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AI# 11408
Regular City Council Meeting
6.9.
03/07/2023:
Information
Agenda Item
Resolution - Risk Management:
Consider a resolution authorizing and directing the City Manager to purchase, for and on behalf of the City of Lubbock, property insurance from Zurich American Insurance Company in the amount of $50,000,000 coverage limit for Montford Dam, for which the premium amount shall not exceed $198,834.
Item Summary
It is recommended that the City maintain a property insurance policy covering exposures to loss at the Montford Dam at Lake Alan Henry. The City has maintained a policy since taking over the dam, reservoir ownership, and operations in 2005 from the Brazos River Authority (BRA).
The City's current coverage for the dam is limited to $50,000,000 with a deductible of $2,000,000, at a premium of $166,488 per year. This policy includes coverage for acts of terrorism except for domestic terrorism.
Zurich American Insurance Company was the only company to provide a quote. The quote has a premium of $198,834; reflecting a 19.43% increase in premium, based on current valuation of the dam.
Staff recommends purchase of an insurance policy for property insurance, for the John T. Montford Dam quoted by Zurich American Insurance Company.
Carriers bind insurance coverage April 1, 2023, after notification of City Council approval. Insurance policies are issued after premiums are received from the City. The policy for the insurance coverage is approved by the Texas Department of Insurance as to content, and may not be modified. Current insurance policies are available in Risk Management.
Fiscal Impact
Funds are included in the FY 2022-23 Risk Management Fund.
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Attachments
Montford Dam Resolution
Montford Dam
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