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HomeMy WebLinkAboutResolution - 2014-R0296 - Purchase - Property Insurance Coverage - American Home Insurance Company - 09_04_2014Resolution No. 2014-RO296 September 4, 2014 Item No. 2.9 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LIJBBOCK: THAT the City Manager of the City of Lubbock is hereby authorized and directed to purchase for and on behalf of the City of Lubbock, property insurance coverage from American Home Insurance Company, for a premium amount not to exceed a rate of .0934 per $100.00; and THAT the City Manager may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council this September 4, 2014 �e" --- �GLEWR06i?ff�ON, MAYOR ATTEST: Rebe a Garza, City Secretary APPROVED AS TO CONTENT: Leisa Hutcheson, Director of Human Resources and Risk Management APPROVED AS TO FORM: i HaAsefl, Assistant City Attorney RES.Risk Mgmt-American Home Ins. August 27, 2014 Commercial property — Option I Named insured: City of Lubbock Insurance carrier: Texas Municipal League — TML Policy number: TBD Policy term: October 1, 2014 to October 1, 2015 Premium: $ 524,219 with $26,975,544 BI / $513,735 if the City pays annual to TML by 11/1/14 $512,387 with $5M BI / $502,139 if the City pays annual to TML by 11/1/14 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 locations to be covered. Policy form: Special Form Perils covered: Perils here. Risk of direct physical loss, subject to named policy terms, conditions and exclusions. Excludes Equipment Breakdown / Quoted separately through HSB. Total insured value: $ 932,153,252 Real property —building, business personal property, business interruption Policy Limit: $ 400,000,000 Maximum liability in any one occurrence as a result of all covered loss or damage regardless of the number of covered locations, coverages, or Covered Causes of Loss under this Policy $ 25,000,000 Flood & Earthquake $ 28,147,817 Mobile Equipment $ 99,324,714 Automobile Catastrophe Coverage $ 1,000,000 LP&L Poles and Transformers $ 5,000,000 Valuable Papers, Records, & EDP Media $ 5,000,000 Accounts Receivable $ 26,975,544 Loss of Revenue, Extra Expense, & Rental Value $ 5,000,000 Leasehold Interest $ i,000,000 Newly Acquired Property $ 25,000,000 Terrorism Deductibles: $250,000, except; $50,000 - 7 Designated Locations (leased): LIA Hangar Bldg. *310 (Chaparral), 5417 N Walnut i LIA Warehouse Bldg. #722 (Thiel), 55oo N Zenith i LIA Hangar #32 (G&G Avionics), 5902 N Cedar LIA Warehouse Bldg. #710 (Nortec), 2828 E Dubuque LIA Warehouse Bldg. *714, (Marco), 5612 N David Ave LIA Warehouse Bldg. *716 (Marco Steel), 5618 N David Ave i LIA Warehouse Bldg. #721 (Thiel), 5501 N Zenith Valuation: Real Property Replacement cost basis at site of loss Personal property Replacement cost basis at site of 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. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 12 Commercial property Property disclaimer: Your property carrier will provide building, business personal property, business income and extra expense coverage subject to policy conditions and exclusions. It is your responsibility to notify Wells Fargo'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 and conditions: i. Real & Personal Property deductible is on a per occurrence basis, rather than a per building basis, and there is no coinsurance penalty. 2. Flood & Earthquake coverage is provided as an option under Real & Personal Property Coverage and may not be purchased separately. Flood & Earthquake limit is the aggregate limit for all losses occurring during the fund year. Limitations apply to properties in Flood Zones A and V located in the lust tier of counties and in Harris, Orange and Jackson counties. 3. Annual payment Discount applies if full annual contribution is paid within 3o days of the effective date, or receipt of your first bill, whichever is later. (The Annual Payment Discount does not apply to public officials' bonds or windstorm coverage for Tier I members.) Deductible Buy -down options: Automobile Catastrophe — $50,000 - $89,392 additional annual contribution Mobile Equipment - $25,000 - $79,377 additional annual contribution Additional coverage: Transportation $1,000,000 Named Storm Loss Limit Automatic/Newly Acquired - 90 Days $1,000,000 Boiler & Machinery Excluded Brands and Labels Loss Limit Consequential Reduction in Values Loss Limit Control of Damaged Property Loss Limit Course Of Construction (COC) Loss Limit (if reported) COC Testing Included COC Time Element Included in EE Debris Removal Included Decontamination Costs $20,00o each premise Defense Cost Unlimited Demolition and Increase Cost of Loss Limit Construction (ICC) Unintentional E&O Loss Limit Exhibits, Expositions, Fairs & Trade Shows Loss Limit Fire Dept. Surcharge Included Leasehold Interest- 365 days max $5,000,000 Misc. Unnamed Locations Loss Limit Service Interruption Loss Limit Tax Treatment of Profits Included in EE Extra Expense $5,000,000 Rental Insurance Included in EE Ingress/Egress - 3o Days Included Order of Civil Authority - 3o Days/1 mile Included - 2 Weeks Impounded Water Loss Limit This proposal is merely a descriptive summary of coverage provided by the Insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential. ,2_i 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 13 Commercial property Schedule of locations This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential. 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 14 Property Boiler and machinery Named insured: City of Lubbock Insurance carrier: Hartford Steam Boiler and Inspection Insurance Company— Admitted A.M. Best rating: A+XV as of 2013 Policy number: TBD Policy term: October 1, 2014 to October 1, 2015 Premium: $470,970.0o as per expiring Coverage: Equipment breakdown coverage —See policy form Policy form: Special Form Location: Per Statement of Values submitted on July 30, 2014 TIV: $901,777,764 Limits: $ 50,000,00o Equipment breakdown limit $ Included Property damage $ Excluded Off premises property damage $ 5,000,00o Business income $ Combined with Extra expense Business Income $ 100,00o Service interruption $ Excluded Contingent business income $ 100,00o Perishable goods 8 100,00o Data restoration $ 100,00o Demolition $ 100,00o Ordinance or law $ 250,00o Expediting expenses $ 100,00o Hazardous substances $ 2,500,00o Newly acquired locations $ 25,00o Green $ 25,000 Mold Deductibles: $ 50,00o Direct coverages $ 1.50 per KVA Except transformers $25/KVA, $50,000 min $ 100,00o Except Electrical Generating Equipment 24 hours Indirect coverages Deductible Exceptions - See Power Generating Stations $100,00o except Endorsement. Steam and Gas Turbines and Driven Generators - $250,00o except Cook #2 54.3 MW Turbine or Generator - $350,000 except Massengale #8 43 MW Turbine or Generator - $500,000 Perils covered: Risk of direct physical loss, subject to named policy terms, conditions, and exclusions [including mechanical breakdown, excluding earthquake and flood]. This proposal is merely a descriptive summary or coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation or coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/27/2014 Prepared for City or Lubbock Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 15 Property Boiler and machinery Terms and conditions: a Newly Acquired Locations: go Days • For any gas turbine, `accident' does not include the cracking of any part exposed to the products of combustion. • Covered equipment' does not include any rotating biological contactor. • Covered property' does not include transmission and distribution lines. • Equipment 25 years or older will be valued at Actual Cash Value. • ACV on all Gas/Turbine Generator Units over 15 years of age. • Extended Period of Restoration: 3o Days • Interruption of Service Waiting Period: 24 Hours • Business Income and Extra Expense coverages are excluded as respects any `accident' to `electrical generating equipment'. • Combined BI/EE excluded at Power Generation locations. Extra Expense sublimit $1oo,000 does not apply to generation of power. • "Covered property" does not include plastic media used in trickle filters or other sewage processing equipment. • Coverage is excluded on all units which are off-line and/or otherwise inoperative for a period of go or more consecutive days, unless the unit (s) is under -going repairs. As respects off-line or otherwise in operative units not undergoing repairs, coverage will be subject to a 72 hour waiting period on all such units returned to active service. • As referenced here- in, the term "unit" is defined as a boiler, turbine, or generator. The company shall be notified in advance of all units scheduled to undergo startup operations. • Waiver of Subrogation — Trans Canada Turbines, Ltd 150 Palmer Road NE, Calgary, Alberta T2E7R3 • Idle Units at Massengale Station are excluded, all coverages. (Units 4, 5, and the old Nordberg diesels) In addition to state required inspections, quote includes the following additional services: c Includes Infrared Testing and On Site Risk Evaluations at the turbine/generator facilities. o Additional 5 Days of Infrared Testing at owned substations. L) Includes Transformer Oil and Gas on all owned Transformers. HSB will continue to maintain contract to pull samples. Includes 1 training seminar o Includes HSB CT Authorized Inspection Services o HSB will perform lube oil samples on steam turbines in coordination with the City of Lubbock to compare with in-house sampling results for validation This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential. CCJ 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 16 Commercial property — Option II Named insured: City of Lubbock Insurance carrier: American Home Insurance Company - Admitted A.M. Best Rating A XV as of 2013 Policy number: TBD Policy term: October 1, 2014 to October 1, 2015 Premium: $954,923 including TRIPRA premium charge of $8,775 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 locations to be covered. Policy form: Special Form Perils covered: Perils here. Risk of direct physical loss, subject to named policy terms, conditions and exclusions. Includes Equipment Breakdown. Total insured value: $ 1,022,213,63o Real property —building, business personal property, business income Policy limit: $ 500,000,000 Maximum liability in any one occurrence as a result of all covered loss or damage regardless of the number of covered locations, coverages, or Covered Causes of Loss under this Policy Sublimits (Applicable to i. Earth Movement — Specified Covered Causes of S 50,000,000 a. Annual Aggregate Loss) b. Subject to A.i.a. above, the Annual Aggregate for all loss or damage arising out of Earth Movement for any location wholly or partially within the following states and territory combined: California, Alaska, Hawaii, and Puerto Rico: $Not Covered c. Subject to A.i.a. above, the Annual Aggregate for all loss or damage arising out of Earth Movement for any location wholly or partially within the Pacific Northwest Earthquake Zone Counties: $Not Covered d. Subject to A.i.a. above, the Annual Aggregate for all loss or damage arising out of Earth Movement for any location wholly or partially within the New Madrid Earthquake Zone Counties: $Not Covered 2. Flood S 50,000,000 a. Annual Aggregate b. Subject to A.2.a. above, the Annual Aggregate for all loss or damage due to all Flood for any location wholly or partially within Special Flood Hazard Areas (SFHA) as defined by the Federal Emergency Management Agency (FEMA): $25,000,000 This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 17 Commercial property Sublirnits (continued): S 500,000,000 3. Named Storm a. This is our maximum liability in any one occurrence for Named Storm as a result of all loss or damage regardless of the number of covered locations, coverages, or Covered Causes of Loss under this Policy. b. Subject to the Named Storm Sublimit, in the event loss or damage by Flood that occurs concurrently or in any sequence with a Named Storm, the maximum amount we will pay per occurrence for all such loss or damage by Flood shall be the sublimits of liability for Flood as shown in A.2.a. and/or A.2.b., and/or A.2.c. whichever is/are applicable. However, if Flood is not covered, the maximum amount we will pay per occurrence for all such loss or damage by Named Storm shall exclude loss or damage by Flood. 4. Terrorism Covered and Included Within the Policy Limit This is our maximum liability in any one occurrence for terrorism as a result of all loss or damage regardless of the number of covered locations, coverages, or Covered Causes of Loss under this Policy. $ 100,000,000 5. Equipment Breakdown a. This is our maximum liability in any one occurrence for equipment breakdown as a result of all loss or damage regardless of the number of covered locations, coverages, or Covered Causes of Loss under this Policy. Sublimits (Each of these $ io,000,000 Accounts Receivable sublimits is part of, and not in $ ioo,000 Arson or Theft Reward addition to the Policy Limit) $ 5,000,000 Brands and Labels $ 500,00o Building Materials at Off Premises Storage for Property Under Construction $ 2,500,00o Debris Removal or 25% of direct physical loss or or 25% of direct damage to all covered property, whichever is less physical loss damage to all covered property whichever is less 250,00o Deferred Payments Demolition and Increased Cost of Construction: Demolition Coverage A: No Sublimit Applies Demolition Coverage B: $25,000,000 Demolition Coverage C: $25,000,000 Included Electronic Data and Media $ 5,000,00o Errors or Omissions $ 5,000,00o Expediting Expenses This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 18 Commercial property Sublimits (continued): $ 5,000,000 Fairs or Exhibitions $ 25,000,00o Fine Arts - maximum $50,000 per item $ 500,00o Fire Brigade Charges and Extinguishing Expenses $ 250,00o Fungus, Mold or Spore $ 1,000,00o Installation Coverage $ i,000,000 Land and Water Clean -Up $ ioo,000 Locks and Keys $ 2,500,000 Machinery or Equipment - Applicable to a Startup Option: separate occurrence only $ 5,000,000 Miscellaneous Unnamed Locations $ ioo,000 Money and Securities $ 50,000,00o Newly Acquired Property (12o Days) $ 500,000 Outdoor Property No Sublimit Applies Pairs or Sets $ i,000,000 Personal Property Not at a Covered Location: $ 1,000,00o Preservation of Property $ 250,000 Professional Fees $ 1,000,000 Railroad Rolling Stock $ 500,000 Salespersons Samples $ 5,000,000 Service Interruption $ 5,000,000 Spoilage $ 5,000,00o Transit 25% of the amount Upgrade to Green® payable for direct physical loss or damage, subject to a $ maximum $ 5,000,000 Valuable Papers and Records $ io,000,000 Vehicle Physical Damage Sublimits (Applicable to 3o days, subject to a Additional Time Element maximum of Coverages - Each of these $ i,000,000 Attraction Property sublimits is part of, and not in $ 5,000,000 Contingent Time Element addition to the Policy Limit $ ioo,000 Contractual Penalties and any other sublimits) 3o days, subject to a maximum of $ ioo,000 Crisis Management $ i,000,000 Electronic Data and Media: $1,000,000 365 Days Extended Period of Indemnity $ 25,000,000 Extra Expenses; except $ ioo,000 Power Generation locations This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential.. 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 19 Commercial property Sublimits (Applicable to Additional Time Element Coverages - Each of these $ sublimits is part of, and not in addition to the Policy Limit and any other sublimits) $ 3o days, subject to a maximum of i,000,000 Ingress & Egress 3o days, subject to a maximum of i,000,000 Interruption by Civil or Military Authority ioo,000 Logistics Extra Cos 250,000 Rental Value ioo,000 Royalties 5,000,000 Service Interruption Qualifying period: 24 hours 500,000 Soft Costs: $500,000 5,000,000 Business Income/Business Interruption, except Not Covered at Power Generation Locations Contractor's Equipment 750,000 Per Item io,000,000 Maximum any one occurrence Deductibles: 1. $250,000 for all Flood, including Contingent Time Element loss arising out of Flood except: 2. 5% of Total Insurable Values at the time of the loss at each covered location involved in the loss or damage, including Contingent Time Element loss, subject to a minimum of $i,000,000 any one occurrence for all loss or damage arising out of Flood at any location wholly or partially within Special Flood Hazard Areas (SFHA) as defined by the Federal Emergency Management Agency (FEMA). D. Named Storm: 1. o% of Total Insurable Values at the time of the loss at each covered location involved in the loss or damage, including Contingent Time Element loss, subject to a minimum of $250,000 any one occurrence for all loss or damage arising out of Named Storm. E. Equipment Breakdown: 1. $25,000 for all loss or damage to covered equipment and any time element coverage provided under SECTION VI — TIME ELEMENT COVERAGES per occurrence 2. If one or more deductibles are shown below, each will be applied separately: a. Not Covered for all loss or damage to covered equipment per occurrence b. 24 Hours for time element coverage provided under SECTION VI — TIME ELEMENT COVERAGES per occurrence c. Not Covered for time element coverage provided under SECTION VI — TIME ELEMENT COVERAGES during the period of indemnity This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential. 9- 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 20 Commercial property Deductibles (continued): d. Not Covered following the occurrence per covered location for time element coverage provided under SECTION VI - TIME ELEMENT COVERAGES 3. Transformers: $25/KVA min. $i.5o per KVA, $25,000 Minimum per occurrence 4. Electrical Generating Equipment: $ioo,000 per occurrence 5. Power Generating Stations: $100,00o per occurrence 6. Steam and Gas Turbines and Driven Generators: $250,000 per occurrence 7. Cook #2 54.3 MW Turbine or Generator: $350,000 per occurrence 8. Massengale #8 43 MW Turbine or Generator: $500,00o per occurrence As used above, average daily value means your business income that would have been earned during the period of indemnity, divided by the number of operating days in that period. F. Windstorm or Hail: $250,000 Per Occurrence except: G. LIA Hangar Building *310 (Chaparral) - 5417 N. Walnut: $50,00o per occurrence H. LIA Warehouse Building *722 (Thiel) - 550o N. Zenith: $50,00o per occurrence I. LIA Hangar #32 (G&G Avionics) - 5902 N. Cedar: $50,000 per occurrence J. LIA Warehouse Building #710 (Nortec) - 2828 E. Dubuque: $50,000 per occurrence K. LIA Warehouse Building #714 (Marco) - 5612 N. David Avenue: $50,000 per occurrence L. LIA Warehouse Building #71.6 (Marco Steel) - 561.8 N. David Avenue: $50,000 per occurrence M. LIA Warehouse Building #721(Thiel) - 5501 N. Zenith: $50,000 per occurrence N. Time Element: 24 Hours As used above, average daily value means your business income that would have been earned during the period of indemnity, divided by the number of operating days in that period. This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All REghts Reserved, Page 21 Commercial property Deductibles (continued): O. Contractor's Equipment: $25,000 per occurrence (applies to equipment less than $250,000 in value) P. Contractor's Equipment: $50,000 per occurrence (applies to equipment valued $250,000 or greater) Q. P. Electronic Data Processing Equipment (Hardware): $25,000 per occurrence The following two paragraphs apply to the deductibles set forth in Item ii.A. through Item ii.Q. above, inclusive: In each case of loss or damage covered by this Policy, we shall not be liable unless you sustain loss or damage in a single occurrence greater than any applicable deductible described herein. When this Policy covers more than one covered location, the deductible shall apply against the total loss or damage covered by this Policy in any one occurrence, unless otherwise stated herein. If two or more deductible amounts provided in this Policy apply to a single occurrence, the total to be deducted shall not exceed the largest deductible applicable unless otherwise stated in this Policy. If covered loss or damage by Flood occurs concurrently or in any sequence with a Named Storm, then we shall apply the Flood deductible set forth in Item ii.C. or the Named Storm deductible set forth in Item ii.D., whichever is greater. Valuation: Real Property Replacement cost basis at site of loss Personal Property Replacement cost basis at site of loss Property disclaimer: Your property carrier will provide building, business personal property, business income and extra expense coverage subject to policy conditions and exclusions. It is your responsibility to notify Wells Fargo'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 and conditions: Additional Time Element Provisions: A. Ordinary Payroll: Provided for 18o days Not Provided B. Maximum Operations Period of Indemnity (Gross Profits): Not Covered C. Maximum Construction Period of Indemnity (Gross Profits): Not Covered Maximum Amount Payable: A. In the event of covered loss or damage hereunder, our liability shall be limited to the lesser of the following: i. The actual adjusted amount of loss or damage, less applicable deductible(s), or 2. The limit of liability or applicable sublimit of liability shown in this Policy or endorsed onto this Policy. This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential. @, 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 22 Commercial property Special i. Signed Statement of Values (SOV, Autos, Equipment Schedule) — required at Conditions/Subjectivities: binding 2. Signed TRIA Form 3. Proof of tax exempt status to waive inspection fee sales tax of 8.25% 4. Favorable inspections and compliance with recommendations (if any) 5. Contractor's Equipment is valued at Replacement Cost 6.Off-Premises Property Damage is excluded as respects Equipment Breakdown (as expiring) 7. Business Income/Business Interruption is excluded at Power Generation Locations 8. Designated Adjuster: Trey Johnson, EGA, York Claims Service, 55oi LBJ Freeway, Suite 300, Dallas, TX. 75240 9. `Covered Equipment' does not include any rotating biological contractor io. `Covered Property' does not include transmission and distribution lines 11. `Covered Equipment' 25 years or older will be valued at Actual Cash Value 12. All Gas/Turbine Generator Units over 15 years of age will be valued at Actual Cash Value 13. The cost to purchase power for resale or to meet contract obligations is excluded. 14. `Covered Property' does not include plastic media used in trickle filters or sewage processing equipment 15. For any gas turbine, "accident" does not include the cracking of any part exposed to the products of combustion i6. Coverage is excluded on all units which are off-line and/or otherwise inoperative for a period of go or more consecutive days, unless the unit(s) is undergoing repairs. As respects off-line or otherwise inoperative units not undergoing repairs, coverage will be subject to 72-hour waiting period on all such units returned to active service. As referenced herein, the term "unit" is defined as a boiler, turbine or generator. The company shall be notified in advance of all units scheduled to undergo startup operations. 17. Idle Units at Massengale Station are excluded, all coverages (Steam Turbine Generator Units 4 and 5 and Nordberg Diesel Generator Units) i8. In addition to state required inspections, quote includes the following additional services: a) Infrared Testing and On -Site Risk Evaluations at the turbine/generator facilities, b) Additional five (5) days of Infrared Testing at owned substations, c) Transformer Oil & Gas on all owned Transformers This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 23 Commercial property Schedule of locations This proposal is merely a descriptive summary of coverage provided by the insurance companies being proposed and should be used for reference purposes only. This is a quotation of coverage only. It is not a binder. This proposal does not amend or alter the insurance contract. Please refer to the policy contract for specific terms, conditions, limitations, and exclusions. Proposal date: 8/25/2014 Prepared for City of Lubbock Confidential. © 2014 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 24