HomeMy WebLinkAboutResolution - 2015-R0283 - Direct To Purchase Property Insruances - Zurich American Insurance Company - 09/10/2015No. 2015-RO283
No. 6.7
10, 2015
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock or his designee 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, pursuant to the terms and conditions
attached hereto as Exhibit "A," and in a final form acceptable to the City Manager and City
Attorney for a total premium in an amount not to exceed $108,280; 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 September 10, 2015
G C. R BERTSON, MAYOR
ATTEST:
Re ec t
Garza, City Secretary
� AS T ONTENT:
7
Leisa Hutcheson, Director of Human Resources
and Risk Management
APPROVED AS TO FORM:
n
J art1T, Chief Litigation Attorney
vw/ccdocs/Res.Risk Mg t -Zurich American Ins.
August 25, 2015
Resolution No. 2015-RO283
Commercial property - John T. Montford Dam
Named insured:
John T. Montford Dam / City of Lubbock, TX, Lubbock, TX 79457
Insurance carrier:
Zurich American Insurance Company—Admitted
A.M. Best rating: A+, XV as of 2014
Policy number:
TBD
Policy term:
October 1, 2015 to October 1, 2o16
Premium: $108,280.00 (Includes Terrorism Premium of $2,123)
Coverage: This policy insures against direct physical loss or damage to Real & Personal
Property from a covered loss and any resulting Loss of Revenue as more fully
defined within the Policy.
Policy form: Special Form
Perils covered: Risk of direct physical loss, subject to named policy terms, conditions and
exclusions. Includes Equipment Breakdown.
DESCRIPTION OF COVERED PROPERTY
John T. Montford Dam at Lake Alan Henry or as declared in ADDENDUM A — SCHEDULE OF COVERED PROPERTY.
ESTIMATED VALUES
$ 72,005,179 Property Values
$ NCP Loss of Revenue Values
72,005,179 TOTAL INSURED VALUES
Breakdown of values by structure & location can be found under ADDENDUM A
INSURING AGREEMENT
Subject to the terms, exclusions, limitations and conditions, this Policy insures against all risks of direct physical loss of
or damage to Covered Property while at the location listed above and occurring during the term of the policy.
POLICY TERRITORY
This Policy covers the 50 states comprising the Uni�ed States of America and District of Columbia unless otherwise
endorsed to the Policy.
COVERED PROPERTY
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 within the 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: 8/25/2015 Prepared for City of Lubbock
Confidential. @ 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
Page 25
John T. Montford Dam (continued)
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 & Seft ing; 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 /
Demolition or Increased Cost of Construction; Loss Adjustment Expense; Ingress/Egress; Civil Authority; Valuable Papers
and Newly Acquired Locations
POLICY LIMIT OF LIABILITY
This Policy shall pay no more than $50.000.000 for any one occurrence, subject to the following Sublimits of Liability and
Annual Aggregate Limits of Liability. In no event shall this Policys 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 sublimlts when a dollar amount is entered below: In no event
shall these Sublimits of Liability increase the Policy Limit of Liability.
(1)
$
50,000,000
Physical Damage Coverage to the Covered Property;
(2)
$
NCP
Loss of Revenue;
(3)
$
50,000
Accounts Receivable;
(4)
14 Days
Interruption by Civil or Military Authority;
(5)
$
500,000
Expediting Expense;
(0)
$
500,000
Extra Expense;
(T)
$
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)
14 Days
Ingress and Egress;
(10)
$
100,000
Loss Adjustment Expense;
(11)
$
500,000
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 Terrorism
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: 8/25/2015 Prepared for City of Lubbock
Confidential. ® 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
Page 26
John T. Montford Dam (continued)
ANNUAL AGGREGATE LIMIT(Sl 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
DEDUCTIBLES AND WAITING PERIOD(S)
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. Sublimity 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. $
25,000
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 Days 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 Wafting Period stated above will always be applied in
addition to any dollar deductible stated for physical damage.
ENDORSEMENT AME
FILL-IN INFO IF Y
X Schedule of Covered Property
Per Addendum A
Specified Physical Damage Deductibles
Deductible Aggregate —Physical Damage
$
Pollutant Clean Up & Removal
Multi Year Tenn — Loss Ratio & Rate Guarantee
_
Multi Year Term — Loss Ratio onlyContingent
Loss of Revenue
Off Premises Service Interruption — PD & LoR
$
Subscri tion / Participation Policy Provisions
Amendment to Deductible & Waiting Period - %
Claims Cooperation Clause
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 polity contract for specific terms, conditions, limitations, and exclusions.
Proposal date: 0/25/2015 Prepared for City of Lubbock
Confidential. C 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved,
Page 27
John T. Montford Dam (continued)
The Estimated Tenn Deposit Premium for this Policy is $_ If the term of this Policy exceeds 12 months, the total
premium shown below shall be an estimate for the full Policy term and only the first year's premium shall be charged at
inception. Each subsequent year shall be charged a premium based upon the values at risk times the annual rate in
accordance with the reporting provision noted in (2) below.
Exposure
Original Policy
Term
Annual Rate
Deposit
Premium
Property Damage
1.003 Year(s)
0.1471$100
$106,157
Loss of Revenue
1.003 Year(s)
NCP/ $100
NCP
TERM Policy Premium excluding Terrorism:
$106,157
Terrorism Coverage3
1.003 Year(s) 1 /$100
$2,123
Total Estimated TERM Policy Premium:
$108,280
State Assessments & Surcharges - N/A:
$N/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 shippers 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 fime. 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
ADDENDUM A - SCHEDULE OF COVERED PROPERTY
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
Lake Alan HenryI John T. Montford Dam
$69,120,000 NCP
2
Structure/Building-3904 Lake Alan Henry,
$2,885,279 NCP
Justicebur , TX 79330
TOTAL SCHEDULED VALUES 1 $72,005,279 1 NCP
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: 8/25/2015 Prepared for City of Lubbock
Confidential, Q 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
Page 28
John T. Montford Dam (continued)
THIS DISCLOSLRE DOES -NOT GP-kNT k\T CONTFUGE OR CSA\GE THE TER1f5 3\D
COMMONS OF.1\T CON-BLIGE LEER jLNY POLICY.
DISCLOSURE OF LIIPORTAi\T WFORAMATION
RELATING TO TERRORISM RISK LNSURANCE ACT
Pranatmatmbumble mask of loss from carmfied aces of tesmimmr lines of insurance subject m TRLA�
$2.123 -Applicable to Operational Cetil Works Policy
•Any mfmmatio mgwedm complm this Schedule, ifmt sbarr above. will be showy m the quwe orproposal
A. Disclosare of Premium
In accordance with the federal Termsm Risk Im armwe An C'TRIA-). as amended ue are required to prmide %m with a notice
disclosing the pmtim of lour prenwsa if am'. arniburabte w the risk of loss from terrorist acw cero&d staler that An for Imes
subject w MA. That portion of immarum atmbvable n shnwa in the Schedule above. The premium sboun in the Schedule abate
is subject to adjustment Won premium audir. tf applicable.
B. DisclosmeofFederdParticipalionm Pasmentef Terrorism Losses
The United Sates Cmtzram®r may pav a share ofmmred losses resultioze fromanact oftemarim The&deml share equals 850o
of that portion of the amount of such mored losses tfat exceeds the mmrer retenmon Themstuer n emon eguah'_0°o of the
imutv'sprioreslen&,%erdi eamedpremi®m=amdwithlx ofinsmaacembje wTRla TRLAuscheduledmespre
ouDecember 31.'_011.
C. Declome of 5300 Bilk Cap on ABluzarer aad Federal Obligoolos,
Ifarmepte mind losses attributable m Terrorist acts cerdEed nn der TRL4 exceed 5100 bill,—ma Programs ear(JanuaryI
through December 31) and an m hm rust in deducnble voile the proms that insure shall nmbe £table for the payment of
any pennon ofine amomr of svcb knses dun weeds 5100 bM m nub in such case msmed losses up w tbat sansmt ere mbjm to
pro ran allocation a accordance with procedtm a established by the Seaetarc of Treasury.
D. A%wdabsld'y
As required by TRLA. we fate made mmlable as }m fm lis subject in TRL4 cm erage for losses resulting- from ace ofteamizm
certifiedumde TRIA with norm: armmG and hmiar ca s tbar do rat des n aremilh• fromthnse nor lasses arising from events
other than ens ofteaorism
E DeSmbon of An of Terrorism underTRLA
TRLA defines "act of termsm" as am' an that is cevfiedby the Secretary ofthe Treasury. in concurrence with are Secretion, of
Sate and the Attorney General ofthe United Sates:
1. to be an an of atomism;
2. to be a%iolent act at an an that a daa<•emm w Im, life. proper -or inframoctme:
3. to fare multed in damage umbras the United Stares. or osuside ofthe United Sam in the case of an air carrier (as defired
m seetim 40102 of Tule 49. United Sam Code) m a United Sam &+g-tessel (or a %essel basedptindpa8y m the United
Sam, on wtdch United Sam mcome tax is paid and whose insurance coverage is subjen m regulation in the United
Sam). or the presses of United Sates ffisums: and
4. to hate been commtted by an ioditidml or radhiduals as part of an effort to coere the dalisn population ofthe United
Stam a to influeaze the policy or affect the coadw of the United Sates Gocernmemrby coeclon
No an may be certified as an "act of us orism" if the act is ca®tad as pat of the course of a war declared by Cmgtess (except
for workers' compensation) or if losses mulling from the an. or the aggregate for insurance subject w TR1A do not exceed
$5.000.000.
John T. Montfad Dan - Operational Ciel Works- Pmpwal 2015-2O184oan
Page 7 of 7
INTEP ILE ONLY
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: 8/25/2015 Prepared for City of Lubbock
Confidentia I. O 2015 Wells Fargo Insurance Services USA, Inc. All Rights Reserved.
Page 29