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.
This ordinance authorizes the expenditure of funds for the initial 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 term November 1, 2026 through October 31, 2027; the expenditure of up to $617,600.00 from the Department of Development 2026 Employee Benefits Fund budget; the expenditure of an amount up to $62,400.00 from the Department of Development General Fund budget; the expenditure of up to $258,000.00 from the Department of Public Safety 2026 budget, the expenditure of up to $641,520.00 from Columbus Water & Power 2026 budget, the expenditure of $57,000.00 from the Department of Public Service 2026 budget for payment of brokerage and policy premiums associated with the City’s 2026-2027 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, modify coverage limits, and additions to type or lines of coverage during the 2026-2027 policy term.
The Contract Compliance Number for USI Insurance Services is CC-028916.
Fiscal Impact: The 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 ($617,600.00) and the Department of Development General Fund ($62,400.00); the Department of Public Safety 2026 General Fund Budget ($258,000.00); Columbus Water & Power Water Operating Fund ($281,800.00), Sewer Operating Fund ($351,800.00) and Power Operating Fund ($7,920.00); and the Department of Public Service Mobility Operating Fund ($57,000.00).
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 the insurance year 2026-2027 to protect the City’s assets.
Title
To authorize the Director of Development to expend funds to bind the City's insurance program for the term commencing November 1, 2026 and terminating October 31, 2027; to authorize the transfer in appropriation between object classes within the Department of Development General Fund budget; to authorize the expenditure in an amount up to $1,636,520.00; and to declare an emergency. ($1,636,520.00)
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, pursuant to Ordinance No. 1003-2026, the City of Columbus entered into a First Amendment to the Contract for Insurance Brokerage and Risk Engineering Services, that established, beginning in 2026, the policy term will be November 1st through the following October 31; and
WHEREAS, it is necessary to authorize the expenditure of funds for the second renewal 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 year commencing October 1, 2026 and terminating August 31, 2027; 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 2026-2027 policy term; and
WHEREAS, it is necessary to authorize the transfer in appropriation between object classes within the Department of Development General Fund in an amount up to $37,368.00; 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 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 Director of Development be and is hereby authorized and directed to pay costs for the second renewal term of a contract with USI Insurance Services commencing November 1, 2026 and terminating October 31, 2027 for provision of insurance brokerage and risk engineering services, to pay the cost of insurance premiums for property (casualty), boiler and machinery, general liability, excess liability, and aviation insurance policies to bind coverage for the 2026-2027 insurance year, to make any necessary changes in the City's insurance program required during the 2026-2027 term and to pay the associated costs of any additional insurance premiums incurred.
SECTION 2. That the expenditure of $617,600.00, 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 $258,000.00, 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 $351,800.00, 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 Columbus Water & Power Sewer Operating Fund 6100 in Object Class 3, per the accounting codes in the attachment to this ordinance.
SECTION 5. That the expenditure of $281,800.00, 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 Columbus Water & Power Water Operating Fund 6000 in Object Class 3, per the accounting codes in the attachment to this ordinance.
SECTION 6. That the expenditure of $7,920.00, 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 Columbus Water & Power Power Operating Fund 6300 in Object Class 3, per the accounting codes in the attachment to this ordinance.
SECTION 7. That the expenditure of $57,000.00, 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 transfer in appropriation in an amount up to $37,368.00 is authorized between object classes within the Department of Developments General Fund Budget and the expenditure in an amount up to $62,400.00 or so much thereof that may be necessary in regard to the authorized action in Section 1 be and is hereby authorized and approved per the accounting codes in the attachment to this ordinance.
SECTION 9. 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 10. 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 11. 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 12. 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.