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2400 - Los Angeles County - Assumption of Liability Agreement.,I <75N-(WjT4-I 117F 11 2 3 4 5 6 7 8 9 10 II 12 13 Id 15 16 17 18 19 20 31 22 23 24 5 I! 26 27 28 ASSUMPTION OF LIABILITY AGREEMENT THIS AGREEMENT, dated for reference purposes only, on the 14th day of November, 1977, is made and entered into between the County of Los Angeles, sometimes hereinafter referred to as the "County," and the City of sometimes hereinafter referred to as the "City." RECITALS (a) City and County have heretofore contracted for the performance of services by County, its officers, agents and employees, and will in the future extend, renew and amend such contracts, and enter into other and further contracts for the performance of services; and (b) Such contracts are agreements defined under §895 of the Government Code, and pursuant to §895.2 thereof joint.and several liability is imposed on the parties; and (c) Pursuant to §895.4 of the Government Code the parties as a part of the aforementioned agreements may provide for con- tribution or indemnification upon any liability arising out of the performance of the agreement; and (d) The County is willing to'assume liability and defend and hold the City harmless from any loss, cost or expense caused by the negligent or wrongful acts*or omissions of County officers, its agents and employees, occurring in the performance of said agreement; and ,,1576N-(10/77} S 11 76 I (e) The City is willing to assume liability and defend and 2 hold the County harmless from loss, cost or expenses caused by 3 the negligent or wrongful ac:t or omission of city officers, agents 4 or employees occurring in the performance of agreements between 5 the parties, except as hereinafter provided, 6 NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 7 1. The County will assume liability and defend and 8 I hold the City.harmless from loss, costs or expenses caused 9 by the negligent or wrongful act or omission of County 10 officers, agents and employees occurring in the performance Il of agreements between the parties hereto to the extent that 12 such liability is imposed on the City by the provisions of 13 §895.2 of the Government Code of the State of California. 14 2. The City will assume liability and defend and hold 15 the County harmless from loss, costs or expenses caused by, 16 the negligent or wrongful act or omission of City officers, 17 agents and employees occurring in the performance of agree- 18 ments between the parties hereto to the extent that such 19 liability is imposed on the County by the provisions of 20 §895.2 of the Government Code of the State of California. In 21 addition, when liability arises pursuant to §§830, et seq., 22 of the Government Code, by reason of a dangerous condition 1_3 of.public property of the City, the City shall assume 24 liability and defend and hold the County harmless from loss, 25 costs or expenses caused by the negligent or wrongful act or 26 omission of City officers, agents and employees, whether 27 28 -2- ' n F576N-(10/73)- 'S 1176 i arising in the performance of an agreement between the 2 parties hereto, with the exception that the County shall- 3 assume liability and defend and hold the City harmless from 4 loss, costs or expenses caused by the negligent or wrongful 5 act or omission of County officers, agents and employees, 6 occurring in the performance of any agreement between the 7 parties hereto where a duty is imposed on the County pursuant 8 to such agreement to provide maintenance or inspection 9 services pertaining to said property. Where such an agree- 10 went between a City and County provides that the County will 11 provide at least the same level of maintenance or inspection 12 services that the County provides to unincorporated areas, 13 the County will assume liability and defend and hold the City 14 harmless from loss, costs or expense caused by the negligent IS or wrongful act or omission of County officers, agents and ! 16 in failing to provide said services in accordance employees 17 with said agreement. i 18 3. 'The parties further agree that the Auditor- 19 Controller of the County shall establish a fund for the pay- 20 ment of losses for which the County may be liable under the 21 terms of this agreement, and the County agrees to maintain 22 the fund for the purpose of paying such losses which may 23 occur through its performance under agreements to provide 24 city services to the cities within the County. 25 26 27 28 -3- I S76N- 10 73 - 10 73 - , ( / ) ( / ) 5 11 -76 1 4. It is understood by the parties that the fund 2 referred to in paragraph 3 above is under the full control 3 of the Board of Supervisors and reappropriation of unen- 4 cumbered year-end balances in this fund is discretionary 5 with the Board of Supervisors. 6 5. The City agrees to make payment to the fund, and 7 the County agrees to require each city receiving services 8 under City Service Agreements to also contribute to the fund. 9 Payments towards the total amount of the fund shall be made 10 by the City in such amounts as may be established by the 11 Auditor-Controller according to the policy and procedure 12 established by the Board of Supervisors,.and in the same 13 ratio as the cost of services received by the City is to the 14 total cost to the County for its performance of City Service 15 Agreements during each fiscal year. In.the event that City 16 should elect to terminate its Service Agreement with the 17 County, its responsibility to contribute to the fund pursuant 13 to this agreement shall be limited to payment of amounts 19 which accrue prior to the effective date of said termination. 20 6. Each party agrees to fully cooperate with the other 21 and assist the other party hereto in all matters relating to losses covered by the terms of this agreement, and more 23 specifically but not being limited thereby, each party will: 24 (a) Give prompt notification of all occurrences 25 covered or likely to be covered by the terms hereof, 26 together with the particulars thereof to the other party 27 hereto; 28 -4- 'G'l 57'bN-(10/73)- S 11 76 2 3 4 5 6 7' 8 9 10 .11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 (b) If claim is made, or suit is brought against a party on occurrences covered or likely to be covered by the terms hereof, such party shall immediately forward every claim, demand, notice, summons or other process received by it to the other party hereto. 7. Should City agree, stipulate, consent to, or other- wise suffer the granting of any claim, the making of any judgment, order, or other award for damages or other relief against itself or any of its or the County's officers, agents, or employees in any proceeding or action authorized by law involving a matter arising out of the performance by the County of services affected hereby without the prior written consent thereto of the County, the City agrees to indemnify, hold harmless, and defend the County from any loss, cost or expense to it arising from such claim, judgm or other award irrespective of the legal basis upon which liability may be imposed by such action including liability of the County under the provisions of Section 895.2 of the Government Code. 8. Any party may at its own cost participate in the defense of any suit, or in the prosecution of any appeal affecting matters herein involved where the duty of defense or prosecution is imposed on the other party, and where the other party has consented thereto. 9. This agreement shall apply to and shall be deemed to be a part of all agreements now existing or hereafter -5- 'fi r576N 10 73 - / } 3 1176 I entered into, including amendments, renewals, or other 2 extensions thereof, wherein the City and County have con- 3 tracted under circumstances wherein the liability of the City 4 and County is joint and several under §895.2 of the Govern- 5 ment Code of the State of California. The provisions of this 6 agreement shall supersede and control over any other provi- 7 sions inconsistent therewith in any such contract, heretofore 8 or hereafter entered into by and between the parties hereto, 9 unless by specific reference therein this Assumption of 10 Liability Agreement is inapplicable. 11 10. On the effective date of this agreement that cer- 12 tain agreement entitled "Assumption of Liability Amendment," 13 -if any between the parties, is terminated. The effective 14 date of this agreement is the date executed by the parties, 15 but in no event sooner than 12:00 A.M., March 15, 1978, 16 unless the aforementioned Assumption of Liability Amendment 17 should be sooner terminated by the parties, in which event 18 the date of such termination shall be the effective date of 19 i this agreement. Upon the effective date of this agreement th 20 same shall continue during the term of any agreement for 1_1 services to which the same is applicable, unless the County 22 shall sooner elect.to terminate this agreement upon thirty 23 days written notice to the City. The County further agrees 24 that this agreement shall be only terminated upon the occur- 25 rence of the foregoing, or any one or more of the following '-6 events: 27 28 -6- AT676N-(10J7J)- 5 11 76 I (a) Failure of the City to cooperate with the 2 County as required by this agreement. 3 (b) Upon the City authorizing any judgment, order 4 or other award for damages without the consent of the 5 County in violation of the terms and provisions of this 6 agreement. 7 (c) Upon the County's election in its absolute 8 discretion to terminate this Assumption of Liability 9 Agreement as to all cities having such service agree- 10 ments with the County. II 11. To the extent that the County has agreed to indem- 12 nify, defend and waive harmless a city, its officers, agents 13 -and employees under this agreement, said obligation shall 14 continue to exist during the term of this agreement whether 15 or not there are sufficient funds for such indemnity, defense 16 or hold harmless in the fund established by the Auditor- 17 Controller. it is further understood that the County may 18 also utilize said fund for the purchase of commercial 19 k insurance and claims management services and for the payment 20 of other costs 'to cover the exposures of the County hereunder 21 in whole or in part. 22 12. On termination by the.City of service contract with 23 the County, or upon termination by the County for any cause, 24 the County shall continue to indemnify, defend and hold harm- 25 less the City for all claims and losses for which liability 26 is imposed on the County by the terms of this agreement, and 27 28 -7- 1 2 t 3 i 4 5 6 7 8 9 10 11 12 13 14 IS 16 17 18 19 20 21,. 22' 23.` I 24 25 26 27 28 A where arising out of the County's negligent or wrongful act or omission, prior to the effective date of said termination. Said City shall not be entitled to return of any considera- tion paid by it towards the fund established by the Auditor- Controller on the termination of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their duly authorized officers the day and year hereinafter set forth. . - CITY OF ~OS~M~~Cb ADOPTED BOARD OF SUPERVISORS COUNTY OF LOS A41G=S 109 DEC 2 71977 JAMES S. ?A17E EXECUTIVE OFFICEN ~Ulty e • COUNTY OF LOS ANGELES By airman, Boar o Supervisors ATTEST this '2'2- day of mAjQp,k 1978. JAMES S. MIZE, Executive Officer- Clerk of the Board of Supervisors By V eputy -8- ATTEST this 42C day of,_couzaA.~jx.. 1979. ..T<!e N'-(IU/73t - • n-76 I where arising out of the County's negligent or wrongful act 2 or omission, prior to the effective date of said termination. 3 Said City shall not be.entitled to return of any considera- 4 tion paid by it towards the fund established by the Auditor- s Controller on the termination of this agreement. 6 IN WITNESS WHEREOF, the parties hereto have.caused this 7 agreement to be executed by their duly authorized officers the 8 day and year hereinafter set forth. 9 CITY OF l 10 By II / 1 2 ATTEST this day of ~ 13 1975. 14 15 ity clei;CX 16 17 COUNTY OF LOS ANGELES 18 By 19 Chairman, Boar o Supervisors 20 ATTEST this day of , 21 1977. 22 JAMES S. MIZE, Executive Officer- Clerk of the Board of Supervisors 23 24 By Deputy 25 26 27 28 -8- CHIEF NDMINISTRATIVE CFIi'I ER COUNTY OF LOS ANGELES r s^^Nn 713 HALL OF ADMINISTRATION / LOS ANGELES. CALIFORNIA 90012 974-1101 HARRY L. HUFFORD CHIEF ADMINISTRATIVE OFFICER To: From: Subject: Q RO5 M DMEMBERS OF THE BOARD CITY - PETER F. SCHABARUM February 24, 1978 1978 CHAIRMAN ~a 2 a KENNETH HANN PM EDMUND D. EDELMAN JAMES A. HAYES 111213141516 BAXTER WARD Am ~ Ig~101111 City Managers and Administrators' ; Barry L. Hufford, CA; /41 ASSUMPTION OF LIABILITY AGREEMENT INFORMATIONAL MEMORANDUM An Assumption of Liability Agreement, which modifies all agreements whereby the County provides services 4-0 cities, was forwarded to you on January 16, 1978 with a request that an executed original be returned to my office by March 1, 1978. We have subsequently received requests for ,,arit:c i clarification as to the County's administration of the self- insurance program and tine reserve fund. The enclosed explanation is in response to those requests. If you have an,y questions concerning this matter, please contact Gerald Surfus, Risk Manager in my office, at 974-1158. HLH:DMC GMS:tm Enclosure SELF-INSURANCE PROGRAM FOR CONTRACT CITIES SERVICES LIABILITY The following information has been developed to more fully detail the County's intended procedures to administer the contract cities services liability self-insurance program approved by the Board of Supervisors on December 27, 1977. Objective. The cities and the County have the same objective: to provide the best possible services at the lowest possible costs. 10001c Self-Insurance Program Under the full self-insurance program approved by the Board of Supervisors on December 27, 1977 to take effect March 15, 1978, the County will continue to include the cost of insurance coverage in the existing rates charged to cities for contract services. The cost of self- insurance will, for the present and foreseeable future, be approximately two percent of the net billings to cities. Based on the previous loss experience of the contract services program, this two percent (approx- imately $603, 161) appears to be sufficient to cover the cost of claims, claims management, and provide an increase in the reserve fund of approximately $400, 000 each year. It is estimated that the reserve fund should reach approximately $2 million by Fiscal Year 1981-82, at which time adjustments in contributions can be considered. All of these estimates are predicated on the previous loss experience in the contract services program and our projection of future costs. Any radical changes--greater or lesser losses--could alter these estimates. The County has entered into this self-insurance program as a means of providing contract services at the lowest possible cost. In keeping with the Board instruction on December 27, 1977, we will consider other insurance coverage alternatives at any time we can reduce the cost of insurance in the contract services program and provide adequate liability protection for the County and the cities. We welcome the cities' contin- uous monitoring and advice on this self-insurance program. Administration . My letter to the Board of Supervisors dated December 13, 1977 was subsequently approved by the Board on December 27, 1977, The letter and this discussion more fully establish the premises on which the self-insurance program was developed and will be administered. As presently conceived, the Chief Administrative Office will monitor the entire program including the self-insurance reserve fund to ensure that the rate charged to cities for liability insurance is adequate to maintain the fund, including adequate reserves for claims and judgments. The County will perform the duties of Administrator under this program. In so doing, County or independent contractors, as may be required, will provide services in connection with the administration of said self- insurance system, including but not limited to the following: a, The determination of the initial and subsequent annual contributions of each city. b. The establishment of a self-insurance pool or reserve built up by contributions of cities. C. The examination of all claims involving liability within the coverage of the self-insurance pooling system. d. The investigation of such claims as in its judgment is deemed necessary. e. The provision of legal services to and legal defense for claims or lawsuits involving liability within the coverage of said system. f. The preparation of County warrants for the payment of claims. Such payments are to be processed as are other County warrants. g. The maintenance of a claim file on each reported claim which shall be available at all reasonable times for inspection by representatives of the cities. h. The assignment of work involved only to persons who are trained, experienced, and competent in the administration of claims or legal. defense. -3- • i. The consultation with and advisement to the cities on any matter arising in connection with the administration of this program. j. The malting and entering into contracts as necessary. k. The acquisition, holding, investment, and disposal of contributions of cities. 1. The purchase of commercial insurance which may be necessary and to perform such other services as are reasonably required to administer said self-insurance system and better carry out the purposes of this program. m. The provision of a management information system which will permit collecting and reporting statistical data from losses under the self-insurance program to permit continuation of a vigorous program to reduce and prevent losses. All information developed shall be available at all reasonable times for inspection by repre- sentatives of the cities. Filingof Claims--County Counsel All notification of occurrence and all liability claims arising from the contract cities program should be mailed or delivered to the Investigation Section, Office of County Counsel, Room 652, Hall of Administration, 500 West Temple Street, Los Angeles, California 90012. Service Covered Paragraph 9, Page 5 of the Assumption of Liability Agreement, dated the fourteenth day of November 1978 between the County of Los Angeles and various cities, refers to the following agreements from which self- insurance contributions are developed. Other service agreements may be added from time to time by ma'.ting specific reference therein to the Assumption.of Liability Agreement. General Services Agreement Weed Abatement Agreement Animal Control Services Agreement Animal Shelter Services Agreement Microfilm Storage Agreement -4- Building Inspection Agreement Industrial Waste Agreement Sewer Maintenance Agreement Tract and/or Parcel Map Check Agreement Health Services Agreement Street Maintenance Agreement Traffic Signal Maintenance Agreement Bridge Maintenance Agreement General Law Enforcement Agreement Regional Law Enforcement Agreement Helicopter Patrol and/or Observation Services Agreement Special Occasion Law Enforcement Agreement Transportation and Custody of Prisoners Agreement Accountability The Auditor-Controller's Office has established and will maintain an interest-earning self-insurance pool for contract city liability insurance. The involved County departments have appropriate account numbers for crediting funds for self-insurance included in the monthly and quarterly receipts from cities for contract services. The Auditor-Controller will annually develop the liability insurance costs for inclusion in the billing rates. Said rates shall be based upon the actual costs of services performed. The Auditor-Controller will also monitor the fund to ensure it is being reconciled and the revenue transfers are being made. Legal Constraints There are areas within the self-insurance program where we are obligated to reserve final authority. By law, the Board of Supervisors will need to annually reappropriate any unencumbered year-end balances in -this fund each year to continue the self-insurance program. If the entire contract services program were to be terminated, any amount remaining in the self-insurance reserve fund would be credited to the contracting cities after all claims and judgments were settled. It is not possible at this time to determine the manner of crediting cities, but Section 51350 of the Government Code provides that "the County shall charge the city only those additional costs which are incurred in providing the services to be contracted or authorized". r' -5- 0 The County reserves the right to establish the maximum amount of the reserve fund before adjustments in contributions are considered. In the event of a judgment in excess of the reserve fund, the County would be required to advance funds to pay claims. City Participation In approving the self-insurance program, the Board instructed "the Chief Administrative Office to continue to work with County Counsel and the cities to monitor the success of self-insurance and other coverage alternatives for this program and report to the Board on a periodic basis". It has been and will continue to be the policy of the County to confer with cities on matters of mutual interest, as evidenced by the recent development of this program in cooperation with the League of California Cities, California Contract Cities Association, Independent Cities of Los Angeles County, staff of the various cities, and city attorneys representing the various cities. The County invites continued participation by the cities in the operation of the self-insurance program. Revisions in the formal agreement will be considered during the course of the year to include points that are felt necessary. Count Officers and Employees Acting as City Officers and Fmplees Paragraph 2 of the proposed Assumption of Liability Agreement dated November 14, 1977 between the County of Los Angeles and various cities provides that "the City will assume liability and defend and hold the County harmless from loss, costs or expenses caused by the negligent or wrongful act or omission of City officers, agents and employees occurring in the performance of agreements between the parties hereto". Various existing service agreements between the County and the cities contain the following or similar phrase: "For the purpose of performing such services and functions, and for the purpose of giving official status to the performance .hereof, every County officer and employee engaged in performing any such service or 'unction shall be deemed to be an officer or employee of said City while performing service for the City' within the scope of this agreement." It is the intent of the Assumption of Liability Agreement that the County will assume liability and defend and hold the City harmless from loss, costs or expenses caused by the negligent or wrongful act or omission of County officers, agents and employees, as described in Paragraph 1 of the Assumption of Liability Agreement, at all times that any County I • l -6- officer or employee is performing a service for the City under a County- City service agreement and may by virtue of that agreement be deemed to be an officer or employee of said city. Term of Program The term of this program shall be continuous, commencing on March 15, 1978. On termination, a final accounting will be made of the compensation payable to the County and any balance due must be paid promptly. Any claim(s) or loss(es) pending on the date of termination will be handled and adjusted to conclusion and paid for by the County. l 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 rI L ASSUMPTION OF LIABILITY AGREEMENT 320'76 THIS AGREEMENT, dated for reference purposes only, on the 14th day of November, 1977, is made and entered into between the County of Los Angeles, sometimes hereinafter referred to as the "County," and the City of Rosemead, sometimes hereinafter referred to as the "City," RECITALS (a) City and County have heretofore contracted for the performance of services by County, its officers, agents and employees, and will in the future extend, renew and amend such contracts, and enter into other and further contracts for the performance of services; and (b) Such contracts are agreements defined under §895 of the Government Code, and pursuant to §895.2 thereof joint and several liability is imposed on the parties; and (c) Pursuant to §895.4 of the Government Code the parties as a part of the aforementioned agreements may provide for con- tribution or indemnification upon any liability arising out of the performance of the agreement; and (d) The County is willing to assume.liability.and defend and hold the City harmless from any loss, cost or expense caused by the negligent or wrongful acts or omissions of County officers, its agents and employees, occurring in the performance of-said agreement; and 10 77 76N T ` • h / S, S /1 76 1 (e) The City is willing to assume liability and defend and 2 hold the County harmless from loss, cost or expenses caused by 3 the negligent or wrongful act or omission of city officers, agents 4 or employees occurring in the performance of agreements between 5 the parties, except as hereinafter provided, 6 NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 7 1. The County will assume liability and defend and 8 hold the City harmless from loss, costs or expenses caused 9 by the negligent or wrongful act or omission of County 10 officers, agents and employees occurring in the performance 11 of agreements between the parties hereto to the extent that 12 such liability is imposed on the City by the provisions of 13 §895.2 of the Government Code of the State of California. _ 14 The City will assume'.liability and defend and hold 15 the County harmless from loss, costs or expenses caused by 16 the negligent or wrongful act or omission of City officers, 17 agents and employees occurring in the performance of agree- 18 ments between the parties hereto to the extent that such. 19 liability is imposed on the County by the provisions of 20 §895.2 of the Government Code of the State of California. In 21 addition, when liability arises pursuant to §§830, et seq., 22 of the Government Code, by reason of a dangerous condition 23 of public property of.the City, the City shall assume 24 liability and defend and hold the County harmless from.loss, 25 costs-or expenses caused by the negligent or wrongful act or 26 omission of City officers, agents and employees, whether 27 28 -2- 16T576N-(10/73)- / Is 1 ;'76 I arising in the performance of an agreement between the. 2 parties hereto, with the exception that the County shall 3 assume liability and defend and hold the City harmless from 4 loss, costs or expenses caused by the negligent or wrongful 5 act or omission of County officers, agents and employees, 6 occurring in the performance of any agreement between the 7 parties hereto where a duty is imposed on the County pursuant 8 to such agreement to provide maintenance or inspection 9 services pertaining to said property. Where such an agree- 10 ment between a City and County provides that the County will .II provide at least the same level of maintenance or inspection 12 services that the County provides to unincorporated areas, 13 -the County will assume liability and defend and hold the City 14 harmless from loss, costs. or expense caused-by the negligent 15 or wrongful act or omission of County officers, agents and 16 employees in failing to provide said services in accordance 17 with said agreement. 18 3. The parties further agree that the Auditor 19 Controller of the County shall establish a fund for the pay- 20 ment of losses for which the County may be liable under the 21 terms of this agreement, and the County agrees to maintain 22 the fund for the purpose of paying such losses which may 23 occur through its performance under agreements to provide 24 city services to.the cities within the County. 25 26 27 28 -3- :r.r576N-oo/73)- - • 'S 1176 4. It is understood by the parties that the fund 2 3 4 5 6 7 8 9 to 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 referred to in paragraph 3 above is under -the full control of the Board of Supervisors and reappropriation of unen- cumbered year-end balances in this fund is discretionary with the Board of Supervisors. 5. The City agrees to make payment to the fund, and the County agrees to require each,city receiving services under City Service Agreements to also contribute to the fund. Payments towards the total amount of the fund shall be made by the City in such amounts as may be established by the Auditor-Controller according to the policy and procedure established by the Board of Supervisors, and-in the same ratio as the cost of services received by the City is to the total cost to the County for its performance of City Service Agreements during each fiscal year. In the,event that City should elect to terminate its Service Agreement with the County, its responsibility to contribute to the fund pursuant to this agreement shall be limited to payment of amounts which accrue prior to the effective date of said termination. 6. Each party agrees to fully cooperate with the other and assist the other party hereto in all matters relating to losses covered by the terms of this agreement, and more specifically but not being limited thereby, each party will: (a) Give prompt notification of all occurrences covered or likely to be covered by the terms hereof, together with the particulars thereof to the other party hereto; -4- 0 73 76N • • -Q 1 76 T5 _ PS 11.76. 1 (b) If claim is made, or suit is brought against 2 a party on occurrences covered or likely to be covered J 3 by the terms hereof, such party shall immediately i 4 forward every claim, demand, notice, summons or other 5 process received by it to the other party hereto. I 6 7. Should City agree, stipulate, consent to, or other- 7 wise suffer the granting of any claim, the making of any 8 judgment, order, or other award for damages or other relief 9 against itself or any of its or the County's officers, 10 agents, or employees in any proceeding or action authorized 11 by law involving a matter arising out of the performance by i 12 the County of services affected hereby without the prior 13 written consent thereto of the County, the City agrees to. .14 indemnify,"hold harmless, and defend the County from any Is loss, cost or expense to it arising from such claim, judgment„ 16 or other award irrespective of the legal basis upon which 17 I liability may be imposed by such action including liability 18 i of the County under the provisions of Section 8954 of the I 19 Government Code. 20 B. Any party may at its own cost participate in the 21 defense of any suit, or in the prosecution of any appeal I 22 affecting matters herein involved where the duty of defense 23 or prosecution is imposed on the other party, and where the 24 other party has consented thereto. 25 9. This agreement shall apply to and shall be deemed 26 to be a part of all agreements now existing or hereafter ! 27 28 I _5_ 10 77 N 1 • • / ( 76TM I P, 1176 1 entered into, including amendments, renewals, or other 2 extensions thereof, wherein the City and..County have con- 3 tracted under circumstances wherein the liability of the Cityj 4 and County is joint and several under §895.2 of the Govern- 5 ment Code of the State of California. The provisions of this. 6 agreement shall supersede and control over any other provi- j i 7 sions inconsistent therewith in any such contract, heretofore! I. 8 or hereafter entered into by and between the parties hereto, ! 9 unless by specific reference therein this Assumption.of 10 Liability Agreement is inapplicable. 11 10. On the effective date of this agreement that cer- 12 tain agreement entitled "Assumption of Liability Amendment," 13 J if any between the parties, is terminated. The effective i 14 date of this agreement is the date executed by the parties, 15 r but in no event sooner than 12:00 A.M., March 15, 1978, i ` 16 unless the aforementioned Assumption of Liability Amendment 17 should be sooner terminated by.the parties, in which event 18 the date of such termination shall be the effective date of 19 this agreement. Upon the effective date of this agreement the 20 same shall continue during the term of any agreement for 21 services to which the same is applicable, unless the County 22 shall sooner elect to terminate this agreement upon thirty 23 days written notice to the City. The County further agrees 24 that this agreement shall be only terminated upon the occur- 25 rence of the foregoing, or any one.or more of the following 26 events: 27 28 76YMN-(10/73}- PS 1176 1 2 3 4 5 6 7 8 .9. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 (a) Failure of the City to cooperate with the County as required by this agreement-. (b) Upon the City authorizing any judgment, order or other award for damages without the consent of the County in violation of the terms and provisions of this agreement. (c) Upon the County's. election in its absolute discretion to terminate this Assumption of Liability Agreement as to all cities having such service agree- ments with the Countyu 11. To the extent that the County has agreed to indem- nify, defend and waive harmless a city, its officers, agents and employees under this agreement, said obligation shall continue to exist during the term..of this agreement whether or not there are sufficient funds for such indemnity, defense! or hold harmless in the fund established by the Auditor- Controller. It is further understood that the County may also utilize said fund for the purchase of commercial insurance and claims management services and for the payment i of other costs to cover the exposures of the County hereunder in whole or in part. 12. On termination by the City of service contract with the County, or upon termination by the County for any cause, the County shall continue to'indemnify, defend and hold harm- less the City for all claims and losses for which liability is imposed on the County by the terms of this agreement, and -7- ti t3)- 2 r r ' 3 F i f 4 5 6 7 8 9 10 11 12 13 14 IS 16 17 18 19 20 21., : 22 23` 24 25 26 27 28 where arising out of the County's negligent or wrongful act or omission, prior to the effective date of said termination. Said City shall not be entitled to return of any considera- tion paid by it towards the fund established by the Auditor- Controller on the termination of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their duly authorized officers the day and year hereinafter set forth. CITY OF ~OS,` NI-EA 7) B_ ayor.; - ATTEST this day of-1 , 1979. ADOPTED BOARD OF Sl1PERZORS COUNTY OF LOS VI =S '109 DEC 2 71977 jwES S. F.417E EXECUINE OFFICER u -amity e COUNTY OF LOS ANGELES Chairman, Boar o Supervisors ATTEST this 22 day of MAIQP,IA , 197%. JAMES S. MIZE, Executive Officer- Clerk of the Board of Supervisors By ~1A 6eputy -8- s Osemead TO: CITY COUNCIL FROM: CITY MANAGER DATE: FEBRUARY 21, RE: ASSUMPTION OF 1978 LIABILITY AGREEMENT WITH THE COUNTY OF LOS ANGELES We have received notice from the County of Los Angeles that they are completing the conversion to a self-insurance program, and are terminating the existing Assumption of Liability Amendment for coverage of contract services. Attached for your review is the new Assumption of Liability Agreement, which eliminates reference to commercial insurance. We have been advised by the Special Services Division, which administers contract services, that contract costs will not increase as -a result of this change to a self-insurance program. Contract service costs can increase if loss experience of the County exceeds the accumulated funds forthis protection. The California Contract Cities Association, in cooperation with the Joint Powers Insurance Authority, have participated in the development of the Agreement, and it is recommended that the Council approve the Assumption of Liability Agreement and authorize the Mayor to execute. Respectfully, FR NK G. TRi encl. FGT: jg MAYOR: MARVIN J. CICHY MAYOR PRO TEM: JAY T. IMPERIAL COUNCIL MEMBERS: HERBERT R. HUNTER GARY A. TAYLOR ROBERTA V. TRUJILLO ka s 1„0.. 6 CHIEF ADN41NISTRATIVE OFFICER COLINTY OF Los ANGELES 713 HALL OF ADMINISTRATION ; LOS ANGELES. CALIFORNIA 90012 974.1101 HARRY L HUFFORD CIUEF ADMINISTRATIVE OFFICER January 16, 197 E C E I V E'~ CITE, OF ROSEMEAD To: City Managers and Administrators From: Chapman L. Bone, Chief CLS Special Services Division JAN 18 1978 PM nm 7igi9i10i11i12i1i2Q i415i MEMBERS OF THE BOARD PETER F. SCHABARUM CHAIRMAN KENNETh HANN EDMUND D. EDUIJAN JAMES A HAYES BAXTER WARD Subject: SELF-INSURANCE FOR LIABILITY--CONTRACT PROGRAM--AND NOTICE OF TERMINATION OF EXISTING "ASSUMPTION OF LIABILITY AMENDMENT" The Board of Supervisors has approved self-insurance for County liability involved in the provision of services to cities by contract. The enclosed Board letter explains in detail this new self-insurance program. Government Code Section 895.2 states that "whenever any public entities enter into an agreement, they are jointly and severally liable upon any liability which is imposed . . The existing "Assumption of Liability Amendment" to all agreements provided that the County would assume this liability as long as the County had insurance coverage to indemnify it and hold it harmless from the assumed liability or until 30-days written notice of termination of the Amendment.. On December 27, 1977, the Board of Supervisors approved the termination of the original "Assumption of Liability Amendment" as of March 14, 1978, when the current liability insurance policy expires; and all cities are hereby notified of the termination as called for in the "Amendment". A new "Assumption of Liability Agreement" incorporating the provisions of the self-insurance program is enclosed for approval by your City Council. Please return an executed original to this office by March 1, 1978. As soon as the Chairman of the Board of Supervisors executes the Agreement on behalf of the County, we will return a conformed copy for your records. Since the County has one or more service agreements with every city in Los Angeles County, this self-insurance program and the new "Assumption of Liability Agreement" were developed in cooperation with representatives of the League of California Cities' Los Angeles County Division, Independent Cities of Los Angeles County, and the California Contract Cities Association. We also wish to acknowledge their.time and effort at this time. If you have any questions concerning the self-insurance program or the new "Assumption of Liability Agreement", you may call Rex Vance at 974-1355. CLB:WRV:pls Enclosures cc: Auditor-Controller County Counsel Concerned County Departments C1IlI 1 iDi~I7.N1S'1'-[tt1 L iVL AFTCER COUNTY OF LOS ANG171IsS 713 HALL OF AOMINISTRAII ON / LOS ANGELES. CALIFORNIA 90012 f 974 _ 110, RECEIVED HARRY L+HUFFORD CITY. OF ROSEMEAO. CHIEF ADMINISTRATIVE OFFICER JAN 18 1978 Wemben 13, 1977 ~i Am DOPUD 7ig191l01ll112111213141516 BOARD OF SBPERV(SORS Q GOUNLY OE LOS ANGELES HONORABLE BOARD OF SUPERVISORS 109, County of Los Angeles 383 hall of Administration MEMBERS OF THE BOARD PETER F. SCHADAR'JM CHAIRMAFI KENNETH; HAIL'! EDMUND D: EDELQAN JAMES A:HiAYES BAXTER WARD DEC 2 71977 Gentlemen: JAMES S. MIZE EXECUTIVE OFFICEF1 CONTRACT CITIES LIABILITY INSURANCE PROGRAM ii , f The County insures for Contract Cities services public liability to protect the County and the contracting cities from major losses resulting from litigation that could occur as a result of the provision by the County of various services to the, contracting cities. This insurance is presently obtained from a cominer- cial underwriting company, Central National Insurance Company, with a per occurrence limii of $5. 0 million, and a per occurrence deductible of $1. 0 million. The current policy period ends on Nlarch 14, 1978. The contracting cities pay the full cost for this insurance. They also contribute to a fund to finance losses which occur within the deductible amount, as well as for claims administration and handling. All costs are included in the billing rates for County services. Cost for commercial insurance is increasing in price although losses in this program continue to he moderate. The currl=nt method of insuring for this risk is not cost effective. We have determined that the County can establish a full self-insurance program for Contract Cities services liability, at the same rate currently being charged for the insurance program and we are recommending this program to your Board and the contracting cities. Feasibility Study of Self-Insurance In approving the purchase of insurance for this program on March 22, 1977 your Board instructed this office to work with County Counsel and represen- tatives of the contracting cities to explore the feasibility of fully self-insuring in this area. Board of Supervisors • -2- December 13, 1977 We have developed a plan to provide for full self-insurance and to finance these risks from contributions paid annually by the contracting cities in their service rates. We feel this program will be cost effective and more economical than purchased insurance over the long run. County Counsel has determined that there is no legal restriction against the County self-insuring its liability for services rendered to contracting cities. A management information system will continue to be purchased for collecting and reporting the statistical data from losses under this program. The Auditor-Controller has established a liability self-insurance fund for the contract cities program and has proceeded to transfer revenue from the contracting cities to this fund to pay for insurance premiums, claims administration and self-insurance losses. We are recommending five additional budgeted positions in the County Counsel's office for the investigation of claims filed, and for handling litigation resulting from the claims. The cost of these positions will be fully offset through charges to the contracting cities. This plan builds upon the pilot program of self-insurance approved by the Board and contracting cities in January 1975 when a $100, 000 annual deductible was authorized. A fund was established into which contributions from the cities are deposited. In March 1976 the annual deductible was raised to $1. 0 million per occurrence. Annual payments into the fund will total $603, 161 in the first year of proposed 100% self-insurance. The fund is expected to increase each year through the balance of annual contributions, less claims paid out and administrative costs. We plan to accumulate a fund of at least $2. 0 million, but not less than the estimated value of outstanding claims using insurance adjusting standards, before the contracting cities contributions are reduced. The County Counsel has determined that a continuing "reserve fund" as such cannot legally be established. Your Board will need to reappropriate each year any unencumbered year-end balances in this fund to continue the self-- insurance program. Board of Supervisors -3- December 13, 1977 The Auditor-Controller has approved a cash flow analysis which projects fund contributions, expenditures and accumulated reserve for the next five years, Attachment IV. While it is possible for a loss to occur which is greater than the fund's capacity, it is not probable. In the unlikely event that losses exceed accumulated funds, the County General Fund would have to advance funds and recover costs in future rate adjustments. This, of course, puts an increased importance on County loss control and management of risk of County operations. Loss Experience Since the Board approved partial self-insurance for this program in January 1975, a 81.0 million per occurrence deductible, we have made a careful analysis of all losses in the program. At this time, the projected losses are well within planned program capability. Our analysis shows that the normal expected losses each year for Contract Cities services liability are approx- imately $250, 000. Also, it can be expected that every third year, an additional loss of approximately $150, 000 occurs. The largest single loss in the last two years has been $60, 000. As of January 1, 1978 the outstanding claims are estimated to total $495, 000 and the fund will have a balance of $590, 000. Exhibit I shows a history of coverage and premium costs for this program. Exhibit II is a history of total program costs. Exhibit III shows our loss record. Exhibit IV is a cash flow analysis prepared by the Auditor-Controller. Exhibit V presents the positions and other resources required by County Counsel for the balance of the current fiscal year and the annualized funding requirements for the administration of this program. Contract Language Change In 1964, when the County obtained insurance for contracting cities services liability, it became necessary to amend all existing service agreements to provide for the County to assume liability and to indemnify the cities against any loss arising from the County's performance of services to the extent of such insurance coverage. In order to initiate a self-insurance program, it will be necessary to terminate the original "Assumption of Liability" *provisions and replace them with a new Assumption of Liability agreement which eliminates the reference to commercial insurance. This document is attached as Exhibit Vl. The County Counsel and my office have worked with a group of contracting cities' attorneys to provide acceptable language in the Service Agreements to permit implementation of this program on March 15, 1978.and they concur Board of Supervisors -4- December 13, 1977 with the general concepts of the self-insurance program as recommended in this report. The Risk Management Advisory Committee has reviewed this program plan and also concurs with it. IT IS, THEREFORE, RECOMMENDED THAT THE BOARD: 1. Approve the Liability Self-Insurance Program for contracting cities as discussed above. 2. Approve the termination of the original 1964 "Assumption of Liability Amendment" and instruct the Chairman to execute the new agreement on behalf of the County with each of the involved city contracts. 3. Approve the additional positions as shown on Exhibit V subject to allocation by the Civil Service Commission. 4. Authorize the Auditor-Controller to pay the losses, claims adjust- ment expenses, and, costs of services incurred in the administration of this program, as approved by the County Counsel and the Chief Administrative Office. 5. Instruct the Chief Administrative Office to continue to work with County Counsel and the cities to monitor the success as self-insurance and other coverage alternatives for this program and report to the Board on a periodic basis. Very truly yours, .n HARRY L. HUF FORD Chief Administrative Officer I-ILH:DMC GMS:tm Attachments cc: Each Supervisor County Counsel Auditor-Controller Risk Management Advisory Committee League of California Cities California Contract Cities Association Independent Cities of Los Angeles Marsh & !McLennan, Inc. c7 41 --a 00 ~ ,p w m H M x9 n d9 l7 9 n n n 0 (D S W (D n z z C CD Fj G ❑ I _ m n Qa CD c n Qa (D W aq (D P n Y• s] O Y C-0 0 ~ `N ° m m w O Cs -co b (D N H H H (D CJ1 L7 O m ((D fn O. H O Cl O O O (D x CD o cl Y• i C 'O O O O O O O O O O O O O O O m ~ o Y o d x o Q y n n om' O ~ ~ ( n QOQ O aY,' H H F3 O m A] (D Fl, O -GG ffl y] fig ff] f!] 7 O cn cn n c c n cn cn a O 7~ yy N H H H H N e-i Fl Fl p C rt (D E~ SD w d O H H n(D (D H rn O O' G yC) O ( •O O. 'T ~C 't ,..F O D ( OO ( D 94 N °G N O t7 N SD O iD O O (D O O SD C) (D 11 w N O N UQ t:Y O i O O Sn Y, O. (D .b < w w G] :3• m (D N 1 O O . a ~ O• C' r .5 Fl . 'LY R O T7 O ~ • "S O n Y• O Y• H I~ ~ (D (D (D P) M O O N O w a m H H m a • N W a (D H n y r (D Y yCD h (D ID N ti3 y hJ O (n U l 'Y m W G r N a N CD J O 3• "f3 W . `t (D U: h U rho- d h u (D (D O C" m Oi M N (D 91 n O > u) 1-4 N r (D CD m a p (D (D ~ O C3,-(D * to F a CJ D co r+ (D ' ID (D 0 O M O I ~ ~ L O y 0 ` O m m s . O . O O 0 O O lz~ '(D -Z cn CAD c:) O cn ~ ~ O ,a, I la ~ ~ o o zy ~ ~ n o ' o o ~ ~ y w o O O o O 0 O o y r ~ Cn N ;O . ' O ID b 'O co co N CD m ~l 07 Y' r N O r [S O aOo 0 o y (D O p O O 0 1 ,D y P1 t n Lr O r w UJ .J O N co W O - N cn O 10 O O N CD W O) O O i 1 O 'l O C ~:s O O O O O N ,I Vt UI O O (D O O O O O O ` (D p X r N O O O O O U•, r H • 10 ~ acoco ~5(D Otl 00 O (D f) 0 >r L' ~ y ~ 1-~ (D Y• b N W {f3 J N W W p N N r ~i 'O O O ` • ' (D O. r to rn. O O r O d O ~5 0, 0 n Y. m yq n )I O I r., r I/1 O ID O O O i O O O P~ C Ut U (D :Y m O p i O v O r- N co O I c (D r p W J O Y m Q 1 (D N C O m y n O h C) ca D l p 0 (D ~ZI C A W N 7 W w o O O. J c O W 1 I I C r (D O. O N O J O 7 (D O N O co N P (D co Y• co (D m 0 t7i x to H EXHIBIT III Loss History (Contract Cities Services) Amount # Reported H Open # Closed Paid Reserved Total 1974-75 74 37 37 $102,000 $169,500 $271,700 1975-76 (est.) 69 41 28 50,000 150,000 200,000 1976-77 146 133 13 14,675 360,301 374,977 1977-78(est.) 36 36 0 274,700 274,70dA) (A) Actual experience for 3 months projected to 12 months. GAMS:tm 10/4/77 EXHIBIT IV CHIEF ADI\'IINI5• IZATIVE OFFICE ~K MANAGE:IENT CONTRACT CITY LABILITY INSURANCE PROJECTED CASH FLOW: 1975-76 1981-82 1975-76 .1976-77 1977-78 1978-79 1979-80 1980-81 1931-82 Premium $190,080 Add: Prior Year Balance $ 62,879 $(-16,123) $331,498 $784,243 $1,188,707 $1,572,439. $1,919,195 Losses: $300,000 Payout-Year 1 @ 7 7,614 21,000 21,000 21,000 21,000 21,000 Year 2 @ 12 10,426 36,000 36,000 36,000 36,000 36,000 Year 3 @ 10 30,000 30,000 30,000 30,000 30,000 Year 4 @ 13 _ 39,000 39,000 39,000 39,000 Year 5 @ 15 45,000 45,000 45,000 Year 6 @ 20 60,000 60,000 Year 7 @ 12 36,000 Adjuster Fees 7,500 15,000 15,000 Fund management Costs 11,500 11,500 11,500 - 11,500 11,500 11,500 Legal Defense & C laims Admin. 56,806 108,251 108,251 108,251 108,251 Excess Coverage 150, Ono 211,000 Subtotal $410,459 $271,663 $161,192 $538,492 $897,956 $1,221,638 $1,532,444 Revenues 394,336 603,161 603,161 603,161 603,161 •603,161 603,161 Add: Interest @ G% on Beginning Fund Balance 19,890 47, 054 71,322 94,346 115,151 Cumulative Total $(-16,123) $331,498 $784,243 $1,188,707 $L,572;439 $1,919,195(9 k2,250,75G Assumptions: 1. Fund is on a cash basis. ' 2, Fund begun on 7/1/75. . 3, Prior period (prior, to 1975-76) cost of $62, 879 must be repaid to General Fund. 4, Revenues from cities continue (in years subsequent to 1975-76) at $G03, 1G1 per, year. 5. Interest is earned at rate of G% per year on the prior year ending balance. 6. Contract City program is completely self-insured starting in 1977-78. (If so, may be a partial refund of the $211, 000 premium paid in 1976-77 for 3/15/77 through 3/14/78.) 7, Adjuster , fee remains at $1 000/ year, ihrough June 50, 1 277. 8. County fund management cost remain at $11, 500 per year, 9. Estimated annual liabilities are $300,000 paid out at the rates of:'(remaining 11% to be paid after year 7 until all claims are paid) Year Rate 1 7% 2 12 3 10 4 13 5 15 6 20 7 12 89%< Note A: It is anticipated that when balance exceeds $2, 0 million, adjustments in contributions will be considered. GMS:tm 12/7/77 rn H z a~ H .'7 d w w 6 H W U ~z H Fi F4 V) ~ I W w a W U rn W H H H U H U 0 0 U 4-1 tr) 41 7 O co C1 H H i 0 H 00 ~ 00 H ~O v1 ~O 4 4 -4 Ln ~ .0 C~ O 00 ~o u'1 rn r!1 N ~o .-1 06, CT 0~ O r-1 N N N I 1 O Cl) Cl) 0 f, C IT m o0 I 00 00 1 '1'N HN Cl, H 00 N O O O H r-1 r-1 00 r- ON v a O h to G~ n It ~o m m m ~o C) .D .o N O I- 00 m 1/1 --t 00 - N 00 O O r-♦ 00 LI) m It Ln u'1 r-I ~o 00 00 1 O H u7 O 0 N H It N ~ ~ 1 N H r : t ' ul In ul yr ur yr yr yr v~ !a C C h M C O i4-) rn O W H H H N w 0 01 z, In ~ ~ 1n H O 0D '1 ,l H O I > co u) 11 co C m N 7 •ri O n. T UH TA YI H H co r-4 iJ P " C) co L p ca O ~o U •ri n u h0 0 b c~ Ul C) C) X41 a .a 4J y H Si 4 co O. 7 00 41 JI AHaH H rn 1J .r.l W C) C 0 PCI rn CD Q) to 4 C [7 •ri ,i 4 CO w 1.1 O z In LI -H W C) C a~ C) C) O ,4 0. E W u! o ~ "4 ro r-I Q1 w H :n 1-I O H cn v LI .ri U E O la w Cl 7 C a) R.' m H 0) ~ a O 41 41 rn O U u C C 0 U J..1 0 z r, C) H N CO Z N UH CHIEFODMINISTRATIVE COFICER ;COUNTY OF LOS ANGELES 71384LLOFADMINISTRATION / L05 ANGELES. CALIFORNIA 90012 974.1101 n :1 ~1 rr March 18, 1976 HARRY L. HUFFORD MEMBERS OF THE BOARD CHIEF ADMINISTRATIVE OFFICER BAXTER WARD CHAIRMAN PETER F. SCHABARUM To: City Managers and Administrators KENNETH HAHN EDMUND D. EDELMAN I n JAMES A. HAYES From: Chapman L. Bone, Chief Special Services Division Subject: INSURANCE CARRIER'S NOTICE TO COUNTY OF CANCELLATION OF CONTRACT CITIES' L,BILITY INSURANCE The County of Los Angeles just recently received notice from its insurance carrier that liability insurance covering services performed by the County for other public entities by contractual agreements is to be cancelled effective March 15, 1976. It had been anticipated that the current policy would remain in effect at least through June 30, 1976. Reluctantly, the insurance carrier has agreed to a 30-day extension of the cancellation date until April 15, 1976, and has proposed a coverage Dian estimated to increase cost $384,000 (104 perceut) per year. After review, the Chief Administrative Officer is recommending, with the concurrence of the Auditor-Controller, County Counsel, and Risk Management Advisory Committee, that the Board of Supervisors approve an alternate program estimated to cost $48,000 less than the insurance carrier's proposal and which we believe will also provide a more stable coverage program. Attached is a copy of the Chief Administrative Officer's recommendations to the Board of Supervisors scheduled for their consideration at their regular meeting to be held March 23, 1976. I believe it is sufficiently explanatory to respond to most of your concerns; however, if you would like additional information, contact me at 974-1331 or Gerald Surfus at 974-1158. Although we have reviewed this problem with the staff of the Los Angeles County Division of the League of Cities, I re~ret that the critical time li~tions imposed by the carrier s cancellation did no 1~"t-reeview with individual cities. 101 ~G -c9 CLB:pls Attachment V •pF. 4~ CHIEF&DNIINISTRATIVE (*FICER COUNTY OF LOS ANGELES 713 HALL OF ADMINISTRATION / LOS ANGELES, CALIFORNIA 90012 s nos .4<f 974-1101 yoPf oL~Y HARRY L. HUFFORD CHIEF ADMINISTRATIVE OFFICER March 16, 1976 HONORABLE BOARD OF SUPERVISORS County of Los Angeles 383 Hall of Administration Gentlemen: CONTRACT CITIES LIABILITY INSURANCE PROGRAM MEMBERS OF THE BOARD BAXTER WARD CHAIRMAN PETER F. SCHABARUM KENNETH HAHN EDMUND D. EDELMAN JAMES A. HAYES On September 16, 1975, the Board approved placing the Contract Cities Insurance coverage with Central National Insurance Company at an annual premium of $270,000 with an annual deductible of $100,000 and coverage to $5 million. We have received a 30-day Notice of Intent to Cancel effective March 15, Therefore, we are now recommending a.revised program of commercial coverage to $5 million with a $1 million deductible, including professional claims administration and legal services, which is more in keeping with other elements of the County's insurance program. History and Market Since receipt of the cancellation notice, we have worked with our broker, Marsh & McLennan, to: (a) negotiate an extension of present coverage; (b) survey the market for alternate coverage; and (c) review self-insurance alternatives. Our carrier has reluctantly granted us an extension of not-to exceed 30 days. Despite widespread contacts with both domestic and Lloyd's carriers, we have been unable to obtain any alternative carrier. Central National Insurance has offered to continue the policy if we increase the annual premium by $180,000 (to a total of $450,000) and change the deductible from $100,000 aggregate per year to $100,000 per occurrence. The deductible change is estimated i6aaLease our cost of losses by $204,000 per year. This is a 'An' al program cost increase of $384,000 or 104% (see Exhibit M` to total I) . of Board of Supervis • =2- March 16, 1976 The difficulty in placing this type of insurance and the rapidly rising costs are typical of the governmental liability insurance market. Many carriers are simply refusing to write such coverage and others are quoting as much as 300% rate increases and insist- ing upon greater deductibles. The problem of this program are further shown by the fact that this is the third time since July 1974--less than two years--that this policy has had to be renegotiated. In each instance additional premium or less coverage resulted because of the deteriorating insurance market (see Exhibit II). We are continuing to negotiate for improvements in this program even as we recommend the following program. Recommended Program In view of the adverse insurance market, we are recommending commercial coverage to a total of $5 million with a $1 million occurrence deductible and professional claims administration and legal services. We recommend this plan because: Our loss estimates indicate it is approximately $48,000 per year less expensive than the only other commercial coverage available (see Exhibit I). It is in keeping with the County's increased reliance on larger deductibles. - Same limits now used in the County Auto Liability program. - County fully self-insures similar activities outside of contract cities. It provides the Contract City program with 'a stable long- term coverage less dependent on what appears to be a rapidly worsening insurance market. The present Contract City rate system provides a loss leveling mechanism to equitably spread and fully recover all costs and losses of the program. However,.there is the possibility of an early and large loss in any such program which would take several years to. fully recover. Board of Supervisors =3- March 16, 1976 League of California Cities We have reviewed our problem and recommended course of action with the staff of the League of California Cities, Los Angeles County Division, (both "Contract" and "Independent" Cities are served under the program). The critical time limitations imposed by the carrier's 30-day cancellation did not permit review with individual cities. In addition, the present Contract City agreements limit the County' liability to the original insurance contract (in force at the time these sections were written--1964) or its replacement or,renewal. The County Counsel recommends that these agreements be updated to clearly define the respective rights, duties and liabilities of the cities and County under the recommended program. Therefore, with the concurrence of the Auditor-Controller, the County Counsel and the Risk Management Advisory Committee, IT IS RECOMMENDED THAT THE BOARD: Approve the Contract City Liability Insurance Program as discussed above. Approve the purchase of $5 million insurance with a $1 million per year occurrence deductible, as negotiated, at a price estimated to be $150,000 annually,but not to exceed $200,000 annually and continue to negotiate improve- ments in this program as available in the insurance market. 3. Instruct the Auditor-Controller to include in the Contract Cities' rates for 1976-77 the ppro rata share of the revised insurance program for 1975-76 and the cost of the program for 1976-77. , 4. Authorize the Auditor-Controller to pay the negotiated premiums, deductible losses, claims adjustment expenses and costs of legal services incurred in the administration of this program, as approved by the County Counsel and CAO. Instruct the County Counsel to prepare appropriate amend- ments to the indemnification section of the Contract City agreements defining the limits of the County's liability; instruct the CAO to arrange city execution of these amend- ments and instruct the Chairman to sign. Vtrul y yours, HLH:GMS Y HUFFAD Ve RBD :sme Chief Administra fficer Attachment - cc: Each Supervisor County Counsel Auditor-Controller Risk Management Advisory Committee League of California Cities Marsh & McLennan EXHIBIT I Cost Comparison (Annualized) Insurance. ; Cancelled Company Recommend Element Program Proposal Program Excess Insurance $270,000 $150,000 $150,000 (est.) Primary Layer incl. .3001000. Claim Adjustment Expense incl. incl. 20,000 Deductible Losses (estimated) 100,000 max. 304,000 536,000 Total $370,000 $754,000 $706,000 E C] EXHIBIT II History of County-City Insurance Program Period Carrier 7-1-72/73 CNA 7-1-73/74 CNA 7-1-74 to Aetna (Craven/ 1-1-75 Dargen 1-1-75 to Aetna (Craven/ 7-1-75 Dargen 7-1-75 to Central National 3-15-76 (Craven/Dargen) (Proposal) Central National 3-15-76 (Craven/Dargen) Premium Deductible Maxmium $160,000 $5 million 160,000 160,000 $5 million Comment 1st year of 3-year policy. 3rd year of 3-year program cancelled. $5 million Replace above policy. 55,000 (Additional)$100,000 $5 million Renegotiate premiums total increase and accept aggerate deductible of $100,000 and sub- deductible of 10,000 per loss. 270,000 $100,000 $5 million Cancelled in mid-tern (annual) total • 450,000 100,000 $5 million Premium increase and (annual) per - a $100,000 per occurrence occurrence deductible (est. total loss $304,000) Fem. PCNA/insurance #SED CERTIFICATE OF INSURANCE NAME AND ADDRESS OF INSURED CITY OF ROSEMEAD 500 WEST TEMPLE STREET, ROOM 754 LOS ANGELES, CALIFORNIA 90012 The Policy identified below by a policy number is in force on thedate of Certificate Issuance. Insurance is afforded onlywith respect to those coverages for which a specific limit of liability has been entered and is subject to all the terms of the Policy having reference thereto including for Umbrella Excess Third Party Liability Insurance a provision requiring the maintenance of underlying insurance or self insurance. This Certificate of Insurance neither affirmatively nor negatively amends, extends or alters the coverage afforded under any policy identified herein. In the event of cancellation of the Policy the Company issuing said Policy will make all reasonable effort to send notice of cancellation to the Certificate Holder at the address shown herein, but the Company assumes no responsibility for any mistake or for failure to give such notice. THE COUNTY OF LOS ANGELES AND NAME AND ADDRESS OF CERTIFICATE HOLDER F C. Leland Gunn City Manager City of Rosemead 8838 East Valley Blvd. Rosemead, California 91770 L DATE OF CERTIFICATE ISSUANCE: AREU a JULY1.19:,%t197,2•nnI1nn.A4=65 BX• A&h me Representative'' •"'Q•"'"O J THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE HOLDER IV. V. ATE EL W COVERAGES LIMITS OF LIABILITY TYPE OF INSURANCE IS DESIGN D B O EACH PERSON EACH OCCURRENCE AGGREGATE ❑ Comprehensive Automobile Liability Bodily Injury Liability $ $ - ❑ Schedule Automobile Liability Property Damage Liability $ Bodily Injury and Property $ - ,e Damage Liability Combined _ ❑ Protection Against Uninsured Motorists Uninsured Motorists $ t $ R Comprehensive General Liability Bodily Injury Liability $ $ $ ❑ Owners', Landlords' and Tenants' Liability Property Damage Liability $5,000,000.0 $COMBINED SINGL LIMIT ❑ BODILY INJUR LIABILITY AND PROPERTY DAMAGE LIABI ITY ❑ Manufacturers' and Contractors' Liability Bodily Injury and Property $ $ ❑ Owner's and Contractors Protective Liability Damage Liability Combined Bodily Injury Liability $ $ ❑ Beauticians' Malpractice Liability Property Damage Liability $ $ ❑ Workmen's Compensation A. Statutory Statutory Locations: Employers' Liability B. Bodily Injury $ t ❑ Umbrella Excess Third Party Liability The Excess Insurers Limit of Liability is (Complete one) (a) $ in excess of a Retained Limit (b) Up to $ in excess of a Retained Limit and in excess of various underlying Insurer's Limits of Liability " t each Accident Complete below, by designating company by number in the box and entering policy number and expiration date in the sections corresponding to the type of insurance indicated above. I II CNA CASUALTY OF CALIF RWIA Policy Number F CCP 240 9677722 ❑ Expiration Dote JULY 1, 1975 IV. V. Policy Number F-1 El Expiration Date Q Continental Casually Company Q Transportation Insurance Company © National Fire Insurance Company of Hartford Q American Casualty Company of Reading, Pa. Q Transcontinental Insurance Company Q Valley Forge Insurance Company G32343-t MAR, niff & MCLEa NAN, INCA. OF CALIFORNIA INSURANCE 3303 WII.SH BOULEVARD LOS ANGELES. OALLFOHN & 00010 TE FHONZ 380-1800 July 10, 1972 Mr. C. Leland Gunn, City Manager 8838 East Valley Boulevard Rosemead, California 91770 COUNTY OF LOS ANGELES CONTRACT CITIES LIABILITY Dear Mr. Gunn: Effective July 1, 1972, the Liability insurance for the above has been assumed by the. Continental National America Group. We are now pleased to enclose a Certificate of Insurance evidencing coverage for a three-year term and at the same $5,000,000.00 Combined Single Limit for Bodily Injury and Property Damage as provided heretofore. You will observe that your Municipality has been included as a Named Insured, and we wish to confirm that the same conditions as previously insured are effected in the new policy. Claims procedures should continue on the same basis with communi- cations directed to the County Counsel. Sincerely yours, LVIHILL Vice President JTM:JB CC - Mr. Richard L. Landes Deputy County Counsel County of Los Angeles Chief Administrative Office County Hall of Administration 500 West Temple Street, Room 754 Los Angeles, California 90012 Mr. Robert A. Frenchick County of Los Angeles `2iGNA/insurance • CERTIFICATE OF INSURANCE i The Policy identified below by a policy number is in force on the date of Certificate Issuance. Insurance is afforded only with respect to those coverages for which a specific limit of liability has been entered and is subject to all the terms of the Policy having reference thereto including for Umbrella Excess Third Party Liability Insurance a provision requiring the maintenance of underlying insurance or self insurance. This Certificate of Insurance neither affirmatively nor negatively amends, extends or alters the coverage afforded under any policy identified herein. In the event of cancellation of the Policy the Company issuing said Policy will make all reasonable effort to send notice of cancellation to the Certificate Holder at the address shown herein, but the Company assumes no responsibility for any mistake or for failure to give such notice. NAME AND ADDRESS OF INSURED THE COUNTY OF LOS ANGELES ET AL 500 WEST TEMPLE STREET, ROOM 754 LOS ANGELES, CALIFORNIA 90012 NAME AND ADDRESS OF CERTIFICATE HOLDER F C. Leland Gunn City Manager 8838 East Valley Blvd. Rosemead, California 91770 L DATE OF CERTIFICATE ISSUANCE: IDLY 7. 1972 thorn d Representative THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE HOLDER E E W COVERAGES LIMITS OF LIABILITY TYPE OF INSURANCE IS DESIGNAT D B LO EACH PERSON EACH OCCURRENCE AGGREGATE ❑ Comprehensive Automobile Liability Bodily Injury Liability $ $ ❑ Schedule Automobile Liability Property Damage Liability ' $ Bodily Injury and Property $ Damage Liability Combined - " ❑ Protection Against Uninsured Motorists Uninsured Motorists $ $ t LB Comprehensive General Liability Bodily Injury Liability $ $ $ ❑ Owners', Landlords' and Tenants' Liability Property Damage Liability $5,000,000.0 $ COMBINED SINGL LIMIT ❑ BODILY INN LIABILITY AND PROPERTY "DAMAGE LIABI LITY ❑ Manufacturers' and Contractors' Liability Bodily Injury and Property $ $ ❑ Owners and Contractors Protective Liability Damage Liability Combined - _ - Bodily Injury Liability $ $ - ❑Beauticians' Malpractice Liability ' - - ] Property Damage Liability $ $ f-I ❑ Workmen's Compensation A. Statutory Statutory Locations: Employers' Liability B. Bodily Injury $ f ❑ Umbrella Excess Third Party Liability The Excess Insurors Limit of Liability is (Complete one) - (a) $ in excess of a Retained Limit (b) Up to $ in excess of a Retained Limit and in excess of various underlying Insurer's Limits of Liability IV. V. t each Accident Complete below, by designating company by number in the box and entering policy number and expiration date in the sections corresponding to the type of insurance indicated above. I. II. III. Policy Number El Expiration Date IV. V. Policy Number ❑ n Expiration Date 1 Continental Casualty Company 2Q Transportation Insurance Company © National Fire Insurance Company of Hartford F-71 American Casualty Company of Reading, Pa. ❑ Transcontinental Insurance Company 9Q Valley Forge Insurance Company G-32343-t 0 BOARD OF SUPERVISORS COUNTY OF LOS ANGELES 383 HALL OF ADMINISTRATION / LOS ANGELES. CALIFORNIA 80012 GORDON T. NESV IG. CLMK OF THi BOARD Milton R. Farrell, City Administrator 8815 East Valley Blvd. Rosemead, California Dear Mr. Farrell: r MEMBERS OF THE BOARD WARREN M. DORN CHAIRMAN FRANK G. BONELLI KENNETH HAHN ERNEST E. DEBS BURTON W. CHACE February 16, 1965 Enclosed is your signed copy of Assumption of Liability amendment to agreements for services to your City by the County of Los Angeles. HJH:EJM Very truly yours, GORDON T.NESVIG, Board of Supervi Harold J.Huffm Business Manaaer lerk enc ASSUMPTION OF LIABILITY AMENDMENT THIS AMENDMENT TO.AGREEMENT entered into this 15th day of February 19&, by and between the COUNTY OF LOS ANGELES, sometimes hereinafter referred to as "County" and the CITY OF 9-0s& nn PFAL~ , sometimes hereinafter referred to as "City," WITNESSETH: WHEREAS, Division 3.6 of the Government Code has imposed joint and several liability on public entities who are parties to an agreement as defined in Section 895 of said code; and WHEREAS, any such agreement may provide for the indemnification by any of the parties thereto of the other parties with respect to any liability arising from or out of the performance of such agree- ments: and WHEREAS, the City and County have heretofore contracted for the performance of services by County, its officers, agents, and employees, and will in the future extend, renew, and amend such contracts and enter into other and further contracts for the perform- ance of services; and WHEREAS, the County has contracted with an insurance carrier for liability and property damage insurance, including therein coverage of the liability assumed by the County pursuant to contracts for the rendition of services by the County for other public entities as provided for in Section 895.4 of said code; and WHEREAS, the County is willing to.assume liability and to indemnify the city against any loss arising from and out of the County's APPROVED BY BOARD OF SUPERVISORS performance of services.under such contracts to the extent MAR 3 11964 GORDo T. Nrd • Clerk of f the Board . • 9 of such insurance coverage, or renewals, amendments, or replacements thereof and subject to the terms, conditions, and limitations here- inafter provided, NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. County will assume liability and defend and hold City harmless from loss, costs, or expense caused by the negligent or wrongful acts or omissions of County officers, agents, and employees, occurring in the performance of agreements between the parties hereto to the extent that such liability is imposed on City by the provisions of Section 895.2 of the Government Code and subject to the following terms, conditions, and limitations. 2. The assumption of liability and responsibility of County to defend and hold harmless set forth in paragraph 1. hereof is coextensive with and limited to that insurance coverage, the limita- tion thereon and the terms and conditions of Policy No. LP 10022 entered into between the County of Los Angeles and the Pacific Indemnity Company, including amendments, renewals, and replacements thereof. A copy of the referred to policy of insurance is attached hereto and made a part hereof. County will promptly advise City of all amendments to, or renewals or replacements thereof, and of termination of such insurance coverage. 3. In connection with the County's assumption of liability being limited to the extent of insurance coverage maintained by the County at any time and being limited to the insurer's enforce- able responsibility to hold County free from loss, it is understood - 2 - and agreed that City will in any and all ways fully cooperate with and assist both County and the contract insurer in all matters relating to insured losses covered hereby and more specifically, but not being limited thereby, City will: (a) give prompt notification of all occurrences likely to be covered by the terms hereof, together with particulars thereof as required by sub-section 7 of the Conditions contained in the referenced insurance policy; (b) if claim is made, or suit is brought against City on occurrences likely to be covered by the terms hereof, City shall immediately forward every claim, demand, notice, summons, or other process received by it to the County or the person designated by the insurance carrier to receive such matters; and (c) assist and cooperate fully with the insurance carrier, in which connection City acknowledges its familiarity with the conditions and limitations of such policy. Should City fail or refuse to comply with the provisions of this agreement, or should City so conduct itself that the insurer cannot be compelled to hold County free from loss for obligations of City assumed hereunder, then this assumption of liability and responsibility to defend shall be of no force and effect and the County shall have no obligation and shall have assumed no liability hereunder pursuant to the sections of 895.2 or 895.4 of said code or otherwise. - 3 - S 4. Should City agree, stipulate, consent to, or otherwise suffer the granting of any claim, the making of any;judgment, order, or other award for damages or other relief against itself or any i of its or the County's officers, agents, or employees in any proceed- ing or action authorized by law involving a matter arising out of the performance by the County of services affected hereby without the prior written consent thereto of the County and the County's insurer, the City agrees to indemnify, hold harmless, and defend the County from any loss, cost, or expense to it arising from such claim, judgment, or other award irrespective of the legal basis upon which liability may be imposed by such action including liability of the County under the provisions of referred to Section 895.2 of the Government Code. 5. City may, with consent of the County's contract insurer, at City's own cost for its attorneys, participate in the defense of any suit or in the prosecution of any appeal affecting matters herein involved. 6. This amendment to agreement shall apply to and shall be deemed to be a part of all agreements now existing or hereafter entered into, including amendments, renewals, or other extensions thereof wherein City and County have contracted under circumstances wherein the liability of City is based solely on the provisions of Section 895.2 of the Government Code. The provisions hereof shall supersede and control over any other provisions inconsistent therewith in any such contracts unless by the wording thereof this "assumption of liability amendment" is by specific reference excluded from application. - 4 - r 7. The effective date of County's assumption of liability and responsibility to defend hereunder is April 1, 1964, and the same shall continue and extend for so long as the County has insurance coverage to indemnify it and hold it harmless from the liability herein assumed, or until thirty (30) days after County gives written notice of termination hereof, whichever first occurs. County shall immediately notify City of any termination or impending termination of insurance coverage which would in turn limit the duration of this agreement. IN WITNESS WHEREOF the parties hereto have executed this agreement the day and year first above written. CITY OF ROSEMEAD Bv r Mayor ATTEST: COUNTY OF LOS ANGELES City Clerk By Chairman, Board of Supervisors ATTEST: t` GORDON T. NESVIG, Clerk of the Board of •Superviso_rs By` 10/64. APPROVED AS TO FORM: HAROLD W. KENNEDY, County Counsel By ! Deputy -5- HAROLD W.KENNEDY COUNTY COUNSCL • OFFICE OF THE COUNTY COUNSEL 648 HALL OF ADMINISTRATION LOS ANGELES. CALIFORNIA 90012 M E M O R A N D U M TO: FROM: RE City Attorneys The Office of the County Counsel, County of Los Angeles Assumption of Liability Amendment As you are,aware, Division 3.6 of the Government Code substantially altered and enlarged the liability. of public entities, including the imposition of joint and several liability on public entities who are par- ties to an agreement as defined in Section 895. By express statutory provision such agreement may provide for the indemnification by any party of the other parties from matters arising out of the perform- ance of such agreements. The County has contracted with the Pacific In- demnity Company for liability and property damage in- surance, including the liability assumed by the County pursuant to contracts for the.rendition.of services by the County. By the attached proposed agreement the County as- sumes such liability and agrees to indemnify the City against any loss arising out of the County's perform- ance of such contracts to the extent of the insurance coverage. This proposed agreement is by its terms deemed to be a part of all agreements now existing or hereafter entered into between the City and the County including all amendments, renewals, or extensions there- of. The effective date of this agreement of assumption of liability is April 1, 1964. The extent of insurance coverage afforded in this matter is $1,000,000.00 aris- ing out of any one occurrence. NIADisoN 53611 City Attorneys -2- The proposed assumption agreement has been approved by the insurance carrier. In connection therewith the insurance carrier advises that it will defend, at its own expense, actions against City falling within the terms of the attached agreement. The carrier has requested that City inform it di- rectly, as well as the County, in event of serious loss so as to enable its immediate investigation. It is our understanding that this memorandum and its attachments will be forwarded to you under cover of a letter from the Chief Administrative Officer who will have recommendations as to processing and other related matters. If further information is desired of this office, please contact Mr. John D. Maharg at MAdison 5-3611, Extension 64786. Inquiries of the insurance carrier may be made through Mr. Edward M. Fitch, Vice President of Bayley, Martin and Fay, Inc., insurance brokers, at DUnicirk 5-2471. JDM/ejp 9 • CHIT ADMINISTRATIVE OFFICER L. S. HOLLINGER CHIEF ADMINISTRATIVE OFFICER To: October 19, 1964 COUNTY OF LOS ANGELES 713 HALL OF ADMINISTRATION ' LOS ANGELES. CALIFORNIA 90012 City Managers and Administrative Officers From: Morton J. Golden ounty-City Coordinator Subject: "HOLD HARMLESS" AMENDMENT TO COUNTY-CITY CONTRACTS MEMBERS OF THE BOARD WARREN M. CORN CHAIRMAN FRANK O. BONELLI KENNETH HAHN ERNEST E. DEBB BUNTON W. CHACE On March 31, 1964, the Board of Supervisors approved a liability insurance program covering services provided by contract to cities and instructed County Counsel to prepare a standard "hold harmless" amendment which would be applicable to the various service contracts in effect between the County and the cities in Los Angeles County. Such liability insurance became effective on April 1, 1964. On May 20, 1964, this office notified all cities that the County as of April 1, 1964 assumed liability for its employees who perform services for cities under contract and would pass the costs of the liability insurance to the cities as a portion of the rates charged for services. Specifications as to the nature of coverage provided and a certificate of insurance were also included in this notice. Following discussions and review between County Counsel and the insurance carrier, the attached standard "hold harmless" amendment was drafted and is submitted for approval by your City Council. We are also including a memo of explanation from County Counsel directed to your City Attorney and a copy of the master insurance policy. Executed copies of the amendment should be returned to this office for further processing. Should you have any questions,,please do not hesitate to call me at MAdison 5-3611, Extension 64156 or 64157. MJG:DLS:rl Attachments ' • CERTIFICATE OF INSURANCE O BROAD FCRM LIABILITY INSURANCE - EXCLUDING AUTOMOBILES PRIMARY & EXCESS SUBJECT TO TERMS AND CONDITIONS OF PACIFIC INDEMNITY POLICY LP 10022 PACIFIC INDEMNITY COMPANY POLICY NUMBER LP 10022 POLICY PERIOD 01000000 PER OCCURRENCE COMBINED SINGLE LIMIT FOR BODILY INJURY AND PROPERTY DAMAGE COMBINED. POLICY COVERS THE COUNTY OF LOS ANGELES AND ALL PUBLIC BODIES (CITIES? ETC.) FOR WHOM WORK IS PERFORMED UNDER CONTRACT SERVICE AGREEMENTS-AND-RESOLUTIONS AMENDING SUCH AGREEMENTS ARISING OUT OF PERFORMANCE OF SERVICES BY THE COUNTY OF LOS ANGELES. PACIFIC INDEMNITY COMPADIY EXCESS INSURANCE - UNDERWRITERS LIMITS LLOYD'S & COMPANIES LLOYD'S & COMPANIES BY w2)000p000 COMBINED SINGLE LIMIT EXCESS OF N3j000j000 COMBINED SINGLE LIMIT POLICY LC 61153 7-1-66 TO 7-1-69 STEWART, SMITHS HAIDINGER~ INC. AGENTS AUTOMOBILE LIABILITY INSURANCE - PACIFIC INDEMNITY COMPANY SUBJECT TO ALL TERMS AND CONDITIONS OF POLICIES LISTED BELOW: INSURED COVERAGE LIMITS COUNTY OF LOS ANGELES OWNED AUTOMOBILES LIABILITY INS. POLICY 293600 COUNTY OF LOS ANGELES NON-OWNED AUTO LIABILITY INS. POLICY 293800 ?1,000,000 COMBINED SINGLE LIMIT BODILY INJURY AND PROPERTY DAMAGE ('100001000 COMBINED SINGLE LIMIT BODILY INJURY AND PROPERTY DAMAGE COUNTY OF LOS ANGELES OWNED & NON-OFINED gy1~000~000 COMBINED SINGLE LIMIT AUTOMOBILE LIAB. BODILY INJURY AND PROPERTY DAMAGE INSURANCE POLICY No. 293999 THE ABOVE POLICIES COVER AS ADDITIONAL INSUREDS ALL PUBLIC BODIES (CONTRACT CITIESS ETC.) FOR VHOM WORK IS PERFORMED UNDER CONTRACT SERVICE AGREEMENTS OR RESOLUTIONS AMENDING SUCH AGREEMENTS ARISING OUT OF PERFORMANCE OF SERVICE BY THE COUNTY OF LOS ANGELES OR THE LOS ANGELES COUNTY FIRE PROTECTION DISTRICT. PACIFIC INDEMNITY COMPANY INSURANCE ARRANGED BY: BY V~ BAYLY, MARTIN & FAY I NC. 3200 WILSHIRE BOULEVARD SUITE 1100 LOS ANGELES, CALIFORNIA 90005 CERTIFICATE HOLDER: THE CITY OF ROSEMEAD IS AN ADDITIONAL NAMED ASSURED. CITY OF ROSEMEAD _ ROSEMEAD CITY HALL ROSEMEAD, CALIFORNIA 0 0 CERTIFICATE OF INSURANCE BROAD FORM LIABILITY INSURANCE - EXCLUDING AUTOMOBILES PRIMARY & EXCESS SUBJECT TO TERMS AND CONDITIONS OF PACIFIC INDEMNITY POLICY LP 10022 310001000 PER OCCURRENCE COMBINED SINGLE LIMIT FOR BODILY NJURY AND PROPERTY DAMAGE COMBINED. POLICY COVERS THE COUNTY OF LOS ANGELES AND ALL PUBLIC BODIES (CITIES, ETC.) FOR WHOM WORK IS PERFORMED UNDER CONTRACT-SERVICE AGREEMENTS AND RESOLUTIONS AMENDING SUCH AGREEMENTS ARISING OUT OF PERFORMANCE OF SERVICES BY THE COUNTY OF LOS ANGELES. PACIFIC INDEMNITY COMPANY BY : EXCESS INSURANCE _ UNDERWRITERS LIMITS LLOYD'S & COMPANIES : 2,0001000 COMBINED SINGLE LFAIT EXCESS OF w3,000,OOO COMBINED SINGLE LIMIT LLOYD'S & COMPANIES POLICY LC 62308 7-1-69 TO 7-1-72 BY : -STEWART$ SMITH,-HAIDINGER, INC. AGENTS AUTOMOBILE LIABILITY INSURANCE - PACIFIC INDEMNITY COMPANY SUBJECT TO ALL TERMS AND CONDITIONS OF POLICIES LISTED BELOW: INSURED COVERAGE LIMITS COUNTY OF LOS ANGELES OWNED AUTOMOBILES x1,0001000 COMBINED SINGLE LIMIT LIABILITY INS. BODILY INJURY AND PROPERTY DAMAGE POLICY 293600 COUNTY OF LOS ANGELES NON-OWNED AUTO '`110009000 COMBINED SINGLE LIMIT LIABILITY INS. BODILY INJURY AND PROPERTY DAMAGE POLICY 293800 COUNTY OF LOS ANGELES OWNED & NON-OWNED X110005000 COMBINED SINGLE LIMIT AUTOMOBILE LIAR. BODILY INJURY AND PROPERTY DAMAGE INSURANCE POLICY No. 293999 THE ABOVE POLICIES COVER AS ADDITIONAL INSUREDS ALL PUBLIC BODIES (CONTRACT CITIES, ETC.) FOR WHOM WORK IS PERFORMED UNDER CONTRACT SERVICE AGREEMENTS OR RESOLUTIONS AMENDING SUCH AGREEMENTS ARISING OUT OF PERFORMANCE OF SERVICE BY THE COUNTY OF LOS ANGELES OR THE LOS ANGELES COUNTY FIRE PROTECTION DISTRICT. PACIFIC INDEMNITY /COMPANY INSURANCE ARRANGED BY: BY: alt"z BAYLY, MARTIN & FAY, INC. 3200 WILSHIRE BLVD. SUITE 1100 LOS ANGELES, CALIFORNIA ;90005 CERTIFICATE HOLDER: THE CITY OF ROSEMEAD IS AN ADDITIONAL NAMED ASSURED. CITY OF ROSEMEAD ROSEMEAD CITY HALL ROSEMEAD, CALIFORNIA _ h HOME OFFICE, LOS ANGELES, CALIFORNIA POLICY NO. LP 10022 (A STOCK INSURANCE COMPANY, HEREIN CALLED THE COMPANY) Agrees with the insured, named in the declarations made a part hereof, in consideration of the payment of the premium and subject to the limits of liability, exclusions, conditions and other terms of this policy: INSURING AGREEMENTS I. Coverage A - Personal Liability -,To pay on behalf of the insured all sums which the insured shall become obligated to pay by reason of liability imposed by law, including Div. 3.6 of the Government Code, or liability assumed by contract, insofar as the named insured may legally do so, for damages arising out of the performance by or on behalf of the insured of contract services under contract service agreements between the insured and other Public Entities, including amendments to such agreements by resolutions of such other Public Entities when services are performed by or on behalf of the insured in response to such resolutions; (1) Because of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by any person or persons, or (2) Because of any other injury a person may suffer to his person, including but not limited to malpractice, false arrest, detention or imprison- ment, malicious prosecution, libel, slander,- defamation of character, invasion of privacy, wrongful eviction or wrongful entry. "Damages" shall include consequential damages, damages for care and loss of services, and damages for mental anguish,. fright, humiliation or any other injury that a person may suffer to his person, reputation, charac- ter, feelings or estate. Coverage B - Property Damage Liability - To pay on behalf of the insure all sums w iz~ eTi - e insured shall become obligated to pay by reason of liability imposed by law, including Div. 3.6 of the Government Code, or liability assumed by contract, insofar as the named insured may legally do so, for damages arising out of performance by or on behalf of the insured of contract services under contract service agreements between the insured and other Public Entities, including amendments to such agreements by resolutions of such other Public Entities when services are performed by or on behalf of the insured in response to such resolutions, including consequential damages, because of injury to or destruc- tion of property, including the loss of use thereof. Page 1 of 9 Pages 0 0 II. Defense, Settlement Supplementary Payments - As respects such nsurance as is afforded by this policy, the company shall: (A) Defend in his name and behalf any suit against the insured claiming such damages, even if such suit is groundless, false or fraudulent; but the company shall have the right to make such investigation, negotiation and settlement of any claim or suit as it deems expedient; (B)(1) Pay all premiums and furnish bonds to release attachments for an amount not in excess of the applicable limit of liability of this policy, and all premiums on appeal bonds required in any such defended suit. (2) Pay all expenses incurred by the company, all costs taxed against the insured in any such suit and all interest accruing after entry of judgment until the company has paid or tendered or deposited with the court such part of such judgment as does not exceed the limit of the company's liability thereon; (3) Pay expenses incurred by the insured for such immediate medical and surgical relief to others as shall be imperative at the time of the injury; (4) Reimburse the insured for all reasonable expenses, other than loss of earnings, incurred at the company's request. The company agrees to pay the amounts incurred under this insuring agreement, except settlements of claims and suits, in addition to the applicable limit of liability of this policy. III. Definition of Insured - The unqualified word "insured" includes the named insured and also includes as additional insureds: (1) Officers, servants and employees of the named insured for claims presented against them arising out of the performance of their duties as such, except that the insurance so provided any officer, servant or employee does not apply to liability to another officer, servant or employee of the named insured, injured in the course of and arising out of his employment. IV. Policy Period, Territory - This policy applies only to occurrences which take place during the policy period anywhere in the world except areas designated by the State Department of the United States Government as "iron curtain or bamboo curtain areas." Page 2 of 9 Pages EXCLUSIONS This policy does not apply: (A) Under Coverages A and B. except with respect to oper- ations performed by independent contractors, to the ownership; maintenance, operation, use, loading or unloading of aircraft or watercraft; (B) Under Coverage A, to any obligation for which the insured or any carrier as his insurer may be held liable under any workmen's compensation, unemploy- ment compensation or disability benefits law, or under any similar law, including but not limited to United States Longshoremen's and Harbor Workers' Com- pensation Act, or other Federal or Maritime Laws as respects employees of the insured; (C) Under Coverage A, except with respect to liability assumed by the insured under contract, to bodily injury to or sickness, disease or death of any employee of the insured arising out of and in the course of his employment by the insured; (D) Under Coverage B. to injury to or destruction of (1) property owned by the insured, or (2) property rented to or leased to the insured where the insured has assumed liability for damage to or destruction of such property unless the named insured would have been lia- ble in the absence of such assumption of liability; (E) To liability arising under Article 1, Section 14 of the Constitution of California; (F) To any liability of the insured other than liability for injuries sustained arising out of performance by or on behalf of the insured of contract services under contract service agreements between the insured and other Public Entities, including amendments to such agreements by resolutions of such other Public Entities when services are performed by or on behalf of the in- sured in response to such resolutions. (G) To the ownership, maintenance, use, loading or unloa- ding of automobiles. (H) 1 to injury, sickness, disease, death or destruction ~a with respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance Association, Mutual Atomic Energy Liability Underwriters or Nuclear Insurance Association of Canada, or would be an insured under any such policy but for its termination upon exhaustion of its limit of liability; or (b) resulting from the hazardous properties of nuclear material and with respect to which (i) any person or organization is ?age 3 of 9 Pages • o required to maintain financial protection pursuant to the Atomic Ene y Act of 1954, or any law amendatory thereof, or (III the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. (2) Under any Medical Payments Coverage, or under any Supplementary Payments provision relating to immediate medical or surgical relief, to expenses incurred with respect to bodily injury, sickness, disease or death resulting from the hazardous properties of nuclear material and arising out of the operation of a nuclear facility by any person or organization. (3) Under any Liability Coverage, to injury, sickness, disease, death or destruction resulting from the hazardous properties of nuclear material, if (a) the nuclear material (i) is at any nuclear facility owned by, or operated by or on behalf of, an insured or (ii) has been discharged or dispersed therefrom; (b) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used, processed, stored trans orted or disposed of by or on behalf of an insured; or (c~ the injury, sickness, disease, death or destruc- tion arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the planning, construction, maintenance, operation or use of any nuclear facility, but if such facility is located within the United States of America, its territo- ries or possessions or Canada, this exclusion (c) applies only to injury to or destruction of property at such nuclear facility. (4) As used in exclusion (H): "hazardous properties" include radioactive, toxic or explosive properties; "nuclear material" means source material, special nuclear material or byproduct material "source material", "special nuclear material", and "byproduct material" have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor; "waste" means any waste material (1) containing byproduct materi- al and (2) resulting from the operation by any person or organization of any nuclear facility included within the definition of nuclear facility under paragraph (a) or (b) thereof; "nuclear facility" means (a) any nuclear reactor, (b) any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, f2; pro- cessing or utilizing spent fuel, or (3) handling, proces- sing or packaging waste, (c) any equipment or device used Page 4 of 9 Pages 0 b for the processing, fabricating or alloying of special nuclear material if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is located consists of or contains more than 25 grams of pluto- nium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235, (d) any structure, basin, excavation, premises or place prepared or used for the storage or disposal of waste, and includes the site on which any of the foregoing is located, all operations conducted on such site and all premises used for such operations; "nuclear reactor' means any apparatus designed or used to sustain nuclear fission in a self-supporting chain reaction or to contain a critical mass of fissionable material; With respect to injury to or destruction of property, the word "injury" or "destruction" includes all forms of radioactive contamination of.property. CONDITIONS 1) Premium - The premium stated in the declarations is a flat charge. 2) Inspection - The company shall be permitted to inspect the insured premises, operations, and elevators, at any time during the policy period. 3) Occurrence - The word "occurrence" or repeated exposure, to persons or damage or an act or related to persons during the 4) Products - means an accident or a continuous to conditions which result in injury to property during the policy period, series of acts which inflict injury policy period. All damages arising out of one lot of goods or products prepared or acquired by the named insured or by another trading under the name of the named insured shall be considered as arising out of one occurrence. 5) Limits of Liability - Coverage A and Coverage B combined - The limit of the company's liability for all damages arising out of one occurrence or accident shall be $1,000,000.00 Damages shall be defined as damages for care and loss of services, sickness or disease, includ- ing death at any time resulting therefrom, sustained by one or more persons in any one occurrence or accident and injury to or destruction of property, including loss of use thereof; Page 5 of 9 Pages O O 6) Severability of Interests - The term "the insured" is used severally and not collec- tively, but the inclusion herein of more than one insured shall not operate to increase the limits of the company's liability. 7) Notice of Occurrence - Upon the happening of an occurrence likely to be covered under terms of the policy, written notice shall be given by or on behalf of the insured to the company or any of its authorized representatives as soon as practicable after an officer or an employee in charge of reporting such losses to insurance companies learns of the occur- rence. Such notice shall contain particulars sufficient to identify the insured and also reasonably obtainable information with respect to the time, place and circums- tances of the occurrence, the names and addresses.of the injured and of available witnesses. 8) Notice of Claim or Suit - If claim is made or suit is brought against the insured, the insured shall immediately forward to the company every demand, notice, summons or other process received by him or his representative. 9) Assistance and Cooperation of the Insured - The insured shall cooperate with the company and, upon the company's request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits, and the company shall reimburse the insured for any expense, other than loss of earnings, incurred at the company's request. The insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense other than for such immediate medical or sur- gical relief to others as shall be imperative at the time of.injury. The breach of any warranty or failure to comply with any condition of this policy on the part of any additional insured shall not affect or prejudice the rights of the named insured. The insured may, at the insured's own cost, have the insured's attorneys participate in the defense of any suit or in the prosecution of any appeal. 10) Action Against Company - No action shall lie against the company unless, as a condition precedent thereto, the insured shall have fully complied with all the terms of this policy, nor until the amount of the insured's obligation to pay shall have been finally determined either by judgment against the insured after actual trial or by written agreement of the insured, the claimant and the company. Page 6 of 9 Pages • o Any person, organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy in the same manner and to the same extent as the insured. Nothing contained in this policy shall give any person or organization any right to join the company as a co-defen- dant in any action against the insured'to determine the insured's liability. 11) Other Insurance - If the insured has other valid and collectible insurance against a loss covered by this policy, the insurance ex- tended by this policy shall be excess insurance only and not primary or contributing. 12) Subrogation - In the event of any payment under this policy, the company' shall be subrogated to all the insured's rights of recovery therefor against any person or organization not affiliated with or under the control of the insured, and the insured. shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The insured shall do nothing after loss to prejudice such rights. 13) Changes - No notice to any representative or knowledge possessed by any other person shall be held to effect a waiver or change in any part of this policy or estop the company from asserting any right under the terms of this policy; nor shall the terms of this policy be waived or changed, except by endorsement issued to form a part of this policy. 14) Cancellation - This policy may be cancelled by the named insured by mailing to the company written notice stating when there- after the cancellation shall be effective. This policy may be cancelled by the company by mailing to the named insured at the address shown in this policy written notice stating when not less than thirty days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The time of the surrender or the effective date of cancellation stated in the notice shall become the end of the policy period. Delivery of such written notice either by the named insured or by the company shall be equivalent to mailing. If the named insured cancels, earned premium shall be computed in accordance with the customary short rate table and procedure. If the company cancels, earned prem- ium shall be computed pro rata. Premium adjustment may be made either at the time cancellation is effected or as soon as practicable after cancellation becomes effective, but payment or tender of unearned premium is not a con- dition of cancellation. Page 7 of 9 Pages • 0 15) Acts, Omissions or Errors - Any act, omission or error, on the part of any insured under the policy shall not prejudice the interest of any other insured under this policy. 16) No settlement shall be made by the company, in excess of the limits of liability of this policy without the consent of the insured. The countersignature to this page shall be held the valid countersignature to pages 1 to 9 inclusive comprising the entire policy as of this date. In Witness Whereof, the PACIFIC INDEMNITY COMPANY has caused this policy to be signed by its president and secretary, at Los Angeles, California, and countersigned by a duly authorized representative of the company. Countersigned at: LOS ANGELES, CALIFORNIA on APRIL 11th, 1964 PACIFIC INDEMNITY COMPANY c Page 8 of 9 Pages SECRETARY. PRESIDENT. • o D E C L A R A T I O N S ITEM 1. NAMED INSURED: THE COUNTY OF LOS ANGELES AND ALL SPECIAL DISTRICTS UNDER THE CONTROL OF THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES ITEM 2. ADDRESS: HALL OF ADMINISTRATION, LOS ANGELES, LOS ANGELES COUNTY, CALIFORNIA 90012 ITEM 3. POLICY PERIOD: FROM APRIL 1st, 1964 to JULY lat, 1966 12:01 A.M. Pacific Standard Time. ITEM 4. THE NAMED INSURED IS: COUNTY ITEM 5. LIMIT OF LIABILITY: COVERAGES LIMIT OF LIABILITY A. PERSONAL LIABILITY and SEE CONDITION 5 B. PROPERTY DAMAGE LIABILITY ITEM 6. PREMIUM: $1480392.00 PAYABLE AS FOLLOWS: $14,84o.oo - APRIL 1st, 1964 $66,776.00 - JULY 1st, 1964 $66,776.oo - JULY 1st, 1965 Page 9 of 9 Pages 0 0 PACIFIC INDEMNITY GROUP PACIFIC INDEMNITY COMPANY 1 TEXAS PACIFIC INDEMNITY COMPANY NORTHWESTERN PACIFIC INDEMNITY COMPANY 3200 WILSHIRE BOULEVARD LOB ANGELES. CALIF.-90054. CHARLES THORSEN RESIDENT VICE PRESIDENT Mr. Ed Fitch Bayly, Martin & Fay 3200 Wilshire Los Angeles, California Re: LP 90012 County of Los Angeles Contract Services Dear Ed: April 21, 1964 You have requested we confirm in writing our intent to afford coverage to the County for its liability assumed by contract for contract services afforded contract cities pending the revision of existing Hold Harmless Agreements between the two parties. We understand that it will take time for some of the existing Hold Harmless Agreements (holding the County harmless for contract services) to be voided. Since our Insuring Agreement covers the County for its assumption of liability for contract services and the coverage written for this purpose, we will not refuse coverage because of a conflict of existing Hold Harmless Agreements, pending the delivery of the new Agreement. Very truly yours, i ;r I.L. Charles Thorsen CT/ds • U No. 1 CALIFORNIA FINANCIAL RESPONSIBILITY CANCELATION ENDORSEMENT It is agreed that the policy may not be canceled by the company or by the insured until the company has mailed written notice to DEPARTMENT OF MOTOR VEHICLES FINANCIAL RESPONSIBILITY, P. 0. BOX 2431, SACRAMENTO, CALIFORNIA, stating when (not less than TEN (10) DAYS thereafter) such cancelation shall be effective. Delivery of such written notice by the company shall be equivalent to mailing. Nothing herein contained shall be held to vary, alter, waive or extend any of the terms, conditions, agreements or limita- tions of the policy other than as above stated. This endorsement forms a part of PACIFIC INDEMNITY COMPANY Policy Number • LP 10022 Issued to • THE COUNTY OF LOS ANGELES, ET AL Endorsement Effective. APRIL 1st, 1964 Countersigned at Date of Issue Form 2A066 10M 762 ueE I Ei~o annav LOS ANG'L'ES, CALIFORNIA by .4-22-64 LR:pa CITY .1... PRESIDENT. f "J AUTHORIZED REPR BENTATIVE. BAYLY, MARTIN & FAY, INC. 11 PRODUCER. 0. D. I i-1-6''F E OFFICE USE ONLY LINB GROSS PREMIUM 0.... PER.. CAR. 'O. OHM. R.T. No. A.P. R.P. 2 ~j It is agreed Condition 5 is deleted in its entirety and the following substituted there- for: 5. LIMITS OF LIABILITY - COVERAGE A and COVERAGE B combined The limit of the Company's liability for all damages arising out of one occurrence or accident shall be ~N1,000,000.00 Nothing herein contained shall be held to vary, alter, waive or extend any of the terms, conditions, agreements or limita- tions of the policy other than as above stated. This endorsement forms a part of PACIFIC INDEMNITY COMPANY Policy Number LP 10022 Issued to Endo rseinent-Effective Countersigned at" Date of Issue Form 1A027 100M 1162 THE COUNTY OF LOS ANGELES,ET AL APRIL lst, 1964 LOS ANGELES, CALIFORNIA by 5/26/64 RHJ:edm PRESIDENT. T't " Q ct AUTNORI;ED REPRESENTATIVE. •BAYLY,MARTIN & FAY,INC. OD: 471/64 PRODUCER. uY[ arwce-FOR HOME OFFICE USE ONLY W. [YRO[ CITY CLAt. LIVE OPO[[ 111LYIVY OPOt[ IP[Y. C/.MC•O. COPY. 111T[ I~