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AI# 11021
Regular City Council Meeting
5.3.
09/27/2022:
Information
Agenda Item
Resolution - Risk Management:
Consider a resolution authorizing 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 $0.0035 per $100 equipment valuation.
Item Summary
Boiler and machinery insurance provides coverage for the mechanical failure and damage of generating equipment, boilers, heating, ventilating, 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 $989,932,789. The quote of $52,463 is for an 18-month policy period 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 $34,996.78.
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, 2022, 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 FY 2022-23 Risk Management Fund.
Staff/Board Recommending
D. Blu Kostelich, Chief Financial Officer
Attachments
COL B&M Resolution
COL B&M
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