Resolution No. 2011-160RESOLUTION NO. 2011-160
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 EVANSTON 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, 2011; 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 th-e City's broker to structure and obtain the appropriate
insurance coverage; and
WHEREAS, by memo dated September 14, 2011, the Risk Manager
advised that insurance premium quotes were received from Chubb Custom
Insurance Company in the amount of $17,594.00; Evanston Insurance
Company in the amount of $13,492; and Crum & Foster in the amount of
$15,950.00; and
WHEREAS, Evanston Insurance Company ("Evanston"), provided
the lowest quote in the amount of $13,492.00, exclusive of surplus
lines taxes and fees and the Automatic Acquisition clause that allowed
newly acquired property to be automatically added to the policy; and
WHEREAS, the Risk Manager recommends that the City renew the
policy with Evanston in the amount of Thirteen Thousand Four Hundred
and Ninety -Two Dollars ($13,492.00); 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 Evanston for the period of September 29, 2011 through
September 29, 2012, 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 specifically listed properties
with Evanston through Arthur J. Gallagher for an additional year.
SECTION 3: The City Council of the City of Vernon hereby
directs the 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
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against pollution incidents at various specified locations from
Evanston and the payment of the annual premium payment of $13,492.00,
plus applicable surplus lines taxes and fees.
SECTION 5: The City Council of the City of Vernon hereby
directs the City Clerk, or the City Clerk's 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
th-e City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
ATT ST:
Will rd G.
APPROVED AND ADOPTED this 20th day of September, 2011.
Name: Hilario Gonzales
chW,JCity Clerk
Title: Mayor / Mayor P�
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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. 2011-160, 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, September 20, 2011, and thereafter was duly signed by
the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this � day of September, 2011, at Vernon, California.
(SEAL)
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OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
September.21 2011
Arthur J. Gallagher & Co.
Insurance Brokers of California, Inc.
ATTN: Nasreen Kopecky, Account Manager
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
Re: Environmental Site Liability Insurance Policy from Evanston Insurance Company
Dear Ms. Kopecky:
Transmitted herewith is a copy of Resolution No. 2011-160 that was approved by City Council
on September 20, 2011.
If you have any questions regarding this matter, please call Mr. Willard Yamaguchi at (323) 583-
8811 ext. 175.
Very ly your
WI LARD G.
City Clerk
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Enclosure
-c: Ana Barcia
Resolution No. 2011-160
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CITY ADMINISTRATION
STAFF REPORT
Risk Management
DATE: September 14, 2011
TO: Honorable Mayor and City Council
FROM: Willard G. Yamaguchi, Risk Manager
RE: Policy Renewal for 2011-12
The City has an Environmental Site Liability policy for city owned industrial properties in the
event that a pollution incident arises at a site. Chubb Custom Insurance Company is the current
underwriter. For 2010-11, the cost of the premium for pollution insurance is $16,394. The
current policy will expire on September 29, 2011.
For 2011-12, Risk Management obtained a quote from Chubb Custom Insurance Company
("Chubb") at $17,594. The increase in premium represents the addition of the recently acquired
Angelus site at 490.0 Pacific Boulevard.
Evanston Insurance Company ("Evanston") submitted a quote of $13,492 with comparable
coverages, and the additional clause of Automatic Acquisition, which will cover newly acquired
property, such as the Angelus site.
Crum & Forster have indicated a premium cost of $15,950 for the policy, pending review of
environmental reports.
Fiscal Impact
Sufficient funds have been budgeted for this expense.
Recommendation
Risk Management recommends that the City accept the quote from Evanston in the amount of
$13,492 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, 2011, agenda. Evanston's submitted the lowest quote with the greatest amount of
coverage.
WGY/ab
cc: Mark Whitworth