Explanation
Background: The Department of Human Resources, Employee Benefits/Risk Management, entered into contract with Arthur J. Gallagher, to provide property insurance on selected city properties on an annual basis. Contract became effective August 1, 2003 for a period of one year, with an annual renewal option through an escalator clause. An annual $100,000 deductible applies. Arthur J Gallagher has issued the City of Columbus a ninety (90) day binder with an expiration date of November 1, 2004. Current City insured properties have recently been audited for present day values by the Asset Management Division of the Department of Development. As a result of the audit, a new list was generated on August 30, 2004. The list is subject to change throughout with contract with adjustments made to the contract at that time. This current list will be analyzed by Arthur J. Gallagher and will possibly result in a financial refund in the upcoming months of 2004. Incomplete information has been provided on select properties due to further analysis needed. To avoid a lapse in coverage, analysis will be performed concurrently with this legislation.
This ordinance is submitted to authorize and direct the Human Resources Director to extend the contract for the renewal of Property Insurance and Engineering Services for the City of Columbus with Arthur J. Gallagher, to waive the provisions of competitive bidding, to authorize the expenditure of $268,000.00 to be paid out of the Employee Benefits fund in the Human Resources Department.
This ordinance is submitted as an emergency so as to allow financial transaction to be posted in the City's accounting system as soon as possible. Up to date financial posting promotes accurate accounting and financial management.
Fiscal Impact: Funds were budgeted in the Employee Benefit's fund in the Human Resources Department's account for such reasons. Passage of this ordinance will reduce the Employee Benefit's fund balance by $268,000.
Title
To authorize the Director of the Department of Human Resources to extend the contract with Arthur J. Gallagher, to provide property insurance on selected city properties on an annual basis; to authorize and direct the expenditures of $268,000.00, or so much thereof as may be necessary; and to declare an emergency. ($268,000)
Body
WHEREAS, the City Of Columbus needs to extend the contract to renew Property Insurance and Engineering Services for its properties; and
WHEREAS, the original contract allowed for an extension with Arthur J. Gallagher; and
WHEREAS, it is in the best interest of the City to waive the provisions of Section 329.06 of the City Code, 1959; and
WHEREAS, an extension shall be given to Arthur J. Gallagher for the renewal of property insurance and engineering services; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Human Resources in that it is immediately necessary to extend the contract for the renewal of insurance for property insurance 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 Human Resources Director be and is hereby authorized and directed to grant an extension of the contract with Arthur J Gallagher for the renewal of property insurance and engineering services for the City properties for a one year period, expiring on August 1, 2005.
SECTION 2. That the expenditure of $268,000. from Fund No. 502, Department of Human Resources, Division No. 46-01, Object Level One 3, Object Level Three 3336, OCA 450882 is hereby authorized and directed.
SECTION 3. 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.