1/4/1985 . 10'7
r�ZINUTES OF A � �
SPECIAL MEETING OF THE CITY COUNCIL
. CITY OF ROLLING HILLS
. January 4, 1985
A special meeting of the City Council of the City of Rolling Hills
was called to order at the Administration Building, 2 Portuguese Bend
� Road, Rolling Hills, California by Mayor Leeuwenburgh at 7 : 00 a.m..
Friday, January 4, 1985.
PRESENT : Councilmembers Heinsheime�r; Murdock, Swanson �
Mayor Leeuwenburgh
ABSENT: Councilman Pernell (arrived at 7 : 05 a.m. }
ALSO PRESENT: Joseph Leach City Manager �
Michael Jenkins City Attorney
June Cunningham � Deputy City Clerk
Michael Bush Ca1-Surance
William Stringfellow R:H..C:.A. Board of Directors
� Richard Esposito Palos Verdes Peninsula News�
QPURPOSE ;OF SPECIAL MEETING •
�L, Mayor Leeuwenburgh said the special meeting was called pursuant
m to Section 54956 of the Government Code of the State of California for
Q the purpose of discussing renewal of municipal property and liability
insurance; staff� request regarding closing City .Hall between Christmas
Day and New Year' s Day, 1985 ; and participation by the City in Youth on
Parade on Saturday, January 5, 1985, as set forth in the agenda for the
special meeting. :
MUNICIPAL PROPERTY AND LIABILITY INSURANCE. RENEWAL 25
The City Manager reported that since receipt of notification from �
Landmark Insurance Company that the City's Municipal General Liabilitys
Praperty and Automobile insurance would be cancelled effective, l2 : Ol a.m.
January 8, 1985, efforts have been made. to obtain coverage, including� a �
meeting with brokers of Cal-Surance, and he said Michael Bush, Vice-
president of Cal-8urance was present at the meeting to advise the City
Council of his efforts:��to-:-obtain -coverage, and what has resulted.
Mr. Bush advised the Council that many cities are having a problem
obtaining coverage; since the major markets are leaving the field of
munic'ipal insurance, and the remaining compariiesare reacting by- ra.ising �
their rates. from 300'/o to 600Q/,.. He said a study of companies writing � -
municipal insurance was made in .mid=November, and a recent study indi•-
cated that there are fewer such companies at this time. A request for
a bid for coverage for Rolling Hills has been submitted, and Mr. Bush
said Cal-Surance is waiting to hear from the companies contacted. A
copy of the expected proposal was distributed to Council members, and
Mr. Bush explained that the difficulty in obtaining coverage is in- . .
creased by bad publicity regarding landlside conditions in the City,
which c.ould result in inadequate coverage to cover claims in addition
to .court costs in litigati,on related to the slide. Further, he said
it is expected that the quotes received will not include clubs such as
the Women' s� Club, Tennis Club and Caballeros, and that the named in- .
sured will be the City of Rolling Hills and the Rolling Hills Community
Association. He said it is his belief that a carrier will not inciude
land movement in the coverage, but will require a claims administration
company, at a minor additional sum, and he said coverage of staff,
Council and Board members, etc. will remain the same. Mr . Bush said he
eYpects to receive a quote later today, and it is possible that he will .
be requested to advise immediately whether it will be accepted. He
suggested the Council provide for immediate approval, if needed.
Councilman Pernell asked whether there have been any claims ivith
regard to Caballeros .or other organizations . Mr. Bush said he knows
of no losses in connection with Caballer.os , Tennis Club or Women' s
Club; he said if they are not coverecl by the City' s policy those
organizations should make arrangements for their own coverage.
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January 4, 1985 .
Mr. [ailliam Stringfellow, member of the Board of Directors of .
the Community Association, said he has had extensive, insurance exper-
ience, and he advised the Council that he agrees with the statements
Mr. Bush has made�.�. Councilman Pernell said he would prefer to have
different bids for comparison purposes ; Councilwoman Murdock asked -
that copies of last year' s insurance coverage be provided. Councilman
Heinsheimer said that since a member of. the Boar.d of Directors is
present for Mr> Bush' s presentation; and is also experienced in the
insurance field, he thought the Mayor should be authorized to consult
with Mr . Stringfellow when a bid has been received, and to act on be-
half of the Council. Mayor Leeuwenburgh. said she would consult with `
members. of the City Ccuncil by phone before giving an answer to Mr. .
Bush. . .
Councilwoman Murdock expressed. her concern about lack of coverage _
for subsidence. `-The City Attorney asked whether consideration had
been given to coverage with a large self-insured provi�.ion. Mr. Bush - : �..
said he had approached the market with an attempt to obtain coverage -
for land subsidence, but no:. one was interested or willing to provide
such coverage. Councilman Pernell noted that even though the major _
liability is beirig� eliminated, ,.there is still a three-fold increase
� in premium, and he said the City should not act without approval by .
� the Board of Directoxs of the Community Association. Mr. Bush said :-
premiums for municipal insurance are three to six times higher than
previously, and elimination of . the Association would have a minimal
effect on the premium for. the City` s coverage. Mr. Stringfellow asked
whether events held in the conmmunity including marathons, triathlons,
etc, make it more difficult to obtain coverage. Mr. Bush said all
coverage is difficult to obtain. Councilwoman Swanson asked whether:- -
the County is having similar problems . Mr: Bush said the County is
self-insured. Councilwoman Swanson asked whether the City could _
"piggy-back" on the County' s insurance since the County acts as the `
City' s advisory agency. The City Manager said that was investigated
by cities several years ago, and the Joint Pcwers Authority was formed - �
as a result. Councilman Pernell said it is evident that there are no
real options for the City to consider. The City Attorney agreed that
the situation has been clearly presented. Mr. Stringfellow said that
on behalf of the Board he wished to state that the .Board would go .
along with the decision made by the City Council. The City Attorney _
said the Council should give direction regarding quotes , . or risk .
losing insurance coveragea -
Councilman Heinsheimer moved that the Mayo 'r. :be autho;rized to make
. a decision upon notificat�ion; by .the broker that. a bid has :been received
and that she may ca�:l Council members �f she wishes to do so . . The motion
was seconded by Councilwoman Murdock and carried by the following roll .
call vote: �
AYES . Councilmembers HeinsY�eimer� Murdock, Pernell, Swanson
Mayor Leeuwenburgh
NOES : None
ABSENT: None
YOUTH ON PARADE 764 „
Mayor Leeuwenburgh reported that the Youth on Parade will start
at 11 : 00 a.m. and the Rolling Hills Council has been assigned Unit
��26 in the annual parade. She asked that Council members assemble
at 10 : 00 a.m. Saturday, January 5 , in a designated area in Peninsula Cei .r.
STAFF REQUEST RE• CLOSING CITY HALL BET�JEEN CHRISTMAS AND NEW YEAR'S DAY
Mayor Leeuwenburgh reported that City and Association staff had
requested that consideration be given to closing City Hall :€or four .
days between Christmas and New Year' s Day, and to remain open on four
current holidays during the year. A memo dated January 3 , 1985 from
the Association Manager was presented, reporting the activity which
l�.ad taken place during tYie 1984 holiday season, when activity in the
office was monitored at the request of the Council . The Mayor .reported
that in discussing the staff request with the President of the Board
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� January 4, 1985
of Directors she was advised that the request had not been presented �o
the Board. The matter of holiday closings was referred to the City
� Manager - � � � . . � - .. � - .. . �
ADJOURNMENT
The .meeting .was adjourned at. 8 : 10 a.m, to a personnel.:sessionb - °. ;
at 7 : 00 p.m. Monday, January 14, 1985 , to be followed by the regular
Council meeting at 7 :30 p.m.
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City Cle k
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� APPROVED:
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