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			7.18.
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, property insurance from Zurich American Insurance Company for the John T. Montford Dam, for a total premium in an amount not to exceed $163,072.
Item Summary
It is recommended that the City maintain a property insurance policy covering exposures to loss at the John T. Montford Dam at Lake Alan Henry. The City has maintained a policy since taking over the dam and 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, with a premium of $141,749 per year. This policy includes coverage for acts of terrorism, with the exception of domestic terrorism.   Zurich American Insurance Company was the only company to provide a quote.  The quote for $50,000,000 in coverage has a premium of $163,072, reflecting a 15.042% increase in premium based on the current valuation of the dam.   Staff recommends the purchase of property insurance for the John T. Montford Dam, as quoted by Zurich American Insurance Company. 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 Montford Dam Resolution Montford Dam

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