Item Coversheet

CITY OF HOUSTON - CITY COUNCIL

Meeting Date: 6/21/2016
ALL
Item Creation Date: 6/1/2016

ARA- HITS Radio Equipment and Tower Insurance Policy

Agenda Item#: 24.


 
                               
Summary:

ORDINANCE accepting the proposal from TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL; approving and authorizing purchase of Radio Equipment and Tower Insurance

Background:
The Administration & Regulatory Affairs Department recommends that Council accept the Radio Equipment and Tower Insurance policy proposed by Texas Municipal League Intergovernmental Risk Pool (TML).
 
This insurance covers the City-wide public safety radio communication system used by the Police Department, Fire Department, Public Works & Engineering and other City departments. The system consists of radio and network equipment installed at approximately fifty-three locations (self-contained prefabricated buildings or existing buildings) across the City and surrounding areas. The total value of the equipment, towers and prefabricated buildings is $81,245,010.
 
A Request for Proposals for Radio Equipment and Tower Insurance was issued and advertised on April 15, 2016 and April 22, 2016 for a one-year policy effective July 1, 2016. Additionally, McGriff, Seibels & Williams (McGriff) solicited proposals from forty-nine insurance carriers and TML; TML submitted a proposal for $254,093. A proposal for a premium of $487,691 in a layered program structure was proposed by the following participating carriers: Lexington, Arch Specialty, Colony Specialty, Scottsdale and One Beacon. The TML proposal meets or exceeds minimum proposal specifications.
 
The terms of the proposed policy are:

 

Term: July 1, 2016 to July 1, 2017
Insurance Carrier:Texas Municipal League Intergovernmental Risk Pool
Total Premium Cost: $254,093.00 (Payment due immediately upon receipt of invoice.)
Insured Limit: $81,245,010 (Replacement Cost Basis)
Type of Coverage: All Risk Coverage (including Flood, Windstorm/Hail and Earthquake for communication equipment, towers and self-contained prefabricated buildings used to house the equipment).
Deductibles: $50,000 per occurrence for all perils, except:

 

a) $100,000 per occurrence for flood and earthquake.
b) Named storm flood is 1% of scheduled values and will apply separately to building and contents values.
c) Named storm tidal flooding (storm surge) is 2% of scheduled values and will apply separately to building and contents values.

 

 

Departmental Approval Authority:

 

 

 

  

__________________________­­­­­­­­­___________ __________________________________________

Tina Paez, Director                                       Other Authorization

Administration & Regulatory 

Affairs Department

 

Prior Council Action:
Ordinance 2015-595
Amount of Funding:

$254,093.00  Policy Premium (FY 2017)

 

Property / Casualty Fund: 1004

Contact Information:

Lara Cottingham                  Phone:  (832) 393-8503

Tina Paquet                         Phone:  (832) 393-8792

ATTACHMENTS:
DescriptionType
6.2.2016 ARA-HITS Radio Equipment and Tower Insurance RCASigned Cover sheet
6.2.2016 HITS Radio Equipment and Tower Insurance MWBEGoalModForm-ApprovalBackup Material