Explanation
BACKGROUND
This legislation authorizes the City Auditor to modify and extend the existing contract with Huntington Insurance, Inc. for four insurance policies bonding City of Columbus employees, elected and appointed officials, judges, municipal court employees and appointed commission and board members and authorizes the expenditure of up to $158,511.00 from the General Fund in the Auditor’s Office. This legislation also authorizes the transfer and administration of the contract to the Department of Finance and Management upon completion of the modification by the Auditor’s Office.
The contract includes four employee bonding insurance policies: 1) $10,000,000.00 coverage for the City Treasurer, 2) $10,000,000.00 coverage for the City Deputy Treasurer, 3) $100,000.00 coverage for Columbus Police up through the rank of sergeant, and 4) $1,000,000.00 coverage for all other city employees, judges, municipal court employees, and elected or appointed officials including all officially appointed members of City Boards and/or Commissions.
The current contract for these services was authorized by Ordinance 3220-2022 and was passed on December 5, 2022. In accordance with the relevant provisions of Columbus City Code 329, the contract and authorizing ordinance were established after a request for proposal (City issued solicitation no. RFQ023204) and included extension options and pricing for an additional six (6) years beyond the initial term of January 1, 2022, through December 31, 2025. This ordinance shall fund the period of January 1, 2026, through December 31, 2028. These policies are in accordance with Columbus City Charter Section 16, and the relevant provisions of Ohio Revised Code, including Section 3.061.
After consultation with representatives from the City Attorney’s Office, City Council, Department of Finance and Management, Department of Human Resources, and the City Auditor’s Office, it was determined that the Department of Finance and Management is the appropriate department to hold the contract and oversee citywide administration of the policies, in collaboration with the Department of Human Resources. The Director of the Department of Finance and Management is in agreement with the transition. The Auditor’s Office shall fund and execute the contract modification before transferring the policies to the Department of Finance and Management, ensuring continuity of coverage through December 31, 2028.
FISCAL IMPACT
Funding of up to $158,511.00 for this planned contract extension was included in the Auditor’s Office 2025 General Fund operating budget.
CONTRACT COMPLIANCE
Huntington Insurance’s contract compliance number is CC-006810 and is valid through October 22, 2027. The company is not debarred according to the Excluded Party Listing System of the Federal Government and has an active registration with the Ohio Secretary of State.
EMERGENCY DESIGNATION
Emergency action is requested to avoid delays in modifying and extending the contracts, thus avoiding a lapse in the policies and ensuring continuity of coverage and protection for the city.
Title
To authorize the City Auditor to modify and extend the current contract with Huntington Insurance, Inc. for a total of four policies bonding various City employees, elected and appointed officials, and members of City boards and/or commissions; to authorize the expenditure of up to $158,511.00 from the General Fund; to authorize, after execution and issuance of a purchase order, the transfer and management of this contract to the Department of Finance and Management; and to declare an emergency. ($158,511.00)
Body
WHEREAS, Section 16 of the Columbus City Charter provides, in part, that “the Council may determine whether any officer or employee shall give a bond, and the amount there of”; and
WHEREAS, the current contract with Huntington Insurance, Inc. for four employee bonding policies was authorized by Ordinance 3220-2022, passed on December 5, 2022 and included extension options and pricing for an additional six (6) years beyond the initial term through December 31, 2025, subject to available appropriation and approval by City Council; and
WHEREAS, it is now necessary to authorize the City Auditor to provide funding for a planned extension of the four policies for an additional three years at an amount up to $158,511.00; and
WHEREAS, consultation with representatives of City Council, the City Attorney’s Office, the Departments of Finance and Management and Human Resources determined that the Department of Finance and Management is the appropriate department to manage and administer the contract, and the Director of Finance and Management supports this transition after execution and funding of the contract extension by the Auditor’s Office; and
WHEREAS, an emergency exists in the usual daily operation of the Auditor’s Office in that it is immediately necessary to modify and extend the employee bonding contract with Huntington Insurance, Inc. to avoid delays, thus avoiding a lapse in the policies and ensuring continuity of coverage for the protection of the City’s assets as the current agreement expires December 31, 2025, all for the immediate preservation of the public health, peace, property, safety and welfare, now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1: That the City Auditor be and is hereby authorized to modify and extend its existing contract with Huntington Insurance, Inc. for the coverage period of January 1, 2026 through December 31, 2028 for four employee bonding policies, in an amount up to $158,511.00 as follows:
Position Bonded - Coverage - Premium
1. Treasurer - $10,000,000.00 - $23,487.00
2. Deputy Treasurer - 10,000,000.00 - $23,487.00
3. Police up through the rank of sergeant - $100,000.00 - $18,132.00
4. All other City employees, judges, municipal court employees, and elected or appointed officials including all officially appointed members of City Boards and/or Commissions - $1,000,000.00 - $93,405.00
SECTION 2: The sureties accepted on aforesaid bonds must be authorized to do business in the State of Ohio.
SECTION 3: That the sum of $158,511.00 or so much thereof as may be needed, is hereby authorized to be expended per the accounting codes in the attachment to this ordinance.
SECTION 4: That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5: That upon execution of the contract extension and issuance of the purchase order, the City Auditor is authorized to transfer the contract, policies, and management to the Director of the Department of Finance and Management.
SECTION 6: That the Director of the Department of Finance and Management is authorized to hold and manage the contract, all employee bonding policies, and enter into future contract extensions and modifications subject to available funding and approval by City Council.
SECTION 7: That for the reasons states in the preamble hereto, which is hereby made a party hereof, this ordinance is hereby 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.