Explanation
Background: Pursuant to RFQ026631 and as authorized by Ordinance No. 0864-2024, the City entered into an Insurance Brokerage and Risk Engineering Services Contract with USI Insurance Services, LLC for an initial one-year term with four (4) additional automatic one-year renewal terms with each renewal term subject to the appropriation of funds by City Council and the certification of funds availability by the City Auditor.
The City’s current insurance term is set to expire July 31, 2026, authorized by Ordinance No. 1884-2025. The current term needs to be extended 92-days in order to accommodate the Columbus City Council recess schedule and to avoid an interruption in insurance coverage. This ordinance authorizes the Director of Development to extend of the current term set to expire July 31, 2026 an additional 92-days to expire October 31, 2026, and to amend the Contract for Insurance Brokerage and Risk Engineering Services and to appropriate funding.
This ordinance authorizes the expenditure of additional funds for the 92-day extension of the current term of the Insurance Brokerage and Engineering Services Contract with USI Insurance Services, LLC; the binding of coverage for all City insurance programs for the extension of the current term until October 31, 2026; (1) the expenditure of up to $151,104.00 from the Department of Development 2026 budget, $88,704.00 remaining from Ordinance 1884-2025 and an additional $62,400.00; the expenditure of up to $61,537.00 from the Department of Public Safety 2026 budget, $26,327.00 remaining from Ordinance 1884-2025 and an additional $35,210.00; the expenditure of up to $160,830.00 from the Department of Public Utilities 2026 budget, $104,290.00 remaining from Ordinance 1884-2025 and an additional $56,539.00; the expenditure of $12,000.00 from the Department of Public Service 2026 budget for payment of brokerage and policy premiums associated with the City’s 2025-2026 insurance programs. This ordinance also authorizes the Director of Development to approve any necessary changes in the City's insurance program, such as additions of buildings, aircrafts, vehicles, modification to coverage limits, and additions to type or lines of coverage during the remainder of the 2025-2026 policy term. (2) At the time the contract was initially awarded the City Council recess term was later in the year. The current insurance term is set to expire July 31, 2026, during the Columbus City Council recess, and would cause an interruption in insurance coverage. Extending the current insurance term 92-days will prevent an interruption in coverage and allow sufficient time for the insurance broker to gather bids for the renewal that will now begin November 1, 2026. (3) the Insurance Brokerage and Engineering Services Contract with USI Insurance Services, LLC is active. The current insurance term needs extended to accommodate the City Council recess schedule, avoid an interruption in insurance coverage and allow sufficient time for bidding the new term. (4) The extension is for the same rate as the current insurance term, prorated.
The Contract Compliance Number for USI Insurance Services is CC-028916.
Fiscal Impact: The additional funding for this contract and the cost of all insurance premiums associated with insurance coverage necessary to protect City assets is budgeted and the funds are available within the Department of Development 2026 Employee Benefits Fund ($62,400.00); the Department of Public Safety 2026 General Fund Budget ($35,210.00); the Department of Public Utilities Water Operating Fund ($43,966.00), Sewer Operating Fund ($11,571.00) and Power Operating Fund ($1,002.00); and the Department of Public Service Mobility Operating Fund ($12,000.00).
Emergency action is requested to allow for uninterrupted insurance brokerage services and the immediate binding of property, boiler and machinery, general and excess liability, and aviation insurance coverage for a 92-day extension of the insurance year 2025-2026 which is set to expire on July 31, 2026, to protect the City’s assets.
Title
To authorize the Director of Development to modify and extend the existing Insurance Brokerage and Engineering Services Contract with USI Insurance Services, LLC; to authorize the Director of Development to expend funds to bind the City's insurance program for the extension term commencing August 1, 2026 and terminating October 31, 2026; to authorize the additional expenditure of up to $166,149.00; and to declare an emergency. ($166,149.00)
Body
WHEREAS, pursuant to Ordinance No. 0864-2024, the City of Columbus entered into an Insurance Brokerage and Risk Engineering Services Contract with USI Insurance Services, LLC for a five-year period consisting of an initial one (1) year term and four (4) automatic consecutive one-year renewal terms each renewal subject to the appropriation of funds by City Council and the certification of funds availability by the City Auditor; and
WHEREAS, it is necessary to authorize the expenditure of funds for the extended term of the Insurance Brokerage and Engineering Services Contract with USI Insurance Services, LLC insurance brokerage and the expenditure of funds the cost of the City's selected insurance policies for the insurance extended year commencing August 1, 2026 and terminating October 31, 2026; and
WHEREAS, it may be necessary for the Director of Development to make any necessary changes in the City's insurance program to modify coverage limits, insure additional buildings, aircraft, vehicles, add types or lines of coverage that may result in additional premium costs during the remainder of 2025-2026 policy term and extension period; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Development in that it is immediately necessary to authorize the expenditure of funds for the insurance brokerage and risk engineering services contract for the City's insurance programs and for the actual underwriting cost of the City's selected insurance policies to ensure that insurance coverage to protect City assets continues without interruption which is set to expire July 31, 2026, all for the immediate preservation of the public health, peace, property, safety and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Development be and is hereby authorized to pay costs for a 92-day extension of the current term of a contract with USI Insurance Services extended until October 31, 2026 for provision of insurance brokerage and risk engineering services, to pay the cost of insurance premiums for property, boiler and machinery, general liability, excess liability, and aviation insurance policies to bind coverage for the extended term, to make any necessary changes in the City's insurance program required during the extended term, pay the associated costs of any additional insurance premiums incurred, and to amend the Insurance Brokerage and Risk Engineering Services Contract with USI Insurance Services, LLC to include the extension in term.
SECTION 2. That the expenditure of $62,400.00, or so much thereof that may be necessary in regard to the action authorized in Section 1, be and is hereby authorized and approved in Fund 5502 Employee Benefits Fund in Object Class 3, Contractual Services per the accounting codes in the attachment to this ordinance.
SECTION 3. That the expenditure of $35,210.00, or so much thereof that may be necessary in regard to the action authorized in Section 1 be and is hereby authorized and approved in Department of Public Safety Fund 1000 General Fund in Object Class 3, Contractual Services per the accounting codes in the attachment to this ordinance.
SECTION 4. That the expenditure of $11,571.00, or so much thereof that may be necessary in regard to the action authorized in Section 1 be and is hereby authorized and approved in Department of Public Utilities Sewer Operating Fund 6100 in Object Class 3, per the accounting codes in the attachment to this ordinance.
SECTION 5. That the expenditure of $43,966.00, or so much thereof that may be necessary in regard to the action authorized in Section 1 be and is hereby authorized and approved in Department of Public Utilities Water Operating Fund 6000 in Object Class 3, per the accounting codes in the attachment to this ordinance.
SECTION 6. That the expenditure of $1,002.00, or so much thereof that may be necessary in regard to the action authorized in Section 1 be and is hereby authorized and approved in Department of Public Utilities Power Operating Fund 6300 in Object Class 3, per the accounting codes in the attachment to this ordinance.
SECTION 7. That the expenditure of $12,000.00, or so much therefore that may be necessary in regard to the action authorized in Section 1 be and is hereby authorized and approved in Department of Public Services Mobility Operating Fund 6500 in Object Class 3, per the accounting codes in the attachment to this ordinance.
SECTION 8. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 9. That the expenditures as authorized in Section 1 shall be paid upon order of the Director of Development and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 10. 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. That 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 11. That for the 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.