HomeMy WebLinkAboutSuccessor Reso 03-2019 (18-900)City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
Successor Agency
Resolution: RES 03-2019
File Number: 18-900 Enactment Number: RES 03-2019
RESOLUTION AUTHORIZING THE CITY
MANAGER/EXECUTIVE DIRECTOR TO APPROVE A
POLLUTION LEGAL LIABILITY POLICY WITH BEAZLEY
GROUP FOR THE FORMER LANDFILL LOCATED AT OYSTER
POINT IN AN AMOUNT NOT TO EXCEED $256,087 AND
APPROVING BUDGET AMENDMENT NO. 20.008.
WHEREAS, the Development and Disposition Agreement ("DDA") between the City of South San
Francisco, the former redevelopment agency for the City of South San Francisco and Kilroy Realty TRS,
Inc. includes provisions that require the developer to replace the clay cap on the city landfill located at
Oyster Point; and
WHERAS, the developer secured a Contractor's Pollution Liability policy for the project, which covers
a 10 -year period after the clay cap repair has been completed, but only covers the completed work
product/operations, and excludes claims resulting from pre-existing pollution conditions; and
WHEREAS, staff worked with Alliant Insurance, the City's insurance broker, to seek out insurance
carriers that would provide the City with a pollution legal liability policy to cover third party claims
against the City for existing landfill conditions; and
WHEREAS, the City received quotes from Beazley and Ironshore; and
WHERAS, after discussion and review by staff and the City Attorney's Office, staff identified Beazley
as the preferred carrier, as their quote and coverage most closely met with the City's principal policy
parameters; and
WHERAS, Beazley is a syndicate of Lloyd's of London, was established in 1986, managed $2.7 billion
in gross premiums in 2016, has an A.M. Best rating of A/XV, and has $2 billion in reserves; and
WHEREAS, a copy of the proposed insurance policy and relevant endorsements are attached to the
associated staff report; and
WHERAS, the policy covers the City and the Successor Agency to the former Redevelopment Agency
for claims related to pollution liabilities associated with Phases IC, ID, and IIC as agreed upon within the
Kilroy Realty TRS, Inc. DDA that are not otherwise excluded by the Landfill and Development Cost
Exclusion; and
WHEREAS, the cost of the proposed pollution legal liability policy of $256,087 from Beazley includes
the policy premium of $248,146 and Surplus Lines Taxes/Fees of 3.2 percent, or $7,941 and the policy
would cover a 10 year claims filing term, have a coverage amount of $10 million for each pollution
condition, and have a $100,000 deductible; and
City of South San Francisco Page 1
File Number. 18-900
Enactment Number: RES 03-2019
WHEREAS, based on the Fourth Amendment of the Franchise Agreement between the City of South
San Francisco and the South San Francisco Scavenger Company (Scavenger) in 2013 added Section 4.3,
which provides a Source Reduction and Recycling Element (SRRE) franchise fee, the pollution liability
policy premium would be an appropriate use of the equity within the City's Solid Waste Fund; and
WHEREAS, Budget Amendment No. 19.005 appropriates $256,087 in funds from the Solid Waste Fund
resulting a projected Fiscal Year 2018-19 year-end remaining balance of $145,432.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco and
the South San Francisco Successor Agency to the former Redevelopment Agency does hereby:
Authorize the City Manager and Executive Director to purchase a Pollution Legal Liability policy with
Beazley Group for the former landfill located at Oyster Point in an amount not to exceed $256,087; and
Approve Budget Amendment No. 20.008.
At a meeting of the Joint Special Meeting City Council and Successor Agency on 7/10/2019, a motion was
made by Richard Garbarino, seconded by Mark Addiego, that this Resolution be approved. The motion
Yes: 5 Boardmember Addiego, Boardmember Nagales, Chair Matsumoto, Boardmember
Nicolas, and Vice Chair Garbarino
Attest by
Govea Acosta
City of South San Francisco Page 2