Title
Recommendation to Authorize the City Attorney to Bind Pollution Legal Liability Insurance Coverage for 10-Years for Alameda Point with Ascot in an Amount Not to Exceed $529,776. (Community Development 858)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The City's current insurance coverage for pollution legal liability at the former Naval Air Station will expire on March 21, 2021. New coverage is important to help protect the City against potential pollution liability claims and encourage future development in the area. Staff engaged in a competitive process to award the next ten-year insurance coverage contract and received four quotes. Staff is recommending coverage placement with Ascot Group for a ten year policy with limits of $25 million per incident and $25 million for the policy aggregate. The amount for this contract is not to exceed $529,776.
BACKGROUND
In 2001, the Alameda Reuse and Redevelopment Authority (ARRA) purchased a ten-year Pollution Legal Liability (PLL) insurance policy from the insurance carrier AXA XL (then known as XL) to address personal injury, property damage, remediation costs and defense costs arising from pollution conditions at the former Naval Air Station Alameda, commonly referred to as Alameda Point. The ten-year policy, which cost $681,014 in 2001, expired on March 21, 2011. In March 2011, ARRA purchased another PLL insurance policy from AXA XL. This second 10-year policy, which cost $720,112, will expire on March 21, 2021. On January 31, 2012 ARRA transferred their rights, assets, obligation, responsibilities, duties and contracts to the City of Alameda (City). On February 1, 2012 local redevelopment agencies across California came to a formal end. No claims have been made against the City's policy since coverage was first obtained in 2001.
DISCUSSION
It is important that the City maintain PLL coverage to protect itself from liability and to facilitate redevelopment on Alame...
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