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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. lrlrv) 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