December 16, 1998

The Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, California 90012

Dear Supervisors:

CONTRACT WITH GALWAY INSURANCE COMPANY
FOR USE OF VEHICLE
(3 VOTES)

IT IS RECOMMENDED THAT YOUR BOARD:

1. Approve and instruct the Chairman to sign an agreement with Galway Insurance Company at no cost to County, for use of a 1998 Ford Expedition, VIN# 1FMEU1764WLA05277. The vehicle is for use by the Los Angeles County Sheriff's Department's Arson/Explosives Detail, effective upon Board approval and terminating when mutually agreed upon.

2. Approve County to provide repairs and maintenance service for the vehicle and to indemnify and defend the agency from all liability arising out of the County's use of the vehicle, other than liability resulting from defects or malfunctions related to acts or omissions of the manufacturer.

3. Instruct the Executive Officer of the Board to send a letter of appreciation to Galway Insurance Company, Attention: Steve Ford, Vice President of Claims, 1800 East Imperial Highway, Second Floor, Brea, California 93821, for the generous loan and use of the vehicle.

The Honorable Board of Supervisors
December 16, 1998
Page 2

PURPOSE OF RECOMMENDED ACTION

The Sheriff's Department's Arson/Explosives Detail continues to improve its delivery of community based policing efforts.

JUSTIFICATION

Galway Insurance Company has offered to loan to the Sheriff's Department's Arson/Explosives Detail a 1998 Ford Expedition, VIN# 1FMEU1764WLA05277 for three years or when the mileage on the vehicle reached 100,000 miles, whichever comes first.

FISCAL IMPACT

The Los Angeles County Sheriff's Department will hold title as registered owner only. The Galway Insurance Company will hold legal title. All liability insurance, maintenance, repairs, gasoline, and other necessary vehicle services will be provided and paid for by the Sheriff's Department.

FINANCING

None.

FACTS AND PROVISIONS/LEGAL REQUIREMENTS

The vehicle will be on loan to the Sheriff's Department for three years beginning from the date the Board of Supervisors approve this bailment, however, the vehicle will be returned to Galway Insurance Company when, in the opinion of the Sheriff's Department, the vehicle is no longer suitable for County service or when the County or Galway Insurance Company have mutually agreed upon the termination of this Bailment and five (5) days advance written notice for the return of the vehicle is given. The County will provide all necessary maintenance and repairs at no cost to the Galway Insurance Company.
The Honorable Board of Supervisors
December 16, 1998
Page 3

CONTRACTING PROCESS

See Attachment A for detailed information regarding Bailment Contract.

IMPACT ON CURRENT SERVICES (OR PROJECTS)

There is no impact on current County services.

NEGATIVE DECLARATION/ENVIRONMENTAL IMPACT REPORTS

None.

CONCLUSION

Respectfully submitted,

LEROY D. BACA
SHERIFF

The Honorable Board of Supervisors
December 16, 1998
Page 4

LDB:RNS:bc
(Technical Services Division, Communications and Fleet Management Bureau)

c: Chief Administrative Officer

(brdltrArson/Explosvies 98 Expedition)

BAILMENT CONTRACT

This Contract of Bailment ("Agreement") is made and entered into this ______ day of
______________ 1999, by and between the County of Los Angeles, hereinafter referred to as "COUNTY" and "Galway Insurance Company hereinafter called "GIC".

COUNTY shall pay for all gasoline and oil additives, washing, parking, garage, highway/road service tolls, and fines incurred in connection with the use of the VEHICLE.

BAILMENT CONTRACT Page 2

BAILMENT CONTRACT Page 3

Upon inspection/acceptance, COUNTY shall be responsible for any and all damages to the equipment except those damages caused by negligence or defects in the original factory design, manufacture, or assembly of said VEHICLE. In the event of damages to the VEHICLE, COUNTY shall notify GIC to that effect and follow such instructions that GIC may provide with respect to repair or disposal of the VEHICLE. If the VEHICLE is lost, stolen, vandalized, destroyed, or declared to be a total constructive loss, other than normal wear and tear, the COUNTY shall pay GIC a fair market value for their loss. The price will be determined by COUNTY and GIC. COUNTY shall properly notify GIC thereof and hold any wreckage for disposal by GIC. With respect to any loss, theft or damage to the VEHICLE, COUNTY, and GIC shall utilize and accept the automatic data processing (ADP) value for a comparably equipped vehicle in a condition similar to the lost, stolen, or destroyed VEHICLE immediately prior to any such loss.

BAILMENT CONTRACT Page 4

COUNTY OF LOS ANGELES

By__________________________________
Chair, Board of Supervisors

Attest: Joanne Sturges GALWAY INSURANCE COMPANY

Executive Officer-Clerk
of the Board of Supervisors

By___________________________ By_____________________________

APPROVED AS TO FORM BY
COUNTY COUNSEL:

LLOYD W. PELLMAN

By_____________________________
Gordon W. Trask, Principal Deputy

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