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
1. Upon Board's approval of Bailment Contract, please return adopt stamped copies to the Fleet Management Bureau, Attention: Deputy Robert Alford or Operations Assistant II Brenda Capers, 1277 North Eastern Avenue, Los Angeles, California 90063.
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
Executive Officer, Board of Supervisors
Rochelle Goff, Analyst, CAO
Fred Ramirez, Director, Technical Services Division
Sharon R. Bunn, Director, Office of Administrative Services
Eva Snider, Assistant Director, Fiscal Administration
Barbara E. Persten, Captain, Communications and Fleet Management
Bureau
Board of Supervisors File
Chrono
(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".
1. Bailment of Property: GIC hereby bails to COUNTY one (1) vehicle: 1998 Ford Expedition, Vehicle Identification Number 1FMEU1764WLA05277, which is hereby referred to as the "VEHICLE".
2. Term of Bailment: This bailment shall commence on the day first written above, and shall remain in effect for three years or 100,000 miles, whichever comes first or it shall terminate when mutually agreed upon by giving the COUNTY five (5) days advance written notice for the return of the VEHICLE and the VEHICLE has been redelivered to GIC within five (5) days of such notice.
3. Safekeeping and Maintenance: COUNTY shall exercise due care for the safekeeping of the VEHICLE. COUNTY will provide all necessary maintenance and repairs at no cost to GIC. COUNTY has the right to inspect said VEHICLE prior to acceptance. Galway Insurance Company shall assume responsibility for ensuring that the VEHICLE has been inspected or otherwise tested in accordance with the laws of the State of California and the United States. COUNTY shall inspect the VEHICLE upon delivery and by acceptance thereof finds the VEHICLE is in good working order and condition. COUNTY shall maintain the VEHICLE in good working order and condition, ensure proper servicing and shall comply in every respect with any manufacturer's/owner's manuals that come with the VEHICLE. COUNTY shall pay for normal service required for the proper operation of the VEHICLE.
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.
4. COUNTY agrees to indemnify and defend GIC from any and all liability, losses, or damages GIC may suffer and from any claims, demands, costs, legal fees or judgments against GIC arising out of COUNTY'S use or operation of the GIC VEHICLE. This indemnification does not extend to any liability resulting from inherent defects or malfunctions in such VEHICLE related to manufacturer's acts or omissions.
BAILMENT CONTRACT Page 2
5. Titles: Title to the property is, and shall at all times remain in the name of GIC. The property shall not be transferred or delivered to any persons other than GIC without GIC'S prior written consent. Neither shall this Agreement nor the bailment created hereby be assigned by COUNTY, either by act or by operation of law.
6. Cost: Except as otherwise set forth in this Agreement, COUNTY'S use of the VEHICLE shall be at no cost.
7. Inspection by GIC: COUNTY agrees to allow GIC to inspect the VEHICLE or otherwise observe it at such times and locations as mutually agreed upon. COUNTY shall provide GIC with such mileage, safety, operating, and other information, or copies of any such records maintained by COUNTY with respect to the VEHICLE as GIC or any government agency may require from time to time.
8. Use of Vehicle: COUNTY may use the VEHICLE for any lawful purpose, including use in connection with investigations and law enforcement activities in all areas under the COUNTY'S jurisdiction. COUNTY shall not use or operate the VEHICLE in violation of any federal, state, local or provincial law, rule, regulation, or ordinance including those pertaining to the age and licensing of drivers. Under no circumstances shall COUNTY disconnect the odometers or other mileage recording devices. Nor shall the VEHICLE be used or operated as follows:
a) In a manner subjecting it to depreciation above the normal
depreciation associated with law enforcement use.
b) For an illegal purpose or by a person under the influence of
alcohol or narcotics.
9. Risk of Loss: COUNTY shall assume all risks of loss to the VEHICLE:
a) From the time it is delivered by GIC to the COUNTY and
upon inspection and acceptance by COUNTY.
BAILMENT CONTRACT Page 3
b) Until the VEHICLE is returned to GIC at its place of business.
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.
10. Assignment: COUNTY is expressly prohibited from assigning this Agreement or delegating performance of any of its obligations hereunder without prior written consent of GIC.
11. Publicity: Neither party shall identify the other party as a joint venturer or partner or otherwise characterize the arrangement between them as anything other than a bailment.
12. Force Majeure or no Consequential Damages: GIC shall not be liable for any failure in performing any provision hereof due to fire or other casualty, labor difficulty, government restriction, or any cause beyond GIC's control. IN NO EVENT SHALL GIC BE LIABLE FOR ANY LOSS OR PROFITS, OTHER CONSEQUENTIAL DAMAGES OR INCONVENIENCE DUE TO ANY THEFT, DAMAGE LOSS, DELAY OR FAILURE OF DELIVERY, OR DEFECT OR FAILURE OF THE VEHICLE, OR THE TIME CONSUMED IN RECOVERING, REPAIRING, SERVICING, OR REPLACING THE SAME.
13. Integrated Agreement: This Agreement constitutes the entire understanding of the parties and no representations or promises have been made that are not fully set forth herein. The parties understand and agree that no modifications of this Bailment Contract will be binding unless such modification is in writing, duly accepted, and executed by both parties.
BAILMENT CONTRACT Page 4
14. Prior To Vehicle Being Placed In Service: Sheriff's Department's Arson/Explosives Detail shall transport the VEHICLE received from GIC to the Eastern Avenue Facility. The VEHICLE shall have a safety check and County Identification Number attached before the VEHICLE is placed in service.
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_____________________________
Deputy Steve Ford, Vice President - Claims
APPROVED AS TO FORM BY
COUNTY COUNSEL:
LLOYD W. PELLMAN
By_____________________________
Gordon W. Trask, Principal Deputy