Resolution No. 2012-189RESOLUTION NO. 2012-189
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE PURCHASE OF A
ONE-YEAR AND NINE MONTHS ENVIRONMENTAL SITE
LIABILITY INSURANCE POLICY FOR PRE-EXISTING
CONDITIONS AND NEWLY DISCOVERED CONDITIONS OF
SPECIFICALLY LISTED PROPERTIES FROM EVANSTON/MARKEL
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, 2012; 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 27, 2012, the Chief Deputy
City Attorney advised that insurance premium quotes were received from
Chubb Custom Insurance Company in the amount of $17,594.00;
Evanston/Markel Insurance Company in the amount of $13,155.32; and
Crum & Foster in the amount of $15,950.00; and
WHEREAS, Evanston/Markel Insurance Company ("Evanston"),
provided the lowest quote in the amount of $13,155.32, 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, in an effort to have all City insurance policies
expiring and commencing on a fiscal year calendar, Evanston provided a
quote of $19,250.00 extending the ESL policy to June 30, 2014; and
WHEREAS, the Chief Deputy City Attorney recommends that the
City renew the policy with Evanston in the amount of Nineteen Thousand
Two Hundred Fifty Dollars ($19,250.00); 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 ESL Policy for pre-existing conditions and
for newly discovered conditions of specifically listed properties with
Evanston for the period of September 29, 2012 through June 30, 2014,
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 and
nine months.
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
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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
Evanston and the payment of the annual premium payment of $19,250.00,
plus applicable surplus lines taxes and fees.
SECTION 5: The City Council of the City of Vernon hereby
directs the Acting City Clerk, or the Acting City Clerk's designee, to
send a copy of this Resolution to:
Arthur J. Gallagher & Co.
Insurance Brokers of California, Inc.
Attn. Nasreen Kopecky,,Account Manager
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
SECTION 6: The Acting City Clerk of the City of Vernon
shall certify to the passage, approval and adoption of this
resolution, and the Acting City Clerk of the City of Vernon shall
cause this resolution and the Acting City Clerk's certification to be
entered in the File of Resolutions of the Council of this City.
APPROVED AND ADOPTED this 2nd day of October.., 2012.
Z �
Name: William J. Davis
n Title: / Mayor Pro-Tem
ATIE$T:
DanAlReed, Acting City Clerk
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Dana Reed, Acting City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 2012-189,
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, October 2, 2012, and thereafter was duly signed by the Mayor
or Mayor Pro-Tem of the City of Vernon.
Executed this day of October, 2012, at Vernon, California.
Dayna Reed, Acting City Clerk
(SEAL)
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it Ab4v,
OFFICE OF THE CITY CLERK
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
October 17, 2012
Arthur J. Gallagher & Co.
Insurance Brokers of California, Inc.
Attn. Nasreen Kopecky, Account Manager
15 Enterprise, Suite 200
Aliso Viejo, CA 92656
Re: Resolution No. 2012-189 - A Resolution of the City Council of the City of Vernon
Amending Resolution No. 2012-189, Which Approved and Authorized the Purchase of a
One- Year and Nine Months Environmental Site Liability Insurance Policy for Pre -Existing
Conditions and Newly Discovered Conditions of Specifically Listed Properties from
Evaston / Markel Insurance Company through Arthur J. Gallagher & Co.
Dear Mrs. Kopecky:
Transmitted herewith is a copy of Resolution No. 2012-189 that was approved by City Council
on October 02, 2012.
If you have any questions regarding this matter, please call Willard Yamaguchi at (323) 583-
8811 ext. 175.
Very trul ,
Barcia
Deputy City Clerk
AB/yb
Enclosure
c: Teresa McAllister
Resolution No. 2012-189
E,clusively Industriaf
RECEIVED
SEP 2 7 2012
CITY ADMINISTRATION
SEP 2 4 2012 STAFF REPORT
CITY CLERK'S OFFICE Risk Management Department
DATE: September 27, 2012 0
TO: Honorable Mayor Pro Tem and City Council
FROM: Willard G. Yamaguchi, Chief Deputy City Attorney Vi
RE: Environmental Site Liability/Pollution Policy
September 29, 2012 — June 30, 2014
The City has an Environmental Site Liability Policy for acquired properties in the event that a
pollution incident arises at a site. The current underwriter is Evanson/Markel Insurance
Company. The identified sites are:
1. Owens, 2970 E. 501h Street
2. St. Gobain, 4855 E. 52°d Place
3. Thermadore, 5119 District Boulevard
4. OE Clark, 2716-2724 Leonis Boulevard
5. Smurfit, 2001 E. 571h Street
6. Owens 2828 E. 50th Street
7. Akzo-Nobel, 3250 Washington Boulevard
8. Butler Smith, 3200 Washington Boulevard
9. Chef Solutions, 5001 South Soto Street
10. Development Center, 3375 Slauson Avenue
11. Doyle Trust, 3240 Washington Boulevard
12. Russell, 3226 East Washington Boulevard
13. Standard Paper Box, 2301 Vernon Avenue
14. USPS, 4901 Bandini Boulevard
15. Angelus Can, 4900 Pacific Boulevard
For 2011-12, the cost of the premium for pollution insurance was $13,462.00. For 2012-13, the
cost of the premium for pollution insurance is $13,155.32. This represents a savings of
approximately $307.00. However, in an effort to have all policies (Liability, workers comp,
property, etc.) expiring and commencing on a fiscal year calendar, that is, June 301h and July I",
respectively, it is recommended that this Environmental Site Liability Policy be extended to June
30, 2014 at a cost of $19,250.00.
Colony Insurance Company and Crum & Forster Specialty declined to quote due to the current
market conditions and/or pricing.
Fiscal Impact
Sufficient funds have been budgeted for this expense.
Recommendation
Risk Management recommends that the City accept the quote from Evanston/Markel Insurance
Company in the amount of $19,250.00 for Environmental Site Liability/Pollution policy for
pollution conditions, and that a Resolution for said insurance coverage be placed on the October
2, 2012, agenda.
WGY/kr
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: October 29, 2012
TO: Willard G. Yamaguchi, Chief Deputy City Attorney
FROM: Ana Barcia, Deputy City Clerk
RE: Resolution No. 2012-189 — A Resolution of the City Council of the City of Vernon
Amending Resolution No. 2012-189, Which Approved and Authorized the Purchase of a
One- Year and Nine Months Environmental Site Liability Insurance Policy for Pre -
Existing Conditions and Newly Discovered Conditions of Specifically Listed Properties
from Evaston / Markel Insurance Company through Arthur J. Gallagher Co.
Transmitted herewith is a copy of Resolution No. 2012-189 referenced above, which was approved by
City Council on October 2, 2012.
Thank you.
•
Attachment
c: Resolution No. 2012-189
Teresa McAllister