Explanation
Background: This ordinance authorizes the Director of Finance and Management to pay the cost of the second renewal term for the insurance brokerage and engineering services contract with Wells Fargo Insurance Services USA, Inc. In addition the ordinance binds coverage for all City 2017-2018 insurance programs and expends up to $395,000.00 from the Department of Finance and Management, 2017 Budget and up to $150,000.00 from the Department of Public Safety, 2017 General Fund Budget for payment of brokerage and policy premiums associated with the City’s insurance programs. This ordinance also authorizes the Director of Finance and Management to approve any necessary changes in the City’s insurance programs, such as additions of buildings, aircraft, vehicles, modify coverage limits, and additions to type or lines of coverage during the 2017-2018 insurance year.
The City entered into a contract with Wells Fargo Insurance Services USA, Inc. pursuant to SA 005700, for a five year period, consisting of an initial one-year term and four automatic consecutive one-year terms with each automatic renewal subject to appropriation of necessary funds as authorized by Ordinance No. 0885-2015, passed on 04/22/2015. The first of four (4) automatic one (1) year renewals was exercised pursuant to Ordinance No. 1539-2016. This ordinance seeks authority to exercise and pay the costs associated with the second of four (4) automatic one (1) year renewals.
The Contract Compliance Number for Wells Fargo Insurance Services USA, Inc. is 56-1882208.
Fiscal Impact: This ordinance authorizes the expenditure of up to $545,000.00 for policy premiums and brokerage fees associated with Wells Fargo Insurance Services USA, Inc. for insurance coverage necessary to protect the City’s assets. This expenditure does not reflect an increase and is slightly lower than the previous insurance year. The Department of Finance and Management budgeted $395,000.00 and the Department of Public S...
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