Explanation
This legislation authorizes the Finance and Management Director to modify the existing insurance brokerage and risk engineering contract with Arthur J. Gallagher Risk Management Services, Inc. to allow for the payment of additional insurance premium for coverage of a new helicopter acquired by the Columbus Division of Police, and for additional coverage for casualty and boiler insurance for coverage added for new locations and equipment. The existing contract and payment of insurance premiums was authorized by Ordinance #0943-2009, passed by City Council on 07/08/2009, AC030045, with a contract term commencing on August 1, 2009 and terminating on July 31, 2010. This ordinance authorizes the additional expenditure of $5,665 to be paid out of the Department of Finance and Management Employee Benefit Fund and $18,335 to be paid out of the Law Enforcement Seizure Fund for premiums for additional aviation, casualty and boiler insurance coverage.
This legislation also authorizes the Finance and Management Director to modify the existing contract to allow for the payment of any additional insurance premiums caused by the addition of coverage during the above mentioned term of the contract, and to expend up to $5,000 for insurance premiums resulting due to additions to the casualty or boiler insurance coverage for select properties during the 2009-2010 policy term.
The Contract Compliance Number for Arthur J. Gallagher Risk Management Services, Inc. is 36-2102482 which expires 02/04/2010.
Emergency action is requested to allow the payment of the aviation insurance premium invoice that is currently due. The City took delivery of its newest helicopter in September, the insurance invoice was recently received - this payment is now due.
Fiscal Impact: The funding for this contract modification is budgeted and funds are available within the Department of Finance and Management Employee Benefit Fund, consistent with the Third Quarter Financial Review, and the Law Enforcement Seizure Fund. This modification is for $24,000.00, thereby increasing the total contract to $386,505.00.
Title
To authorize the Finance and Management Director to modify the existing insurance brokerage and risk engineering services contract with Arthur J. Gallagher Risk Management Services, Inc. to allow payment to underwriters of additional insurance premiums for the coverage of a new helicopter property coverage due and coverage for additional buildings and equipment added during the contract term; to authorize the expenditure of $24,000.00 from the Employee Benefit Fund and Law Enforcement Seizure Fund; and to declare an emergency. ($24,000.00)
Body
WHEREAS, the Finance and Management Director entered into an insurance brokerage and risk engineering contract with Arthur J. Gallagher Risk Management Services, Inc. originally authorized by Columbus City Council on July 8, 2009 by Ordinance 0943-2009 for a contract term from August 1, 2009 to July 31, 2010; and
WHEREAS, the CPD acquired a new helicopter in September, 2009 that must be insured under the City's aviation insurance policy; and
WHEREAS, the City needs to add property casualty and boiler insurance coverage for additional select properties during the term of the insurance brokerage and risk engineering services contract; and
WHEREAS, the Finance and Management Director wishes to modify the existing contract with Arthur J. Gallagher Risk Management Services, Inc. to allow for the payment of premiums to underwriters for insuring a new helicopter and property and boiler coverage added during the term of the contract; and
WHEREAS, it is necessary to authorize the expenditure of $24,000.00; and
WHEREAS, an emergency exists in the usual daily operation of the Finance and Management Department, Facilities Management Division, in that it is immediately necessary to authorize the Finance and Management Director to modify and increase a contract with Arthur J. Gallagher Risk Management Services, Inc. for the payment of premiums to underwriters for insuring a new helicopter and property and boiler coverage added during the term of the contract so that required insurance coverage is not delayed, thereby preserving the public health, property, safety, and welfare; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director be and is hereby authorized to modify the existing contract with Arthur J. Gallagher Risk Management Services, Inc. to allow for the payment to underwriters of aviation, property, and boiler insurance premiums for coverage of a new helicopter, and property and boiler coverage added during the term of the contract.
SECTION 2. That the expenditure of $24,000.00 or so much thereof as may be necessary in regard to the action authorized in Section 1, be and is hereby authorized and approved as follows:
Department/Division: 45-51
Fund: 502
OCA Code: 450052
Object Level 1: 03
Object Level 3: 3392
Amount: $5,665.00
Department/Division: 30-03
Fund: 219
Subfund: 016
OCA Code: 300988
Object Level 1: 03
Object Level 3: 3392
Amount: $18,335.00
SECTION 3. That the City Auditor is authorized to make any accounting changes necessary to ensure that this contract is properly accounted for and recorded accurately on the City's financial record. The City Auditor is authorized to make any changes to revise the funding source for any contract or contract modification associated with this ordinance.
SECTION 4. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.