Resolution No. 2012-090RESOLUTION NO. 2012-90
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 OF PITTSBURGH, PENNSYLVANIA
THROUGH ARTHUR J. GALLAGHER & CO.
WHEREAS, the city,s current Public Employee Crime Policy
with National Union Fire Insurance Company of Pittsburgh, Pennsylvania
("National Union") covering employee dishonesty, forgery and fraud
expires on June 30, 2012 (the "Crime Policy"); 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 May 23, 2012, the Risk manager has
recommended that the Crime Policy be purchased from National through
Arthur J. Gallagher based on the quote from National Union in the
amount of $3,696.00, exclusive of surplus lines taxes and fees; and
WHEREAS, the City desires to renew the Crime Policy with
National Union to protect the City; 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
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 Union 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'$3,696.00, plus surplus line taxes and fees, if
applicable.
SECTION 5: The City Cou ncil 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
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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 certificationto be entered in the File of
Resolut ions of the Council of this City.
APPROVED AND ADOPTED this 5 th day of June, 2012.
Name: William J. Davis
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. 2012-90, 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 7 day of June, 2012, at Vernon, California.
illard G. /Zakagu�i4, City Clerk
(SEAL)
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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: Public Employee Crime Policy from National Union Fire Insurance Company of
Pittsburgh, Pennsylvania
Dear Ms. Kopecky:
Transmitted herewith is a copy of Resolution No. 2012-90 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.
WGY:dj
Enclosure
c: Justin Aniola
Ana Barcia
Resolution No. 2012-90
Exyfusively Industriaf
RECEIVED
MAY 2 4 2012 Staff Report
C,ITY CLERK'S OFFICE Risk Management
DA: May 23, 2012
TO: Honorable Mayor Pro Tern and City Council
FR: Willard G. Yamaguchi, Risk Manager
V
RE: Employee Crime Insurance Policy Renewal 2012-13
RECEIVED
MAY 2 3 2012
CITY ADMINISTRATION
The City of Vernon has an Employee Crime insurance policy in the amount of $1 million per
occurrence. National Union Fire Insurance Company of Pittsburgh, Pennsylvania ("National
Union") is the current carrier. The cost of the policy is $3,696.00.
For fiscal year 2012-13, our insurance broker, Arthur J. Gallagher, was able to secure the
following quotes:
National Union $3,696.00
Zurich American Insurance Company $2,957.00
Great American Insurance Company $3,200.00
Our insurance broker recommends staying with National Union based upon the City's
established relationship with National Union and the nominal. difference in cost.
Fiscal Inn)
Adequate funds have been budgeted for this expenditure.
Recommendation
Risk Management recommends the renewal of the Employee Crime insurance policy with
National Union Fire Insurance Company of Pittsburgh, Pennsylvania at a cost of $3,696.00. The
rate is the same as the current fiscal year.