Explanation
BACKGROUND:
Need: The Division of Police needs to purchase hull Insurance (property damage and liability insurance) for its six MD 500E helicopters. Since the cost of the new helicopters is approximately 1 million each, it is critical that insurance be purchased to protect the City's investment.
Bid Information: Since there is not enough time to obtain formal bids to acquire helicopter insurance, the Purchasing Office solicited informal bids, SO020065, for the Division of Police. AON Risk Services submitted two bids. Bid#1 was for $194,016.00 in which no profit commission was offered. Bid #2 was for $199,848.00 with a profit commission of $20,062.00 providing there have been no losses at expiration date on March 8, 2005. Since the provision for cost commission was offered on Bid #2, a contract should be awarded to AON Risk Services, Inc., underwriter for Phoenix Aviation Insurance.
Contract Compliance No: 52-0970288
Emergency Designation: Emergency legislation is requested so insurance can be put into effect as soon as possible. Current insurance expires March 8, 2005.
FISCAL IMPACT: $184,000.00 is budgeted in the Police's General Fund budget for helicopter insurance. With the renewable discount, no claims bonus, there should be a surplus in this object.
Title
To authorize and direct the Safety Director to enter into contract for the purchase of hull and liability insurance for the Division of Police's helicopters, to authorize the expenditure of $199,848.00 from the General Fund, to waive the provisions of Columbus City Codes Chapter 329; and to declare an emergency. ($199,848.00)
Body
WHEREAS, the Division of Police needs to purchase hull and liability insurance for its helicopters; and
WHEREAS, informal bids for the purchase of helicopter insurance was opened by the Purchasing Office on February 3, 2005; and
WHEREAS, AON Risk Services, insurance broker, was the most responsive and responsible bidder received per specification; and
WHEREAS, it is necessary to waive the provisions of section 329 of the Columbus City Codes, 1959; and
WHEREAS, an emergency exists in the usual daily operations of the Division of Police in that it is immediately necessary to enter into contract for the purchase of insurance for six helicopters thereby preserving 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 Safety Director be and is hereby authorized and directed to enter into contract with AON Risk Services for the purchase of hull and liability insurance for the Division of Police's helicopters.
Section 2. That the expenditure of $199,848.00 or so much thereof as may be needed; be and the same is hereby authorized as follows:
Div. SUB-FD Obj. Level One Obj. Level Three OCA Code
30-03 010 03 3392 300707
Section 3. That the provisions of Section 329 of the Columbus City Codes, 1959, are hereby waived.
Section 4. That for the reasons stated in the preamble hereto, which is hereby made a part thereof, 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.