV. Our A.M. Best's Rating Summary is attached for your review. "If the above coverage is
placed with a Non -Admitted carrier, the carrier is doing business in the state as a surplus lines or non -admitted
carrier. As such, this carrier is not subject to the same regulations which apply to an admitted carrier nor do they
participate in any insurance guarantee fund applicable in that state."
• Any entity not named in this proposal may not be an insured entity. This may not include partnerships and joint
ventures.
• The policy will not be auditable. The premium is based upon number of tanks.
• Policy is subject to 25% Minimum Earned Premium
• Defense costs are limited and included within the policy limits.
• See Policy form Section `Exclusions" which are coverages NOT included in your program
• Policy provides coverage for non -owned property Landfill/Transportations ONLY
We are not aware of any changes in your exposures to loss, nor are we aware of any changes in your business
operations that would necessitate additional coverage options. Please notify us immediately if you are planning
any new business operations.
IMPORTANT: The quotation (s) attached constitute certain of the terms and conditions of the insurance
proposed by the insurer(s), based on the information provided by your company. It does not include all the
terms, coverages, exclusions, limitations, conditions of the actual policy contract language. The insurance
policy(ies) themselves must be read for those details. Policy forms for your reference will be made available upon
request.
We appreciate your business and look forward to working with you in the coning year. Please contact me if you
have any questions.
Sincerely
Nasreen Kopecky
CARRIER RATINGS AND ADMITTED STATUS
Admitted/Non-
Proposed Carriers A.M. Best's Rating Admitt
ed
Great American E&S
A XIV
Non -Admitted
Insurance Company
For the latest Best's Credit Ratings and Best Credit Reports (which include Best Ratings), visit the A.M. Best
website at http://www.ambest.com. See Guide to Best's Credit Ratings for explanation of use and charges.
Copies of the Best's Insurance Reports for carriers listed above are also available upon request of your
Gallagher representative.
Best's Credit Ratings reproduced herein appear under license from A.M. Best and do not constitute, either
expressly or impliedly, an endorsement of (Licensee's publication or service) or its recommendations,
formulas, criteria or comparisons to any other ratings, rating scales or rating organizations which are
published or referenced herein. A.M. Best is not responsible for transcription errors made in presenting
Best's Credit Ratings. Best's Credit Ratings are proprietary and may not be reproduced or distributed
without the express written permission of A.M. Best Company.
Gallagher companies use A.M. Best Company's rating services to evaluate the financial condition of insurers
whose policies we propose to deliver. Gallagher companies make no representations and warranties
concerning the solvency of any carrier, nor does it make any representation or warranty concerning the rating
of the carrier which may change.
CITY OF VERNON
A Bests.flnanclal Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policyand
:contract obligatloft The rating Is based on a comprehensive quanlitailve and qualitative evalu. n of`a:company's balance sheet strength, oper-
ating performance and business profile.
Fanatic
l Strer► t�rA$ in q fns�irer
Hating
Descriptor
Definition
A++, A+
Superior
Assigned to companies that have, in our opinion, a superior ability to meet their ongoing insurance
obligations,
A, A-
Excellent
Assigned to companies that have, in our opinion, an excellent ability to meet their ongoing insurance
obligations.
B++, B+
Good
Assigned to companies that have, in our opinion, a good ability to meet their ongoing insurance obligations.
B, 8-
Fair
Assigned to companies that have, in our opinion, a fair ability to meet their ongoing insurance obliga-
tions. Financial strength is vulnerable to adverse changes In underwriting and economic conditions.
C++, C+
Marginal
Assigned to companies that have, Inour opinion, a marginal abilityto meet thelr ongoing Insurance obliga-
tions. Financial strength is vulnerable to adverse changes In underwriting and economic conditions.
a
C, C-
Weak
Assigned to companies that have, In our opinion, a weak ability to meet their ongoing Insurance obliga-
tions. Financial strength is very vulnerable to adverse changes in underwriting and economic conditions.
E
D
Poor
Assigned to companies that have, In our opinion, a poor ability to meet their ongoing insurance obliga-
tions. Financial strength Is extremely vulnerable to adverse changes in underwriting and economic con-
ditions.
E
Under
Assigned to companies (and possibly their subsidlaries/affiliates) placed under a significant form of
Regulatory
regulatory supervision, control or restraint - Including cease and desist orders, conservatorship or reha-
Supervision
bilitation. but not liquidation - that prevents conduct normal, ongoing Insurance operations.
F
In Liquidation
Assigned to companies placed in liquidation by a court of law or by a forced liquidation.
S
Suspended
Assigned to rated companies when sudden and significant events affect their balance sheet strength or
operating performance and rating Implications cannot be evaluated due to a lack of timely or adequate
Information.
Rating Outlo§ks
x .
Assigned to an Interactive Financial Strength Rating to Indicate Its potential direction over an Intermediate term, generally defined as 12 to 36 months.^
Positive
Indicates possible rating upgrade due to favorable financial/market trends relative to the current rating level,
Negative
Indicates possible rating downgrade due to unfavorable financial/market trends relative to the current rating level.
Stable
Indicates low likelihood of a rating change due to stable financial/market trends.
:Rating �'Modtfters `�
Modifier
Descriptor
Definition
u
under Review
Indicates the rating may change in the near term, typically within six months. Generally is event driven, with pos-
itive, negative or developing Implications.
pd
Public Data
Indicates rating assigned to insurer that chose not to participate in AN. Best's Interactive rating process.
s
Syndicate
Indicates rating assigned to a Lloyd's syndicate,
Indicates: rating is based on a type of affiliation with other insurers.. g -
Group p
Pooled
r
Reinsured
Not Ratt:d Cif e, IP
..,..
Assigned to companies reported on. by A.M. Best, but not assigned a Bess Rating.
NR-1- Insufficient Data.
I NR-2: Insufficient Size and/or;Operaft Experience.
NR-3: Rating Procedure Inappiicable,
NR-4: Company Request:
I NR-St Not. Formally Followed.
Rating Dtsalosure
A Best's Financial Strength f3ating_opinion addresses the. relative ability of an Insurer to meet Its ongoing insurance obligations. The ratings are:not
assigned to specific Insurance policies or contracis and do not address anyothee risk, including, but not limited to, en insurer's claims payrnent'pol
cles or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability con-
traotuallyborne byihe polley. or contract holder. A Best's Financial Strength Rating is not a repommendation to purchase, hold or terminate any insur-
ante policy, contract or any other financial obligation issued by an Insurer, nordoes it address the suitability of any particular policy or contract for
a specific puroose or purchaser. In arriving at a rating decislon, A.M. Bastt-relies on third -party audited financial data andlor other information pro-
vided to It. While this Information is believed :to be reliable, A.M. Best does not independently verify the accuracy or reliability of the infomtation. For
additional details, see A.M. eest's Terms of'Use at www.ambest.rrom.
Best's.Financial Strength Ratings are distributed via press raleasaand/or the A.M. Best Web site at www.ambest.com and are..published in the'Aa hg
Actions section of BesfMeA Beat's FinanolaiStrength Ratings are.proprletary cnd may be reproduced without permission.
Copyright 2016.byA.M. Best Company,. Inc. Version 041410
BEST
d
CITY OF VERNON
IMPORTANT DISCLOSURES
The proposal is an outline of certain of the terms and conditions of the insurance proposed by the
insurers, based on the information provided by your company. It does not include all the terms,
coverages, exclusions, limitations, conditions of the actual policy contract language. The insurance
policies themselves must be read for those details. Policy forms for your reference will be made
available upon request.
We will not be operating in a fiduciary capacity, but only as your broker, obtaining a variety of coverage
terms and conditions to protect the risks of your enterprise. We will seek to bind those coverages based
upon your authorization; however, we can make no warranties in respect to policy limits or coverage
considerations of the carrier. Actual coverage is determined by policy language, so read all policies
carefully. Contact us with questions on these or any other issues of concern.
Terrorism Act Disclaimer: The current TRIA/TRIPRA program may not cover all terrorism losses.
While the most recent legislation eliminated the distinction between foreign and domestic acts of
terrorism; a number of lines of coverage excluded under the TRIEA legislation passed in 2005 remain
excluded, including commercial automobile, burglary and theft insurance, surety insurance, farm owners
multiple perils and professional liability (although directors and officers liability is specifically included).
If such excluded coverages are required, we recommend that you consider purchasing a separate
terrorism policy. Please note that a separate terrorism policy for these excluded coverages may be
necessary to satisfy loan covenants or other contractual obligations.
The information contained in this proposal is based on the historical loss experience and exposures
provided to Arthur J. Gallagher & Co. Insurance Brokers of California, Inc. This proposal is not an
actuarial study. Should you wish to have this proposal reviewed by an independent actuary, we will be
Pleased to provide you with a listing of actuaries for your use.
CITY OF VERNON
COMPENSATION DISCLOSURE
One of the core values highlighted in The Gallagher Way states, "We are an Open Society," and our open
society extends to the compensation Gallagher receives. For more information on Gallagher's compensation
arrangements, please visit http://www.ajg.com/compdisclosure. In general, Gallagher may be compensated
as follows:
Gallagher Companies are primarily compensated from the usual and customary commissions or fees
received from the brokerage and servicing of insurance policies, annuity contracts, guarantee
contracts and surety bonds (collectively "insurance coverages") handled for a client's account, which
such commissions and fees may vary from company to company and insurance coverage to insurance
coverage. As permitted by law, Gallagher companies occasionally receive both commissions and
fees. In placing, renewing, consulting on or servicing your insurance coverages, Gallagher
Companies may participate in contingent commission arrangements with insurance companies that
provide for additional contingent compensation if underwriting, profitability, volume or retention
goals are achieved. Such goals are typically based on the total amount of certain insurance coverages
placed by Gallagher with the insurance company, not on an individual policy basis. As a result,
Gallagher may be considered to
have an incentive to place your insurance coverages with a particular insurance company.
2. Gallagher Companies may also receive investment income on fiduciary funds temporarily held by
them, such as premiums or return premiums.
3. Gallagher Companies may access.other facilities, including wholesalers, reinsurance intermediaries,
captive managers, underwriting managers and others that act as intermediaries for both Gallagher and
other brokers in the insurance marketplace. Gallagher Companies may own some of.these facilities,
in whole or in part. If such a facility was utilized in the placement of a client's account, the facility
may have earned and retained customary brokerage commission or fees for its work.
4. Gallagher assists its customers in procuring premium finance quotes and unless prohibited by law
may earn compensation for this value added service.
If you have specific questions about the compensation received by Gallagher and its affiliates in relation to
your insurance placements, please contact your Gallagher representative for more details.
In the event you wish to register a formal complaint regarding compensation Gallagher receives from
insurers or third parties, please send an e-mail to Compensation_Complaints@ajg.com or send a letter to:
AVC Compliance Officer
Arthur J. Gallagher & Co.
Two Pierce Place, 20`'' Floor
Itasca, IL 60143
,fthw, FWAY ad W;u ±u Vm
E.
CITY OF VERNON
COMMERCIAL ACCOUNTS
CONTINGENT AND SUPPLEMENTAL COMMISSION DISCLOSURE
Effective October 1, 2009, Arthur J. Gallagher & Co., and its subsidiaries operating as insurance
agents/brokers under the corporate holding company known as Arthur J. Gallagher Brokerage & Risk
Management Services, LLC, resumed participating in contingent commission arrangements which are
routinely offered by insurance companies and intermediaries to agents and brokers, after voluntarily
foregoing the benefit of this type of compensation since January 1, 2005. Contingent commission
arrangements provide for additional compensation if certain underwriting, profitability, volume or retention
goals are achieved. Such goals are typically based on the total amount of certain insurance coverages placed
by Gallagher with the insurance company and/or through the intermediary, not on an individual policy basis.
As a result, Gallagher may be considered to have an incentive to place your insurance coverages with a
particular insurance company.
During the time Gallagher's retail operations did not accept contingent commissions, some insurance
markets and intermediaries, including Gallagher owned intermediaries, modified their commission schedule
with Gallagher, resulting in an increase in some commission rates. The additional commissions, commonly
referred to as "supplemental commissions", are known at the effective date of the policy, but some
intermediaries and insurance companies are paying the commission increase apart and later from when the
commission is normally paid at policy issuance.
Unlike contingent commissions, supplemental commission payments are determined without regard to any
performance factors which are contingent on future growth, retention, profitability, etc.
Contingent and supplemental commission ranges from less than 1% up to 10% of written or earned
premium on eligible lines of business (not all lines of business qualify).
NOTE: Upon request, your Gallagher representative can provide more specific market information regarding
contingent and supplemental commission related to your insurance coverage.
.&W i aw OW Winimik Whwnn
7
CITY OF VERNON
IMPORTANT NOTICE REGARDING CLAIMS SERVICE
All Claims, Other Than Workers Compensation
Please immediately report all claims, other than Workers Compensation claims, to our Western Regional
Claims Center:
Email: WR-Claims@ajg.com
Address for mailing: Arthur J. Gallagher & Co. Insurance Brokers of California, Inc.
45 River Park Place West, Suite 408
Fresno, CA 93720
Toll free numbers for assistance: Phone: 866-971-9462
Fax: 866-971-9464
Please note that nothing in this notice amends any notice provisions contained in any of your insurance
policies. In the event you need assistance with reporting a claim, please feel free to contact the service team at
the telephone number above.
N1,+l�x lbohy 0wJ Ndw6dit Oman
i
8'
CITY OF VERNON
CLIENT .AUTHORIZATION TO BIND COVERAGE
After careful consideration of your proposal dated February 21, 2011, we accept your insurance program
subject to the following exceptions/changes:
POLICY OPTIONS:
h.M,
WEN MMMI'Mw MM MM�1
Select Coverage Options To Bind:
Pollution Legal Liability (Landfills/Transportations)
Select Optional Terrorism (TRIA) Coverage to Bind
I Reject All Recommended Coverage Considerations, Except I Would Like a
Quote For:
It is understood this proposal provides only a summary of the details; the policies will contain the actual
coverages.
We confirm the values, schedules, and other data contained in the proposal are from our records and
acknowledge it is our responsibility to see that they are maintained accurately.
Client Signature
Dated
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CITY OF VERNON
NOTICE:
1. THE INSURANCE POLICY THAT YOU ARE APPLYING TO PURCHASE IS
BEING ISSUED BY AN INSURER THAT IS NOT LICENSED BY THE STATE
OF CALIFORNIA. THESE COMPANIES ARE CALLED "NONADMITTED" OR
"SURPLUS LINE" INSURERS.
2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY
REGULATION AND ENFORCEMENT THAT APPLY TO CALIFORNIA
LICENSED INSURERS.
3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE
INSURANCE GUARANTEE FUNDS CREATED BY CALIFORNIA
LAW. THEREFORE, THESE FUNDS WILL NOT PAY YOUR CLAIMS OR
PROTECT YOUR ASSETS IF THE INSURER BECOMES INSOLVENT AND IS
UNABLE TO MAKE PAYMENTS AS PROMISED.
4. CALIFORNIA MAINTAINS A LIST OF ELIGIBLE SURPLUS LINE
INSURERS APPROVED BY THE INSURANCE COMMISSIONER. ASK YOUR
AGENT OR BROKER IF THE INSURER IS ON THAT LIST, OR VIEW THAT
LIST AT THE INTERNET WEB SITE OF THE CALIFORNIA DEPARTMENT
OF INSURANCE: www.insurance.ca.gov.
5. FOR ADDITIONAL INFORMATION ABOUT THE INSURER YOU
SHOULD ASK QUESTIONS OF YOUR INSURANCE AGENT,
BROKER, OR "SURPLUS LINE" BROKER OR CONTACT THE
CALIFORNIA DEPARTMENT OF INSURANCE, AT THE
FOLLOWING TOLL -FREE TELEPHONE NUMBER: 1-800-927-4357.
6. IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE
POLICY YOU HAVE PURCHASED BE BOUND IMMEDIATELY, EITHER
BECAUSE EXISTING COVERAGE WAS GOING TO LAPSE WITHIN TWO
BUSINESS DAYS OR BECAUSE YOU WERE REQUIRED TO HAVE
COVERAGE WITHIN TWO BUSINESS DAYS, AND YOU DID NOT RECEIVE
THIS DISCLOSURE FORM, AND A REQUEST FOR YOUR SIGNATURE
UNTIL AFTER COVERAGE BECAME EFFECTIVE, YOU HAVE THE RIGHT
TO CANCEL THIS POLICY WITHIN FIVE DAYS OF RECEIVING THIS
DISCLOSURE. IF YOU CANCEL COVERAGE, THE PREMIUM WILL BE
PRORATED AND ANY BROKER'S FEE CHARGED FOR THIS INSURANCE
WILL BE RETURNED TO YOU."
Date• _
Insured:
SF 198230.2 73670 00741 D-1 (Effective January 1, 2009)
11
CITY OF VERNON
POLLUTION LEGAL LIABILITY - OPTION 1
March 23, 2011 to March 23, 2012
Great American E&S Insurance Co
Pollution Legal Liability $1,000,000/Aggregate
On -Site and Off -Site $1,000,000/Aggregate
Clean Up Costs
Contracting Services
Pollution Liability
Non -Owned Disposal
Sites
In -Bound and Out -
Bound Contingent
Transportation
$5,000,000
$25,000
$0
$5,000,000/Aggregate
$5,000,000/Aggregate
4305 Santa Fe Avenue, Vernon, CA 90058
Solid Waste or garbage disposal services conducted within the boundaries
of Vernon, CA
Claims -Made & Reported Form
None
Claim means a demand, notice or assertion of a legal right alleging liability
or responsibility on the part of the Insured, arising out of a Pollution
Condition, and shall include but not be limited to lawsuits, orders, petitions
or governmental or regulatory actions, filed against the Insured
• Pollution Legal Liability
• On -Site and Off -Site Clean Up Costs
• Contracting Services Pollution Liability
• Non -Owned Disposal Site
• In -Bound and Out -Bound Contingent Transportation Coverage
12
CITY OF VERNON
POLLUTION LEGAL LIABILITY — OPTION 1
• Asbestos
• Contractual Liability
• Criminal Fines, Penalties and Assessments
• Prior Incidents Exclusion
• Terrorism (unless purchased)
Excluded
25% Minimum Earned
• 5 years currently valued Pollution loss runs.
• Completed Surplus Lines Tax letter (broker responsibility).
• Copies of your last two (2) years of financial statements and/or
10K reports.
• Signed/dated Terrorism Disclosure Notice.
• Written confirmation of no additional notices, violations or
potential claims which would be related to environmental insurance
coverage.
$18,137 (includes all Surplus Liens Taxes and Fees)
$176
200% of the Full Policy Premium
Yes
Covered Location Underground Storage. Tank Underground Storage Tank
Capacity Contents
4305 Santa Fe Avenue, Vernon,
CA 90058 10,000 Diesel
4305 Santa Fe Avenue, Vernon,
CA 90058 8,000 Unleaded Gasoline
4305 Santa Fe Avenue, Vernon,
CA 90058 8,000 Unleaded Gasoline
13
CITY OF VERNON
POLLUTION LEGAL LIABILITY — OPTION 1
As a condition precedent to the coverage hereunder, in the event a CLAIM
is made against the INSURED for LOSS or CLEAN-UP COSTS, or a
POLLUTION CONDITION is first discovered that results in a LOSS or
CLEAN-UP COSTS, written or oral notice containing particulars sufficient
to identify the INSURED and also reasonably obtainable information with
respect to the time, place and circumstances thereof, and the names and
addresses of the injured and of available witnesses, shall be given by or for
the INSURED to the Company or any of its authorized agents as soon as
practicable. In the event of oral notice, the INSURED agrees to furnish a
written report as soon as practicable. The INSURED shall also forward to
the Company every demand, notice, summons, order or other process
received by the INSURED or the INSURED's representative as soon as
practicable.
In the event of the termination of this insurance before the expiration date
shown in the Declarations, the INSURED shall be entitled to a ninety (90)
day Automatic Extended Reporting Period for no additional premium. The
Automatic Extended Reporting Period shall apply as follows:
(1) A CLAIM first made against the INSURED during the POLICY
PERIOD and reported to the Company, in writing, during the ninety (90)
days immediately following the effective date of such termination will be
deemed to have been made on the last day of the POLICY PERIOD,
provided such CLAIM is otherwise covered by this Policy.
(2) A CLAIM first made against the INSURED and reported to the
Company, in writing, during the ninety (90) days immediately following the
effective date of such termination will be deemed to have been made on
the last day of the POLICY PERIOD, provided such CLAIM arises from a
POLLUTION CONDITION first discovered and reported to the
Company, in writing, prior to such termination, and is otherwise covered
by this Policy.
The Automatic Extended Reporting Period does not apply where: (1) the
Policy is terminated for fraud or non-payment of premium; or (2) the
INSURED has purchased other insurance to replace the insurance
provided under this Policy.
For the purposes of Section V.A. — Automatic Extended Reporting Period,
under this Policy:
(a) either cancellation or non -renewal shall be deemed to be a termination
of this insurance; and
(b) in the event of non -renewal, the expiration date shown in the
Declarations shall be deemed the effective date of the termination.
AffNk .RAW QWJ UlMiMft ia.n'WUn
14
CITY OF VERNON
POLLUTION LEGAL LIABILITY — OPTION 1
The Optional Extended Reporting Period shall be effective for three (3)
consecutive three -hundred and sixty-five (365) day periods commencing
immediately following the effective date of cancellation or non -renewal. The
FIRST NAMED INSURED must elect to purchase this Optional Extended
Reporting Period in writing within thirty (30) days from the cancellation or
non -renewal of the Policy. The Automatic Extended Reporting Period of
ninety (90) days will be merged into this period and is not in addition to this
period.
The Optional Extended Reporting Period shall only apply to CLAIMS first
made against the INSURED during the Optional Extended Reporting
Period, but only by reason of a POLLUTION CONDITION first
discovered and reported to the Company, in writing, during the POLICY
PERIOD, and is otherwise covered by this Policy.
The Optional Extended Reporting Period does not apply where:.(1) the
Policy is terminated for fraud or non-payment of premium; or (2) the
INSURED has purchased other insurance to replace the insurance provided
under this Policy.
For the purposes of Section V.B. — Optional Extended Reporting Period
under this Policy:
(a) either cancellation or non -renewal shall be deemed to be a termination
of this insurance; and
(b) in the event of non -renewal, the expiration date shown in the
Declarations shall be deemed the effective date of the termination.
It is a condition precedent to the operation of the rights granted under
Section V.B. that payment of the appropriate premium shall be made not
later than thirty (30) days after expiration in the case of non -renewal or prior
to cancellation in the case of cancellation.
15
CITY OF VERNON
SCHEDULE OF NON OWNED DISPOSAL SITE
Punete Hills Landfill
Sunshince Canyon Landfill
Olinda Alpha Sanitary Landfill
Antelope Valley Public Landfill
Azusa Land Reclamation
Chiquita Canyon Landfill
Kettleman Hills
El Sobrante Landfill
Lancaster Landfill & Recycling
Simi Valley Landfill & Recycling
Frank R Bowerman Sanitary Landfill
.I9HNL Faltw owl U;UAVOU a
16
OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
March 7,.2011
Arthur J: Gallagher & Co.
Insurance Brokers of California, Inc.
ATTN: Nasreen Kopecky, Account Manager
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
Re: Pollution Legal Liability Insurance from. Great American Insurance Group
Dear Ms Kopecky:
Transmitted herewith is a copy of Resolution No. 2011-29 that was approved by City Council on
March 1, 2011.
If you have any questions regarding this matter, please call Mr. Willard Yamaguchi at (323) 583-
8811 ext. 175.
Very, truly yours,
r
WI LARD G. A G C
City Clerk
WGY:dj
Enclosure
c: Ana Barcia
Michelle Mermis
Resolution No. 2011-29
Excfusivefy Industfid
C'(' rGcf
RECEIVED
STAFF REPORT
Risk Management
DATE: February 23, 2011
TO: Honorable Mayor and City Council
FROM: Willard G. Yamaguchi, Risk Manager ��
RE: Pollution Legal Liability Renewal for 2011-12
FEB 2 3 2011
CITY ADMINISTRATION
For the non-exclusive franchise trash haulers, the City has a pollution liability policy for
coverage of disposal sites in the event that a condition arises at a site or during transit. For 2010-
2011 the underwriter is Great American Insurance. The cost of the premium is $18,662 and the
policy will expire on March 23, 2011.
For 2011-2012, Risk Management obtained a quote from Great American Insurance. The
premium for the policy renewal with Great American decreased slightly_ with a new premium of
$17,566 not including Surplus Lines Taxes and fees.
Fiscal Impact
The fiscal impact 18 $17,566 not including Surplus Lines Taxes and fees.
Recommendation
Risk Management recommends that the City Council approve the proposal from Great American
Insurance Company for pollution liability for landfill and transit cleanup in the amount of
$17,566 not including Surplus Lilies Taxes and fees. This is to be put on the March 1, 2011
agenda.
WGY/nun