HomeMy Public PortalAboutM 1971-06-29 - CC`~~() `~
ADJOURNED REGULAR MEETING JUNE 29, 1971
The City Council of the City of Lynwood met in an adjourned
regular session in the City Hall, 11330 Bullis Road, on
above date at 4:30 p.m.
Councilmen Byork, Green, Siokos and Stevens answered the
roll call.
Councilman Liewer was absent.
In the absence of Mayor Liewer, Mayor pro tempore Byork
took the chair.
St. Philip The request of the St. Philip Neri Athletic Association
Neri Athl. for permission to change the location of their fireworks
Assn. Fire-stand from the corner of California and Imperial Highway
works to the church property at 12601 Cookacre Street, was
stand presented. It was moved by Councilman Green, seconded
relocation by Councilman Stevens, and carried, that permission be
approved granted.
Liability The City Manager reviewed the City's current general
.insurance liability insurance situation, stating that it was determined
reviewed that the city's needs would be made known to a group of local
and new insurance agents, inviting them to submit proposals. Up
proposals through June 15 only one proposal was submitted, that of
made Harbor Insurance submitted by Mr. Emmett Schwartz. Since
that time a great deal of interest has developed among
other agents, and they were encouraged to make submissions
as quickly as possible because of the current policy
expiring on July 1 and to enable the City Attorney to
review them. The City Attorney has received only one prior
to today, so more time is needed to review the proposals.
The City Clerk informed the Council that she has three
quotations in addition to the original one received
several weeks ago, and there are some others wishing to
submit.
Following a short recess to discuss procedure, the Mayor
announced that those wishing to make oral submissions
could do so at this time.
Mr. Jack Weaver, 11222 Long Beach Boulevard, addressed the
Council to state that he had two proposals. The first,
from Hartford Insurance Company, is for $1,000,000
coverage, with no deductible, excludes riot and civil
commotion, inverse condemnation and errors and omissions.
Otherwise, it would be the same=contract as currently
carried by the City of Lynwood. The premium quoted was
$85,500 annually.
Councilman Stevens questioned inverse condemnation and the
City Manager provided an example.
The second proposal was presented on Mr. Weaver's behalf
by Mr. Ed Gottlieb, Special Agent for Mission Equities
Corporation of Los Angeles. Mr. Gottlieb presented a
retrospective plan with no inverse condemnation, errors
and omissions or riot coverage. Otherwise, it would be
all-risk. The basic premium proposed was $30,000 with
a limit on any one loss of $25,000, with an initial
deposit of $100,000. Mr. Gottlieb explained the workings
of a retrospective plan wherein, depending upon losses
sustained in a year, it would be possible that the city
would receive a refund of the unused portion of the
initial deposit. He emphasized that the important factor
was a limit of $25,000 on any one occurrence and the plan
would not protect the city against catastrophic losses.
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Mr. Don Martin and Mr. M. D. Bogen, of Cal-Surance Associates
Inc. 3475 Torrance Boulevard, Torrance, presented their
proposal as follows: Basic general liability of $100/$300,000
with excess liability of $1,000,000, with annual premium
of $34,500 and $6,000, respectively, for a total of
$40,500 annually. The policy would cover riot on the Liability
+"""' basic portion only. The basic policy would exclude Insurance
inverse condemnation and errors and omissions, except reviewed and
as to errors and omission in failure to disclose new new proposals
exposures to the insurance company. The excess policy Made
would exclude riot, inverse condemnation and errors and
omissions. The policy would include broad form named
insured, Chapter 1681 provisions, and blanket contractual
liability in addition to the basic comprehensive general
and automobile liability.
The cancellation clause provides for not less than sixty
days prior notice. In addition, they propose to provide
loss control measures to the city at no additional cost.
They expressed the belief that to reduce the city's cost
of insurance the lesser must be reduced. As to the
$250 deductible feature for property damage, Cal-Surance
would want the claims to be handled by their staff on
the city's behalf, thus eliminating the city's
administrative cost. They would also want to see all
claims before they were submitted to the insurance
company.
The City Attorney asked if the policy would contain
the phrase "Such insurance as is afforded with
respect to any person or organization other than the
'^ named insured does not apply to any person while
engaged in the business of his employer with respect
to bodily injury to any fellow employee of such
person injured in the course of his employment."
Mr. Martin's reply was affirmative; he said he didn't
think there is a company writing such coverage but
it is something that could porbably be negotiated
if the Attorney felt it was something the city
should have. He stated that the purpose is to exclude
claims of one employee against another employee,
and it is a normal exclusion. Mr. Hemenway
described an instance of one employee suing another,
and while the verdict was for the defendant, it was
a bad experience.
Mr. Hemenway also questioned whether or not the policy
contained, in defining an occurrence, the words
"neither expected nor intended." For the benefit
of the Council in view of other proposals, he
explained this is a situation that is very important
to the city in public nuisance abatement situations.
The present carrier has taken the position that any
judgment is not covered by the insurance when the
,,.., Council takes action by resolution ordering the owner
to repair or demolish a structure or ordering the
building official to do so.
Mr. Bogen stated this would be covered under the
policy.
The City Attorney also asked if they were aware of
some special indorsements the city requires relative
to the overhad sign at Orchard and Long Beach
Boulevard (Southern California Edison Company), and
for lease agreements with the Pacific Electric Company
fi V
Liability for use of right of way property. Mr. Bogen said
insurance, the company has approved the indorsement for the
new proposals overhead sign, but they had only become aware of the
right of way situation that afternoon. As to the
Pacific Electric indorsement which provides more
coverage to the railway than it does to the city,
he said would have to obtain the exact wording of ""`
the indorsement and discuss it with the underwriter
before he could provide an answer. The City
Attorney said he noticed that the incidental contract
is excluded, and Mor. Bogen said it is automatic
under the basic contractual agreement.
Mr. E. L. Morris, 11315 Atlantic Avenue, representing
Haugen & Associates, presented a quotation by
Reserve Insurance Company through S. E. Knight &
Co., Inc. of Los Angeles. The policy offered is
for $1,000,000, with $25,000 deductible at an
annual premium of $60,000. The contract would specify
the continuous maintenance of a cash reserve fund
in the amount of $25,000 for payment of claims which
are to be adjusted by the Reserve Insurance Company.
Mr. Emmett Schwartz, 12010 Long Beach Boulevard,
addressed the Council concerning the quotation he
had submitted on June 15. He said he had turned
down opportunities for quotations because he asked
for no exclusions for errors and omission, riot and
civil commotion and inverse condemnation. He said
his quotation included these coverages with a limit
of $150,000 on riot and civil commotion.
Mr. Brent Richards, representing Majestic American,
Inc., 11226 South Western Avenue, Los Angeles,
presented a quotation from St. Paul Insurance Company
to be brokered through the George A. Richards and
Sons Insurance Agency in Long Beach. They offer
$1,000,000 combined single-limit coverage for bodily
injury and property damage, with no deductible,
and exclude inverse condemnation, riot and civil
commotion, and professional liability. The annual
premium would be $51,750, not subject to audit.
The City Attorney questioned Mr. Richards about
Chapter 1681 coverage and whether or not they would
be able to provide the indorsements for Pacific Electric
and Edison Company. He said he could not answer that
at this time but felt sure they would be able to
accommodate the city on those items.
The City Clerk informed the Council that a quotation
had also been received from the firm of Van-Gilbert
1085 North Main Street, Orange, through Mr. Dale Van
Stratten. They offer a policy with Great American
Insurance Company for $1,000,000 combined single limit
for a annual premium of $45,081, with a $250 deductible
feature. To remove the deductible on property damage, w,,,
the premium would be increased by $787.00. The policy
excludes riot and civil commotion, inverse condemnation, a
and errors and omissions. The City Attorney, who had
reviewed a specimen policy, commented that it also
has the clause which excluded by definition the
"expected or intended acts" such as discussed earlier.
Mr. Bogen was questioned as to loss control, and he
said the problems appear to be primarily in the police
and street departments. He said thepurpose of their
engineering is to try to come up with solutions to
2O
problems and to manage risk in order to minimize losses,
find ways to reduce, prevent or transfer losses. He
said this is at no cost to the city but in the long
run they will hold their clients through these
programs. He said they would meet with city personnel Liability
on a regular basis to discuss losses and will provide Insurance
loss summaries and engineering reports. If there is
a trend of losses the city will know about it.
The City Attorney was akked if, on the basis of
information available on short notice, he would
make a recommendation. The Attorney said it appeared
that the best offer has been submitted by Cal-Surance,
and asked Mr. Bogen how long it would take to provide
a policy. Mr. Bogen said he had authority to bind
it immediately. He was also asked if he thought
he could work out something with Pacific Electric,
and Mr. Bogen said they would try very hard; that
he would get a copy of the indorsement and go to
work on it immediately.
The City Manager commented that the tracks will
be removed for construction of the freeway.
The City Clerk was asked if she had any comment
on the proposals, and she said it was her feeling
that if the legal points mentioned by the City
Attorney were answered to his satisfaction, she
looked most favorably on the Cal-Surance proposal
because of their loss prevention and risk management
programs, which if as .:represented, should be
helpful to the city.
It was moved by Councilman Siokos, seconded by Cal-Surance
Councilman Green, that the proposal of Cal- liability
Surance Associates, Inc. be accepted on condition insurance
that a binder is provided on June 30, 1971. program
Roll Call: accepted
Ayes: Councilmen Byork, Green, Siokos, Stevens.
Noes: None.
Absent: Councilman Liewer.
Mr. E. L. Morris again addressed the Council to
suggest that in the future specifications be provided
in order that anyone interested in bidding will be
making quotations on the same items.
The City Manager reviewed the Police Reserve Police
Association., a group serving without pay, providing Reserve
their own equipment and uniforms, each of whom must program
serve the city four hours each week in order to reviewed
maintain active status. He said a problem has
arisen because of injury to one of the members of
the Association which resulted in a loss of wages
of approximately $290. His medical expense and
weekly indemnity of $87.50 per week was paid under
the State Compensation Fund coverage provided by
the City. He outlined the correspondence and
conversations he has had regarding providing weekly
indemnity for the Association to avoid similar lost
wages in cases of injury, but was unable to
authorize any additional compensation. He said he
is in receipt of a letter from the Association, directed
to Lt. Burns, indicating that the membership of the
21.1 Ei
Police
Reserve
program
reviewed
Reserve Association has met, and based on his inability
to provide the wage protection they require, voted to
cease operations as of June 30, 1971.
Mr. Bob Newton, representing the Reserve Association,
reviewed his association with the group and the
problems they face.
A letter from Mr, E, L. Morris of Haugen & Associates
Insurance Inc., directed to the City Manager was
read. A quotation for disability covering the
Lynwood Police Reserves was provided, as follows:
24-hour coverage for accident disability only, payable
at the rate of $300 per month per individual; based
upon a membership of 25, the tentative monthly cost
to the city would be $110, with details to be completed
if the quote is acceptable to the City. The carrier
would be Western Life Insurance Company.
Mr. Newton was asked if the statement from the Council
that it is their intention to proceed in a weekly
indemnity proposal would be acceptable. He said
he would not be authorized to accept, and said this is
extremely important to the membership as they feel
they are jeopardizing their families if they go
out and work without property coverage.
There was general discussion of possible ways to provide
the additional reimbursement to the men immediately
because of the Fourth of July weekend, and the City
Manager suggested that the City Clerk make some rapid
inquiries to see if anything could be made available
to present on Friday, July 2. The City Clerk agreed
to do so the following morning.
Councilman Green inquired about investigation of
outside realtor licensing, and was informed that
an investigation is in progress.
Adjourn to It was moved by Councilman Green, seconded by Council-
July 2, 1971, man Stevens, and carried, that the meeting be
4:30 p.m. adjourned to Friday, July 2, 1971, at 4:30 p.m.
\~ s ~ ~~ ~t,E~ u 7 r
.City Clerk, City of Lynwood
APPROVED JULY 20, 1971
Mayor o t City of Lynwood