Explanation
BACKGROUND: This ordinance authorizes the City Auditor to enter into contract with Huntington Insurance for four policies bonding City of Columbus employees, elected and appointed officials, judges, municipal court employees, and appointed commission and board members. The Auditor’s Office advertised and solicited proposals in accordance with the relevant provisions of Columbus City Code 329, posting Request for Quotation No. RFQ023204 on the Vendor Services portal for 23 days. One proposal was received from Huntington Insurance. An evaluation committee consisting of three members from the Auditor’s Office and Treasurer’s Office met on November 15, 2022 to finalize scoring and evaluate the proposal. The committee recommended that the City Auditor negotiate with Huntington Insurance. This legislation will authorize the City Auditor to enter into contracts bonding the following employees: 1.) City Treasurer, 2.) Deputy City Treasurer, 3.) Police up through the rank of sergeant, and 4.) All other City employees and elected or appointed officials including all officially appointed members of City Boards and/or Commissions. The final listed policy includes additional coverage for the following: forgery or alteration, money and securities on and off premises, money orders and counterfeit money, computer fraud, and social engineering / fraudulently induced transfers. The contract resulting from the RFP shall have an initial coverage period of January 1, 2023 through December 31, 2025. Subject to mutual agreement, available funding, and approval by the proper City authorities, this agreement may be extended for up to six (6) additional one (1) year terms, or any portion thereof.
EMERGENCY DESIGNATION: Emergency action is requested to avoid delays in finalizing the contracts to ensure new policies and avoid a lapse in coverage prior to expiration of the existing policies.
CONTRACT COMPLIANCE: Huntington Insurance, contract compliance number CC-006810, expiration date 07/22/2024.
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
FISCAL IMPACT: Currently $145,369.00 of appropriation authority is available within the General Fund in the Auditor’s Office.
Title
To authorize the City Auditor to enter into contract with Huntington Insurance 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 $145,369.00 from the General Fund; and to declare an emergency. ($145,369.00)
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, a formal request for proposal (RFP) for employee bonding services was solicited by the Auditor’s Office via a Request for Quotation No. RFQ02320, resulting in one proposal received; and
WHEREAS, a committee consisting of members of the Auditor's Office and the Treasurer's Office evaluated the proposal and Huntington Insurance was recommended; and
WHEREAS, the initial term of the resulting contract shall be for the period of January 1, 2023 through December 31, 2025 with six (6) one-year optional renewals subject to mutual agreement, available funding, and approval by the proper City authorities; and
WHEREAS, an emergency exists in the usual daily operation of the Auditor’s Office in that it is immediately necessary to enter into contract with Huntington Insurance for employee bonding coverage, to ensure new policies are in place prior to the expiration of the current policies therefore avoiding a lapse in coverage, for the 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 if hereby authorized to enter into contract with Huntington Insurance for the following bonds, for initial coverage period of 1/1/2023 - 12/31/2025. The contract includes six (6) one year optional renewals subject to mutual agreement, available funding, and approval by the proper City authorities.
Position Bonded Coverage Premium
1. Treasurer $10,000,000.00 $19,573.00
2. Deputy Treasurer 10,000,000.00 $19,573.00
3. Police up through the rank of sergeant 100,000.00 $17,267.00
4. All other City employees, judges, municipal 1,000,000.00 $88,956.00
court employees, and elected or appointed official including all officially appointed members
of various City Boards and/or Commissions
Additional coverage included with policy no. 4: Forgery or Alteration, Money and Securities (On
Premises and Off Premises), Money Orders and Counterfeit Money, and Computer Fraud Social
Engineering /Fraudulently Induced Transfers
Total $145,369.00
SECTION 2. That the sum of $145,369.00 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 3. The sureties accepted on aforesaid bonds must be authorized to do business in Ohio.
SECTION 4. The City Auditor shall and is hereby directed to charge and make appropriate accounting charges to each department or division which operates from a fund other than the General Fund, for the official bond premium properly chargeable to their operation.
SECTION 5. That for the reasons stated 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.