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HomeMy WebLinkAboutResolution - 2024-R0106 - Property Ins., Zurich American Insurance Co, $50M Limit For John T Montford Dam - 03/05/2024 (2)Resolution No. 2024-RO106 Item No. 5.5 March 5, 2024 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager is hereby authorized and directed to purchase for and on behalf of the City of Lubbock, property insurance by and between the City of Lubbock and Zurich American Insurance Company in the amount of $50,000,000 insurance coverage for Montford Dam, for a total premium in an amount not to exceed $263,588.00; and THAT the City Manager or designee may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council on March 5.2024 ELIA PATTERSON HARRIS, MAYOR PRO TEM AT EST: Courtney Paz, City Secret APPROVED AS TO CONTENT: D. Blu Kostilich, Chie cial Officer APPROVED AS TO FORM: .19 Uattsell, Deputy City Attorney vw/ccdoesII/Res.Risk Mgml-Zurich American Ins, February 26, 2024 Resolution No. 2024-R0106 John T. Montford Darn Property Insurance Company: Zurich American Insurance Company Policy Term: 04/01/2024 to 04/01/2025 Coverage: Property insurance covers your interest against direct physical loss or damage by covered perils to named property that you own or are required to insure. See attached schedule for covered locations. Annual Premium: $263,588.00 POLICY LIMIT OF LIABILITY This Policy shall pay no more than $50,DD0,000 for any one occurrence, subject to lice following Sublimits of Liability and Annual Aggregate Limits of Liability. In no event shall this Policy's liability exceed the Limit of Liability above or the scheduled values as stated on Endorsement A — Schedule of Locations & Values Insured. whichever is less, in any one occurrence. SUBLIMITS OF LIABILITY The Policy shall pay no more than the following Sublimit(s) of Liability in any one occurrence. NOTE: Coverage shall only apply for Individual sublimtts when a dollar amount Is entered below: In no event shall these Sublimits of Liability Increase the Policy Limit of Liability. (1) $ 50,ODO,000 Physical Damage Coverage to the Covered Property; (2) $ NCP Loss of Revenue; (3) $ 50,000 Accounts Receivable; (4) NCP Interruption by Civil or Military Authority: (5) $ 500,000 Expediting Expense: (6) $ 500,000 Extra Expense; (7) $ 5,000,000 Or 25°% of the amount of insured physical loss of or damage to Covered Property whichever is less - Debris Removal Coverage: (8) $ 100,000 Fire Department Service Charges: (9) NCP Ingress and Egress; (10) $ 100,000 Loss Adjustment Expense; (11) $ 5DO,000 Newly Acquired Locations; (12) $ 1,000,000 Ordinance or Law; Demolition or Increased Cost of Construction; (13) $ 2,500,000 Transit - any one conveyance; (14) $ 25,000 Valuable Papers & Records: (15) $ 50,000,000 Terrorlsm ANNUAL AGGREGATE LIMIT(S) OF LIABILITY The maximum amount the Company will pay for toss or damage in any one occurrence. andlor in the aggregate annually for loss or damage from all occurrences, shall not exceed the following amounts: (1) $ 10,000.000 By the peril of EARTHQUAKE; (2) $ 10,000.000 By the peril of FLOOD; (3) $ _ 10,000,000 By the peril of NAMED STORM This proposal is merely a descriptive summary of coverage provided by the ins._rance cr;mpanies being proposed acid should be used for reference purposes only; it is not a binder z;nd does not amend or alter the insuranec contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusiors. Proposal date: 02/22/2024 Prepared for City of Lubbock l J Confidential. 6�c�, 2021 I.ISI Insurance Services. All rights reserved. 141 DEDUCTIBLES AND WAITING PERIODS) From the amount of each claim for insured physical loss of or damage to Covered Property in any one occurrence, there shall be deducted the applicable amount shown below, and then the liability of the Company shall be only for the amount of such Insured loss or damage In excess thereof, subject to the Limit, Subllmits or Annual Aggregate Limits of Liability as stated above. A. S 2,000,000 Physical loss of or damage to Covered Property. unless otherwise shown below; B. $ 50,000 Physical loss of or damage to SURVEILLANCE EQUIPMENT*: C. S 2,000,000 As respects EARTHQUAKE*: D. $ 2,000.000 As respects FLOOD' E. $ 2,000,000 As respects NAMED STORM' F. NCP Waiting Period - Loss of Revenue in the event that more than one deductible shown above or specified in any endorsement attached to this Policy shall apply to Insured physical loss of or damage to Covered Property in any one occurrence. only the largest shall be applied. If Loss of Revenue Coverage is provided under this Policy, the Waiting Period stated above will always be applied in addition to any dollar deductible stated for physical damage. ADDITIONAL ENDORSEMENTS ENDORSEMENT NAME FILL-IN INFO IF ANY X Schedule of Covered Pro erty, U-CWP-0010-A Per Addendum A X C her Exclusion, U-CWP-0117-A - X Amendment to Covered Property CWP-120 (01118) NO COVERAGE IS PROVIDED FOR THE EMERGENCY SPILLWAY CANCELLATION PROVISION 60 Days except 10 Days for nonpayment of premium L91R111rV0i7:l (1) Covered Property: The actual cost to repair or replace the lost or damaged property, valued as of the time and place of loss, with material of like kind and quality, less betterment. If not so replaced, loss shall be settled on an Actual Cash Value basis with proper deduction for depreciation and exclusive of profit and overhead. (2) Transit: The invoice cost plus accrued shipping charges less shipper's liability. if any. (3) Loss of Revenue: Actual loss sustained subject to the stated coverage and specified indemnity period. OTHER QUOTE CONSIDERATIONS (1) Zurich shall have the right to inspect property and operations at any reasonable time. Insured agrees to comply with any reasonable Risk Engineering recommendations to avoid a loss. (2) ADDENDUM A — SCHEDULE OF COVERED PROPERTY provides a listing of all property to be covered under this indication and Policy. If a location is not listed it is not included In the coverage provided herein. (3) Coverage Is subject to obtaining facultative reinsurance: ® YES ❑ NO (4) Coverage Is subject to satisfactory completion of Risk Englnering Recommendations Including written responses to the Risk Impovement actions within 60 days of binding ® YES ❑ NO (5) Renewal of this pro ram Is subject receipt of updated replacement cost valuation report no later than 1/3112025 : 9 YES NO This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposer and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 62/22/2024 Prepared for City of Lubbock W,142 Confidential. Z 2021 USI Insurance Services. All rights reserved. Building Vacancy Provision - Coverage may be restricted or excluded for any Building found to be vacant for a minimum of 30 consecutive days or longer subject to all other policy terms and conditions. If any of your covered buildings meet this description at any time during the policy period, please contact us so we can assist you in maintaining appropriate coverage. Protective Safeguard Endorsement Failure to maintain the protective safeguards in good working order or failure to notify the insurer of even a temporary impairment in protection suspends coverage until the protection is restored. Property Disclaimer: This policy insures against direct physical loss or damage to Real & Personal Property from a covered cause of loss and any resulting Loss of Revenue as more fully defined with the policy. It is your responsibility to notify USI's personnel, in writing, if these limits are not adequate to rebuild and/or replace, in today's dollars, your current building and contents. "Replacement cost" does not mean replace at any cost. Terms & Conditions: Per Expiring Policy Form PROPERTY EXCLUDED Aircraft; Rolling Stock; Watercraft; Land/Land Values; Electrical/Gas(Water or other transmission line and related plants and substations; Offshore Rigs & Platforms; Property sold under conditional sale: shipments by mail, parcel post and those shipments to and from Alaska or Hawaii; Overseas Shipments and others per the Policy. EXCLUSIONS Consequential Loss: Error/Omission or deficiency in design, plans, workmanship. specifications or materials. Wear & Tear War; Nuclear; Mysterious Disappearance & Inventory Shortage; Employee Dishonesty. Fraud & Infidelity; Fungus; Pollution & Contamination: Asbestos; Normal Subsidence & Settling; Cyber Exclusion, and other per the Policy. TERRORISM Terrorism is offered as an option. If not the Named Insured elects not to purchase coverage a Terrorism exclusion shall attach to the Policy. COVERAGE EXTENSIONS Accounts Receivable: Transit; Extra Expense, Fire Department Service Charges; Debris Removal; Ordinance or Law i Demolition or Increased Cost of Construction: Loss Adjustment Expense; Ingress?Egress: Civil Authority; Valuable Papers and Newly Acquired Locations ADDITIONAL INSURED(S) Shall Include any entity where to whom the Named Insured is obligated by written contract or agreement to provide Insurance or as those shown on ACORD Certlficate of Insurance (or equivalent) issued by USI SOUTHWEST, INC.. copies of which will be forwarded, if requested, to the Company. The first Named Insured shown in 3. above shall be deemed the sole and irrevocable agent of each and every Insured hereunder for the purpose of giving and receiving notices tolfrom the Company. giving Instruction to or agreeing with the Company as respects Policy alteration, for making or receiving payments of premium or adjustments to premium, and as respects the payment for claims_ This proposal Is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; It is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/22/2024 Prepared for City of Lubbock Confidential. ® 2021 USI Insurance Services. All rights reserved. .� 43 The following locations anct ? or structures are covered under this Policy: LOCATION I LOCATION I STRUCTURE NAME SCHEDULED PHYSICAL SCHEDULED LOSS STRUCTURE DAMAGE LIMIT OF REVENUE LIMIT NUMBER 1 JOHN T. 1tONTFORD DAM S90,000,000 NCP 3099 LAKE ALAN HENRY RD JUSTICEBURG, TX 79330 "NO COVERAGE IS PROVIDED FOR THE EMERGENCY SPILLWAY- NCP TOTAL SCHEDULED VALUES 1 $90 000,000 1 MCP Excluded coverage or other coverages sought may be available: please discuss with USI Other exclusions and policy limitations may apply. Please refer to the actual policies for specific terms, conditions, limitations, exclusions and sublimits that will govern in the event of a loss. This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/22/2024 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. W.144 Insured Name: JOHN T. MONTFORD DAM CITY OF LUBBOCK TX Policy Number: Effective Date: 04i01/2024 ZURICH THIS DISCLOSURE IS ATTACHED TO AND MADE PART OF YOUR POLICY. DISCLOSURE OF IMPORTANT INFORMATION RELATING TO TERRORISM RISK INSURANCE ACT SCHEDULE' Premium attributable to risk of toss from certified acts of terrorism for lines of Insurance subject to TRIA: $13, 558 'Any information required 4c complete this Schedule, if not shown above, will be sham in the quote or proposal. A. Disclosure of Premium In accordance with the federal Terrorism Risk Insurance Act ('TRIA"), as amended, we are required Io provide you with a notice disclosing the portion of your premium, if any, attributable to the risk of lass from terrorist acts certified under that Act for line=_ subieG to TRIA- Thai portion of premium attributable is shown in the SchedtPe above. The premium shown jr, the Schedule above is subject to adjustment upon premium audit i applicable- B . Disclosure of Federal Participation in Payment of Terrorism losses You should know that where coverage is provided by this policy for losses resulting from cerfillied acts o terrorism. the United States Government may pay up to 805w of insured losses exceeding the stelvtodly established dedumtle paid by the insurance company providing the cow- rage- C. Disclosure of $100 billion Cap on All Insurer and Federal Obligations If aggregate insured losses annbutable to terronsl acts certfi=_E under TRIA exceed S 100 billion, in a calendar year (January 1 through December 311 and an insurer has met its deductible under the program, Ihal insurer shall not be liable fcr the payment of any portion of the amount of such losses that exceeds 51C'u bLon. and in such case insured losses up 10 that amount are subject to pro rala ailocafion in accordance with procedures eslablished by the Secretary of Treasur, . D. Availability As required by TRIA, we have made available to you for lines subject to TRIA coverage for losses resu;ling from acts o° terrorism certified under TRIA wim temis. amounts and Irmitations that do not differ materially from those for losses ansrng from events other than act- of larronsm. E. Definition of Act of Terrorism under TRIA TRL4 defines "act of terrorissl" as anv act that is certified by the Secretary of the Treasury, in accordance nti r -he- provisions a",the federal Terrorism Risk Insurance Act ('TRIA'), to be an act of terrorism. The Terrorism Risk Insurance Act provides that the Secretary of Treas.. r; s +,all certify an act of terrorism: 1. To be an act of terrorism; 2. To be a violent act or an act that is dangerous to human rife. property or infrastructure; 3_ To have resulted in damage within the United States, or outside of the United Srstes in the case of an air earner (as defined in section 40142 of Title 49, United States Code) or a United Slates flag vessel tar a vessel based principally in the United States. on which United States income tax is paid and whose insurance coverage is subject to regUalicn in the United Slates), cr the premises of a United Stales m ssion; and 4. To have been committed by an individual or individuals as pan of an effort to coerce the cmiian oopulatien of the United States or to irdluence she policy or affect the conduct of the Urnted States Cwvernment by coercion. No act may be carolled as an 'act of ter nrtnm` Ff the act is cornmitlad as part or Bw Lail se of a war declared by Congress fexcept for workers' cempensalion) or if losses resulting from the act in the aggregate for insurance subject to TRIA, do no- exceed S5,000,003. U-GU-632-E Caul (CV20p This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only; it is not a binder and does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 02/22/2024 Prepared for City of Lubbock Confidential. © 2021 USI Insurance Services. All rights reserved. y � 45