Resolution No. 2012-089RESOLUTION NO. 2012-89
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE PROCUREMENT OF
POLLUTION LEGAL LIABILITYINSURANCE FROM EVANSTON
INSURANCE COMPANY THROUGH ARTHUR J. GALLAGHER & CO.
WHEREAS, the City Council of the City of Vernon adopted
Ordinance No. 1067 on December B, 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
Americanff) for insurance in excess of insurance coverage required in
the Franchise Agreement will expire on July 1, 2012; 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, Arthur J. Gallagher obtained quotes for pollution
legal liability insurance coverage from three insurance companies, and
has recommended that the City enter into an arrangement with Evanston
Insurance Company ("Evanston") for the necessary environmental
insurance; and
WHEREAS, by memo dated May 23, 2012, the Risk Manager has
recommended the procurement of pollution legal liability insurance
coverage with Evanston; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of section 2.27(b)(1) of
the Vernon.City Code, it is in the public interest and necessity to
procure the necessary pollution legal liability insurance with
Evanston 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 insuranc e policy on behalf of the City of
Vernon fr om Evanston Insurance Company 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 $14,236.38 plus any applicable excess and surplus line
taxes to Evanston for the pollution legal liability insurance policy
in accordance with the terms of the Insurance Pr oposal.
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SECTION 4: The City Council of the City of Vernon hereby
instructs 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.
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
the City Clerk's certification to be entered in the File of
Resolutions of the Council of this City.
APPROVED AND ADOPTED this 5 th day of June, 2012
Name: willAm J. Davis
Title:q�/ mayor Pro-Tem
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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. 2012-89, 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, June 5, 2012, and thereafter was duly signed by the
Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this day of June, 20 at Vernon, California.
6�A
.. lard G. Ya ag4hi, �C�ty Clerk
(SEAL)
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EXHIBIT A
Arthurj. Gallagher Risk Management Servi
Coverage Highlights
Coverage: Pollution Liability
Carrier: Evanston Insurance Company
Policy Period: July 1, 2012 to July 1, 2013
Form Number: specimen Upon reqUest
Enviro Flex Environmental Claims -Made
Impairment Liability
Coveraae:
Ell.: Policy Inception
DESCRIPTION
LIMIT
Environmental Impairment Liability
A: Bodily Injury & Property Damage
$1.000,000
B: Onsite Cleanup Costs - New
$1,000,000
Pollution Conditions
C: Onsite Cleanup - Pro -Existing
$1.000.000
Pollution Conditions
D: Offsite Cleanup - Now Pollution
$1,000,000
Conditions
E: Offs.ite Cleanup - Pre -Existing
$1,000,000
Pollution Conditions
F: Contingent Transportation
$5.000,000
Pollution Liability
G, Non -Owned Disposal Sites
$5,000,000
Shared General Aggregate
$5,000.000
Deductibles/SIR:
TYPE
iCOVERAGE
�AMOUNT
!AMOUNT BASIS
Deductible
Deductible (Per Pollution Condition)
-
Deductible
A; Bodily.Injury & Property Damage
$25,000
Deductible
6: Onsite Cleanup Costs
-- -- ---
---- — --------
Conditions
Deductible
C: Onsile Cleanup - Pre -Existing
Pollution Conditions
Deductible
D: Offsite Cleanup - New Pollution
$25.000--
Conditions
Deductible
E: Of(site Cleanup - Pre -Existing
$25,000
Pollution Conditions
Deductible
F: Contingent Transportation Pollution
j25.600
Liability
Deductible
G: Non -Owned Disposal Sit
$25,000
U11
Arthurj. Gallagher Risk Management Services
Coverage Highlights (Cont'd)
Any Other Continuity or Specific Datesil-Imits aDDlicable to
Enviro Flex Environmental
Impairment Liability i I
Refer to attached policy form
Refer to attached policy form
Refer to attached policy form
request must be in writing to the carrier
but
PolicyJacket - MJIL 1000 0810
CA Environmental Package Policy Declarations - MDEI 2004 0810
Schedule of Forms - MOIL 100 1 0811
-General Terms and Conditions Section - MEEI 2700 0810
Liability Deductible Endorsement - MEEI 2201 1210
Minimum Premium & Minimum Retained Premium Endorsement: - MEEI 2206 0411
Minimum Premium is 100% of the advanced and deposit premium
Minimum Retained Premium in the event of cancellation by the Insured: 25%
Service of Suit Clause - California - MEIL 1200-CA 0110
Changes - Civil Union - MEIL 1225 1011
Emergency Response Hotline - MPEi 2000 0112
Privacy Notice - MPIL 1007 0410
Enviro Flex Environmental Impairment Liability Declarations - MDEI 2000 0611
Environmental Impairment Liability - Claims Made - MEEI 0003 0810
Underground Storage Tank Schedule - MEEI 2.238 0711
1. 4305 Santa Fe Avenue, Vernon, CA 90058. 10,000 gallon diesel tank
2. 4305 Santa Fe Avenue, Vernon, CA 90058, 8,000 gallon unleaded gasoline tank
3. 4305 Santa Fe Avenue, Vernon, CA 90058 8,000 gallon unleaded gasoline tank
Asbestos and Lead Paint Sublimit of Liability (No sublimit to apply) - MEEI 2240 0810
14t and 3rd Party Transportation Liability - MEEI 2265 0810
Schedule of Covered Locations - MDEI 2001 0111
Exclusions inclucle,but are not limited to:
Proposal for Oily of Vernon 50
ArthUl-J. Gallagher Risk Manaaerrient; Services
Exclusion of Certifidd Acts of Terrorism (this exclusion will be removed for an additional - MEIL 1308 0810
- Premium of 5% (five percent) of the premium option selected if the insured chooses to purchase cdverage by placing
an W' in the appropriate box on the "Disclosure of Terrorism Insurance Coverage". In the event that the coverage is
purchased, MEIL 1217 0810, "Cap On Losses From Certified Acts of Terrorism" will be attached.)
Defense Limitations:
Defense Limitation: El Applies
Defense Cost Type: [] In addition to Policy Limit, and if so:
El Other
E] Within Policy Limits (expense erode policy limit)
0 Within Policy Limits (expense erode policy limit), and if so:
DESCRIPTION
Subject to -
- Signed "Disclosure Notice of Terrorism Insurance Coverage" must be signed and returned prior to or at binding.
Coverage WILL NOT be bound without it.
- Current and prior 4 years of currently -valued loss runs for all named insureds (if no prior coverage, a no known loss or
circumstance on the Insured's letterhead may satisfy this requirement)
- Copies of existing environmental Reports (Phase 1, Phase 11, etc.) if available.
- Signed Markel Enviro Flex EIL Application.
- Need copies of signed D-1, SL-2, Acord Application and Terrorism Disclosure (with client's decision).
and
Optional Terrorism Coverage Is Available for an Additional 5% of the Premium Selected via the MEIL `1217 0810 Cap
on Losses from Certified Act of Terrorism (+ taxes and fees).
Fees are 100% Fully Earned.
No Flat Cancellation,
propose/ for City of Vernon 51
Arthud, Gallagher Risk Management Services
Coverage Highlights (Cont'd)
Premium
$12,979.00
Taxes
State Tax
$399.12
Total Taxes
$399.12
Fees
Broker Fee - Fully retained at inception
$500.00
Inspection Fee - Fully retained at inception
$325.00
CA Stamp Fee
$33.26
Total Fees
$858.26
ESTIMATED PROGRAM COST:
$14,236.38
Minimum Earned Premium
25% At Inception
TRIAj7RIPRA PREMIUM
(+ Additional Surcharges. Taxes and Fees as applicable)
INCLUDED
Subject to Audit: - Not Auditable
Proposai for City of Vernon 52
OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
June 7, 2012
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 Evanston Insurance Company
Dear Ms. Kopecky:
Transmitted herewith is a copy of Resolution No. 2012-89 that was approved by City Council on
June 5, 2012.
If you have any questions regarding this matter, please call Mr. Willard Yamaguchi at (323) 583-
8811 ext. 175.
Very -Iyyours,
�4u
4ft
WGY:dj
Enclosure
c: Justin Arriola
Ana Barcia
Resolution No. 2012-89
Eycfusivef
y industiiaf
RFr'� 71= IV ED
MAY 2 4 2012
CITY CLERK'S OFFICE
DA: May 23, 2012
Staff Report
Risk Management
TO: Honorable Mayor Pro Tern and City Council
FR: Willard G. Yamaguchi, Risk Manager M
RE: Pollution Liability Insurance Policy Renewal 2012-13
RECEIVED
MAY 2 3 2012
CITY ADMINISTRATION
The City of Vernon has a Pollution Liability insurance policy for pollution issues that arise at
landfills that Vernon trash haulers dump their loads. Great American Insurance Company is the
incumbent carrier. The cost of the policy is $15,877.00.
For fiscal year 2012-13, our insurance broker, Arthur J. Gallagher, was able to secure the
following quotes:
Great American Insurance Company $17,566.00
Evanston Insurance Company $14,236.38
Crum & Forster Specialty Insurance Company $27,647.25
Based on the quotes provided, Evanston provides the most competitive pricing. Coverage is
equivalent to Great American.
Fiscal Imp
Adequate funds have been budgeted for this expenditure.
Recommendation
Risk Management recommends the renewal of the Pollution Liability insurance policy regarding
landfills with Evanston Insurance Company at a cost of $14,236.38.