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HomeMy WebLinkAboutResolution - 2017-R0307 - Property Insurance Coverage For LP&L - 09_07_2017Resolution No. 2017-RO307 Item No. 2.5 September 7, 2017 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Manager of the City of Lubbock is hereby authorized and directed to purchase for and on behalf of Lubbock Power and Light, the City's municipal electric utility, property insurance coverage with the insurers listed in the attachment and pursuant to the terms and conditions stated therein, for which the premium amount shall not exceed a rate of .1310 per $100,00, said attachment is incorporated hereto as if fully set forth herein; and THAT the City Manager may execute any routine documents and forms associated with said insurance coverage. Passed by the City Council this September 7, 2017 "V DANIEL M. POPE, MAYOR ATTEST: APPROVE AS TO CON'; __ ... t Leisa Hutcheson, Director of Human Resources and Risk Management APPROVED AS TO FORM: Jef arts ll, Chief Litigation Attorney RES.Risk Mgmt-LP&L Property Ins. August 31, 2017 Resolution No. 2017-RO307 Commercial property Named insured: Lubbock Power and Light Insurance carrier: Associated Electric & Gas Insurance Services Ltd — Non -admitted A.M. Best rating: A XIII as of 2o16 Axis Surplus Insurance Company A.M. Best rating: A XV as of 2oi6-Non Admitted Policy number: TBD Policy term: 10/1/2017 to 10/1/2018 Premium: 8 466,133 (including surplus lines taxes/fees, services and terrorism) 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. Per schedule for locations reported to the company on 6/15/17 Policy form: Other Carrier Subscription Perils covered: Perils here. Risk of direct physical loss, subject to named policy terms, conditions and exclusions(including mechanical breakdown, earthquake, and flood.) Limit: $ $355,759,962 Property Damage including Business Interruption Total insured value: $ 405,995,071 Blanket coverage does not apply (Includes full BI value) Coinsurance: o% Deductibles: Please refer to carrier quote and coverage summary Appendix A Valuation: Based on Repair or Replacement 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: Please refer to carrier quote and coverage summary Appendix A Extensions or exclusions: Please refer to carrier quote and coverage summary Appendix A 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 speciflc terms, conditions, limitations, and exclusions. Proposal date: 8/22/2017 Prepared for Lubbock Power and Light Confidential. © 2017 Wells Fargo Insurance Services USA, Inc. All Rights Reserved. Page 13 AMA _ AEG IS'& Property All Risk - Proposal August 3, 2017 INSURED: Lubbock Power & Light 1301 Broadway St Lubbock, TX 79401-3227 PROPOSAL NUMBER: P05718101 M PROGRAM NAIVE: Lubbock BROKER: John L. Wortham & Son, L.P. Houston, TX POLICY PERIOD: October 1, 2017 to October 1, 2018 INSURANCE COMPANY: ASSOCIATED ELECTRIC AND GAS INSURANCE SERVICES LIMITED, HAMILTON, BERMUDA POLICY FORM: Other Carrier Subscription TERRITORY: This policy covers within the fifty states comprising the United States of America and the District of Columbia. COVERAGES: All Risks of direct physical loss or damage, including Property Damage, Extra Expense, Business Interruption and Machinery Breakdown, losses arising from Earth Movement, Named Windstorm, Storm Surge, Flooding and other coverages as more fully described in the policy. LIMITS OF LIABILITY: Primarv: $175.627.745 (50.00%) Dart of $351.255.489 excess of deductibles Associated Electric & Gas Insurance Services Limited 44.00% Axis Surplus Insurance Company 6.00% The Company will pay no more than the above limit(s) in any one occurrence. In addition, the Company will not be liable for more than its applicable proportionate share of the sublimits below which are part of and not in addition to the Limits of Liability. The subscribing companies' obligation under contracts of insurance to which they subscribe are several and not joint and are limited solely to the extent of their individual subscriptions. The subscribing companies are not responsible for the subscription of any co -subscribing company who for any reason does not satisfy all or part of its obligations. COVERAGE/SUBLIMITS: Coverage Sublimit Earth Movement $250,000,000 Per Occurrence and in the Annual Aggregate Flood $250,000,000 Per Occurrence and in the Annual Aggregate Named Windstorm $250,000,000 Per Occurrence and in the Annual Aggregate Flood Zone A or V (High Hazard) $30,000,000 Per Occurrence and in the Annual Aggregate QL02 (04/2017) 003348 Page 1 of 4 Property All Risk - Proposal overage Sublimit High Hazard Earth Movement $20,400,0 DEDUCTIBLES: QL02 (04/2017) Page 2 of 4 003348 44 Per Occurrence and in the Annual Aggregate Harried Windstorm (High Hazard) $100,400,000 Per Occurrence and in the Annual Aggregate Newly Acquired Property $50,000,040 Per Occurrence Property in the Course of Construction $25,400,400 Per Occurrence Personal Property $10,000,000 Per Occurrence including whilst temporarily Off Premises Valuable Papers $5,000,000 Per Occurrence Accounts Receivable $10,000,000 Per Occurrence Debris Removal $25,000,000 Per Occurrence or 25% of loss, whichever is greater Fire &Police Department Charges 8 Extinguishing Cost $2,000,000 Per Occurrence Expediting Costs $5,000,000 Per Occurrence Property in Transit $15,000,000 Per Occurrence Ingress/Egress and Prohibited Access 30 Days Per Occurrence limited to 1 mile of the plant Civil or Military Authority 30 Days Per Occurrence limited to 1 mile of the plant Contaminants &Pollutants $5,000,000 Per Occurrence Demolition and Increased COC $25,000,000 Per Occurrence or 115% of the declared values, whichever is less Errors &Omissions $10,000,000 Per Occurrence Misc Unnamed Locations $10,000,000 Per Occurrence Impounded Water 30 Days Per Occurrence Fine Arts $5,000,000 Per Occurrence Rental Transformers &Spare Equipment $10,000,000 Per Occurrence Claims Preparation Costs $500,000 Per Occurrence Recoveray of Salvage $5,000,000 Per Occurrence Pair &Set $10,000,000 Per Occurrence Electronic Data Processing Media Valuation $25,000,000 Per Occurrence Extra Expense $5,000,000 Per Occurrence Contingent BI $1,100,000 Per Occurrence Rental &Leased Equipment $5,000,000 Per Occurrence Business Interruption $6,500,000 Per Occurrence Property Damage $100,000 Per Occurrence Property Damage $100,000 Per Occurrence Non-generating/Transmission locations Property Damage $250,000 Per Occurrence Steam Turbine Generators Property Damage $250,000 Per Occurrence Combustion Turbine Generators Property All Risk - Proposal Property Damage $300,000 Per Occurrence in respect of Cooke #2 54.3 MW Turbine or Generator including Machinery Breakdown Property Damage $350,000 Per Occurrence in respect of Massengale #8 43MW Turbine or Generator including Machinery Breakdown Transit $50,000 Per Occurrence Electronic Data Processing Equipment $10,000 Per Occurrence Software and Hardware Contractor's Equipment $10,000 Per Occurrence High Hazard Flood 2.50 Percent Per Occurrence Minimum of $500,000 Maximum of $5,000,000 Named Windstorm 2.50 Percent Per Occurrence Minimum of $100,000 High Hazard Earth Movement 2.00 Percent Per Occurrence Minimum of $100,000 Transformers $25IKVA Per Occurrence subject to a minimum of $1.5 per KVA Minimum of $25,000 Business Interruption 30 Day Per Occurrence Contingent BI 24 Hour Per Occurrence Property Damage and Time Element deductibles apply separately to each loss. Should more than one Property Damage deductible apply to loss, only the largest applicable Property Damage deductible will apply. Should more than one Time Element deductible apply to a loss, only the largest applicable Time Element deductible will apply. VALUATION: Based on Repair or Replacement CO-INSURANCE: None CANCELLATION: 60 days notice of cancellation except 10 days for non-payment of premium. TOTAL INSURED VALUE: $351,255,489 as reported to the company on June 15, 2017 POLICY PREMIUM: Primary: $171,250 (50% AEGIS participation) part of $342,500 Premium distribution is based on the participation in the Limits of Liability for the subscribing companies. CONSORTIUM TERRORISM PREMIUM: Excluded DEDUCTIONS: PREMIUM DUE DATE QUOTE EXPIRATION DATE: QL02 (04/2017) 003348 Primary: 0% for broker commission. 30 days after binding. October 1, 2017 Page 3 of 4 Property All Risk - Proposal ENGINEERING FEE REIMBURSEMENT: Agree to reimburse up to 2.50% of the premium (max amount $4,281) for engineering loss control services, not including jurisdictional inspections, for the term of the policy. This payment shall not exceed the proportionate amount incurred for engineering loss control services, not including jurisdictional inspections by the Insured. Reimbursement will be made upon receipt of paid invoice only and not as a credit to the premium. If AEGIS Loss Control is the service provider, AEGIS will pay our proportionate share direct to AEGIS Insurance Services, Inc. Property Loss Control Services. CONDITIONS: Contingent upon review and agreement on policy wording, if other than AEGIS policy. All terms and Conditions for this program must be concurrent with rates, terms and conditions of all other property insurers participating on this program. Premium net of state and local surplus taxes. TERMS AND CONDITIONS: • AEGIS Membership and Voting Rights Endorsement • OFAC Exclusion • Total Terrorism Exclusion ATTACHMENTS: L222 (05/2013) AEGIS Membership and Voting Rights Endorsement L265 (01/2015) OFAC Exclusion L210 (05/2013) Total Terrorism Exclusion By Authorized Signature QL02 (04/2017) 003348 Page 4 of 4 Au ust 3, 2017 Date