Explanation
BACKGROUND: The Department of Human Resources, Employee Benefits/Risk Management section conducted a Request for Proposal (RFP) to obtain property insurance and loss control engineering services for select City properties. The City received two proposals: Acordia and Arthur J. Gallagher & Company.
As a result of a Request For Proposal process in accordance with Section 329.12 of the Columbus City Codes, two bid responses were reviewed by the City's Evaluation Committee, comprised of three members. Each proposal was evaluated on the following criteria: competency to perform, quality and feasibility of the offerors technical proposal, ability to perform the required service competently, past performance, and the cost structure of the proposal. As a result of a request for proposal (RFP) process, Arthur J. Gallagher & Company is the recommended service company. Arthur J. Gallagher & Co.'s comprehensive proposal included three options for insurance coverage. In addition, they are agreeable to the standard escalator clause and an engineering services fee of $10,000 per year. Its' proposed insurance carrier, St Paul Travelers Insurance Co., will provide blanket building coverage, consistent with the City's current coverage. The insurance coverage is effective August 1, 2005 for a period of one year, with an annual renewal option through an escalator clause. An annual $100,000 deductible applies.
Arthur J. Gallagher & Company $216,967.00
Contract Compliance No. 34-1282846
This ordinance is submitted to authorize and direct the Human Resources Director to enter in to contract for the city property insurance and loss control engineering services for the City of Columbus with Arthur J. Gallagher & Company, and to authorize the expenditure of $216,967.00 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 $216,967.00.
Title
To authorize the Director of the Department of Human Resources to enter into contract with Arthur J. Gallagher & Co., to provide property insurance on selected city properties on an annual basis; to authorize and direct the expenditures of $216,967.00, and to declare an emergency.
($216,967.00)
Body
WHEREAS, it is in the best interest of the City of Columbus to enter into contract for property insurance and loss control engineering services for City properties from August 1, 2005 through July 31, 2006; and
WHEREAS, it is necessary to authorize the expenditure of $216,967.00 to pay contract costs for property insurance and loss control engineering services;
WHEREAS, an emergency exists in the usual daily operations of the Department of Human Resources in that it is immediately necessary to enter into this contract to ensure provision of important services on behalf of all City agencies and is maintained uninterrupted; 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 enter into contract with Arthur J Gallagher & Company to provide property insurance and loss control engineering services for the City properties.
SECTION 2. That the expenditure of $216,967.00 from Fund No. 502, Department of Human Resources, Division No. 46-02, 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.