July 5, 1995 TO: MTA DIRECTORS & ALTERNATES...

INTEROFFICEMEMO

Los Angeles County

~letropolitan

Transportation

Authority

818 West Seventh Street

Suite 300

Los gngeles~ CA 9oo~7

213.623.1[94

July 5, 1995

TO: MTA DIRECTORS & ALTERNATES

FROM: FRANKLIN WHITE

THROUGH: JUDITH PI~RC~~~’~

SUBJECT: INFORMATION REQUEST

As a follow-up to the March 24, 1995 response issued to ChairmanAntonovich regarding claims against the MTA due to Metro Rail construction,the Chairman has issued a subsequent letter requesting further information tothe following questions.

Question 1:

How many "Governmental (Code) tort claims" and notifications withoutreceipt have been presented to the MTA (including its predecessor agencies)for damages of any kind alleged to have been caused by Metro Railconstruction?

Answer:

A detailed review of the MTA Board Secretary’s records indicates that since1992, 553 "Governmental tort claims " have been received.

Question 2:

How many of "Governmental tort claims" went to the insurance carrier?

Answer:

It is the practice of the MTA to send all construction-related claims to theresponsible insurance carrier. To date, 2,760 construction-related claims havebeen received.

The responsible carrier has received all "Governmental tort claims" identifiedin Question #1.

MEMO TO MTA DIRECTORS & ALTERNATESJuly 5, 1995

Question 3:

Of the pending claims that are detailed in question #1,and reserves of each?

what are the demands

Answer:

Public release of the reserves amounts for specific pending claims would placethe carrier at a disadvantage to negotiate claims settlements in the future. Staffis available to provide this information to the Board on a confidential basis.

Question 4:

Of the "Governmental tort claims" presented to the MTA, how many resultedin the payment of a monetary settlement to the claimant without litigation’?

Answer:

To date, no monetary settlements of the "Governmental tort claims" have been

made by the MTA without resorting to litigation.

Question 5:

Of the "Governmental tort claims" presented to the MTA, how many wererejected in writing within 45 days?

Answer:

Under the Government Code, Section 910, et seq., the MTA may either rejecta claim in writing or allow the claim to be rejected by operation of law after45 days. If a written rejection is sent, the claimant has six months to file asuit against the MTA. If no written rejection notice is sent and the claim isstatutorily rejected, a claimant has two years to f’de a lawsuit.

Based upon a detailed review of our records, the MTA has rejected 551 of 553"Governmental tort claims" in writing within 45 days.

MENLO TO MTA DIRECTORS & ALTERNATESJuly 5. 1995

Question 6:

Of the "Governmental tort claims" presented to the MTA, how many wereneither resolved by a monetary settlement nor rejected in writing within 45days?

Answer:

A review of our records shows that of the 553 "Governmental tort claims"received by the MTA since 1992, no monetary settlements have been made by

the MTA.

Two of the 553 "Governmental tort claims" did not receive a written rejectionnotice.

Question 7:

What is the total amount of money paid to "Governmental tort claimants", byMTA, as settlement for damages caused by Metro Rail construction, in casesthat did not involve litigation?

Answer:

Staff will respond to this question in 45 days.

Question 8:

How many lawsuits have been filed against MTA (or predecessor agencies) plaintiffs who had earlier filed "Governmental tort claims"? What has been

the outcome of these lawsuits? (i.e. who won?)

Answer:

Based upon a detailed review of our records, we have determined that 552construction-related lawsuits were originally filed as "Governmental tortclaims." The outcome of these 552 lawsuits is pending. The one remaining


Governmental tort claim was recently rejected by operation of law and alawsuit has not yet been filed.

Question 9:

How much money, in total, has been paid by MTA in judgements orsettlements resulting from the lawsuits mentioned in question #6 above?

Answer:

None.

Question 10:

Does the MTA inform members of the public who wish to present a claim fordamages that there is both an insurance claims process and a "Governmentaltort claim" process, the latter of which is required by law to preserve theclaimant’s right to sue a public entity?

Answer:

The MTA does not inform members of the public that there are both aGovernmental claims and an insurance process. Each process is handledseparately. For example, the MTA informs members of the public throughcommunity affairs meetings about the insurance claims process and the overallinsurance coverages. Also, through its insurance carrier, the MTAcommunicates with the public with respect to the filing of insurance claims. Inaddition, information to the public on claims activity is transmitted through theMTA’s Public Affairs Field Offices.

Additionally, when an individual seeks information on how to file a claimagainst the MTA that is not an insurance claim against the MTA, they aredirected to MTA’s Customer Service Office to obtain an MTA claim form.

Question 11:

If so, how is this information conveyed?material)

(provide copies of any written


Answer:

Attached are copies of written materials regarding the MTA insurance andGovernmental Code claim process.

Question 12:

If not, given the possibility of confusion between the two claims processes,why is a clarification not made by MTA staff?.

Answer:

Staff will respond to this question in 45 days.

Question 13:

In detail, what is the MTA’s procedure for handling claims of any kind thatare presented directly to the MTA or a member of its staff?. (Please detail theprocedure from first report to final resolution)

Answer:

Please refer to the attachments for Question #11.

Question 14:

Please provide a detailed listing of the 208 settlements and judgements noted inthe 3/24/95 "Information Request" memo (see question 5 & response)

Answer:

We have listed the settlements and pending cases that have been broughtagainst the MTA. Because of the confidentiality of the settlements and someof the pending cases, we cannot give detailed descriptions of the lawsuits.

MF_510 TO MTA DIRECTORS & ALTERNATESJuly 5, 1995

If the Board wants to discuss any specific cases, we can provide detaileddescriptions in a closed session.

2.3.4.5.6.7.8.9.10.11.12.13.14.15.16.17.18.19.20.21.22.23.24.25.26.27.28.29.30.31.32.33.34.35.36.37.38.

Pacific Bell Telephone Company v. RTD Metro RailSainz v. DaltonMcClure v. Southwest Machine & Plastic CompanyThorn v. City of Los AngelesWarren v. Tutor Saliba Construction CompanyMeloeny v. Southern California Rapid Transit DistrictJ ~ T Luna Company v. SCRTDVasques v. County of Los AngelesRamsey v. City of Los AngelesNewman v. WestConrad v. MarkoffSanta Anita Race Track v. Southern California Rapid Transit DistrictLemus v. Illinois WashAlbright v. California Engineering ContractorsKwong v. Southern California Rapid Transit DistrictMcKenzie v. Southern California Rapid Transit DistrictRoccoforte v. City of Los AngelesSeventh Street Bistro v. Southern California Rapid Transit DistrictValdez v. City of LOs AngelesLolli v. Granite Construction CompanyFeinland v. Southern California Rapid Transit DistrictOld Dominion Corporation v. Granite Construction CompanyFoster v. California, State ofNoble v. Illinois WashWexler v. Southern California Rapid Transit DistrictMontoya v. Tutor Saliba CompanyGomez v. Granite Construction CompanyDepartment of Water & Power v. Wagner ConstructionHarm v. Southern California Rapid Transit DistrictBelcourt v. Tutor Saliba CorporationS & P Company v. Southern California Rapid Transit DistrictNicldin v. The 600 South Spring Street AssociatesDeVane v. KnightHilton Hotel v. Shank-OhbayashiValencia v. Tutor Saliba CorporationTorrijos v. Tutor Saliba CorporationMoore v. County of Los AngelesEspinoza v. Judkins


39.40.41.42.43.

44.45.46.47.48.49.50.51.52.53.54.55.56.

57.58.59.60.61.

62.63.64.65.66.67.68.69.70.71.72.73.74.75.76.

Anderson v. Morrison-KnudsenMiller v. Granite ConstructionGallegos v. Los Angeles County Transportation CommissionMeza v. Metro RailDepartment of Water & Power of the City of Los Angeles v. Granite

Construction CompanySouthern California Gas Company v. Tutor SalibaBrown v. Guy Atkinson Construction CompanySimmons v. Southern California Rapid Transit DistrictDaroueian v. Tutor SalibaCooper v. Southern California Rapid Transit DistrictFields v. HarrisTrujillo v. LunaSchroeder v. The Ralph Parsons CompanyMitchell v. Tutor Saliba PeriniMichail v. Southern California Rapid Transit DistrictBuckner v. Los Angeles County Transportation CommissionSoto v. Tutor Saliba PeriniMedicrest of California, Inc. v. Southern California Rapid Transit

DistrictJohnson v. HarrisWang v. State Farm Insurance CompanyCampbell v. Southern California Rapid Transit DistrictCorrado v. Los Angeles County Transportation CommissionAllenoff Enterprises, Inc. v. Los Angeles County TransportationCommissionWeymouth v. Morrison-KnudsenUpstage Cafe v. Tutor Saliba PeriniWon v. SandersBoseant v. Carr Trucking CompanyCalifano v. MeyersCasso v. Morrison-KnudsenDavis v. City of Los AngelesEsteban v. City of Los AngelesGaberson v. BogueGraham v. McCormick Construction CompanyGTE v. Herzog Construction Compan3~Jenkins v. City of Los AngelesKaplan Enterprises v. M.T.I.A.Lepper v. Herzog Construction CompanyMendez v. Amtrak

MENLO TO MTA DIRECTORS & ALTERNATESJuly 5. 1995

77.78.79.80.81.82.83.84.85.86.87.88.89.90.91.92.93.94.95.96.97.98.99.100.101.102.103.104.105.106.107.108.109.110.111.112.113.114.115.116.117.

Montano v. City of Long BeachMunkirs v. Herzog ContractingPineda v. Granite ConstructionRodriguez v. Northridge FashionS & P v. Southern California Rapid Transit DistrictSmith v. LeeUraguchi v. City of Los AngelesVasquez v. Department of Water & PowerAdelman v. L.A. County Transportation CommissionKarim-Panahi v. California Department of TransportationNeyland v. City of Los angelesReece v. SCRTDRoper & Folino v. DWPDiederich v. Bechtel Corp.Fike v. Metro RailSpray, Gould & Bowers v. L.A. Transportation Commission600 S. Spring Street Assoc. v. PDCDEdward Baker v. LACTCMarian Ball v. Tutor SalibaMargaret Beer v. Granite Construction CompanyDee Cagle v. SCRTDKen Cothern v. LACTCKim DeVane v. LACTCCharles Fall v. LACTCWillia~n Futrell v. Transit Systems DevelopmentLeonard Glickman v. PDCDMichael Graber v. Shank-OhbayashiCharles Holder v. L.K. ComstockJose Lopez v. Rene RoblesRosa Lopez v. LACTCDorothy McGlothem v. LACTCIsmael Martinez v. Metro RailMargaret Osborn v. City of Long BeachThomas Mercado Valdez v. City of Los AngelesDWP v. Shank-OhbayashiDWP v. Tutor SalibaFeathers v. Tutor SalibaGiron v. Tutor SalibaEnriquez v. Tutor SalibaEsther Lee v. Steve P. RadosEuribe v. LACTC


118.119.120.121.122.123.124.125.126.127.128.129.130.131.132.133.134.135.136.137.138.139.140.141.142.143.144.145.146.147.148.149.150.151.152.153.154.155.156.157.158.

Thomas v. SCRTDRalph Woodmore v. Morrison-KnudsenDennis Kimbell v. Robert E. McKeeAlma Gaeta v. Tutor SalibaDWP v. Metro Rail Construction CompanyCarlos Tamayo v. Tutor Saliba PeriniMostadim v. MTACNA Insurance Company v. MTADinh Troung v. LACMTATexaco Refinery v. LACMTAHubba Hubba v. Tutor Saliba PeriniWetzel v. Parsons DillinghamMario Perez v. Tutor Saliba CorporationElsbeth Schmidt v. Granite Construction CompanyMansfield v. City of Los AngelesDavid Buc "kmaster v. City of E1 SegundoFred Cueto v. Golden Bear ConcreteWilliam Gerk v. Tutor SalibaDe Nuno v. The Atchison Topeka & Santa Fe Railway Corp.Wilshire Property Partnership v. MTAL.A. Koreana v. MTADr. Robert Lamer v. LACMTAWiltern Assoc. v. LACMTAMid-Wilshire Assoc. v. LACMTABegakis v. LACMTAMarlee Corp. v. LACMTAAtlas Bar & Grill v. LACMTAOkonkwo v. MTAHalina Kugler v. MTACurtis Anderson v. Tutor SalibaOlena Litvak; Irene Litvak v. LACMTAVictoria Green-Edwards v. LACMTAErasmo Estrada v. Tutor Saliba PeriniCharles Brooks v. LACMTAMikhail Tankimovich v. LACMTAIda Solyarskaya v. LACMTACraig Gentry v. Herzog ConstructionNicholas Gonzales v. Tutor Saliba PeriniWiffredo Ramos v. Parsons DillinghamMohammed Motamedi Rad v. Tutor SalibaDWP v. MTA


159.160.161.162.163.164.165.166.167.168.169.170.171.172.173.174.175.176.177.178.179.180.181.182.183.184.185.186.187.188.189.190.191.192.193.194.195.196.197.198.199.

City West Properties v. Tutor SalibaCaldwell v. Herzog ConstructionCity of Long Beach v. Herzog ConstructionDWP v. Tutor SalibaVandrey v. Kulchin Condon & Assoc.GTE v. Herzog ConstructionKing v. Tutor SalibaO’Connell v. Marina ConstructionHenderson v. Morrison KnudsenCastellanos v. Morrison-KnudsenJackson v. Morrison-KnudsenSanchez v. Morrison-KnudsenShenouda v. Morrison KnudsenPierzina v. Morrison KnudsenGreen v. Morrison KnudsenJohnson v. Morrison KnudsenLasane v. MolMson KnudsenFalcon v. Morrison KnudsenLuna v. Morrison KnudsenCosby v. Morrison KnudsenMorris v. Morrison KnudsenBoudreauz v. Insul AccousticsFaust v. SCRTDVerdugo v. County of Los AngelesMcEwing v. ComptonKing v. Los Angeles CountyKulato v. Herzog ConstructionNeely v. Morrison KnudsenWilshire Jewelers v. LACTCTitus Lewis v. Tutor SalibaHersey v. Tutor SalibaSCRTD v. Tutor SalibaMyles v. Tutor SalibaSimon v. Tutor SalibaDWP v. Tutor SalibaJ. Ned v. MTAKirschubaum v. MTAL.B.S. Hollywood Partners v. MTAK. Associates v. MTADieter Hanneke v. LACMTAChin v. MTA

MEMO TO MTA DIRECTORS & ALTERNATESJuly 5. 1995

200.201.

Cheateau Le Martine v. LACTCOmega Partners v. MTA

Due to a clerical oversight, the 208 lawsuits presented in the 3/24/95 responseshould have been listed as 201. The settlement value presented on 3/24/95 didnot change.

Question 15:

How much ~noney in total has MTA (not the insurance cartier) been billed forlegal services by county counsel and external law finns, for work related todefense of damage claims and litigation?

Answer:

According to County Counsel, the MTA has paid $122,092.00 to external lawfinns and $168,000.00 (including associated overhead) to County Counsel forlegal services.

Question 16:

Please provide a detailed description of the MTA’s procedure for handlingconstruction-related complaints from members of the public. List alldocuments that are used to keep records of such complaints and theirresolution.

Answer:

Construction-related complaints are received and handled by MTA’s PublicAffairs staff in a variety of ways, which are then forwarded to the appropriateparty for follow-through and response.

The majority of complaints and/or inquiries are received via:

¯ telephone calls/messages received on the 24-hour Information Line(213) 620-RAIL;


direct phone calls to Public Affairs staff. These include calls fromprivate individuals, business, community members; local, state, andfederal elected office staff;

MTA’s Construction Managers;

visits, in person, at the Metro Information Field offices located alongthe various construction corridors; community/open house meetings;and visits by Public Affairs staff to merchants, tenants, or residents inareas adjacent to construction sites.

The complaints are processed via 620-RAIL Form/Log or by Field IncidentReport.

Question 17:

Given the fact that the MTA must pay a deductible before any claims are paidby its liability insurance carrier, who decides whether or not claims fallingwithin the deductible will be paid?

Answer:

The MTA’s insurance policy (please see related Question #21) with its OCIPinsurance carrier gives responsibility to settle claims within and outside thedeductible ($500,000 per occurrence) to the carrier.

Question 18:

In detail, what is the procedure by which authority to pay a given claim isgranted (whether the claim is paid by the MTA or its insurance carrier)? Whoare the individuals who are empowered to grant claim settlement authority andwhat are their titles?

Answer:

For claims arising out of Metro Rail construction, the authority of theinsurance carrier to settle claims on behalf of the insured (MTA) is grantedunder the OCIP insuring agreement. If the MTA intercedes in the claimsettlement process, without the consent of the insurance carder, coverage for


the clai~n can be affected, or possibly result in a denial of coverage orreservation of rights by the carriers, as this intercession could prejudice theirrights to meet their obligations under the insurance policy.

The MTA’s Director, Risk Management - Construction, through its insuranceadministrator, oversees and monitors construction claims for the MTA. TheDirector also reviews claims with County Counsel. However, the Director orCounty Counsel does not have the authority to settle claims on behalf of theMTA since that authority, through the insurance policy, ultimately belongs tothe carrier.

The insurance carriers normally designate their Director of Liability as theresponsible individual for settlement of claims.

Question 19:

What are the dollar amounts of the smallest, largest and average claimsettlements paid out in connection with Metro Rail construction-relateddamage? What is the median claim settlement amount?

Answer:

The MTA is subject to a maximum $500,000.00 per occurrence deductibleunder its liability policy.

¯ the smallest clai~n settle~nent was $10.00¯ the largest claim settlement was $2,630,119.00¯ the average claim settlement is $5,940.00

Question 20:

The chart entitled "Hollywood Boulevard Clai~ns" that was provided on3/24/95 shows that, out of 33 "long term business interruption" claims filed byHollywood Boulevard claimants as of 3/16, none of them had been paid. Thereason given was that "claimants have not yet demonstrated that theireconomic loss is linked to property or structural damage." Why must businessinterruption claims be linked to "property damage" or "structural damage" tobe considered valid? Are not such construction impacts as lane, street and


sidewalk closures and bloc "kages, loss of street parking due to constructionactivity, construction noises, etc. also capable of causing business interruption?

Answer:

The MTA’s insurance policy responds to business interruption claims that havedemonstrated some aspect of concurrent property or structural damage. Lane,street and sidewalk closures and blockages, loss of street parking due toconstruction activity, construction noises, etc. are also capable of causingbusiness interruption. Claimants are required to provide documentation tosubstantiate the connection between physical and the business interruptionportions of the claim. The cartier reviews this information to determine thevalidity of the claim.

Question 21:

Please provide a certified copy of each applicable Metro Rail liabilityinsurance policy and identify the portion of the policy that says that "coverageis responsive only when associated with property damage or structuraldamage."

Answer:

A certified copy of the applicable policy is enclosed. See "Liability InsurancePolicy," page 1, section 1.(b), etc.

Question 22:

Have any claims been paid by MTA where damages were caused by MetroRail construction, but there was no insurance coverage? If so, how manyclaims were paid and for what total amount? If not, why?

Answer:

To date, there have been no claims arising out of MTA construction that havebeen paid in which there was no insurance coverage. The OCIP insuranceagreement was structured to give MTA, its contractors, and the taxpayersmaximum protection from financial loss arising out of MTA constructionactivities.

MEMO TO MTA DIRECTORS & ALTERNATESJuly 5, 1995Page i5

Question 23:

Please compile claims information by month, so that settlements and costs canbe tracked.

Answer:

Please refer to the enclosed.

Question 24:

How many claims have been rejected by the MTA’s insurance carrier?

Answer:

It is the practice and responsibility of the insurance carrier to investigate everyclaim presented directly by a claimant or through the MTA. All claims areinvestigated for their validity and are only rejected if, after an investigation,found to be fraudulent or are not covered within the scope of the insuranceagreement. If they are not covered by the insurance agreement, the insurancecarrier will refer the claim to the MTA for resolution.

There are presently 594 construction-related claims that are pending and inprocess where liability has neither been rejected nor accepted by the insurancecarrier.

Prepared by: ABDOUL R. SESAY

April

To :

(gount~ c~rtgele~13, 1995 ~f -

Fr~nk~ white, CEO

Met’ro~o~tan Transportation Authority

Supervlsor, F~th DistHlct

Claims Report

Thank you for your March 24 response to my request for claimsinformation. I do, however, have follow-up questions that I wouldlike answered before April 24.

I. How many "governmental tort claims" and notifications withoutreceipt have been presented to the MTA (including its predecessoragencies) for damages of any kind alleged to have been caused byMetro Rail construction?

2. How many of ’,governmental tort claim~" went to the insurancecarrier?

3. of the pending claims that are detailed in question #1, whatare the demands and reserves of each?

4. Of the "governmental tort claims" presented to the MTA, howmany resulted in the payment of a monetary settlement to theclaimant without litigation?

5. Of the -governmental tort claims" presented to the MTA, howmany were rejected in writing within 45 days?

6. Of the "governmentml tort claims" presented to the MTA, howmany were neither resolved by a monetary settlement nor rejectedin writing within 45days?

7. What is the total amount of money paid to "governmental tortclaimants", by MTA, as settlement for damages caused by MetroRail construction, in cases that did not involve litigation?

¯ 8. How many lawsuits have been filed against MTA (or predecessoragencies) by plaintiffs who had earlier filed "governmental tort

[olaims"? What has been the outcome of .these lawsuits? (i.e. whowon?’) " - ~"

9. How much money, in tot~l, has been paid by MTA in judgementsor settlements resulting from the lawsuits mentioned in question#6 above?

ROOM B69. HALL OF ADM~N~STIRATION. 500 WEST’TEMPLE: STREET. LOS ANGISLIES. CA 90012 ¯ TF_.LEPHON~: (21:31 974.-5S55~2~31 974.-1010 tFAX.)

Franklin WhiteApril Ii, 1995Page 2

I0. D~es the MTA inform m~bers of the public who with to preGenta claim for damages that-there is both an insurance claimsprocess and a "governmental tort claim" process, th.e latter ofwhich is required by law to preserve the claimant’s right to suea public entity?

II. If so, how is th~s information conveyed? (provide copies ofany written material)

12. If not, given the possibility of confusion betwQ~n the twoclaim~ processes, why is a clarification not made by MTA staff?

13. In detail, what is the MTA’s procedure for handling claims ofany kind that are presented directly to the MTA or a member ofits staff? (Please detail the procedure from first report tofinal resolution)

14. Please provide a detailed listing of the 208 settlements andJudgements noted in the 3/24/95 ,’Information Request" memo (seeq~estion 5 & response)

15. How much money in total has MTA (not the insurance carrier)been billed for legal services by county counsel and ex~ernal lawfirms, for work related to defense of damage claims andlitigation?

16. Please provide a detailed description of the MTA’s procedurefor handling construction-related complaints from member~ of thepublic. List all documents that are used to keep records of suchcomplaints and their resolution.

17. Given the fact that the MTA must pay a deductible before anyclaims are paid by its liability insurance carrier, who decideswhether or not claims falling within the deductible will be paid?

18. In detail, what is the procedure by which authority to pay agiven claim is granted (whether the claim is paid by the MTA crits insurance carrier)? Who are the individuals who are empOweredto grant claim settlement authority and what are their titles?

19. ~%at are the dollar amounts of the smallest, largest andaverage claim settlements paid out in connection with Metro Railconstruction-related d~mage? Wha~ is the median claim settlementamount? .. . "

20. The chart "entitled "Holly~ood Boulevard Claims" that-wasprovided on 3/24/95 shows that, ou~ of 33 "long term businessinterruption" claims filed by Hollywood Boulevard claimants as of3/16,. none of .them had been paid. The reason given was that"claimants have no~ yet demonstrated thut their economic loss is

Franklin WhiteApril Ii, 1995Page ~

linked to property or structural damage." Why must businessinterruption claims be l~nked to "property damage" or "structuraldamage" to b~ considered valid? Are not suc~ construction impactsas. lane, street and sidewalk closures and blockages, loss of~treet parking du~ to construction activity, cor~truction noises,etc also capable of causing business interruption?

21. Please provide a certified copy of each applicable Metro P~illiability insurance policy and identify the portion of the policythat says that "coverage is responsive only when associated withproperty damage or structural da~mage."

22. Have any claims been paid by MTA where damages were caused byMetro Rail construction, but there was no insurance coverage? Ifso, how many claims were paid and for what total amount? If not,why?

23. Please compile claims information by month, so thatsettlements and costs can be tracked.

24. How many claims have been re]ected by the.MTA’s insurancecarrier. ~

TOTAL F. AS

RESPONSE TO QUESTION:

11

CLAIM FORM

Contract Numbcr:

&t~, claimant:Name ’ " -

Address of propcrty:

Phone number of contact claimant:

Date of accident or incident:

D~cription of accident or incident:

Witnesses:(name) (phone number)

Witnesses:(name) (phone number)

Estimate of damages:

Additional information or comments:.

FORMh

Numcro dc contrato:

DEMANDA

Nombre ’~el demandante:

Direcci6n de la propiedad:

Numerd de tel~fono del dcm,~nd~ntc:

Fccha de accidcntc o incidcntc:

Descripcidn de accidente o incidcntc:

Testigo:(nombre) (numero de tel~fono)

Tcstigo:(hombre) (numero de tel~fono)

Estimacidn de dafios:

Info~macidn o comentarios adicionales:

LOS ANGELES COUNTYMETROPOLITAN TBNSPORTATION AUTHOR I [~x~

~25 ~ ~ b’~_reet C~’l~for~i~ 9~13

LBus.

CLAIM

Please Type or Print

I cLAIMANT-First IFLastIFInt]

~cupation

LMailing Address

LCity State I

IF MINOR PARENT OR GUARDIAN COMPLETE THIS BOX

I Namc First Last I

ENIF YOU HAVE AN ATTORNEY, PLEASE COMPLETE THE FOLLOWING SECTION

amo StreetAddress

-City

1 Bus

State Zip .Telephone

Plat Park Bus Terminal Other~ Rail ~ form ~ Lot ~ Stop ~~

Other than bus or rail car, vehicle descriptionno

3. Accident Date

4. Cross Street

5. Speed Weather

6. Boarding point

Time

Direction

Location

on Which Street

Bus Rail Car # Line #

Operator Name or Badge #

OWNER OF PRIVATE VEHICLE PLEASE COMPLETE THIS SECTION:

7. NAME DRIVER LIC#

ADDRESS

TELEPHONE

INJURED YES (

CARRIER

) NO (

VEH ID: Year

VEH L~C ~

Make Model

INSURED?

Revised 6/30195

Describe what occurred (if necessary, you may add another page}:

What damage or injury do you claim?damage claimed:

Give full extent of injuries or

i0. The amount claimed if under $10,000 as of the date of presentationtogether with the basis of computation thereof. Attach medical bills

and/or repair estimates.

ii. Names and addresses of witnesses:

12. Name and address of doctor(s):

13. Dates of prior claims against the Los Angeles County MetropolitanTransportation Authority (MTA) or Southern California Rapid Transit

District (RTD). If none, write "none."

(Signature of Claimant)

Claims arisiz~ after Jamuarl I, 19~8 must be fi/ed wiihin 6 ~(~ths from date of accident. For IB~ ~ filing ofs~atu-te of limitaHnm- as to f~l]v~ ~Yctan m~ Chapt~ 201 St~e~ 1987 (Sec 900 ET SF~ ~ Co~e) For 3m~Callfornia Law requires the followimg to appear on thl, form. AmI pe~ who ~I presmts a falm or fra~duls~t clalm fortbe paym~t of a i~ is g~ilty of a ~ a~ m~ be ~bject to fi~ ~ cmfim~mmt Im Stat~ ~. ~ by Stem. 1989,c. 1119, S 3.

Ple~ ~ Ic~zr claim to:~A I~ C~fic~ ~ 194Los A~le~, C~liforllia

your ~la~m ~t:

Attm: Ou~tc~er Re_laticu~s 3a-d Fir ~ ~elatkms

CLAIMS MANAGEMENT MANUAL

FOR

LOS ANGELES COUNTYMETROPOLITAN TRANSPORTATION AUTHORITY

OWNER CONTROLLED INSURANCE PROGRAM

RED LINE SEGMENT TWORED LINE SEGMENT THREE

GREEN LINEPASADENA BLUE LINE

INTRODUCTION

The claims management program is an integral part of the OCIP and a necessary element forits success.

The claims management program has been designed to include all elements necessary to achievethe overall objective of cost savings and benefits to contractors, the Authority and the generalpublic.

Procedures and practices are coordinated with LACMTA, assuring their compatibility andLACMTA’s general policies and compliance with state laws and regulations.

A notice of loss or incident may be originated by any of the participants of the OCIP, such asGeneral Contractor, and Sub-contractor of any tier, as well as third parties.

The key element in the claims process is that whatever the source of knowledge of an incidentwhich may give rise to a claim, the information must be transmitted to the Third PartyAdministrator (TPA) and the Insurance Carrier as soon as possible, without regard responsibility or liability for the incident. All insureds under the OCIP are required by contractto report any and all incidents whether or not insured under the program.

In this manner the Insurance Carriers are notified timely, and the appropriate claims handlingprocedures and investigation can commence immediately as further described in this manual.

CLAIMS MANAGEMENT MANUAL

100 RESPONSIBILITIES OF PARTIES

A. Third Party Administrators (TPA)

A claim file shall be set up based on the information contained in the occupationalinjury or illness form.

The TPA will confirm that the Carrier has received its copy for processing andreconcile any discrepancies during the scheduled (to be determined based on claimactivity) review meeting.

The Claims Manager or his designated representative will verify the facts of theincident, communicate any concerns of the contractor to the Insurance Carrier,and assist in the investigation and settlement of the claim where appropriate.

The Claims Manager shall submit a monthly status report of outstanding claimsto the TPA Project Manager for submission to the LACMTA and effectedContractor. He/She shall, review the claim information with the Los AngelesCounty Metropolitan Transportation Authority (LACMTA) OCIP Administratoras determined by LACMTA Management.

B. Contractor and Subcontractors of a Tier

In the event of incident which may give rise to a claim, the entity havingknowledge of the loss will complete the appropriate notice of loss form anddistribute the copies as outlined in Construction Insurance Specifications (C.I.S.)within Twenty-four (24) hours of the event.

C. Insurance Company’s Responsibilities

The Insurance Company shall set up a file upon receipt of the Loss Notice fromthe Contractor or TPA.

The insurance company shall be responsible for investigating the incident, medicaltreatment follow-up and final dispensation of the claim.

The Claims Supervisor or his representative shall set the reserve for the loss. Hewill review outstanding claims with the TPA on a quarterly basis.

D. IndeDendem Adjuster

200

Eo

Assignment of loss to the approved independent adjustment finn may be made bythe Carrier or the TPA Claims Manager.

The Independent Adjuster shall set up a file, investigate the loss, and recommendfinal dispensation of the loss. He/She will conclude the claim per the directionof the Insurance Company after their consultation with the TPA Claims Manager.

All costs will be forwarded to the Insurance Company for Payment.

Los Angeles County Metropolitan Transportation Authority (LACMTA)

LACMTA’s Risk Management - Construction Department or any other LACMTADepartment will immediately forward all original notices of claims to the TPAfor processing.

CLAIMS PROCESSING

ao Worker’s Compensation

Contractors Procedure:

The Contractor will complete an Employer’s Report of Occupational injury orillness form for all employees becoming injured or sick during the course ofemployment.

Original to:

One (1) copy to:

Two (2) copies to:

The report will then be distributed as follows:

Insurance Carrier

TPA

One (1) copy for:

Contractor’s Records

Construction Manager Resident Engineer

Insurance Carriers Procedure:

Upon receipt of the loss notice, The Carrier will set up a claim file and handlethe claim to its conclusion. The file should reflect the following:

Claimant Contact.

Initial Report outlining the facts, General Information, Medical evaluation,treatment and proposed dispensation of the f’de.

60 Day follow-up reports thereafter until file resolution

Reserve documentation.

TPA’s Procedure:

A claim file shall be set up based on the information contained in the occupationalinjury or illness form.

TPA will confirm that the Carrier has received its copy for processing andreconcile and discrepancies during the scheduled monthly review meeting.

The Claims Manager or his designated representative will verify the facts of theincident, communicate any concerns of the contractor to the Insurance Carrier,and assist in the investigation and settlement of the claim where appropriate.

B. General Liability


The Contractor will complete a General Liability Loss Notice Form whenany member of the public is injured or their property is damaged.

This shall also include other contractors and the insured’s subcontractors.

The report will then be distributed as follows:

Original to:

Insurance Carrier

One (1) copy to:

TPA

Two (2) copies to:


One (1) copy for:

Contractor’s Records

Insurance Carriers Procedure:

Forward an acknowledgement of the Loss Notification to the TPA.

Set appropriate reserves.

Contact the Claimant within forty-eight (48) hours from receipt of the lossnotice.

Provide an Initial report outlining the facts, scope of liability and proposedfile dispensation within thirty (30) days of receipt.

Provide a sixty (60) day follow up report until file conclusion.

TPA’s Procedure:

The TPA Claims Manager will confirm that the report was received by theCarrier for processing. In the event of a major loss or one identified asinvolving coverage questions, the TPA Claims Manager may assign theloss directly to the agreed upon Independent Adjuster and notify theCarrier of his action. Reconciliation of any discrepancies in reportedclaims may be addressed during the scheduled quarterly review meeting.

The TPA Claims Manager shall act as a liaison between the LACMTARisk Management - Construction and Carrier to insure that policyholderissues and concerns are expressed prior to claim resolution.

The Claim Manager will assist in the investigation of claims whereappropriate and review all outstanding claims with reserves over $2,500with the Carrier’s Claims Examiner on a monthly basis.

In the event of a third party claim alleging damage to the structures orfacilities along the alignment, LACMTA will provide copies of the Pre-construction Survey for review by the Insurance Carrier in theirinvestigation and settlement of the claim.

4

C. Builders Risk


Upon -knowledge of a potential claim or loss, the contractors will berequired to complete a Property Loss Notice. The Resident Engineer willreview the report and add any additional information/details he may haveconcerning the loss potential claim or loss. Photographs of damage shouldbe included, if possible. The copies should be distributed as follows:

Original to:

Insurance Carrier

One (1) copy to:

TPA

Two (2) copies to:


One (1) copy for:Contractor’s Records

Insurance Carrier’s Procedure:

The Carrier shall acknowledge receipt of the loss notification to the TPA.

The Carrier shall set up a file, investigate the loss and conclude itshandling per the terms and conditions of the policy.

The Carrier will make their files available for review upon request of theTPA Claims Manager.

TPA’s Procedure:

The TPA Claims Manager shall set up a file and confirm that theInsurance Company received their report.

The TPA Claims Manager shall monitor the adjustment of all losses foraccuracy, fairness and appropriateness assuring that the named insured isproperly compensated according to the terms and conditions of the policyand that losses reflect actual experience.

5

300

The TPA Claims Manager shall submitManaging Director for submission toContractors.

EXCESS LIABILITY

TPA’s Procedure:

a status report to the TPALACMTA and the effected

Any time a claim may appear to approach the $5 million excess level, the TPAClaims Manager shall notify the excess underwriters and request specificinstructions.

Any time a claim is not covered in the primary layer but may be covered in theexcess policy, the TPA Claims Manager will notify underwriters and requestspecific instructions.

500 INSURANCE CARRIER RF_SERVES

600

700

All files must be reserved to extend through the life of the claim. Although all necessaryfacts may not be available at the outset of a claim, Insurance Carrier reserves should beadjusted when medical information or investigation indicates the existing reserve isinadequate. The following criteria must be used when setting a reserve: the injury, theinvestigation, medical, projected temporary total disability benefits to be paid, projectedpermanent partial disability, and the potential use of outside experts (i.e., rehabilitation,attorneys).

SETI’LEMENT AUTHORITY OVERSIGHT

Through its systematic review and supervision of claim files, TPA staff will assure thatthe Insurance Carrier’s settlements are made fairly, in the best interests of the Authority,and in a timely manner. Most of the settlements are made directly by claimsrepresentatives, since the majority of the claims are under the $2,500 reserve limit.Generally, it is to the Authority’s advantage to settle claims as quickly as possible.Allowing the Insurance Carriers’s claims representative to settle immediately, withoutdelays due to approval requirements, can often result in lower settlements.

LITIGATION MANAGEMENT

The TPA in conjunction with the Cartier has set up a pool of attorneys who will beutilized for defense on this project. No entity will make attorney assignments outside ofthe pre-established pool.

Upon receipt of a lawsuit, an immediate decision should be made between the alternativeof further attempts at voluntary settlement or defense of the suit. If it is decided toattempt settlement, defense attorneys should be directed to protect time either byarranging for a voluntary extension from the plaintiff’s attorney in which to file an

6

answer or by actually filing an answer but no fllrther action should be taken until theclaim has been settled or further attempts to settle have failed. Attorneys will be selectedfrom the approved attorney panel list.

Once it is determined that the claim must be defended, the carrier and TPA should advisedefense counsel on the following:

Any outstanding issues such as statutory defenses, etc.Our evaluation of LiabilityOur evaluation of Claims ValueFurther investigation we intend to doAny settlement demands and offers which have been exchangedActual parties to be defendedApplicable insurance coverageInformation on previous lawsuits which may have an effect on the claim

Defense attorneys should be asked to provide the carrier and TPA with their evaluationof the following:

FactsLiabilityValueFurther investigation to be conductedStrategy and target dates for completion

Defense counsel should be provided with the original of all photographs, reports,statements or other documents at the time the claim is referred. The defense attorneyshould be directed to acknowledge the claim in writing upon receipt and to provide apreliminary report within thirty (30) days. Defense counsel should be directed to providesubsequent reports on a discretionary basis, but in no event less than every ninety (90)days unless otherwise agreed upon. Defense attorneys should be directed to submitquarterly billings to the Cartier performing the work, and the hourly rate.

Reimbursable expenses should be documented with appropriate bill or receipts.

Reports from defense counsel should be captioned to treat information in an organizedfashion. As soon as possible, but no later than thirty (30) days prior to trial, defenseattorneys should provide a complete evaluation of the claim utilizing the suit evaluationor pretrial formats.

It is important to continually monitor the activity of defense counsel to insure that propersteps are being taken to defend LACMTA and/or the contractor. Activities should bemonitored to avoid unnecessary activity either by pleading or discovery. The attorneysshould be asked to estimate the cost of defending the claim through trial and to evaluatethe anticipated costs in relation to the value of the claim and the anticipated benefits fromthe activity proposed.

80O

900

1000

Any lawsuit received by LACMTA, the contractor or consultant should be imulediatelyforwarded to TPA or processing° Tile summons and complaint should include the nameof the person receiving it and the date and time it was served.

Consideration will be given to retaining counsel in advance of lawsuits, from time totime, when handling claims which have severe injuries or receive unusual publicity toprotect, as attorneys work product, any investigation conducted in such claims. Whencounsel is retained in advance of receipt of a lawsuit, the adjuster’s report should bedirected to the attorney rather than the Carrier, LACMTA or TPA. If experts are used,their reports should also be coordinated with defense attorneys and reports, if written,directed to the defense attorneys.

SUBROGATION

When a third party is responsible for an accident involving a construction project whichresults in property damage or bodily injury to the second party (claimant) for which theOCIP pays, the project has subrogation rights against the third party. The subrogationright allows the Authority to be reimbursed by the third party for the project losses orlosses paid to the second party. A thorough investigation must be made by the Carrierto verify that there are subrogation rights.

LOSS INFORMATION SYSTEM

The Cartier will provide loss information data on a monthly basis to the TPA. Thereport should contain the claimant’s name, date of loss, claim number allocated reservesand estimated expenses. The TPA will then compile that data into a report to theAuthority. The report will provide a current status of the outstanding claims and a totalof outstanding deductible retention amounts due to contracts end.

TPA’s Clai~ns Manager will provide the Construction Safety Director with informationdeveloped to assist in implementation of recommendation to improve the projects safetyperformance.

AUDITS

The TPA will conduct random file reviews. The purpose of the review will be tomonitor claims handling and to and review request for payment over the carrier’sauthority level.

The TPA will also conduct a quarterly procedural review. Tile files should demonstratethat standard claims processing has been adhered to. For example; the following itemsshould be evident in the files:

The claimant should be contacted within forty-eight (48) hours after receipt of assignmentfrom the supervisor.

Full captioned reports should be submitted with thirty (30) days of setting of reserve.

Documented investigation of the incident.

1100

Documented medical and other expenses.

Follow-up contact with claimant and other parties.

Follow-up reports and litigation reports within sixty (60) days of the full captioned reportor at the agreed upon reporting interval.

Supervisory Guidance and/or presence in the file.

FORMS

A. Employer’s Report of Occupational Injury or Illness

This form is used to report employee injuries or sickness that occur during thecourse of employment.

B. General Liability Loss Notice

This form is used when any member of the public is injured or their property isdamaged.

C. Property Loss Notice

This form is to used when physical damage occurs to any part of the constructionworks, from whatever cause.

D. Claim for Damage

This form is used by the public to report claims to LACMTA. In the event oneis submitted to LACMTA, it should be fonvarded to TPA for handling.

RED LINE Segment 3OCIP

CLAIMS AND ACCIDENT REPORTING

Workers CompensationGeneral Liability

Builder’s RiskAutomobile Liability

The immediate reporting of all d~-~umstances which might lead to or involve a claim is required of allContracao~ and ~tractors. Failure to :eport an accident or injury could result in denial of the claim bythe immer(s). Whenever in doubt, contact the Resident F.n~c~fi~eer for gtlidance ill ¢laim r~port~

As a general nile., never discass accidenls with anyone except authorized representatives of the AUTHORITY,MTIA, applicable Insurers, or law enforcement agencies.

A. FATAL AND SERIOUS ACCIDENTS (Employees or Members of the Public)

1. IMMEDIATELY secure medical emergency services.

2. Telephone the Resident Engineer, who wR! notify the AUTHORITY and MTIA.

B. EMPLOYEE INJURY OR 13.INESS

Within 24 hours of Employer’s first knowledge of an employee’s injury, complete the lower half ofDWC Form I (see Exhibit 5-1) and present to employee (keeping record that form was presented employee). Within 3 days, you must complete Form 5020 (Exhibit 5-2) Employers Report Occupational Injury/lllness and along with the Supervisor’s Aocident Inv~tigation Report (Exl~’bit 5-3)and copy of DWC 1, forward to:

1. Original and one copy to:

Argonaut Insurance CompanyTerminal AnnexP. O. Box 2395Los Angeles, California 90054Attention: OCIP Unit

Phone No.: (213) 937-0400Fax No.: (213) 937-3275

2. One copy to:

Melro Transit Insurance Administrators3435 W’dshire Boulevard, 5th HoorLos Angeles, California 90010

Phone No.: (213) 351-9260Fax No.: (213) 48%5314

MTIA A Joint Venture MW 4

C. BODILY IN~LrRY OR PROPERTY DAMAGE TO THIRD PARTIES:

Report all occurrence where any member(s) of the public is injured or their property is damaged.Cznglete the allached GENERAL LIABILITY NOTICE OF OC.,CURRENCE/CLAIM (Extn~t 5-5)immediately and forward:

1. Original and one copy to: 2.Argonaut Clakns Unitc/o LACMTA818 W. Seventh StreetLos Angeles, California 90017Phone No.: (213) 244-7190

Fax No.: (213) 244-1762

c,/o Sedgwick James3435 Wilshire Boulevard, #500Los Angeles, California 90010Phone No.: (213) 385-0545

Fax No.: (213) 487-5314

Do LOSS OR DAMAGE TO THE WORK (Builders Risk)

When any physical loss or damage occurs to any part of the consm~tion work, fi’om whatever cause,immediately complete the PROPERTY LOSS NOTICE (Exht%it 5-6) and forward to:

~ and a copy to Metro Transit Insurance Administrators (MTIA)A copy to Resident EngineerIf a serious loss occurs (fire, explosion, etc.) and Metro Transit Insurance Administratorscannot be reached, contact:

Allianz Insurance(818) -972-8000

Please advise Metro Transit Insurance Administrators of the loss by Fax (213) 45%5314 as soon as posst~ole.

E. AUTOMOBII .F. ACCIDENTS (At construction work sites)

Although the OCIP does not provide automob~e insurance, when auto accidents occur on orimmediately adjacent to the construction work sites, obtain a cow of the Auto Loss Notice submittedby Contractor or Subcontractor to his own insurer, and forward a copy to:

Metro Transit Insurance Administrators (MTIA)Resident Engineer

MTIA A Joint Venture MW 4

RESPONSE TO QUESTION"

21

ARGONAUTINSURANCE COMPANY

Master Policy Number: MA 20-539-850000Metro Red Line Project

Declarations

Item 1: Named Insured:

Los Angeles County Metropolitan Transportation Authority

Rail Construction Corporation; a Subsidiary of the

Los Angeles County Transportation Commission

(Hereinafter referred to as the Authority)

and

Any contractor or subcontractor of any tier who has a contract for which insurance is to

be provided by the Authority pursuant to the Construction Insurance Specifications of

the Los Angeles County Metropolitan Transportation Authority, including any revisions

thereto.

Address:

c/o SJOR/Metm Transit Insurance Administrators

3435 Wilshire Blvd.

Los Angeles, California 90010

Item.2: Policy Period:

From June 30, 1993, 12:01 A.M. Pacific Standard Time, until cancelled, but with respect

to contractor, insurance is effective from contract award date until all work has been

completed under the contract and any changes or amendments thereto.

Item 3: Coverage

Legal liability insurance for operations as set forth in the policy.

Umits of Uability:

Bodily Injury, Property Damage and Personal Injury $2,500,000 for each occurrence

Personal Injury $4,000,000 annual aggregate

Products/Completed Operations Hazard $4,000,000 annual aggregate

Date of Issue Countersignature of Authorized Agent

Los Angeles CountyMetropolitanTransportation Authority

LIABILITY INSURANCE POLICY

The Company named in the Declarations (A Stock Company herein called the Company) agrees with the Named Insured, named the Declarations made a part hereof, in consideration of the payment of the premium by the Los Angeles County MetropolitanTransportation ~uthor~y (herein called the AUTHORITY) and subject to the limits of liability, exclusions, condit~s and other termsof the policy:

1. INSURING AGREEMENTS

To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages by reason of anoccurrence, however or wherever arising or c~eated or alleged to have adsen or been c~eated and adsing solely or directly out of orin connection with operations performed under the project or any contract thereunder because of:.

(a} Bodily Injury:. Bodily injury, sickness, disease, mental anguish, shock, fright, or aggravation thereof, sustained by or allegedto have been sustained by any person or persons dudng the policy period, including care, loss of services and death at a~ytime resulting therefrom, including bodily injury, sickness, disease, mental anguish, shock, fright, or aggravation thereofarising out of omission, error or mistake committed in connection with any medical treatment or on account of dispensingdrugs or medicines or the consumption, handling or use of medical articies or products handled or distributed by anydispensary or first aid station under the control of the insured, and

(b) Property Damage: Damage to, loss or destruction of tangible property of others, including but not limited to property of everykind and description, loss of use of tangible property, loss of revenue, loss of gain or profits, loss of earnings and all otherdirect and consequential loss or damage for which legal liability exists from any cause other than breach of contract or liabilityarising out of the unlawful appropriation of property, and

(c) Personal Injury:. Personal injury adsing out of false arrest, detention or imprisonment, malicious prosecution, libel, slander,defamation of character, personal restraint and wrongful eviction.

2. DEFENSE, SETTLEMENT, SUPPLEMENTARY PAYMENTS

further agreed that as respects the insurance afforded by this policy, the Company shall~a) Defend any suit against the Insured arising out of or alleging such bodily injury, property damage or personal injuryand

seeking damages on account thereof, even if any of the allegations of such suit are groundless, false or fraudulent; but theCompany shall have the right to make such investigations, negotiation and settlement of any ¢Jaim or suit as it deems

(b) Pay all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this policy,all premiums on appeal bonds or other bonds required in such defended suit. and to apply for and furnish all such bonds =tot inexcess of the applicable limit of liability of this policy;

(c) Pay all expenses incurred by the Company, all costs taxed against the insured in any suit and all interest accruing(1) Before judgment that part of the judgment which does not exceed the limit of the Company’s liability;, and(2) After etdry of judgment un~l the Company has paid or tendered or deposited in court that part of such judgment which

does not exceed the limit of the Company’s liability;,(d) Pay expenses incurred by the Insured or.his representative at the time of an accident for immediate necessary medical

surgical rermf to others;(e} Reimbume the Insured for all reasonable expenses, including loss of earnings up to $200 per day, incurred at the comp~y’s

request. The amounts so Incurred, except settlements of claims and suits, are payable by the Company In addition to theapplicable limit of liability of this policy.

3. DEFINITION OF INSURED

"i’he words Named In=ured wherever used In this policy shall mean not only the Named Insured as set forth in the Declarations, butshall also mean any subsidiary corporations in which the Named Insured owns 50% or more of the stock and any trade or firm ~,ameor ~jle under which they may operate, as they are now or as they may herenl~er be constituted. The unqualified word lr~ured~ used in this policy means not only the Named Insured but also means:

(a) Any partner, director, executive officer, =tockholder, adminlst~tor or supervisory employee of the Named irlsured, or anymember of any joint venture or any political subdivision, Authority. board or agency covered by this insurance, Insofar as Shyliability exists by reason of is being such partner, director, executive officer, ~toc~older or member, or while acting withi~ thescope of his duties as such;

b) Any indMdual, firm, joint venture, copartnership, corporation, political subdivision, Authority, board or other agency, or anyother erdity with whom the Named Insured has contracted or dudng the applicable policy pedod may contract to procureliability insurance, but only to the extent end in the amount for which the Named Insured has contracted to procure suchinsurance and in no event contrary to the terms and conditions or for a greater amount than the limits of liability of this p~cyor for a policy period longer than applicable to such Named Insured.

Page 1 of 5

4. POLICY PERIOD, TERRITORY

This policy applies to occurrences during the policy period, as set forth in the Declarations. anywhere in the world, provided,however, that such insurance as is afforded under this policy to any contractor shall be effective f::-m contract award date andtPrminate as to any specific contract upon acceptance by the AUTHORITY of the work performed under the contract, except that such

Jrance as is provided under Ibis policy to any contractor for the products/completed operations hazard as defined in Condition~, titled "Definitions", shall apply to events occurring after the commencement for each operational seqment operating revenueservice, for a period of three years thereafter.

.. - 5. LIMITS OF LIABILITY .~---

The limit of liability stated in the Declarations as applicable to each occurrence is the total limit of the Company’s liability for alldamages arising out of any one occurrence during the policy period.Subject to the above provision resPecting "each occurrence", the total liability of the Company which is included within theproducts/completed operations haza[d as defined in Condit!on J, titled "Definitions", for all damages because of all bodily injuryand property damage which occurs dun’ng each annual period while this policy is in force, commencing from its effective date, shallnot exceed the limit of liability stated in the Declarations as products/completed operations hazard annual aggregate.Regardless of the number of (I) tnsureds hereunder, (2) persons or organizations who sustain injury or damage, or (3) claims or suits made or suits brought on account of personal injury, the total limit of the Company’s liability under this coverage for alldamages incurred in any one policy year shall not exceed the limit of liability stated in the Declarations as personal injury annualaggregate.The inclusion of more than one insured under this policy shall not operate to increase the limit of the Company’s liability.

6. EXCLUSIONS

This policy shall not apply:(a) Except with respect to liability assumed under contract, to bodily injury or sickness, or disease or death of any employee of

the Insured arising out of and in the course of employment by the insured, nor to any obligation for which the insured orany carrier as his insurer may be held liable under any workers compensation law, unemployment compensation or disabilitybenefits law or under any similar law;,

(b) To property damage to a specific article, object or thing, or loss of use thereof, out of which an occurrence arises, wherethe property damage arises out of faulty work performed by the Named Insured on such specific article, object or thing, orarises out of a defect in such specific article, object or thing;

(c) To liabil~y arising out of work performed under any guarantee or maintenance agreement, anything in Part 4, titled "PolicyPeriod, Territory", to the contrary notwithstanding;

(d) To bodily Injury or property damage arising out of the ownership, maintenance, use or entrustment to others of anyaircra~ automobile or water craft owned or operated by or rented or loaned to any Insured. "Use" includes operation andloading or unloading.This exclusion does not apply to:(1) A water craft while ashore on premises owned by or rented to the Named Insured;(2) Awater craft not owned bythe Named Insured that is

a. less than 26 feet in length andb. not being used to carry persons or property for a charge;

(3) An automobile while parked on premises owned by or rented to the Named Insured or ways immediately adjoining,provided such =utomobile is not owned by or rented or loaned to the Insured;

(4) Liability assumed under contract for damages adslng out of ownership, maintenance or use of aircral~ or water crafL(e) To bodily Injury or property damage adsing out of:.

(1) The transportation of mobile equlpment by an automobile owned or operated by or rented or loaned to any Insured;or

(2) The use of mobile equipment in, or while in practice or preparation for, a prearranged racing, speed or demolitioncontest or in any stunting activity.

(f) To liability for property damage to property owned by or in the care, custody or control of any Insured to the extent suchproperty is covered under any property insurance, including deductibles, provided by the AUTHORITY and in effect for suchinsured.

(g) To liability excluded by the Nuclear Energy Uability Exclusion Endorsement printed on the reverse side of the Declarations; .(h) To liability for sums withheld by the AUTHORITY under its Construction Insurance Specifications including any amendments

or revisions thereto;(i) To liability for property damage to contractors equipment in the care, custody or control of any insured or as to which any

insured is for any purpose exercising physical control; .(j) To any person described in "Definition of Insure~ who is a director of any insured corporation, or who is an officer of an

Insured political subdivision or a member of a board, agency, or Authority thereof, with respect to his liability to suchcorporation or its stockholders, or to such political subdivision or its constituents, for financial loss to intangible property orproperty rights arising out of the performance of, or failure to perform, acts involving the exercise of judgment or discretion,except when physical injur), to tangible property also occurs.

Page 2 of 5

(k) To liability for the cost or expense ~,f repair, correction or replacement of any struc~.a, work or thing which will become or isa part of the Metro Rail System, including loss of use thereof, loss of revenue and loss of gain, earnings or pr,fits resultingtherefrom.

(I) To bodily injury or property damage arising out of the discharge, dispersal, release or escape of smoke, vapor.~ soot, fumes,acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminants or pollutants in..~ or uponland, the atmosphere or any water course or body of water howsoever caused.

7. CONDITIONS

(a) PremiumThe prerrki~,~, for~.l-~e policy shall be as agreed upon between the Company and the Authority and shall bea’-d~,lt]sted with andpaid by the Authority.

(b} Inspection and AuditThe Company shall be permitted at all reasonable times to inspect the Named Insured’s premises or operations and toex~mine and audit the insured’s books and records at any time during the policy pedod and any extension thereof, and withinone year after the final termination of the policy, as far as they relate to the premium bases of this policy or the subject matter ofinsurance. Neither the Company’s right to make inspections nor the making thereof nor any report thereon shall constitute anundertaking on behalf of or for the benefit of the Named Insured or others to determine or warrant that such premises oroperations are safe or healthful, orare in compliance with any law, rule or regulation.

(c) Notice to CompanyWritten notice shall be given by or on behalf of the insured to the Company or its duly authorized agents as soon as reasonablypossible after SJOR/Metro Transit Insurance Administrator has knowledge of an event or occurrence which may reasonably beexpected to result in a claim. Such notice shall contain particulars sufficient to identify the insured and also ~easonablyobtainable information respecting the time, place and circumstances of the event or oc~:urrence, the name and address of theinjured and of any available witnesses.

(d) Notice of Claim or Suitif claim is made or suit is brought against the insured, the insured shall immediately forward to the Company, or any claimsrepresentative designated by the Company. every demand, notice, summons or other process received by him or hisrepresentative.

(e} /%ssistance and Cooperation of the InsuredThe Insured shall cooperate with the Company and. upon the Company’s request, shall attend hearings and trials and shallassist in affecting settlements, secudng and giving evidence, obtaining the attendance of witnesses and in the conduct of suits,and the Company shall reimburse the Insured for any reasonable expense, other than loss of earnings, Incurred at theCompany’s request_ The Insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or,ncur any ~se other than for such necessary medical and surgical relief to others as shall be incurred by the Insured or hisrepresentative at the time of injury.

(f} Action Against CompanyNo action, other than for declaratory relief, shall lie against the Company unless, as a condition precedent thereto, the Insuredshall have fully complied with all the terms of this policy, nor until the amount of the insured’s obligation to pay shall have bee~finally determined either by judgment against the insured after actual trial or by written agreement of the Insured ,the claimantand the Company. Any person or his legal representative who has secured such judgment or written agreement shall thereafte~be entitled to recover under the terms of this policy in the same manner and to the same extent as the insured. Nothingcontained in this policy shall give any person or organization any dght to join the Company as a ¢odefendant in any actionagainst the Insured to determine the [nsured’s liability.

(g| Other InsuranceExcept when the Authority has elected by contract or agreement to the contrary, the insurance unde¢ this policy shall be pdnta~insurance and the Company shall be liable under this policy for the full amount of the loss up to and including the total limit ofliability set forth in the declarations without dght of contribution from any other insurance company, covering a loss coveredunder this policy.However, if any loss covered by this policy is covered by any other insurance policy than those spedfied in the ConstructionInsurance Specifications. or as amended or which was affected by a party other than a Named Insured under this policy, thenthe insurance unde~ this policy shall be excess insurance over and not contributing with or primary of, such other insurance.

(h) SubrogationThe Company shall be subrogated to all rights which the Insured may have against any person, copartnership, corporation,estate or other entity (except those covered by this policy) to the extent of any payment made by the Company unde~ this polio/,and the Insured shall execute all papers required to secure to the Company such dghts, provided(1.) that a~1 rights of subrogation are waived under the policy against any corporation or corporations, the majority of whose

capital stock ts owned or controlled by the Insured; or against any corporation, firm or individual to which or to whomprotection is afforded under this policy;.

(2.) that all right of subrogation is waived under this policy ff the insured is for any reason unable to subrogate to the companythe right of recovery against persons, copartnerships, corporations, estates or other entities for any payments madehereunde~.

Page 3 of 5

. (i) ChangesNo notice to any agent, or knowledge possessed by any agent or by any other person shall be held to effect a waiver or changein any part of this policy nor stop the Company from asserting any rights under the terms of this policy, nor shall the terms of thispolicy be waived or changed, except by endorsement issued to form a part thereof, signed by a duly authorized representative ofthe Company

"’ Definitions(1.) Automobile means a land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached

machinery or equipment, but automobile does not include mobile equipment.(2.) Mobile equipment means any of the following types of land ".ehicles, including any attached machinery or equipment:

(a.) Bulldozers, farm machinery, forklifts and vehicles designed for use principally off public roadsz(b.) ~hicle~:~naintained for use exclusively on premises owned by or rented to the insured, including th-~-~rays immediately

a~ljoining;(c.) Vehicles that travel on crawler treads;(d.) Vehicles, whether self-propelled or not, on which are permanently mounted:

(1.) Power cranes, power shovels, power loaders or power diggers; (2.) Road construction or resurfacing equipment such as graders, scrapers or rollers:

(e.) Vehicles not described in e, b, c or d above that are not self-propelled but are maintained primarily to provide mobility tope~nanently attached equipment of the following types:(1.) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration,

lighting and well servicing equipment; or(2.) Cherry pickers and similar devices used to lift workers to heights;

(f.) Vehicles not described in a, b, ¢ or d above maintained primarily for purposes other than the transportation of personsor cargo.

(g.) Self-propelled vehicles with the following types of permanently attached equipment are not mobile ~quipment but willbe automobiles:(1.) Equipment designed primarily foe

i. Snow removal;ii. Road maintenance, but not construction;iii. Street cleaning:

(2.) Cherry pickers and similar devices used to lift workers to h~ights; and(3.) Air compressors, pumps and generators used for spraying, welding, cleaning buildings, geophysical exploration,

lighting or well servicing.(3.) Operations ,as respects contractors, whenever used in the policy shall mean all operations performed by the contractor at

the job site as defined in the insurance specifications of the Authority including operations elsewhere in connectionthere,,,Ath, operations performed by the contractor at other locations during the time such other locations are exclusively usedby the contractor for work performed for the Authority, and operations elsewhere in connection therewith from such otherlocations while so exclusively used.

(4.) Occurrence whenever used in this policy shall mean an accident or continuous or repeated exposure to conditions whichresults in bodily Injury, personal Injury or property damage not expected or intended from the standpoint of the insured.

(5.) Products/Completed Operations Hazard means:(a.) Goods or produc~s manufactured, sold, handled or distributed by the Named Insured or by others trading under his

name, if the occurrence happens after possession of such goods or products has been relinquished to others by theNamed Insured or by others trading under his name and if such accident occurs away from premises owned, rented orcontrolled by the Named Insured; provided such goods or products shall be deemed to include any container thereof,other than a vehicle, but shall not include any vending machine or any property other than such container, rented to orlocated for the use of others but not sold;

(b.) Operations, ff the occurrence happens after such operations have been completed or abandoned; providedoperations shall not be deemed Incomplete because Improperly or defectively performed or because further operationsmay be required pursuant to an agreement; provided further, the following shall not be deemed to be operations withinthe meaning of this paragraph: (1.) pickup or delivery, except from or onto a railroad car, (2.) the maintenance vehicles owned or used by or on behalf of the Insured, and (3.) the existence of tools, uninstalled equipment andabandoned or unus~-~l materials.

(6.) Project whenever used in this policy shall mean all phases of construction, including testing of cars and systems, of theMeko Rail System as it is now or may hereafter be conslJtuted.

(Ic) AssignmentAssignment of interest trader this policy shall not bind the Company until its consent is endorsed hereon; if, however, the NamedInsured r.hail die, such insurance as is afforded by this policy shall apply (I) to the Named Insured’= legal repres(mtative, as theNamed Insured, but only while acting within the scope of his duties as such, and (2) with respect to the property of the NamedInsured, to the person having proper temporary custody.thereof, as insured, but only until the appointment and qualification ofthe legal representative.

Page 4 of 5

- (I.) Cross LiabilityThe insurance afforded by this policy applies severally as to each insured, as though a separate policy had been issued to eachinsured, except that the inclusion of more than one insured shall not operate to increase the limit of the Company’s liability; andthe inclusion hereunder of any person or organization as an insured shall not affect any right which such person or organizat©nwould have as a claimant if not so included.

.)Representation of the Insured (Sole Agent)The Los Angeles County Transportation Authority. or its executive director or his authorized representative, shall be the sole andirrevocable agent of all insureds under this policy for the purpose of:(1.) issuing instructions for the alteration of this policy;(Z) giving or accepting notice of cancellation of this policy;, -. --~----(3.) recei~hg and receipting payment;(4.) making premium adjustments.

(n.) Intermediary - Notification ClauseAll notices and communications and all premiums, bills, and ,~djustments in connection with this insurance shall be addressed toSJOR/Metro Transit Insurance Administrators, 3435 Wilshire Blvd., Los Angeles, California 90010 (which is recognized as theintermediary) to be transmitted to the Authority and the Company.

(o.) Cancellation and ChangeThis policy may be cancelled by the Company by mailing to the Authority, at the address shown in the Declarations, writtennotice stating when, not less than one hundred eighty (180) days thereafter, such cancellation shall be effective. This policy maybe cancelled by the Authority by mailing to the Company written notice stating when thereafter such cancellation shall beeffective. The policy coverage, terms, conditions, premiums or premium rates may be modified by mailing to the Authority attheeddress shown in the Declarations, written notice stating the nature of the change and when, not less than sixty (60) daysthereafter, it shall be effective. Delivery of such written notice shall be equivalent to mailing.

IN WENESS WHEREOF, the Company has caused this policy to signed by its President and Secretary, but this policy shall not bevalid unless completed by the attachment thereto of the Declarations Page and countersigned on the aforesaid Declarations Page bya duly authorLT.ed representative of the Company,’.

/President Secretary

Page 5 of 5

NUCLEAR ENL.~GY LIABILITY EXCLUSION E,,DORSEMENT( Broad Form

"’ is agreed thatThe policy does not apply:A. Under any Liability Coverage, to bodily injury or property damage

(I) with respect to which an insured under the policy is also an insured under a nudlear energy liabilityp.olicy i.s__sued by Nuclear Energy Liability Insurance Associalion, Mutual Atomic Energy.Liabi~l!tyU,qde~vriters or Nuclear Insurance Association of Canada. or would be an insured under any such policybut for its termination upon exhaustion of its limit of liability; or

(2) resulting from the hazardous properties of nuclear material and with respect to which (a) any person organization is required to maintain financial protection pursuant to the Atomic Energy Act of 1954, orany law amendatory thereof, or (b) the insured is, or had this policy not been issued would be, entitledto indemnity from the United States of America, or any agency thereof, under any agreement enteredinto by the United States of Amedca, or any agency thereof, with any person or organization.

go Under any Medical Payments Coverage, or under any Supplementary Payments provision relating to firstaid, to expenses Incurred with respect to bodily injury resulting from the hazardous properties of nuclearmaterial and adsing out of the operation of a nuclear facility by any person or organization.

Co Under any Liability Coverage. to bodily injury or property damage resuliing from the hazardous propertiesof nuclear material, if( I ) the nuclear material (a) is at any nuclear facility owned by, or operated by or on behalf of, an insured

(b) has been discharged or dispersed therefrom:(2) the nuclear material is contained in spent fuel or waste at any time possessed, handled, used,

processed, stored, transported or disposed of by or on behalf of an insured; or(3) 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 anynuclear facility, but if such facility is located within the United States of Amedca, its territories orpossessions or Canada, this exclusion (3) applies only to property damage to such nuclear facility andany property thereat.

As used in this endorsement"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 theAtomic Energy Act of 1954 or any law amendatory thereof:"spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed toradiation in a nuclear reactor;,"waste" means any waste matedal (a) containing by-product material other than the failings or wastesproduced by the extraction or concentration of uranium or thodum from any ore processed primarily for Its sourcematerial content, and (b) resulting from the operation by any person or organization of any nuclear facility inc.Judedunder the first two paragraphs of the definition of nuclear facility.

"nuclear facility" means(a) any nuclear reactor,(b) any equipment or device designed or used for (I) separating the isotopes of uranium or plutonium,

processing or utilizing spent fuel, or (3) handling, processing or packaging waste,(c) any equipment or device used for the processing, fabricating or alloying of special nuclear material if

any time the total amount of such matedal in the custody of the Insured at the premises where suchequipment or device is located consists of or contains more than 25 grams of plutonium or uranium 233or any combination thereof, or more than 250 grams of uranium 235,

(c0 any structure, basin, excavation, premises or place prepared or used for the storage or disposal ofwaste, and includes the site on which any of the foregoing is located, all operations conducted on suchs~e and all premises used for such operations;

"nuclear reactor" means any apparatus designed or used to sustain nuclear fission in a self-supporting chainreaction or to contain a c~cal mass of fissionable material;"property damage" includes all forms of radioactive contamination of property.

ENDORSEMENT 1Long Term Construction Project Deductible Insurance Provisions

This endorsementforms a p,~. ofpolicy nu~6er: MA 20-539-850000

issued by: Argonaut Insurance Companyand effective: June 30, 1993, 12:01 A.M. standard time.

Named Insured: Los Angeles County MetropolitanTransportation Authority, etal.

In consideration of the reduced premium charge, it is agreed that:

The company’s obligation under this policy is to pay losses on behalf of the insured. The Named Insured’sobligation hereunder is 1o furnish to the company funds to pay losses and allocated loss expense up to theamount of the deductible limitation for each occurrence.

Amount of Deductible $500,000 each occurrence

In addition to the deductible amount, the company will collect fm~ the funds so furnished unallocated lossadjustment expense at the rate of $.09 for each $I.00 of paid loss and paid allocated loss expenses includedwithin the deductible, but not exceeding $35,000 for any one o~;urrence.

The terms of the policy, including those with respect to (a) company’s rights and duties with respect to thedefense or settlement of claims or suits and (b) the insured’s duties in the event of a claim, apply irrespectiveof the application of the deductible amount.

o Allocated loss expenses as used herein Include the following expenses incurred in connection with theinvestigation, settlement or defense of a claim or suit:

a. attorneys feesb. court costsc. all other items of expense which include, but are not limited to:

jury feesexpert witness feesconsultant feeslaboratory and x-ray costs

autopsy expensesstenographic feeswitness fees and summonsesdocument costs

The following shall not be included as allocated loss expense:a. salades and traveling expenses of company employeesb. company overheadc. fees paid to Independent adjusters for adjust!ng dairns

Nothing herein contained shall be held to vary, alter, waive or extend any of the terms, conditions, agreements orlimitations of this policy other than as stated above.

A~horized Representative Countersignature ° By Resident Ucensed Agent

ENDORSEMENT 2

This endorsementforms a part ofpolicy number:

issued by:and effective:


MA 20-539-850000Argonaut Insurance CompanyJune 30, 1993, 12:01 A.M. standard time.

Solely as respects The Los Angeles County Metropolitan Transportation Authority (Authority) as Named Insured, is agreed that:

1. 1. Insuring Agreement is deleted and the following substituted therefor:.

To pay on behalf of the Authority all sums which the Authority shall become obligated to pay as damagesby reason of legal liability of the Authority however or wherever arising or created or alleged to have arisenor been created, because of any occurrence resulting in actionable injury suffered or sustained or alleged tohave been suffered or sustained by any person, firm, joint venture, corporation or other entity adsing out ofthe project.

2. 1. Insuring Agreement 1(c) is deleted and the following substituted therefor:

(c} Personal Injury: Personal injury arising out of false arrest, detention or imprisonment, maliciousprosecution, liable, slander, defamation of character, personal restraint, wrongful eviction and unintentionaldiscrimination, however, this coverage does not apply to personal injury adsing out of or in any wayconnected with the employment of or failure to employ any person by any insured under section 6.

3. 3. Definition of Insured (a} is deleted and the following substituted therefor:.

(a) partner, director, executive officer, stockholder or employee of the Authority, or any member of any jointventure or any political subdivision or subsidiary, Authority, board or agency insofar as any liability existsby reason of being such partner, director, executive officer, stockholder, employee or member, or whileacting in the scope of duty as such;

4. 6. Exclusions are amended by the addition of the following:

(m) to liability for breach of an oral or written contract or the unlawful appropriation of property by the Authority,including inverse condemnation, but this exclusion shall not apply to that portion of any oral or writtenagreement providing for the assumption of any liability of others.

Solely as respects the Authority as Named Insured, it is agreed that, anything contained in Condition (0),Cancellation to the contrary notwithstanding, the insurance afforded for the first $500,000 each occurrence(deductible podion) of the limit of liability shall not be cancelled by the Company. In the event of cancellation the remainder of the insurance by the Company, notice of such cancellation shall consist of an endorsementreducing the limit of liability to $500,000 each occurrence, and shall state when not less than 180 days there-after, such cancellation shall be effective.

6. Provisions of this endorsement shall supersede any other provisions of the policy if in conflict therewith.

Nothing herein contained shall be held to vary, alter, ~raive or extend any of the terms, conditions, agreements orlimitations of this policy other than as stated above.

Authorized Representative Countersignature ° By Resident Licensed Agent

ENDORSEMENT 3Long Term Construction Project Premium Provisions

This endorsement---forms a ~t ofpolicy numbe~. MA 20-539-850000


Named Insured: Los Angeles Count.y-MetropolitanTransportation Authority, etal.

The premium for this policy for the pedod beginning on the effective date of this endorsement shall be computed atcomposite rate set forth in the schedule below applied to each $100 of contract cost. Contract cost is defined as theof all construction contracts and installation only of system wide materials and equipment procured by the owneroperations covered by the policy, excluding contractors incentive or bonus payments.

.;

The Named Insured agrees to pay an initial deposit premium of 25% of the estimated annual premium set forthThe balance of the estimated annual premium is payable in equal installments as shown in the schedule.

Schedule

Composite Rate $0.57Estimated Contract Cost $140,000,000Estimated Premium $798,000

Installment Schedule

Due Date Amount06/30/93 $199,50007/31/93 $66,50008/31/93 $66,50009/30193 $66,50010/31/93 $66,50011/30/93 $66,50012.J31/93 $66,50O01/31/94 $66,50002/28/94 $66,50003/31/94 $66,5OO

Nothing herein contained shall be held to vary, alter, waive or extend any of the terms, conditions, agreementslimitations of this policy other than as stated above.

Authorized Representative Countersignature ° By Resident Ucensed Agent

ENDORSEMENT 4Additional Interest

This endorsementforms a part ofpolicy humbert MA 20-539-850000

is~’Lted by: Argonaut Insurance Companyand effective: June 30, 1993, 12:01 A.M. standard time.

Named Insured: Los Angeles County MetropolitanT~ansportation Authority, etal.

Subject to all provisions applicable to the distdct as Named Insured, it is agreed that the word "partner" as statedin insuring Agreement 3., "Definition of Insured’, subparagraph (a), shall include the following but only as respectsliability adsing out of services performed for the Los Angeles County Metropolitan Transportation Authority by:

Ao Metro Rail Transit Consultants, A Joint Venture (MRTC)1. Parsons, Brinckerhoff, Quade, & Douglas, Inc.2. Daniel, Mann, Johnson & Mendenhall3. ICF Kaiser Engineers, Inc.4. Harry Weese & Associates, Ltd.

go PDCD, A Joint Venture1. The Ralph M. Parsons Company2. Dillingham Construction Company3. DeLew, Cather & Company

Co Parsons - Dillingham, A Joint Venture (PD)1. The Ralph M. Parsons Company2. Dillingham Construction Company3. DeLew, Cather & Company

Do City of Los Angeles, California, Department of Water And PowerCooperative Agreement No: R81-F23-F102, Water System, dated 01/27/90.Cooperative Agreement No: R81-F23-F103, Power System, dated 01/26/90

E. County of Los Angeles, CaliforniaCooperative Agreement NO: R81-F23-F208

2. Wdh respect to Construction Management and General Engineering Management Consultants, this policy shall notapply to bodily injury or property damage because of any professional services performed by or for the NamedInsured, Including but not limited toi. the preparation or approval of maps, plans, opinions, reports, surveys, designs or specifications, andii. supervisory, Inspection or engineering services, except that this part (i=) shall not apply to safety services

provided by Construction Management Consultants.

o Such insurance as is afforded by this policy to the Authority shall also apply to SJOR/Metro Transit InsuranceAdministrators as insured, provided, however, the insurance shall not apply to liability of SJOR/Metro TransitInsurance Administrators for breach of duty of any nature.


Authorized Representative Countersignature * By Resident Ucensed Agent

ENDORSEMENT 5

This endorsement Named Insured: Los Angeles County Metropolitan

forms a part of Transportation Authority, etal.

policy numbec. MA 20-539-850000issued by: Argonaut Insurance Company

and effective: June 30, 1993, 12:01 A.M. standard time.

It is agreed that exclusion (I) of the policy does not apply to bodily injury or property damage arising out of anycontaminant or pollutant which is identified as the project site and is discovered during tunnel boring or tunnel andJorstation excavation activities, until such contaminant or pollutant is placed under the care, custody or control of anylicensed hazardous waste disposal contractor.

In consideration of the premium charged, it is agreed that the Limit of Uability set forth in the Policy Declarations isamended to read as follows respecting coverage afforded by the endorsement:

Bodily Injury and Property Damage:

$ 2,000,000 for each occurrence

$4,000,000 annual aggregateexcess of a $500,000 bodily injury and property damagqcombined per occurrence deductible

Solely for the purpose of determining the application of said Limit of liability, the term occurrence as used hereinincludes all handling of any contaminant or pollutant from the time of its identification at the project site until it is underth,~ t’,are, custody or control of a licensed hazardous waste disposal contractor.

It is further agreed that such coverage as is provided by this endorsement shall not apply:

(1) To handling or removal of any contaminant or pollutant not done in accordance with the Resource Conservationand Recovery ACt (42 U.S.C. $56901-6987), The Environmental Response, Compensation & Liability Act 1980 (42 U.S.C. 9601-57), any regulations issued pursuant thereto, or any similar laws of the State of California.

(2) To any claim first made or suit first brought against the insured more than 12 months after the date of which thecontaminant or pollutant is placed under the care, custody or control of a licensed hazardous waste disposalcontractor.

(3) To any licensed hazardous waste disposal contractor, or to any waste disposal site.

The term "contaminant" or "pollutant", wherever used in this endorsement, shall include all the related terms containedin exclusion (I).

Nothing heroin contained shall be held to vanj, alter, waive or extend any of the terms, conditions, agreements orlimitations of this policy other than as stated above.

Authorized Representative Countersignature ° By Resident Ucensed Agent

ENDORSEMENT 6

Long Term Construction ProjectPollution ExcJusion Amendment

This endorsementforms a part ofpolicy’~bmber: MA 20-539-850000


Named Insured: Los Angeles County MetropolitanTransportation-Authority, etal.

It is agreed that exclusion (I) of the policy does not apply to bodily injury or property damage arising out of thedischarge, dispersal, release or escape of naturally occurring underground gases such as, but not limited to methane,caused by tunneling or excavating operations.

Nothing herein contained shall be held to vary. alter, waive or extend any of the terms, conditions, agreements orlimitations of this policy other than as stated above.


ENDORSEMENT 7Coverage Limitation

This endorsementforms a part ofpolicy numbeE

is~eed by:and effective:

MA 20-539-850000Argonaut Insurance CompanyJune 30, 1993, 12:01 A.M. standard time.

Named Insured: Los Angeles County Metrop(~litanTransportation Authority, etal.

The insurance afforded by this policy does not apply either as pdmary, contributing or excess insurance, to any c.Jaimor loss which is covered by the following Schedule of Policies or any renewal of that policy or any other policy issuedto replace it. This exclusion of coverage replaces the "Other Insurance" condition of this policy with respect to thepolicies mentioned above.

Schedule of Policies

MA 20-539-800000


Authorized Representative Countersignature ° By Resident Licensed Agent

ENDORSEMENT 8

This endorsementforms a part ofpolicy number:

issued by:and effective:


MA 20-539-850000Argonaut Insurance CompanyJune 30, 1993, 12:01 A.M. standard time:

It is agreed that SECTION 7. CONDITIONS item (c) Notice to Company and item ~ Definitions (2) MobileEquipment and (3) Operations are replaced with the following wording:

(c) Notice to CompanyWritten notice shall be given by or on behalf of the insured to the Company or its duly authorized agents as soonas reasonably possible after SJOR/Metro Transit Insurance Administrators has knowledge of an event oroccurrence which may reasonably be expected to result in a claim. Such notice shall contain particularssufficient to identify the insured and also reasonably obtainable information respecting the time, place andcircumstances of the event or occurrence, the name and address of the injured and of any available witnesses.

Definitions(2.) Mobile equipment means any of the following types of land vehicles, including any attached machinery or

equipment:(a.) Bulldozers, farm machinery, forklifts and vehicJes designed for use principally oil public roads;(b.) Vehicles maintained for use excJusively on premises owned by or rented to the insured, including the

ways immediately adjoining;(c.) Vehicles that travel on crawler treads;(d.) Vehicles, whether self-propelled or not, on which are permanently mounted:

(1.) Power cranes, power shovels, power loaders or power diggers; (2.) Road construction or resurfacing equipment such as graders, scrapers or rollers; (3.) Cherry Pickers and similar devices used to lift workers to heights.

(e.) Vehicles not described in a, b, c or d above that are not self-propelled but are maintained pdmadly toprovide mobility to permanently attached equipment of the following types: Air compressors, pumps andgenerators, including spraying, welding, building cleaning, geophysical exploration, lighting and wellservicing equipment.

(f.) Vehicles not described in a, b, c or d above maintained pdmadly for purposes other than thetransportation of persons or cargo.

(g.) Self-propelled vehicles with the following types of permanently attached equipment are not mobileequipment but will be automobiles:(1.) Equipment designed pdmadly for.

i. Snow removal;ii. Road maintenance, but not construction;iii. Street cleaning;

(2.) Air compressors, pumps and generators used for spraying, welding, cleaning buildings, geophysicalexploration, lighting or well servicing.

(’3.)Operations ,as respects contractors, whenever used in the policy shall mean all operations performed by thecontractor at the job site as defined in the contract between the contractor and the Commissioner, and/ordefined in the insurance specifications of the Authority including operations elsewhere in connectiontherewith, operations performed by the contractor at other locations dudng the time such other locations areexclusively used by the contractor for work performed for the authority, and operations elsewhere inconnection therewith from such other locations while so exclusively used.


AEthodzed Representative Countersignature ° By Resident Licensed Agent

ENDORSEMENT 9

This endorsementforms a part ofpolicy number: MA 20-539-850000

issued by_: Argonaut Insurance Companyand eJ(ective: June 30, 1993, 12:01 A.M. standard time.


ADDITIONAL INSURED

It is hereby agreed that Item #1 is amended to add the Mass Transit Group as Additional Insured.



ENDORSEMENT 3Long Term Construction Project Premium Provisions

This endorsementforms a p~. of -~policy nunlber: HA 20 _539-850000

issued by: Aroonaut Insurance Companyand effective: 06-30-93 12 = 01A.Ho. standard time.

Named InsuredTHE LOS ANGELES COUNTY METROPOLITANTRANSPORTATION: ANTHORITY

The premium for this policy for the pedod beginning on the effective date of this endorsement shall be computed at thecomposite rate set forth in the schedule below applied to each $100 of contract cost Contract cost is defined as the costof all construction contracts and installation only of system wide materials and equipment procured by the owner foroperations covered by the policy, excluding contractors incentive or bonus payments.

The Named Insured agrees to pay an initial deposit premium o! 25% o! the estimated annual premiu~ set forth below.The balance of the estimated annual premium is payable in equal installments as shown in the schedule.

Schedule

Composite Rate $- 57Estimated Contract Cost : $140,000,000Estimated Premium $798,000

Installment Schedule

6~i~0193 $I~9,500

07-31-93 66,500

08-31-93 66,500

09-30-93 66,500

10-31-93 66,500

11-30-93 66,500

12-31-93 66,500

01-31-94 66,500

02-28-94 66,500

02-31-94 66,500

Nothing herein contained shall be heel to vary, alter, waive or extend any of the terms, conditions, agreements orlimitations of this policy other than as stated above.

Authorized Representative Countersignature" By Resident Licensed Agent

RESPONSE TO QUESTION:

23

MONTHLYCLAIM SuHMARY by LINE for METRoRAIL

L BOO02 RED LINE SEGMENT I

MASS TRANSIT GROUP

MONTHS: FROM: 01-85 TO: 05-95

REPORT DATE: 5/ 3/95 I PAGE:

STATUS: OPEN, REOPEN & CLOSED

P~TH I YEAR j

SEPTEMBER1986 18,469

FEBRUARY 1987 1 , 929

MARCH 1987 679

APRIL 1987 51,339

MAy 1987 2,521

JUNE 1987 84,172

JUlY 1987 57,038

A~UST 1987 321,215

SEPTEMBER1987 53,~

OCTOBER 1987 120,392

NOVEMBER 1987 70,260

DECEMBER 1987 146,6~

JANUARY 1988 46,683

FF tRY 1988 108,528

MARCH 1988 387,065

APRIL 1988 1,138,203

MAY 1988 172,280

JUNE 1988 105,798

JULY 1988 549,482

AUGUST 19B8 53,243

~EPTEMBER1~ 255,211

O~TOBER 1988 727,000

NOVEMBER 19~ 130,676

OECEM~R 19~ 106,043

JANUARY 1989 90,669

FEBRUARY 1989 53,065

MARCH 1989 82,333

APRIL 19~9 14,395

MAY 1989 61,639

JUNE 19~9 2,634,462

J& 19~9 11,286

AIK~JST 19~9 110,717

SEPTEMBER!129 56,827

GENERAL- LIABILI1-Y INSURED I

PAID I INCURRED I COUNT

17,288 1

1,929 1

679 1

51,339 7

2,521 3

81,630 17

57,038 11

320,192 18

55,426 21

120,392 23

70,260 28

108,528 15

387,199 17

1,057,929 37

172,280 21

586,025 39

53,244 21

266,514 14

043,7~ 25

131,~2 15

121,482 17

92,669 11

59,~73 17

04,612 7

14,395 10

61,(>40 11

2,854,343 13

11,613 7

110,718 17

58,777 12

PAID PAID

MONTHLY CLAIM SUHMARY by LINE for HETRORAIL

MASS TRANSIT GROUP

L BOO02 RED LINE SEGMENT I MONTHS: FROM: 01-85 TO: 05-95

I~ONTH I YEAR I

OCTOBER 1989

NOVEMBER 1989

DECEMBER 1989

JANUARY 1990

FEBRUARY 1990

MARCH 1990

APRIL 1990

MAY 1990

JUNE 1990

JULY 1990

AUGUST 1990

SEPTEMBER1990

OCTOBER 1990

NO~ ’BER 1990

DEcodER 1990

JANUARY 1991

FEBRUARY 1991

MARCH 1991

APRIL 1991

MAY 1991

JUNE 1991

JULY 1991

AUGUST 1991

SEPTEMBER1991

OCTOBER 1991

NOVEPIBER 1991

DECEMBER 1991

J ANUARY 1992

FEBRUARY 1992

IIARCH 1992

A 1992

NOVEMBER 1992

GENERAL LIABILITY INSURED I

PAID I. INCURRED I COUNT

21,511 21,417

216,833 951,221

142,490 141,574

722,180 724,250

192,927 231,347

22,863 22,863

104,861 137,140

334,927 351,033

61,521 69,521

835,964 584,163

20,105 70,105

311,162 312,267

76,418 75,768

287,364 159,785

4,999 14,371

11,665 10,318

296,471 2,296,472

450 450

230,057 266,507

247,626 302,357

42,481 50,800

11,170 11,170

317,994 355,750

174,482 289,939

168,071 255,000

9~8 16,280

181,816 231,385

545,294 580,839

39,809 39,810

37,068 45,000

9,579 100,000

4,074 125,000

9

8

8

14

12

14

20

20

20

39

25

17

15

8

6

11

13

4

4

10

2

4

9

5

3

1

4

8

2

3

4

I

PAID

JREPORT DATE: 5/ 3/95 I PAGE: 2!


MASS TRANSIT GROUP

MONTHLY CLAIMSUMMARY by LINE for METRORAIL

’ "E: B0002 RED LINE SEGMENT I I

REPORT DATE: 5/ 3/95 I PAGE: 3

MONTHS: FROM: 01-85 TO: 05-95 STATUS: OPEN, REOPEN & CLOSED

MONTHLY CLAIM SUIIrIARY by LINE for DIETRORAIL

,IRE: BOO03 RED LINE SEGHENT II I

MONTH ~

JANUARY

APRIL

flAY

JUNE

JULY

AUGUST

SEPTEMBER

oCTOBER

NOVEltSER

DECEMBER

JANUARY

FEBRUARY

IIARCH

APRIL

JUNE

JULY

AUGUST

SEPTEHBER

OCTOBER

. NOVEIIBER

OECEHBER

JANUARY

FEBRUARY

MARCH

APRIL

mAY

JUNE

JULY

AUGUST 19~3

TEMBER 1993

OCTOBER 1<)93

I’K)VIZMBER I 1093

-,718

59,594 59, 612

700 700

90,266 96,424

185,043 155,375

1,560 1,560

145,368 205,000

98,916 629,666

94,768 44,412

12,961 12,505

136,883

19,215 19,513

37,837 40,587

&,85,847 689,594

5,097 165,605

39,291 102,608

132,2_37 310,000

283,459 509,125

51,868 84,474

20,489 40,240

8,853 70,000

38,221 32,980

5,731 74,867

46,728 110,221

21,663 2_2,371

40,992 300,834

185,952 244,000

"14,271 12,500

8,696 20,000

30,722 140,000

90,578 186,000

968 10,968

FREPORT’DATE: 5/ 4/9~ I PAGE: 1 1

MONTHS: FROH: 06-8~ TO: 05-95 I STATUS: OPEN, REOPEN & CLOSED

3

5

8

2

MASS TRANSIT GROUP


IONTHLY CLAIM SUHflARY b~ LINE for HETRORAIL

_INF: BOO03 RED LINE SEGMENT II I ~IoNTHS: FROM: 06-88 TO: 05-95

STATUS: oPEN, REOPEN & CLOSED

IHCURRED

)ECEIIBEI~ 13,663

JANUARY 16,888

~ EBRUARY 2,112

IARCH

~PRIL

IAY 6,941

JUNE 12,599

JULY 18,172

~,LK~UST 3~3, ~3

;EPTEHBER 1994 31,762

)CTOBER 1994 50,582

,IOVEltBER 1994 825

)ECENBER 1994

JANUARY 1995

32,676

89,872

13,500

6,932 52,500

20,382 180,000

32,500

85,500

151,500

305,535

222,500

248,927

24,897

29,501

46,5132,527

21,600

REPORT TOTALS: 2,877,824 6,217,1~J]

34

24

9

5

7

INCURRED PAID

MASS TRANSIT GROUP

MONTHLY CLAIM SUMMARY by LINE for HETRORAIL

: B0001 BLUE LINE IHONTHS: FROH: 01-80 TO: 05-95

3,392

1,543

1

12

8

8

10

3

4

12

155

9

10

43

36

43

47

47

41

37

45

41

32

36

27

35

15

17

31

15

17

35

26

19

PAIDI INCURRED

COUNT

REPORT DATE: 5/ 3/95 PAGE: 1

I~ARCll 1987 3,392

flAY 1987 1,543

JULY 1987 1,125 1,225

AUGUST 1987 13,150 13,150

SEPTEHBER1987 8,290 8,290

OCTOBER 1987 987 987

NOVEflBER 1987 9,009 9,009

DECEMBER 1987 6,350 3,298

JANUARY 1988 267,596 193,987

FEBRUARY 1988 13,031 13,031

MARCH 1988 241,341 47,955

APRIL 1988 219,990 447,281

MAY 1988 66,155 66,155

1988 124,752 125,277

JULY 1988 25,086 25,086

AUGUST 1988 219,015 218,402

SEPTEHBER1988 34,830 34,830

OCTOBER 1988 84,529 84,529

NOVEMBER 1988 57,139 57,239

OECEMBER 1988 32,015 32,084

JANUARY 1989 51,684 56,764

FEBRUARY 1989 133,778 57,720

MARCH 1989 559,241 497,324

APRIL 1989 105,289 105,289

MAY 1989 13,817 84,437

JUNE 1989 31,806 32,068

JULY 1989 4,957 4,957

AUGUST 1989 2,434,507 2,426,753

SEPTEMBER1989" 1,220 1,190

OcTOBER 1989 22,842 22,842

h ~MBER 1989 233,475 215,366

DECEMBER 1989 51,821 52,021

JANUARY 19<20 115,798 95,(]27


PAID I INCURRED COUNT J

MASS TRANSIT GROUP

MONTHLY CLAIM SUMMARY by. LINE for METRORAIL

I BOO01 BLUE LINE

MONTH

FEBRUARY 1~

APRIL

JUHE

JUlY

At~UST

SEPTE~ER

DECE~ER

J/~UARY

FE~UARY

~ARCH 1991

1991

IIONTHS: FROM: 01-8(] TO: 05-95

GENERAL LIABILITYINSURED IPAID I INCURRED I COUNT

22

24

11

4

2

1

5

1

1

3

1

2

2

97,476 105,758

220,330 220,330

137,947 138,010

7,000 9,500

232 233

3,798 3,798

8,297 16,0(]0

10,000

31,021 67,500

PAID

REPORT DATE: 5/ 3/95 I PAGE:

STATUS:" OPEN, REOPEN & CLOSED

PAIDI

INCURRED

MASS TRANSIT GROUP

MONTHLY CLAIM SUNMARY by LINE for METRORAIL

B0004 GREEN LINE IHONTNS: FROM: 06-88 TO: 05-95



~IONTH

I YEAR I

JANUARY 1991

~IARCH 1991

APRIL 1~

JUNE 19<)1

SEPTEMBER 1~K~1

OCTOBER 1991

NOVE~IBER 19<)1

DECEMBER 1991

~IARCH 19<)2

APRIL 1992

JULY 1992

SEPTE~IBER1992

~OVE~IBER 19<)2

.’ RY 1993

FEBRUARY 1993

~ARCH 1993

JULY 1993

A~UST 1993

SEPTEMBER19<)3

DECE~ 199"3

JANUARY 1994

FEBRUARY 1994

MARCH 1994

REPORT TOTALS:

GENERAL LIABILITY INSURED I

PAID I INCURRED I COUNT

6,138 I

3

18,498 4

3,024 2

1

2

2

1

178,188 4

2

1

2

3,403 2

100,000 1

74,~ 7

1

7~ I

100,000 2

~,000 3

1

40,0(X) 1

15,000

PAID

July 5, 1995 TO: MTA DIRECTORS & ALTERNATES...

Documents

Transcript of July 5, 1995 TO: MTA DIRECTORS & ALTERNATES...