Agenda - View Meetings (All) (4994863789)

7.14.

Regular City Council Meeting

Meeting Date:

09/14/2021

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, boiler and machinery insurance coverage from Liberty Mutual Fire Insurance Company, for which the premium amount shall not exceed a rate of $0.0039 per $100 equipment valuation.

Item Summary

Boiler and machinery insurance provides coverage for the mechanical failure and damage of generating equipment, boilers, heating, ventilating, and air conditioning equipment, pumps, and other mechanical equipment, excluding wear and tear. Rates are determined on the total insured value of City properties, appraised at $904,800,866. The quote has a premium of $34,996.78 and includes loss prevention services for mandatory state inspections for boilers and infrared thermographic testing for electrical boxes in City-owned facilities. Approving this insurance coverage on a rate basis allows the City Manager the ability to add and remove equipment, as necessary, to maintain an accurate equipment valuation. This policy excludes Lubbock Power & Light as they are insured by a different carrier.

The City's current boiler and machinery insurance coverage is provided by Continental Casualty Company. The current premium is $26,920.60.

Staff recommends purchase for boiler and machinery coverage from Liberty Mutual Fire Insurance Company, the only company to provide a quote. This policy is subject to a deductible of $25,000 per occurrence and $100,000,000 in annual aggregate limit.

Carriers bind insurance coverage October 1, 2021, 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. Current insurance policies are available in Risk Management.

Fiscal Impact

Funds are budgeted in the Proposed FY 2021-22 Risk Management Fund.

Staff/Board Recommending

D. Blu Kostelich, Chief Financial Officer

Attachments

COL B&M Resolution

COL B&M