HomeMy WebLinkAboutResolution - 2022-R0152 - Montford Dam Property Insurance from Zurich American InsuranceResolution No. 2022-RO152
Item No. 7.10
March 22, 2022
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 $166,488.00; 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
ATTEST:
Re ecca Garza, City ASe"y—
APPROVED AS TO CONTENT:
D. lu Kostelich, Chief Financial Officer
APPROVED AS TO FORM:
amhrtsell, Deputy City Attorney
vw/ccdocs/Res.Risk Mgmt-Zurich American Ins.
March 14, 2022
March 22, 2022
"I ,
DANIEL M. POPE, MAYOR
Resolution No. 2022-RO152
John T. Montford Dam Property
Insurance Company: Zurich American Insurance Company
Policy Term: 04/01/2022 to 04/01/2023
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.
Term Premium: $166,488 — Annual
POLICY LIMIT OF LIABILITY
This Policy shall pay no more than $50,000.000 for any one occurrence, subject to the following SubBmits of Liability and
Annual Aggregate Limits of Liability. In no event shall this Pollcy'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.
SURLIMITS OF LIABILITY
The Policy shall pay no more than the following Sublimlgs) of Liability In any one occurrence.
NOTE: Coverage shall only apply for Individual subllmtts when a dollar amount Is entered below: In no event shall
these Subllmlts of Liability Increase the Policy Limit of Liability.
(1)
$
50,000,000
Physical Damage Coverage to the Covered Property;
(2)
S
NCP
Loss of Revenue;
(3)
$
50,000
Accounts Receivable;
(4)
NCP
Interruption by Civil or Military Authority,
(5)
S
500,000
Expediting Expense;
(6)
$
500,000
Extra Expense,
m
$
5,000,000
Or 250/6 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)
$
500,000
Newly Acquired Locations;
(12)
E
1,000,000
Ordinance or Law / Demoittlon or Increased Cost of Construction;
(13)
$
2,500,000
Transit - any one conveyance;
(14)
$
25,000
Valuable Papers & Records;
(15) $ 50,000,000 Terrorism
ANNUAL AGGREGATE LIMIT(S) OF LIABILITY
The maximum amount the Company will pay for loss or damage In any one occurrence, and/or 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
ius�.
DEDUCTIBLES AND WAITING PERIOIXSSj
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. Subiimits or Annual Aggregate Limits of Liability as
stated above
A. $
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. $
2,000,000
As respects EARTHQUAKE;
D. $
2,000,000
As respects FLOOD*
E. $
2,000,000
As respects NAMED STORM'
F.
NCP
Walling 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.
It Loss of Revenue Coverage Is provided under this Policy, the Walling Period stated above will always be applied In
addition to any dollar deductible stated for physical damage.
ENDORSEMENT NAME
FILL-IN INFO IF
X
Schedule of Covered Property. U-CWP-0010-A
Per Addendum A
X
Cyber Exclusion, U-CWP-0117-A
-
CANCELLATION PROVISION 60 Days except 10 Days for nonpayment of premium
VALUATION
(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.
(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 Enginering Recommendations
COVERAGE IS NOT CONTEMPLATED UNLESS SPECIFICALLY ADDRESSED IN THE ABOVE INDICATION.
USI
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 LISI'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
Extensions or Exclusions:
Propertv 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.
Conseauential 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; and other per the Policy.
The following locations and / or structures are covered under this Policy:
LOCATION /
LOCATION / STRUCTURE NAME
SCHEDULED PHYSICAL
SCHEDULED LOSS
STRUCTURE
DAMAGE LIMIT
OF REVENUE LIMIT
NUMBER
1
JOHN T. MONTFORD DAM
$80,600,000
NCP
3099 LAKE ALAN HENRY RD
JUSTICEBURG TX 79330
TOTAL SCHEDULED VALUES $80,600,000 NCP
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.
USI
Insured Name: JOHN T. MONTFORD DAM CITY OF LUBBOCK TX
Policy Number. IM-9808906-07
Effective Date: 10/1/2021
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 loss from certified acts of terrorism for Imes of Insurance subject to TRIA:
$8,320- annual
*Any information required to complete this Schedule, If not shown above, will be shown in the Declarations.
A. Disclosure of Premium
In accordance with the federal Terrorism Risk Insurance Act ("TRIA'), as amended, we are required to provide you
with a notice disclosing the portion of your premium, If any, attributable to the risk of loss from terrorist acts certified
under that Act for Imes subject to TRIA. That portion of premium attributable Is shown In the Schedule above_ The
premium shown in the Schedule above Is subject to adjustment upon premium audit, if applicable.
B. Disclosure of Federal Participation In Payment of Terrorism Losses
The United States Government may pay a share of Insured losses resulting from an act of terrorism. The federal
share will decrease by 5% from 85% to 80% over a five year period while the insurer share Increases by the same
amount during the same period_ The schedule below Illustrates the decrease in the federal share:
Januaryl, 2015 - December 31, 2015 federal share: 65%
Januaryl, 2016 - December 31, 2016 federal share: 84%
Januaryl, 2017 -- December 31, 2017 federal share: 83%
Januaryl, 2018 - December 31, 2018 federal share: 62%
Januaryl, 2019 - December 31, 2019 federal share: 81 %
Januaryl, 2020 - December 31, 2020 federal share. 80%
C. Disclosure of $100 Billion Cap on All Insurer and Federal Obligations
If aggregate Insured losses attributable to terrorist acts certified under TRIA exceed $100 billion In a calendar year
(January 1 through December 31) and an Insurer has met its deductible under the program, that Insurer shall not be
liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in such case Insured
losses up to that amount are subject to pro rat@ allocation in accordance with procedures established by the Secretary
of Treasury
USl
D. Availability
As required by TRIA. we have made available to you for Imes subject to TRIA coverage for losses resulting from acts
of terrorism certified under TRIA with terms, amounts and limitations that do not differ materially from those for losses
arising from events other than acts of terrorism.
E. Definition of Act of Terrorism under TRIA
TRIA defines "act of terrorism" as any act that Is certified by the Secretary of the Treasury, in accordance with the
provisions of the federal Terrorism Risk Insurance Act ("TRIA'), to be an act of terrorism. The Terrorism Risk
Insurance Act provides that the Secretary of Treasury shall 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 life, property or Infrastructure;
3. To have resulted in damage within the United States, or outside of the United States in the case of an air carrier
(as defined In section 40102 of Title 49, United States Code) or a United States flag vessel (or a vessel based
principally In the United States, on which United Slates Income tax Is paid and whose insurance coverage Is
subject to regulation in the United States), or the premises of a United States mission; and
4. To have been committed by an Individual or Individuals as part of an effort to coerce the civilian population of the
United States or to Influence the policy or affect the conduct of the United States Government by coercion.
No act may be certified as an act of terrorism If the act Is committed as part of the course of a war declared by
Congress (except for workers' compensation) or If losses resulting from the act, In the aggregate for Insurance subject
to TRIA, do not exceed $5,000,000.
U-GU-630-D CW (01115)
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