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HomeMy WebLinkAbout11 ENVIR INS REDHILL 10-07-02AGENDA REPORT NO. 11 10-07-02 180-05 ~ MEETING DATE: OCTOBER 7, 2002 R = 7 ~ TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION ENVIRONMENTAL INSURANCE FOR THE RED HILL AVENUE WIDENING PROJECT AT THE I-5 FREEWAY (CIP No. 7133) SUMMARY City Council authorization is required to secure environmental insurance coverage for property to be acquired on the southeast corner and southwest corner of the intersection of Red Hill Avenue and El Camino Real (Wendy's and Starbucks, respectively). The City of Tustin is acquiring property at both corners to construct the Red Hill Avenue Widening Project at the I-5 Freeway (CIP No. 7133). RECOMMENDATION It is recommended that the City Council authorize staff to bind environmental insurance coverage from ECS Insurance Company for property to be acquired on the southeast and southwest corners of the intersection of Red Hill Avenue and El Camino Real, and to authorize a premium payment in the amount of $84,046 (which includes taxes and fees), subject to City Attorney approval of all carrier policy terms and conditions. FISCAL IMPACT The policy premium for environmental insurance coverage is $81,400 plus taxes and fees of $2,646 for a total cost of $84,046. The cost of the insurance is funded from CIP No. 7133. BACKGROUND Construction of the Red Hill Avenue Widening Project at the I-5 Freeway is budgeted for construction in FY 2002-03. The project limits are Red Hill Avenue between El Camino Real and Nisson Road. This project requires right-of-way (ROW) from four parcels in the form of acquisition and/or Temporary Construction Easements (TCE) as follows: APN 500-142-04 500-021-02 & 04 432-042-05 432-401-08 Owner & Description Makena (Starbucks) Pankey Trust (Wendy's) Mathis (Al's Woodcraft) Chevron (Gas Station) Type of ROW Required Acquisition & TCE Acquisition & TCE Acquisition & TCE TCE During ROW negotiations for the Wendy's site, the property owner (Pa.nkey Trust) has requested that certain language changes be made to the City's standard Purchase Agreement. The changes are related to the indemnification language under the Environmental Compliance Section of the Purchase Agreement. Since, the property owner is aware that all four corners of the intersection of Red Hill Avenue and El Camino Real are existing or former gas stations, the property owner does not want to indemnify the City for any hazardous materials Environmental Insurance for the Red Hill Avenue Widening Project at the I-5 Freeway October 7, 2002 Page 2 that may exist on his property either from the previous gas station or migration from the three other corners. Currently, a Mobil gas station operates at the northeast corner, a Shell gas station operates at the northwest corner, the Wendy's site was previously a Chevron gas station and the Starbucks site was previously a Texaco gas station. The Starbucks site is presently owned by the Makena Great American Red Hill Company, LLC (Makena) and the acquisition required for construction of CIP No. 7133 has already been obtained from the owner. Staff has researched records at the Orange County Health Care Agency (OCHCA) and the available information shows that the OCHCA has active cases for hazardous materials releases for the existing Mobil and Shell gas stations. These materials releases are several feet below street grade level and should not affect construction of the City's widening project. The OCHCA is actively monitoring the migration of material through the use of monitoring wells. The OCHCA also investigated the Makena and Pankey properties and determined that each of the two sites was free of contaminated materials and the case files for both properties were closed. Copies of all OCHCA reports were forwarded to Complete Insurance, the broker that provided the Environmental Insurance for MCAS-Tustin. Through their efforts City staff has been given an estimate for Environmental Insurance for the Red Hill Avenue Widening Project from the same insurance company providing the insurance for MCAS-Tustin, ECS Insurance Company. Because of the active cases by the OCHCA involving the Mobil and Shell gas stations, the Pankey Trust is unwilling to sign a Purchase Agreement without their suggested language modifications to the Environmental Compliance section. The City Attorney has reviewed their suggested revisions and has made a few minor modifications. Based on discussions with the City's ROW agent, Cutler and Associates, the property owner will sign the Purchase Agreement as revised by the City Attorney. However, the City Attorney has recommended that the City obtain environmental insurance to protect the City against any risk. The recommended insurance coverage is for the property to be acquired at the Wendy's and Starbucks sites and will limit the City's exposure to any unknown environmental contamination discovered during construction, thus allowing the project to proceed in a timely manner. The insurance policy will also provide the same coverage if any unknown environmental contamination is discovered after project completion but within the five year term of the policy. ECS Insurance Company has insured numerous projects for environmental contamination and understands this business as well or better than any other carrier and they have a lengthy history of performing at an extremely high level for their clients (i.e. claim responses, etc.). The policy is a 5-year policy that would provide $5,000,000 in coverage per occurrence and on the aggregate. Coverage protects the City against third party liability claims including on-site and off- site bodily injury and property damage; remediation expense from pollution conditions on, at or under or emanating from the covered locations; legal defense expenses in connection with remediation expenses, and contingent transportation expenses. There is a minimum $100,000 deductible/retention amount per policy. Environmental Insurance for the Red Hill Avenue Widening Project at the I-5 Freeway October 7, 2002 Page 3 Therefore, it is recommended that the City Council authorize staff to bind environmental insurance coverage with ECS Insurance Company for the property to be acquired on the southeast and southwest corners of the intersection of Red Hill Avenue and El Camino Real for the Red Hill Avenue Widening Project at the I-5 Freeway. Director of Public Works/City Engineer Dana R. Kasda'n ' ~ ~ - Engineering Services Manager TDS:DRK:ccg:Enviro Ins for Red Hill widening proj.doc. Attachments: Location Map Insurance Proposal I I I I!1 13802-13850 (I-5) SANTA ANA FREEWAY 2002 - 2003 INSURANCE PROPOSAL FOR THE CITY OF TUSTIN Presented By Richard W. Hyland ~OMPLETE INSURANCE INC. California DOI # 0437762 1500 Quail Street, Suite 410 Newport Beach, California 92660 www. completeinsurance.com 949.263.0606 September 16, 2002 About Complete Insurance Inc. TABLE OF CONTENTS Section 1 Pollution and Remediation Legal Liability Premium Summary ~OMPLETE INSURANCE INCORPORATED THE CITY OF TUSTIN NAMED INSUREDS The City of Tusfin ADDITIONAL INSUREDS If required by written contract 5~VOMPLETE INSURANCE INCORPORATED PLEASE READ THISI THIS IS A DISCLAIMER The forms which follow are for illustration purposes only in order to assist clients in purchasing insurance. This proposal is intended to summarize the coverage, limits and deductibles offered by insurers. It is not intended to nor does it alter or amend the policies which are proposed. The policies are contracts which you as the purchaser must read. YOUR OPERATIONS/SERVICES The coverage outlined in the following proposal pages is based on and determined by the information provided in the application(s) of insurance and on the classifications/operations as shown in this proposal. In order to comply with policy conditions that could affect coverage under the policies being quoted it will be necessary for you to notify our office if the operations of your company change or you expand the services you provide. Failure to do so could result in an uncovered claim. OMPLETEINSURANCE INC. GHLYPROFESSIONAL SERVICE WITH INTEGRITY ~OMPLETE INSURANCE INCORPORATED WHAT THE INSURANCE BUSINESS RELATIONSHIP ENTAILS Role of Your Insurance Broker As your insurance broker, Complete Insurance Inc. (CII) will become your representative and advocate in the worldwide insurance marketplace. It is our responsibility to understand your operations, suggest insurance coverage~ negotiate your insurance contracts and place your insurance with the proper carriers. Additionally, CII assists in problem solving and will help you in the event a claim arises. In placing coverage, it is important to remember that insurance companies are profit- making institutions and that their premiums are set to properly evaluate and underwrite risks. While it is CII's responsibility to obtain insurance protection for you on favorable terms and conditions, accurate information and realistic goals are essential to successfully placing proper coverage. Purpose of Insurance The most important element of insurance selection is understanding what risks are being insured. Thoroughly identifying exposures and selecting proper coverage enables companies to avoid catastrophic loses and meet their financial goals. It is equally important to understand what risks policies will not cover. CII recommends carefully reading policies and thoroughly reviewing coverage with your CII broker. In California, it is particularly important to protect individual and company assets from claims and actions by others. CII strongly recommends that only quality insurers be used for liability policies. Based on our experience, we also frequendy recommend excess or umbrella policies to provide additional limits over primary liability coverage, and special policies to protect corporate officers and directors. Role of Your Insurance Carrier Your insurance cartier enters into a contract with you to accept the risk of certain specified losses within the terms and conditions of the insurance policy issued. The following pages detail CII's insurance proposals for your business operations. Your CII broker developed this proposal using the specifications you requested. Please carefully review the proposal to con£m'n that the coverages are presented accurately. Because these specifications may differ from those provided by other brokers, we suggest analysis of coverages and not merely policy costs. Should you have any questions, please call your broker at 949.263.0606. ~OMPLETE INSURANCE INCORPORATED FOR YOUR COMPANY'S INSURANCE NEEDS: COMPLETE INSURANCE INCORPORATED ' The importance of commercial insurance continues to rise as the risks of doing business change and grow. Incorporated in 1972, CII is a highly professional brokerage firm with the talent and depth of experience needed to meet the evolving challenges of business risk management. The broad array of insurers and insurance products through which financial losses can be reduced or avoided is constantly changing. We understand the difficulty faced by business owners and managers trying to stay abreast of these developments. We know that the maze of coverage forms and legalese contained in nearly all insurance policies 'can be perplexing. That is why we provide step-by-step services to quantify risks, simplify insurance rhetoric, and place value-driven insurance programs designed especially for your business. CII recognizes that risk management and insurance selection are fundamental to the £mancial security and continued success of its clients. By providing professional risk management and insurance services, CII enables client management teams to focus on other factors essential to the growth and success of their businesses. CII is adept at working with companies that face unique exposures and difficult contractual issues. Our brokers and support staff play a important role in helping clients understand how insurance coverage applies and when insurers must respond. Every member of our staff is dedicated to maintaining the superior technical and market skills vital to success in the fast- changing world of commercial insurance. MEETING THE LIABILITY CHALLENGE The liabilities assumed by employers and businesses in today's business world are numerous and require thorough consideration. These liabilities involve claims arising from: bodily injury, property damage, employment practices, activities as a corporate director or officer, product performance, professional or contractual obligations, pollution, employee benefits and a host of other exposures. Business professionals must have confidence in the insurance derisions they make. Our recommendations and service involve professional judgments as well as a defining relationship that goes beyond the initial purchase and premium calculations. CII clients can be assured that their insurance broker and carrier(s) will respond promptly and appropriately to a myriad of issues throughout the policy year. We are always mindful that our clients depend upon us for professional work- not guesswork! The insurance relationship requires that we make good initial recommendations in the placement of coverage and continue to act on behalf of our clients and insurers. Our defining element is integrity ... our most valued asset is the trust our clients place in us. ~OMPLETE INSURANCE INCORPORATED CII has earned a reputation among clients and insurers for meticulous attention to detail and for providing accurate information to all parties involved. As professional brokers, we know that insurance policies are legal contracts, which place obligations on both the purchaser and the insurer. Insurance cannot be a guessing game when it is so crucial to the financial security of those who purchase it. Our standard is to furnish accurate, useful information and advice in every phase of our services. To assure precision and reliability, we approach insurance problems in a step-by-step manner that produces dependable results for our clients. GROWING COMPANIES NEED COMPLETE INSURANCE Growing companies need the insights and meticulous approach to insurance issues that CII offers. Our brokers and staff- all characterized by keen attention to detail - are experienced insurance professionals who know risk management and the insurance industry. We never lose sight of the fact that the quality of our work can be crucial at the time of a loss. We act quickly and derisively when needed. The challenge of insurance problems and meeting the needs of our clients are not simply chores for which we draw paychecks. Finding solutions for our clients is our passion - it's what makes our business interesting and worthwhile! With more than 1,400 clients, CII is recognized in the insurance industry as one of the leading independent brokerage firms on the West Coast. We are licensed in 16 states and routinely place insurance programs for clients with multiple state or worldwide operations. Many of our client companies deal with particularly complex risk management obstacles, difficult product exposures and large construction projects. The confidence these companies have in CII demonstrates our capacity to successfully take on the most difficult insurance and risk issues. Prior to quoting risks, CII welcomes the opportunity to discuss market capabilities and target premiums with you. In doing so, we request assignment of markets preceding the submission of insurance applications. ~'OMPLETE INSURANCE INCORPORATED SPECIAL INSURANCE PROGRAMS Although CII is known for its Ind~'duall. v Crafted Insurance Programs, the company has special expertise in a number of business categories for which it offers special or group insurance programs. In several of these business categories, CII's brokers have hands-on experience actually working in the business or have developed expertise through special training and knowledge. These categories include: · Construction (general and specialty) · Banking · Technology companies (including Intemet Companies) · Information and communication systems · Intellectual property risks · Architects, Engineers, and Surveyors · Private schools and institutions · Auto dealers, suppliers and repair · Restaurant and hotel facilities · Wholesale food distribution · Crude oil production · Oil products transportation and distribution · Pipeline construction · Environmental remediation activities · Heavy manufacturing · Furniture manufacturing and woodworking · Logistics/Warehousing · Extended Care facilities for the elderly · Ambulance services · Large property The brokers and staff at Compkte Insurance start with the premise that they can meet the needs of clients better than other insurance brokerage firms. We look forward to working with you and your company! ~OMPLETE INSURANCE INCORPORATED CLIENT SERVICES As your Broker, Richard W. Hyland and CII represent The City of Tustin in the world insurance markets. In this role, we will present your interests and coordinate with insurance company underwriters, billing and accounting departments, claims departments and other insurance professionals. Sherrill Barton, Account Administrator, will assist in all day-to-day matters relating to the insurance coverage that has been placed. To assure dependable results, our professional team approaches insurance problems in a step-by-step system. For The City of Tusfin, we will: 1. Carefully review the nature of the financial risks and suggest the correct insurance or other protections which may be required. Please be aware that even the best insurance programs do not eliminate all of the risks. 2. Market your insurance aggressively among the more than eighty insurers with which CII places insurance. 3. Provide formal written proposals which explain the alternatives proposed. These presentations conf'mn underwriting information and show the basis for premium determinations. CII prepares the most comprehensive proposals available among insurance brokerage firms. 4. Review insurance contracts to assist in determining whether the proposed insurance program meets the identifiable needs posed by the business risks. 5. Identify the CII staff members who will be servicing your policy needs. These staff members are charged with providing professional and timely responses once insurance is placed for our clients. 6. Schedule periodic stewardship visits with you in order to review changes and spedal service needs. 7. KeeP you abreast of insurance issues through CII's highly informative newsletters, Risk Manager and Finandal~ldvisor, and other special topical mailings. Your broker, account administrator, and the talented team at CII tailor their services to meet your specific needs. Many special services are offered, including: Insurance Summaries At your written request, CII will prepare summaries of your insurance policies highlighting the coverage provided by the insurers. These are reference and discussion documents only. It should be noted that the actual policies issued by insurers define the coverage and set forth the terms, conditions and exclusions. Another goal of our service plan is to assist clients by preparation of insurance information documents, such as computerized vehicle fleet schedules or spedal accident reporting forms. ~ ~OMPLETE INSURANCE INCORPORATED Certificates of Insurance CII will prepare Certificates of Insurance on your behalf for all parties doing business with the entities we have insured. Original certificates are mailed to the requesting certificate holder within 24 'hours unless special provisions are required. Copies are provided to you for reference. Lists of each clients certificate holders are available to them upon request. Contract Review As an on-going service, CII will examine leases, contracts, covenants, conditions and restrictions, reservations of easements, etc., as they relate to insurance events or liabilities for clients. In doing so, we are providing advice with respect to insurance only. We are unable to provide legal opinions or interpretations. 5~VOMPLETE INSURANCE INCORPORATED GENERAL RESPONSE POLICIES: WHY WRITTEN CONFIRMATIONS ARE ESSENTIAL IN INSURANCE TRANSACTIONS PLACING COVERAGE AND AMENDING POLICIES To the extent possible, CII creates a written record of all communications regarding the placement of coverage and amendments to insurance policies it places. Please do not attempt to amend policies or provide policy change requests through the voice mail system. Only written records protect our clients and protect the insurers with whom we place coverage. Therefore, CII will request written confirmation of insurance program changes from our clients. If you require additional copies of our reporting forms, please contact us. Claims Response and Service One of the most important services provided by an insurance broker is the response to claims. We submit claims forms to insurers and assist our clients in completing reports. Please be aware that certain claims must be submitted within reporting periods specified by the policy. Contact us immediately if you or your employees are involved in an accident or receive a claim by a third party. W/'orker's compensation claims must be reported directly to the insurer b_y the employer. Once the initial report of a claim is received by the broker or account administrator, the ongoing steps to closing a claim are managed by CII's Claims Department. If you require information about a claim, please contact your account administrator. Written summaries of the status of client claims are available through CII's computerized claims status system. WE'RE ALWAYS AVAILABLE TO SERVE YOU! Monday through Friday 8:30 a.m. to 5:00 p.m. (PST) Phone (949) 263-0606 Main Fax (949) 263-0906 See the Service Team Page for specific e-mail and fax information In case of emergency call the rapid response numbers provided by your broker It's quick, it's easy, and it will make you feel better right away. Now clients of Complete Insurance Inc. (CII) can receive prompt and reliable answers to a variety of legal questions simply by calling our Legal Assistance Helpline. The Helpline is staffed during business hours Monday through Friday by the friendly and competent attorneys at the law firm of Allie & Schuster. We at CII view this complimentary service as one more way to help you find the answers you need. The attorneys at Allie & Schuster are prepared to help you with: · [] · · · · Concerns related to lease issues Indemnity and hold harmless agreements Claims issues including the obligation to defend and indemnify Workers' Compensation discrimination claims Contract review Construction defect claims/issues General business law Employment labor issues Wrongful termination, discrimination and harassment CII's Legal Assistance Helpline will provide quick answers to your basic questions on a complimentary basis. More complex issues may require in-depth study, requiring that a fee be charged. Give our Helpline a try--and cure your legal headaches today. Helpline hours are 8:30 am to 4:30 pm (PST) Monday through Friday. Be prepared to identify yourself as our client and give your company name when you call. Use of this service is reserved exclusively for our clientele. )MPIETE INSUR CE INC. Professional Brokers of Commercial Insurance Newport Beach, California · Phone 949.263.0606 · www. CompleteInsurance.com DOI#0437762 Now our clients can receive immediate, personalized counseling on questions related to employment procedures and law just by calling our new Human Resources Management Helpline. The Helpline is staffed by a team of Human Resources experts (The Human Resources Management Network) and is complimentary to our clients. Counselors are prepared to help you with: · Pre-employment practices · Harassment · Compensation and benefits · Inspection of personnel files · Pregnancy leave · Regulation compliance · Discipline and discharge · Employee relations · I-9 Forms · Disability leave In addition, you'll receive access to forms, postings and legal analyses by mail or fax. You'll get professional advice on the implementation of HR programs, policies, procedures, legal trends and management practices. And to keep you updated, callers will receive a newsletter containing current technical and legal information. Using the helpline is simple--so give it a try today! Human Resources Management Helpline 800.945.3812 Available to our clients only. Be prepared to identify yourself as our client and give your company name when you call. Then ask your toughest question/ OMPIETE INSURANCE INC. _ Professional Brokers of Commercial Insurance 1500 Quail Street · Newport Beach, CA 92660 ° 949.263.0606 www. Completelnsurance.com ~OMPLETE INSURANCE INCORPORATED ACCOUNT SERVICE TEAM Broker Richard W. Hyland Account Manager Sherrill Barton Claims Department Ingrid Seiver Employee Benefits Department Suzanne Purnell Gerry Magnaghi Backup Assistance Kristen Kang Barbara Burns Emergency Access Richard Hyland Voice: (949) 263-0606, ext. 16 Fax: (949) 809-2334 Email: RHyland~completeinsurance.com Voice: (949) 263-0606, ext. 19 Fax: (949) 809-2342 Email: SBarron~completeinsurance.com Voice: (949) 263-0606, ext. 54 Fax: (949) 809-2325 Email: ISeiver~completeinsurance.com Voice: (949) 263-0606, ext. 52 Email: SPurnell~completeinsurance.com Voice: (949) 263-0606, ext. 58 Email: GMagnaghi~completeinsurance.com Voice: (949) 263-0606, ext. 21 Email: KKang~completeinsurance.com Voice: (949) 263-0606, ext 33 Email: BBurns~completeinsurance.com Home: (949) 551-1250 I I I I I I I I (GHLYPROFESSIONAL SERVICE WITH INTEGRITY ~OMPLETE INSURANCE INCORPORATED THE CITY OF TUSTIN POLLUTION AND REMEDIATION LEGAL LIABILITY POLICY CLAIMS MADE INSURER: BEST RATING: POLICY TERM: INDIAN HARBOR INSURANCE COMPANY A+XV TO BE DETERMINED COVERAGE A- POLLUTION LEGAL LIABILITY (PLL) - THIRD PARTY LEGAL LIABILITY CLAIMS INCLUDING ON - SITE AND OFF-SITE BODILY INJURY AND PROPERTY DAMAGE. COVERAGE B - REMEDIATION LEGAL LIABILITY - REMEDIATION EXPENSE FROM POLLUTION CONDITIONS ON~ AT~ UNDER OR EMANATING FROM THE COVERED LOCATIONS. COVERAGE C - LEGAL DEFENSE EXPENSE - LEGAL DEFENSE EXPENSE ARISING FROM ON-SITE AND OFF-SITE LOSS OR IN CONNECTION WITH REMEDIATION EXPENSE. COVERAGE D - CONTINGENT TRANSPORTATION - PAYS FOR LOSS OR REMEDIATION EXPENSE AS A RESULT OF A CLAIM FROM POLLUTION CONDITIONS ARISING FROM THE INSURED~S PRODUCT/WASTE DURING THE COURSE OF TRANSPORTATION. THE POLICY RESPONDS TO LOSS~ REMEDIATION EXPENSE OR LEGAL DEFENSE EXPENSE IN EXCESS OF THE RETENTION AMOUNT. This insurance proposal and/or coverage summary does not alter, extend or amend the policy or policies as issued. The insurance is subject to actual policy conditions and exclusions. ~OMPLETE INSURANCE INCORPORATED POLICY FORM: POLLUTION AND REMEDIATION LEGAL LIABILITY COVERED LOCATIONS: 1) PORTION OF PARCEL #13931 (MAKENA PROPERTY, WHERE CONSTRUCTION IS CURRENTLY UNDERWAY FOR A STARBUCKS COFFEE SHOP) AND 2) PORTION OF PARCEL #13922 (PANKEY PROPERTY, WHERETHERE IS CURRENTLY A WENDY'S RESTAURANT) LIMITS OF LIABILITY: OPTION A) $5,000,000 PER OCCURRENCE AND $5,000,000 IN THE AGGREGATE. OPTION B) $ $10,000,000 PER OCCURRENCE AND $10,000,000 IN THE AGGREGATE SELF INSURED RETENTION: $100,000 PER OCCURRENCE POLICY TERM OPTION- FIVE ($) YEARS OPTION - TEN (10) YEARs 1. 2. Limit of Liability - Each Loss, $5,000,000 $10,000,000 Remediation Expense or Legal Defense Expense Limit of Liability- total All Losses Remediation Expenses or Legal Defense Expenses Retention $100,000/Occ $100,000/Occ Policy Premium - 5 Years $81,400' $114,136' Policy Premium - 10 Years $146,692' $205,686* * Plus Applicable Taxes and Fees ~ 3.25% PREMIUMS This insurance proposal and/or coverage sunumry does not alter, extend or amend the policy or policies as issued. The insurance is subject to actual policy conditions and exclusions. ~OMPLETE INsURANcE INCORPORATED Premium Indication Notes: · This indication is intended to be preliminary, subject to receipt of review of further engineering data. · This premium indication is based on the Pankey and Makena parcels being sold "as is". · The property will not be acquired by the City of Tustin through "eminent domain" fight. · An Easement agreement does not exist as respects the acquisition of these Covered Locations. · This coverage is based on the Wendy's Restaurant and Starbucks Coffee Shop not being additional insureds. · It is XL Environmental's understanding that there is no indemnification agreements between current owners of Wendy's Restaurant and the Starbucks Coffee Shop and the prior gasoline station retailers on these same sites, separate from the parcels noted above. Nor, is there, or will there, be any indemnification between the Wendy's Restaurant and the Starbucks Coffee Shop and the City of Tustin for purchase of these parcels of land for the Redhill Avenue Road Widening Project. · Coverage is intended to apply only to pollution conditions including on-site and off-site remediation expense, third party on-site and off-site bodily injury and property damage. · Coverage is not intended for known pollution conditions or remediation of fuel constituents at the covered locations. · CoVerage is not intended for pre-existing pollution conditions from the Wendy's Restaurant, the Starbucks Coffee Shop, or its prior owners. · Coverage does not include ongoing operations performed either by the Wendy's Restaurant, the Starbucks Coffee Shop. · Coverage is not intended to cover any pollution conditions arising from the operations performed by the Contractors during the Construction Project, which shall include the actual Redhill Avenue road widening. · A retroactive date of policy inception will apply for this project. · The final quotation will be valid for thirty (30) days at which time XL Environmental has the right to re-evaluate the proposed program and premiums. · A completed PARLL application would be needed prior to binding. To develop a more formal quotation, XL Environmental would need the following information: · Signed Final Copy of the Purchase Agreement and Grant Deed executed by the Property Owners(s) and the City of Tustin, or as feasible the Draft Purchase Agreement. · Written documentation that there are no prior indemnification agreements between the owners of the Wendy's Restaurant and the Starbucks Coffee Shop and the prior respective retail gasoline station owners. · Legal descriptions of Parcels comprising the Covered Locations. · Final Indemnification Agreements related to the "southern parcels". · Written documentation that the City of Tustin has not waived any of its subrogation rights against any third parties. · Documentaton that the City of Tustin has waived its rights of subrogation against the owner of the Wendy's and Starbucks. · Confirmation of the timeframe of the Construction Project. SB This insurance proposal and/or coverage summary does not alter, extend or amend the policy or policies as issued. The insurance is subject to actual policy conditions and exclusions. ~OMPLETE INSURANCE INC. (GHLYPROFESSIONAL SERVICE WITH INTEGRITY ~OMPLETE INSURANCE INCORPORATED THE CITY OF TUSTIN PREMIUM SUMMARY Po~ufion and Reme&afion Legal habi~ Po~cy yive Ye~s) $81,400 $5,000,000 per occ~rence and $5,000,000 in ~e A~regate Ad&fional Options DetMled in Proposal Subtotals: $81,400 Taxes and Fees: $ 2,646 Total Prem~: $84,046 ~VOMPLETE INSURANCE INCORPORATED BESTt S RATING CII attempts to avoid placing insurance with any insurance company of questionable financial or managerial integrity. We use information obtained by the A.M. Best Company and other sources to monitor the character of the various companies. The A.M. Best Company evaluates insurance companies on the basis of general management and assigns one of nine ratings: A++ and A+ = Superior C and C- = Weak A and A - Excellent D = Poor B++ and B+ = Very Good E = B and B- = Fair F = C++ and C+ = Marginal S = Under Regulatory Supervision In Liquidation Rating Suspended Also considered by A.M. Best Company is the financial size of insurance companies to which 15 categories are assigned: (In Thousands of Dollars) Class I Up to $1,000. Class II 1,000. to 2,000. Class III 2,000. to 5,000. Class IV 5,000. to 10,000. Class V 10,000. to 25,000. Class VI 25,000. to 50,000. Class VII 50,000. to 100,000. Class VIII 100,000. to 250,000. Class IX 250,000. to 500,000. Class X 500,000. to 750,000. Class XI 750,000. to 1,000,000. Class XII 1,000,000. to 1,250,000. Class XIII 1,250,000. to 1,500,000. Class XIV 1,500,000. to 2,000,000. Class XV 2,000,000. and above The size category is based on reported policyholders surplus plus conditional or technical reserve funds such as mandatory securities valuation reserve, other investment and operating contingency funds and miscellaneous voluntary reserves reported as habilities. To make a clear distinction between a company's Best's Rating and its Financial Size Category (FCS), the FCS is represented by Roman numerals ranging from Class I (the smallest) to Class XV (the largest). This insurance proposal and/or coverage summary does not alter, extend or amend the policy or policies as issued. The insurance is subject to actual policy conditions and exclusions.