Loading...
HomeMy WebLinkAbout04 - Solid Waste Franchise FeesCouncil Agenda Item No. 4 February 12, 2002 TO: Mayor and City Council FROM: General Services Director SUBJECT: Amendment to the Newport Beach Municipal Code allowing the City Council to waive the collection of certain solid waste franchise fees Recommendation Adopt the Ordinance No. 2002 -5 amending Section 12.63.140 of Title 12 of the Newport Beach Municipal Code Pertaining to Exclusions of the Solid Waste Management Ordinance. Background Please refer to Agenda Item #4 of the January 22, 2002 City Council Agenda for more background information and discussion regarding the proposed Municipal Code amendment. Very respectfully, David E. Niederhaus F: \Usem\GS WHammond\Staff Reports \021202ublicHcaringAmendNPMC.doc ;, - �NEwpORr O 6� a TO: FROM: Mayor and City Council General Services Director Council Agenda Item No. 4 January 22, 2002 t{ a -)2 -oa SUBJECT: Amendment to the Newport Beach Municipal Code allowing the City Council to waive the collection of certain Solid Waste franchise fees Recommendation That the attached Ordinance No. 2002 -_ amending Section 12.63.140 of Title 12 of the Newport Beach Municipal Code be introduced for a First Reading. It is recommended that Council adopts the Ordinance amending the Section at the conclusion of the February 12, 2002 public hearing. Background One of the ways that staff has developed to manage solid waste operations and ensure meeting the State recycling mandate is through the issuance of non - exclusive solid waste franchises to solid waste haulers and demolition contractors who apply to operate within the City. In addition to mandating the recycling requirements for private haulers, the franchise stipulates a franchise fee to be paid to the City which funds environmental insurance premiums, administrative work, and road and alley repairs associated with the franchise operation. Waste Management of Orange County (WMOC), a current franchised hauler, will be entering into an agreement with the City to provide residential refuse and recycling services to the recently annexed Newport Coast area. Discussion In its agreement with WMOC, the City of Newport Beach will pay for residential refuse collection for the residents of Newport Coast. As a franchised hauler, WMOC is required to pay a franchise fee to the City. The current fee is 16% of the haulers gross paid receipts. Most franchised haulers, including WMOC, add this fee to their customer invoices. Given that the City will be the customer in this case, staff is recommending that WMOC and other franchised haulers contracted with the City to provide solid waste collection services, be exempted from the payment of franchise fees on receipts associated with a City contract. F: Uscn \GS W HsmmondSmR RepmmloI 2202AmcndNPMC.dx Section 12.63.140 of the Newport Beach Municipal Code lists various exclusions to the Solid Waste Management Ordinance. The attached proposed amendment to Section 12.63.140 of Title 12 will waive the payment of franchise fees under contracts approved by the City Council to provide solid waste services for the City. Very respectfully, David E. Niederhaus Attachment: (1) Ordinance No. 2002 - amending Section Newport Beach Municipal Code Pertaining Waste Management Ordinance F: \Uscm\GS W Hammond\Smff Reports\o12202AmendNFMC.doc a 12.63.140 of Title 12 of the to Exclusions of the Solid ORDINANCE NO. 2002 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AMENDING SECTION 12.63.140 OF TITLE 12 OF THE NEWPORT BEACH MUNICIPAL CODE PERTAINING TO EXCLUSIONS OF THE SOLID WASTE MANAGEMENT ORDINANCE WHEREAS, the City of Newport Beach adopted Municipal Code Chapter, 12.63 requiring solid waste haulers to be franchised by the City of Newport Beach. WHEREAS, Chapter 12.63.070 of the Newport Beach Municipal Code provides for the imposition and collection of franchise fees. WHEREAS, staff has determined that the imposition of a franchise fee on a hauler working under a City contract providing solid waste handling services is not necessary since this cost would be passed on to the City. THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DOES ORDAIN AS FOLLOWS: SECTION 1. Subsection C is hereby added to Section 12.63.140 of Title 12 of the Newport Beach Municipal Code as follows: 12.63.140 Exclusions. C. Franchise Fee Exclusion. Payment of franchise fees pursuant to Section 12.63.070 are waived under any contract approved by the City Council to provide commercial solid waste handling services for the City. SECTION 2. That if any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. SECTION 3. This Ordinance shall be published once in the official newspaper of the City, and the same shall be effective thirty (30) days after the date of its adoption. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the _ day of , 2002, and was adopted on the _ day of , 2002, by the following vote to wit: AYES, COUNCIL MEMBERS NOES, COUNCIL MEMBE ABSTAINED, COUNCIL MEMBERS ABSENT, COUNCIL MEMBERS MAYOR ATTEST: F:\Users\GSV\JHammond\Ordinance\Ord—NPMC.doc PUBLIC RESOURCES CODE SECTION 41900 -41904 41900. Each city and county shall demonstrate a funding source, or sources, available to pay for preparing, adopting, and implementing the element or plan, as required by this part. 41901. A city, county, or city and county may impose fees in amounts sufficient to pay the costs of preparing, adopting, and implementing a countywide integrated waste management plan prepared pursuant to this division. The fees shall be based on the types or amounts of the solid waste, and shall be used to pay the actual costs incurred by the city or county in preparing, adopting, and implementing the plan, as well as in setting and collecting the local fees. In determining the amounts of the fees, a city or county shall include only those costs directly related to the preparation, adoption, and implementation of the plan and the setting and collection of the local fees. A city, county, or city and county shall impose the fees pursuant to Section 66016 of the Government Code. 41902. A local agency may directly collect the fees authorized by this chapter or may, by agreement, arrange for the fees to be collected by a solid waste hauler providing solid waste collection for the city or county. 41903. A city or county may assess special fees of a reasonable amount on the importation of waste from outside of the county to publicly owned or privately owned facilities. No city or county shall export solid waste to any other jurisdiction unless the exporting city or county has, within one year following the date U(d , RELIANCE INSURANCE COMPANY OF ILLINOIS FREEPORT, ILLINOIS NAMED CITY OF NEWPORT BEACH �.(S: CA L - S U RAN C E INSURED 3300 Newport Boulevard AND Newport Beach, CA 92659 P.O. Box 7048 POST OFFICE Orange, CA 92613 -7048 POLLUTION AND REMEDIATION LEGAL LIABILITY DECLARATIONS v THIS IS A CLAIMS -MADE POLICY -- PLEASE READ CAREFULLY i POLICY NUMBER: NTL2512644 Item 1: NAMED INSURED CITY OF NEWPORT BEACH i Item 2: POLICY PERIOD N. ADDRESS 3300 Newport Boulevard N V 12:01 A.M. standard time at the address of the NAMED INSURED shown `; Newport Beach CA 92659 w �� :. $10,000,000 TOTAL ALL LOSSES or REMEDIATION EXPENSES Item 4: RETENTION $50,000 each LOSS or REMEDIATION EXPENSE Item 5: COVERED LOCATION(S): See Endorsement R1 ,�:• Item 6: POLICY PREMIUM $278,445 Item 7: EXTENDED DISCOVERY DATE January 31, 1996 ENDORSEMENTS ATTACHED TO THIS POLICY: Endorsements A1, 2, 3, 4, 5, 6, 7, 8 Broker: Cal- Surance Associates 333 City Boulevard Weat, Suite 1000 P. O. Box 7048 Orange, CA 92613 -7048 Authorized Representative VO /mmb 2/22/96 Item 2: POLICY PERIOD N. FROM January 31, 1996 TO January 31, 1999 12:01 A.M. standard time at the address of the NAMED INSURED shown `; above. .•J Item 3: LIMIT OF LIABILITY, up to $10,000,000 each LOSS or REMEDIATION EXPENSE $10,000,000 TOTAL ALL LOSSES or REMEDIATION EXPENSES Item 4: RETENTION $50,000 each LOSS or REMEDIATION EXPENSE Item 5: COVERED LOCATION(S): See Endorsement R1 ,�:• Item 6: POLICY PREMIUM $278,445 Item 7: EXTENDED DISCOVERY DATE January 31, 1996 ENDORSEMENTS ATTACHED TO THIS POLICY: Endorsements A1, 2, 3, 4, 5, 6, 7, 8 Broker: Cal- Surance Associates 333 City Boulevard Weat, Suite 1000 P. O. Box 7048 Orange, CA 92613 -7048 Authorized Representative VO /mmb 2/22/96 ENDORSEMENT #1 This endorsement, effective 12t01 a.m., January 31, 1996 forme a part of Policy No., NTL2512644 issued to CITY OF NEWPORT BEACH by Reliance Insurance Company of Illinois. COVERED LOCATIONS ENDORSEMENT In consideration of the premium paid, it is agreed that Jfhie Policy applies to LOSS or REMEDIATION EXPENSES arising from POLLUTION ONDITIONS on, at or emanating from the following Covered Location(a) only: Civic Centert City Hall, Newport Beach, CA Police Station, Newport Beach, CA Professional Building, Newport Beach, CA Fire Stations: Balboa Boulevard, Newport Beach, CA Headquarters #2, Newport Beach, CA Jamboree and Santa Barbara #3, Newport Beach, CA Balboa Island #4, Newport Beach, CA Corona del Mar #5, Newport Beach, CA Irvine Avenue #6, Newport Beach, CA Marine: Lifeguard Headquarters, Newport Beach, CA Libraries: Balboa, Newport Beach, CA ' Corona del Mar, Newport Beach, CA Mariners, Newport Beach, CA Multipurpose Room at Mariners, Newport Beach, CA Central Library, Newport Beach, CA 4arehOUBe, Newport Beach, CA lmerican Legion Property, Newport Beach, CA leacon Bay, Newport Beach, CA :ity Yard, Newport Beach, CA 19th, Newport Beach, CA :hina Cove Lots, Newport Beach, CA 7 Street Beach Lots, Newport Beach, CA !6th Street Parking, Newport Beach, CA talboa Parking Lot, Newport Beach, CA 'alm Street Lot, Newport Beach, CA Page 1 of 3 Endorsement /1 (continued) Ocean Front Parking Lot, Newport Beach, CA Corona del Mar Beach Parking Lot, Newport Beach, CA Corona del Mar Beach Concession, Newport Beach, CA Corona del Mar Beach Restroome, Newport Beach, CA 15th Street Restroome, Newport Beach, CA 19th Street Restroome, Newport Beach, CA Washington Street Restroome, Newport Beach, CA Balboa Pier Restroome, Newport Beach, CA Newport Pier Restroome, Newport Beach, CA West Newport RestroomB, Newport Beach, CA Orange and Seashore Restroome, Newport Beach, CA Voluntary Action Center (VAC), Newport Beach, CA Channel Place Park, Newport Beach, CA Newport Island Park, Newport Beach, CA 38th Street Park, Newport Beach, CA Cliff Drive Park, Newport Beach, CA Mariners Mile Park, Newport Beach, CA Galaxy Park, Newport Beach, CA Westcliff Park, Newport Beach, CA Lae Arenas Park, Newport Beach, CA Lido Park, Newport Beach, CA Peninsula Park, Newport Beach, CA Eastbluff Park, Newport Beach, CA Irvine Terrace Park, Newport Beach, CA Community Youth Center, Newport Beach, CA Begonia Park, Newport Beach, CA Buck Gully Beach Park, Newport Beach, CA Buffalo Hills Park, Newport Beach, CA Balboa Bay Club Land Site, Newport Beach, CA 30th and Newport Parking Lot, Newport Beach, CA Boy Scout House, Newport Beach, CA Girl Scout House, Newport Beach, CA 15th Street Pier, Newport Beach, CA Newport Pier, Newport Beach, CA ` Balboa Pier, Newport Beach, CA Little Island Bridge, Newport Beach, CA Harbor Hills View Park, Newport Beach, CA . San Joaquin Hills Park, Newport Beach, CA Balboa Island Park, Newport Beach, CA Cliff Drive View Park, Newport Beach, CA Harbor View Nature Park, Newport Beach, CA Ensign View Park, Newport Beach, CA Balboa Island Park, Newport Beach, CA San Miguel Park, Newport Beach, CA Oil Well Facilities, Newport Beach, CA Balboa Yacht Basin, Newport Beach, CA North Ford Park, Newport Beach, CA Rings Road View Park, Newport Beach, CA West Newport Triangle, Newport Beach, CA Senior Citizen Facility, Newport Beach, CA Mariners Mlle Parking Lot, Newport Beach, CA Page 2 of 3 Endorsement fl (continued) Balboa Peninsula Lot, Newport Beach, CA West Newport Park, Newport Beach, CA Bayeide Drive Park, Newport Beach, CA Spyglass Hill Park, Newport Beach, CA Inspiration Point, Newport Beach, CA Bonita Creek Park, Newport Beach, CA 30th and Villa Parking Lot, Newport Beach, CA Galley Cafe, Newport Beach, CA West Newport Community Center, Newport Beach, CA Lincoln Athletic Field, Newport Beach, CA Balboa Parking Lot, Newport Beach, CA Reservoirat Big Canyon, Newport Beach, CA Spyglass Zone 2 & 3, Newport Beach, CA 16th Street, Newport Beach, CA San Joaquin, Newport Beach, CA All other terms and conditions remain the same. (AU horized Representative) VO /nmb 2/22/96 RNENVL -PRL -126 (6/94) Page 3 of 3 ENDORSEMENT #2 This endorsement, effective 12:01 a.m., January 31, 1996 forme a part of Policy No, NTL2512644 issued to CITY OF NEWPORT REACH by Reliance Insurance Company of Illinois. STANDARD ENDORSEMENT In consideration of the premium paid, it is agreed that Section IV. EXCLUSIONS is amended by the addition of the following exclusions: - Radioactive Matter Exclusion: the actual, alleged or threatened exposure of person(s) or property to any radioactive matter except where specifically endorsed onto the Policy. - Non -Owned Disposal Site Exclusion: from waste or materials transported via automobile, aircraft, watercraft or rolling stock beyond the boundaries of the covered locations identified in the Declarations. - Underground Tank and Underground Piping Exclusion: the presence or use of any underground tank or underground piping to or at the covered locations identified in the Declarations. Absolute Asbestos Exclusion: the presence or required removal, cleanup, encapsulation, or disposal of asbestos products, fibers, or asbestos duet. Superfund Exclusion: locations designated as being either proposed for or on the National Priorities List or on any state "Superfund" list unless specifically scheduled onto the Policy by endorsement. All other terms and conditions remain the game. (Authorized Representative) VO /mmb 2/22/96 RNENVL -PRL -100 (6/94) ENDORSEMENT #3 Thin endorsement, effective 12,01 a.m., January 31, 1996 forme a part of Policy No. NTL2512644 issued to CITY OF NEWPORT BEACH by Reliance Insurance Company of Illinois. THIRD PARTY ON-SITE BODILY INJURY COVERAGE ENDORSEMENT In consideration of the premium paid, it is agreed that Section IV. EXCLUSIONS, Exclusion #7 is deleted in its entirety and replaced as follows, based upon or arising as a result of PROPERTY DAMAGE to or at the location(s) designated in Item 5 of the Declaratione, even if such PROPERTY DAMAGE is incurred to avoid or mitigate PROPERTY DAMAGE which may be covered under this Policy; However, this Policy does not apply to LOSS arising from BODILY INJURY of any full- or part -time employee of the INSURED at the location(e) designated in the Policy. All other terms and conditions remain the same. ` (Authoz!fied Representative) VO /mmb 2/22/96 RNENVL- PRL-103a (6/94) ENDORSEMENT /4 This endorsement, effective 12:01 a.m., January 31, 1996 forme a part of Policy No. UTL2512644 issued to CITY OF NEWPORT BEACH by Reliance Insurance Company of Illinois. EXTENDED DISCOVERY PERIOD MODIFICATION In consideration of the premium paid, it in agreed that Section V. EXTENDED DISCOVERY PERIOD, Items 1 and 2, are deleted in their entirety and replaced as follows: V. EXTENDED DISCOVERY PERIOD The provisions of this clause shall only apply if a period of at least 12 months has elapsed from the date not forth in Item 7 of the Declarations when the NAMED INSURED seeks to exercise the option hereunder. The NAMED INSURED shall be entitled to an extension of this coverage on non - renewal or cancellation of the Policy subject to the following terms and conditions: 1. Where cancellation or non - renewal is by the Company, the NAMED INSURED shall be entitled to purchase 12 months extension from the date of cancellation or expiration of the Policy upon payment of an additional premium of not more than 100% of the premium shown in Item 6 of the Declarations. 2. Where cancellation or non - renewal is by the NAMED INSURED, the NAMED INSURED shall be entitled to purchase 12 months extension from the date of cancellation or expiration of the Policy upon payment of an additional premium of not more than 100% of the premium shown in Item 6 of the Declarations. The extension of coverage granted hereunder shall only apply as respects POLLUTION CONDITIONS existing as of or prior to the date of expiration or cancellation of this Policy, and otherwise covered by this Policy. It is a condition precedent to the operation of the rights granted under this clause that payment of the appropriate premium shall be made not later than ten days after expiration in the case of non - renewal or prior to cancellation in the case of cancellation. For purposes of this clause the quotation of different terms and conditions by the Company shall not be construed as non - renewal. All other terms and conditions remain the same. (Authorized Representative) VO /mmb 2/22/96 RNENVL -PRL -106 (6/94) ENDORSEMENT #5 This endorsement, effective 1201 a.m., January 31, 1996 forme a part of Policy No, NTL2512644 issued to CITY OF NEWPORT BEACH by Reliance Insurance Company of Illinois. UST COVERAGE In consideration of the premium paid, It is agreed that this Policy applies to LOSS or REMEDIATION EXPENSES arising from the following underground storage tankst All other terms and conditions remain the same. (Authorized Representative) VO /mmb 2/22/96 RNENVL -PHL -116 (6/94) Anniversary Size and content of tank(a) and location Date of Testing 12,000 gallon diesel tank at the City Yard May 1996 10,000 gallon gasoline tank at the City Yard May 1996 10,000 gallon gasoline tank at the City Yard May 1996 20,000 gallon gasoline tank at the Police Department May 1996 All other terms and conditions remain the same. (Authorized Representative) VO /mmb 2/22/96 RNENVL -PHL -116 (6/94) ENDORSEMENT ♦6 This endorsement, effective 12s01 a.m., January 31, 1996 forme a part of Policy No. NTL2512644 issued to CITY OF NEWPORT BEACH by Reliance Insurance Company of Illinois. ;ks In consideration of the premium paid, it is agreed that this Policy does apply to LOSS under Coverage A - Pollution Legal Liability and REMEDIATION EXPENSES Under Coverage 8 - Remediation Legal Liability arising from the NAMED INSURED'S liability arising from the disposal of waste or waste materials at the following non -owned disposal sites only: LOCATION(S): Bowerman Landfill Prima DeSecha Landfill / Brea O'Linda Landf 11 BEE Landfill E1 Sobrante Landfit Azuza Landfill( This endorsement is subject to the following conditions: 1) A sublimit of $2,000,000 each LOSS or REMEDIATION EXPENSE /52,000,000 total all LOSSES or REMEDIATION EXPENSES. Notwithstanding the above, the maximum Limit of Liability applicable for all LOSSES or REMEDIATION EXPENSES will not exceed the $10,000,000 per LOSS or REMEDIATION EXPENSE /$10,000,000 total all LOSSES or REMEDIATION EXPENSES Limit of Liability outlined in Item 3 of the Declarations. All other terms and conditions remain the same. (Authorized Representative) VO /mmb 2/22/96 HNDORSHMUT #7 This endorsement, effective 12x01 a.m., January 31, 1996 forme a part of Policy No. NTL2512644 issued to CITY OF NEWPORT BEACH by Reliance Insurance Company of Illinois. RETROACTIVE DATE WITH ONE COVERED LOCATION In consideration of the premium paid, it is agreed that a Retroactive Date of January 31, 1996 applies to thin Policy. This Policy does not apply to LOSS or REMEDIATION EXPENSE arising from POLLUTION CONDITIONS existing prior to the January 31, 1996 date. All other terms and conditions remain the same. (Authorized Representative) VO /mmb 2/22/96 RNENVL- PRL -115a (6/94) ENDORSENENT i8 This endorsement, effective 12:01 a.m., January 31, 1996 forme a part of Policy No. NTL2512644 issued to CITY OF NEWPORT BEACH by Reliance Insurance company of Illinois. SERVICE OF PROCESS The Commissioner of Insurance, is hereby designated the true and lawful attorney of the company upon whom may be served all lawful process In any action, suit or proceeding arising out of this policy. The Company further designates: Richard Radech Reliance National 77 Water Street, 21st Floor New York, NY 10005 as its agent in to whom such process shall be forwarded by the commissioner of Insurance. All other terms and conditions of this policy remain unchanged. (Authorized Representative) Vo /mmb 2/22/96 RNENVL -IL -3 (6/94) IMPORTANT INFORMATION TO In the event you need to contact someone about this Policy for any reason please contact your agent. If you have additional questions, you may contact the insurance company issuing this Policy at the following address and telephone numbers Consumer Relations Department Reliance Insurance Companies 4 Penn center Plaza Philadelphia, PA 19103 1- 800 - 441 -1652 If you have a problem with your insurance company, its agent or representative that has not been resolved to your satisfaction, please call or write to the Department of Insurance. consumer Affairs Division California Department of Insurance 600 South Commonwealth Avenue Los Angeles, CA 90005 1- 800 - 233 -9045 Written correspondence is preferable no that a record of your inquiry can be maintained. when contacting your agent, company or the Bureau of Insurance, have your Policy Number available. VO /mmb 2/22/96 RELIANCE INSURANCE COMPANY OF ILLINOIS FREEPORT, ILLINOIS (A Stock - insurance Company Herein Called the Company) POLLUTION AND REMEDIATION LEGAL LIABILITY POLICY This Is a Claims -Made and Reported Policy— Please Read Carefully In consideration of the payment of the premium set out In the Declarations and In reliance upon the statements contained In the Ap• ations attached hereto and made a part hereof and any supplemental materials and Informalion'submilled herewith, and subject to he terms and conditions of this Policy, the Company agrees with the NAMED INSURED as follows: I. INSURING AGREEMENT areas A - POLLUTION LEGAL LIABILITY demntfy, the INSURED against LOSS the INSURED has or will become legally obligated to pay as a result of CLAIMS first made against NSURED and reported to the Company, In writing, during the POLICY PERIOD, or EXTENDED DISCOVERY PERIOD, it applicable, 'OLLUTION CONDITIONS emanating from the location($) designated In Item 5 of the Declarations; or :rage 8 - REMEDIATION LEGAL LIABILITY demnily the INSURED for REMEDIATION EXPENSES as a result of POLLUTION CONDITIONS first discovered and reported by the 1RED to the Company, In writing, during the POLICY PERIOD or EXTENDED DISCOVERY PERIOD, it applicable, for POLLUTION DITIONS on or at the location(s) designated In item 5 of the Declarations. 11. DEFINITIONS NSURED means the NAMED INSURED and any director, officer, partner or employee thereof while acting within the scope of his /her lulies as such, OSS means: monetary awards or settlements of compensatory damages arising from: a. BODILY INJURY as defined herein, or b. PROPERTY DAMAGE as defined herein, and costs, charges and expenses Incurred in the Investigation, adjustment or defense of CLAIMS for such compensatory damages. JDILY INJURY means bodily In)ury, sickness, disease, mental anguish or shock sustained by any person, Including death resulting 3refrom caused by POLLUTION CONDITIONS emanating from the location(s) designated In Item 5 of the Declarations. IOPERTY DAMAGE means: physical Injury to or destruction of tangible property Including the resulting loss of use thereof; clean up costs; ` loss of use of tangible property that has not been physically injured or destroyed; provided that such physical Injury or destruction, clean up costs•andlor loss of use are caused by POLLUTION CONDITIONS emanating from locallon(s) designated In Item 5 of the Declarations. ICY PERIOD means the period set forth In Item 2 of the Declarations, or any shorter period arising as a result of cancellation. .LOTION CONDITIONS means the discharge, dispersal, release or escape of smoke, vapors, fumes, acids, alkalis, toxic nicals, liquids or gases, waste materials or other Irritants, contaminants or pollutants into or upon land, the atmosphere or any ircourse or body of water. IE0 INSURED means the person or entity designated as such In Item 1 of the Declarations. DMOBILE means a land motor vehicle, trailer or semi- trailer designed for travel on public roads, including any machinery or ap- tus attached (hereto. 'M means the assertion of a legal right alleging liability at responsibility on the part of the NAMED INSURED, arising out of _UTION CONDITIONS, and shall include but not necessarily be limited to lawsuits or petitions filed against the NAMED INSURED EDIATION EXPENSES means expenses incurred for the investigation, removal or treatment of POLLUTION CONDITIONS to ,lent required by ENVIRONMENTAL REGULATIONS. RONMENTAL REGULATIONS means any one or more of the following statutes or any subsequent amendments, and any other :able local or state regulations In effect as of the inception dale of this policy as specified In Item 2 of the Declarations: Com. nsive Environmental Response, Compensation and Liability Act of 1980 (CERCtA), Superfund Amendments and Reauthorize. cl of 1988 (SARA), Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1978 (RCRA), at WalerPoilullon Control Act, Toxic Substances Control Act (MCA), Clean Air Act. III. TERRITORY alloy only applies to CLAIMS or REMEDIATION EXPENSES arising from POLLUTION CONDITIONS In the United Slates. its territories :sessions or Canada and made or brought in the United States. Its territories or possessions or in Canada. IV. EXCLUSIONS isurance does not apply to LOSS or REMEDIATION EXPENSES: ased upon or arising out of POLLUTION CONDITIONS existing prior to the Inception of this policy, if any officer. director. partner r other employee of lt)e NAMED INSURED responsible for environmental affairs. control or complignce knew that such POLLUTION :ONDITIONS could have been expected to give rise to a CLAIM; ased upon or arising out of CLAIMS seeking non- pecuniary relief: ased upon or arising out of the ownership or operation of any "offshore facility" as defined in the Outer Continental Shelf Lands ,ct Amendments of 1978 or the Clean Water Act of 1977 as amended in 1978, or any "deepwater part" as defined in the Deepwater port Act of 1974, as amended, nor shall there be any coverage for liability resulting from emissions of drilling fluid, oil, gas or other uids from any oil. gas. mineral. water or geothermal well of any nature whatsoever: ased upon or arising out of any workers' compensation, unemployment compensation or disability benefits law or similar law: ased upon at arising out of injury to any employee of the INSURED if such Injury occurs during and in the course of said employment: •ased upon or arising as a result of liability of others assumed by the INSURED under any contract or agreement: .ased upon or arising as a result of BODILY INJURY or PROPERTY DAMAGE to or at the location(s) designated in Item 5 of the Declare - ions, even if such BODILY INJURY or PROPERTY DAMAGE is Incurred to avoid or mitigate BODILY INJURY or PROPERTY DAMAGE vhich may be covered under this policy: .ased upon or arising out of the ownership, maintenance, use, operation, loading or unloading of any automobile, aircraft, watercralt it rolling stock: .ased upon or arising from POLLUTION CONDITIONS on, at, or emanating from the location(s) designated In item 5 of the Declare - ions, it during the POLICY PERIOD such location(s) are said, leased, given away. abandoned. or operational control has been elinquished: 1. Under any Liability Coverage. to BODILY INJURY or PROPERTY DAMAGE 1. with respect to which an INSURED under this 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 24 resultingfrom the HAZARDOUS PROPERTIES of NUCLEAR MATERIALandwlth respect to which (a) anypersonororganiza- tion Is required to maintain financial protection pursuant to the Atomic Energy Act of 1954. or any law amendatory thereof, or (b) the INSURED Is, or had this policy not been Issued would be, entitled to Indemnity from the United Slates of America, or any agency thereof, under any agreement entered Into by the United Slates of America, or any agency thereof, with any person or organization. 3. Under any Liability Coverage. to BODILY INJURY or PROPERTY DAMAGE resulting from the HAZARDOUS PROPERTIES of NUCLEAR MATERIAL, if 1. the NUCLEAR MATERIAL (a) is at any NUCLEAR FACILITY awned by, or operated by or on behalf of, an INSURED or (b) has been discharged or dispersed therefrom: 24 the NUCLEAR MATERIAL iscontainedin SPENT FUEL or WASTE at anytime possessed, handled, used, processed, stored. transported or disposed of by or on behalf of an INSURED: or 34 the BODILY INJURY or PROPERTY DAMAGE 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 territories or possessions or Canada, this exclusion (3) ap- plies only to PROPERTY DAMAGE to such NUCLEAR FACILITY and any property thereat. As used in this exclusion: "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 (I) containing BYPRODUCT MATERIAL and (2) resulting from the operation by any person or organization of any NUCLEAR FACILITY inciuded within the definition of NUCLEAR FACILITY under paragraph (a) or(b)thereof: "NUCLEAR FACILITY" means 1. any NUCLEAR REACTOR. 2. any equipment at device designed or used for (1) separating the Isotopes of uranium or plutonium. (2) processing of utilizing SPENT FUEL, or (3) handling, processing or packaging WASTE, 1. any equipment or device used for the processing. fabricating or alloying of SPECIAL NUCLEAR MATERIAL if at anytime the total amount of such malerlal 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 plutonium or uranium 233 or anycombinallon thereof, of more than 250 grams of uranium 235. e. any structure. basin, excavation, premises at 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 an 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: "PROPERTY DAMAGE" includes all forms of radioactive contamination of property; based upon or arising out of goods of products manufactured. said. handled, distributed. altered or repaired by the INSURED or by others trading under his name Including anyy container thereof, or any reliance upon a representation of warranty made at any time with respect thereto, but only if the LOSS or REMEDIATION EXPENSE occurs away from premises owned. operated or leased to the INSURED or after physical possession of such has been relinquished to others: based upon or arising out of operations performed by or an behalf of the INSURED or reliance upon a representation of warranty made at anytime with respect thereto, but only If the LOSS or REMEDIATION EXPENSE occurs after such operations have been completed or abandoned and occurs away from premises owned. operated or leased to the INSURED, " OPERATIONS" include materials. parts or equipment furnished In connection therewith. OPERATIONS shall be deemed completed at the earliest of the following limes: a. When all operations to be performed by or on behalf of the INSURED under the contract have been completed. b. When all operations to be performed by or on behalf of the INSURED at the site of the operations have been completed, or C. When the portion of the workout of which the injury or damage arises has been put to its intended use by any person or organiza. tion other than another contractor or subcontractor engaged In performing operations for a principal as apart of the same project, due to PROPERTY DAMAGE to goods or products manufactured, sold, handled or distributed by the INSURED arising out of such goods or products or any part thereof, at due to PROPERTY DAMAGE to work performed by at an behalf of the INSURED arising out of the work or any portion thereof. or out of materials. parts at equipment furnished In connection therewith; arising Irom POLLUTION CONDITIONS based upon or attributable to the INSURED'S intentional, willful or deliberate noncompliance with any statute, regulation. ordinance, administrative complaint. notice of violation, notice letter. executive order. at instruction of any governmental agency at body; based upon or arising from any cerise deface. whether direct or indirect. of war. Invasion, act of foreign enemy. hostilities (whether war be declared or not), civil war. rebellion, revolution, Insurrection or military or usurped power, strike, riot or civil commotion: based upon or arising out of the existence. required removal or abatement of lead paint or naturally occurring radioactive materials, including but not limited to radon: based upon or arising out of costs or expenses of or In connection with any maintenance operation, capital expenditure or improve- ment to or at the location(s) designated In Item 5 of the Declarations: V. EXTENDED DISCOVERY PERIOD provisions of this clause shall only apply If a period of at least 12 months has elapsed from the dale set forth In Item 7 of the Declare. : when the NAMED INSURED seeks to exercise the option hereunder. NAMED INSURED shall be entitled to an extension of this coverage on non - renewal or cancellation of the policy subject to the follow - arms and conditions: Where cancellation or non - renewal Is by the Company. the NAMED INSURED shall be entitled to purchase 12 months extension from the date of cancellation or expiration of the policy upon payment of an additional premium of not more than 200% of the premium shown In Item 6 of the Declarations. Where cancellation or non - renewal Is by the NAMED INSURED, the NAMED INSURED shall be entitled to purchase 12 months ex- tension from the dale of cancellation or expiration of the policy upon payment of an additional premium of not more than 2000/a of the premium shown In Item 6 of the Declarations. extension of coveragge granted hereunder shall only apply as respects POLLUTION CONDITIONS existing as of or prior la the date .piratlon or cancellaton of this policy. and otherwise covered by this policy. It is a condition precedent to the operation of the rights led under this clause that payment of the appropriate premium shall be made not later than ten days after expiration in the case of renewal or prior to cancellation In the case of cancellation. )urposes of this clause the quotation of different terms and conditions by the Company shall not be construed as non - renewal. VI. LIMIT OF LIABILITY AND RETENTION policy is to pay 100% of any LOSS or REMEDIATION EXPENSES in excess of the retention amount stated in Item 4 of the Declare. . The talent on amount is to be borne by the INSURED and is not to be insured. All LOSS or REMEDIATION EXPENSES arising out a same or related POLLUTION CONDITIONS at any one location shall be considered a single LOSS or REMEDIATION EXPENSE. he Limit of Liability shown in Item 3 of the Declarations as applicable to "each LOSS or REMEDIATION EXPENSE" shall apply. act to the foregoing, the Company s total liability for all LOSSES or REMEDIATION EXPENSES during the POLICY PERIOD and in- rig the EXTENDED DISCOVERY PERIOD, if applicable, shall not exceed the Limit of Liability shown in Item 3 of the Declarations )plicable to the "Total for all LOSSES or REMEDIATION EXPENSES:' VII. REPORTING PROVISIONS n the event of a LOSS or REMEDIATION EXPENSE. Immediate written or oral notice containing particulars sufficient to identify the NSURED and also reasonably obtainable Information with respect to the lime, place and circumstances thereof, and the names and addresses of the Injured and of available witnesses. shall be given by of for the INSURED to the Company or any of its authorized agents. In the event of oral notice, the INSURED agrees to furnish a written report as soon as possible. f a CLAIM is made against the INSURED, the INSURED shall immediately forward to the Company every demand, notice, summons, )rder or other process received by the INSURED or the INSURED'S representative. Vo costs, charges or expenses shall be Incurred without the Company's consent which shall not be unreasonably withheld. The Company ;hall have the right but not the duly to designate legal counsel. The INSURED shall not admit liability or settle any CLAIM without he Company's consent. If the Company recommends a settlement of a CLAIM: a. for an amount within the retention and the INSURED refuses such settlement, the Company shall not be liable for any LOSS or REMEDIATION EXPENSE in excess of the retention: >. for a total amount in excess of the balance of the retention and the INSURED refuses such settlement, the Company's liability lot LOSS or REMEDIATION EXPENSE shall be limited to that portion of the recommended settlement and the costs, charges and expenses as of the INSURED'S refusal which exceed the retention and fall within the Limit of Liability. I. The Company shall have the right but not the duty to assume the ad ustmenl of any CLAIM. In case of the exercise of this rigght. the INSURES. on demand of the Company, shall promptly reimburse the Company for any element of LOSS falling within the INSURED'S retentions. The INSURED shall assist and cooperate with the Company. VIII. CONDITIONS INSPECTION AND AUDIT The Company shall be permitted but not obligated to inspect, sample and monitor on a continuing basis EFe I4SUF E b' p r�or operations, at any lime. Neither the Company's right to make inspections. sample and monitor not the actual undertaking thereof nor any report thereon shall constitute an undertaking, on behalf of the INSURED or others, to determine or warrant that property or operations are safe, healthful or conform to acceptable engineering practice or are in compliance with any law, rule or regulation, !. CANCELLATION This policy may be cancelled by the NAMED INSURED by surrender thereof to the Company or any of its author. ize agents or y mailing to the Company written notice staling when thereafter the cancellation shall be effective. This policy may be cancelled the Company by mailing to the NAMED INSURED at the address shown In this policy. written notice staling when not less than 30 days 10 days for non - payment of premium) thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice. The time of surrender or the effective dale and hour of cancellation slated in the notice shall become the and of the POLICY PERIOD. Delivery of such written notice either by the NAMED INSURED or by the Company shall be equivalent to mailing. 1. DECLARATIONS —By acceptance of this policy, the INSURED agrees that the statements in the declarations and application are his agreements an representations, that this policy is issued in reliance upon the truth of such representations and that this policy em- bodies all agreements existing between himself and the Company or any of its agents relating to this insurance. I. ACTION AGAINST COMPANY —No action shall lie against the Company unless, as a condition precedent thereto, there shall have een u comp lance with all of the terms of this Policy, nor until the amount of the INSURED'S obligation to pay shall have been final- ly determined either by judgement against the INSURED after actual trial or by written agreement of the INSURED, the claimant and the Company. Any person or organization or the legal representative thereof who has secured such Judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by lhls Policy. No person or organization shall have any right under this policy to join the Company as a party to any action against the INSURED to determine the INSURED'S liability, not shall the Company be Impleaded by the INSURED or his legal representative. Bankruptcy or Insolvency of the INSURED or of the INSURED'S estate shall not relieve the Company of any of its obligations hereunder. i. ASSIGNMENT. —This Policy shall be void if assigned or transferred without written consent of the Company. SUBROGATION —In the event of any payment under this Policy, the Company shall be subrogaled to all the INSURED'S rights of recovery thereol against any person or organization 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 a CLAIM to prejudice such rights. CHANGES— Notice to any agent or knowledge possessed by any agent or by any other person acting on behalf of the Company shall nat�iecl a waiver or a change In any part of this Policy or stop 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 farm a part of this Polity. SOLE AGENT The first NAMED INSURED in the Declarations shall act on behalf of all INSUREDS for the paymenlor return of premium, receipt and acceptance of any endorsement issued to form a part of this Policy, giving and receiving notice of cancellation or non - renewal, and the exercise of the rights provided In Section V. EXTENDED DISCOVERY PERIOD. CHOICE OF LAW —It is agreed that in the event of the failure of the Company to pay any amount claimed to be due hereunder, the ompany and t e INSURED, will submit to the jurisdiction of the State of New York, and will comp)y with all the requirements necessary to give such court jurisdiction, All matters arising hereunder Including questions related to the Interpretation, performance and en- forcement of this Policy shall be determined In accordance with the law and practice of the Slate of New York (notwithstanding New York's conflicts of law rules). Nothing In this clause constitutes or should be understood to constitute a waiver of the Company's right to remove an action to a United States District Court. OTHER INSURANCE—Where other valid and collectable Insurance is available to the NAMED INSURED for LOSSES or REMEDIA- TIONEXFE covered under the terms and conditions of the policy. the Company's obligation to the INSURED is as follows: a. This insurance shall apply as excess Insurance over any other valid and collectable insurance be It primary or excess; b. Where this insurance is excess over other valid and collectable insurance, the Company will pay only its share of the amount of LOSS or REMEDIATION EXPENSES, if any, that exceeds the total amount that all such other Insurance will pay for the LOSS or REMEDIATION EXPENSES in the absence of this insurance. APPLICATION —By acceptance of this Policy, the INSURED agrees that the statements In the application attached hereto and made a pa— rt�ereoT -and any supplemental materials and information submltted therewith, are representations, that they shall be deemed material, that this Policy Is Issued In reliance upon the truth of such representations, and that this Policy embodies all agreements existing between the INSURED and the Company, or any of its agents, relating to this insurance. WITNESS WHEREOF the Company has caused this policy to be signed by Its President and Secretary and countersigned on the Declare - ns by a duly authorized agent of the Company.